HM397 case study 2 Dunkin Donuts PDF

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Summary

Case study on Dunkin Donuts. Writing is based on information spoken about by guest speaker....

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MEMORANDUM TO: SUBJECT:

All students in HM 488 Case Study 2

Introduction In this paper I will be discussing two Dunkin Donuts locations in Ohio and comparing the benefits and concerns regarding both. The locations we are comparing are Alliance and Ashland which are both located in the Cleveland, Ohio designated market area (DMA). In class on March 17, Larry Harris presented information to us regarding these locations and what to look for. In the conclusion of this report, I will give my opinion on which I believe is the superior store. Location/Population When comparing the populations of both locations, Alliance comes out on top with a population of 21,500 whereas Ashland’s population is 20,500. Alliance is located in a densely populated downtown college area as opposed to Alliance which is a more suburban area. Both locations have a significant number of competitors within a small radius of them, so I believe this doesn’t affect my decision on which location is better. Income The Dunkin Donuts location in Alliance, Ohio has an average weekly sale of $48,000 which is more than double Ashland’s which has an average weekly sale of $20,000. The key to a successful business is income and without it you would not have the ability to sustain the company. The weekly average sales forecast proves that this location should remain open and will continue to be successful. Recommendations One thing that I would recommend the Alliance location look into is the drive thru. Because of its popular location, customers are able to see from the main street how long the line for the drive thru is. If the line is piling out of the store and into the street, this will deflect customers from coming in. If possible, they should attempt to find a solution involving making the line less visible from the street. For example, the Chick Fil A on N Atherton in State College has its drive thru in the back of the building and covered by bushes. This makes sure that even if there is a long wait, you will not be able to see it from the street, attracting customers. Conclusions In conclusion, I believe that the superior location is the one located in Alliance, Ohio. This location is central downtown in an area that is densely populated. The average weekly sales are more than double the Ashland location which is, in my opinion, enough reason to choose this store....