InternaI Key Factors Rate Weight TotaI

MK Great company history 3 0.05 0.15

MK The Krisy Kream Signature Brand 4 0.15 0.60
S Excellent ERP system linking all stores. 3 0.05 0.15
PR Manufacuters 90% of equipment used 4 0.10 0.40
MG Proven distribution system 4 0.10 0.40
FN Poor Year over Year earnings 1 0.20 0.20
FN Poor return for Franchise Owners 1 0.15 0.15
PR Limited Product Offering 1 0.20 0.20

TotaIs 1.00 2.25

FACTOR RATNG SCALE

1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength

NTERNAL FACTOR CODE:

FN = FNANCE
MG = MANAGEMENT
MK = MARKETNG
S = NFORMATON SYSTEMS
PR = PRODUCTON OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVDNG OF A SERVCE
InternaI Factor EvaIuation Matrix (IFEM)--Main Matrix A
InternaI Factor EvaIuation Matrix (IFEM)--Sub Matrix B

InternaI Key Factors Rate Weight TotaI

TotaIs

Rating Summary

1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength


NTERNAL FACTOR CODE:

FN = FNANCE
MG = MANAGEMENT
MK = MARKETNG
S = NFORMATON SYSTEMS
PR = PRODUCTON OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVDNG OF A SERVCE
InternaI Factor EvaIuation Matrix (IFEM)--Sub Matrix C

InternaI Key Factors Rate Weight TotaI

TotaIs

Rating Summary

1. Major Weakness 3. Minor Strength
2. Minor Weakness 4. Major Strength


NTERNAL FACTOR CODE:

FN = FNANCE
MG = MANAGEMENT
MK = MARKETNG
S = NFORMATON SYSTEMS
PR = PRODUCTON OF A PRODUCT
RD = RESEARCH AND DEVELOPMENT
SV = THE PROVDNG OF A SERVCE

ExternaI Key Factors Rate Weight TotaI

CP Competition Dunkin Donuts, Starbucks, Local Shops 1 0.10 0.10
CP Competition in Stores with baked goods providers. 1 0.10 0.10
SC nternational Market more open to sweet treats consumption. 4 0.20 0.80
SC Domestic Market is diet conscious shifting away from sweet treats 1 0.25 0.25
GE Stong presents in area of origin North Carolina and Southern States 4 0.10 0.40
CL Signature product is associated with fat. 1 0.25 0.25

TotaIs 1.00 1.90

FACTOR RATNG SCALE

1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity

EXTERNAL FACTOR CODE:

CP = COMPETTVE
CL = CULTURAL
DM = DEMOGRAPHC
EC = ECONOMC
GE = GEOGRAPHC
GV = GOVERNMENT
N = NDUSTRY
LG = LEGAL
PL = POLTCAL
SC = SOCAL
TC = TECHNOLOGCAL
ExternaI Factor EvaIuation Matrix (EFEM)--Main Matrix A
ExternaI Factor EvaIuation Matrix (EFEM)--Sub Matrix B

ExternaI Key Factors Rate Weight TotaI


TotaIs

FACTOR RATNG SCALE

1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity

EXTERNAL FACTOR CODE:

CP = COMPETTVE
CL = CULTURAL
DM = DEMOGRAPHC
EC = ECONOMC
GE = GEOGRAPHC
GV = GOVERNMENT
N = NDUSTRY
LG = LEGAL
PL = POLTCAL
SC = SOCAL
TC = TECHNOLOGCAL
ExternaI Factor EvaIuation Matrix (EFEM)--Sub Matrix C

ExternaI Key Factors Rate Weight TotaI


TotaIs

FACTOR RATNG SCALE

1. Major Threat 3. Minor Opportunity
2. Minor Threat 4. Major Opportunity

EXTERNAL FACTOR CODE:

CP = COMPETTVE
CL = CULTURAL
DM = DEMOGRAPHC
EC = ECONOMC
GE = GEOGRAPHC
GV = GOVERNMENT
N = NDUSTRY
LG = LEGAL
PL = POLTCAL
SC = SOCAL
TC = TECHNOLOGCAL
STRENGTHS (S) Rating Weight WEAKNESSES (W) Rating Weight
1 0 0.00 1 9 9.00
2 0 0.00 2 9 9.00
3 0 0.00 3 9 9.00
4 PR Manufacuters 90% of equipment used 4 0.10 4 9 9.00
5 0 0.00 5 9 9.00
6 0 0.00 6 9 9.00
7 0 0.00 7 9 9.00
8 0 0.00 8 9 9.00
9 MK The Krisy Kream Signature Brand 4 0.15 9 9 9.00
10 0 0.00 10 9 9.00
11 MK Great company history 3 0.05 11 9 9.00
12 S Excellent ERP system linking all stores. 3 0.05 12 FN Poor Year over Year earnings 1 0.20
13 MG Proven distribution system 4 0.10 13 FN Poor return for Franchise Owners 1 0.15
14 0 0.00 14 PR Limited Product Offering 1 0.20
15 0 0.00 15 9 9.00
16 0 0.00 16 9 9.00
17 0 0.00 17 9 9.00
18 0 0.00 18 9 9.00
19 0 0.00 19 9 9.00

OPPORTUNITIES (O) Rating Weight THREATS (T) Rating Weight
1 0 0.00 1 CP Competition Dunkin Donuts, Starbucks, Local Shops 1 0.10
2 0 0.00 2 9 9.00
3 0 0.00 3 9 9.00
4 0 0.00 4 CP Competition in Stores with baked goods providers. 1 0.10
5 0 0.00 5 9 9.00
6 0 0.00 6 CL Signature product is associated with fat. 1 0.25
7 SC nternational Market more open to sweet treats consumption. 4 0.20 7 9 9.00
8 GE Stong presents in area of origin North Carolina and Southern States 4 0.10 8 SC Domestic Market is diet conscious shifting away from sweet treats 1 0.25
9 0 0.00 9 9 9.00
10 0 0.00 10 9 9.00
11 0 0.00 11 9 9.00
12 0 0.00 12 9 9.00
13 0 0.00 13 9 9.00
14 0 0.00 14 9 9.00
15 0 0.00 15 9 9.00
16 0 0.00 16 9 9.00
17 0 0.00 17 9 9.00
18 0 0.00 18 9 9.00
19 0 0.00 19 9 9.00
VEE-TOWS MATRIX
THE INTERNAL AND EXTERNAL FACTOR MATRIX (I/E)
HGH LOW
EFEM 1
TOTAL
WEGHTED HGH
SCORES
EXTERNAL
FACTOR
FAVORABLENESS
EFEM Total: 1.90
LOW
FEM Total: 2.25
STRATEGY AREA:
2.08
*NOTE: DVESTTURE, LQUDATON, RETRENCHMENT,
AND RESTRUCTURNG SHOULD BE ONGONG STRATEGES,
REGARDLESS OF THE ORGANZATON'S STRATEGC POSTURE.
POSSBLE STRATEGES: GROW & HOLD & HARVEST &
BULD MANTAN DVEST
BACKWARD NTEGRATON.......... X
CONCENTRC DVERSFCATON X X X(?)
CONGLOMERATE DVERSFCAT X X(?)
DVESTTURE.......................... X* X* X*
FORWARD NTEGRATON............ X
HORZONTAL DVESFCATON... X X(?)
HORZONTAL NTEGRATON....... X X(?)
LQUDATON.................... X* X* X*
MARKET DEVELOPMENT............. X X(?)
MARKET PENETRATON.............. X X
PRODUCT DEVELOPMENT.......... X X(?)
RESTRUCTURNG..................... X* X* X*
RETRENCHMEMT...................... X* X* X*
(?) DEPENDS ON THE FNANCAL CONDTON OF THE ORGANZATON
FEM TOTAL WEGHTED SCORES
NTERNAL FACTOR SPACE
E
F
E
M
IFEM
I&E Chart

V
V
V
V
V
X
THE SPACE MATRIX
RATNGS: +6 S THE BEST; +1 S THE WORST. RATNGS: -1 S THE BEST; -6 S THE WORST.

FNANCAL STATUS RATNG (+1 ,+6) COMPETTVE STATUS RATNG (-1,-6)

1 Consistently poor earning performance 2 1 Manufacters Own Equipment -2
2 Poor Returns for Franchise Owners 2 2 Long company history -2
3 Poor Return on Equity Ratio 2 3 Strong Southern US Presents -2
4 4 Brand Recognition -2
5 5

MEAN 2.00 MEAN -2.00
RATNGS: -1 S THE BEST; -6 S THE WORST. RATNGS: +6 S THE BEST; +1 S THE WORST.

ENVRONMENTAL STATUS RATNG (-1, -6) NDUSTRY STATUS RATNG (+1,+6)

1 Diet Concious Domestic Market -6 1 High Profit tems 5
2 Signature product is associated with fat -5 2 nternational Growth Potential 5
3 Technolgy nnovators -1 3 Debt to Equity 2.377 3
4 Limited Product Offering -3 4
5 5

Mean -3.75 MEAN 4.33
X Coordinate 2.33
Y Coordinate -1.75


SPACE Matrix
Conservative Aggressive
Defensive Competitive
THE TOWS MATRIX STRATEGIES
BUSIAESS CORPORA1E (B/C) AAD FUAC1IOAAL AREA (F) S1RA1ECIES

STRENGTH/OPPORTUNITY (SO) STRATEGIES
MK The Krisy Kream Signature Brand / SC International Market more open to sweet treats consumption Contiuned International Expansion
MG Proven distribution system / International Market more open to sweet treats consumption Contiuned International Expansion

WEAKNESS/OPPORTUNITY (WO) STRATEGIES
FN Poor return Ior Franchise Owners / Stong presents in area oI origin North Carolina and Southern States Encourage new opportunities in stong markets
FN Poor Year over Year earnings / SC International Market more open to sweet treats consumption. Contiuned International Expansion
STRENGTH/THREAT (ST) STRATEGIES
MK The Krisy Kream Signature Brand / Competition Dunkin Donuts, Starbucks, Local Shops Expand Product oIering
WEAKNESS/THREAT (WT) STRATEGIES
Poor Year over Year earnings/Stong presents in area oI origin North Carolina and Southern States Leverage these markets to testnew products.