Krispy Kreme Essay

Krispy Kreme Essay
Krispy Kreme
1. The accuracy Glass and Farmer forecast through years 2003 and 2004 compared with actual results. In comparing the results we look at several
key factors which include ratios and year over percent changes in two forms or methods. The first form is to compare the forecast to actual results.
By applying these two methods we can determine the accuracy of the forecast between the results and forecast itself. Analysts forecast are based on a
set of assumptions and information they perceive to be good or bad, the level of accuracy of the assumptions and perception of information will
determine the accuracy of the forecast.
The first ratio we looked at was the Sales ratio which included net income, ... Show more content on Helpwriting.net ...
The growth at the time was credited by the massive new store openings. The sales for new stores for the first week where huge in between $400,000
and $480,000 however over time they expected the sales to drop around $75,000–$100,000 a week because that is the average at the time of older
stores. Finally the last section of Krispy Kreme manufacturing and distribution, was expected to grow. KKM&D had just opened a large distribution
center on the west coast and had plans to open another one in Illinois. Since sales at the time for KKM&D were about 16.6% of total sales, they were
expected to keep up with the franchises in growth. For the year of 2003 their assumptions were correct. The stock price grew (see chart) and Krispy
Kreme expanded just as they planned. Then in 2004 the stock dropped, due to allegations of Krispy Kreme padding their shipping earnings for the
two prior years. This event skewed the outcome of the forecast. KK is still doing well however, and has slowed down its growth but is still expanding.
3. Krispy Kreme's area developers had to pay a one–time franchise fee which would be between $20,000 and $40,000. Krispy Kreme also collected a
4.5% royalty fee on all sales. A 1% contribution fee would also be collected for company advertising. This would take effect for 15 years or more
depending on if Krispy Kreme wanted to renew. In addition, Krispy Kreme did not provide
... Get more on HelpWriting.net ...

Krispy Kreme
Written Assignment
Krispy Kreme Doughnuts, Inc
I. Brief History
Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase,
including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston–Salem, North Carolina, where he opened his first Krispy Kreme shop.
The business prospered and in the 1950ВЎВ¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour.
ВЎВ§Revenues grew from less than a million in 1954 to $58 millions in 1974.ВЎВЁ(C–280) The company was bought out in 1976 by Beatrice Foods.
This hurt the name and image of Krispy Kreme. Revenues began to fall and customers were not satisfied with the ... Show more content on
Helpwriting.net ...
The market is concentrated. This is due to DunkinВЎВ¦ Donuts controlling most of the market. Krispy Kreme controls 24.6% of the market share in the
doughnut industry.
PorterВЎВ¦s 5 Forces The Rivalry among competing sellers in the industry is medium to high. KK highest competitor is DunkinВЎВ¦ Donuts who
controls most of the doughnut making market. KK must do everything in their power to remain in the position they are in or to move up. New
competitors can enter the market at any time. Mom and Pop shops open all the time that sell doughnuts and breakfast products. The barriers to entry in
the doughnut market are small. Doughnuts are simple to make and anyone could make them if they wanted to. However, mass production of
doughnuts takes a little more effort and money. KK is able to compete in a market that has many large competitors as well as Mom and Pop shops.
When analyzing the affect of substitute products you must take into effect the lifestyle of Americans. We live in a world that is on
–the–go and fast
pasted. People eat in fast food constantly. The fast food industry is constantly being threatened from substitute products. There is little bargaining
power of sellers in the doughnut industry. If one company is selling their product at a higher price than another one there is no way to know if the
customers will buy the cheaper product. There are also substitute products that can be eaten instead of doughnuts. The ingredients in doughnuts are
simple.

Essay about Krispy Kreme
3–17. How many times has the company been sold? When and by whom to whom? The company has been sold several times. First, in 1935 Ishmael
Armstrong sold Krispy Kreme to Vernon Rudolph's father Plumie Rudolph. Second, in 1976 due to Vernon Rudolph's death, the company was then
sold to Beatrice Foods of Chicago. Third, in 1982 Joseph A McAleer Sr. who led a group ofKrispy Kreme franchisee bought back Krispy Kreme from
Beatrice Foods. Finally, Krispy Kreme Inc. became a publicly traded company in 2000 by joining the NASDAQ as well as joining NYSE in 2001.
3–18. What mistakes did Beatrice Foods make after purchasing Krispy Kreme? Why wasn't Krispy Kreme a good fit for Beatrice Foods? Krispy
Kreme was a family oriented business where on ... Show more content on Helpwriting.net ...
Right there was the opportunity to negotiate which would have helped Mr. McAleer from putting the company in a huge debt that kept the company
from growing for the following ten years. On the other hand, buying an existing business is another business lesson that I noticed. Krispy Kreme was
bought and sold several times, however it's the history of the company that helped the company prosper and gain popularity.
3–21. Krispy Kreme started as a family business. How has that influenced the operation of the company? Krispy Kreme executives no longer rush to
implement new plans before the time is right. They carefully study each geographical location to make sure its market will support a full–scale
doughnut operation. Also, management spends time checking out sites for individual stores. Potential franchisee and employees are required to
maintain certain standards and are thoroughly screened.
3–22. Identify three questions you would have asked Ishmael Armstrong while performing due diligence for the potential purchase of Krispy Kreme
Doughnuts. List three questions you would ask today if you were considering becoming a Krispy Kreme franchisee,
1.How profitable has this company been since opening?
2.How long has this location been opened? How many locations have you had?
3.Are there any investors in this company or anyone that shares financial responsibility besides you?
1. May I have copies of the last 3–5 years financial statements?
2.

Krispy Kreme Case Study
KRISPY KREME DOUGHNUTS IN 2005
ARE THE GLORY DAYS OVER?
CORPORATE BACKGROUND
Company History
First getting its corporate bearings on July 13, 1937 in Winston–Salem, North Carolina, Krispy Kreme Doughnuts have seen the many stages of
financial gain and loss. Through the 1930's and 1940's the company saw regional growth and by the late 1950's Krispy Kreme had opened 29 shops in
12 states. 1960 marked an era where management Vernon Rudolph and Mike Harding began to emphasize corporate standardization through its brand
image. All Krispy Kreme shops were made with a green roof, a red–glazed brick exterior, a viewing window inside, an overhead conveyer for doughnut
production, and bar stools. Original owner Vernon Rudolph in 1973, so... Show more content on Helpwriting.net ...
In 2003, 18 employees attended the Krispy Kreme Leadership Institute to increase their capacities in senior management areas. In 2003, the company
acquired Montana Mills Bread Company for 1.2 million shares of Krispy Kreme stock (worth roughly $50 million). In 2004, Krispy Kreme
management expressed confidence in their company's potential. However, the management failed to foresee the future.
The Yeast Fails to Rise (Weaknesses)
The second half of 2004 failed to meet the managements expectations made earlier in the year. The company estimated diluted earnings per share
of $1.16 for fiscal 2005; actual diluted earnings were $0.93. The company expected sales would increase 25% in fiscal 2005; actual systemwide
sales increased 14.8%. The company divested the recently acquired Montana Mills operation. It also closed six underperforming factory stores. In the
hours following the announcement of the financial loss, the company's stock dropped 20%. On May 25, 2004, Krispy Kreme reported a $24.4
million loss for the first quarter of fiscal 2005. According to the company, the poor performance was because of trendy low–carb diets, and a $34
million write–off of its investment in Montana Mills. The stock was now down 37%. To make matters worse, the company announced that the SEC was
investigated shady accounting practices due to franchise buybacks.
COMPETITIVE ANALYSIS
Porter's Five Forces Model (Appendix 1)
INDUSTRY

Krispy Kreme Is The Best Donuts
Can you picture "riding down the street then you look over to see the big red" "hot and ready "sign on for those delicious little glazed donuts, and
you just have to stop in for a dozen but when you get in there you end up buying two dozen. Trust me, I always do. Krispy Kreme is the best donuts
in the world to me and they just melt in your mouth. Before you know it you will have ate a whole entire box by yourself. I bet you're thinking how
can I invest in something I don't know anything about this company. Well I can help you with that with a brief summary of history.
Krispy Kreme started in Winston–Salem, NC on July 13, 1937 by a man named Vernon Rudolph. Vernon received amazing recipe from a New
Orleans French chef. Vernon Rudolph started selling his delicious, remarkable donuts in a neighborhood grocery store. Rudolph and his partners
jump in full swing in business with limited resources and equipment. In the 1940's a display case was designed to show case the doughnuts. The top
counter of the display served as the countertop. Cake doughnuts as well as doughnuts on a stick were being made at the time. Vernon thought what
better way to show a variety of doughnuts by using a very attractive display. This display is something that you can't miss and will see in all Krispy
Kreme stores forever.
By 1945 a lot of company's doughnuts still stayed the same but Vernon was an outside of the box thinker. He implemented 8 different and wonderful
varieties; there was the jelly

The Marketing Environment Of Krispy Kreme
Question 1
The marketing environment of any company plays an integral role in determining its capability to develop long–lasting customer relationships. It is
important to note that businesses do not function in a vacuum. Hence, every step that an organization takes is either caused by or has repercussions on
forces in its marketing environment (Tischler, 2013). The business milieu is continually mutating and every organization, in turn, must be equipped to
deal with these changes. The smartphone industry is a good case in point with regards to constantly changing business environments. The Apple–
Samsung War is in the vanguard of the industry.
Apple had long been spearheading the industry with repeated successes of the iPhone model. Samsung ... Show more content on Helpwriting.net ...
I believe that Krispy Kreme can challenge this axiom and introduce doughnuts of different shapes and sizes. This strategy shall attract customers,
especially children, which constitute a large market for Krispy Kreme. It might just become the latest fad and work wonders for Krispy Kreme.
(d) Diversification– Although Krispy Kreme has started selling coffee and other beverages, its product mix remains limited. As a diversification
strategy, I believe Krispy Kreme can venture into something completely new– selling equipment. Its own manufacturing unit, KKM&D, can be used to
sell machinery to other companies. Since it already has the setup in place, this diversification plan does not need additional capital and can be easily

Krispy Kreme in Brazil
Founded in 1937 in Winston–Salem, North Carolina, Krispy Kreme is a chief branded retailer and wholesaler of high–quality doughnuts, including its
innovative Hot Original Glazed. Vernon Rudolph bought a secret yeast–raised doughnut recipe from a French chef from New Orleans, borrowed a
building in Winston–Salem to bake in, and began selling Krispy Kreme doughnuts to the local grocery stores. Krispy Kreme has sustained its
intensification and lengthened the design of the reliable Krispy Kreme store throughout the Southeast. They now have about 300 Krispy Kreme factory
stores and 90 satellites, and have continued growth.The speedy development fashioned challenges in making sure products were always fresh and
obtainable. With this ... Show more content on Helpwriting.net ...
This gives them a dissimilar nationwide civilization separate from its Spanish–speaking neighbors. Even though Portuguese is the main language
between the Brazilian culture there are other languages such as English, French, German, Italian, etc., which are spoken by the people.
Market Entry StrategyThe unsurpassed approach to enter into a Brazilian market would be to do franchising. Franchising is a marketing–oriented
technique of selling a business service, often to diminutive self–governing investors who have operational capital but small or no previous business
experience. Krispy Kreme has franchised Korea, Japan, China, the Philippines, Indonesia, Kuwait, Dubai, Mexico, Australia, Canada, the United
Kingdom, and the United States where the business originated. They have seemed to be victorious with aperture franchises in all of these countries and
plan to keep increasing in the upcoming. Krispy Kreme has the same franchising necessities for any person who requests to procure into the Krispy
Kreme franchise. Krispy Kreme has three franchising requirements. These requirements are:
1.Applicants are obliged to have current tenure and working experience or previous ownership and operating experience of multi–unit food service
operations in the market that you wish to expand.
2.Their franchisees ought to possess the principal adequate to fund the expansion of the market. They currently grant franchises

Financial Analysis : Krispy Kreme
Financial Summary
Krispy Kreme uses a fiscal year, which ends on the Sunday closest to January 31st. For fiscal year 2015, the year ended on February 1, 2015 and the
year had 52 weeks. It is important to note that the 2013 tax year had 53 weeks and should be taken into account when comparing financial data from
2013 fiscal year. The following company information is from the 2015 Krispy Kreme annual report.
Krispy Kreme has 111 domestic company stores. They have a total of 876 franchise stores both domestic and international. Of the 876 total franchise
stores, 709 are international. The top three international countries with the most franchises are Mexico, Saudi Arabia and South Korea. Mexico has 136
total stores of the 709. ... Show more content on Helpwriting.net ...
However, simply looking at a decrease or increase in liabilities is not enough information to assess the financial health of a company. An important
ratio to analyze is the current ratio. The current ratio is important because it will give an investor an idea of a company's ability to pay short–term debt.
The current ratio for 2014 is 2.75. The current ratio for 2015 is 2.56. Although the current ratio has decreased in 2015, overall the company has a
strong liquidity position and will be able to meet current obligations. It is also good to compare a company with their competitors in the same
industry. Dunkin' Brands is a good company to compare with Krispy Kreme as they are both in the same industry and both sell doughnuts. The current
ratio for Dunkin' Brands was 1.25 based on their 2014 annual report. This shows that Krispy Kreme has a stronger liquidity ratio than that of Dunkin'
Brands and is more likely to pay their short–term liabilities.
Now, let's look at another ratio which is key to investors, the Return on Equity Ratio. The return on equity ratio gives an idea of profitability of
owner investment and the performance of a company's management team. Net Income for 2015 fiscal year was $30,060,000. The average common
stockholder's equity in 2015 is $266,439,500. The Return on Equity or ROE for 2015 is 11.28%. Net income in 2014 was $34,256,000. Average
common stockholder's equity in 2014 was $255,762,500. The ROE for 2014 was

Krispy Kreme Case Analysis
Running head: KRISPY KREME DOUGHNUTS, INC.: A CASE ANALYSIS
Krispy Kreme Doughnuts, Inc.: A Case Analysis
Presented to
By
October 09, 2009
Table of Contents
II. Table of Contents2
III.Executive Summary3
IV.Situational Analysis5 A.Environment5 B.Industry Analysis5 C.The Organization7 D.TheMarketing Strategy9
V.Problems Found in Situational Analysis10 A.Statement of primary problem.10 B.Statement of secondary problem12 C.Statement of tertiary
problem.13
VI.Formulate, evaluate, and record alternative course(s) of action14 A.Strategic Alternative 114 1.Benefits14 2.Costs15 B.Strategic Alternative 216
1.Benefits16 2.Costs19 C. ... Show more content on Helpwriting.net ...
These strategies are still considered by Krispy Kreme to be "Brand Elements" as reported in current, annual financial reports. By keeping control of the
recipe and the doughnut–making process, they also maintained product standards and reduced, while not completely eliminating, the competition
through the uniqueness of their product. In fact, attempts to change the recipe, or even the look of the shops, in later years met with negative reactions
from customers and the company quickly returned to the original taste and feel of the "original" Krispy Kreme.
The company and its doughnut became synonymous with a particular look, taste and feeling. This emotion that became associated with Krispy Kreme,
described as "a feel–good business" and one that "created an experience" as opposed to just selling doughnuts (Peter and Donnelly, 2007), became the
core of the company's marketing strategy, and just maybe, one of the prime reasons for its subsequent struggles in the early 2000's. Selling a "feeling"

or "experience" can be a successful marketing tool. But that's just one of the tools that a successful marketing plan must encompass. The company must
also be prepared to grow with the times and change with that growth. That is, the marketing strategy of one time and

Essay on Krispy Kreme
Krispy Kreme Doughnuts, Inc.
FIN
Professor XXX XXXX
Month xx, xxxx
History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast–raised doughnuts in 1937 from a French
chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a
hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme
doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950's. When Rudolph died in 973 Beatrice Foods bought
his company and expanded it to more than 100 locations and expanded the menu to ... Show more content on Helpwriting.net ...
"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double
orders on the last Friday and Saturday of the 2004 fiscal year, explaining "that Krispy Kreme wanted to boost the sales for the fiscal year in order to
meet Wall Street projections." The witness said the manager explained that the doughnuts would be returned for credit the following week– once fiscal
2005 was under way" (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits.
Investors also later found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, "unloaded more
than 475,000 shares of Krispy Kreme stock for proceeds of $19.8 Million", (Chin, 2005) while they were fully aware sales were declining since
January of 2003. During this investigation, Scott Livengood, Krispy Kreme's CEO announced his retirement.
It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that
Krispy Kreme's accounting mess was cleaned up.
The chart below shows Krispy Kreme's performance during the years

Krispy Kreme Doughnuts Inc.
In March of 2009, the SEC filed a cease–and–desist order to Krispy Kreme Doughnuts Inc., for their actions in prior years. The corporation had
purposely inflated their earnings throughout 2003 and 2004 in an attempt to meet Wall Street expectations and retain their investors. With the over
inflation of their actual earnings, Krispy Kreme was able to present a higher earnings per share (EPS) to the public and therefore become more
favorable among investors. In this case there are three primary transactions known as "round–trip" transactions that occur. This meaning that the
company was paying set amounts to franchisee's and then expecting them to return the payments in a prearranged manner. In doing so, this would
allow Krispy Kreme to record extra pretax income and therefore inflate their profits. There were also reports of channel stuffing that surfaced from
former employees once the SEC began investigating Krispy Kreme. According to the reports Krispy Kreme would send double orders at the end of
the year in order to boost their sales and meet expectations. Those orders would then be returned and credited at the beginning of the next fiscal year.
Price–Waterhouse–Coopers were the auditors at the time and would then face serious questioning as to why they never noticed the increased shipments
at the end of each year followed by the credits when the orders were returned the next year. Looking at the three incidents that occurred each had their
own unique distinctions while

Krispy Kreme
Krispy Kreme Doughnuts, Inc. (KKD) is an exclusive brand that offers doughnuts, beverages, collectibles, and franchise opportunities. It started as a
small bakery in Winston Salem, North Carolina on July 13, 1937; and has evolved into a publicly traded firm boasting 395 retail stores and over
three million dollars in sales (second quarter 2010). This was not always the case however, by the end of 2004, the economy began to slow. This
caused businesses in competition with Krispy Kreme to flood their market hindering plans that Krispy Kreme had of expansion. Eventually they would
have to scale back due to declining sales. Consumer interest in low carbohydrate diets such as the "Atkins" and "South Beach" diet plans are somewhat
to blamed for ... Show more content on Helpwriting.net ...
Porter's Five Forces model looks into an industry and allows for deeper analysis of business strategy that is involved with each company. It strives to
identify the justifying factors that are related to five forces that determine the competitive environment and overall attractiveness of an industry. In the
case of KKD's their competitive position is put against fast food industry. Potential entrants of this industry depend on what stage of the industry life
cycle it is in at the time, however most of the time the threat of potential entrants is low. This is because the majority of the firms currently in the
industry have developed economies of scale that provides them with a cost advantage over new entrants. KKD has cost advantages due to its supply
chain and since they manufacture their own doughnut–making equipment and produce doughnut mixes their economies of scale is entirely internal
thus making the doughnut making process very efficient. Their access to distribution sells directly to the customer by means of their stores with
counters and drive–through windows. They also sell out of the stores in grocery and convenience stores. Their brand is known for their doughnut signs
as well as doughnut–making theaters where customers can come watch the doughnut making process through glass windows.
The bargaining power of suppliers is low. This is because franchise stores and company stores

Dunkin Donuts And Krispy Kreme
When it comes to the consumption of coffee and donuts, I wonder to myself who does the best job at doing so at a reasonable price and who has the
most benefits. That is when I decided that I was to put Dunkin' Donuts and Krispy Kreme side–by–side to see who would be the best in the modern
marketing world. In order to do this, I will be discussing the four P's to differentiate the companies and use other material that was discussed in class.
When I started to write this report; my original plan was to use Dunkin' Donuts and Starbucks to determine which would be better, however these
companies are far from comparison and I chose a company that would be more similar in products and service, with that company being Krispy Kreme
Doughnuts. The first order of business in choosing which company comes on top, is to figure out the marketing mix of the two. According to
oxforddictionaires.com, the marketing mix is defined as "a combination of factors that can be controlled by a company to influence consumers to
purchase its products". This is then broken down into "product, price, promotion, and place" (Grewal, 33). Using this, we will be able to break
down what each company does differently and who is more effective. The first p we will be using is product, which is defined as "an article or
substance that is manufactured or refined for sale" (oxforddictionaries.com). According to the Krispy Kreme menu on its website; they offer a wide
variety of doughnuts and coffee

Krispy Kreme Swot Analysis
I. INTRODUCTION Krispy Kreme Doughnuts, Inc. (KKD) is an international retailer of high–quality sweet treats, including its signature hot Original
GlazedВ® doughnut. It began as a small bakery in Winston Salem, NC on July 13, 1937. Since then, the company has built a global reputation for
serving the highest–quality doughnuts and great tasting coffee. Krispy Kreme Doughnuts is part of the Quick Service Restaurant (QSR) Industry,
which includes almost all companies in the "fast food" industry. Our goal in this report is to use various tools to analyze KKD and recommend
strategies for them to gain more competitive advantage in the market. First, we will observe the operational characteristics of KKD. These factors will
show ... Show more content on Helpwriting.net ...
* Lack of knowledge of what the customer wants (demographics, psychographics, behavioral segmentation). OPPORTUNITIES Opportunities are
elements that the company can exploit to its advantage. Most internationally located stores purchase their ingredients from local merchants rather than
the Krispy Kreme Supply Chain. If KKD can find a cost effective way to provide these ingredients, they can capitalize on supply chain efficiencies to
make a profit. Some opportunities for Krispy Kreme to leverage for growth would include: * Emerging markets and expansion abroad: International
expansion has proven to bring better returns than expanding domestically. Asia and the Middle East both offer KKD a good market because of high
levels of consumer sweet goods consumption and the popularity of Western brands in these International markets. * Partnerships with sports teams and
convenience stores. * Development of new menu items. * Add breakfast/healthier options to compete more directly with Dunkin Doughnuts, etc. *
Innovation. * Product and services expansion. * Local open kiosks and in–store locations in airports, bookstores, and other retail outlets. * Product
Diversification. New Markets. * Significant co–branding opportunities with local sports teams and movie theaters. * Increased snack consumption:
During the past 20 years, more Americans are going out to eat. In today's busy world, there is less time to

Krispy Kreme
CASE 8: KRISPY KREME DOUGHNUTS Krispy Kreme is a doughnut manufacturer and retailer that were founded in July of 1937. Within its
seventy year life time KK went from a small rented out building in Winston–Salem, North Carolina to a global recognizable firm. Through that time
KK has become a franchising company that has made changes within its life time. Most of the changes came in the late 1990s and early 2000s. A
few years after those changes were made KK management realized that they had made a series of mistakes that gravely hurt the company. This paper
will explain what caused the down fall of KK and how they should go about restoring their company. General Information After the company's IPO KK
announced to aggressively expand... Show more content on Helpwriting.net ...
For KK franchisees they find the required KK product mix and machinery as a burden for they do not have the opportunity to try and find the
items for cheaper from other vendor which would lower their fixed costs and help reduce the struggle to stay afloat from 2000 to 2004. The
combination of these two goal conflicts caused many of KK franchisees to become unsuccessful and thus be closed down by KK parent company.
When the closing of franchisees started KK parent company has to start reacquiring all the franchise rights, goodwill and other intangibles of the
failed franchisee. Doing this it increased those (LIABILITIES) significantly (FIGURE 4). KK was inefficient on how it used its money on its
expansion. This is seen by how the KK's return on asset of the company went from its peak 10.33 % in 2002 to 8.16% in 2003. These issues from
above can be seen when KK parent company overstimulates the market by having local media run a story about upcoming store openings and offering
free samples before the stores were officially open. In addition to the seven unsuccessful franchises in Michigan that were forced to closed down within
a few months of each other. Why Change in Preference is a Problem Along with KK management packing Franchisees

Krispy Kreme
Marketing Audit
MKT 551/Marketing Management
Jason Lamar Floyd
Professor Tonya Boddie
January 30, 2006
I. EXECUTIVE SUMMARY
Krispy Kreme 's recent success has left many individuals in awe. This study attempts to de–mystify how Krispy Kreme has come to dominate the
doughnut world and what problems lie ahead in the future. The tools used in this examination will begin with the history of Krispy Kreme. Then an
external and internal analysis will dissect Krispy Kreme 's current market and what steps Krispy Kreme is taking to compete in that market, including a
look into competitors. Krispy Kreme provides equipment, services, and supplies to franchisees and doughnuts to consumers in a fashion similar to
those of ... Show more content on Helpwriting.net ...
Customers do not pose a significant threat to Krispy Kreme because they are numerous and widely dispersed. Krispy Kreme franchises must buy from
the franchising corporation, which guarantees some level of sales. As purchasers, franchisees still have only limited bargaining power because they are
locked in through a large investment. Another significant factor is the value of the product to the customer. While food is essential for living, the
products offered by Krispy Kreme are dispensable, and for leisure consumption only. However, increased profitability in the industry suggests that
people are becoming more dependent on fast food and specialty restaurants than they have ever been.
Large and small companies compete fiercely for market share in the industry. Therefore, the prices and perceived value of products are crucial to
company performance. There are no significant exit barriers for firms in the industry. However, exiting the primary arena of competition is not
feasible for most companies because of the large franchising base and the futility of abandoning core competencies derived from years of experience.
Economic
The US economy is currently recovering from a recession. Despite the poor economic conditions, Krispy Kreme managed to grow 15% in 2001 with

$394 million in revenues ending the fiscal year (2/3/02). 10 Krispy Kreme however is in a low cost industry therefore the rise and

Krispy Kreme Is The Best Donuts
I.Introduction
Can you picture "riding down the street then you look over to see the big red" "hot and ready "sign on for those delicious little glazed donuts, and
you just have to stop in for a dozen but when you get in there you end up buying two dozen. Trust me, I always do. Krispy Kreme is the best donuts
in the world to me and they just melt in your mouth. Before you know it you will have ate a whole entire box by yourself. Krispy Kreme Doughnuts, is
one of the world 's driving retailers and wholesalers of doughnuts and bundled desserts. They were very successful when they first started up but like
any other company they also had downfalls. The Krispy Kreme grow so reckless that they almost had to file bankrupt and close some of their
profitable stores.
II.Case Profile
Krispy Kreme is an organization that regardless of its history which going back to 1937, recently encounter quickly expanding of company–owned and
franchises, Krispy Kreme has also been affected by the recent trend of customers' health habits. Customers demand a low–carb doughnuts, which this
has affected their sales, and management control to find different that worked for the company to stay ahead on the competition.
The organization also has gotten into money related–problems and legitimate inconvenience and is attempting to survive the changes in the market.
Krispy Kreme's destructive desire for growth in opening more company–owned and franchises became a problem for the company's finance.Krispy

Krispy Kreme Doughnuts, Inc. Essay
This case involves the improperly represented earnings by Krispy Kreme Doughnuts, Inc. during the fourth quarter of fiscal year (FY) 2003 and each
quarter of FY 2004. The company used improper accounting methods to avoid lowering its earnings during that period. Krispy Kreme also fraudulently
reported its earnings per share (EPS) throughout that time, which exceeded the previously stated EPS by 1 percent. An agreement to settle the charges
against Krispy Kreme was reached on March 4, 2009 when the Securities and Exchange Commission (SEC) issued a cease–and–desist order.
The SEC cited Krispy Kreme for three round–trip transactions, which involved the company paying money to a franchise with an understanding that
the franchise would later repay the money in a planned method. This would allow Krispy Kreme to record extra pretax income in an amount that was
nearly equal to the money that was initially paid to the franchisee. The first transaction resulted in additional net income of $365,000 after taxes. The
second resulted in overstatement of $310,000 after taxes, while the third resulted in an overstatement of $361,000 after taxes.
Further accounting anomalies were discovered during the testimony of a former sales manager at a store in Ohio. A regional sales manager instructed
that double orders would be sent out on the last Friday and Saturday of FY 2004 to increase the sales of Krispy Kreme in the fiscal year to meet the
projections of Wall Street. The unneeded doughnuts

Krispy Kreme Research Paper
CLA
Krispy Kreme
Road to Success
Tara Dugan
Leadership
Mr. Groff
1/11/17
Vernon Carver Rudolph was born in Marshall County, Kentucky. He was the oldest of four children born from his parents Plumie and Rethie Rudolph.
His siblings included Lewis
Rudolph, who would help found Krispy Kreme.
When he graduated high school, he went to Paducah, Kentucky with his uncle. In 1933,
Rudolph's uncle bought a doughnut shop and recipe for yeast–raised donuts from a federal employee named Joe LeBeau. This all occurred during the
middle of the Great Depression, so they moved to Nashville, Tennessee to see if they could get better business there and secure their financial future.
Things did not work out for them in Nashville, so they moved back to Kentucky ... Show more content on Helpwriting.net ...
On April 5, 2000, they went public on the NASDAQ at $21 using the ticker symbol
KREM. In February 2004, the company had sales of $665.6 million and profits of $94.7 million from almost 400 stores.
On February 19, 2007, Krispy Kreme started selling the Whole Wheat Glazed doughnut to appeal to the health conscious. The doughnut has 20
Calories in the US fewer than the original glazed and contains more fiber (2 grams vs. 0.5 grams). In January 2008, the trans fat content of all Krispy
Kreme doughnuts was reduced to 0.5 of a gram or less. The U.S. Food and Drug
Administration, allows companies to round down to 0 g in its nutrition facts label even if the food contains as much as 0.5 of a gram per serving.
Krispy Kreme benefited from this regulatory rule in its advertising campaign, touting its doughnuts as trans fat free and having 0 grams trans fat. The
first Krispy Kreme store to open outside North America was in Penrith, Australia, in
Sydney. Since it was successful they opened 53 other stores around the country. There are also locations in the United Kingdom, Australia, Lebanon,
Turkey, India, Dominican Republic,
Iceland, Kuwait, Mexico, Puerto Rico, Taiwan, South Korea, Malaysia, Thailand, Indonesia,

The Kreme Of Krispy Kreme
Vernon Carver Rudolph established Krispy Kreme Doughnuts in 1937 in Winston–Salem, North Carolina. Krispy Kreme produced doughnuts on a
much larger scale by the 1950's via an automated system. They introduced their "Doughnut Theater" in the 1980's, which allowed its customers to
watch the production process, giving them a multi–sensory experience. They were able to expand to California by 1999 because of their one of a kind
atmosphere (Krispy Kreme 2011 Annual Report).
They opened their first international store in Canada two years later and experienced rapid growth through 2004. Their success slowed over the next
five years because they could not sustain their growth. They closed 240 domestic stores, which cost $300 million. International growth boomed, and
396 new stores opened around the world. In 2011, domestic markets began to look up for the first time since 2005. Krispy Kreme is divided between
its domestic and international business and subdivided by its on–site and off–site sales with 229 domestic stores and 317 international ones (Krispy
Kreme 2011 Annual Report).
Krispy Kreme plans to remain primarily a doughnut shop since 88 percent of their sales result from its doughnuts. In 2011, Krispy Kreme had total
revenues of $362 million, a 4.5 percent increase. Doughnut sales in grocery stores have had a steady one percent annual increase while convenience
stores are expanding at a slightly faster pace of two %. As competition increased and the turn of the

Fast Food : Krispy Kreme
Ever since I was about four years old I have had an obsession with one type of fast food: Krispy Kreme. This obsession goes back to before I can even
remember everything growing up. According to my grandmother, whenever we drove by a Krispy Kreme when I was about four, I would yell the
word "doughnut" after seeing the big red circle sign with the words saying hot Krispy Kreme doughnuts now. And that is where it all started for me
and my favorite type of sweet junk food. Krispy Kreme, in particular, has had a large influence on my growing up. I am also, however, very
passionate about American doughnuts. Most kids were passionate about hot dogs, pizza, popcorn, or ice cream; but I was never interested in those
type of goodies. There has always been something that is completely irresistible to me about a good ole sweet glazed or fill doughnut and some hot
chocolate .I am not sure if it is the way the chocolate iced glazed with sprinkles doughnut that caught my eye and attention or the way the original
glazed doughnut smelted in my little mouth. Whatever it is, I have been hooked from what seems like birth.
When I was young my reward for doing something good in my grandmothers ' eyes was a trip to Krispy Kreme. I find this funny looking back since
I went all the time anyway, either on weekends or with my sister after school for a sweet little snack. It is a wonder I never blew up and gained about
thirty pounds with the amount of Doughnuts and cupcakes I ate. On the other

Krispy Kreme Essay examples
Focus of the Proposal
Krispy Kreme, a leading, well–established brand of high quality doughnuts, is still in a stage of astonishing growth potential. According to Dain
Rauscher Wessels equity analyst David Geraty, "Krispy Kreme has established itself as the quality leader in the doughnut industry and is positioned to
become the dominant industry player, with 145 retail locations in 27 states, Krispy Kreme is expected to capitalize on the brand conscious consumer's
demand for a consistent, high quality specialty food product" (Minneapolis 2000). Krispy Kreme has quickly risen to the top of the doughnut business
in a short amount of time. The company's goal since its infancy has been to satisfy customers by providing a unique experience ... Show more content
on Helpwriting.net ...
In addition, "Starbucks reported net income of $68.4 million, or 17 cents a share, compared with $55.7 million, or 14 cents a share, in the previous
year's third quarter. Revenues of one– billion dollars reflected the opening of new units and an 8–percent rise in same–store sales" (National Restaurant
News, 2003). With its same store sales increasing twice as much as Krispy Kreme in the same year, Starbucks has the proof that it will not yield to
Krispy Kreme. In order to surpass Starbucks, and the many other potent competitors, Krispy Kreme must devise new business tactics that rely on
information technologies, because that is an aspect of business which Krispy Kreme has utilized very effectively in the past.
As stated previously, Krispy Kreme's sales are very admirable, but are still, despite excellent growth, much lower then Starbucks Coffee. With such a
powerful rival, Krispy Kreme will need to devise strategies that fully utilize the potential that a well organized and operated IT infrastructure has.
Several options exist that will be able to assist Krispy Kreme. Partnerships, for example, can take much of the pressure off certain sections of the
company and allow the top tear managers to focus on more pressing concerns. With the recent upgrades in technology and computers, employees must
be able to operate the new technology without experiencing problems that could

Krispy Kreme Financial Analysis
Financial Analysis:
Krispy Kreme Doughnuts, Inc. operates as a branded retailer and wholesaler of doughnuts and coffee. It engages in the ownership and franchising of
Krispy Kreme doughnut stores, which make and sell approximately 20 varieties of doughnuts. These stores also offer a wide variety of coffees and
other beverages. As of January 31, 2010, there were 224 Krispy Kreme stores operated domestically in 37 U.S. states and in the District of Columbia
and 358 shops in other countries internationally. Of the 582 total stores, 268 were factory stores and 314 were satellites stores.
Krispy Kreme stores are classified as either a factory store or a satellite store. The traditional factory store has the capacity to produce from 4,000 ...
Show more content on Helpwriting.net ...
Adding to this, Krispy Kreme sells other ingredients, packaging and supplies primarily to company–owned and domestic franchise stores. According to
a study by Market Force Information, there is still considerable room for growth in the coffee house and snack chain industries. In a recent survey,
data shows most consumers visit a coffee shop around once a week, with 70% reporting that they go to coffeehouses or snack restaurants less than
five times a month. Many reported that they use time at a coffee or snack restaurant to reflect, or as an escape. That, paired with the fact that just 4%
of consumers reported trying a new coffeehouse or snack restaurant in the last 30 days, indicates big room for growth for chains.
When asked which coffeehouse or snack restaurants were their favorites, Starbucks was cited by 36%, Dunkin' Donuts by 28%, and Krispy Kreme by
16%. However, when the number of locations is factored into the results, Krispy Kreme wins 35% of the vote. Krispy Kreme also outscored competing
coffee shops and snack chains on eight of 10 attributes. These attributes included Quality of Food, Taste of Food/Coffee, Speed of Service, Friendly
Service, Cleanliness, Atmosphere, Accommodating, Overall Value, Healthy Choices, and Green/Sustainability. All other competitors were clustered
together with very little differentiation. Moving forward, Krispy Kreme operates within the quick service restaurant

Krispy Kreme For New Stores
Krispy Kreme was founded in 1937 by Vernon Rudolph of Winston– Salem, North Carolina. He purchased a secret yeast raised doughnut recipe from a
French chef in New Orleans. He started by delivering doughnuts to local grocery stores. When Rudolph died in 1976 Beatrice Foods took over. Due to
the change in recipe and management problems the company was bought again in 1982 by a group of Franchisees. From this point Krispy Kreme target
was to grow.
Krispy Kreme has a unique Doughnut, it is so fresh and tasty. Krispy Kreme is a successful product which brought loyal customers. Krispy Kreme has
a signature "Hot Original Glazed Doughnuts" product that is carried in a low amount of store makes it more profitable. They have built an original brand
... Show more content on Helpwriting.net ...
Surprisingly they got this all done without any advertisement.
10 most important facts:
Expanding Krispy Kreme– Cost an average $2 million, $1.35 million is the cost of inventory, equipment and anything that has to go in the store. This
is not including the cost of the location. To be able to have a Krispy Kreme Franchise you had to have the experience in the food business.
Growth of Krispy Kreme– Grew to Rapidly which potentially could have hurt them. They had certain requirements for anyone that was coming on
board with their product.
Distribution– Involved selling to Walmart, grocery stores, gas stations and convenient stores. Tried to expand the big way by breaking there limited
distribution history.
Strategy – expanding created enormous opportunity which built a manufacturing and distribution sites for product. This could make it a risk of
controlling their brand and quality.
Donuts where unique and had limited stores and product compare to Dunking Donuts when trying to expand to New England.
Stock fluctuations increased by the years and had sudden decrease all regarding their high time store market. At the same time which they had almost
over 375 stores was when the sales percentage comparable store change went negative.
Compared to Dunkin' Donuts their annual stores where nowhere compare to Krispy Kreme. Krispy Kreme had not fully expanded internationally.
New strategies needed to be created uniqueness was great

Krispy Kreme Inc.
FROM: JMSB Students
TO: Shareholders and potential investors of Krispy Kreme Doughnuts Inc.
DATE: Tuesday, January 19 2010
SUBJECT: Krispy Kreme Doughnuts Inc. Analysis
1) Identification of issues:
* Is Krispy Kreme's a healthy company? * What had happened to the company? * Why were so many investors fleeing the popular doughnut maker? *
Were the revelations about the company's franchise accounting practices sufficient to drive that much value out of the stock? * Were there deeper
issues that deserved scrutiny?
2) Recommendations
3) Quantitative Analysis
As we begin to analyze Krispy Kreme Doughnuts from a quantitative perspective, we will address our first issue; Was the company healthy? When...
This diet tries to promote weight loss and healthy living by cutting out the carbohydrates (sugars, for the most part) from their foods. Unfortunately for
Krispy Kreme, their product offering is mostly doughnuts, all of which are high in carbohydrates, and therefore on the blacklist of many Americans. In
fact, as Americans become smarter about their health and their food choices, we can expect doughnut sales across America to drop with time.
Loss of the niche aspect of the product
As Krispy Kreme rapidly expands by opening up new stores and franchises, the supply of their doughnuts has increased dramatically. Krispy Kreme's
doughnuts used to be in very high demand, in our opinion because of the scarcity of the product: knowing that you can't have the product any time,
any where, made it more desirable. Now that Krispy Kreme locations are more accessible, as well as the doughnuts being sold across grocery and
convenience stores nation wide, the product has become more of a commodity rather than the niche product it once was.
Product mix

Krispy Kreme's product mix constitutes of two things: doughnuts and coffee. This leaves the company very exposed to changes in market demand that
can be caused for example, by new and existing diets. The competition on the other hand,

Marketing Analysis
Krispy Kreme Doughnuts Incorporates principal activity is to produce and market doughnuts and related items. The operations are carried out through
three segments, company stores operations, franchise operations and Krispy Kreme Manufacturing and Distribution. The stores are both retail outlets
and highly automated producers of over twenty varieties of doughnuts. The company is a branded specialty retailer, and produces more than three
million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail
outlets throughout the country. The Krispy Kreme Manufacturing and Distribution segment sells doughnut–making equipment, mix, other ingredients
and supplies ... Show more content on Helpwriting.net ...
Perhaps the greatest threat to Krispy Kreme is the health–conscious consumer. With around 240 calories in each donut, Krispy Kreme doughnuts are by
far one of the unhealthiest treats you can eat. As a result, the once–sweet Krispy Kreme is going sour in the mouths of those who care about their
personal health. Failure to be proactive in addressing consumer health concerns, such as obesity, high cholesterol, and diabetes; could result in a
significant loss of it's 24.6% of the market share in the doughnut industry. One thing Krispy Kreme needs to work on is diversifying their product.
Competitors, such as Dunkin' Donuts', offer bagels, low–fat products, premium coffees, and newly cinnamon sticks. They offer these products to go
with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to
suit their customers.
Overall, we can say that Krispy Kreme has still a strong position in the market. Although it is a smaller company with less financial backing, it remains
competitive as its breadth of products appeals across all major demographic groups (including age and income). Its doughnuts have also stirred a
cult–like following. Yet its recent problems in strategies (over expansion, unethical accounting procedures) and management could

Krispy Kreme Swot Analysis
Type of business organization
Based in Winston–Salem, North Carolina, Krispy Kreme Doughnuts is a leading branded specialty retailer of premium quality doughnuts. In 2001, it
was estimated that it sold five million donuts a day and more than two billion a year.
Founded in 1937, Krispy Kreme operates a chain of 218 shops in 33 states and Canada that offer its signature doughnuts, including its best–known
offering, the Hot Original Glazed. Each shop has the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. Shop sites are
located worldwide
Besides serving its sweet offerings to customers, Krispy Kreme also sells its food products to supermarkets and convenience stores. In 2001,
approximately 123 of the company's stores sold to major grocery store chains like Food Lion and Acme Markets, as well as to local and national
convenience stores and select co–branding customers. Krispy Kreme also sells its ingredients and equipment to its franchisees. ... Show more content on
Helpwriting.net ...
Company store operations include company stores and consolidated joint venture stores that make and sell doughnuts and complementary products
through on–premise and off–premise sales channels. Franchise operations include the associate program and the area developer program. KKM&D
involves the buying and processing of ingredients to produce doughnut mixes. Also, this unit manufactures doughnut–making equipment that all of
Krispy Kreme's stores are required to purchase, and it makes and sells all supplies necessary to operate a Krispy Kreme store, including all food
ingredients, juices, Krispy Kreme coffee, signage, display cases, uniforms and other

Krispy Kreme Analysis
EXECUTIVE SUMMARY
We begin our report by touching on the history of Krispy Kreme. Vernon Rudolph started Krispy Kreme in 1933 when he bought a doughnut shop
from Joe LeBeau. He later established the first Krispy Kreme in Salem, North Carolina. After Scott Livengood became CEO, the company
repositioned itself and focused on being a specialty retailer, rather than a wholesale bakery. They soon began expanding rapidly throughout the United
States. This particular case took place in 2004 Krispy Kreme was beginning to run into some serious problems.
Next we discuss the situation analysis beginning with the market summary. Here we explain the demographics, psychographics, and behavioral
attributes along with the market needs, trends, and ... Show more content on Helpwriting.net ...
The newly appointed CEO, Scott Livengood, realized the problem with the sluggish sales was because of the company's current strategy.
After becoming CEO, president, and chairman of the board in 1999, the company repositioned and focused on being a specialty retailer rather than a
wholesale bakery. Krispy Kreme wanted to give their customers the "hot doughnut experience" they all knew and loved (Peter & Donnelly, 2011).
The second part of their plan was to increase the number of stores both franchises, and company owned nationally. The company began to move into
other regions. For example, in 1996 the first store in NY City was opened, and in 1999 the first store in California opened. In early 2000, the company
went public and merged into a new company called Krispy Kreme Doughnuts, Inc., instead of Krispy Kreme Doughnut Corporation. From 2000–2004,
the number of stores has proliferated from 144 to 357 and Krispy Kreme is now beginning to open in international locations, opening the first factory in
London. They now also have locations in Canada, Mexico, and Australia.
SITUATION ANALYSIS
MARKET SUMMARY:
Krispy Kreme focuses on opening their stores in large, populated cities in the United States such as Denver, Colorado, Rochester, New York, Medford,
and Massachusetts. In 2000–2004 the company has focused on opening numerous locations, and expanding into Europe with plans of

Marketing Research Krispy Kreme
GROUP MEMBER
[pic]
Usarat Rungruangrattanawadee1531007027 Chavivuth Soonthornsima 1511001933 Tirapitch Pichitnorakarn 1511007096 Arnuphap Chaiyaraj
1531007209 Pavinee Pinijkijsopon1531007530
Exclusive Summary
As you know Thailand has many brand of donut and last year have new brand come to Thailand it is Krispy Kreme Doughnut. First time that they
promote everyone interesting and exciting about that. Now it not interesting like beginning period. So, our group would like to study about customer
preference and want to know about customer satisfaction with price, place, taste and location of Krispy Kreme Doughnut.
We try to know all customer think with Krispy Kreme Doughnut... Show more content on Helpwriting.net ...
The last objective that we want to know is about competitor.
Define problem and opportunity identification
Problem is Thai people interest with Krispy Kreme lower than the beginning period, so male Krispy Kreme no more long queues although Krispy
Kreme launch more favors, but not attraction customer like beginning period. Now Krispy Kreme has not yet opens a new branch although I think
Krispy Kreme must to open new branch.
Limitation of the study
Our main target is student, so we divide into two groups for research. The first group is BU Student at City Campus and Second group is Student
around Siam Paragon and BTS (Siam station).
First limitation that we met we can't do the research inside Siam Paragon, so we must to go outside it and stand at BTS. We go to research about 5
pm; this time is the times for student go for tutor. We have some problem about student don't have more time for do our questionnaire. And we stay
at BTS, we will met student who also hurry to back home. Until we meet one group in front of Siam Paragon, we go for research them but security
guard is not allowing to research front of Siam Paragon. Second limitation that we met is some people they don't understand some question and some
people who say no with the question that we ask about last one month you ever consume Krispy Kreme or not, so it make that questionnaire fail. I

must to do more questionnaires because we need 30

Krispy Kreme Essay
Written Assignment
Krispy Kreme Doughnuts, Inc
I. Brief History
Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase,
including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston–Salem, North Carolina, where he opened his first Krispy Kreme shop.
The business prospered and in the 1950ВЎВ¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour.
ВЎВ§Revenues grew from less than a million in 1954 to $58 millions in 1974.ВЎВЁ(C–280) The company was bought out in 1976 by Beatrice Foods.
This hurt the name and image of Krispy Kreme. Revenues began to fall and customers ... Show more content on Helpwriting.net ...
Krispy Kreme went from being a wholesale baker to a specialty retailer. They used their marketing skills by stressing the ВЎВ§hot doughnut
experienceВЎВЁ that customers knew them by. It was known that by changing the companyВЎВ¦s traditions and style as was done when Beatrice
Foods took over in the 1970ВЎВ¦s that customers do not take a liking to change. Krispy Kreme knows that they always have to look to see what the
customers want and appeal to them. Krispy Kreme spends very little on advertising. They rely on word of mouth of their customers, local media
publicity, and product giveaways.
Technology speaking the company made the size of the doughnuts bigger. They also looked at the size of the stores and realized that it was not cost
efficient to have the large stores so they began to make smaller ones.
Krispy Kreme has built–in supply chain where it manufactures the mixes for the doughnuts at company plants located in North Carolina and Illinois.
They also manufacture proprietary doughnut–making equipment for use in both company–owned and franchised stores. The company receives a
substantial amount of their revenues and earnings, which are attributable to ВЎВ§KK manufacturing and distributionВЎВЁ, which is the sale of mixes
and equipment.
II.

Krispy Kreme Srategic Plan
Table of Contents
Executive Summary...........................................................................4
Company Background........................................................................ 4
Mission Statement.............................................................................4
Vision Statement............................................................................... 5
Value Statement...............................................................................5
Environmental Analysis...................................................................... 5
Internal Analysis...............................................................................6
External Analysis...............................................................................7
Differentiation Opportunity....................................................................8
Innovation Opportunity........................................................................8
Value Chain.....................................................................................9
Low Cost Opportunity............................................................................9
Grand Strategy..................................................................................10
Key Success Factors.............................................................................11
Risk ... Show more content on Helpwriting.net ...
Then Krispy Kreme will analyze the external market, identifying threats and opportunities of other firms in order to manage around that and gain an
advantage
Internal Analysis Conducting an internal analysis on Krispy Kreme Doughnuts will identify some strengths within the firm that can be used for
competitive advantage. Krispy Kreme can also grow and expand on these strengths to keep that advantage in far reach of other firms. Krispy Kreme
has produced a very favorable and high quality doughnut with an excellent visual appeal not found elsewhere. This is in part from great technology
that allows quick finishing of cooking of partially cooked doughnuts. Doughnuts are prepared in advance and cooked to a certain point (Krispy
Kreme, 2001). They are kept stored properly and are then finished cooking by the technology of the "Hot Doughnuts Now" machine. This process
helps prepare for large orders and big rushes, while still giving the customer quality and freshness. One big attraction of Krispy Kreme is there neon
sign displayed at all stores which signals "Hot Now" when the doughnuts are fresh out the oven. Customers want freshness, so Krispy Kreme tells them
when that is, without customers having to take chances on whether they will receive fresh, hot products. The innovation of this technology and idea is
a major strength of Krispy Kreme and has been used for great advantage in the doughnut industry. Along with identifying strengths

Krispy Kreme Doughnuts
KRISPY KREME DOUGHNUTS
Krispy Kreme Doughnuts, Inc. is a specialty retailer of doughnuts. The company 's business owns and franchises Krispy Kreme doughnut stores,
where it makes and sells over 20 varieties of doughnuts, including its signature Hot Original Glazed and nine other varieties. Each of its stores is a
doughnut factory with the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. The Company also sells in its stores drip
coffee, other beverages, other bakery items and collectible memorabilia such as tee shirts, sweatshirts and hats. As of February 2, 2003, there were 276
Krispy Kreme stores, of which 270 were located in 37 states in the continental U.S., five were located in eastern Canada and one was ... Show more
content on Helpwriting.net ...
An example would be bagel or muffin chains offering a healthier alternative to donuts. Krispy Kreme must be aware of these alternatives and be
prepared to adjust their product line to accommodate or lure potential customers.
Rivalry– There has been and may always be a large amount of rivalry between competing donut producers. The range of producers is vast, from small
private bakeries to larger chains such as DunkinВЎВ¦ Donuts. Donuts are easily produced from relatively inexpensive ingredients. This creates
competition and rivalry and Krispy Kreme should be look at expanding its product lines into new markets.
Core Competencies
Krispy Kreme has an excellent Marketing Department. They have kept a good reputation and established good rapport in the domestic market. Having
excellent and swift customer service is a good business strategy that led to the development of their doughnut–making machine. The original glazed is
the doughnut that most people are familiar with and is the most popular. At Krispy Kreme the glazed doughnuts are served hot off the
doughnut–making machine. A main attraction for Krispy Kreme is the ability to create your doughnuts fresh to order. If you happen to be passing by
the store and wondering whether or not the doughnuts are being served hot and fresh, just watch the sign on the outside of the store. If the "HOT" light
is on, that means that the

krispy kreme research Essay
Drive, will– power, creativity, independent, self confident, dedication, perseverance, and goal oriented. These words are some of the characteristics
that describe a successful business. A business needs drive to continue to strive and focus on the business even during the hardest of times. A good
business needs will–power to do what is in the best interest of the business even if running the business is not enjoyable anymore. Creativity is
definitely a key factor because with creativity to make the business unique, the business is just like any other corner shop, and will not get the desired
attention from the consumer. Creativity is also very important for marketing strategies. For example, America is on a low carb craze which has the ...
The company would benefit because being able to place orders online at a near by store allows the orders to be ready prior to pick up. This entails
less traffic in and out of the doughnut shop at the same time, as well as creates less wait times for customers. Viewing the doughnuts online allows the
consumer to know what they want before hand this also creates less of a wait time for other consumers. The store may also choose to set up
e–commerce for the international market. By choosing to utilize the international market Krispy Kreme would definitely benefit though use of an
untapped market.
Krispy Kreme Stores seem to have somewhat of a gimmick. They provide live entertainment while you wait for your doughnuts. Inside the store you
can see all the doughnuts are being made. You can see the doughnuts being fried glazed on the hot doughnut machine. Now, Krispy Kreme has
developed a smaller machine which allows Krispy Kreme shops to open inside the airports and shopping malls. These machines easily attract
customers to the shop. Who can resist the site of the "hot doughnuts" sign flashing in the window luring you insider the shop. This is another way
Krispy Kreme used its resource to develop cliental. The smell of the fresh baked bread also lures the customer to the Krispy Kreme counter.
A support system can assist the managers through online support with problems. Online

Krispy Kreme
Krispy Kreme Strategic Analysis:
Introduction
In 2003 Krispy Kreme was named by Fortune Magazine as "America's Hottest Brand" and in 2004 they reported net income of $50 million. However
over–expansion, an expensive store network, revelations of falsified financial reports and changing trends in diet have meant that Krispy Kreme
revenues have declined by 50% between 2005 and 2010
The strategic problem considered is to analyse Krispy Kreme's current operations and suggest recommendations for how this may be tailored for the
UK market for long–term profitability given cultural and retail differences.
Current strategy
Krispy Kreme operates 582 stores (including franchised) in 18 countries worldwide. Stores range from 4,000 to 8,000 ... Show more content on
Helpwriting.net ...
Krispy Kreme train their staff who usually have little experience or education; consequently, they pay employees minimum wage or similar and are
therefore affected by minimum wage increases. Other political factors are government actions to reduce obesity; however it is very unlikely that
government will legislate against high fat and unhealthy foods
Economic
The continued economic downturn has meant tightened consumer spending, as Krispy Kreme is a non–essential food item this may pressure sales.
Inflation is above the Bank of England target and there is upward pressure on long–term interest rates as shown by the UK treasury yield curve. An
increase in interest rates will increase the cost of capital and mean more expensive borrowing at a time that they could need to expand to compete with
rivals.
Social
UK consumers are becoming more aware about the ingredients in food, e.g. boycotting trans–fats, battery farmed poultry and mass farmed tuna. In
2008 this motivated

Krispy Kreme
QUESTION 6: GIVEN YOUR ASSESSMENT OF KRISPY KREME 'S HEALTH, WHY DID IT 'S STOCK PRICE DROP BY 80% BETWEEN
2003 AND 2004?
The question is what they do wrong for the business that is nearly more than 70 years, what makes them fall so quickly especially in year 2003 and
2004, there are at least 2,300 franchised businesses in Unites States, many that are successful, but there are difficulties in the franchise model, and
Krispy Kreme with the combination of ambitions, greed, and inexperience in managed to stumble into most of them.
As Krispy Kreme pursued its ambitious growth strategy, it was making mistakes in its finance department as well, except for the company 's plan to
finance a $35 million mixing plant in Illinois ... Show more content on Helpwriting.net ...
Krispy Kreme also rolled into the price the costs of closing stores and compensating the operating manager and principal owner of the Michigan
franchise to stay on as a consultant. Both of these expenses became part of the intangible reacquired franchise rights asset on the company 's balance
sheet, rather than costs that would have reduced the company 's reported earnings. Krispy Kreme announced in a December 2004 8–K filing that it will
need to make an adjustment of between $3.4 million and $4.8 million to properly record the compensation as an expense. A second adjustment of some
$500,000 will reverse the improper recording of interest income.
In its December 2004 8–K, Krispy Kreme revealed that there would need to be adjustments made to the accounting for the Golden Gate Doughnuts
purchase as well a total of $3.5 million to correct improperly recorded compensation expenses and management fees that had been included in the
purchase price. The company will also make a similar correction to fix errors made in the acquisition of a franchise in Charlottesville, Virginia.
The following month, the company announced that the United States Attorney 's Office of the Southern District of New York was also joining the fray
a move indicating concern about possible criminal misconduct. In April, Cooper shored up the business by securing $225

Case Study Of Krispy Kreme
Shubu Deb
234851
Business Policy MGT4950
Case study of Krispy Kreme Doughnuts (KKD)
Krispy Kreme Doughnut
Krispy Kreme is a worldwide selling doughnut chain store which was established in 1937 in North Carolina, U.S.A. The main store of Krispy Kreme
Doughnuts, Inc is located in Winston–Salem. Krispy kreme has many varieties of doughnuts, but its most famous item is the glazed doughnut.
Doughnuts of Krispy Kreme are available in many places such as Malls, Airports, Parks, grocery stores, gas stations e.t.c. worldwide. Krispy Kreme
had well balanced growth during its initial stages but its profit margin has been declining recently while having a strong competition against Starbucks,
Tim Horton's, Dunkin Donuts, and now also McDonalds.
History
Vernon Rudolph the founder of Krispy Kreme along with his uncle bought a donut shop from Joseph LeBeouf in Broad Street, Paducah, Kentucky with
a secret recipe for doughnuts in Lake Charles, Louisiana. Rudolph then moved with his ... Show more content on Helpwriting.net ...
In 1982 an unsatisfied franchisees bought Krispy Kreme back from Beatrice Foods.
Growth
In 1990's Krispy Kreme started spreading now outside Southeastern United States. Krispy Kreme then started establishing outside the U.S. the first
being in Mississauga, Ontario, Canada in 2001.By 2004, Krispy Kreme started establishing itself internationally. As of 2015, Krispy Kreme now has
more than 1000 stores world wide.

Vision Statement
We want to be the universal leader in sharing tasty doughnuts, while creating blissful and euphoric memories for everyone.
Mission Statement
We make delicious doughnuts for beautiful and ever–lasting moments for everyone in the world. We want to be the everyday life and joy of our
customers. We strive to be the best by keeping the customers in mind and giving them our most sincere service.
SWOT

Decline Of Krispy Kreme
Upon review, Krispy Kreme Doughnuts, Inc. is a struggle company continuing towards decline. In reviewing the information collected, two questions
were presented. The two questions included: the health of Krispy Kreme and the reasons for their decline. To follow will be the justification for the
decline in Krispy Kreme, alternative issues, and risks Krispy Kreme is facing. Upon reviewing the information, there are variety of issues that Krispy
Kreme. These issues including the restatement of financial statements for the fiscal year ending February 1, 2004, and the first two quarters of 2005,
their growth and saturation in outside outlets, and high reliance on profit from new franchisees. The first issuing plaguing Krispy Kreme is the
announcement ... Show more content on Helpwriting.net ...
Due to its own internal investigation and the Securities Exchange Commission, Krispy Kreme announced it would be delayed in filing their
financial reports due to their financial restatement the noted risks occur. Having to delay their financial reports, Krispy Kreme faces the risk facing
to default on a $150 million credit facility. If they default, Krispy Kreme's credit facility would be ended and they would be forced by their various
banks to repay any and all outstanding balances. With their stocks trading at under $10 a share, the issue of financial restatement, and the risk of
default has caused Krispy Kreme's stock to be on the verge being eliminated from the New York Stock

Krispy Kreme Doughnuts, Inc.
Industry Size
Krispy Kreme Doughnuts, Inc. (KKD) is an American global doughnut company and coffeehouse chain based in Winston–Salem, North Carolina.
Krispy Kreme was founded on July 13, 1937, and its parent organizations are JAB Holding Company, Cotton Parent, Inc. Krispy Kreme is leading the
market with the following products, hot regular/decaf/flavored coffee, iced coffee, donuts, bagels, and muffins. The company produces 7.5 million
doughnuts a day, 2.7 billion a year. Also, the company operates 390 stores in 45 states, as well as selling the product in supermarkets, convenient
stores. Since 2005, Krispy Kreme has expanded to other countries; it has a presence in Mexico, Canada, UK, Australia, South Korea and Spain. The
company has ... Show more content on Helpwriting.net ...
Soluble. This segment is also known as instant or freeze–dried coffee. There are three main competitors in this segment, these three companies sell
instant coffee worldwide, and they produced their own coffee, which makes it difficult for smaller companies to compete with them.
Ready–to–Drink. This segment consists of package coffee that requires no preparation, other than reheating. This type of coffee is mostly found in
vending machines, and lately canned coffee is becoming more popular in Europe.
Specialty Coffee. This segment consists of more than just traditional coffee items, this segment includes cappuccinos, lattes and espressos along with
the popular organic coffees, these specialty coffees demand premium prices. Today, more than forty percent of all coffee premium
–price, according to
Iowa State University.
Economic Climate
The economic outlook for Dunkin Donuts Brand (DNKN) which it governs Dunkin Donuts and Baskin–Robins has consistently led the industry in
operating margin. Which, operates by reducing costs of goods sold by neutralizing to store managers and it will be able to leverage economies of scale
via its consolidated manufacturing locations. Dunkin Donuts can keep up pace with its high margins parallel to the industry.
________________________________________
Forecast Earnings Growth There are multiple factors that will affect the fast–food industry. Consumer is

Krispy Kreme
KRISPY KREME
Marketing Problem/Executive Summary
This presentation will analyze the current market situation, identify possible opportunities and threats and recommend strategic actions for Krispy
Kreme Australia.
Methods of analysis include SWOT analysis, product life cycle curve, porters five forces and environmental, competitor and consumer analysis. For
these we have used information from text books, websites and online news websites.
From our analysis we have found Krispy Kreme Australia to be in a late maturity/ declining stage of product life cycle with the company going into
Voluntary administration in 2010 due to declining sales and profits.
We have concluded that these declining sales and profits are effects of Krispy... Show more content on Helpwriting.net ...
This was their main focus, especially in the new markets where people might not understand that when the light is on, it's actually signalling something
and not just a decoration. Not only this but they also focused on sampling, whereby many giveaways were done through their stores where customers
could 'try before they buy' which proved a success.
Product Portfolio
Krispy Kreme's product portfolio consists of a range of doughnuts including the original glazed doughnuts to chocolate doughnuts to filled doughnuts
to cinnamon doughnuts. They also have a range of cold and hot drinks with milkshakes, hot chocolate and coffee to name a few. Not only this but
they have also expanded into ice cream and baked goods, with 9 flavours of ice cream varying from vanilla to choc honey nougat, and baked goods
consisting of pastries like croissants, gourmet rolls, and egg and bacon rolls.
Marketing Mix Product
Krispy Kreme's marketing mix focuses on their product more than any of the other 4P's. Australia was the first country outside of America to produce
the iconic Original Glazed doughnuts. All Krispy Kreme doughnuts are made fresh daily at the factories in each state. When making the doughnuts in
these stores, the "Hot Now" neon light is lit up so customers know that they will get fresh doughnuts that have just been made.
Krispy Kreme also offer a range of quality treats including 15 signature doughnut varieties,

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