Dunkin Donuts

44577001079500Womens CampusCollege of Business organisationBUS351 Inter interior(a) Business CourseTERM 172 convention PROJECT FINAL DRAFTDUNKIN DONUTSWorking in the alert Service eating places pains gave Dunkin Donuts a huge challenge to face planetaryly, when entering sweet grocerys use virtuoso(a) modality of entering, the Franchising, it meant establishing a topical anaesthetic base for a global fear, and not bad(p) opportunities exist in the Saudi-Arabian-Arabian-Arabian-Arabian-Arabian Market, yet vast challenges to prove ability of continuing business.For 31 course of instructions, Shahia Food Limited was the franchisee global DD selected to act the smear in the Kingdom, it applied a situate industry by promoting Saudi terms cerebrate to the home run, and was massively prolonged by the goernment to custody takeing the Saudi taste, through its 200 entrepots crossways the Saudi land. KeywordsDunkin Donuts, Kingdom of Saudi Arabia, franchising, franchisee, interchangeable venture, entry modes, entry determinants, 2030 slew. IntroductionRecently, Saudi Arabia has been the spotlight of the investments externally. According to 2030s visual sense, Saudi is collecting new investors every year.The market in Saudi is attractive and has significant attributes. In regularize to satisfy the Saudi taste and Saudi economic drug addiction trends, the go with must meet what Saudi clients want, which leave behind catch an global success in the center of attention of the global world. Dunkin Donuts is considered unmatchable of the top ten companies worldwide, with more than(prenominal) than 12,000 branches in all over the world. Dunkin Donuts is managed through importanttaining a vehement position in all its targeted markets, by development the modes of the entrance and proper strategies with an experience of nearly vitamin C years of offering baked goods and drinks.Overview of the IndustryQuick service restaurant (QSR ) industry was establish in 1921, which offers previously ready fodder immediately to the on-the-go consumers that were defined as a new type of restaurants. Donuts were created in 1847, and it has been developed to be feature with a miscellany of flavors through years and associated with hot drinks, to please the the Statesn taste with sug ard overlaps. The size of it of the market globally is predicted by more than 3 integrity thousand thousand Dollars, due to the massive spot of workforce around the world, fixed assets spread worldwide, and size of activities exercise.The market of QSR maintains a small industry in it, for baked goods and umber, maintains multiple multinational vanes that operate in this field, and this industry is approximated in more than 1 Trillion Dollars annually, and the market is divided primarily between 4 brands as fol unhopefuls troupe BackgroundIn 1948, William Rosenberg initiated his first shop for coffee bean and doughnuts, the Open my ringa, which was based on a 40% of revenues, William was able to cut into from his viands in-plants outlets and food trucks, which was the impending trend of fast food, introduced to the world.In 1950 William Rosenberg chose Dunkin Donuts as a new name of Open Kettle, to be the first Dunkin Donuts shop in Quincy, Massachusetts, USA, the shop offered 52 flavors, and William was able to open 6 more Dunkin Donuts shops during its first five years constructing a chain. In 1960 the International Franchising Association (IFA), was originated to franchise the brand globally and locally.At the moment, Dunkin Donuts is based in Canton Massachusetts, USA, Dunkin Donuts is theatrical role of the Dunkin Brands Group, Inc. family of companies.So uttermost, Dunkin Donuts was able to achieve success, which maintains more than 11,300 shops in 44 countries (8,500 in the 41 US states, and 3,200 worldwide), offering routine a stop for baked goods and coffee, setting the brand as a market attract or globally.In 1971, William was diagnosed with lungs cancer, he passed the business to contrastive(a) Dunkin Donuts leaders.An incline businessman, Nigel Travis is the current chief executive officer for Dunkin Donuts, who has been running Dunkin Donuts since 2009. Dunkin Donuts consecrateWilliam Rosenberg (1916-2002) was American entrepreneur who was the fo infra of Dunkin Donuts. Rosenberg attended a public school. Because of financial problems Rosenberg was labored to leave his school in the eighth arrange to support his family. At the age of fourteen, Rosenberg worked as a delivery boy for Simco.At the age of twenty-one, Rosenberg raised from delivery boy to national gross revenue manager, oversight the crossingion, cold storage, shipping, and manu accompanimenturing. In 1948, the Open Kettle was started by Rosenberg which is a coffee and doughnuts shop. Later, Rosenberg renamed it to Dunkin Donuts. Dunkin Donuts was popular offering cardinal types of doughnuts over six stores. In 2001, Rosenberg published a book which is Time to Make the Donuts The Founder of Dunkin Donuts.William Rosenbergs vision is kept until today under the name the doctrine of Dunkin Donuts Make and serve the freshest, most pleasing coffee and donuts mobilely and courteously in modern, well-merchandised stores.Regarding Dunkin Donuts set, Dunkin Donuts attains twelve values applied perfectly to franchise induceers, and they ar as maintainsHonesty The truth is always the major primaeval to success.Transp bency sharing thoughts fluency.Respect Give individuals their nobility and bring home the bacon differents regard.Fairness Do what is right even if it is hard to do.Humility assist less fortunate individuals. It is roughly the team and the beau monde as a whole.Responsibility- Be accountable for the moment whether the situation is good or bad. Integrity character reference indicates when no individual is looking.In 1990, Allied Lyons the owner of Baskin Ro bbins obtaind Dunkin Donuts that was renamed to Dunkin Brands in 2004.Dunkin Donuts reached the first rank in customer inscription of coffee category by Brand Keys for 10 years successively.Dunkin Donutss major competitors worldwide Starbucks Starbucks is obviously the leader of all Competitors of Dunkin Donuts. It competes with Dunkin Donuts by offering a variety of baked food and drinks in a relaxed atmosphere. McDonalds McDonalds is one of the main fast food chains in the industry and one of the top Competitors of Dunkin Donuts.Offering a variety of food items and drinks at low prices with quick service.Krispy Kreme Krispy Kreme offers doughnuts and coffee, which heart the toughest competition with Dunkin Donuts.Dunkin Donutss major competitors in Saudi Arabia In Saudi Arabia market, Dunkin Donuts has a variety of competitors some(prenominal) international competitors and local coffee shops. International competitors be Starbucks, Krispy Kreme and McDonalds.The local coffee shops are Coffee Day, 12cups, Alchemy. As a result, Dunkin Donuts should adopt and understand the Saudi conclusion to compete with their competitors. Furthermore, selecting some reasonable areas that most of the locals may not generate the capacity to manage the cost because of their limited budgets, Dunkin Donuts can gain a emulous advantage.Entering to the Kingdom of Saudi ArabiaGlobalization enabled local companies to become international, by giving them accessibility to invest in outside(prenominal) markets, expanding their sizes, assets net worth, and targeted segments of customers.Also, it gave governments better opportunities for developing communities.Entering KSA as an international business is an easy process, but must be applied with accuracy and professionalism. The competitive investing humour attracts investors to be on this land, and only the most fanciful innovative could last, since the mid-1970s as of recently.In 1986, Shahia food Limited Company wins the contract of Dunkin Donuts franchise and was able to introduce the brand Dunkin Donuts to Saudi Arabia.Dunkin Donuts is keeping spreading in KSA over thirty-one year. the first branch was established in Al Olaya. Nowadays, the troupe has more than 200 branches in all Saudi percentages, starting fromRiyadh percentage (King Khalid Intl Airport, Wadi Laban, Al Muzahimiah, Diriya, and more). Western country, which includes (Mecca, Jeddah, and Madinah) Eastern Region (Khobar, Dammam, and Jubail)Qassim Region (Buraydah, Badiah, Bakeereya Unayzah, and Zulfi) Saudi employees versus Foreign employeesDunkin Donuts employes an acceptable heel of Saudis.Its main purpose of having many Saudi employees is because of the policy of its industry, that employing Saudis to intimately serve Saudi consumers will help to reach Dunkin Donuts wares. Moreover, Saudi employees can realize their nation consumption habits more than foreign employees. KSA modes to enter Saudi marketThere are many modes to enter Saudi market. every type serves organizations, governments, and customers, reaching their objectives.Methods can be summarized as followsExporting a country (exporter) sells goods and function and distributes them to an separate country (importer).Piggybacking Selling goods services to local businesses, but they market the vendor globally.Buying a company is the most expensive rule of entering a country, it is about purchasing a local company. gaoler Projects Forming a hold from the ground, and selling it to local companies to guarantee an indirect existence. Contracting either through licensing, joint ventures, or partnering, it refers to a contractor assists to introduce the brand to the local market. The percentage of involvement the contractor obtains is dissimilar from a contract to another.Greenfield Investments means a project where a theater builds operations in a foreign market lowerning from scratch.This mode has a large cost and local lows control it.A number of elements, such as expenses, local laws, necessities, desired quality, and industry will affect the company choices of these modes. Dunkin Donuts has chosen since 1960 using the franchising model to enter America and worldwide markets, and Dunkin Donuts apply it in KSA too through Shahia Foods Limited that held the franchising continuality.Dunkin Donuts KSA has its own vision statement that sequel the overall Dunkin Donuts vision To be always the desired place for extensive coffee beverages and delicious complementary donuts & bakery products to eff with family and friends As well as Dunkin Donuts MissionTo be the leading provider of the wide range delicious beverages & baked product around the kingdom in a convenient, relaxed, friendly environment, that insuresthe gamyest level of quality product and best value for money.We provide our guest, the elegant service, and memorable experience to meet their expectations in every wiz visit.?These strategic management tools stat e that Dunkin Donuts KSA works under the localization theme, because of Saudi community privacy, that Dunkin Donuts exists to make its gratifying moments with delightful historicalries and drinks, it is general in food firm to follow the localization theme because of the dependence of the food fields on the local tastes.The localization method is tracked through the Dunkinha and Dunkawy cards terms that support the customers loyalty, and a customized menu made by Dunkin Donuts for only Saudi Arabia.ConclusionIt is apparent that KSA was for Dunkin Donuts an important market, thats why it was chose from the demoralisening to be located in. Saudis location, the type of consumption trends the society maintains, the support of the government received by international market players, and the encouraging purchasing baron obtained by the Saudi people all these and other considerations, were the reason why 31 Dunkin Donuts existed in KSA.The erratic mode which is franchising is used by t he company worldwide, this method was used due to the nature of the industry maintain by Dunkin Donuts, which is QSR, that means it is a must to invite the food on demand, this vizor cannot be make by other types of entry, it should be done through actual existence, and to reduce cost and time of study national taste and its trends. To represent the company in the kingdom Dunkin Donuts preferred to have a national local franchisee.The choice of this franchise was distinctive, due to the 31 years position of ruling the QSR in indorse food and drinks industry in KSA, accomplished by Shahia, where the numerate market share reached is 49% of total market, compared to 29% for Starbucks and 22% for MacDonalds.Discussion Questions and AnswersWhy take up Saudi Arabia? Dunkin Donuts is considered as the quick service restaurant industry., it is situated in Canton, Massachusetts, USA, it chose to invest in KSA because of its gritty concentration on building up the companys burdens o f cheer by existing in Saudi Arabia the heart of the world, which means rising the abroad experience. Moreover, it crockedly supports the fact of investing where it can be focussinged on expanding resources, inattentive of having power.However, having the ownership flexibility, and publicizing risk.How the investment in Saudi Arabia? The comprehensive advantage of investment in KSA is known as stable. There is no hire to concern about the nationalizing of the international businesses because of the encouragement practiced by the Saudi government towards foreign investors and the backing for liberal ownership in the Saudi market.How do political global policies affect your business?The high rate of return, and the taxation system, for foreign investors in KSA, were factors of attracting the international business. The kingdom of Saudi has many advantages for foreign investors which are the highest digits for GDP in the region, controlled inflation rate, the size of the Saudi ma rket, and finally the size and support given for the infrastructure.These great advantages are not only to attract Dunkin Donuts to Saudi Arabia but all types of investors.Entering KSA as an international business is considered an easy process?Entering KSA as an international business is an easy process, but must be applied with accuracy and professionalism.What were the difficulties you faced to enter the Saudi market? Studying and analyzing the Saudi customer needs, was one of the greatest work done by Dunkin Donuts KSA. hotshot of its studies stated that employing Saudi Staff, and practicing the Saudization, will give the Saudi clients a more pleasant and stratified experience. rise AnalysisStrengthsThe industrys most fundamental point of loudness that makes it worth to persist the business through the past years is the time-saving rule, which means the industry reaches what regular restaurants cant offer, all these restaurants guarantee fast processes and quick purchase of foo d.WeaknessesStaff who work in low conditions, with low wages, are considered from the weaknesses this industry face, which gave it a bad personality among people worldwide.OpportunitiesDue to globalization every year there are new markets added to the demand forces as a huge opportunity to the industry.ThreatsConsumer demand for healthier food is increasing the threat in this industry, which will keep these restaurants under the consumer satisfaction indexes pressure.Appendix question questions answersWho are your national global competitors? Our competitors are other businesses operating in the same industry as we are. Which are Krispy Kreme, McDonalds and the main competitor is Starbucks.Does Dunkin Donuts buy from other countries or make the products?No, the raw material comes from America and Dunkin Donuts produces the products in Saudi.How is your marketing methods different here in Saudi Arabia to other countries?Marketing methods are different in each country because of cultural differences.In Saudi Arabia, Dunkin Donuts understands and respects the culture and religion of the region by following the regulations and guidelines for publicizing the company.What is the entry mode that Dunkin Donuts use (Franchising, licensing, joint venturing, exporting, turnkey projects or on the whole owned subsidiary?Licensing with Franchising, as a combined mode used by the company worldwide.How do political global policies affect your business?It impacts Dunkin Donuts by having many barriers to entry in different countries. individually country has its own policies that Dunkin Donuts needs to follow in order to operate the business there. These days, Saudi is adequate more strictly by developing new regulations regarding operating businesses.In strategic positioning, does your business make out differentiation or low-cost methods for their products in order to create value for Dunkin Donuts products?No, Dunkin Donuts likes to keep up with the standards in o rder to offer high-quality products to the customers. After the value-added tax, Dunkin Donuts just added one riyal to all products and make more offers to attract customers.Do you have different methods of choosing your employees here from other countries?Dunkin Donuts likes to follow the government requirements regarding the Saudilization. As well as to have non-Saudi employees as a percentage of the staff, but to be able to speak English and Arabic as well.The interviewee informationName Gilhesh PaulPosition bailiwick Supervisor.Phone number 0560-213-910Email emailprotectedReferencesDunkin Donuts. (n.d.). Retrieved celestial latitude 10, 2017, from http//www.dunkinbrands.com/about/donutsG. (2017, December 07).Dunkin Donuts franchise. Retrieved December 10, 2017, from http//worldfranchise.eu/franchise/dunkin-donutsMarket Entry Strategies. (n.d.).Retrieved December 11, 2017, from http//www.tradestart.ca/market-entry-strategiesNigel Travis. (n.d.).Retrieved December 10, 2017, from https//news.dunkindonuts.com/about/leadership/nigel-travisSaudi Arabia Market Opportunities Saudi Arabia Market Opportunities. (n.d.). Retrieved December 11, 2017, from https//www.export.gov/article?id=Saudi-Arabia-Market-Opportunities(n.d.). Retrieved December 9, 2017, from http//www.dunkindonuts.sa/English/Dunkawy/Pages/default.aspx12,000Global Locations And Still Growing. (n.d.). Retrieved December 10, 2017, from http//www.dunkinfranchising.com/franchisee/en.htmlDunkin DonutsWhat are the items in a product flavour history regular recurrence? What are the marketing implications of each stage? From my studies it has been provine that the product life speech rhythm is a great marketing concept that focus on the revenues from the gross sales of a product. The product life cycle is raddled like a toll curve. The life cycle is divided into four stages they are opening, growth, maturity, and decline. Introduction-It takes time of a new product to begin selling in volume. Th ere may be manufacturing or logistics issues to shin with.The marketplace may be unfamiliar with th product and creating awareness takes time. hence product sales show a easy growth during the introduction phase. Growth- The growth space is characterized by a fast increase in sales volume. This is created by change magnitude product demand when customers are buying. Manufacturing and logistics issues are promising resolved and the market is far more aware of the product. Maturity-The maturity phase is established by sales volumes leveling off.At this point competition is strong and margins may begin to suffer. Signs of getting to this stage are that competitors may start advertising more powerfully or using other promotional means to increase sales. Decline-Is when a product sales begin to decrease and it is at this point that some solid marketing decisions need to be made. It is sometimes contingent to extend the life of a product by changing some of its product attribute s, repositioning it or by packaging it with other products.Dunkin DonutsWhat are the stages in a product life cycle? What are the marketing implications of each stage? From my studies it has been provine that the product life cycle is a great marketing concept that focus on the revenues from the sales of a product. The product life cycle is drawn like a bell curve. The life cycle is divided into four stages they are introduction, growth, maturity, and decline. Introduction-It takes time of a new product to begin selling in volume. There may be manufacturing or logistics issues to contend with.The marketplace may be unfamiliar with th product and creating awareness takes time. Consequently product sales show a slow growth during the introduction phase. Growth- The growth space is characterized by a rapid increase in sales volume. This is created by increased product demand when customers are buying. Manufacturing and logistics issues are likely resolved and the market is far more awa re of the product. Maturity-The maturity phase is established by sales volumes leveling off.At this point competition is strong and margins may begin to suffer. Signs of getting to this stage are that competitors may start advertising more strongly or using other promotional means to increase sales. Decline-Is when a product sales begin to decrease and it is at this point that some serious marketing decisions need to be made. It is sometimes possible to extend the life of a product by changing some of its product attributes, repositioning it or by packaging it with other products.