Sustainable Solution Paper: Strategic Analysis of Baskin Robins
The report consists of two parts:
Part 1: Identification and justification of research study.
Part 2: Main report body. Discussion, recommendations and conclusion.
Part 1 (Discuss with lecturer or tutor by Week 5)
This part includes the identification and justification of the study about to be undertaken. It will give
students the opportunity to identify a real world product/service or a problem they are comfortable with in
an organisation of their choice on which the research report will be based. Students should discuss their
choice with their lecturer or tutor for suitability so they can proceed with confidence. Students should have
the company and topic chosen and discussed with their lecturer or tutor by the end of Week 5.
Part 2 (Discussion, recommendations and conclusion)
This part of the Research Report will require students to identify Operations Management issues, clarify
problems or potential problems, and propose solutions if appropriate. Quality of analysis will be an
important part of the report along with the solutions proposed.
STRATEGIC ANALYSIS 2
Sustainable Solution Paper: Strategic Analysis of Baskin Robins
Identification and Justification of Research Study
Historically, there have been difficulties in developing sustainable business models in
areas and organization that have been faced with stiff competition. As a result, several companies
have collapsed due to the poor strategic plans that can gear them through global competition. The
problem of poor strategic plan has been in existence even after the big conferences have been set
to educate managers on the perfect strategic plans that can ensure profitability of the
organizations. Ensuring good strategic plans does not only increase the profits of the company,
but also offers the company a strong base to survive in the competition market. Gehani, (2013)
state that proper strategic plans have assisted companies such as ford that were collapsing in
early 1980s.Thus, good strategic plans is an important gadget that gears a company towards
sustainability. The purpose of the paper is to highlight the competitive organization in a
competitive industry for sustainable solutions The sustainable solutions cover the company’s
strategic plan that implements and creates sustainable values for maximizing shareholder value
and increasing profitability.
Discussion
Baskin Robbins is the largest shop that deals with ice cream specialty in the world. The
company was founded by Irv Robbins and Burt Baskin in 1945 in Glendale California. The
headquarter of the company is based in Canton, Massachusetts (Baskin-Robbins, 2013). The
company has been famous for using its “31 flavors” slogan, which suggests that customers can
have different flavors every day of each month. Since the opening of the first store in 1945, the
STRATEGIC ANALYSIS 3
company has opened 6000 stores in 35 countries (Weiss, 2011). As said by the slogan, the
purpose of the company is to provide different flavors and taste of ice cream on a global scale.
However much the company has been striving for sustainable growth, it has been faced
with several ups and downs as far as the business environment is concerned. The business has
been affected by both internal and external factors. Baskin Robins commands a lot of customers
in the ice cream industry, both households and commercial enterprises. For example, around
6000 store have been created in 35 countries with more than 700 stores in Korea alone (Baskin-
Robbins, 2013). As the world leading company of ice cream products, Baskin Robins does not
face stiff competition, which creates a favorable environment for their products. Martin (2014)
says that it is their brand and culture that makes it incomparable to others. The business
environment of the company has also been favorable due to the availability of the intermediate
markers who are also known as agents that reach every individual that might be in need of the
products.
Baskin Robins has used the divisional organizational structure to excel in the industry.
Also referred to as product structure, it breaks down the company operations that are self-
contained. This structure consists of collections of roles that produce the final product. As said
by Martin (2014), the divisional structure is one of the most common structures in America
today, which ensures sustainability and the progress of the company. In the difficult times of
Baskin Robins, administration assigned the employees who were responsible for certain services
of products in order to increase flexibility (McDowell & Dick, 2013). Thus, when everybody is
given his or her role, nobody wishes to fail and a positive competition is realized within the
company. For example, there was a division of certain flavors of ice cream, which made each
team to work hard and sell their flavor.
STRATEGIC ANALYSIS 4
As defined by Hughes and Ferrier (2014), differentiation strategy is a marketing
technique that is used by companies to establish a strong identity in the current market. Using
this strategy, manufactures introduce numerous varieties of the same product, thus, cover a wide
range of the commodities available. Differentiation strategy creates the brand of the company in
a manner that differentiates itself from the competition and creates a unique image that other
companies do not have (Lewis, Andriopoulos & Smith, 2014). For example, the production of
flavors by Baskin Robin has created a barrier for main competitors such as Ben & Jerry and
Kwality Walls.
In order to identify each and every person’s roles in the company, especially the
management, the administration has put the use of charts and graphs that are designed to measure
performance in each and every month. Other than graphs and charts, there is also verbal
description that the company has employed to measure or evaluate the performance of the
company. As such, it is very easy to read from the graph line which month had a decrease in
performance and which one has excelled (Gehani, 2013). The above measurement has been used
by Baskin Robins to identify challenges and correct them immediately. The company has used
these measurement objects as the first basis and has led to improvement of job design. Other
designs that have been used to facilitate the strategic plans are the SWOT analysis and the
Porter’s five forces models. These models examine the market and identify weaknesses and the
strengths of the market that has been utilized by Baskin Robin Company.
Since the company is considered the leading in one of the food industries, Baskin Robin
has ensured that the pollution is not tolerated at any cost. A campaign termed ‘we are green’ was
geared to ensure no pollution existed around the environment. The company does regular
cleaning around the town to set an example of a pollution free culture. This is not limited to
STRATEGIC ANALYSIS 5
treated fumes and carbon monoxide collection vessels that ensure a safe atmosphere for every
form of living thing.
Recommendations and Conclusion
This paper recommends that other than just using strategic plans to penetrate the
competitive market, the company should use other methods to build a strong customer base that
pose threats to any incoming company in the industry. Baskin Robin should use the merger and
acquisition model to acquire the new and incoming companies that may pose a serious threat to
growth and development of the firm. Acquisition of such companies will give room for new
ideas, new products and services, and new customers.
In conclusion, the strategic environment is one of the tools that have made Baskin Robins
excel in the food industry. First, the company has maintained a favorable business environment
through competition and local and international customer base. Secondly, the company has used
the divisional organizational structure that allows each department to work independently
towards the production of quality services and products. Additionally, Baskin Robin entered into
the market using the differential strategy that made it unique by producing products that other
companies were lacking. The performance of every department and top leadership is an
important factor of the company, hence; their performance is regularly checked using charts,
graphs, and verbal description. These factors combined have been used by the company to ensure
profitability is maximized, hence, sustainability is achieved.
STRATEGIC ANALYSIS 6
References
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Gehani, R. (2013). Innovative Strategic Leader Transforming From a Low-Cost Strategy to
Product Differentiation Strategy. Journal Of Technology Management &
Innovation, 8(2), 144-155
Hughes-Morgan, M., & Ferrier, W. J. (2014). Competitive Action Repertoires and Stock
Risk. Journal Of Managerial Issues, 26(1), 55-69
Lewis, M. W., Andriopoulos, C., & Smith, W. K. (2014). Paradoxical Leadership to Enable
Strategic Agility. California Management Review, 56(3), 58-77.
doi:10.1525/cmr.2014.56.3.5
Martin, R. L. (2014). The Big Lie of Strategic Planning. Harvard Business Review, 92(1/2), 78-
84.
McDowell, W. S., & Dick, S. J. (2013). The marketing of neuromarketing: brand differentiation
strategies employed by prominent neuromarketing firms to attract media clients. Journal
Of Media Business Studies,10(1), 25-40.
Weiss, L. B. (2011). Ice Cream : A Global History.
