THE QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM):STRATEGIC ALTERNATIVES: 1 2 Concentrate solely on building franchise in Asia, Middle East and

Europe. Introducing new product lines. (healthy menu options).

KEY FACTORS Opportunities: 1.Population has increased by 23.6% in 2007 2. Globalization 3. Research development in consumer needs. 4. Stable Political Situation 5. A large Working Class 6. Moderate Tax Structure in Winston-Salem** 7. Employment rate rose by 1.4% 8. Large untapped Market in South America, Africa and Asia 9. Appreciation of Dollar w.r.t. the tapped markets Threats: 1. Decreasing Market trend in NASDAQ 2. Population living below the poverty line is 11.2%* 3. Recession hits the economy in 2007 4. Strong Competitors like Dunkin Doughnuts and Starbucks 5. More Health conscious consumers

WEIGH T 0.03 0.08 0.04 0.06 0.09 0.03 0.02 0.08 0.05

AS 4 4 3 3 4 4

TAS 0.12 0.32 0.12

AS 2 3 4 1 -

TAS 0.06 0.24 0.16 0.09

0.32 0.2

2 3

0.16 0.15

0.09 0.05 0.08 0.09 0.15

4 3 4 2

0.36

2 -

0.18

0.24 0.36 0.3

2 3 4

0.16 0.27 0.6

6. Increasing costs of ingredients, utility and fuel

0.06 1.00

Strengths: 1. High Quality Doughnuts 2. Extensive Expansion across countries like Canada, Australia and South Korea 3. Usage of High tech Machines for standard quality i.e. usage of doughnut cutter, doughnut mixer, and doughnut making equipment 4. Strategy of hot doughnut experience attracting customers 5. A good supply chain and Distribution channel 6. Strong brand identity

weigh t 0.09 0.07 0.09

AS 4 2

TAS

AS -

TAS

0.28 0.18

2 4

0.14 0.36

0.08 0.07 0.07

3 3 4

0.24 0.21 0.28

2 2 3

0.16 0.14 0.21

Weaknesses: 7. Lack of good management shown by the high employee turnover ratio 8. Terminating Franchise license creating a bad reputation of the company in the market 9. Debt to total asset ratio increased from 0.31 to 0.52 10. Company is facing continuous losses in the past three years 11. Less concentration on existing product lines by introducing products for health conscious customers 12. Declining stock price from $40 to $10 13. Not enough items in the menu

0.09 0.08

3 0.24

2 0.16

0.05 0.09 0.08

2 2 0.18 0.16

3 1 0.27 0.08

0.08 0.06

3 3

0.24 0.18

1 4

0.08 0.24

1.00

4.53

3.91