Musni, Adrian Kenneth BSBAOM 3A

1. The societal environment refers to the broader external factors that affect an organization,
such as cultural norms, values, and trends, as well as legal, political, economic, and
technological factors. The task environment includes the specific external factors that
directly impact an organization's daily operations, such as competitors, suppliers,
customers, and regulators. Technological factors Dunkin' Donuts has embraced
technology to enhance its customer experience, such as through its mobile app that allows
customers to order and pay for their purchases in advance. Legal factors Dunkin' Donuts
operates in a heavily regulated industry, with laws and regulations governing food safety,
labor practices, and other areas.

2. One industry analysis tool that Dunkin' Donuts could use to maintain its future healthy
position in the market is Porter's Five Forces analysis. This tool helps companies identify
the competitive forces that shape their industry and determine their attractiveness and
profitability.

Porter's Five Forces analysis considers five factors:

 Threat of new entrants the ease with which new competitors can enter the market and
compete with existing firms.
 Bargaining power of suppliers the degree of control that suppliers have over the price and
quality of inputs.
 Bargaining power of buyers the degree of control that buyers have over the price and
quality of outputs.
 Threat of substitutes the degree to which substitutes for a firm's products or services exist
in the market.
 Intensity of competitive rivalry the degree of competition among existing firms in the
market.

By analyzing these five forces, Dunkin' Donuts can identify areas of opportunity and
potential threats to its business. For example, if the threat of new entrants is high, Dunkin'
Donuts may need to focus on differentiating its products and services to maintain its
competitive advantage. If the bargaining power of buyers is high, Dunkin' Donuts may
Musni, Adrian Kenneth BSBAOM 3A

need to adjust its pricing or marketing strategy to attract and retain customers. Overall,
Porter's Five Forces analysis can help Dunkin' Donuts make strategic decisions and
maintain its future healthy position in the market by identifying and responding to the
competitive forces that shape its industry.

3. As recommended, I will use Porter's Five Forces analysis to perform an industry analysis
for Dunkin' Donuts based on the present context.

 Threat of new entrants, The threat of new entrants in the coffee and fast food industry is
moderate to high. While there are significant barriers to entry, such as the high costs
associated with establishing and operating stores, there are many established brands, both
domestic and international, that could potentially enter the market. The recent pandemic
has also accelerated the growth of online ordering and delivery services, which could
further lower barriers to entry. However, Dunkin' Donuts has a well-established brand,
strong supply chain, and loyal customer base that could help it mitigate this threat.
 Bargaining power of suppliers: The bargaining power of suppliers is moderate. While
Dunkin' Donuts relies on suppliers for its ingredients and packaging, there are many
suppliers available in the market, which can reduce the power of any one supplier.
Additionally, Dunkin' Donuts has a large purchasing power due to its size, which can
further reduce suppliers' bargaining power.

 Bargaining power of buyers: The bargaining power of buyers is moderate to high.

Dunkin' Donuts serves a broad range of customers, from budget-conscious consumers to
premium coffee drinkers, who have different needs and preferences. However, customers
have many options available in the market, and can easily switch to other brands if they
are not satisfied with Dunkin' Donuts' products or services. To mitigate this threat,
Dunkin' Donuts should focus on understanding and meeting its customers' needs and
preferences.
Musni, Adrian Kenneth BSBAOM 3A

 Threat of substitutes: The threat of substitutes for Dunkin' Donuts' products is moderate
to high. Customers have many options available in the market, including other coffee and
fast food chains, as well as at-home brewing and other alternatives. However, Dunkin'
Donuts has a strong brand and loyal customer base, which can help it maintain its
position in the market. To further mitigate this threat, Dunkin' Donuts can focus on
developing innovative products and services that differentiate it from competitors.

 Intensity of competitive rivalry: The intensity of competitive rivalry in the coffee and fast
food industry is high. Dunkin' Donuts faces significant competition from established
brands such as Starbucks, McDonald's, and Tim Hortons, as well as from emerging
brands and independent coffee shops. To maintain its competitive advantage, Dunkin'
Donuts should focus on differentiating itself through innovation, customer service, and
marketing, while also maintaining high quality standards and efficient operations.