Dunkin Donuts Macroenvironment

Dunkin Donuts Macroenvironment

  • Submitted By: peakim
  • Date Submitted: 02/06/2014 4:21 PM
  • Category: Business
  • Words: 573
  • Page: 3
  • Views: 62

Three examples of Dunkin Donuts macroeconomic forces are the down economy, interest rates, and inflation rates. Economic downturn may help attract customers away from more expensive coffee shops, or it could hurt the company because customers will save the money and make their coffee at home. The decrease in interest rates of loans may help them borrow money for capital improvements, but the inflation rates of supplies may cost them more for product purchasing which in turn decreases profit.
Three examples of Dunkin Donuts technological forces are the introduction of new baking equipment, online ordering through website abilities, increased payment options. The new baking equipment would make the process more efficient and less costly to make the coffee and donuts. The online ordering allows for more convenent service and sales. The different payment options makes it a more convenient purchase for the customer (gift card, debit cards, etc.). Sometimes customers who pay with prepaid cards tend to purchase more than those who pay with cash. Plus, some gift cards are never redeemed, increasing cash flow to Dunkin Donuts.
Three examples of Dunkin Donuts demographic forces are an aging population, a younger population with access to cash, ethnic origin of customers. An aging population can be an opportunity by the Baby Boomer generation retiring. A younger population is an opportunity because of appealing flavored coffees, iced coffees, etc. The ethnic origin of customers can be either a threat or an opportunity depending on how the manager handles this as different cultures enjoy coffee for different reasons.
Three examples of Dunkin Donuts social forces are the social emphasis on losing weight, having a more health conscious society, and a society demand for nutrient-packed snacks. These examples may contribute to fewer donuts purchased. This became a threat because donuts were not a popular item. This because an opportunity because Dunkin Donuts now...