Dunkin' Donuts Change Management
Dunkin' Donuts Change Management
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Organizational Behavior and Change Management
Table of Contents
Executive Summary……………………………………………………………………………….3
Introduction 4
Research Methodology……………………………………………………………………………4
Organizational Background……………………………………………………………………….7
Analysis of Vision, Mission and Value Statement………………………………………………10
Organizational Structure 12
Culture Analysis………………………………………………………………………………….15
Change Plan……………………………………………………………………………………...19
Recommendations………………………………………………………………………………..23
Conclusion 24
Bibliography 25
Appendix…………………………………………………………………………………………26
Executive Summary
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Organizational Behavior and Change Management
Organizations are considered to be the most incentive, social arrangement of today. It’s
considered a marvel to know that thousands of people with individual backgrounds, skills and
interests are coordinated into various organizations, so that they can pursue their common
institutionalized goals and objectives. The historians of the future see today’s organizations as
Organizational behavior and culture is actually the personality of the organization and
and the different behaviors and attitudes of the organization’s employees towards their co-
workers and their work activities. The culture of an organization is actually the perception which
is held by the employees of the company, in other words the culture is considered to be a system
of shared meaning. It must be remembered that the culture of the organization is sensed and not
seen and hence the employees and the members of the organization soon learn and realize about
it. For example the culture of a large profit making company is quite different from that
organization that is a non-profit making organization and one from an educational institution. A
person can tell about the culture of a company by looking at the furniture or the way people dress
etc. Organizational culture is one of those things that can be sensed and the members of the
Introduction
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Organizational Behavior and Change Management
This paper is based on organizational behavior and change management. This paper shall
be focusing on the organization’s background; it will conduct an analysis of the mission, vision
and value statement of the company. The paper shall be conducting cultural analysis, i.e. how a
company goes through a change in its culture. The paper shall be focusing on the organizational
structure and finally it will conduct a change plan for the company. The company that has been
Research Methodology
marketing research but in a systematic and organized design, which can help the company in
facing a specific situation or a problem. Effective marketing research is based on five steps
define the problem and objectives of the research, developing the plan for the research, collecting
information for the research, analyzing the information which is collected and finally present the
findings so that it helps the marketers and mangers make the right decision. (Patton, 2002)
Research Method
The most common method of obtaining information about behaviors, attitudes and other
characteristics is to ask from people directly. Therefore the research method that is going to
Questionnaires: questionnaires will also be used because they will help the individuals to
answer those questions which they might be not able to answer when asked directly.
In – Depth interviews: are frequently used the researchers when they want detailed
information regarding an individual’s behavior attitude or needs and wants, or when the
information they receive from the questionnaires is impractical, more costly and
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Organizational Behavior and Change Management
inaccurate. Therefore applying both of these methods will make sure that information that
the researchers receive is accurate and not false plus it will help them to make the right
The sampling method is one of the ways the sample units can be selected for qualitative
research, there are five kinds of sampling methods; probability versus non-probability, single
unit versus cluster of units, un-stratified versus stratified, equal unit probability versus unequal
The method that the researchers are going to be using for the research is probability
versus non-probability. It must be remembered that the probability sample which are selected are
and purposive sample), no sample is selected on chance. From these samples the researchers are
Cluster Sample: the sampling method used in this research is probability sampling
method, in this the researcher divides the population into mutually exclusive groups (like
managers and top executives) and then the researcher draws a sample of the groups to
Quota Samples: the quota sampling is going to be based on managers and top executives,
Sample Unit
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Organizational Behavior and Change Management
The sample unit is based on the unit which contains the elements of the population, who are
going to be the sample. Since it is going to be a large scale research and this research is going to
Sample Size
The sample size for this research is going to be 250, and that size is taken keeping in
view of the nature of the research. It must be remembered that this research is being done on a
Measurement Technique
In-depth Interviews: The in-depth interviews will be one to one and the interviewer is
going to ask a numbers of questions from the interviewee to gain inside knowledge and
Questionnaires: the analysts and the managers will be provided with questionnaires to fill
out, this will provide the information about the willingness of the employees for change
The data which is going to be collected from in-depth interviews and questionnaires will
be scrutinized and analyzed to obtain the knowledge that is needed by the researchers that how
asking open-ended questions along with close-ended, so that in-depth information can be
obtained. The interview is going to be recorded and the interviewer is also going to take
notes so that the researcher can go through the information again. For example, in close-
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Organizational Behavior and Change Management
ended questions the interviewer can ask the respondent some yes and no questions and
from there he or she can tabulate the actual finding and can present it in a graphical form
Organizational Background
Dunkin’ Donuts is a very famous franchise in the world that serves coffee and baked
goods like donuts, bagels and other bakery products, that operates in the fast food industry. Bill
Rosenberg is the founder of Dunkin’ Donuts. It was in the year 1950 when Dunkin’ Donuts
opened its very first shop in Quincy, Massachusetts. The first store that he opened still stands at
543 Southern Artery Quincy, Massachusetts. The headquarters Dunkin’ Brands of Dunkin’
Donuts is situated on 130 Royall Street, Canton, Massachusetts. By 1954 Dunkin’ Donuts had
opened about 5 shops. The company licensed first of their many franchises in 1955. Today
Dunkin’ Donuts has somewhere around 7988 outlets worldwide and out of those outlets 5769 are
only in the United States and the rest 2219 are internationally based franchises and by 2025
Dunkin’ plans to open somewhere around 15000 plus coffee shops throughout the US. One of
the major competitors of Dunkin’ was Mister Donuts, which was acquired by the parent
company of Dunkin’ Donuts and is now has been re-branded as Dunkin’. Dunkin’ Donuts
Bahamas, Canada, Chile, Germany and UAE etc. The present president and chief brand officer is
Will Kussell. The organization claims that America runs on Dunkin’ and the slogan of the
Products
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Organizational Behavior and Change Management
Dunkin’ Donuts serves nearly a billion cups of rich coffee every year. The products of
Baked Goods:-
Donuts (52 flavors), Munchkins, Cookies, Brownies, Éclairs, Crullers, and Coffee
Rolls (9 flavors)
Breakfast Sandwiches:-
Egg & Cheese, Supreme Omelet and Ham & Cheese etc.
Coffee
Bulk Coffee, Espresso, Cappuccino & Lattes, Iced Coffee (flavors; blueberry,
hazelnut, coconut, French vanilla etc.), Iced Lattes and Turbo (Dunkin’ Donuts
2010)
Hot Beverages
Cold Beverages
Coolattas (flavors; coffee, watermelon, grape etc.), Iced Teas, and Smoothies
The organization claims that America runs on Dunkin’ and the slogan of the company is
“Something fresh is always brewin’ here”. Dunkin’ Donuts is on the franchises round the globe
that provide with food and beverages that are fresh, quick and quite affordable to their customers
who lead busy lives. The company has been serving the best quality coffee for the last 55 years
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Organizational Behavior and Change Management
or so. Dunkin’ Donuts serves nearly a billion cups of rich coffee every year to their customers
who are going for their work in the morning and they stop for a nutritious but a quick breakfast.
The mission statement of Dunkin’ Donuts is that it will work hard to be the dominant
retailer of high quality donuts, bakery products and beverages in the market in where they choose
to compete. The mission statement has helped the company to grow and develop itself and has
also helped it to come this long way that is from where it started out to be a single coffee shop to
where it is now having somewhere around 7988 outlets worldwide and out of those outlets 5769
are only in the United States and the rest 2219 are internationally based franchises and still the
The vision of Dunkin’ Donuts is to be the world’s largest coffee and baked goods chain
and to incorporate teamwork, effective communication, enjoyable work and honesty in the
company’s work force in order to get to the goals and objectives to be successful in their
mission. It basically started with keeping the customers in mind that what are their need and
preferences. Dunkin’ Donuts have added a new range of coffee in their menus while keeping the
customers in their mind. This new range of coffee is known as “Flavorology”. Dunkin’ Donuts
has realized the fact that the customers are always looking for new tastes and flavors in coffee as
they look forward for a different start for every day. And with new flavors of coffee it helps the
customer to do so rather than having the old and traditional monotonous flavors of the coffee.
The department that I work for is the Human Resource department and the role that I play
in the department is the HR officer one. The day activities for my work task are that, I have to
keep a check on the expenses, create schedules, help my supervisor with payrolls etc.
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Organizational Behavior and Change Management
It is with the help of a Mission, Vision and Value Statement that the company is able to
identify its goals and objectives. The relevance of these statements is as follows:-
Dunkin’ Donuts embraces diversity, because it operates all over the globe.
Recognizes the fact that profit is very important for the success of the company itself.
Being able to satisfy the needs, preferences and people who are connected with the
company
Playing a positive role in the society, so that the company is able to make a difference
Customer value and loyalty plays an important role in the success of the organization
The vision, mission and the value statement of the company are very well communicated
to the employees. For example, Dunkin’ Donuts also makes sure that the customers get a friendly
environment when they enter into one of their outlets. As soon as a customer’s enters into
Dunkin’ outlet, the customer comes across colorful but appealing wall paint and images, a very
well seating arrangement which gives a soothing and relaxing experience to the customer, who in
return enjoy their meal in a very friendly environment. The music is not loud when one enters in
an outlet of Dunkin’, there is no sound of kitchen and people behind the counter and the waiters
are extremely friendly and helpful. This kind of a service helps give a customer a head, who
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Organizational Behavior and Change Management
leave the restaurant refreshed and in a jolly and relaxed mood. Although these strategies help
make the customer happy, these strategies have also helped Dunkin’ Donuts to maintain both its
The vision, mission and the value statement do leave an influence behind on individual,
The mission and vision statement of the company remains essentially the same over the
long-term it basically emphasizes the fact that to become the dominant market leader in the
donuts and beverages retailing business one has to intercept the customer’s needs and
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Organizational Behavior and Change Management
The mission and vision of the company can make adjustment over the time to suit the
changing environment and the changing needs of the clients and customers of the company.
When the company is in the early stage of the strategy development process the management has
to decide upon the vision statement of the company. The vision statement is reviewed and
updated as shifts in the strategic direction of the company happen over a period of time.
(Schabracq, 2000)
Organizational Structure
Organization structure is a tool that the managers of the organization use to harness
recourses for getting things done. The structure of Dunkin’ Donuts is considered to be a
framework that shows that how the task / activities are divided among the employees and how
they are carried out, how the resources of the company are deployed and how the departments of
the organization are coordinated. The structure of the company is a set of tasks that are assigned
to the employees of the company and to the department of t Dunkin’ Donuts, the organization
structure also has formal reporting relationships within the company and it also includes
authority within the company, the responsibility of decision making, levels within the company
and the people who are considered in charge of other employees. (Schabracq, 2000)
Structure Chart
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Organizational Behavior and Change Management
Board of Directors
CEO
Team
Team Team Team
Manager
Managers Manager Manager
Organic Structure
In our case the organization (Dunkin’ Donuts) uses an organic structure; organic structure
is the horizontal structures dominate the company as in the companies that are contemporary
empowered. Here the tasks are redefined very frequently so that they are able to the needs of
both the employees and the organization (in our case Dunkin’ Donuts). Here decision making is
de-centralized and informal; authority is based on expertise of the employee rather than the
hierarchy. The tasks are shared, i.e. the company works on a team based system. The benefits of
Innovation
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Organizational Behavior and Change Management
Structure
Environment
Organic Structure
When managers use the wrong structure for the environment it reduced performance
results. A rigid mechanistic structure in an uncertain environment prevents the organization from
Return on investment
Focusing on opportunities
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Organizational Behavior and Change Management
Culture Analysis
Organizational culture is basically concerned with how the employees of the company
understand the characteristics or elements of the organization’s culture and not with if they like
the culture of the company or not. The understanding and perceiving of the culture of the
company can be defined as a descriptive term. The descriptive term basically focuses on the
differentiation of this concept from job satisfaction. A research was conducted to measure that
how the employees of the company see the organization in which they work, does the company
encourages team work or not and does it reward innovation or not. The management of the
company should keep in mind that the term organizational culture is descriptive form and
The culture that is being implemented within Dunkin’ Donuts is the learning culture
known as the ‘learning organization’. In this new era of the organization the main responsibility
of the management is to create learning capability throughout the organization. And a lot of
learning organization all the employees of the company take part in problem solving, identifying
the problems, it helps the company to experiment, improve the company’s efficiency and
increase its productivity. The learning organization’s focus is mostly based on customer
satisfaction and quality. The learning organization also emphasizes on teams and systems rather
on the hierarchy of the company to improve and maximize the company’s performance. The
managers need to go through a certain changes in order to make the learning organization a
successful one. The learning organization actually breaks down the former vertical structure of
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Organizational Behavior and Change Management
the company and it uses the most new ideas to achieve collaboration through work teams, task
forces, and horizontal linkages and through concepts such as networks etc. Teamwork is
considered more important in the learning organization rather than individual work. For example,
the teams are actually given major projects to handle like producing a product or a service. The
boss would no longer make the decisions that are; the members of the team would take the
responsibility for innovation, dealing with customers, training, and safety etc. (Luthans, 2006)
If the company is changing at a rapid pace it will lose its core values
Too much diversity due to change will create problems in the communication process
Internal Environment
Dunkin’ Donuts would need a new marketing strategy because it plans to enter into a new
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Organizational Behavior and Change Management
The company has a strategic advantage over its competitors due to its market portfolio.
External Environment
Development of new products and services which satisfy the consumer’s demand
Policies like quality standards that need to be adhere by the company, when it is
SWOT Analysis
Strengths: Strengths of the company can be defined as the positive internal characteristics
that the company can use to achieve its strategic performance goals. The company has
gained its strength from its brand recognition of ‘Dunkin’ Donuts’. ‘Dunkin’ Donuts’ is
recognized as a worldwide donut shop and it is preferred by almost everyone all over the
world. The brand name has been established successfully in 31 countries and it is
continuously growing as well. Dunkin’ Donuts also provides quality products which are
fresh and wholesome and services at reasonable prices, which again strengthens the
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Organizational Behavior and Change Management
that inhibit or restrict the organization’s performance. The weakness of Dunkin’ Donuts
comes from the inconsistent quality of food. This means that there are complaints that are
made by customers of some particular franchises that the food quality is not satisfactory.
Due to this problem the company is losing its sales along with their clientele.
external environment that has the potential to help the organizations achieve or exceed in
its strategic goals. The biggest opportunity for Dunkin’ Donuts was that when the shifted
from being an only donut shop to a donut and a coffee shop which bought in new
clientele for the company and which has help the company to increase its sales and make
profits.
Threats: Threats can be defined as characteristics of the external environment that may
prevent the organization from achieving it strategic goals. The competitor of Dunkin’
Donuts is Starbucks. Starbucks is one of the market leaders in the food industries
through their vertical integration strategies. Starbucks specializes in coffee only and it
Sometimes it happens that the organization is not able to embrace personal mastery, i.e. if
the employees of the company are empowered in an unaligned way then they can become
There are barriers which are erected by the employees towards learning (Luthans, 2006)
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Organizational Behavior and Change Management
Change Plan
When the company is changing its culture it would face some resistance from the
employees of the company. However the significant barriers and resistance to change is shown
by the employees of the company, the organizational cultures can be managed and changed
completely with time. The management of the company should have this in mind that changing
of the company’s culture takes time that it is a slow process, it cannot be changed overnight.
There are different options for change, when a company is going through a change in
The best option for change would be through global diversity. As globalization increases
diversity would also increase, as the growing number of immigrants’ increases it presents
mangers with more complex communication issues with dealing with people whose native
language is not the same as that of the vast majority of their co-worker. Creating a productive
and enjoyable work environment is the dual responsibility of human resource managers and
process that will help in an employee’s growth while it also increases the cultural sensitivity and
process, the employees teach their supervisors or mentors while they are learning from them. If
there is a diverse culture in a company, there will be a health competition between the employees
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Organizational Behavior and Change Management
and the result of that competition would be that the employees will do well in their work
activities and the company will be able to retain its employees. Acceptance of diversity is
becoming especially important because of socio-cultural changes and the changing of workforce.
Change Models
There are different change models that can be implemented by the organization to
7-S Model
The Hofstedes five dimensions of culture are used when a company is entering into a new
culture for business. For example, Dunkin’ Donuts can use this dimension of culture to gain
important insights when entering a new region. The five dimensions are as follows:-
Low vs. High Power Distance; for example, there is a high power distance in the Asian
culture; the people who have less or no power at all in the society acknowledge the power
of those who have high powers based on their positions in the firms. (Baskerville, 2003)
Individualism vs. Collectivism; when entering the Asian culture Dunkin’ Donuts must
remember that the Asian society is more inclined towards collectivism and not
individualism. They believe that their family and their cultural values come first.
Masculinity vs. Femininity; when entering the Asian culture Dunkin’ Donuts must
remember that the Asian countries are those countries in the world whose culture is
masculine. The roles of the males in the Asian society are not very fluid but are more
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Organizational Behavior and Change Management
dramatic. Dunkin’ Donuts must remember that the Asian culture is very different from
theirs because men are given more preference over the females no matter what.
Cultures like Asian countries have the highest rate of uncertainty avoidance, therefore
they expect their employees to remain with the company for a long period of time and
Long vs. Short Term Orientation: this is related with the society’s future versus past and
the present. Dunkin’ Donuts must know that the Japanese culture falls under long term
orientation, where they have a sense of shame, strongly believe in values and order
Implementing Teamwork: Teams play an important role within the organization. With the
help of work teams the organization’s productivity will increase and the performance of
the organization will improve tenfold. The use of work teams within the company
increases the company’s potential and provides a lot benefits for the company as well.
The organization and the team members are the ones who benefit from the team when it
is a success. The teams usually have a positive impact on productivity and satisfaction on
Assessment of Change: It is important that with time the change is accesses, to see that
whether it is working or not. The assessment of change can be done through the
following:-
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Organizational Behavior and Change Management
problems related with the change if the culture within the organization.
through a number of performance tests. These tests are based upon the
potential than performance and it will help the management to understand that
whether the employee has adapted to the new culture or not. (Yaeger &
Sorensen, 2009)
Recommended Options: the recommended option for change plan would be through
technology.
Benefits: the benefits are; Technological change has a huge impact on the training and
Time Period: It is going to take somewhere around 6 to 8 months for the company to
change itself.
Responsibility: It is the responsibility of the leaders within the organization, for the
implementation of change plan. The leaders of the organization would be able to create a
successful environment and they would also create a capacity for change. And help their
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Organizational Behavior and Change Management
employees to accept change. Making a difference as a leader today and in the future
requires a very different approach from the past. As the head it is the duty of leader to be
Monitoring & Evaluation: monitoring and the evaluation will be done by the HR
department. For example, there are several ways through which the goals and the
objectives of the company can be achieved; the way they are achieved is known as the
equi-finality which means that there are a lot of ways to gain the objectives. The HR
department can develop the employees in such a way that he or she is adaptable to change
Estimated Cost: The company would need to use PERT (program evaluation review
technique) along with CPM (critical path method), this will provide useful aid to the
managers for estimating the resources that would be needed for a project and clarifying
Recommendations
The management needs to train and develop its employees for the future, so that they are
The management needs be accommodative towards its employees from time to time
Empowerment of employees
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Organizational Behavior and Change Management
Conclusion
Sometimes it becomes necessary that the company has a need to change its culture so that
its performance can improve. For example the current environmental context of a company has
undergone a huge and a drastic change and the company has two options either adapts to the new
changes and conditions of the company or not to change and if the company does not change it
might not survive. It is considered important the companies in this time and age need to have a
culture that learns and that it anticipates change. It is important for the company to anticipate
change or moving towards change but it is not easy to let go of the culture and move towards a
new one. If the employees of the company are not developed for a change they would resist it
and that would decrease the efficiency of the company. Therefore it is the work of the Human
Resource department to train and develop the employees so that they are more adaptable towards
change.
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Bibliography
Baskerville, RF, Hofstede Never Studied Culture, 2003, Accounting, Organizations and Society
Driskill, G.W. & Brenton, A.L., Organizational Culture in Action: A Cultural Analysis
Workbook, 2005, Sage Publications, Inc
Dunkin’ Donuts – The Official Website, 2010, from < http://www.dunkindonuts.com/>, on 11th
March’10
David, F R., Strategic management: Concepts and cases, 2006, New York: Prentice Hall.
Graham, T, Business Strategy: Business Strategy, 2005, Butterworth-Heinemann
Hill, C. & Jones, G., Strategic Management: An Integrated Approach, 2006, Outh-Western
College Pub
Kaplan, R S. & Norton, D P., The Strategy – Focused Organization, 2006, Harvard Business
Press
Luthans, F, Organizational Behavior, 2006, McGraw-Hill
Mathur, S.S & Kenyon, A, Creating Value: Successful Business Strategies 2001, Butterworth-
Heinemann
Miles, R & Snow, C., Organizational Strategy, Structure, and Process, 2003 Stanford Business
Books
Schabracq, M.J., Changing Organizational Culture: The Change Agent's Guidebook, 2000,
Wiley
Yaeger, T F. & Sorensen, P F., Strategic Organization Development: Managing change for
Success, 2009, IAP
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Appendix
Structure Chart
Board of Directors
CEO
Team
Team Team Team
Manager
Managers Manager Manager
Structure
Environment
Organic Structure
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Organizational Behavior and Change Management
27