The quantitative strategic planning matrix-QSPM Key factors 1 strategic Alternatives 2

Introducing more drinks for kids.

Expand stores globally like India or china.

Key external factors

weight

AS

TAS

AS

TAS

OPPORTUNITIES: Emerging new store in india or china.

0.16 0.16 0.18

4 3 3

0.64 0.48 0.54

3 3 4

0.48 0.48 0.72

Rise in franchise

Introduce less calories. Introduce more health drinks.

Threats: Strongs competitors like starbucks dominate the market.

0.12

0.36

0.36

Change in consumer taste.

0.15 0.15 0.8 1

2 2 2

0.3 0.3 1.6

3 3 2

0.45 0.45 1.6

Increase in cost of ingredient

Other competitor like Starbucks, McDonalds introduce breakfast on their menu.

strength

weight

AS

TAS

AS

TAS

Strong brand High quality of coffee and donuts Customer loyalty.

0.15 0.10

4 3

0.6 0.3

3 3

1.8 0.9

0.12

3 2

0.36 0.16

3 2

1.08 0.32

Dunkin 0.08 Donuts uses 100% Arabica coffee beans and has its own coffee specifications. Dunkin 0.15 Donuts is Americas largest retailer of coffee. Weakness: Donuts contain high calories Not diversified. High price Less option who wants to eat healthy. 0.1

0.6

1.8

0.2

0.4

0.05 0.10 0.15

1 1 1

0.05 0.1 0.15

1 1 2

0.05 0.1 0.3

6.74

11.29

Expanding new store in India or china is better alternative strategy than targeting kids drink. The total attractiveness score of 6.74 versus 11.29 indicates that business should focus expanding its stores in India or china because it has huge population and their economy is booming.

Grand strategy matrix:

Rapid market growth Quadrant II Quadrant I

1. Market Development

1. Market Development

2. Market Penetration

2. Market Penetration

3. Product Development

3. Forward Integration Strong competitive 5. Diversification position

Weak competitive position

4. Horizontal Integration

4. Backward Integration

Quadrant IV

Quadrant III

1. Related Diversification

1. Retrenchment

2.Joint ventures

2. Unrelated Diversification

Slow market growth