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Galandar Mammadli
Prof. Dr. Cemil Ulukan
Business Policy and Strategic Management
Anadolu University
History
1933,
Paducah,
Kentucky
1976, Beatrice
Foods
Company
2001, First
Store, Outside
US
2013, first
Store in India
Scope Dougnhuts Coffee Other Snacks
About Krispy Kreme
Consumers are our lifeblood, the center of the doughnut
There is no substitute for quality in our service to consumers
Impeccable presentation is critical wherever Krispy Kreme is sold
We must produce a collaborative team effort that is unexcelled
We must cast the best possible image in all that we do
We must never settle for “second best;” we deliver on our commitments
We must coach our team to ever-better result.
Vision and Mission
My Suggestion
Mission: providing
people with sweet,
tasty, peaceful
memories.
Vision: To enable
every person on
earth to meet with
this taste.
Objectives for 3 years
Reach 2000
stores
around the
world
7 new
countries
Increase
Outside US
Revenues to
30%
Increase
amount of
Factory
shops
Create
different
types of
products
Vision: To be always the
desired place for great coffee
beverages and delicious
complementary donuts &
bakery products to enjoy
with family and friends.
Mission:
•​To be the leading provider of the
wide range delicious beverages &
baked product around the kingdom
in a convenient, relaxed, friendly
environment, that insures the
highest level of quality product and
best value for money.
•We provide our guest, the elegant
service and unforgettable
experience to meet their
expectations in every single visit.​
Competitors` Vision and Mission
Competitors` Vision and Mission
• We foster the strengths within
youth and empower them to
pursue a life without limits.
• To be the quality leader in
everything we do.
TİM HORTONS
• Mission: To inspire and nurture
the human spirit – one person,
one cup and one neighborhood
at a time
STARBUCKS
Organizational Chart
Ceo
CMO
Organizational
Communication
Department
CFO R&D
Franchise
Committee
International
Relations
Legislative
Department
My Suggestion
Good Points
Distribution Convenience
Backward integration
Social Responsibility
Dougnut Theater
Forward integration
Product Placement
Bad Points
Globalization-glocalization
Product Development
Innovation
Positioning issues outside US
Marketing Strategy
What's inside the box is extremely important to us. We realize, however, that the
most important ingredient in making great doughnuts is our people. We hire
great people so we can make great doughnuts.
Firm infrastructure: Company stores, doughnut theathre,
trucks,
Managing system: a chairman, a ceo, a cmo, a cio
Firm format is stock joint company
Hot Dougnut Machine, mobile reward program
Contracts with some other coffee shops, Backward integration
Quality
control,
coffe, flour,
some
materials
Manufacturin
g,
Packaging,
production
Move
finishing
goods with
trucks
Service
MARGIN
Major Competitors
Market Share
43%
27%
5%
2%
23%
Market Share
Starbucks Dunkin Krispi Tim Hortons Others
Competitive Matrix Model
Factor Score rate Weight Rank Score weight score rate weight score Rate
Brand Reputation 0.05 2 0.1 0.06 3 0.18 0.1 3 0.3 0.1 3 0.3
Range of Products 0.01 1 0.01 0.01 1 0.01 0.1 3 0.3 0.01 2 0.02
Market Share 0.1 3 0.3 0.2 3 0.6 0.2 4 0.8 0.15 4 0.6
Customer retention 0.15 3 0.45 0.2 3 0.6 0.2 4 0.8 0.2 4 0.8
Promotion 0.15 4 0.6 0.03 2 0.06 0.05 1 0.05 0.05 3 0.15
Distribution 0.2 4 0.8 0.2 3 0.6 0.05 1 0.05 0.2 4 0.8
Online Presence 0.05 2 0.1 0.1 4 0.4 0.05 2 0.1 0.05 3 0.15
Product Placement 0.15 3 0.45 0.05 1 0.05 0.15 4 0.6 0.05 1 0.05
Low cost 0.09 2 0.18 0.05 1 0.05 0.01 1 0.01 0.1 2 0.2
Uniqueness 0.05 2 0.1 0.1 2 0.2 0.09 2 0.18 0.05 2 0.1
StarbucksTim HortonsKrispi Kreme Dunkin
3.09 3.192.75 3.32
Strength Weakness
History and experience Strategy issues
Focus on speci Glocalization abilities lack
Strong Company Reputation around the
world
Low income from outside US
Backward integration Much Wholesale income
People`s Trust about Freshness Non-Durable Product
Convenient distribution Communication and Digital Marketing
Strong Relations to spread its products Raw material prices go upward
Forward integration 89% of sells are from dougnuts
strong financial structure Easily Copied Specifications
Market penetration experience Low income in comparing with competitors
SWOT
SWOT
Opportunities Threats
Increasing Doughnut Consumption Healthy Life industry
Globalization Competition Disadvantage
Factory Shops Too much Money for attitude changing
Technological integration İncreasing Raw materials` prices
Digital Channels Shiftings are slow
Artificial Intelligence Government regulations about healthy
consumption
Robotic servants Failure in technological production
Customer experience
Recomendations
There is a gap
between
development
of technology
and its
application to
this sector. So
Krispy should
focus on
these gaps.
Uniqueness of
products is
very easy to
copy. Krispy
should pay
attention to
create some
criterias, that
is not
copiable.
Should
arrange some
parts of its
income to
R&D
departments.
Should
increase its
own factory
retail shops.
Should
Diversify its
products to
different
segments.
First of all,
healthy and
unhealthy,
secondly for
different age
groups,
thirdly,
premium and
regular.
Increase
amount of
other
products
percentage in
total income.
New Products
and new
markets, the
best method
is to watch
market
leader-
Dunkin.

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Krispy Kreme Doughnuts- Strategic Management Analysis

  • 1.
  • 2. Galandar Mammadli Prof. Dr. Cemil Ulukan Business Policy and Strategic Management Anadolu University
  • 3. History 1933, Paducah, Kentucky 1976, Beatrice Foods Company 2001, First Store, Outside US 2013, first Store in India Scope Dougnhuts Coffee Other Snacks About Krispy Kreme
  • 4. Consumers are our lifeblood, the center of the doughnut There is no substitute for quality in our service to consumers Impeccable presentation is critical wherever Krispy Kreme is sold We must produce a collaborative team effort that is unexcelled We must cast the best possible image in all that we do We must never settle for “second best;” we deliver on our commitments We must coach our team to ever-better result. Vision and Mission
  • 5. My Suggestion Mission: providing people with sweet, tasty, peaceful memories. Vision: To enable every person on earth to meet with this taste.
  • 6. Objectives for 3 years Reach 2000 stores around the world 7 new countries Increase Outside US Revenues to 30% Increase amount of Factory shops Create different types of products
  • 7. Vision: To be always the desired place for great coffee beverages and delicious complementary donuts & bakery products to enjoy with family and friends. Mission: •​To be the leading provider of the wide range delicious beverages & baked product around the kingdom in a convenient, relaxed, friendly environment, that insures the highest level of quality product and best value for money. •We provide our guest, the elegant service and unforgettable experience to meet their expectations in every single visit.​ Competitors` Vision and Mission
  • 8. Competitors` Vision and Mission • We foster the strengths within youth and empower them to pursue a life without limits. • To be the quality leader in everything we do. TİM HORTONS • Mission: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time STARBUCKS
  • 11. Good Points Distribution Convenience Backward integration Social Responsibility Dougnut Theater Forward integration Product Placement Bad Points Globalization-glocalization Product Development Innovation Positioning issues outside US Marketing Strategy
  • 12. What's inside the box is extremely important to us. We realize, however, that the most important ingredient in making great doughnuts is our people. We hire great people so we can make great doughnuts. Firm infrastructure: Company stores, doughnut theathre, trucks, Managing system: a chairman, a ceo, a cmo, a cio Firm format is stock joint company Hot Dougnut Machine, mobile reward program Contracts with some other coffee shops, Backward integration Quality control, coffe, flour, some materials Manufacturin g, Packaging, production Move finishing goods with trucks Service MARGIN
  • 14. Market Share 43% 27% 5% 2% 23% Market Share Starbucks Dunkin Krispi Tim Hortons Others
  • 15. Competitive Matrix Model Factor Score rate Weight Rank Score weight score rate weight score Rate Brand Reputation 0.05 2 0.1 0.06 3 0.18 0.1 3 0.3 0.1 3 0.3 Range of Products 0.01 1 0.01 0.01 1 0.01 0.1 3 0.3 0.01 2 0.02 Market Share 0.1 3 0.3 0.2 3 0.6 0.2 4 0.8 0.15 4 0.6 Customer retention 0.15 3 0.45 0.2 3 0.6 0.2 4 0.8 0.2 4 0.8 Promotion 0.15 4 0.6 0.03 2 0.06 0.05 1 0.05 0.05 3 0.15 Distribution 0.2 4 0.8 0.2 3 0.6 0.05 1 0.05 0.2 4 0.8 Online Presence 0.05 2 0.1 0.1 4 0.4 0.05 2 0.1 0.05 3 0.15 Product Placement 0.15 3 0.45 0.05 1 0.05 0.15 4 0.6 0.05 1 0.05 Low cost 0.09 2 0.18 0.05 1 0.05 0.01 1 0.01 0.1 2 0.2 Uniqueness 0.05 2 0.1 0.1 2 0.2 0.09 2 0.18 0.05 2 0.1 StarbucksTim HortonsKrispi Kreme Dunkin 3.09 3.192.75 3.32
  • 16. Strength Weakness History and experience Strategy issues Focus on speci Glocalization abilities lack Strong Company Reputation around the world Low income from outside US Backward integration Much Wholesale income People`s Trust about Freshness Non-Durable Product Convenient distribution Communication and Digital Marketing Strong Relations to spread its products Raw material prices go upward Forward integration 89% of sells are from dougnuts strong financial structure Easily Copied Specifications Market penetration experience Low income in comparing with competitors SWOT
  • 17. SWOT Opportunities Threats Increasing Doughnut Consumption Healthy Life industry Globalization Competition Disadvantage Factory Shops Too much Money for attitude changing Technological integration İncreasing Raw materials` prices Digital Channels Shiftings are slow Artificial Intelligence Government regulations about healthy consumption Robotic servants Failure in technological production Customer experience
  • 18. Recomendations There is a gap between development of technology and its application to this sector. So Krispy should focus on these gaps. Uniqueness of products is very easy to copy. Krispy should pay attention to create some criterias, that is not copiable. Should arrange some parts of its income to R&D departments. Should increase its own factory retail shops. Should Diversify its products to different segments. First of all, healthy and unhealthy, secondly for different age groups, thirdly, premium and regular. Increase amount of other products percentage in total income. New Products and new markets, the best method is to watch market leader- Dunkin.