If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on KRISPY KREME CASE ANALYSIS. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality KRISPY KREME CASE ANALYSIS paper right on time.
Our staff of freelance writers includes over 120 experts proficient in KRISPY KREME CASE ANALYSIS, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your KRISPY KREME CASE ANALYSIS paper at affordable prices!
KRISPY KREME DOUGHNUTS, INC.
CASE 14
CLASS CASE ANALYSIS
I. Core Problem/Issue
•Increase shelf life of a single product store concept
•Overcome the odds against long-term stock success
•Maintain revenue growth
II.Strengths, Weaknesses, Opportunity, Threats (SWOT)
•Name Recognition@ Increased health
•Product Qualityconscience awareness
•Over 70 years product @ Possible legislation
development regarding liability
•Customer Loyaltyof products with high
•Affordable productfat content
•Attractive operation@ Improve packaging to
presentationenhance 'hot, melt in
•Initiating new businessyour mouth' product
model@ Introduce recycled
•Improving manufacturingpackaging products
and distribution methods@ Improve methods to
•Improve employmentdispose of discarded
training effortscooking grease
•Develop managerial @ Increase market
training programchannels/product
•Broaden sales of coffeedistribution
and other beverage@ Standardize cleaning
productsand maintenance of
•Underdeveloped Humanall store locations,
Resource programsminimize health
•Achievement of revenuecode violations
Quotas and increased@ Reduce brick and
Earnings per sharemortar costs
•High cost of entry into@ Support internal real
new marketsestate and
•No specific missionconstruction
Statementdevelopment, reducing
•Indirect management styleexpansion costs
PAGE TWO
KRISPY KREME DOUGHNUTS, INC.
CASE 14
1.McKinsey 7-S, Appendix A
Structure
Vernon Rudolph purchased assets, goodwill, Krispy Kreme name, rights to secret donut recipe, from
Le Beau in 1.
17 Rudolph quits family business, departs to Nashville to seek new store location.
Rudolph establishes store in Winston-Salem, NC.
July 1, 17 first Krispy Kreme donuts made and delivered to local grocery retailers.
Rudolph begins retail sales fall of 17.
Rudolph partners with Mike Harding in 154. The two
begin building an equipment department and plant for blending donut mixes. Their intent was to control each step of the donut making process and to deliver hot donuts to customers as soon as they emerged from the frying and sugar glazing process.
By late 150's Rudolph and Harding had shops in 1 states.
160 all stores standardized with green roof, red glazed brick exterior, viewing windows inside, overhead conveyor, bar stools, creating the Krispy Kreme trademark look.
176 Beatrice Foods buys Krispy Kreme. Business declined due to changes, efforts to update Krispy Kreme. Customers responded negatively to the Beatrice efforts.
18 Krispy Kreme purchased by Joseph McAleer in a $MIL buyout. McAleer and associates reinstated original recipe and original trademarks. Sales begin to rebound.
PAGE THREE
KRISPY KREME DOUGHNUTS, INC.
CASE 14
1.McKinsey 7-S, Appendix A
Structure
1 Scott Livengood becomes President and Chief Operation's Officer. Livengood calls for restructuring of business model.
16 New strategy implementation increase operating size, licensed territories, select franchisees with proven experience, shift from wholesale to specialty retail
000 Sales $0M, profit a record $6M; Number of operating stores at with a plan to open another 10 stores within five years or less. Name changed from
Krispy Kreme Doughnut Corporation, merged into a new company, Krispy Kreme Doughnuts, Inc.
001 Krispy Kreme's stock begins trading on the NYSE.
Strategy
Generating revenue and profits from three sources sales at company owned stores, royalties from franchise stores and franchise fees from new store openings.
Sale of donut mixes and customized donut making equipment to franchise stores, hence the creation of KKM&D.
Focused strategic efforts cascading through the organization, taking over four years from conception to implementation.
System
KKM&D was second largest contributor to Krispy Kreme's overall operating income with attractive profit margins. KKM&D provides quality assurances for
PAGE FOUR
KRISPY KREME DOUGHNUTS, INC.
CASE 14
1.McKinsey 7-S, Appendix A
System (cont.)
consistent recipe quality and donut making by providing franchises and stores with custom lined stainless steel donut making machines, all donut mixes and other store equipment.
Future vision to include E-business, on-line pre-order of product for business meetings, school and social events.
Shared values (goals)
The company has not implemented a mission statement. The company vision is to increase retail sales and support customer loyalty by providing a quality product.
Corporate culture seems devoid of employee participation and managerial development programs.
Style
 Krispy Kreme senior management team has spent several years in developing and implementing a new business strategy; however, though the positive results are impressive, the assumption is made that the management style is indirect, relying on video training and on-line courses to convey the company message. The directive is to complete this course training by early 00.
Skills
Scott Livengood, President/CEO, started his career with Krispy Kreme in 178, when he joined the Human Relations Department. It appears that company established employee programs are non-existent, though automated training programs are available, with performance outcomes recorded and monitored.
PAGE FIVE
KRISPY KREME DOUGHNUTS, INC.
CASE 14
1. McKinsey 7-S, Appendix A
Staff
As of 00, Scott Livengood, President/CEO, has dedicated 5 years to the success of Krispy Kreme. No real indications clearly present a successor. However, in 000, Krispy Kreme had the foresight to hire Donald Henshall, to fill a newly created position of International Development. His assignment was to refine global strategy, develop capabilities and infrastructures to support expansion outside US and consider inquiries from qualified parties wanting to open Krispy Kreme stores in foreign markets.
.Financial Ratio Analysis, Appendix B
(See supplemental worksheet, "Ratio Analysis")
Profitability ratios
Return on equity-Fair to good earning power on shareholder book investment, an adequate profitability on shareholder equity.
Profit margin on sales- Good return resulting in visible bottom line results.
Activity ratios
Total assets turnover-Good turn of assets, sufficient sale volume to support asset investment. However, assets are recording via historical cost by most accounting companies. Not all new construction locations may be included in the total asset calculation.
Leverage ratios
Long term debt-to-equity ratio- Looks good, no LTD for 001.
Low debt reduces vulnerability, less risk of loss in an economy that is troubled by recession. However, lower returns are expected when the economy is in full bloom.
PAGE SIX
KRISPY KREME DOUGHNUTS, INC.
CASE 14
.Macro Forces (Broad), Appendix C
Socio-cultural changes
•Increased health awareness, implied corporate responsibility to provide and encourage healthy eating choices.
•Corporate responsibilities for environmental controls
ʒ introduction and use of recycled paper products
ʒ environmentally friendly means of discarding cooking oils
Political/Legal changes
•Increase internal awareness by establishing and adhering to a set operating procedure regarding health code violations. (Krispy Kreme NY, NBC Health Code News Report, /00).
•Possible liability issue concerning high fat content of food products resulting in potential lawsuit.
4.Porter's 5 Forces, Appendix D
•Krispy Kreme pricing structure is competitive and aligns consumer budgets.
•Strong brand identity.
•Buyer loyalty.
•Slow growth industry.
•Struggle to be a successful single product store.
•Improve assortments of coffee and beverage products.
•Develop internal real estate and development department to exclude commercial brokers and increase property acquisition effectiveness and overall improved performance during new store construction.
•Increase market channels
P Enhance product quality at delivery
P Develop business partnerships
P Increase e-business visibility
PAGE SEVEN
KRISPY KREME DOUGHNUTS, INC.
CASE 14
III.Alternative Strategies
A.Global Growth
Status Quo
Krispy Kreme is enjoying a surge in revenues and profit gains. The expert financial analyst will question the growth spurt based on past industry trends and basic number crunching. Krispy Kreme stock is still at their median, about $4.00 per share. Their revised business model of 16 is holding firm and maintaining course.
Retrench
Due to our current economic status, mid-recession, with hopes of an upward economic rebound, Krispy Kreme has down-scaled new store openings. However, their plans to enter international markets has moved forward with store openings in Quebec, London and Sydney.
Over the past year, Krispy Kreme has reopened stores in Georgia.
Prime Business to be acquired to a larger player
The cultivation of an acquisition by a larger corporation could be the long-term desire, following the in the foot steps of like competitor, Tim Horton's, subsidiary of Wendy's International.
PAGE EIGHT
KRISPY KREME DOUGHNUTS, INC.
CASE 14
IV.Recommended Strategies
1.Phase I Present
Krispy Kreme may consider stepping up the pace with improved beverage and coffee quality and selections.
At this time, beverage and coffee sales are at 10% of retail sales revenue.
Increase market awareness and penetration to subsidize
the departure of 'new store, new product' sales through local/national promotional strategies.
Improve communications and maintain relationships with retail partners, customers and employees.
.Phase II Next 1- years
Continue developing plans for international expansion and encourage new domestic marketing channels to provide an economical method of product distribution.
Maintain product quality and customer service.
Enhance employee training and career development programs to encourage employee retention.
.Phase III Next + years
Increase food selections to include a broader breakfast and lunch menu.
Develop structured real estate and development partnerships to increase efficiencies of land acquisition, new building construction and all other start up costs.
Increase overall store and franchise participation in community economical development programs.
Please note that this sample paper on KRISPY KREME CASE ANALYSIS is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on KRISPY KREME CASE ANALYSIS, we are here to assist you. Your cheap custom college paper on KRISPY KREME CASE ANALYSIS will be written from scratch, so you do not have to worry about its originality.
Order your authentic assignment and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!