Dunkin Donuts Case Study

856 Words2 Pages

Starbucks and Dunkin’ Donuts both have competitive advantage in the coffee industry. Dunkin’ Donuts have focused on a strategy of becoming a cost leader in the U.S. coffee and snack shop industry. Their strategy involves offering the same or better quality service at a price that is less than its competition (Dunkin’ Donuts, 2016). They also have been able to establish relationship with their suppliers, which have been able to keep costs low. Overall, by keeping their stores and franchises consistent across the company, they have been able to achieve growth and profitability (Huffington Post, 2016). While they have a strong presence is the Northeastern part of the U.S., their popularity is low in amongst the rest of the country. Plans for expansion …show more content…

These benefits include increased pay rates, rewards for employees working over 20 hours a week, 401k plans, and stock option purchases. They also provide adoption assistance and health insurance, along with full college tuition reimbursement through Arizona State University (Starbuck, 2016). Starbucks also has made improvements to their scheduling practices of employees, which has improved their employee relations and reputation. Overall, their practices of consistently improving and expanding have contributed to their competitive …show more content…

They have improved their HR notables over the years to establish a competitive total compensation package, as a means to increase their employee relations and reduce turnover. In 2013, Starbucks had nearly 4 million applicants and only hired 50,000 (Lutz, 2014). This means Starbucks hires less than 1% of their candidate pool (Lutz, 2014). Due to the abundance of eligible workers, Starbucks can focus on the candidate and select the most qualified talent for the position. When a candidate is offered a Starbucks position, they are not just employees of Starbucks, they are considered “partners of Starbucks” (Working, n.d.). This uniqueness also coincide with their benefits program, which is wisely named, “Your Special Blend” (Working, n.d.).
Your Special Blend is a variety of benefits, eligible to partners working more than twenty or more hours a week. Some of these benefits include bonuses and a 401(k) with matching and discounted stock purchase options. Also, exclusively, Starbucks provides health and medical coverage to partners, spouses, dependents, domestic partners and dependents of domestic partners. This program is considered unique because most employers require their employees to work full-time hours before offering these types of

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