Baskin-Robbins
Baskin-Robbins (DNKN)
is a global chain of shops specialized in ice cream production and sales. Its
headquarters are in Canton,
Massachusetts. Irv Robbins
founded the company in the year 1945
in Glendale,
California. The firm is famous
for its ‘31 flavors’ tag implying that loyal customers can taste a different
ice cream flavor at any given day of the month. The founders believed that
people should have a wide variety of flavors for sampling. This way they are
able to make an appropriate choice. Since 1945, the firm has introduced more
than a thousand ice cream flavors.
There are more than
7,300 Baskin-Robbins shops spread across the globe. Outside the United States, the shops operate in more than 50
countries including Japan, Ukraine, England,
and Nepal.
Other countries that Baskin-Robbins has a major presence include China, Portugal Italy, and Malaysia. Recently, the firm opened
its shops in developing countries like Dominican
Republic, Mauritius,
Honduras, Egypt and Kazakhstan.
Baskin-Robbins produces
different flavors of ice cream with specialties in cups and cones, Sundaes,
Parfaits, and Beverages. Besides, the firm bakes and sells cakes for different
occasions. The customers can order the products online because the firm
provides delivery as an after-sale service.
History
of Baskin-Robbins
Baskin
and Robbins are brothers-in-law that merged their
respective parlors--Snowbird Ice Cream and Burton’s Ice Cream Shop--to form the global
firm. The merging happened in 1945
in California
(Fucini et al., 72). Prior to the merging of the two firms, Snowbird offered 21
flavors while Burton’s
had 10 flavors. Today, the Business entity is arguably a world leader in ice
cream specialty with the longest chain of stores. There are approximately 4,800
stores distributed globally as of May 2015.
In 1967, United Brands
Company (UBC) acquired Baskin-Robbins. IPOs were released during late 1972 with
a historic debut of 17% IPO sale. Subsequently, J.
Lyons Company from Britain
acquired Baskin-Robbins from UBC including all public stock. It was then that
the form merged with Allied Breweries, hence the conception of
Allied-Lyons. In 1994, Pedro Domecq
merged with allied Lyons.
In the late 2000s, Bain Capital purchased Dunkin Brands consisting of Dunkin’
Donuts and Baskin-Robbins.
Over the last decade,
the firm struggled to retain business. The economic crisis is partly to blame
for woes that ensued. Other factors that contributed to business slowdown
include mounting competition from start-up ice cream specialists and the
soaring tax rates in foreign companies. However, the Company saw a rebound in
financial performance as from 2014.
In fact, Baskin-Robbins continued its expansion streak
through the opening of more than 17 new international shops. In addition,
Baskin-Robbins introduced ice-cream to supermarkets and retail shops all over
the United States.
Baskin-Robbins
Corporate Social Responsibility
Baskin-Robbins has
established a community foundation that makes sizeable donations to charities
and humanitarian activities. The Baskin-Robbins Community foundation provide
basic needs to local communities in developing world to ensure alleviation of
poverty and hunger. Besides, the foundation dedicates itself to improvement of
needy children’s health and ensuring the safety and security of the
neighborhoods.
Baskin-Robbins
understands the need for environmental awareness. As such, the firm embraces
sustainability in its activities to minimize its impact on the environment. On
the other hand, the employees, stakeholders and farmers that provide raw
materials are treated with respect. They are treated fairly, hence are
empowered achieve their goals hence boosting the organization’s long-term
performance.
Baskin-Robbins
Financial Health
a. Market
Capitalization =4.2 Billion.
b. 
1.89
From
the calculation, it is evident that the company can easily repay debts over the
period of the year. This is because the current assets are much higher than the
current liability. Therefore, the firm can liquefy the current assets to cover
for liabilities should the need arise.
c. 
= 7.61
From the calculation,
it can be concluded that Baskin-Robbins depends on investors and lending
institutions. This leads to a heavy risk to the business as the pressure is
piled on the management to avoid scaring off investors and money lending
institutions. A business entity in this situation can engage in malpractices
and unethical activities like falsification of financial outcomes as a cover-up
for business weaknesses.
d.
Analysis
of the Company
The financial health of
the business is deteriorating. The exposure of a business to a high level of
risks implies that Baskin-Robbins is prone to market shocks. Though the Firm
can easily repay debts, the technique would only be applicable in the
short-run. In the long-run, however, the organization can take a heavy hit that
can spark a streak of losses, hence scaring away potential investors. This will
threaten the survival of the business.
Baskin-Robbins’
management should enact policies that will lower the business risks. Some
measures that are applicable in place include establishment of a reserve fund
to jumpstart the business in case of economic turmoil. In addition, the
organization should diversify its investment to minimize risks resulting in
overdependence in one sector.
Mission
Baskin-Robbins’ mission
is to be the globe's fastest growing organization through sales maximization,
building a strong brand and maximizing profit. The current and future success
of the organization is dependent on the firm’s ability to deliver on
innovation. New and exciting products
can be introduced to the marketplace. Besides, Baskin-Robbins strives to
identify new ways of engaging with the Franchise’s business partners.
Strategy
Baskin Robbins’s
Mission will be
achieved by ensuring strong cooperation among the employees and the management.
Besides, the firm has an effective marketing team that ensures creation of
awareness of the firm's new and existing product. The Company considers the
customer as a king. Hence, all the business activities are conducted with
consideration of customer needs to ensure their satisfaction and absolute
loyalty to the firm and its products.
The
management is aware of growing competition. Therefore, measures have been put
in place to counter the effects of surging competition. For instance, the firm
is currently upgrading the technology utilized in serving customers globally.
Online sales have been adopted in most chains shops in the United States and Europe.
In addition, there is a provision of after sales services including delivery of
ordered Ice Cream and Cakes.
Goal
Currently, the company
aims at expanding to developing countries. The reason for this expansion is to
tap on growing middle-income earning group. In African countries, for instance,
there is rapid economic growth as compared to the developed world. As such, the
business conditions are favorable.
The goal of expansion
to developing countries is SMART. Firstly, it is clear that there is a targeted
market segment. Secondly the firm has experience in penetrating foreign
markets--the experience will come in handy for an already established business
entity, unlike a startup. Besides, the goal is measurable because tangible data
is obtainable after a year of activity in a new business environment. The top
level management can utilize the results in determination of business
continuity.
Baskin-Robins’ goal is
in line with the overall mission. In fact, it is geared towards maximization of
profit and improvement of business prospects. Dates for achievement of the goal
can be set. Thereafter, a detailed analysis will be conducted to ascertain the
level of business feasibility and long-term sustainability measures (Balmer
& Edmund, 175).
Stakeholders:
1. Klinke Brothers:
Klinke Brothers is a Memphis
supplier of ice cream. In addition, the supply company has a subsidiary that
provides paper goods for instance cups, napkins and spoons. The delegated
duties enable smooth flow of activities without hiccups resulting from
managerial conflicts work overloads. In other countries, suppliers of different
requirements differ as per the locality and the proximity to Baskin-Robbins’
premises.
2.
Morgan Stanley
Investors: This firm has invested heavily on Baskin Robins.
As at the second quarter of 2015 financial year, the firm held more than 2.8
million shares that represent nearly 3% of the total shares. This earns the
investment company the top position. However, the runners up are close behind.
DNKK has a policy that allows for freedom of investors, making it easier for
any major investor in the list to accumulate or sell off shares without
limits.
3.
Employees:
Baskin
Robins’
management is well aware that employees play a critical role in the success of
any business organization. There is a heavy investment in employees’ training
to boost their performance and to equip them with necessary skills. In the
recent past, the firm has motivated employees through rewards, promotions, and
recognition. The human resource department utilizes Human Resource Information
System (HRIS) in the employee selection process as a means of ensuring that the
best talent joins the available workforce.
The
Impact of Technology on Business
Technology
is rapidly evolving. Most business entities are adopting technology in the day
to day operations to curb competition. In the case of Baskin-Robbins,
technology has impacted heavily on the business operations. Today, most
activities including ordering and supervision of activities have been
automated. Therefore, technology enables the management to cut the cost of
operations significantly. Then, the saved funds are utilized in other areas
that improve service delivery. Besides, adoption of technology in record
keeping seals the loopholes through the limitation of corrupt activities and
heightening the level of accountability (Melville et al., 296).
Organization
of the Company
Image
1: Baskin and Robbins
Organizational Structure
The Company has a
traditional design evidenced by the simple structure that has all the managers
answerable to the CEO. The management is stripped to its bare essentials
to ensure accountability and to avoid cases conflicts. It should be noted that
a complex company structure makes it hard for employees to determine the
individuals they are obliged to report. A functional organizational structure
is hierarchical, each level of management answerable to the top level (Rummler
et al., 62). In the chart above, there are four levels of management.
Key
Leaders and Managers in the Company
Anthony J.
Gioia
Anthony
is the chairperson of Management Board. He is also the overall CEO and president of the company. In the past, he
has served as a CEO and President
if Southwest Hypermarkets. Currently, he is an Executive partner of Emigrant
Capital Corporation (ECC). In
addition, he is the Chairman of Togo’s Eateries. He is the current president of
Baskin-Robbins International and Baskin-Robbins
USA.
He has an M.B.A degree
from Iona College. He did undergraduate studies at
NYC College. He is affiliated to TC Global,
Robeks Corporation, and Emigrant Capital Corporation.
Nigel Travis
Nigel
Travis
is a Chairman and CEO of Dunkin’
Brands Group since 2009. Dunkin’ Brands is an umbrella company for
Baskin-Robbins. In addition, Nigel is
a Managing Director of Nigel Travis Enterprises Ltd. He was once the president
of Dunkin Donuts and a consultant of Blockbuster inc. he is also a Lead
Director of Office Depot Ltd.
He earned his bachelor’s degree at Middlesex University in 2001. He is affiliated to
many companies including UI Video holdings, BB Liquidating Co., and Lorillard
Inc. He is entitled to annual calculated compensation of $10 Million US
Dollars.
William Mitchell
Mitchell
holds an office of the Presidency of Canada's Baskin-Robbins. He also holds a
similar position in the firm’s branches in US, Japan,
Korea, and China. He holds these multiple
positions since 2013. He has a bachelor’s degree from New York University
and is affiliated to BR 31 Ice Cream Company and Papa John’s Int. Inc.
Members
of Board of Directors
1. Carlos
Andrade-
Franchisee at North East Company.
2. Bill
Bode- Employee at Dunkin Brands.
3. Mitch
Cohen—Franchisee
and a Co-Chair at Dunkin Brands.
4. Scott
Hudler—VP
at Global Consumer Engagement.
5. Mike
Comody—Franchisee.
6. Dominic
Laskero—Director
of Operations at BR.
7. Tom
Manchester—VP,
Field Marketing.
8. Demy
Martin—South East’s Franchisee.
9. Karen
Raskopf-- Senior
Vice President at Corporate Communications.
10. Cindy
Savich—BR
BAC Franchisee.
11. David
Sisson--Midwest and Dunkin Donuts Franchisee.
12. Konse
Skrianos—DD
BAC Franchisee.
13. Alex
Smigelski—Mid
Atlantic Franchisee.
Tom
Manchester, Karen
Raskopf, and Scott Hudler
are not employees of Baskin-Robbins. A background check reveals that these
board members have exhibited resilience to market changes in the firms. Karen Raskopf,
for instance, has accumulated a wealth of business experience for over 20 years
in a relevant field. Her presence in the board will be beneficial especially in
making decisions that affect female customers (Malhotra & Peterson, 34). On
the other hand, Scott
Huddler is an established
entrepreneur in his right. He successfully steered Global Consumer Engagement
through 2008 economic recession. Lastly, Tom Manchester
is credited for the renounce of the firm in 2012 from a financial crisis.
The CEO utilizes a Laissez-Faire leadership style. He
understands the need for innovation to ensure prosperity in the organization.
Innovation is hardly attainable in a business structure that does not allow
employees to express their ideas freely. It is the reason why the firm has beat
the odds to post profits during the times that competitors are making losses
(Eagly et al., 569). Of keen to note is that the CEO
motivates hardworking employees through rewards and promotions.
The upper management
transmits the company’s culture first line employees through rituals. For
instance, employee welfare activities held periodically involves participation
of all employees regardless of hierarchy. During these events, there is free
mingling and sharing of ideas through socialization. This way, fear is eliminated
and confidence is instilled among the employees.
Corporate
Culture
The
company exhibits a market culture. All the activities engaged by the staff are
directed towards developing a positive image for the organization. Customers
are considered during decision making and Public relation activities play a vital
role (Denison,
17). The stiff competition necessitated the adoption of a market culture at
Baskin-Robins.
Herzberg’s
Hygiene motivation theory characterizes the business environment at
Baskin-Robbins. Dissatisfied employees hardly deliver to the expectation of the
management. As such, employees' welfare is catered to eliminate detriments to
their performance. In fact, a benefits scheme has been established to meet the
needs of employees. As a result, employee strikes are hard to come by, hence
ensuring smooth flow of activities.
In summary, two
entrepreneurs with a single mindset built Baskin-Robbins from scratch. They
expressed their passion towards business, which motivated them to establish a
solid foundation. Decades later, the organization is anchored on the founding
pillars. This has enabled the development of a strong organizational culture
between the employee and the management.
The motivation of
employees has played an important role in the organizational success. In
addition, the diversification in product and service provision eliminates risks
emanating from a lean on a particular sector (Ambile & Teresa, 192). This
enables Baskin-Robbins to wither the competition launched by startup
rivals.
Works
Cited
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(1999): 171-177.
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Wiley & Sons, 1990: 1-26.
Eagly, Alice
H., Mary C. Johannesen-Schmidt,
and Marloes L. Van Engen.
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