The global supply chain practices and their impacts gained considerable attention in the last two decades. In the last few years, the growing need for integration of the supply chain has been highlighted as a factor for effective and efficient operations of the supply chain. The phenomenon is observable with the increasing trend of a collaborative partnership between different supply chain actors. This paper presents an integrated approach to the production and distribution network within the supply chain of Dunkin Donuts. It will show that integrated manufacturing and distribution networks create an environment for effective planning of different components, operations, customers, and suppliers. The main feature of the integration to support operations include components at the individual process level to integrate with the central warehouse.
Dunkin Brand Group is a quick service restaurant (QRS) that serves hot and cold coffee, ice cream, and baked goods. Primarily, the company operates in the breakfast part of the day within the QSR segment of the restaurant industry. The fast-food restaurant operates globally and has more than 20,900 locations spread across 60 countries (Castellanos, 2019). The Dunkin’ Brand Group is among the leading quick-service franchisor restaurant and operates both as Dunkin and Baskin-Robbins. Currently, Dunkin Donuts is America’s everyday coffee stop and baked goods. The restaurants still use the original propriety coffee blend recipe that was established by the founding member. Additionally, it also offers a full lineup of espresso beverages including Cappuccinos, Lattes, and Macchiato (Castellanos, 2019). Hence, the brand is growing and constantly innovating to ensure it has offered its customers delicious flavors and menus that keep them coming for more.
Three Tasks that Do Not Align with the Operational Strategy
Dunkin Donuts’ transition to a mixed strategy of having both brick-and-mortar stores and online ones is not aligning with its operational strategy. At the face value, the company seems to be having a good online presence. They have managed to establish delivery options with a range of products that the customers can choose from. They include buying an online ship-to-store, home delivery, and the ability to pay in one store and pick up the product in another in the United States (Khalifa, 2020). However, the online business is not aligning with the company’s mission of providing its customers with a range of beverages and baked products in a relaxed and friendly environment that ensures the highest level of satisfaction and quality. The online sections do not showcase to the customers the ambiance of Dunkin Donuts stores. Therefore, online customers do not get to experience the value for their money without visiting a physical store.
The company’s operations are also being hampered by poor targeting of customers outside the United States. Although the company has managed over the years to ensure it has steady income growth in the U.S, the chain is struggling in other markets such as India which is an emerging market. The challenge is attributable to the poor understanding of the market outside the U.S which leads to weak strategies (Khalifa, 2020). The company has failed to make an impact in major emerging markets because its product’s dietary composition does not align with that of the target market. The failure of the company to adapt to the dietary and beverage needs of the host country is what has been delaying its expansion in these markets.
Overlying on the U.S market has been a major undoing of the company to have a lasting presence in the emerging markets. Previously, the restaurant started a campaign with the slogan “America runs on n Dunkin” which was true in the literal sense. The company has managed to gain a grip on the American fast-food market (Schouten, 2019). However, the strategies that it has employed in this market have failed to replicate the same success in other markets. Additionally, the controversies that have rocked the company have made many customers lack trust in Dunkin Donuts and instead favor their competitors.
New Operational Strategy for Dunkin Donuts
Cost Strategy: Dunkin Donuts should ensure that it has introduced different pricing that caters to a wider market. The prices of its commodity should be affordable to enable everyone to afford it which will in turn push its revenue growth.
Time: Dunkin Donuts should leverage its many restaurants spread across 60mcountries. It should give its clients the option of paying in one center and collecting the drink in another. This way, one can pay for a friend a drink while in one store while the friend enjoys it in another location.
Quality: The quality of the baked goods and beverages is very important if the company has to survive the high completion in the beverage market. Therefore, Dunkin Donuts should introduce a range of health wellness products to capture the healthy conscious groups.
Flexibility: Dunkin Donuts should introduce flexible working hours for employees to ensure that they get enough relaxation after and before their shift. Additionally, the restaurants should be flexible to accommodate the needs of different clients that visit their establishments.
Enablers
The enablers that Dunkin Donuts should consider would be the growth opportunities brought by emerging markets, fulfilling the unmet needs of the customers and alignment to business strategy. The pros of the above enablers are that Dunkin Donuts will enter new markets and introduce its products. Secondly, the company will satisfy the needs of its customers. Additionally, the company will align its operations to the overall strategy of Dunkin Donut Group. However, the cons are that its growth will be hampered by the growing globalization, fast paced technology and dynamic needs of the consumers. The growth opportunities in the emerging markets come with unique needs different from those of the home market making difficult to replicate American success in another country. Alignment of the business strategy is hampered by the different cultural values between the host and the parent country.
References
Castellanos, S. (2019). Dunkin’ image refresh enabled by tech, says it and strategy chief. Web.
Khalifa, A. (2020). Strategy, non-strategy and no strategy. Journal of Strategy and Management, 14(1), 35-49.
Schouten, R. (2019). Dunkin’ makes progress on ‘blueprint for growth’. Web.