Philippine Christian University

GRADUATE SCHOOL OF BUSINESS AND MANAGEMENT

2nd Floor. Administrative Bldg., 1648 Taft Avenue corner Pedro Gil St., Malate, Manila
Telephone: (63-2) 8521-5045

MASTER IN BUSINESS ADMINISTRATION

STRAMA 1 and 2 FRAMEWORK

1. Case Background
The Baskin-Robbins and Dunkin Donuts were founded in 1940s independently. Both companies
were acquired by Allied Domecq in 1973 and 1989, respectively. In 2004, Allied Domecq renamed
Dunkin’ Brands, Inc. In the year 2005, Allied Domecq was acquired by Pernod Ricard, who sold Dunkin’
Brands to Bain Capital Partners, LLC, The Carlyle Group, and Thomas H. Lee Partners, L.P.
Dunkin's vision emphasizes a commitment to "Serving Responsibly," aiming to be recognized for
responsibly serving all stakeholders, including guests, franchisees, employees, communities, business
partners, and the planet. Their mission, titled "Our Priorities," focuses on four key areas: Our People,
Our Guests, Our Neighborhoods, and Our Planet. It highlights treating everyone with respect and
fairness, empowering them to reach their goals, while also committing to positive customer experiences,
community support, and environmental sustainability.

To boost sales throughout the day, Dunkin’ now offers dinner-friendly foods like steak
sandwiches and wraps, aiming to increase sales after 11 AM, which currently accounts for only 40% of
their revenue. This strategy is particularly relevant for the over 2,300 U.S. locations open 24 hours,
providing significant growth potential.

In 2014, about 700 Dunkin’ Donuts and Baskin-Robbins stores opened worldwide. In the same
year, Dunkin’ Introduced a dinner staple (steak) and made a steak sandwich as well as a wrap with eggs
permanent additions to its menu. Dunkin also launch. During this year, Donuts U.S generated $549
million in revenues from 8,047 stores while Dunkin Donuts International generated $20 million in
revenues from 3,228 stores in 32 countries. Baskin-Robbins U.S generated $43 million in revenues in
2014 from 2,478 stores.

Dunkin’ Brands reported slower sales growth in Q4 of 2014 due to intensifying competition in
the breakfast category. The year 2014, coffee prices rose 50% due to severe drought in Brazil, leading to
the lowest coffee harvest in three years.

In the mid of 2015, Dunkin’ announced agreements with seven franchise groups to open 51 new
restaurants in Virginia and West Virginia. Dunkin’ Brands reported an 8.1% year-over-year revenue
increase for Q1 2015, reaching $185.9 million. This was partly driven by revenue from the Dunkin’ K-Cup
pack licensing agreement with Keurig Green Mountain, Inc.

Dunkin’ is expanding by opening 65 new stores in Brasilia and surrounding areas by 2016 and
plans for 80 more in Brazil by 2018. Their largest presence in South America is in Colombia with 171
stores. In 2014, they opened about 700 stores worldwide. However, store cannibalization is an issue in
some areas due to high store density, especially in New England. To enhance customer experience,
Dunkin’ is updating its store décor with comfortable seating, modern design, free Wi-Fi, and digital
menus.
Philippine Christian University
GRADUATE SCHOOL OF BUSINESS AND MANAGEMENT
2nd Floor. Administrative Bldg., 1648 Taft Avenue corner Pedro Gil St., Malate, Manila
Telephone: (63-2) 8521-5045

2. Environment Analysis
A. General Environment
A.1 Opportunities
A.1.1. Socio-Cultural-Demographic Forces
A.1.2. Technological Forces
A.1.3. Economic Forces
A.1.4. Environmental Forces
A.1.5. Politico-Legal Forces
A.2. Threats
A.2.1. Socio-Cultural-Demographic Forces
A.2.2. Technological Forces
A.2.3. Economic Forces
A.2.4. Environmental Forces
A.2.5. Politico-Legal Forces
B. Operating Environment
B.1 Opportunities
B.1.1. Rivalry Among Competing Firms
B.1.2. Potential Entrants
B.1.3. Substitute Products
B.1.4. Bargaining Power of Suppliers
B.1.5. Bargaining Power of Buyers
B.1.6. Industry Growth
B.1.7. Shareholders' Actions
B.1.8. Creditors' Actions
B.1.9. Community Perceptions
B.2 Threats
B.2.1. Rivalry Among Competing Firms
B.2.2. Potential Entrants
B.2.3. Substitute Products
B.2.4. Bargaining Power of Suppliers
B.2.5. Bargaining Power of Buyers
B.2.6. Industry Growth
B.2.7. Shareholders' Actions
B.2.8. Creditors' Actions
B.2.9. Community Perceptions

C. Internal Environment
C.1 Strengths
C.1.1. Marketing
C.1.2. Production/Operations
C.1.3. Finance
C.1.4. Organization & Management
Philippine Christian University
GRADUATE SCHOOL OF BUSINESS AND MANAGEMENT
2nd Floor. Administrative Bldg., 1648 Taft Avenue corner Pedro Gil St., Malate, Manila
Telephone: (63-2) 8521-5045

C.1.5. Human Resources

C.1.6. Research & Development
C.1.7. Information Systems
C.2 Weaknesses
C.2.1. Marketing
C.2.2. Production/Operations
C.2.3. Finance
C.2.4. Organization & Management
C.2.5. Human Resources
C.2.6. Research & Development
C.2.7. Information Systems
D. External Factor Evaluation Matrix
E. Internal Factor Evaluation Matrix
F. Competitive Profile Matrix
G. Assumptions
G.1. General Environment Stability
G.2. Industry Growth Prospects
G.3. Company's Competitive Position
3. Problem Statement supported with evidences
4. Alternative Courses of Action
A. Tows Matrix
B. Internal-External Matrix
C. Grand Strategy Matrix
D. Summary of Strategies
5. Recommended Alternative and Action Plan
A. Quantitative Strategic Planning Matrix
B. Action Plan
C. Financial Projections
C.1. Sales Forecast
C.2. Income Statement Forecast
C.3. Balance Sheet forecast
C.4. Cash Flow forecast

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