Kkd Case Study

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Strategic Management Firm Paper

Krispy Kreme Doughnuts Inc.

Team Xray Summer I 2011

Table of Contents Introduction Current Situation External Environment Socio-Cultural 4 3 4 3

Task Envirornment 5 Internal Enviornment Management Marketing 9 Operations/Productions Finance 15 24 24 25 25 25 12 6 6

Critical Success Factors Strategic Problem Strategic Alternatives Recommendation Implementation Prognosis Proforma 28 29

Bibliography 30 Appendices 33


I. Current Situation Krispy Kreme Doughnuts has offered delectable doughnuts and since July 13, 1937.1 Vernon Rudolph bought a secret yeast-raised doughnut recipe from a New Orleans French chef and began selling these doughnuts to grocery stores in Winston-Salem, NC.2 Also, during these early days, Rudolph cut a hole in an outside wall at his rented building and started selling the hot original glazed doughnuts to his customers that were walking by. This hole would eventually be worldwide known as the “Hot Now Original Glazed” sign outside every Krispy Kreme store.2 Krispy Kreme Doughnuts operates a leading chain of doughnut outlets with about 650 locations throughout the US and in 21 other countries. These countries include: Australia, Bahrain, Canada, China, Dominican Republic, Indonesia, Japan, Kuwait, Lebanon, Malaysia, Mexico, the Philippines, Puerto Rico, the Republic of Korea, Qatar, the Kingdom of Saudi Arabia, Thailand, Turkey, the United Arab Emirates, and the United Kingdom.1 The shops are famous for their glazed doughnuts that are served fresh and hot out of the fryer when the hot sign is on. In addition to its original glazed variety, Krispy Kreme serves cake and filled doughnuts, crullers, and fritters, as well as hot coffee and other beverages.1 The chain includes about 275 doughnut shops and some 370 kiosks and satellite locations.1 The company owns and operates 85 locations and franchises out the rest.1 Krispy Kreme also markets its doughnuts through grocery stores and...