'Strategic Planning Case Study- Dunkin Donuts\r'

' strategicalal hospitality counseling A case digest of Dunkin’ Donuts with a concentrate on tools on hand(predicate) for strategic cooking. April 2013 Abstract The following turn out is based on the Quick utility Restaurants denounce (QSR)- Dunkin’ Donuts. The connection has been examine and a case study regarding the growing of the connection from 1950 till nowadays has been studied. return strategies of the troupe bring on been used to guess how they kitchen rangeed the smear of the supposes’s largest QSR.The Legal, Moral and good Issues of the comp either urinate also been studied and the solutions to those issues and the implementation has been studied Contents Abstracti Introduction1 Strategic mean1 The Process1 Dunkin’ Donuts3 Mission Statement3 Vision Statement3 Case field3 exploitation Strategy4 produce Strategies used by Dunkin’ Donuts4 mill analysis9 Legal, Moral and Ethical Issues10 resultant and Recommendat ion11 Bibliography12 incite ‘A’ Introduction Strategic inventning Strategic provision is a form that brings to flavour the mission and vision of he enterprise. A strategic intention, substantially crafted and of take account, is driven from the top down; considers the internal and foreign environment around the ph nonp atomic number 18il line; is the educate of the managers of the caper, and is communicated to entiretyly the vocation stakeholders, both intimate and outside(a) of the federation. As a alliance grows and as the disdain environment becomes to a greater extent(prenominal)(prenominal) than than complex the need for strategic specify becomes greater. in that location is a need for all hatful in the corporation to belowstand the direction and mission of the clientele.Companies consistently applying a condition approach to strategic intend atomic sum 18 bettor prepargond to create by mental act as the market changes and as diametrical market segments require different call for for the harvestings or portions of the corporation. The Process There is no nonp atomic number 18il formula or procedure for strategic planning. There are however, principles and required travel that optimize the value of strategic planning. The steps in the execute described in this series of articles on strategic planning are presented infra: * Current Situation Analysis naval division Analysis * Strength, Weakness, Opportunities, and Threat Analysis * content Competencies Analysis * Key Success Factors * chore Unit Strategy / Business Plan * Balanced Score Card * rating The choice, of the planning work on that causes best, should be driven by the grow of the organization, and by the comfort level of the participants. The strategic planning surgical procedure mustinessinessiness mirror the ethnical values and goals of the company. There are a number of important steps to regain in the process of strate gic planning.They embarrass collecting a meaningful and large data base, resourcefully thinking somewhat separation, defining gaps, assessing core competencies, and understanding the identifying vital resources and skills. An important distinction in the process is to recognize the difference between strategic planning and the work being d iodine, and strategic thinking, or the germinal, intuitive input. The planning chemical element involves the data collection, goal hardeningting, expectation commentary and statement of direction.Strategic thinking includes the intuitive and creative elements. This thinking process takes into account and helps to leverage the values of the internal culture of the business and external characteristics of the market. Strategic planning cigaret be a challenging process, specially the early time it is underinterpreted in a company. With patience and perseverance as intumesce as a well- find out aggroup labor the strategic plan eject be the beginning of modify and inevitable results for a company.At times when the business gets kill track a strategic plan ignore help direct the convalescence process. When strategic planning is toughened as an ongoing process it becomes a militant advantage and an offensive assurance of improved day to day execution of the business practices. (Mathews & Lee) Use of an outside, independent facilitator tail assembly help in the process and in the development of a strategic plan. An outside resource can provide objectiveness and divine service as a â€Å" flummox’s advocate” as well as a sounding placard for the vigilance charged with plan development.In the final exam analysis the plan must fall in the authorship and ownership of the owner and the managers who must execute and follow the strategic plan. It must be their plan. The strategic plan, to be of material long-term value, must be treated as an ongoing business process. It must be reflective of the owners’ mission and vision. It must evolve and change to reflect changing market and economic conditions. It must be proactive to competitive, market and economic conditions. If those steps are followed, the strategic plan bequeath institutionalize a culture of consecutive improvement and disciplined change.Strategic planning, when treated as a work in progress, kinda than as a binder on a shelf, or a institutionalise in a computer, provides business with a real and lasting competitive advantage. It impulsive help determine and direct the superior of relationships with suppliers, employees, unions, customers, and bankers. To get your business to where you desire it to be, scoop up with determination and drive to develop a useful and living strategic planning process. Give it strong pledge and trinitying from the top down. Develop and evolve it with betrothal and buy-in from the bottom up.Strategic planning is your company’s road map to your vision. (Whee lin, 2005) Dunkin’ Donuts Dunkin’ Donuts is a business in forage retail. They are the solid ground’s largest hot chocolate and baked goods chain. Dunkin’ Donuts afford been in business since 1950 and drive home been franchising since 1995. This dealership serves more than 2 million customers a day. Dunkin’ Donuts is owned by Dunkin’ Brands. Dunkin’ Brands has two companies in its portfolio which are Dunkin’ Donuts and Baskin Robins. It works under a 100% licence model and reduces enclose cost and can then lose weight more on menu and crossway purpose.Mission Statement Make and serve the freshest, virtually delicious coffee and donuts quickly and politely in modern, well- Merchandized funds. Vision Statement the States run on Dunkin’ Case Study From the beginning from a single eating place in Quincy Massachusetts, Dunkin’ Donuts is categoric a world(a) print with more than 10,000 locations in 32 countries. The festering is testimony to the fact that people eachwhere appreciate what Dunkin’ Donuts offers: spicy grapheme food and beverages served all day in a friendly, fast environment at a great value.In the United States, Dunkin’ Donuts has kept up(p) steady, strategic and disciplined return, opening e very(prenominal)wherebold restaurants in the core markets in the sexual union †east and in cities all end-to-end Mid Atlantic, sulfurern and Midwest states. (Donuts, 2011)They now have more than 7,000 restaurants in 36 states and the District of Columbia, Dunkin’ Donuts is an important part of life for millions of Americans. While Dunkin’ Donuts has nationwide dirt recognition, they have a momentous luck to aggrandize the number of restaurants in the United States as well as all around the world.The company recalls that they can double the dance step in the U. S to 15,000 Dunkin’ Donut Restaurants oer the next 20 years . The company has a strong presence globa bring upicly as well with more than 3000 Dunkin’ Donut Restaurants over 31 international countries crosswise 4 continents. The company maintains stable global expansion, opening upstart restaurants in Europe, Asia, Middle einsteinium and Latin and South American countries. Dunkin’ Donuts has already unresolved more than 88 locations in Greater China and has nearly opened 900 shops in South Korea.In 2010, the brand Re-entered Russia with novel restaurants in Moscow, and in 2012, the first set of Dunkin’ Donut Restaurants were opened in India and Guatemala. (Donuts, 2011) To master this high rate of growth across intimately of the world, and a vision to bear on to achieve and steadily grow at a high rate Dunkin’ Donuts under the company Dunkin’ Brands has a powerfully hypothecate Growth Strategy. Growth Strategy festering a business requires ongoing work in an environment of continually appear glo bal challenges.One of the most fundamental aspects of the growth process is the formation and distri simplyion of competences deep down and among organizations. To a large extent, the challenges for businesses are innovation and internationalization to grow businesses. The goal of any business growth is to extend gross and profitability with a reduced business cycle time that is more productive, ripe and export-led, delivers high-value products/services for customers and markets around the world. The following are major areas where businesses have to take initiatives to choke off growth strategy: * Market Growth Financial Transformational Initiatives * Supply Chain Management * popsourcing Concept (Kumar, 2010) Growth Strategies used by Dunkin’ Donuts 1. Increase comparable with(predicate) parentage gross gross sales and profitability in Dunkin’ Donuts U. S. The company’s largest run segment, Dunkin’ Donuts U. S. experienced positive comparable come in sales growth in eight of the last ten pecuniary years. The fiscal year 2011 with comparable store sales growth of 5. 1%, was the highest yearbook comparable store sales growth since 2005, and 7. 4% for the fourth quarter of 2011, which was the highest every quarter performance in the past septette years.There is a strong intention to come about building on comparable store sales growth momentum and up profitability through and through the following initiatives: * yet step-up coffee and beverage sales. Since the young 1980s, the company has been transformed into a coffee- emphasised brand and have genuine a importantly growd menu of beverage products. more or less 60% of Dunkin’ Donuts U. S. franchisee-reported sales for fiscal 2011 were generated from coffee and virgin(prenominal) beverages, which is cerebrate to generate increase customer visits to the stores and higher unit volumes, and which prove higher margins than their other products.They plan t o increase the coffee and beverage revenue through shroudd mod product innovations and link marketing, including advertising campaigns such(prenominal) as ’America Runs on Dunkin’ in 2011 Dunkin’ Donuts created a product called the K- Cups, which is a 12$ box with 14 K-Cups. This product had been an idea from the customers themselves, as it is an easier and more convenient method. It is used in the Keurig create from raw material system. The company that makes them, Green Mountain coffee berry Roasters Inc. , first denote its partnership with Dunkin Donuts in February.Dunkins decision to sell the K-Cups only in its outlets will help drive customers thither and perhaps lead them to make supererogatory purchases. It could also keep the brand from nice too omnipresent, which is widely acceptd to be a mistake made by Krispy Krem`e Doughnuts Inc. when it started selling its products in gas station and grocery stores. * reside to develop sweetenings in rest aurant operations. The company will continue to maintain a highly operations- drawed culture to help the franchisees maximize the quality and unity of their customers’ in-store experience, as well as to increase franchisee profitability.In patronage of this, on that point has been an initial enhancement and ongoing restaurant manager and faction training programs and developed new in-store planning and tracking technology tools to assist the franchisees. As a result, over 164,000 respondents, representing most 93% of all respondents, to the company’s client Satisfaction Survey program in December 2011 rated their overall experience as â€Å"Satisfied” or â€Å" elevatedly Satisfied. ” 2. Continue Dunkin’ Donuts U. S. Immediate store expansion The company believes in that respect is a significant prospect to grow the points of distribution for Dunkin’ Donuts in the U. S. iven the strong potential outside of the Northeast sphere to increase the per-capita insight to levels closer to those in their core markets. The company’s development strategy resulted in 243 net new U. S. store openings in fiscal 2011. In 2012, it is evaluate that their franchisees will open an special 260 to 280 net new points of distribution in the U. S. , principally in existing developed markets. They believe that strategy of focusing on contiguous growth has the potential to, over approximately the next 20 years, more than double our current U. S. footprint and reach a total of 15,000 points of distribution in the U.S. The following table details the per-capita brainwave levels in the U. S. regions. area| Population(ml)| Stores| Penetration| core 36. 0 3| 768 1:9| 560| Core 36. 0 3| eastern Established. 53. 8 2| 227 1:24| 160| Eastern Established. 53. 8 2| Eastern Emerging 88. 7 891 1:99| 600| 891| Eastern Emerging 88. 7 891 1:99| westbound 130. 0 129 1:1| 008| 100| West 130. 0 129 1:1| elude 1: As per December, 2011 * Increase penetration in existing markets. In the traditional core markets of New England and New York, there now is a Dunkin’ Donuts store for every 9,560 people.In the near term, there is an intention to focus the core development on other markets east of the Mississippi River, where currently there is only approximately one Dunkin’ Donuts store for every 99,600 people. In certain naturalised Eastern U. S. markets outside of their core markets, such as Philadelphia, Chicago and South Florida, they have already achieved per-capita penetration of greater than one Dunkin’ Donuts store for every 24,160 people. * Expand into new markets using a disciplined approach. The fellowship believes that the Western part of the U. S. epresents a significant growth opportunity for Dunkin’ Donuts. However, a disciplined approach to development is the best one for the brand and franchisees. Specifically, in the near term, they intend to focus on development in markets t hat are adjacent to the existing base, and more often than not move westward in an prompt fashion to less penetrated markets, providing for marketing and fork over chain efficiencies within each new market. * Focus on store-level political economy. In novel years, they have undertaken significant initiatives to further enhance store-level economics for their ranchisees, * Reducing the cash investment funds for new stores. * Increasing beverage sales. * menacing supply chain cost and implementing more efficient store management systems. The community believes these initiatives have further increased franchisee profitability. Dunkin’ Donuts deep entered into an agreement with the franchisee-owned supply chain conjunctive that provides for a three-year phase in of flat invoice pricing across the franchise system, which, coupled with the cost reductions noted above, should lead to cost savings across the entire franchise system.It is believed that this will be one of the drivers of the immediate development strategy, by up store-level economics in all markets, but particularly in newer markets where their growth is targeted. Store-level economics have also continued to win from increased national marketing and from the launching of Dunkin’ K-Cups into their restaurants. 3. Drive Accelerated International Growth. They believe there is a significant opportunity to grow points of distribution Dunkin’ Donuts in international markets.Their international expansion strategy has resulted in more than 3,500 net new openings in the last ten years. The key Elements of the incoming Growth Strategies are: * Grow in Their existing core markets. The Company’s international development strategy for Dunkin’ Donuts includes growth in their existing core markets. Dunkin’ Donuts intends to focus on growth in South Korea and the Middle East, where they currently have 857 and 229 points of distribution, respectively. During fiscal 20 12, the company is expected to open approximately 350- 450 new points of distribution internationally, principally in their existing markets.However, there can be no assurance that their franchisees will be successful in opening this number of, or any, additional points of distribution. * Capitalize on other markets with significant growth potential. Dunkin’ Donuts intends on expanding in certain international focus markets where the brand does not have a significant store presence, but where they believe there is consumer demand for the products as well as strong franchisee partners. In 2011, it was announced that an agreement with an experienced QSR franchisee to enter the Indian market with Dunkin’ Donuts brand.The agreement calls for the development of at least 500 Dunkin’ Donuts restaurants throughout India, the first of which is expected to open by the twinkling quarter of 2012. By teaming with topical anesthetic operators, it is believed they are better able to adapt the brands to local business practices and consumer preferences. * Further develop the franchisee support infrastructure. Dunkin’ Donuts plan to increase the focus on providing international franchisees with operational tools and services that can help them to efficiently operate in their markets and become more profitable.Dunkin’ Donuts plans to focus on up(a) on native-language restaurant training programs and updating existing restaurants for the new international retail restaurant designs. To accomplish this, we are dedicating additional resources to our restaurant operations support teams in key geographies in come in to assist international franchisees in improving their store-level operations. (Brands, 2012) Segment| Q2 2012 Comparable Store gross revenue Growth| Q1 2012 Comparable Store sales Growth| Q2 2012System wideSales Growth| Q1 2012 System wideSales Growth| Dunkin’ Donuts U. S| 4. 0%| 7. 2%| 7. %| 11. 5%| Dunkin’ Donuts Int ernational| 3. 5%| 2. 3%| 1. 5%| 4. 8%| The long-term prospects of Dunkin Brands seem very impressive. Dunkin Brands is compensated as a portion of franchisee top-line and it bears basically no store operating costs itself. With only 36 company- owned points of distribution out of a total of 17,016 as of June 30, 2012, the company is less moved(p) by store level costs and profitability and fluctuations in commodity costs than many other QSR operators. (Saibus, 2012) SWOT ANALYSIS Strengths * High operating Profit marge * down(p)er Costs than Industry High Brand Recognition * Becoming socially Responsible Weaknesses * High Debt * Low growth on Equity Ratio * High Interest Rate * Need to better manage Fixed assets Opportunity * consecrate off some debt * Open more stores in the West * Capitalize on high customer Loyalty Threats * Low entry Barriers into Industry * wellness intended society and Starbucks focusing on Health and Wellness * Krispy Kreme expands into the Global Mar ket calve ‘B’ Legal, Moral and Ethical Issues * of late in news articles, it was reported that there were approximately 350 lawsuits between Dunkin’ and its franchisees.The company has been impeach of aggressively targeting shop owners in an effort to terminate franchise agreements and in the process collect hefty fees and penalties for alleged contract violations. Michelle King is Dunkin’s Director of unexclusive Relations and he states that strongly boost Dunkin’ Brands to take a step sticker and reconsider its policy of litigation and instead embrace its process of mediation to dismiss down disputes with franchise owners. He said, â€Å"It is the right hand social occasion to do to grow the brand in an increasingly challenging and competitive environment.DDIFO is ready, willing and able to help see this process of mediation come to fruition. ” (Leiber, 2009) * Due to the choppy increase in the consciousness of health and wellnes s, Dunkin’ Donuts has come across a virtuous dilemma as most of their Products go against the code of healthy food. Their competitor Starbucks has taken a turn and concentrated more of healthy eating which has created a drop in the business of Dunkin’ Donuts, to overcome this the company has also started concentrating on health food and beverages. Dunkin’ Brands leaders have an added obligation to regard that policies are communicated to employees and that business practices are intentional to prevent im victorian conduct. They have a responsibility to build and maintain a culture of compliance by ensuring employees recognize that our integrity should never be compromised in order to achieve business results. The work out of Conduct provides employees and directors with guidance on doing the right thing. However, it is not an all inclusive list of do’s and don’ts.The Overview sections outline the intended behavior and the Expectations and Exa mples of What to Watch Out For sections provide some examples of what employees and directors should and should not do. (Dunkin, 2012) Conclusion and Recommendation Strategic planning and management is what makes or breaks a company or Brand. Dunkin’ Donuts, The Company I have through with(p) my study on is a brand which I think has put a lot of thought into the planning of business. Their techniques and business sense is what has brought them to be America’s most popular quick service restaurant chain.In this essay I have studied the growth strategies of the company and how from a single outlet in 1950, today it has a presence in most countries in the world. This is possible because of a proper vision that the company had and a set of strong Growth Strategies. The company has strongly believed in spreading and making their brand what people live by. I believe that Dunkin Donuts should aggressively target India, as it is expected to Grow over half a billion in Breakfa st solid food sales by 2016.The Asia pacific Region is growing rapidly and should be Targeted within the next five years. The company should take advantage more on college campuses as what they serve is directly related to the average provender of a teenager. They should target this market in both America and abroad. Bibliography Brands, D. (2012). Annual advertise 2012. massechusetts: Edgar Online. Donuts, D. (2011). Global Presence. Retrieved April 12, 2013, from Dunkindonuts: http://www. dunkindonuts. com/content/dunkindonuts/en/company/global. tml Dunkin. (2012). Code of Business Conduct and Ethics. Canton. Kumar, D. (2010). enterprise Growth Strategy: Vision, Planning and Execution. Surrey: Ashgate issue Group. Leiber, N. (2009, October 8). Attorneys Criticize Dunkin Donuts Litigious Behavior. Business hebdomadally . Mathews, J. F. , & Lee, H. Business Devlopment Index. Columbus: Ohio State University. Saibus. (2012). Dunkin Brands Is Brewing Up Strong Perfomance. pu rsuit Alpha. Wheelin, T. (2005). Concepts in Strategic Mangement.\r\n'