Running Header; KRISPY KREME CASE ANALYSIS
LECTURER’S NAME
STUDENT’S NAME
COURSE TITLE
DATE OF SUBMISSION
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Running Header; KRISPY KREME CASE ANALYSIS
Krispy Kreme Company is driven by the philosophy that is aiming to make the company the
leading in the industry through making the company to grow internationally. It is most known
that the company has unique products with total different taste. The company currently provides
doughnuts and other related foods to the customers and in this light the company receives lot of
competition from other companies within the industry but Krispy kreme has a well developed
strategy that enhances its competitive advantages to the market.
Vision statement
The company is driven by the vision that points out that Krispy aims to be the leader in terms of
doughnuts as well as the complementary products while also developing the magic moments all
over the world. This vision makes the company administer its work or operations intensively.
Mission statement
The company has also a well structured mission statement that aligns the operations of Krispy
kreme; the company believes in its consumers who are considered to be livelihood of the
company and the center of doughnut. The firm believes that there is no substitute for the quality
in its services provided to its customers, the impeccable presentation is crucial wherever krispy
kreme is sold. The company aims to produce a collaborative team power that is unexcelled but
the company focuses to cast the very best reputation in all aspects of its operations.
External opportunities and threats
The company has some potential opportunities that it has to explore intensively in making its
business operations to have stronger wings worldwide. The company is believed to continue to
grow in terms of market as it has some untapped regions of the world that will enhance the
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Running Header; KRISPY KREME CASE ANALYSIS
company’s continuous growth globally. The company has the opportunity to acquisitions,
alliances as well as co-branding that are considered to be fashionable within the industry, and in
this light Krispy is believed to have an opportunity of engaging in these activities that will add
value to its activities. The company’s external threats arises from the existence of competitions
that are triggered by the competitors such as Starbucks and Donkuns, these competitors provides
substitute products thus making the company to have a low profit margin and as such resulting to
constant price war. Some of the biggest competitors may decide to lower the price that has less
impact on their profitability. This is believed to be the greatest threat to the company.
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External Factor Evaluation
Opportunities
Customer loyalty
Underdeveloped US markets
International markets
Alliances
Manufacturing technology
Weight Rating
0.05 4
0.15 3
0.10 3
0.05 1
0.05 4
Weighted score
0.20
0.45
0.30
0.05
0.20
Threats
Strong competitors
0.15 3
0.45
Healthier product trend
0.10 1
0.10
Substitute products
0.05 2
0.10
Entry of new competitors
0.05 2
0.10
Internal strength and weaknesses
The company has a large number of strengths for instance Krspy has a recognized logo, brand
name, the company’s longevity in the market, the company also an excellent image or reputation
among its customers. Krispy has a traditional that is believed to be appealing or rather universal
as it is used by all customers regardless of differences in terms of age, gender, race or
background. The company also has the new business CEO who controls all the business
activities within the company. These are just some of the strengths of the company. On the other
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Running Header; KRISPY KREME CASE ANALYSIS
hand the company has some internal weaknesses which includes the company’s weak slogan in
this light the company has had variety of slogans over a period of time, the company has no
continuity in terms advertisement, the company has no clear audience, the loss of uniqueness.
The company has a limited or restricted menu which does not consider the breakfast crowd. The
company also has a cumbersome web navigation which is believed to be attractive and modern
in nature but is large as well as busy.
SWOT matrix
Strengths
Universal
that
Weaknesses
products Restricted menu
do
not Tiresome
Opportunities
Threats
The company has a Existence
web large
regions
of
that substitute goods
discriminate
navigation
Well known culture
Lack
New business CEO
audience
Recognizable logo
Lack of continuity in meet the needs of Regulations of foods
of
have not been tapped Aggressive
clear by other companies, competition from its
hence can tap in to major competitors
advertisement
customers
in
Weak slogan
regions
Higher prices of gas
Menu expansion
The
Internet
such by government
jobs
media economy
advertising
Joining
poor
its
The increased heath
forces consciousness
with other relevant
business
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Recommendation
The company will need to attempt the business diversification; this will call for the company to
venture in creating other products apart from foods and beverages. This strategy will make the
company to reach many customers who are not frequent consumers of the current products and
hence the value of the company will rise in terms of profit maximization as well as reaching
many customers. The company may also venture into online shopping, this will be achieved by
creating the website for the company that will be used by customers to order for or shop online.
This will enable Krispy to cover a large market globally and serve many customers and as such
increasing its market share. The company also will need to develop many customer touch points
that will serve a large number of customers in many regions. These strategies will be beneficial
to the company though are very expensive to manage, they will cost the company a little bit.
Implementation of strategies
These recommended strategies will be implemented systematically in order to realize their
effectiveness; for instance the company will have to try out the pilot plans and do some
benchmarks with some companies in the industry. The company will have to implement the
strategies considering its financial status in order to succeed in the process.
Specific annual objectives and policies
The company seeks to meet the consumer demand by the end of the year, which is to cover a
wide range of market globally. The company will employ the online shopping strategy to enable
it perform its duties well to realize this objectives.
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Running Header; KRISPY KREME CASE ANALYSIS
Krispy kreme is focusing to increase its profit margin via diversifying its products and services.
By the end of the year the company aims to raise a profit margin of $ 15 million from its entire
operations.
Evaluation
The identified strategies will be evaluated through employing internal as well as external audits
in order to examine if the company’s objectives have been met. The reviewing of the strategies
and objectives will call for the company to analyze if the objectives have been met and they were
not met during business operations the company will be required to lay other measures and
policies that will champion the company.
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References
Anderson, J. Richard. "Lessons From Krispy Kreme". Journal of Business Case Studies
(JBCS)4.4 (2011): 1. Web.
Calegari, Michael. "Financial Analysis Of Krispy Kreme’S Earnings Forecasts, Joint Venture
Investments, And Franchise Repurchases". Issues in Accounting Education 25.1 (2010): 85-118.
Web.
Holder?Webb, Lori, and Mark Kohlbeck. "The Hole In The Doughnut: Accounting For Acquired
Intangibles At Krispy Kreme". Issues in Accounting Education 21.3 (2006): 297-312. Web.
Riley, John. "Op Ed — Opinions And Editorials — A Cup Of Joe, A Krispy Kreme & Thou: Visits
To Coffeehouses In Libraries". Against the Grain 14.2 (2013): n. pag. Web.
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