Dunkin Donuts

DUNKIN’ DONUTS Analysis of the Principles of Management

HISTORY •

In 1946 Bill Rosenberg invested$5000 to start industrial luncheon services.

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In 1948 Bill Rosenberg opened a donut shop named “Open Kettle” in Quincy, Massachusetts

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In 1950 Open Kettle’s name was changed to Dunkin’ ’’ Donuts

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In 1970 First overseas Dunkin’ ’’ Donuts restaurant opens in Japan

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In 1979 Dunkin’ Donuts opens 1000th Restaurant in USA

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In 1990 2000th U.S. Dunkin’ Donuts Restaurant Opens

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In 1992 3000th U.S. Dunkin’ Donuts Restaurant Opens

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In 2000 Dunkin’ Donuts starts operations in Pakistan

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In 2000 Dunkin’ Donuts opens 5000th International Restaurant

HIERARCHY

PLANNING IN DUNKIN’ DONUTS Goals • • • •

Open 100 outlets in Karachi Increase customer satisfaction Expand Sales Get Higher Market Share

Plans • Improve Quality • Effective Marketing • Searching for Good Place for Franchising

SWOT ANALYSIS Strengths • Reputation for brewing high quality coffee • Serves nearly 30 cups of freshly brewed coffee each second • Mails coupons to their customers

Weaknesses No Weaknesses

SWOT ANALYSIS Opportunities • Franchises available. • The opening of new stores

Threats • McDonalds gourmet coffee • In Pakistan, the political and law & order situation • People want to eat healthier (low calorie/low carbohydrate).

PLANNING • Process through which organization defines main objectives and goals. STRATEGIC PLANS – Clearly defines organizational goals – SWOT Analysis – BCG Matrix

GOALS Desired Outcomes

THE BCG MATRIX • • • •

Boston Consulting Group Matrix Helps Organizations Allocate Resources Used in conjunction with SWOT Analysis Categorizes Business Units according to Market Share and Market Growth Rate • Categorizes Business Units into – – – –

Stars: High Market Share and Growth Rate Cash Cows: Low Growth Rate and High Market Share Question Marks: High Growth Rate and Low Market Share Dogs: Low Growth Rate and Market Share

THE BCG MATRIX

THE BCG MATRIX • Stars – Donuts • Boston Kreme • Chocolate Sprinkle

• Cash Cows – Munchkins

• Question Marks – Mini Pizza

• Dogs – Bagel with Cream

THE BCG MATRIX

LEADING PROCESS • Leadership is processes in which mangers motivate their subordinates in order get the most out of them. • The factor that is considered to be the most important one throughout the world is the presence of interpersonal skills in the leaders. • The human interaction plays an essential part in influencing the human behavior • Every organization in Pakistan has their own way of leading : Some stick to the highly professional approach where they are highly goal oriented In some organizations the leaders have the fatherly concern where along with supervising the people on work, they also take care of subordinate’s off-the-work life.

LEADERSHIP AT DUNKIN’ DONUTS: • Usually the leadership in the organizations is all about being the first one, the most powerful and the biggest one but the trend that has been followed in Dunkin donut revolves around the effort in setting the direction and influencing people to follow that direction. • The ability to analyze information and make decision and he also possess the ability to judge his own performance through self evaluation forms for the self appraisal and also take feedback from the subordinates through these appraisal forms. • The employees who fulfill their monthly, quarterly and yearly targets get different kind of incentives and sometimes even a promotion for showing high efforts performances this help them to motivate their employees.

LEADERSHIP AT DUNKIN’ DONUTS: • The mode of communication used at Dunkin’ Donuts is the world call telephones at every shop and office that makes the communication between the workers and the manager at the head office easier and effective • The leadership style that is used at Dunkin’ Donuts is autocratic where the leader makes the decision and everyone has to follow it. They are using the same policy since so many years so it is considered to be the most effective one. • Dunkin’ Donuts highly appreciates the cross functional team approach as it enhances the capabilities of every single individual which in turn affect the organization progress.

THE ORGANIZING PROCESS • The arranging and structuring work to accomplish organizational goals is known as organizing. • Organizational structure is the formal arrangement of jobs within an organization. • Organizations don’t have identical structures. Different organizations do different tasks, so they have different generic models of organization design • Managers are finding that traditional designs are often aren’t appropriate for today’s increasingly dynamic and complex environment. • Managers are finding creative ways to structure and organize work.

THE ORGANIZING PROCESS • At Dunkin Donuts the decisions making takes place at upper level. • Dunkin Donuts is a centralized type organization. • Dunkin Donuts has organic structure. • Dunkin Donuts follow Team structure • Dunkin Donuts is learning organization

CONTROLLING PROCESS After the goals and plans are set, Tasks and structural arrangements are made , people are hired, Trained and motivated, there has to be some evaluation of whether the things are implemented. To ensure that goals are being met, managers must monitor and evaluate performance. This is called “Controlling”.

CONTROLLING PROCESS AT DUNKIN DONUTS • Dunkin Donuts Performance management focuses on what techniques and methodo0logy is involved in controlling the Organization. It is the natural process of Organization and basically called the one of the six sigma. •This method can be described as a Comprehensive process starting from monitoring and developing Desired Characteristics to Value company’s progress and rewarding employees for their achievements. •It points out any shortcomings of either’s company’s staff or Business plans and helps to take appropriate corrective actions. •Controlling process also helps managers to provide certain Guidelines of what they expect and what the employees need to accomplish.

CONTROLLING PROCESS Quality Control is one of the most important parts in Organization Controlling Process. During this Quality Control Process, the Organization divides the whole production processes in to smaller and simpler processes to identify the points where inspection review is necessary. Dunkin Donuts mainly focuses on the satisfaction of the customers and therefore, Quality Control is necessary to provide efficient service.

Quality Control(Continued) •The process which involves in Quality Control is by sending a person to different outlets of Dunkin Donuts for the Inspection of the products. •The main Strategy of controlling the Work tasks of Dunkin Donuts is using “Cause and Effect” method. • Through this process company Identifies the issue and then divide it in to different Departments and tries to resolve that issue.

CONTROLLING PROCESS •There are different cultures present in Dunkin Donuts Market Strategy, which are continuously adapting new Technologies to satisfy the Demands of consumer needs. •Dunkin Donuts is keeping the factors such as Age, Income and most importantly the lifestyle of the customers to succeed in such a competitive market. To control this situation Dunkin Donuts have Implemented several changes to attract customers . •Like their many Restaurants are looking for Centralized kitchens to increase the Profit and reduce the cost.

(Continued) •It also monitors the speed of it’s employees service in providing quality products to their Customers. •Dunkin Donuts Empowers by controlling it’s Departmental Teams to satisfy their guests and fulfill their all needs in a friendly manner.

HUMAN RESOURCE MANAGEMENT Overview of Company • Private • Largest Chain in Coffee and Baked goods Long Term Goals • To Become Diversified Company • Recruit Highly Productive People

HUMAN RESOURCE MANAGEMENT Parts of HRM Process at Dunkin’ Donuts • Recruitment • Selection • Application Process and Evaluation • Short Listing & Interviewing • Hiring • Training Performance Management • Compensation and Benefits • Career Development