IV.

INTERNAL ANALYSIS

COMPANY’S MISSION, VISION

VISION

A company’s vision statement shows what the company strives for in the future. Every
decision made in the present revolves around that determination to see the vision statement come
in to reality. Dunkin Donuts’ vision statement says, “To be always the desired place for great
coffee beverages and delicious complementary donuts & bakery products to enjoy with family
and friends.”

Parameters Y/N Explanation

Does it clearly answer the It only stated its desire to be consistent in being
question: What do we want NO the one stop shop for donuts and coffee
to become? beverages.
Is it concise enough yet YES It stated what it wants to be in a concise manner
inspirational? that is easily understood
It merely wants consistency in maintaining its
Is it aspirational? NO position as the place desired by people for its
products
Does it give clear indication It did not specify any exact nor approximate date
as to when it should be NO on when to materialize such goal, nor did it
attained? mention the future

Table 4.1 Vision Analysis Matrix

MISSION
 A mission statement defines what an organization is, why it exists, its reason for being.
At a minimum, your mission statement should define who your primary customers are, identify
the products and services you produce, and describe the geographical location in which you
operate. Dunkin’ Donuts’ mission statement states: “To be the leading provider of the wide
range delicious beverages & baked product around the nation in a convenient, relaxed,
friendly environment, that insures the highest level of quality product and best value for
money.”

PARAMETERS YES/NO EXPLANATION

Its mission to be the leading provider can only be attained through
Markets YES expansion and ensuring the quality of their products, and the affordability
which clearly is stated on their mission statement
Its marketing strategy solely relies on T.V advertisements, and has not
Technology NO evolved through using mobile applications for smartphones and tablets
Concern for survival, It deals with the expansion of its products to allow for more choices to the
growth and profitability YES consumers which naturally affects growth and profitability
Philosophy YES It’s an organization that strives to satisfy its customers’ wants and need
whilst meeting the organization’s goals
Its focus providing more choices of products to the consumers fills this
Self-concept YES role. While it doesn’t specifically cater to one product only such as donuts,
it aims to widen the choices in terms of all its products
Concern for public YES Its focus on the idea of public satisfaction through the improvement of its
image services and atmosphere
Concern for employees NO It puts more stress unto the employees in providing a better experience to
the consumers
Concern for nation YES It stresses that its working environment is friendly that will cater to each
and every consumer, which results to a happier environment

Table 4.2 Mission Analysis Matrix

REVISED VISION AND MISSION

VISION

“By 2020, we envision to be the leading provider of quality & affordable coffee beverages,
doughnuts and bakery products to enjoy with family and friends”
 The aforementioned revised vision addresses when the goal is to be attained, what
specific FUTURE goal is to be attained in a clear and concise manner that is easily
understandable. Before the revision, as already addressed on the table provided, it lacked details
as to when the goal is to be achieved and what specific goal is to be achieved. The goal must be
prospective and one that is currently not attained. It is called a goal for a reason; the former
vision merely stresses the need to be consistent with its services. The revised vision is more
straightforward as it goes directly in to the point on what it wants to achieve and when it is
projected to be achieved.

MISSION

“To be the leading provider of the wide range delicious beverages & baked product around
the nation in a convenient, relaxed, friendly environment. With the help of technology, that
ensures the accessibility of consumers and that of which insures the highest level of quality
product by ensuring the employees are in a likeable working environment and products
that are best value for money.”

The revised mission quickly addresses two main issues from the old mission, the usage of
technology and the concern for employees. The former is important to be had by companies
solely because of the fact that we are living in the 21st century, and that technology is a big part
of our lives. It has shaped our civilization more than we can ever imagine. By utilizing such, a
company will only have positive effects and no negative effects from such. And the latter, one
question should be asked: “How will the employees do their best work if they aren’t working in
an environment that they don’t like?” hence the revised mission fixes this by ensuring that the
environment on which the employees work in is likeable.

CORE VALUES

(with acknowledgment to Founder, William Rosenberg)

We…

● Embrace the truth about oneself and the world

● Demonstrate openness and vulnerability
 ● Acknowledge own mistakes and commit to learning
● Honor the dignity, inclusion, and diversity of others
● Do what is right based on common principles

Dunkin' Donuts
History

William Rosenberg opened Open Kettle in 1948, a restaurant selling donuts and coffee
in Quincy, Massachusetts, but he changed the name in 1950 to Dunkin' Donuts after discussing
with company executives. He conceived the idea for the restaurant after his experiences selling
food in factories and at construction sites, where donuts and coffee were the two most popular
items. The restaurant was successful, and Rosenberg sold franchises to others starting in 1955.

In 1963, Rosenberg’s son Robert became CEO of the company at age 25, and Dunkin’
Donuts opened its hundredth location that year. Dunkin' Donuts was a subsidiary of Universal
Food Systems at the time, a conglomerate of 10 small food-service businesses, and Dunkin'
Donuts locations varied greatly in their menu options, with some selling full breakfasts and
others serving only donuts and coffee.

In the following years, the other businesses in the Universal Food Systems portfolio were
sold or closed, and the company was renamed to Dunkin' Donuts. The menu and shop format
were standardized, and various new menu items were introduced. The chain was acquired
by Baskin-Robbins owner Allied Lyonsin 1990. By 1998, the brand had grown to 2,500
locations worldwide with $2 billion in annual sales.

In the Philippines, operated by Golden Donuts Inc., the first Dunkin Donuts Franchise
store opened in Quad Car Park, which is now Park Square, in Makati in 1981.

It then started opening more Dunkin Donuts shops all over Metro Manila, from dine-in
shops to take-out booths, becoming a popular brand of “pasalubong” in the Philippines.

Dunkin Donuts currently serves a variety of donuts, sandwiches and drinks.  Their
premium donuts include the “Oatmeal, Raisin, and Cranberry”, Kreme Berry Caramel, Supreme
Rocky Road, Choco Butter Crunch, Dark Choco Berry, etc.  Their Classic Donuts include Sugar
Raised, Strawberry Kreme, Strawberry Filled, Bavarian Filled, etc.

DISTINCTIVE COMPETENCY OF DUNKIN’ DONUTS

Dunkin’ Donuts distinctive competence are coffee and baked goods. The core
competence is their customer loyalty. Core competence “ represents the most proficiently
performed internal activity that is central to the firm's strategy and competitiveness. Core
competencies are based in knowledge and people, not capital and assets”. The Dunkin’ Donuts
Brands Values and Guiding Principles as mentioned above are Honesty, Transperancy. Humility,
Integrity, Respectfulness, Fairness, Responsibility, Leadership, Innovation, Execution. Their
values and mission statement help shape planning because they support their community. They
have a community foundation called “The Dunkin' Donuts & Baskin-Robbins Community
Foundation.” This foundation focuses on helping hunger, health and safety in their community
and the children. An Internal factor that may influence the business in the future is the internal
staff treatment. Other major brand’s like Coffee bean and Starbuck’s are know for their pleasant
baristas so Dunkin Donut’s need to insure their employees are also taken care of. This will help
with customer satisfaction. Another external factor is their breakfast menu and offering healthy
option.

MANAGEMENT

Organizational Culture

An organizational culture is a system of shared meaning held by members that

distinguishes the organization from other organizations. It is further elaborated that this system is
actually a collection of valued characteristics found prevalent in an organization. The Dunkin’
brand serve as networks that increase cultural awareness, provide career development
opportunities, and provide a conduit to communities allowing them to demonstrate their
commitment to diversify their work groups. The Dunkin’ brand among other companies
promotes equal pay in which women make up 50% of their workforce. Apart from this, they
ensure that all their employees are paid fairly for the work they produce. In a report made in
2016, they made a public commitment to develop and pay women equally. Community is at the
heart of the Dunkin’ brands, they are focused on creating a community amongst their employees
where they can learn, grow and follow their passions. To this date, the Dunkin’ brand have
earned 100% on the 2019 Human Rights Campaign Corporate Equality Index for LGBTQ-
inclusive workplace policies and practices

HUMAN RESOURCE

Diversity is an integral part of what makes the Dunkin’ brand what it is today. The
Dunkin’ brand is committed to improve the diversity of their employees regardless of their
characteristic and such in a way that fosters an inclusive environment for all who come in contact
with the brand. They strive to welcome diverse employees to their teams and to weave inclusion
into the fabric of their culture. Their leaders and employees alike foster an environment where
everyone is valued and respected; everyone matters in the Dunkin’ brand. This is principle
alone is what makes Dunkin’ successful in being organized and their present and prospective
employees motivated.

OPERATIONS AND PRODUCTION

Like any other restaurant establishments, the Dunkin’ brand strives to maintain good
condition on all their equipments, facilities, machinery, and offices. However, this
“conditioning” so to say isn’t really upheld here on the different branches of Dunkin’ Donuts in
the Philippines. Throughout the years, there has been a lot of negative feedback about the
conditioning of the facilities of the different branches which is seldom addressed by the staff.
 Dunkin’ brand here in the Philippines has many private suppliers in which can be
identified as reliable & reasonable as they are handpicked by the Dunkin’ brand itself. In other
words, it can be inferred that those picked by the Dunkin’ brand here in the Philippines are a
viable option and trustworthy at the same time. This is an effective way of making sure that you
have the most trustworthy suppliers as you conduct research and the opportunity to analyze them
firsthand.

MARKETING

The Dunkin’ brand way of being effective in their market segmentation focuses mainly
on the geographic and the demographic. In such a way that in the former, they position their
establishments well in which its location will most likely attract consumers. And the latter, in
such a way that the quality and price of the products will cater to almost every consumer out
there. These two are very important aspects on effective marketing as it gives companies a bird’s
a view on how they can maximize profit on many different aspects. The Dunkin’ brand has been
utilizing this since their early days hence their success on attracting consumers both old and new
to avail of their delicious products. They establish shops on many crucial locations, such as gas
stations, near waiting sheds, near school campuses, and others. Doughnuts go together with
grocery stores, general stores, breakfast food trucks and carts, gas stations, office meeting rooms,
corporate kitchens, break rooms, coffee shops, teacher lounges, waiting areas, family homes,
shared apartments, road trip vehicles, and more.

RESEARCH AND DEVELOPMENT

The primary, and most critical, problem area of the Dunkin’ brand is the lack of a
cohesive marketing structure within or a strategic marketing plan for the organization. Flawed or
absent marketing research has resulted in store closings and or expansions that were not backed
up by market data or evidence that this investment would be feasible. But the company — which
generated some $829 million in sales last year — is putting a good deal of effort into inventing
new products and making it easier for customers to order them. Current innovations include
everything from a mobile-ordering app to many more different products. It also includes a flood
of new projects aimed at making Dunkin' more tech-focused. The company is also working on a
system that would allow customers to purchase items via social media — potentially similar to
what Domino's Pizza has done with Twitter.

MANAGEMENT INFORMATION SYSTEM

The Audit Committee is the one responsible in maintaining and keeping the company’s
financial reports, internal control systems, internal and external audit processes. It is the one
responsible that the company is following laws, rules, and regulations. It also assesses the
integrity, independence and effectiveness of the external auditors. The audited consolidated
financial statements, together with Statement of Management’s Responsibility and Auditors’
Report, and supplementary schedules are attached and filed herewith. The consolidated financial
statements have been prepared in compliance with the Philippine Financial Reporting Standards
(PFRS), on the historical cost basis except for the measurement of certain financial assets and
liabilities. The preparation of the consolidated financial statements in compliance with PFRS
requires management to make judgments, estimates and assumptions that affect the amounts
reported in the financial statements and related notes. The estimation and judgments are based
upon management’s evaluation of relevant facts and circumstances of the financial statements.
Actual results may ultimately vary from those estimates.

Table 4.3 Liquidity Analysis Ratio of Golden Donuts Inc., 2016-2017

Analysis:
 Liquidity ratios are an important class of financial metrics used to determine a debtor's
ability to pay off current debt obligations without raising external capital. Liquidity ratios
measure a company's ability to pay debt obligations and its margin of safety through the
calculation of metrics including the current ratio, quick ratio, and operating cash flow ratio. For
example, internal analysis regarding liquidity ratios involves using multiple accounting periods
that are reported using the same accounting methods. Comparing previous time periods to
current operations allows analysts to track changes in the business. In general, a higher liquidity
ratio shows a company is more liquid and has better coverage of outstanding debts.

Alternatively, external analysis involves comparing the liquidity ratios of one company to
another or an entire industry. This information is useful to compare the company's strategic
positioning in relation to its competitors when establishing benchmark goals. Liquidity ratio
analysis may not be as effective when looking across industries as various businesses require
different financing structures. Liquidity ratio analysis is less effective for comparing businesses
of different sizes in different geographical locations. A liquidity crisis can arise even at healthy
companies if circumstances arise that make it difficult for them to meet short-term obligations
such as repaying their loans and paying their employees. The best example of such a far-reaching
liquidity catastrophe in recent memory is the global credit crunch of 2007-09. Commercial paper
—short-term debt that is issued by large companies to finance current assets and pay off current
liabilities—played a central role in this financial crisis.

Table 4.4 Leverage Analysis Ratio of Golden Donuts Inc., 2016-2017

Analysis:
 A leverage ratio is any one of several financial measurements that look at how much
capital comes in the form of debt (loans) or assesses the ability of a company to meet its financial
obligations. The leverage ratio category is important because companies rely on a mixture of
equity and debt to finance their operations and knowing the amount of debt held by a company is
useful in evaluating whether it can pay its debts off as they come due. Several common leverage
ratios will be discussed below. Too much debt can be dangerous for a company and its investors.
However, if a company's operations can generate a higher rate of return than the interest rate on its loans,
then the debt is helping to fuel growth in profits. Nonetheless, uncontrolled debt levels can lead to credit
downgrades or worse. On the other hand, too few debts can also raise questions. A reluctance or inability
to borrow may be a sign that operating margins are simply too tight. There are several different
specific ratios that may be categorized as a leverage ratio, but the main factors considered are
debt, equity, assets, and interest expenses. A leverage ratio may also be used to measure a
company's mix of operating expenses to get an idea of how changes in output will affect
operating income. Fixed and variable costs are the two types of operating costs; depending on the
company and the industry, the mix will differ. Finally, the consumer leverage ratio refers to the
level of consumer debt as compared to disposable income and is used in economic analysis and
by policymakers.
 Table 4.5 Profitability Analysis Ratio of Golden Donuts Inc., 2016-2017

Analysis:

Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings relative to its revenue, operating costs, balance sheet assets, and
shareholders' equity over time, using data from a specific point in time. For most profitability
ratios, having a higher value relative to a competitor's ratio or relative to the same ratio from a previous
period indicates that the company is doing well. Ratios are most informative and useful when used to
compare a subject company to other, similar companies, the company's own history, or average ratios for
the company's industry.

For example, gross profit margin is one of the most often-used profitably or margin
ratios. Some industries experience seasonality in their operations, such as the retail industry.
Retailers typically experience significantly higher revenues and earnings during the year-end
holiday season. It would not be useful to compare a retailer's fourth-quarter gross profit margin
with its first-quarter gross profit margin because it would not reveal directly comparable
information. Comparing a retailer's fourth-quarter profit margin with its fourth-quarter profit
margin from the same period a year before would be far more informative.

Margin Ratios: Profit Margin

Different profit margins are used to measure a company's profitability at various cost
levels, including gross margin, operating margin, pretax margin, and net profit margin. The
margins shrink as layers of additional costs are taken into consideration, such as the cost of
goods sold (COGS), operating and nonoperating expenses, and taxes paid. Gross margin
measures how much a company can mark up sales above COGS. Operating margin is the
percentage of sales left after covering additional operating expenses. The pretax margin shows a
company's profitability after further accounting for non-operating expenses. Net profit margin
concerns a company's ability to generate earnings after taxes.

Return Ratios: Return on Assets

Profitability is assessed relative to costs and expenses, and it is analyzed in comparison to

assets to see how effective a company is in deploying assets to generate sales and eventually
profits. The term return in the ROA ratio customarily refers to net profit or net income, the
amount of earnings from sales after all costs, expenses, and taxes. The more assets a company
has amassed, the more sales and potentially more profits the company may generate. As
economies of scale help lower costs and improve margins, returns may grow at a faster rate than
assets, ultimately increasing return on assets.

Return Ratios: Return on Equity

ROE is a ratio that concerns a company's equity holders the most since it measures their
ability to earn a return on their equity investments. ROE may increase dramatically without any
equity addition when it can simply benefit from a higher return helped by a larger asset base. As
a company increases its asset size and generates a better return with higher margins, equity
holders can retain much of the return growth when additional assets are the result of debt use.

INTERNAL FACTOR EVALUATION

(IFE)
Weigh Rating Weighted
Key Internal Factors
t Score
There has been customer loyalty throughout the years 0.12 4 0.48
because of how long Dunkin’ Donuts has been
operating and serving customers
The brand name “Dunkin’ Donut” is well renowned 0.08 3 0.24
not only nationwide but worldwide
Dunkin’ Donuts is well versed in the industry in 0.04 3 0.12
making the most delicious and enticing products
The product variety is huge which gives consumers 0.12 4 0.48
more options to choose from
Traditional product w/ universal and cultural appeal 0.08 2 0.16
The use of effective advertisements which entices 0.09 3 0.27
consumers to avail of their products
Total (STRENGTHS) 1.75
Lack in the utilization of technology which hinders 0.09 3 0.27
 progress in general
Lack of promotions to entice consumers to avail 0.13 2 0.26
more than what they can afford
Lack of ease of access such as drive thru, kiosks, and 0.09 2 0.18
others
Establishments or branches are small compared to its 0.11 3 0.33
competitors
Delayed expansions due to poor franchise relations 0.05 2 0.1

Total (WEAKNESSES) 1.14

Total 1 31 2.89
Table 4.6 IFE of Dunkin’ Donuts

Analysis:

Based on the table above, it can be seen that the Dunkin’ brand is currently in good

condition as its strengths weighted more points than that of its weaknesses. The former having

accumulated a score of 1.75 and the latter a score of 1.14. The difference between the scores of

both the former and the latter is not far, hence, the Dunkin’ brand shouldn’t be too complaisant

in dealing with its day-to-day operations. Rather than maintaining its current strengths, it should

look more into improving and evolving at the same time. Because as time goes by, things

drastically change and at any given moment, the above table might shift in favor of the

weaknesses if the Dunkin’ brand is not careful. They must be ready to adapt to the changes of the

economy, as any company should.

The strengths section allows the company to consider its competitive advantages in the

marketplace. These advantages are typically a focal point of the company's operation and

strategic planning. They also often coincide with the way the company markets. For instance,

companies that have strengths related to manufacturing and production quality often promote
themselves as high-quality brands. The weakness section shows what strategies or regulations

implemented in the company that weakens its operation. Its analysis on how the company will

approach such weaknesses it’s either to improve or restrict the company on doing it. The purpose

of this matrix is to enumerate and identify the strengths and weaknesses of a certain company,

through which the same will be used to capitalize its opportunities and threats.