External Factor Evaluation (EFE) Matrix for Dunkin' Donald's

Key External Factors Weight Rating Weighted

Score

Growing demand for fast food 0.10 4 0.40

Intense competition from other fast-food chains 0.15 3 0.45

Changing consumer preferences toward healthier

0.12 2 0.24
options

Regulatory pressures on food industry 0.08 3 0.24

Fluctuating food prices 0.10 3 0.30

Technological advancements impacting

0.10 4 0.40
operations

Economic factors (e.g., inflation, unemployment) 0.15 2 0.30

Social Media influence on brand perception 0.10 4 0.40

Environmental concerns (e.g., sustainability) 0.10 2 0.20

Total 1.00 2.93

The EFE matrix indicates a total weighted score of 2.93 for Dunkin' Donald's, reflecting
an average performance against external factors. Despite the ongoing boycott issue related to its
support in Israel, the company faces various other external challenges and opportunities.

1. Growing demand for fast food (Weighted Score: 0.40): Dunkin' Donald's can capitalize on the
overall growing demand for fast food, potentially offsetting any negative impacts from the
boycott issue through increased sales.

2. Technological advancements impacting operations (Weighted Score: 0.40): Leveraging

technology can help Dunkin' Donald's streamline operations and enhance customer experience,
contributing to long-term resilience.

3. Social media influence on brand perception (Weighted Score: 0.40): By effectively managing
social media, the company can mitigate negative publicity from the boycott issue and maintain or
improve brand perception among its target audience.
1. Intense competition from other fast-food chains (Weighted Score: 0.45): Competition remains
a significant threat to Dunkin' Donald's, requiring strategic differentiation to retain market share
and profitability amidst the boycott issue.

2. Changing consumer preferences towards healthier options (Weighted Score: 0.24): Addressing
health-conscious consumer trends is crucial for Dunkin' Donald's to remain relevant and mitigate
potential sales declines due to boycott-related perceptions.

3. Regulatory pressures on food industry (e.g., health regulations) (Weighted Score: 0.24):
Compliance with regulations amidst the boycott issue may pose additional challenges and costs
for Dunkin' Donald's, impacting operational efficiency and profitability.

By acknowledging these opportunities and threats, Dunkin' Donald's can adapt its
strategies to navigate the boycott issue and sustain long-term business success.

Competitive Profile Matrix (CPM) for Dunkin' Donald's

Factors Dunkin’ Starbuc McDonald Tim Krispy Costa

Donald’s ks ’s Hortons Kreme Coffee

Brand Reputation 3 4 4 3 3 3

Product Quality 4 4 3 3 4 3

Pricing Strategy 3 3 4 3 3 3

Market Share 3 4 4 3 3 3

Financial Position 4 4 4 3 3 3

Innovation and Technology 4 4 3 3 3 3

Customer service and

3 4 4 3 3 3
satisfaction

Global Presence 3 4 4 3 3 3

Response to Social Issues (e.g.,

2 3 3 2 2 3
Boycott)

Total 29 34 33 26 28 27

Dunkin' Donald's has a competitive position with a total score of 29, showing strengths in
product quality, financial position, innovation and technology, and global presence.
 Starbucks emerges as the strongest competitor with a total score of 34, benefiting from
strong brand reputation, product quality, pricing strategy, market share, financial position,
innovation, customer service, and global presence.

McDonald's closely follows with a total score of 33, excelling in areas such as brand
reputation, pricing strategy, market share, financial position, and customer service.

Tim Hortons, Krispy Kreme Doughnuts, and Costa Coffee have total scores of 26, 28,
and 27, respectively, indicating competitive positions with strengths in certain factors but trailing
behind Dunkin' Donald's, Starbucks, and McDonald's.

This CPM provides a comparative analysis of Dunkin' Donald's against its key
competitors, considering various factors critical to success in the fast-food and coffee industry.