Академический Документы
Профессиональный Документы
Культура Документы
CASE STUDY
Harun KAYA
8/24/2011
Consumers are our lifeblood, the center of the doughnut There is no substitute for quality in our service to consumers Impeccable presentation is critical wherever Krispy Kreme is sold We must produce a collaborative team effort that is unexcelled We must cast the best possible image in all that we do We must never settle for "second best;" we deliver on our commitments We must coach our team to ever-better results
2) Develop vision and mission statements for the organization. Vision To be a trusted worldwide leader in providing tasty and healthy doughnuts . Mission Krispy Kreme Doughnut strives to provide the best doughnuts along with consideration of safety regulations for our valued customers. Objectives The objectives of the organization should be to make people see the healthy side of doughnuts and thus increase its sales and revenue through customer attraction. Strategies The strategy of the organization should be to work on increasing customer based brand equity in order to enhance competitive advantage in the organization. For this a mixture of advertising and other marketing tactics needs to be employed and the customers need to start realizing that the doughnuts served by KKD are not as detrimental to their health as perceived.
increasing global recognition of Starbucks and Dunkin Donuts. Global presence of the
occurring in the management of the business and thus the fall in business and profitability Develop programs the to social outreach the
competitors Fall in the number of company stores and rise in franchises and thus a fall in the authority over strategies and management of the organization as a whole More health conscious customer base Development markets of organic
promote
doughnuts and to promote the customer based objectives and mission of the organization. Reaching the market to really know what the customers want and then to develop the
KKD CRITICAL SUCCESS FACTORS Customer Loyalty Large Market Share Advertisi ng Global Markets Market Share Managem ent Experienc e Social 0.2 2 0.4 0.1 2 0.2 0.1 2 0.2 0.05 2 0.1 0.2 2 0.4 0.2 2 0.4 Weght 0.1 Ratng 2 Score 0.2
Dunkin
Starbucks
Ratng 3
Score 0.3
Ratng 4
Score 0.4
0.4
0.8
0.4
0.8
0.15
0.15
0.3
0.3
0.3
0.4
0.6
0.8
Recogniti on Strong Business Partners Total 1.1 2.2 3 4.25 0.15 2 0.3 3 0.45 4 0.6
Key factors
External
Weight
Rating
Weighted Score
Opportunities Diversification of Product Detection Problem of in 0.1 2 0.2 0.1 3 0.3 0.20 1 0.2
management Social Outreach Programs Market Research Development healthier doughnuts Capitalization holiday and spots of of
0.15 0.05
2 3
0.3 0.15
0.05
0.1
season
recreational Threats
Tough Competition Global presence of competitors Health conscious customers Fall in number of company stores Rise foods Total in organic
0.2 0.05
3 3
0.6 0.15
0.05
0.2
0.02
0.02
0.03 1
0.06 4.48
Globally recognized brand name Having over 70 years long history as an American icon Having quality and well educated workforce Increasing market share in the United States Recognized as being healthy and tasty doughnuts company in the United States
Weaknesses
- Krispy Kreme does not spend much for marketing its products and on media advertising while its competitors do. - The price of different ingredients and raw materials especially high quality coffee beans is increasing. - Krispy Kreme needs to introduce low calorie doughnuts and other food items
Key factors
Internal
Weight Strengths
Rating
Weighted Score
Production Capacity Human Resource Power Price Differentiation Different Channels of distribution Diversification of Product
0.20
0.6
0.1
0.2
0.1
0.2
0.2
0.8
0.1
0.1
Supply
Chain
0.05
0.15
Management Weaknesses Reliance single product Dropping sales Apparently unhealthy product Fall in number of company stores Single location 0.05 2 0.1 2.55 0.05 1 0.05 on 0.05 0.05 0.05 1 3 3 0.05 0.15 0.15
production Total
8) Prepare a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix, Internal-External (IE) Matrix, Grand Strategy Matrix, and Quantitative Strategic Planning Matrix (QSPM) as appropriate. Give advantages and disadvantages of alternative strategies.
Weaknesses Losing in profit Non-various product segment Decreasing in reputation Decreasing in hold of company stores
Opportunities
Threats
Development in brand name Market diversification Getting into organic markets Customer oriented marketing and sales policy
Competition with Starbucks and Dunkin Donuts Risk of increasing sugar prices Increasing in demand of organic foods Falling profitability
+6
-6 CP
6 IP
-6 SP
Industry Position 1. Growth Potential 2. Profit Potential 3. Consumer Trust 4. Investment Reliability 3 5 4 3
Earnings Per Share 2 12 Stability Position 1. Economic Changes 2. Government Control 6. Competition 4. Price Elasticity 5. Entry Barriers -2 -2 -2 -5 -4 -15 y axis
Internal-External (IE) Matrix
5. Productivity 2.2 Competitive Position Market Share Product Quality Product Life Cycle Customer Loyalty Capacity Utilization -2.8
4 19 4
-1 -1 -2 -1 -1 -6 -1.2
-0.6
x axis
2.8
xxxx x
Score
Low
1.0 to 1.99
Implications from table: Generic Goal: Implied Strategies: Hold and Maintain Market Penetration Product Development
Quadrant I
Product Development
Market Penetration
Market Developme nt
Key Factors
Weig ht
AS
TAS
AS
TAS
AS
TAS
EXTERNAL Strengths Diversification Product Detection Problem management Social Programs Market Research Development healthier doughnuts Capitalization of 0.05 2 0.1 3 0.15 3 0.15 0.15 of 0.05 4 3 0.6 0.15 4 1 0.6 0.05 4 2 0.6 0.1 Outreach 0.1 2 0.2 4 0.4 2 0.2 of 0.1 in 3 0.3 3 0.3 3 0.3 of 0.20 3 0.6 3 0.6 3 0.6
Threats Tough Competition 0.2 3 2 0.6 0.1 2 2 0.4 0.1 3 2 0.6 0.1
0.15
0.2
0.1
INTERNAL
Strengths
Production Capacity Human Power Price Differentiation Channels distribution Diversification markets Supply Management Weaknesses
0.2
0.8
0.4
0.4
Resource 0.1
0.2
0.3
0.2
0.1
0.3
0.3
0.3
of 0.2
0.6
0.4
0.6
of 0.1
0.2
0.3
0.4
Chain 0.05
0.15
0.1
0.1
0.15
0.05
0.1
Dropping sales
0.05
0.15
0.15
0.15
Unhealthy product
0.05
0.1
0.1
0.15
0.1
0.1
0.1
5.95
5.2
5.1
9) Recommend specific strategies and long-term objectives. Show how much your recommendations will cost. Clearly itemize these costs for each project year. Compare your recommendations to the actual strategies planned by the company. 1.) Redirect Employees Reduce Work Pool if necessary = 2.) Implement A new Algorithm =
3.) Refocus Advertising Network=
3 million $
250 million $
90 million $
10) Specify how your recommendations can be implemented and what results you can expect. Prepare forecasted ratios and projected financial statements. Present a timetable or agenda for action.
Strategy Implementation
KK Doughnuts should establish a financial and operational audit committee within the corporation, both company-owned and franchised to determine causes of negative ratio of revenues to expenses.
1. Redirect Employees 2. Implement the new doughnuts 3. Refocus the Advertising Network
KK Doughnuts has a major competitor which is Dunkin Donuts, they should try to impose the market as being number one doughnut store by beating Dunking Donuts. It is possible if KK Doughnuts implement new marketing strategies against to its competitors. The company should get rid of inefficient job titles, and the administrators of the company should pay attention for every recommendations and ideas within the organization.
First of all, a new offer should be occurred for strategy review and evaluation. This offer should be carried by a senior manager. Strategic management planning team needs to carry out the information-collecting tasks. A successful strategic plan is executed when employees, advisors, and freelancers contribute to every phase of the planning procedure. Department manager should also focus on the plan and try to develop strategies with his/her team, and than, respectively; the plan should be audited by Executive Vice President and CEO.