KKD Vision:

To be the worldwide leader in sharing delicious tastes and creating joyful memories.

KKD Mission Statement:

Krispy Kreme's strategy is to develop, manufacture, market and distribute fresh

doughnuts made from quality ingredients that improve their freshness. We will focus on high

quality and guarantee that equality will be obvious in all geographic markets, company stores

and franchises. We will target geographic markets with high growth potential where we can

develop a competitive advantage. We will focus to provide efficient distribution outside of our

stores to be able to offer Krispy Kreme doughnuts to a large market area. We will strive to

become a recognized, market leader.

KKD current situation:

About 2010:

Last 12 Months 5 Year Growth

Sales 350.4 Mil -13.3%

Income 4.8 Mil NA

Debt/Equity Ratio 0.58

Gross Margin 13.55%
Net Profit Margin 1.37%
Total Shares Outstanding 67.5 Mil
Earnings/Share 0.07
Market Capitalization 357.52 Mil
Debt/Equity Ratio 0.58
Employees 2,460
Last Trade $5.30
52 Week High 5.30
 52 Week Low 2.56
Volume NA
Average Daily Volume (13wk) 387,786
50 Day Moving Average 4.32
200 Day Moving Average 3.80
Volatility (beta) 1.72
Source: http://moneycentral.msn.com/companyreport?symbol=KKD
Income Statements:
SWOT analysis:
STRENGTHS

 Quality of product.

 Hot Shops and attracting environment.

 KKD is one of the convenient stores which give customers an easy access to the product.

 Trained and well dressed employs.

 KKD has an exclusive brand and range of freshly made donuts.

 KKD prides themselves on high customer satisfaction with fresh quality donuts.

 KKD has a drive through window for sales with a great service.

 KKD has a new fall product line of donut called Spice.              

WEAKNESS

 Bad relationship with the franchisees.

 No other standout products.

 Franchisees close stores.

 Limited product line (heavy reliance on doughnut sales).

 Only concentrating on product line or depth.

 No online ordering capability. 

OPPORTUNITIES
  Change the target market or try to target children’s because children are like to eat sweet

treats.

 Further expansion in Asian countries like Pakistan India Iran etc because people of these

countries love sweet and foreign foods.

 Growth in two-income will increase snack-food consumption.

 Dunkin' Donuts does not have hot doughnuts to sell to their customer so from KKD

Customer receiving "Hot-Donut".  

 Reputation- fundraising program has helped non- profit organization to raise millions of

dollars in need fund.

 Many strong and loyal customers.

THREATS

 Competitors like Dunkin Donuts and Starbucks.

 Europeans prefer their local brands of doughnuts.

 People are becoming more health-conscious, which does not bode well for high-sugar,

high-fat treats.

 Dunkin' Donuts presently dominates the doughnut market, particularly in northeastern

U.S.

I.F.E Matrix:
Factors Weight Rating Weight Score

STRENGTHS
1. Quality of product 0.12 4 0.48
2. Hot Shops and attracting environment 0.06 3 0.18
3. KKD is one of the convenient stores give an easy access 0.07 1 0.07
4. Trained and well dressed employs 0.04 1 0.04
5. Exclusive brand and range of freshly made donuts 0.11 2 0.22
6. high customer satisfaction with fresh quality donuts 0.04 3 0.12
7. A drive through window for sales with a great service 0.03 2 0.06
8. A new fall product line of donut called Spice 0.06 2 0.12
WEAKNESS
1. Bad relationship with the franchisees 0.05 3 0.15
2. No other standout products 0.08 3 0.24
3. Franchisees close stores 0.03 1 0.03
4. Limited product line 0.10 4 0.40
5. Only concentrating on product line or depth 0.09 3 0.27
6. No online ordering capability  0.02 1 0.02

Total 1.00 2.4

EFE Matrix:

Opportunities Weight Rating Weight

Score
1. Change the target market or try to target children’s. 0.08 3 0.24
 2. Further expansion in Asian countries 0.06 3 0.18
3. Growth in two-income will increase snack-food 0.08 1 0.08
consumption
4. Dunkin' Donuts does not have hot doughnuts to sell to 0.12 3 0.36
their customer
5. reputation- fundraising program has helped non- profit 0.12 2 0.24
organization
6. Many strong and loyal customers. 0.10 4 0.40

Threats Weight Rating Weight

Score
1. Competitors like Dunkin Donuts and Starbucks 0.10 2 0.20
2. Europeans prefer their local brands 0.18 4 0.72
3. People are becoming more health-conscious 0.08 3 0.24
4. Dunkin' Donuts presently dominates the doughnut market 0.08 4 0.32

Total 1.00 2.98

Competitive Profile Matrix:

Companies KKD Dunkin Donuts Starbucks

Critical Success Factors Weight Ratin Score Rating Score Rating Score
g
Financial position 0.14 2 0.28 4 0.56 3 0.42
Customer Loyalty 0.17 2 0.34 3 0.51 4 0.68
Market share 0.06 3 0.18 4 0.24 3 0.18
Price 0.14 1 0.14 2 0.28 3 0.42
No of Brands 0.13 2 0.26 3 0.39 2 0.26
Quality 0.20 4 0.80 4 0.80 4 0.80
Global expansion 0.16 2 0.32 4 0.64 2 0.32

Total 1.00 2.32 3.42 3.08

RECOMMENDATIONS

Even krispr Kreme Company is in much better condition than its competitor but there are still
some suggestion for KKD Company to improve and to achieve its objective and goals.

There are following suggestion

 They should develop a good and healthy relationship with the franchisees.

 They should diversify.

 Reduce operating costs.

 They should encourage their Franchisers and give them facilities.

 They just not concentrate on the product line and expansion but also services related t the

promotion of product.

 They should offer online shopping facility t their customer.