Dunkin Donuts C Growth Strategy Case Solution

2. Decision problem facing and its importance

So, the company had decided to make some major changes in its strategies. For instance, some of the operations were centralized for the improved decision-making process, a new department was established to look after the newly launched shops and their development progress, the financials were all consolidated in a single balance sheet which was catered by the central divisions, more communication and ideas were shared between the top management and franchise owners to counter the problems, and the management had turned its objective from opening more new shops to focusing on improving the revenue in its current shops with better promotional marketing and with the introduction of new eateries. 

3. Criteria for Evaluation

Rosenberg had proposed different opportunities for the successful expansion. But it is important that each alternative should be evaluated based on costs involved, how much time would be required to achieve the targets needed and will that be a longer term solution.

4. Options and their evaluations 

Firstly, should the new shops opened would be operated and possessed by the company itself or would rather operate as franchises. Dunkin wanted to open the new shops at an accelerating rate to counter the competitive stresses imposed by Mister Donut. If the stores were company-owned, these could be looked after quite easily, the strategies could be implemented much effectively, novel products or pilot runs could be done effortlessly, and fewer legal issues were faced as compared to operating a franchise. However, there were some implications too, like higher bank financing required for the projects and other expansions. There were also problems of employees leaving the company too early and demotivation amongst existing workers as internal promotions were quite limited. Also, the financial objectives were not yet met by these shops as they were in the initial stages of their development.