Strategic management - Case study on Krispy Kreme Doughnuts
Transcript of Strategic management - Case study on Krispy Kreme Doughnuts
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Case Study
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Group Members
• Zeeshan Rafique 994
• Sayed Hassaan Mehmood 1014
• Sajid Hamayon 1031
• Waseem Akhtar 1049
• Umer Irfan 1050
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Introduction and History
• Ishmael Armstrong bought a doughnut shop from a New Orleans chef named Joe Lebeau
• Ishmael Armstrong passed the recipe down to his nephew
• Krispy Kreme at first sold its doughnuts only to grocery stores, and began selling directly to customers.
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Cont..
• New Owners changed the recipe to cut costs but then had to restore it for place of honor.
• With more than three hundred stores in the United States and Canada, Krispy Kreme is now an American icon.
• It’s name is still a mystery because it doesn’t sell crispy and cremy doughnuts.
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Environmental Analysis
• Brand recognition
• Supply chain
• Wide demand
• Vertical integration
• Quality of product
• Machine technology
• Limited product line
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Environmental Analysis
• Popularity of coffee shops
• Popularity of American foods in foreign markets
• Entertaining opportunities
• Technological advancements
• Channel expansion possibilities
• Competitors
• All-natural, organic, healthy eating trends
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S.W.O.T Analysis
• Affordable, high-quality doughnuts with strong visual appeal and kind taste
• "Hot Doughnuts Now" encourages people outside the store to purchase
• Market research shows demand increases to all group of people of different age and income
• Vertical integration helps to ensure high quality product• expanded in 16 countries• Product sold at thousands of supermarkets, convenience
stores, and retail outlets through U.S
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S.W.O.T Analysis
• Advertising and promotion is not much attractive to attract people out side US
• Shareholders have not received dividends and don’t expect in near future due to share price
• Closing stores are giving chance to competitors to open new stores
• Return on equity, investment and assets are all in negative through out 12 months due to lack of skilled management
• Revenues decreasing, and continuous net losses in past three years
• continued disputes with franchisees hurt future business
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S.W.O.T Analysis
• Asians love sweets and are open to trying foreign foods
• Dunkin' Donuts does not have hot doughnuts to sell
• Many children love sweet treats
• South America, Africa, and Southern Asia are markets to target
• Tim Horton has yet to expand beyond the U.S. and Canada, and its product line does not appear to be competitive
• Families crave convenience because of busy lifestyles
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S.W.O.T Analysis
• Starbucks has much greater in amount, stores worldwide than Krispy Kreme Donut
• People are much health conscious , and much care about high sugar and high fat
• European mostly prefer their local brands• Dunkin' Donuts presently dominates the doughnut market,
particularly in north-eastern U.S• Shareholders can sell their share due to lack of return or
dividend compared to their competitors• Briton’s tend not to have cars, which discourage the drive-
thru and their eating habits are different from Americans
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S.W.O.T Analysis
• KKD has to introduce or expand their product in Asian countries because of their love to sweets and willingness to purchase foreign product (S1, O1)
• Super markets and stores in US have pictures of children eating KKD to attract the children (S6, O3)
• KKD have to expand their business in highly populated countries like south America, South Asia, Africa .(S5,O4)
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S.W.O.T Analysis
• KKD have to introduce new pastries and juices with low sugar and fat to take care of people conscious about health and look for low fat.(S1,T2)
• Take part in weekly market in European countries to introduce their product in European people of all age.(S3,T3)
• Compare HOT DOUGNUTS with COLD DOUGHNUTS of DUNKIN DONUTs.(S2,T4)
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S.W.O.T Analysis
• Give dividend to share holders on time otherwise they can sell their shares and buy competitors shares (W2,T5)
• Expand product line with low-calorie foods • Recruit top executive talent from other fast-food
firms (W4, T5)• Survey franchisees to discover ways to repair
business relationships and retain growth of franchise model (W6, T1, T3)
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S.W.O.T Analysis
• Advertise and promotes hot doughnuts on the internet to demonstrate people. (W1,O2)
• Open small but profitable HOT SHOPS in South America, Asia to expand and compete globally.(W3,O4)
• Keep the relation good with franchisees to keep the US Canada market retain. (W6,O5)
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