Krispy Kreme case study

Naglaa Mahmoud 20225644

Vision Statement (actual)

To be the global leader in doughnuts and complementary products while creating

magic moments worldwide.

Vision Statement (Proposed)

To be the global leader in the doughnuts and complementary products with

delicious taste and magical moments for our customers.

Mission Statement (Proposed).

To make the most awesome doughnuts and beverages (2)on the planet and
domestic stores in los angles (3) every single day .Our Consumers are our
lifeblood, the center of the doughnut (1). Providing the best quality in our service
(7) by mechanized process with the introduction of an automatic dough cutter (4).in
our service with impeccable presentation when we sold our doughnuts also to
maintain financial growth ( 5).Producing a collaborative team effort with the best
possible image in all what we do (8).being the number one as deliver on our
commitments (6).Coaching our team to get better result (9).
1. Customer

2. Products or services

3. Markets

4. Technology

5. Concern for survival, profitability, growth

6. Philosophy

7. Self-concept

8. Concern for public image

9. Concern for employees

 Krispy Kreme case study
Naglaa Mahmoud 20225644
External Audit

CPM – Competitive Profile Matrix

Dunkin'
Krispy Kreme Donuts Starbucks

Weight Weight Weight

Critical Success Weig Rati ed Rati ed Rati ed
Factors ht ng Score ng Score ng Score

Advertising 0.10 3 0.3 4 0.4 3 0.3

Service / Product
Quality 0.11 4 0.44 3 0.33 3 0.33

Price
Competitiveness 0.07 3 0.21 3 0.21 2 0.14

User Friendly
Website 0.05 2 0.1 3 0.15 3 0.15

Financial Position 0.07 2 0.14 3 0.21 4 0.28

Customer Loyalty 0.09 2 0.18 4 0.36 4 0.36

Product Lines 0.05 2 0.1 3 0.15 3 0.15

Market Share 0.12 2 0.24 3 0.36 3 0.36

Customer Service 0.10 4 0.4 3 0.3 2 0.2

Technology 0.09 2 0.18 3 0.27 3 0.27

Employees 0.03 1 0.03 2 0.06 3 0.09

Global Expansion 0.12 1 0.12 3 0.36 4 0.48

Total 1.00 2.44 3.16 3.11

Opportunities

1. Since May 17, 2001, Krispy Kreme has been listed on the New York Stock
Exchange under the current symbol KKD.
 Krispy Kreme case study
Naglaa Mahmoud 20225644
2. KKD opened its first store in Canada in 2001. By 2004 Krispy Kreme was
also operating stores in Australia and South Korea.
3. A new need in the market.
4. Popularity of premium coffee drinks is growing.
5. Expansion is in the Middle East and Asia. The rationale for expanding in
these areas is their favorable demographics,
6. Krispy Kreme sells donuts in major retail outlets such as in supermarkets,
convenience stores, mass merchants, and other retail establishments.

Threats

1. Sluggish US economy is causing a decrease in consumer spending.

2. Year 2004 began a period of steep decline for Krispy Kreme.
3. Rise in the fuel cost, the price of raw materials such as sugar, coffee, wheat,
cooking oil are on the rise.
4. Dunkin Donuts and other competitors diversified their menus and beverages
that they are offering to their customers.
5. Starbucks have more than store branches worldwide than Krispy Kreme
Doughnut.
6. A more health-conscious public has tended to shy away from glazed
doughnuts, which have the perception of many calories and carbohydrates.
7. Dunkin and Starbucks have a strong loyalty brand towards its quality.

Strength

1. Both doughnuts and beverages are sold. The majority of the sales outside
the United States are on-premises.
2. End of the last fiscal year, Krispy Kreme was operating 523 stores around
the world
3. Two types of Krispy Kreme stores.
4. Strong sales channels they have higher production capacities. There were
19 commissaries worldwide with six operated by Krispy Kreme as of
February 1, 2009.
5. Krispy Kreme controls the image projected in all stores (brand).
6. KKD stores are equipped with ovens and heating equipment, allowing the
consumers to have hot doughnut experience.
 Krispy Kreme case study
Naglaa Mahmoud 20225644
7. Mix manufacturing at Winston-Salem supporting the high quality of Krispy
Kreme doughnuts.
8. Point of sale (POS) system provides headquarters and permits store to
communicate with each other.

Weakness

1. Closing of several franchise licenses in Great Circle Family Food and other
large convenience store chains
2. For the last three fiscal years, KKD has posted an operating loss
3. In early 2008 continues to experience declining sales in the United States.
there are only two distribution centers (Winston Salem and Los Angeles)
causing the distribution costs to high.
4. KKD Is planning to open an additional 170 stores which could drain the
company’s financial resources during this economic downtime.
5. Limited amount of healthy menu selections.

External Factor Evaluation (EFE) Matrix

Key External Factors

Opportunity Weight Rating Weighted Score

1. Since May 17, 2001, Krispy Kreme has been 0.05 2 0.1
listed on the New York Stock Exchange under
the current symbol KKD.

2. A new need in the market. 0.09 4 0.36

3. Popularity of premium coffee drinks is 0.08 4 0.32
growing.
4. Expansion is in the Middle East and Asia. 0.10 3 0.3

5. Markets outside the United States are a great 0.12 4 0.48

source of growth for KKD
6. Krispy Kreme sell daunts in major retail 0.09 3 0.27
outlets (super markets .stores)
 Krispy Kreme case study
Naglaa Mahmoud 20225644

Threats
1. Sluggish US economy is causing a decrease in 0.09 4 0.36
Year 2004 began a period of steep decline for
Krispy Kreme.
steep decline for Krispy Kreme.
2. Rise in the fuel cost, the price of raw materials 0.05 2 0.1
such as sugar, coffee, wheat, cooking oil are on
the rise.
3. Dunkin Donuts and competitors diversified 0.06 3 0.18
their menus and beverages that they are
offering to their customers.
4. Starbucks have more than store branches 0.07 3 0.21
worldwide than Krispy Kreme Doughnut.
5. .A more health-conscious public has tended to 0.12 1 0.12
shy away from glazed doughnuts, which have
the perception of many calories and
carbohydrates
6. Dunkin and Starbucks have a strong loyalty 0.08 4 0.32
brand towards its quality.
Total 1 3.12

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors
Strength weight Rating Weighted Score
1. Both doughnuts and
beverages are sold.
0.09 3 0.27
The majority of the
sales outside the
United States are on-
premises.

2. End of the last fiscal 0.10 4 0.4

year, Krispy Kreme
was operating 523
stores around the
world
3. Two types of Krispy
Kreme stores.
0.07 4 0.28
4. Strong sales channels
they have higher
0.09 3 0.27
production capacities.
 Krispy Kreme case study
Naglaa Mahmoud 20225644
There were 19
commissaries
worldwide with six
operated by Krispy
Kreme as of February
1, 2009.
5. Krispy Kreme controls
the image projected in
0.06 4 0.24
all stores (brand).
0.05 3 0.15
6. KKD stores are
equipped with ovens
and heating
equipment, allowing
the consumers to have
hot doughnut
experience.
7. Mix manufacturing at 0.06 4 0.24
Winston-Salem
supporting the high
quality of Krispy
Kreme doughnuts.

8. Point of sale (POS) 0.05 3 0.15

system provides
headquarters and
permits store to
communicate with
each other.
we
akness
1. Closing of several 0.09 3 0.27
franchise licenses in
Great Circle Family
Food and other large
convenience store
chains

2. For the last three fiscal

years, KKD has
0.12 1 0.12
posted an operating
loss
3. Early 2008 continues
to experience
0.09 3 0.27
declining sales in the
US. only two
distribution centers
(Winston Salem and
Los Angeles) causing
 Krispy Kreme case study
Naglaa Mahmoud 20225644
the distribution costs
to high.
4. KKD Is planning to
open an additional 170
0.09 1 0.09
stores which could
drain the company’s
financial resources
5. Limited amount of 0.04 2 0.08
healthy menu
selections
Total 1 2.83

SWOT Strategies

Strength
1. Both doughnuts and
beverages are sold. The
majority of the sales outside
the United States are on-
premises.
2.End of the last fiscal year,
Krispy Kreme was operating
523 stores around the world
3. Two types of Krispy Kreme
stores.
4. Strong sales channels they
have higher production
capacities. There were 19
commissaries worldwide with
six operated by Krispy Kreme
as of February 1, 2009.
5.Krispy Kreme controls the
image projected in all stores
(brand).
6.KKD stores are equipped
with ovens and heating
equipment, allowing the
consumers to have hot
doughnut experience.
7.Mix manufacturing at
Winston-Salem supporting the
high quality of Krispy Kreme
Weakness
1.Closing of several franchise
licenses in Great Circle Family Food
and other large convenience store
chains
2.For the last three fiscal years, KKD
has posted an operating loss
3.In early 2008 continues to
experience declining sales in the
United States. there are only two
distribution centers (Winston Salem
and Los Angeles) causing the
distribution costs to high.
4.KKD Is planning to open an
additional 170 stores which could
drain the company’s financial
resources
5.Limited amount of healthy menu
selections

opportunity
1.Since May 17, 2001, Krispy
Kreme has been listed on the New
York Stock Exchange under the
current symbol KKD.
2. A new need in the market.
3. Popularity of premium coffee
drinks is growing.
4. Expansion is in the Middle East
and Asia.
5.Markets outside the United States
are a great source of growth for
KKD
6.Krispy Kreme sell daunts in major
retail outlets (super markets .stores)
Threats
1. 1.Sluggish US economy is
causing a decrease in Year
2004 began a period of steep
decline for Krispy Kreme.
2. Rise in the fuel cost, the price
of raw materials such as
sugar, coffee, wheat, cooking
oil are on the rise.
3. Dunkin Donuts and
competitors diversified their
menus and beverages that
they are offering to their
customers.
4. Starbucks have more than
store branches worldwide
than Krispy Kreme
Doughnut.
5. A more health-conscious
public has tended to shy
away from glazed doughnuts,
which have the perception of
many calories and
carbohydrates
6. Dunkin and Starbucks have a
Krispy Kreme case study
Naglaa Mahmoud 20225644
doughnuts.
8. Point of sale (POS) system
provides headquarters and
permits store to communicate
with each other.
SO strategy WO strategy
1-Expand more and try to 1-Providing a healthy menu and
open new branches outside the distributing it in the supermarket and
united states to increase profit stores to suit all tastes.
and maintain growth it can be W5;O6
in (Middle East)
S1;O2;O5;O4 2-open a 3 or 4 distribution centers
which will decrease the distribution
2-open more places in the costs it can be outside the US in the
supermarket and stores that countries that have less materials and
allow customers to see and try location costs.
hot donuts which will increase W3,O5
profits ,
S6,O6
S-T Strategies W-T Strategies
1-Providing also hot 1-Provide a healthy doughnuts to fit
doughnuts with low calories all tastes .
and carbohydrates using best W5,T5.
quality.S6,T5
2-try to increase loyalty of its
customers by decrease giving 2-don’t open a lot of branches unless
special discounts, free examine the financial situation.
products, and special offers W4,T2
and efficient customer service.
S5,S6,T6.
3-it could diversify its menu
and beverages adding new
flavor.
S1,T3.
 Krispy Kreme case study
Naglaa Mahmoud 20225644
strong loyalty brand towards
its quality.