CASE STUDY ON KRISPY KREME DONUTS

SUBMITTED BY INDRABHUSHAN PANDEY KARUNAKRAN ASHOKAR

Strengths 1. Affordable, high-quality doughnuts with strong visual appeal and "one-of-a-kind" taste with high Production of 5.5 million doughnuts a day 2. Neon light encourages customers to buy the product . 3. Serve customer in 395 stores operating in 40 states. 4. Strong supply chain management. 5. Use of Vertical integration helps ensure high quality product . 6. KKD is Persistently expanding . 7. Product sold at thousands of supermarkets, convenience stores, and retail outlets through U.S.

Weaknesses 1. Less revenue contribution from franchise. 2. Does not have an updated Registered UFOC 3. More focusing on shutting down stores rather than opening new stores at steady rate. 4. KKD is still striving to make their stores profitable. 5. High calorie doughnuts 6. Less amount spent on Advertising. 7. Revenues down, net losses in each of past three years. 8 Less number of varieties of product

Opportunities 1. More working hours gives Americans less time for preparing the food. 2. Asians love sweets and are always open to foreign foods. 3.Starbucks lacks a diversified and distinctive pastry line . 4. Improve franchise. 5. Joint venture in other countries for expansion. 6. Can focus on countries in Asia like India & China.

Threats 1. Dunkin' Donuts are extremely strong in northeastern U.S. 2. People are becoming more health-conscious. 3. Starbucks has approximately 25 times the amount of stores worldwide as compared to KKD. 4. Most of the Fast food chains are looking for international expansion. 5. Europeans prefer their local brands of doughnuts. 6. Casual dining sector continues to gain share fast food chains.

IFE MATRIX Key Internal Factors Strengths 1. Affordable, highquality doughnuts with strong visual appeal and "one-of-a-kind" taste with high Production of 5.5 million doughnuts a day 2. Neon light encourages customers to buy the product . 3. Serve customer in 395 stores operating in 40 states. 4. Strong supply chain management. 0.1 4 0.4 Weight Rating Weighted Score

0.09

0.36

0.09

0.36

0.07

0.21

5. Use of Vertical integration helps ensure high quality product .

0.07

0.28

6. KKD is Persistently expanding .

0.08

0.24

7. Product sold at thousands of

0.06

0.18

supermarkets, convenience stores, and retail outlets through U.S.

Weaknesses

1. Less revenue contribution from franchise. 2. Does not have an updated Registered UFOC 3. More focusing on shutting down stores rather than opening new stores at steady rate.

0.01

0.01

0.09

0.09

0.06

0.12

4. KKD is still striving to 0.07 make their stores profitable. 5. High calorie doughnuts 0.04

0.07

0.04

6. Less amount spent on Advertising 7. Revenues down, net losses in each of past three years. 8 Less number of varieties of product TOTAL

0.05 0.08

2 1

0.10 0.08

0.04

0.08

1.0

2.62

EFE MATRIX

Key External Factors Opportunities 1. More working hours gives Americans less time for preparing the food. 2. Asians love sweets and are always open to foreign foods. 3.Starbucks lacks a diversified and distinctive pastry line . 4. Improve franchise. 5. Joint venture in other countries for expansion. 6. Can focus on countries in Asia like India & China. Threats 1. Dunkin' Donuts are extremely strong in northeastern U.S. 2. People are becoming more health-conscious. 3. Starbucks has approximately 25 times

Weight

Rating

Weighted Score

0.08

0.24

0.1

0.3

0.05

0.10

0.09 0.1

2 2

0.18 0.2

0.09

0.27

0.1

0.2

0.09

0.12

0.08

0.16

the amount of stores worldwide as compared to KKD. 4. Most of the Fast food chains are looking for international expansion. 5. Europeans prefer their local brands of doughnuts. 6. Causal dining sector continues to gain share fast food chains. TOTAL

0.08

0.08

0.07

0.12

0.07

0.06

1.00

2.03