Analysis of Dunkin Donuts Company Research Paper - 1

Analysis of Dunkin Donuts Company - Research Paper Example The franchise system acted as a profitable cooperate management strategy for the company mainly due to benefits gained from the independent restaurants (Whetten and Cameron, 2011). The franchise system has remained operational since 1950 in all Dunkin’ Donuts restaurants and it encompasses small and large business associates. However, the franchise system has faced several complaints and court issues. Franchise systems that have existed in Dunkin’ Donuts Company have benefited various foreign business people in the United States. Most of the individuals in franchise system operational under Dunkin’ Donuts network consist of Asians. It is essential to note that nearly 90 percent of all newly established Dunkin’ Donuts restaurants results from the company’s franchisees (Sniegowski, 2014). Most importantly, the growth of Dunkin’ Donuts company remains attributed to the hardworking and determined entrepreneurs that have heavily invested in company restaurant chain. Despite the immeasurable success that the company has realized from its franchise system, various problems have arisen. Dunkin’ Donuts Company plans to out-compete Starbucks, its closest revival in restaurant service by establishing new stores through the United States. However, the fundamental problem remains that Dunkin’ Donuts depends on its franchisee to establish new restaurants. Consequently, the company has decided to form a corporate strategy that would foster its growth with an aim of being at a competitive advantage in the market. According to Gluck, 2008 the company’s adopted cooperate strategy involves eliminating single-store owners while constituting multiunit franchisees that have the potential of fast growth. The cooperate strategy has resulted in various court cases between the company and its franchisees. Apparently, the cooperate strategy aimed at fast expansion favors only the multiunit chain stores.  Ã‚