Krispy kreme doughnuts. 2006, is a turnaround possible?

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Krispy kreme doughnuts

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Krispy kreme doughnuts. 2006, is a turnaround possible?

  1. 1. Krispy kreme Doughnuts Antoine Marion Bayou Julie Hazet Charles Héberlé Camille Helson Yohann
  2. 2. Summary1. Krispy kreme Doughnuts presentation1. Internal and external analysis1. Decline2. Recommendations
  3. 3. 1. Firm presentation 1933 creation (Vernon Rudolph) 1950s 29 shops, 12 states 1960 Standardization 1982 bought by Joseph McAleer (develops franchise) 1990s agressive expansion strategy 2001 Digital java acquisition (coffee/beverages) 2000-2004 Growth 2005 Decline A quick and effective Growth
  4. 4. Problem Statement 2006, Is a turnaround possible?
  5. 5. 2. Internal and external analysis • PEST • PORTER • MAPPING • SWOT • STRATEGY • FINANCIAL ANALYSIS
  6. 6. Pest Opportunities Threats • Health campaign Politic • Foreign politic • Consumer’s will to save • CrisisEconomic money • purchasing power • Competition • Leisure time • Loyalty decrease Social • Change in consumption habits • Innovation in theTechnologi production c • New ways of sellingMain factor of change: consumption habit
  7. 7. Porter Analysis Threaten new entrants : High + Customers :Suppliers : Competitors High Low High ++ --- +++ Substitutable Product: High ++ High Competitive market
  8. 8. Mapping Quality + Diversification + Focus on the brand key product
  9. 9. SWOT Analysis Strengths Weaknesses • Quality • Communication • Loyalty • Monitoring & Control Opportunities Social network Event• New ways of selling• Leisure time Threats Comsumption• Health campaign Bad results• Competition Experience• Change in consumer’s habits
  10. 10. Key Success Factors • Historical basic product with many variations + coffee • Vertical Integration principle • Customer’s experience• Diversify the sales locations• Franchise
  11. 11. Strategy (until 2005)BUSINESS STRATEGY 1 Market 1 Product DIFFERENTIATION A unique experience • Atmosphere • Emotional link
  12. 12. Financial observations• Revenue: 2000 to 2004: + 202%• Stores: 1998 to 2004: + 237 2005• Revenue Q4 2005 to Q3 2006: -15%• 88% of the share• Stores: - 30 DECLINE
  13. 13. 3. Decline (End 2005)WHY? • Lack of control in the accounting results • Unqualified managers • Campaign against obesity • Inappropriate products
  14. 14. 4. RecommendationsA new strategy RECOVERY STRATEGY • corrective measures (Financial monitoring) • long term vision (repositioning)
  15. 15. 4. RecommendationsStrategy Implementation• Establish a regular BP to control accounting• Hire qualified people• Focus on the successful stores• Communication campaign
  16. 16. 4. Recommendations• Adaptation to consumers desires• Healthy products diversification• Franchise in harmony with the brand philosophy A Turnaround is possible! Control & Monitor the success
  17. 17. Thank you for your attention!

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