...Read “Application Case 13-1: Dunkin’ Donuts and Domino’s Pizza: Training for Quality and Hustle” and answer the following questions. 1. What are the strengths and shortcomings of a decentralized approach to training managers and hourly employees? Discuss. 2. Develop a plan for determining the training needs of the hourly paid staff of a Domino’s pizza franchise. 3. In your opinion, why was the turnover rate among management trainees in Dunkin’ Donuts’ centralized program so high? A decentralized approach to training managers and hourly employees of Dunkin Donuts and Domino Pizza has various strengths and weaknesses. Some of the strengths of decentralized training to training managers are that decentralized training program provide the managers with both theoretical and important practical skills. The managers are able to put into practice what is required by corporate through on the job training. They are also bale to develop interpersonal skills by working effectively with others during their training and evaluating are things are done and run and how decisions are made. Similarly as they are often trained by experienced store managers or franchise owners they get to have an ongoing experience of how a store operates and how to deal with employees they will be managing (Ivancevich, 2010). For Dunkin Donuts, a decentralized approach to training proved efficient and less costly by dropping training costs from $418,000 to $172,000 (Case study, n.d.). It also...
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...Baskin-Robbins Challenges they face as a corporation Baskin-Robbins: The Challenge of Relevance Baskin-Robbins is a global chain of ice cream parlors founded by Burt Baskin and Irv Robbins in 1945, in Glendale, California. It claims to be the world’s largest ice cream franchise, [2] with more than 5,800 locations, 2,800 of which are located in the United States. Baskin-Robbins is located all over the world, selling ice cream in over 30 countries including Canada, The United Kingdom, Egypt, Australia, South Korea and India. Yet in such a diverse corporation the household name of Baskin-Robbins is slowly beginning to fade. The Baskin-Robbins ice cream parlors started as separate ventures from Burt Baskin and Irv Robbins, owning Burt's Ice Cream Shop and Snowbird Ice Cream respectively. Snowbird Ice Cream featured 21 flavors, a novel concept for the time. When the separate companies merged in 1953, this concept grew to 31 flavors. [3] Baskin-Robbins is known for its “31 flavors” slogan. The idea of having 31 flavors came from the Carson-Roberts advertising agency (which later Ogilvy & Mather) in 1953, along the slogan “Count the Flavors”, “Where flavor counts.” 31 was also more than the 28 flavors then famously offered at Howard Johnson’s restaurants. [citation?] Burt and Irv also believed that people should be able to sample flavors until they found one they wanted to buy-hence the iconic small pink spoon. During a now famous promotion, Amy Boggioni led a group...
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...A decentralized approach to training managers and hourly employees of Dunkin Donuts and Domino Pizza has various strengths and weaknesses. Some of the strengths of decentralized training to training managers are that decentralized training program provide the managers with both theoretical and important practical skills. The managers are able to put into practice what is required by corporate through on the job training. They are also bale to develop interpersonal skills by working effectively with others during their training and evaluating are things are done and run and how decisions are made. Similarly as they are often trained by experienced store managers or franchise owners they get to have an ongoing experience of how a store operates and how to deal with employees they will be managing (Ivancevich, 2010). For Dunkin Donuts, a decentralized approach to training proved efficient and less costly by dropping training costs from $418,000 to $172,000 (Case study, n.d.). It also creates realistic job expectations by putting in view what the role of the manger trainee will be in the business. Drawbacks to a decentralized approach to training of managers include: Inconsistency, costly, quality of instructor and important regulatory component in training. Decentralization of training often result to inconsistency in training as different regions though use the same materials may employ different approaches of passing across the knowledge to management trainees. This implies...
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...HRM – Essay Dunkin’ Donuts and Domino’s Pizza: Training for Quality and Hustle ANSWER TO QUESTIONS Q 1. What are the strengths and shortcomings of a decentralized approach to training managers and hourly employees? Discuss A 1. Strengths to train hourly employees: On-the job training is provided which give them more practical knowledge They can earn while they learn Performance standards are demanding so their training makes them more tough to handle work load Video cassettes and posters are provided by corporate staff so that they can learn through those videos and apply that in their jobs Shortcomings to train hourly employees: Constant monitoring is not done by corporate staff due to which franchisee owners can skip some training sessions On-the job training means employees are not aware of their corporate headquarters working. Employees should see how their corporate staff actually works They are trained by store managers; therefore, they are bounded only to store operations. Their career will be bounded only up to restaurant operations. Strengths to train Management trainees: Their training program provides them with practical as well as theoretical knowledge They are trained in corporate, therefore, they are aware of how corporate headquarters actually work which will sharpen their skills They have been trained by experienced store managers which give them skills to handle workload as well as they come to know about different...
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...Krispy Kreme Case Study: Adapting to the Changing Needs of Consumers By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson Table of Contents Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ....................................................................................................................................... 4 External Environment Analysis ........................................................................................................... 6 General Environment ................................................................................................................................ 6 Industry Environment ............................................................................................................................. 10 Competitive Environment ....................................................................................................................... 12 Internal Environment Analysis .......................................................................................................... 17 Peformance...
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...begin of company’s fall off. With the SWOT analysis, the strength for Krispy Kreme’s could be the strong company’s brand recognized. It is a popular brand in the U.S. and even other countries. They have their own SCM system to its franchise and company stores. The weakness is although they need to start expression, not as the strategy they were used. The opportunity should be set up new expression strategies to fit its situation. And the threat cloud be the existing firm such as its main competitor Dunkin Donuts. * Recommendations: For my recommendation, I suggest Krispy Kreme focus on two parts, firstly, diversified operation in its own store. Secondly, find more opportunities oversea. Compare to its main competitor Dunkin Donuts, they are not only serve doughnuts in breakfast. Therefore, Krispy Kreme also can serve something other than doughnuts with breakfast menu even launch and late night menu. Krispy Kreme already opened lots of oversea stores, but compare to Dunkin...
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...Dunkin Donuts is the MNE that I choose. Dunkin Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts. It was founded in 1950 by William Rosenberg in Quincy, Massachusetts. Its logo is two D's side by side in orange and hot pink. Dunkin' Donuts has opened more than 10,000 locations in 32 countries worldwide, which include more than 6,700 Dunkin’ Donuts locations throughout the United States and more than 3000 international locations. This figure compares with the 17,009 stores of coffee chain Starbucks, whose baked goods are usually prepared out of shop. Nearly all of Dunkin' Donuts locations are franchisee owned and operated. Only 77 franchisees exist west of the Mississippi River, mostly in Iowa, Arizona, Nevada, New Mexico. Within its Northeast home base, however, Dunkin' Donuts is particularly dominant and can be found in many gas stations, supermarkets, mall and airport food courts, and Wal-Mart stores. Outsourcing Human Resource Functions Many of the human resource functions are quite complicated. Small firms and those new to international business do not have the in-house capability to provide many services that internationalization requires and are compelled to contract them out to specialize outside vendors. To cut costs, increase efficiency, and focus on core competencies, many firms outsource nonstrategic human resource functions. Some functions, such as tax planning and preparation, have long been provided by outside...
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...Dunkin Donuts enter to Taiwan’s Market Content I. Introduction II. Body Dunkin Donuts background and history Dunkin Donuts enter to Taiwan Market Dunkin Donuts facing the biggest issue Dunkin Donuts Locking the strategy III. Conclusion Introduction: Dunkin Donuts is one of the biggest donuts and coffee shop around the United States. A lot of people in the States would purchase from Dunkin every single morning, because it faster with low prices. However, Dunkin Donuts are not successful in Taiwanese market. The store has been enter to Taiwan’s market twice but also leave the market , This research paper we would discussion why Dunkin Donut is successful in United States market but no the market in Taiwan. Dunkin Donuts background and history: Dunkin Donuts was established in Boston at 1950 and Bill Rosenberg was founder. The name of “Dunkin Donuts” has a really meaningful meaning on the back. In the early century, people think the best way to joy the donuts is to “Dunk” into the coffee. That the reason that Bill Rosenberg names the store as “Dunkin Donuts”, however Dunkin Donuts is not the first name that Rosenberg picked. According to Dunkin Donuts then and now, Molishever mention that “In 1948 he opened his first shop selling only these products. Originally called the "Open Kettle," the name was changed to Dunkin' Donuts in 1950. Located on a highway just outside Boston, it capitalized on another trend that Rosenberg had spotted-more and more...
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...franchise 1) n. a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license, or corporate existence. 2) n. the right to vote in a public election. 3) v. to grant (for a periodic fee or share of profits) the right to operate a business or sell goods or services under a brand or chain name. Well-known franchise operations include McDonald's, Holiday Inns, Ace Hardware, Rexall Drug Stores, and Amway Distributors. 4) n. the right one has to operate a store or sell goods or services under a franchise agreement, as in "we have the Taco Bell franchise in our town." 5) adj. referring to a "franchise tax" which is placed on businesses (especially corporations) for the right to conduct business, as distinguished from a tax on property, income or profits tax. Source: http://legal-dictionary.thefreedictionary.com/Franchise+system According to Steven C. Michael Franchising, in which independent businesses operate under a shared trademark using a common production process, is used primarily by service businesses. It is an enduring and pervasive organisational form. As an organisational form, franchising has a large and visible presence in consumer industries such as restaurants, lodging, auto repair, real estate, hair styling, and specialty retailing, where it has captured typically thirty to forty percent of sales. Business services in which franchising is prominent include temporary...
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...Section I—SIC and NAICS Codes The Standard Industrial Classification (SIC) is a system for classifying industries by a four digit code. The Security and Exchange Commission (SEC) uses SIC codes when sorting company filings. Companies that operate in a certain industry use a specific SIC code when filing with the SEC so that the type of business is properly identified. Identifying government contracts by their SIC description. The SIC system arrays the economy into 11 divisions, that are divided into 83 2-digit major groups, that are further subdivided into 416 3-digit industry groups, and finally disaggregated into 1,005 4-digit industries. While certain governmental departments and agencies, such as the SEC, still use the SIC, it is being replaced by the six-digit North American Industry Classification System (NAICS code). The NAICS is a 2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the code is part of a series of progressively narrower categories, and the more digits in the code signify greater classification detail. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry. Section II—Game Theory and Hypothesis 2a In the set-up to Hypothesis 2a, the authors discuss the notion that players learn from past experiences and have a perfect...
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...Krispy Kreme Doughnuts Teaching Note Background Krispy Kreme (KKD) has achieved spectacular growth in the last few years using an area developer model to expand geographically. This case examines the factors that have driven its growth and their sustainability in the coming two years. Students are provided with forecasts made by financial analysts at CIBC. They are then asked to identify and evaluate the assumptions underlying these earnings forecasts. Since the CIBC report does not provide a forecasted balance sheet for KKD, the case can be used to let students learn how to build a forecasted balance sheet. Finally, the case can be used to discuss potential conflicts of interest between analysts and investors that might lead analysts to over-sell a growth firm such as KKD. Questions: 1. Analysts are predicting that Krispy Kreme will be able to perform highly effectively and continue to grow rapidly in the coming two years. Do you agree with their analysis? If so, why? If not, why not? 2. What factors did the CIBC analysts examine to forecast sales growth for KKD in the years ended January 2003 and 2004? What assumptions did they implicitly make about number of new stores and weekly sales per store (for both company and franchise stores)? What are their implicit assumptions about revenue growth from franchise operations and KKM&D? Do you agree with these forecasts? 3. What are the NOPAT margins that the CIBC analysts have forecasted for KKD for the years...
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...Final Strategic Plan Bus/475 Integrated Business Topic Final Strategic Plan The strategic objective of Dunkin Donuts is to constantly fuel the growth of the franchise by continually trying to engage and attract potential new customers – while keeping current customers loyal. To meet these strategic objectives, Dunking Donuts must compile date and complete a balanced scorecard. According to Pearce and Robison (2009), a balanced scorecard measures a company’s financial performance, customer knowledge, internal business processes, learning, and growth to strategize to plan to meet company goals. The date compiled will be analyzed to measure process performance, productivity improvements, operations metric, employee satisfaction, employee turnover and retention, evaluate the level of organizational capacity, discover the nature of the organizational culture, and research the technological innovation of the company. Process or Internal Operations Perspective 1. Measure of process performance. A. Measure every employees’ performance including store managers and supervisors B. Look at the least productive stores and compare them to more profitable stores. Observe what the least productive store may be doing different from the more productive store. Implement those differences and observe if they work to better the store. C. The productive stores should be analyzed to determine where deficiencies lie and fix it. D. Observe how the current process can be made better...
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...Kingdom 3. Australia 4. New Zealand 5. Mexico 6. Japan 7. Spain 8. Taiwan 9. China 10. Germany The criteria and questions used to compose the list of viable countries for Krispy Kreme to enter were: 1. Does the product and experience associated with product have a potential place in the new market? 2. Country of Origin Effects – Krispy Kreme should follow in the footsteps of McDonalds, Starbucks, and Coca Cola. 3. Ease in overcoming Cultural/Language Barriers 4. Transportation costs – it will be easier for Krispy Kreme to ship its doughnut mix from the US to Canada than to ship from US to Australia 5. Untapped potential in new market 2. Visit their website and critique their approach to marketing their franchises. Also, visit Dunkin' Donuts' website. KrispyKreme.com did not contain much information to critique the marketing of franchises. According to their web site, all franchising within the United States is handled by “Area Developers”. Outside of the U.S., individuals may contact Krispy Kreme headquarters for starting a franchise. The web site provides a product listing and information about Krispy Kreme's products and promotions (such as a Krispy Kreme card and fundraising information. According to the case, Krispy Kreme relies mainly on free media coverage for much of its marketing effort. Krispy Kreme also promotes it's product by giving away free doughnuts in marketing drives...
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...Off-premise sales constitute doughnut sales to supermarkets, gas stations, etc. • Royalties from franchisees (3% royalty, 57 stores) and area developers (4.5% royalty, 120 stores) • Sales of doughnut mixes and doughnut-making equipment to franchisees and area developers through Krispy Kreme Manufacturing and Distribution (KKM&D) commissaries Industry and Competition: Krispy Kreme serves primarily in the doughnut industry (a subset of SIC Code 5812). It’s a highly fragmented industry characterized by low-volume outlets with undifferentiated product quality. Krispy Kreme competes primarily on its quality, brand and unique way of manufacturing and selling doughnuts on-premise. Its competitors include nation-wide companies, like Dunkin’ Donuts and AFC Enterprises [AFCE] (Cinnabon, Seattle’s Best Coffee, Popeye’s), and many regional companies. A secondary market is the packaged doughnut market (a subset of SIC Code 2051). Krispy Kreme’s secondary market is a result of its off-premise sales, which are used to extend its brand equity and sales in supermarkets. Competitors include Interstate Bakeries [IBC] (Hostess, Dolly Madison, Drake), McKee Foods (Little Debbie), and Tasty Baking (Dutch Mill, Tastykake). Growth strategy: Primarily plans to grow through new store expansion by area developers (particularly in markets over 100,000 households) and by acquiring equity positions in selected franchisee businesses. Area developers’ have contractual obligation to open 200 stores...
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...Krispy Kreme case demonstrates the downfall of a franchise based donut maker, Krispy Kreme. Krispy Kreme is an example of a franchise-gone-wrong. The Krispy Kreme craze in the early 2000s drove millions of customers to stores, waiting in line for the cherished fresh glazed delicacies. As a result of the demand, the number of Krispy Kreme franchises exploded, with new entrepreneurs trying to enter in the market. New stores emerged in 400 locations all over the country and the world, and the Krispy donut that enjoyed a large fan base in the South soon had customers in New York, LA, Seattle, Las Vegas, and almost everywhere else. However, the rapid growth became a problem for Krispy Kreme, and a few years later, the financial fallout became apparent. In order to survive the incessant pressure faced by a public company to increase earnings and shareholders value, the company succumbed to unsustainable tactics such as: 1) Become ubiquitous: The key value proposition of the Krispy Kreme donut was its exclusivity and that customers could watch the donut being prepared(donut factory). The company however started opening new stores aggressively to the extent that sales became a zero sum game of one franchisee profiting at the cost of another. This was because of allowing franchise locations that are too close in proximity. A new store may offer additional revenue to the home office, but the overall result is less profit for each individual store owner. Between 2003 and 2004, second...
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