1. a temperate maritime climate (4) (Kington,2010). Typically
1. Introduction Dunkin Donuts In 1950, the founder Bill Rosenberg established Dunkin Donuts in Boston, supplied delicious donuts and coffee (1) (Black, 2009).
Dunkin Donuts rapidly become one of the nation’s top 10 brand franchise chains between fifty years according to the fast and friendly service, supplying high quality coffee and baked dessert food(1) (Black, 2009). So far, more than 34 countries worldwide have over 7900 Dunkin Donuts stores, it has become the world’s largest “coffee and donuts” chain store in 2007(1) (Black, 2009).And plan to expand to 15000 stores until 2015(1) (Black, 2009). From Asia to Latin America and everywhere in between, you can count on Dunkin’ Donuts for delicious coffee and espresso, cool Coolatta, delectable donuts, sandwiches and more(2)(Miller et al. 2010) Brand Mission Statement 1. the most delicious food 2. the most innovative products 3.
fast, fresh and parity customer service(2) (Miller et al. 2010) The purpose of this essay is to discuss the feasibility of Dunkin Donuts enter into the UK’s market. . Overview of UK 2. 1 Physical Characteristics Geography: the United Kingdom, located in Europe, including the British Isles (including England, Scotland, Wales), and Northern Ireland is located in the northeast of the island of Ireland and 5500 islands around (Overseas Territories)(3)(Oakland,2006). Britain located in the European continent to the northwest of the British Isles, is surrounded by the North Sea, English Channel, Celtic Sea, Ireland Sea and Atlantic Ocean(3) (Oakland,2006).
There are 244,100 square km (including inland water areas), there including England region 130,400 square kilometers, Scotland 78,800 square kilometers, Wales, 20,800 square kilometers, Northern Ireland, 13,600 square kilometers(3) (Oakland,2006). Britain is island nation located in Western Europe, across the North Sea, the Strait of Dover, and English Channel and facing the European continent(3) (Oakland,2006). It’s Geosphere border with the Republic of Ireland (3) (Oakland,2006). There are 11,450 kilometers Coastline totally (3) (Oakland,2006).Climate: The United Kingdom is a temperate maritime climate (4) (Kington,2010). Typically the maximum temperature does not exceed 32 ? , the lowest temperature of not lower than -10 ? , the average temperature of January is 4 ~ 7 ? , July is 13 ~ 17 ? in the UK (4) (Kington,2010). Average annual precipitation is about 1000 millimeters (4) (Kington,2010).
The annual precipitation of Northern and western mountainous areas is over 2000 millimeters and central and eastern areas are less than 800 millimeters (4) (Kington,2010).Natural advantages or disadvantages: Britain’s main mineral resources include coal, iron, oil and natural gas (3) (Oakland,2006). The total hard coal reserves are 1,700 million tons (3) (Oakland,2006).
Iron reserves are about 38 million tons (3) (Oakland,2006). In the UK North Sea Continental Shelf oil reserve is around 10 to 40 billion tons (3) (Oakland,2006). Natural gas reserve is about 8,600 ~ 25,850 billion cubic meters. Under the normal circumstances, the UK’s climate allows a long, prolific growing season without extreme (3) (Oakland,2006).
But at the some special time, farmers encounter the problems because of drought, too much sunshine and too much rain at abnormal weather because of climate change (3) (Oakland,2006). Britain is one of Europe’s chief fishing nations and works in the Irish Sea, the North Sea and the Atlantic(3) (Oakland,2006). 2. 2 Population: The population of Britain is 62,698,362(5) (Central Intelligence Agency, 2011). Population density is 246 persons / km, the population growth rate is 0. 557% and Male to female ratio is 0. 98:1(5) (Central Intelligence Agency, 2011).
It mainly separate 3 age group, the first age group is 0~14 years old accounts 17. 3%, second age group is 14~64 years old accounts 66. 2% and final one age group is over 64 accounts 16. 5%(5) (Central Intelligence Agency, 2011). 85.
67% of the UK population is British Caucasian, 6. 47% for the other regions Caucasian, 4. 00% of South Asians, 2.
00% Black, 1. 20% for the mestizos, 0. 80% of East Asians and other ethnic(5) (Central Intelligence Agency, 2011). In the UK, everyone enjoys freedom of religion, but the vast majority of Britons embrace Christianity, it accounts about 71. %. and the other religious beliefs like Muslim 2. 7%, Hindu 1%, other 1.
6%, unspecified or none 23. 1%(5) (Central Intelligence Agency, 2011). About 99% of total population has the basic literacy; it means age 15 and over has completed five or more years of school education (5) (Central Intelligence Agency, 2011). The school life expectancy of the UK’s population is 16 years averagely (male: 16 years; Female: 17 years) (5) (Central Intelligence Agency, 2011).
The life expectancy at birth of the UK’s total population is 80. 05 years (male: 77. 95 years; female: 82. 5 years) (5) (Central Intelligence Agency, 2011). 2. 3 Politics The form of government is constitutional monarchy (6) (McAnulla, 2006). King is the head of state, the Supreme Judicial Executive, commander of the armed forces and the Church of England’s “the Supreme Leader”, the formal power to appoint the Prime Minister, the Ministers, senior judges, military officers, the territorial governor, diplomat, the senior clergy of bishop and St.
Association and so on, and also to convene, to stop and dissolve parliament, approved the law, power to declare war to make peace, etc. but the real power in the cabinet(6) (McAnulla, 2006). Parliament is the British political center stage, is the UK highest legislative body (6) (McAnulla, 2006). There are three main political parties in UK, Conservative Party (Ruling Party), Labour Party (main opposition Party) and The Liberal Democrat Party(McAnulla, 2006). According to (3)(Oakland, 2006), MORI view investigation in 2001 presented that in fact concern in politics has maintained steady in Britain for 30 years.This advises that persons need more truthful data and a greater attention to the matters that directly concern elections (3) (Oakland, 2006). They wish economic freedom and personal liberty but also want national interventionist policies in some social parts, for instance education, law, order and health (3) (Oakland, 2006).
2. 4 Economics Britain is one of the world’s economic powers, its gross domestic product ranked 5th in the world in 2010(3) (Oakland, 2006).British manufacturing industry in the national economy has declined; the percentage of service and energy, including commercial, financial and insurance industry developed more rapidly (3) (Oakland, 2006). Tourism is one of the most important British economic sectors.
Annual output value is more than 700 million pounds; tourism revenue occupied 5% of the world’s total tourism revenue. Different from the other scenery tourism-oriented countries, the British royal family culture and museum culture is the highlight of the tourism industry (3) (Oakland, 2006).Britain is the world’s fourth largest trading nation, trade volume accounted for more than 5% of total world’s trade volume, export of goods and services account for about 25% of GDP(3) (Oakland, 2006). Britain mainly export machinery, vehicle, aerospace equipment, electrical equipment, electronic products, chemical products and oil, mainly imported raw materials and foodstuffs (3) (Oakland, 2006). Britain is the world’s sixth largest overseas investing nation and the sixth largest foreign aid nation. As the capital of Britain, London is a global financial and trading center.Service industry includes finance insurance industry, retail industry, tourism and business services (provide legal and consulting services, etc.
)(3) (Oakland, 2006). Service industry develop rapidly in the recent years, employees have reached 22. 8 million at the end of 2001, account for 77.
5% of total employed population (5) (Central Intelligence Agency, 2011). The financial industry is the main force of UK trade balance, output value accounts for more than 5% of gross Domestic product, more than 1 million employees, the output value reached a record of 13. billion pounds (3) (Oakland, 2006). 2. 5 Social-cultural Pattern: Class in UK has been respectively defined by material fortune; accent and language; ownership of the means of production as against the sellers of labor; education level and occupation position; birth and breeding; or on occasion by standard of living (3) (Oakland, 2006).
Some investigators now employ a 6-class pattern based on job, earnings and wealth ownership, for instance, “1. Higher-grade professional, managerial and administrative workers (e. . doctors and lawyers); 2.
Intermediate professional, managerial and administrative workers (e. g. school teachers and sales managers) 3.
Non-manual skilled workers (e. g. clerks) 4. Manual skilled workers (e.
g. coal miners) 5. Semi-skilled workers (e.
g. postal employees) 6. Unskilled workers (e. g. refuse collectors, cleaners and laborers)” quoted by (3) (Oakland, 2006) 2. 6 Legal System The British constitution is different from the constitution of most countries (7).This is not an independent file, which consists of statute law, customary law and practice (7) (Slapper and Kelly, 2009).
Mainly the Magna Carta (1215), habeas corpus (1679), the Bill of Rights (1689), Act of Parliament (1911,1949) – and the successive changes of the electoral law, municipal Autonomy Law, County Council law(7) (Slapper and Kelly, 2009). There are three different legal systems in UK, England and Wales implement the common law system, Scotland implements civil law and Northern Ireland implement the law system similar to England(7) (Slapper and Kelly, 2009).The Judiciary divided into three systems- Civil Court, Criminal Court and Special Court (7) (Slapper and Kelly, 2009). British patent law was enacted in 1977, to be patentable inventions to meet the following conditions 1. The invention is novel; 2.
Involves an inventive step; 3. Can be used for industrial; 4 shall not conflict with the relevant provisions (7) (Slapper and Kelly, 2009). 3.
PESTLE Analysis By using the PESTEL framework we can analyze the many different factors in a firm’s macro environment.It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. * Political factors The UK’s political system is constitutional monarchy; the UK’s political is very stable in last long term, but in recent years, the supply rate of labour party ruled for last long time is declined sharply, leading to the Conservative Party came to power.
However the Conservative Party does not represent mainstream public opinion and the inevitable direction of political development, in fact, they did not obtain majority party status, not able to set up cabinet independently, which shows that the UK’s political is not stable comparatively. But Conservatives tend to encourage a free economy, reducing government intervention, the private business is concerned, will face a better time to make a watershed decision, and it will tend to take more aggressive or expansionary development strategy.In this situation, it benefit for new brand enter into the UK. * Economic factors In 2010, the UK’s economic growth rate is 1. 3%, this is better than -4.
9% in 2009 and -0. 1% in 2008(5) (Central Intelligence Agency, 2011), it shows that the UK’s economy is getting better. In the other side, the UK’s GDP per capita is reached 34,800 US dollars (Central Intelligence Agency, 2011), it shows that the living standard of public is very high. Service industry develop rapidly in the recent years, employees have reached 22. 8 million at the end of 2001, account for 77.
% of total employed population. Following this situation, it benefit to development of the new brand. * Social factors The traditional English afternoon tea is famous for the world, it shows that the common British have a custom of eating sweet food and drinking coffee in the afternoon, it benefit for our brand enter into the UK, because the potential market is very big. The population of Britain is 62,698,362, and the largest age group is from 14 years old to 64 years old, this age group is my target consumer group, it also show that Britain is very big potential market. Technological factors Because the service trade is not demand technology too much, in this situation, I do not describe the current status of British technology in detail.
* Environmental factors The United Kingdom belongs to temperate maritime climate. Average annual precipitation is about 1000 millimeters. The annual precipitation of Northern and western mountainous areas is over 2000 millimeters and central and eastern areas are less than 800 millimeters. It shows that the stores need to provide enough rain gears for customers.And In recent years, the British government pays more and more attention to environmental protection, and the environmental awareness of public become more and more high, it shows that stores should pay more attention to environmental protection, such as use the recyclable packing materials. * Legal system The legal awareness of citizens and enterprises is very high in the UK. The UK has complete legal system including labor law, antitrust law, consumer protection law, health law and safety Law and so on.
It shows that the enterprise will be protected by legal system. 4. SWOT analysis Strength: good brand image; higher quality than competitors; high innovation ability; Successful overseas chain marketing experience; Powerful advertising promotion ways. Weakness: not local brand; a lot of local competitors; no obvious price advantage; the number of branch Opportunity: the habit of eating sweet food and drinking coffee in UK. Threat: replaced by local brand because of no significant price advantage and low Brand recognition 5. 4 P’s AnalysisProduct: high quality coffee and baked dessert food; Star products: American coffee, ice coffee, donuts and bagels; develop new product fit to taste of local people. Place: near the school, city centre, near the railway station, near the Residential areas and near the stadium.
Price: parity price, because our target customers are almost all people, especially students, workers and common people Promotion: advertised by TV, radio, website and other media channels, increase brand recognition among the local people; VIP card; free delivery; . Conclusion and Recommendation In my opinion, I think Dunkin Donuts can enter into the UK, there is main 4 reasons1. The political of the UK is stable 2. Have enough Consumption ability 3. Have enough population size 4. The British have custom of eating dessert and drinking coffee. And I want raise some recommendations, firstly, I think the beginning of brand enter into the UK, need to invest the advertisement, increase the brand recognition in the short time.
Secondly, I think strengthen the development of online shop.Then, the brand can cooperate with local supermarket, increase sale channel. Finally, I think the Dunkin Donuts ensure the quality of product basically, and provide more new products, make customers still keep freshness. Reference (1) Black, K (2009). Business Statistics: contemporary Decision Making. USA: John Wiley and Sons (2) Miller, F.
P. Vandome, F. A.
and McBrewster, J. (2010). Dunkin’ Donuts.
USA: VDM Publishing House Ltd. (3) Oakland, J (2006). British Civilization: An Introduction. London, UK: Routledge 4) Kington, J (2010). Colins New Naturalist library: British Climate and Weather. London, UK: Haper Colins UK (5) Central Intelligence Agency (2011). The world fact book: the United Kingdom Retrieved 5/7/2011 From:https://www.
cia. gov/library/publications/the-world-factbook/geos/eg. html (6) McAnulla, S (2006). British politics: a critical introduction.
London, UK: Continuum International Publishing Group. (7) Slapper, G. and Kelly, D. (2009) The English Legal System: 2009-2010. Abingdon, UK: Taylor & Francis