Free Dunkin Brands Group Inc. Term Paper Example

Current Strategy

The company is exercising the strategy of same-store sales. The company believes that the strategy is working efficiently in increasing its revenues. The segments of the company are Dunkin’ Donuts International, Dunkin’ Donuts International, Baskin-Robbins US and Baskin-Robbins International. It is observed by the company that it is able to generate more revenues for the company (locationgroup research, 2014).
The company is exercising the strategy for its customers to get its products from same store. The company is efficiently utilizing its assets to generate high revenues for the company. The company has franchises that are spread all over the world. These tangible assets are fully utilized by the company to apply the strategy for the availability of different products in one store (Hitt, Ireland, & Hoskisson, 2014).
The company is attracting customers to enjoy all products when they visit its franchises. Jack Clare is exercising the strategy of same-store to allow existing customers to buy other products as well from their available store. He has applied the strategy by collecting information from the global market regarding the products of the company. Customer feedbacks are observed by the company to make strategy to satisfy the customer along with the increasing profits. The company properly analyzes external factors before making the strategy (locationgroup research, 2014).

Long Term Objectives

The company long-term strategy is to increase their business all over the world. The company believes in the expansion of their business in the global market. The company is planning to increase its franchises in different countries of the world. The company is confident that it would be able to generate high revenues from its franchises. The company would be able to achieve core competencies goal and its external environment is allowing them to beat the competition prevailing in the international market (Hitt, Ireland, & Hoskisson, 2014).
It is noticed by the company that the demand for Baskin-Robbins products is increasing in the United States. The company is planning to open new franchises in the US to take advantage of increasing demand in the country. Dunkin’ Brands Group Inc. believes that it is capable of expanding its business by using tangible assets efficiently. The company utilizes its resources efficiently to increase its revenues from all segments (Hitt, Ireland, & Hoskisson, 2014).
The goal of the company is to increase their revenues by applying long-term strategies. The company is planning to open new franchises in different cities by analyzing the demand of for its products in those cities. The company has competitive advantage in its markets and by expanding its operations it would be able to cater larger market segments (locationgroup research, 2014).
In addition, the company wants to practice a degree of change in the future. The company currently has small product line because of the availability of few products. The company is looking forward to introduce new products to enter the dynamic environment. These products will be available at all franchises, which will enhance the revenue generation capacity for the company (Griffin & Griffin, 2012).
As the degree of homogeneity is concerned, the company has simple and stable environment. The customers, suppliers and competitors of the company are stable. The company needs large operators to achieve the goal of expansion. If the company wants to enter in the global market with the goal to expand the business, then it has to face foreign competitors that are present in the market. It is observed that the company will face low level of uncertainty in the industry as the environment of the company is simple and stable. The company has to look forward to the external environment of global market to make effective strategies (Griffin & Griffin, 2012).

Organization Chart

It could be noticed from the above chart that the decision-making power is available to the company’s CEO. Other employees of the organization follow all strategies made by the CEO. CIO and different departments of finance and marketing of the company adopt the strategies. The head of all departments implement these strategies are implemented by managing and directing their subordinates (Griffin & Griffin, 2012).
The design chart is good enough for the company to implement its long-term strategies. The strategy to increase franchises and introduce new products will be supported effectively by the organization structure mentioned in the chart. There is a need to implement strategies to the head of marketing and HR department as these departments work for increasing the customers to the organization (Orr, 2013).
The CEO of the company will give assurance to others regarding the implementation of the strategies that will help to achieve corporate objectives. These departments have to follow the strategy set by the top-level leaders. The post of Chief Executive Officer (CEO) is to make decision to increase credibility and profits of the company. Others follow their strategies so that overall organization looks like working on common goal to achieve (Kowitt, 2010).

Effectiveness of Leadership

The leadership of the company comprises of following three members that are the key players for the company.
John L. Luther (Chairman)
Nigel Travis (CEO)
Neil Moses (CFO)
The chairman of the company was appointed in 2002. He is capable of decision making and making strategies for the company. He was the CEO of the company prior to this job. He worked for the betterment of the organization and made it possible to enter global markets (Kowitt, 2010).
Neil Moses is the Chief Financial officer of the company. He was appointed for the post in April 2014. The responsibility of CFO is to oversee domestic operations as well as international operations of the company. The contribution of CFO will be helpful in making long-term strategies for the company as its objective is to expand their business in the US and international market (locationgroup research, 2014).
Three top leaders of the company are experienced. They have leadership qualities and expertise that are gained by them from their past experiences. They are known as key players of the company as their skills and capabilities have increased the performance of the business. Their skills and abilities could not be denied because they had proved themselves to be main performer for the organization. They are well aware of the global market strategies and their implementation in the organization (locationgroup research, 2014).

Organization Culture

Organizational culture always effects the performance of the company. There policies are made according to the culture. The company’s organizational culture is different from other retailer companies. The company is not ready to compromise on quality, honesty, humility, and integrity. It was announced by the CEO of the company to its employees that those workers are not needed in the company who are not performing their duties with honesty and integrity. The reputation of the company is good in the market. The company will not support the workers who are not performing well or according to the requirements of job (Kowitt, 2010).
Customer satisfaction is the priority of the company. The employees of the company are ordered to facilitate their customers in all sense. The services provided by the employees of the company must fulfill the needs of the customer. The company always gives training to its employees how to deal with different types of customers. The company has franchise in many parts of the world. The CEO of the company is sincere with the company and he wants to motivate the employees and lead them to become key employees of the company (Kowitt, 2010).
The business is related to retailer industry that has many franchises all over the world. It is the policy of the company to improve the quality of the products according to the preferences of the consumers of the product. The company applies marketing and promotional techniques to capture global market. The policy of the company is to provide better quality product and uniform services to the consumers allover the world (locationgroup research, 2014).

Summary of Risks for the Company

As it is discussed above, the company has succeeded in expanding its business in most parts of the world. The company has adopted expansion strategies so that more franchises will be introduce in the United States and other countries like China and United Kingdom. However, the strategy has some risks that must be assessed by the company to achieve its objective to increase the number of franchises in other markets (Kowitt, 2010).
The company has high risks to control its franchises that are located in different countries. Checks and balances are necessary to ensure that the business is moving in the directions set by the company’s management. It is not possible to control the tangible assets of the company that are located in other parts of the world. The company has an ability to overcome risks as it has dynamic and experienced top leaders that could handle these types of matters. The CEO of the company has the ability to control the operations and performance of their franchises (locationgroup research, 2014).
The company has the risk that the demand of the product might decrease due to the increase in health consciousness amongst consumers. It is a threat to the company that its number of customers will decrease if the customers stop consuming ice cream and coffee. The company has a brand image in the market and it has proved to be sincere to the health concerns of its consumers. The company prevented the use of harmful ingredients in the diluted sugar for the sake of its consumers (Hitt, Ireland, & Hoskisson, 2014).
It is concluded that the company has above risks that must be analyzed and the company has the potential to overcome these risks as it has proved in the past. The company has threats of substitutes as the market is competitive but the company is capable to survive in the market as it has strong brand position and loyalty with consumes (Orr, 2013).

Top 3 Competitors

The three top domestic competitors of the company are;
Starbucks Corporation,
McDonald, and
Yum! Brands Inc.
Three top competitors in international market are;
Brinker international, Inc.,
Wendy’s International, Inc. and
International Dairy Queen Inc.
These are competitors that are maintaining strong position in the market. The company has threats of substitutes regarding domestic competitors as Starbucks is offering coffee products in United States at low prices. The company has potential to counter the strategy by improving its quality. The prices offered by Dunkin’ Brands Group Inc. are reasonable due to the high quality products.
The international competitors are increasing their number of stores in different cities. The company adopted counter strategy by opening new franchises in other parts of the world. The strategy of opening new franchises in different countries is effective as it would expand the business of the company. The company will be able to compete in the market by increasing its tangible assets. The company has the competitive advantage in the market along with the trust of customers that will allow it to increase its customers in the domestic and international markets (Orr, 2013).
The company gives priority to satisfy the needs of the customers and it has succeeded in building trust among consumers. They have opportunity to expand their business in the US market as it has good market response particularly for its Baskin-Robbins brand. The company is planning to increase its revenues by making strategy that all products will be available in the same-store (Orr, 2013).

People, Planet and Profit

All these things are covered in the mission of the company. The mission of the company is clear that it wants to supply best quality products to its customers. It is referred to people as it is the social responsibility of the company to provide high quality products to its customers. It also includes the structure of its franchises. It is related to the corporate social responsibility of the company that it wants to contribute positively to the environment and attract large number of consumers to its restaurants. It could be inferred that the company wants to expand its business and adopt new strategy of the same-store to increase its profitability. Dunkin’ Brands Group Inc. is satisfying its stakeholders by fulfilling the financial purpose of the company (locationgroup research, 2014). All three P’s are covered in the mission of the company that it has to satisfy its customers, employees, and owners of the company. The chain of same-store restaurants is the evidence of the company’s mission and commitment to to work on all of these factors (Griffin & Griffin, 2012).

References

Griffin, M., & Griffin, R. W. (2012). Management Eighth Edition Paperback, Custom Publication. Boston: Houghton Mifflin College Division.
Hitt, M., Ireland, R. D., & Hoskisson, R. (2014). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Mason: Cengage Learning.
Kowitt, B. (2010). Dunkin Brands' Kitchen Crew. Fortune, 161 (7), 72-74.
locationgroup research. (2014). Retail Market Study Worldwide 2014. Wolfsburg: Location Group AG.
Orr, H. (2013). DNKN - Dunkin Brands Group Inc - Company Analysis and ASR Ranking Report. Alpha Street Research Reports, 1-9.