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Organizational Structure

The organizational structure of a company determines how it operates and thus its
efficiency. It has an impact on departmental cooperation as well as resource
allocation. Businesses should adopt an organizational structure that allows for
efficient resource allocation and collaboration. It would aid in increasing
organizational efficiency and productivity.

Divisional is the best organizational structure for Dunkin Donuts. It entails the
division of corporate functions. Individual units within the structure represent either
geographies or enterprise products. Individual units will be provided with the
necessary resources and functions to facilitate their operations by the organization.

The new establishments will be distinguished by product departmentalization. A


single manager will oversee all activities related to the production of Dunkin Donuts
products. Each facility will have a general manager who will oversee overseeing
operations. Flexibility is one of the advantages of using a divisional structure. It will
aid in increasing organizational elasticity and productivity. Because each
establishment operates independently, the failure of one division has no effect on the
others.

Because of the flexibility of operations and the low degree of formalization,


communication in organizations with divisional structures is effective. As a result,
implementing a divisional structure will facilitate efficient decision-making processes
and elasticity. The organizational structure of the divisions is not bureaucratic. As a
result, operational departments are accountable to one another, promoting horizontal
cooperation among units. The divisional structure is distinguished by unrestricted
ideas of business goals and innovation.

Thus, implementing the organizational structure will allow Dunkin Donuts to improve
employee motivation and innovativeness, thereby increasing its competitive
advantage. As the establishments expand, new functional units will emerge, resulting
in increased demand for departmental autonomy. Adopting a divisional structure will
allow Dunkin Donuts' leadership to efficiently control all the units.
Financial Achievement

In 1950, Bill Rosenberg opened the first Dunkin' Donuts location in Quincy,
Massachusetts. Its mission at the time was to provide guests with high-quality coffee
and donuts while providing fast and friendly service at an affordable price. Fast
forward 67 years, and Dunkin' Donuts is still fulfilling that mission with over 12,000
restaurants in 45 countries. While much has remained the same, the brand has
recognized the need to make significant changes and additions in order to remain
relevant.

Dunkin' Donuts is one of the world's leading food companies today. They are well-
known for their fresh food items, unique marketing strategies, and creative donut
ideas. Surprisingly, they gave birth to the spelling 'donuts,' which was previously
spelled 'doughnuts.' This even sparked a spelling controversy. Every year, they sell
1.9 billion cups of coffee and 6.4 million donuts. They are now the world's largest
donut and bagels franchise.

During the quarter, Dunkin' Donuts has sold off its remaining company-operated
stores and is now entirely franchised. Due to increased royalties and fees associated
with franchise restaurants, overall revenue for the quarter increased 5.8% to $215.7
million. The company earned $56.1 million, or 61 cents per share, compared to a
loss of $8.9 million, or 10 cents per share, the previous year.

Analysts expected earnings of 61 cents per share on revenue of $215.5 million.


Operating income and adjusted operating income both increased by $70.4 million, or
161.9% and 14.8%, respectively.

This past year was a watershed moment for Dunkin' Donuts. The management team
began executing on a six-part strategy to drive growth by positioning Dunkin' Donuts
as a to-go, coffee beverage brand, and while much work remains, the plan has made
significant progress, particularly in terms of utilizing digital technology to drive
customer loyalty and store traffic.
Conclusion

Dunkin’ Donuts took pride in showing their customers the utmost respect and
providing the best customer service possible. Dunkin’ Donuts competes by keeping
their costs low, allowing their customers to customize their orders, fulfilling customer
orders on time, and keeping the quantity of their products up to par. The mission of
Dunkin Donuts is straightforward. It is to make and serve the freshest, most delicious
coffee and donuts quickly and courteously in modern, well-stocked stores. With
proper store design, a simple organizational structure, and recruitment and training
techniques, they will ensure their company continues to grow and be more profitable
in the years to come and will continue to be recognized as one of the world's leading
franchisors of quick service restaurants.

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