Krispy Kreme

Introduction:
Krispy Kreme is one of the most recognized brand in the doughnuts industry,

their Original glazed can’t be found in any other doughnuts stores around

the world.

Krispy Kreme doesn't offer a taste only, but it offers joy, delightful memories

and delicious experience that you will not forget about.

From a secret recipe in Salt lake , to A very well know doughnuts around the

world, we will know the origins of Krispy Kreme, the Ups and downs , and

the current performance of the Krispy Kreme.

 About Krispy:
• Krispy Kreme Doughnuts was founded in 1937 by its
co-founder Vernon Randolph, in North Carolina.
• In the 40s, Krispy started selling directly to customers
instead of selling the doughnuts to groceries.
• the first international store of Krispy was opened in
2001 in Canada.
• 2006 was the year of terminating the largest
franchisee license of Great Circle Family Food.
 The Actual Vision:
to be the worldwide leader in sharing delicious
tastes and creating joyful memories.
The Actual Mission:
to touch and enhance lives through the joy that is
Krispy Kreme.
The points included in the mission:
6. Philosophy, 8.Public image.
 The Proposed Vision:
To become the leader of the doughnut industry in the world.
The proposed Mission:
Our mission is to provide our customers1 with the best of our Krispy
Kreme doughnuts and coffee2, and to insure consistency in all of
KKD branches around the world3. We are looking forward to
watch our franchisees9 financially to keep going to achieve our
vision5. We make sure that the ingredients we use are the best6.
The public image has a high priority in our company so we'll
keep participating in the community through supporting the
social events and donations8. Our signature original glazed will
continue to be our unique product and offered in all of our stores
around the world7.

1) Customer,2)Products or service, 3)Market, 4)Technology 5)Concern for

survival,6)Philosophy, 7)Self concept, 8)Concern for public image,
9)Concern for employees.
 :KKD divisions and operations

KKD have 523 stores all over the world, there are
two types of Krispy Kreme stores:
1. Factory Stores: which usually contain a
doughnut-making production line in addition to
retail establishments.
2. Satellite Stores: which sells doughnuts and
beverages.
 :Profit Generators
1. From the factory stores owned by the KKD
itself.
2. The franchisee fee.
3. KKD supply chain is produces doughnuts
mixes and manufactures the doughnut-
making equipment, which all the factory
stores are required to buy in order to
produce the famous doughnuts.
 :CPM – Competitive Profile Matrix
Tim Horton's Starbucks KKD

Weighted Score Rating Weighted Rating Weighted Rating Weight Critical Success
Score Score Factors

0.45 3 0.60 4 0.30 2 0.15 Market Share

0.30 3 0.30 3 0.30 3 0.10 Price

0.45 3 0.60 4 0.15 1 0.15 Financial Position

0.40 4 0.40 4 0.30 3 0.10 Product Quality

0.30 3 0.30 3 0.20 2 0.10 Product Diversity

0.45 3 0.60 4 0.45 3 0.15 Consumer Loyalty

0.10 2 0.20 4 0.10 2 0.05 Employees

0.10 2 0.15 3 0.15 3 0.05 Sales distribution

0.10 1 0.40 4 0.40 4 0.10 Global Expansion

0.15 3 0.15 3 0.10 2 0.05 E-commerce

2.8 2.45 1.00 Total

3.70
External Audit
 :Opportunities
1. Consumers' demands on organic food are
increasing.
2. The opportunity to penetrate the E-commerce
field, since this field is growing rapidly.
3. The weak US dollar makes the US products and
technologies more affordable in Europe and
Asia.
4. The demands on the diet products are
increasing.
5. The increasing fame of the Coffee as a main
drink.
 :Threats
1. The latest recession caused a decrease in the
costumer's spending.
2. The raw materials prices are increasing.
3. The diversified menu that the Dunkin' Donuts
got.
4. The huge expansion of Starbucks in the US
and worldwide.
5. The company's late reaction to the low profit
in the last five years.
Internal Audit
 :Strengths
1. Adding new items to the menu such as: the
frozen beverages.
2. Having a well designed web-site, to
communicate with the costumer.
3. A very strong brand name that's well-known
around the world.
4. Offering new kind of services such as opening
small shops and opening late nights.
 Weaknesses:
1. The company's stock price dropping from
$40 to below $10.
2. Having several CEOs in short period of time
which means not having a stable strategy
3. Closing several branches, franchisees in the
US are declining.
4. Not offering adjusted products to meet the
diet growing awareness, the original glazed
still contains 200 calories with 12 grams of
fat.
Internal Factor Evaluation (IFE) Matrix

Weighted Rating Weight Key Internal Factors

Score
Strengths
0.24 4 0.06 A very strong brand name that's
well-known around the world
0.12 3 0.04 Having a well designed web-
site, to communicate with the
costumer.
0.18 3 0.06 Adding new items to the menu
such as: the frozen beverages.
0.24 4 0.06 Using high quality ingredients in
order to meet the consumer's
expectations.
0.24 4 0.06 Offering new kind of services
such as opening small kiosks
and opening late nights.
0.24 4 0.06 Making the production process
available to the public to see in
order to create a sort of
transparency between the KKD
and its consumers.
Weaknesses
1. The company's stock price dropping
from $40 to below $10.
0.20 2 0.10

1. Having several CEOs in short period of

time which means not having a stable
0.10 2 0.05
strategy.
1. The late response the company's bad
position in the market, thou having
0.05 1 0.05
several signs before indicates that the
company was not doing well.

0.12 2 0.06 1. Closing several branches, franchisees in

the US are declining.

.
1. Not offering adjusted products to meet
the diet growing awareness, the original
0.10 1 0.10
glaze still contain 200 calories with 12
grams of fat
2.63 1.00 TOTAL
 :SWOT Strategies
SO:
1. Penetrating the E-commerce by utilizing KKD well
designed web site to establish online ordering, since
the E-commerce is starting to expand. O2,S6
2. Introduce low-fat products and add diet products to
the menu. O4,S1
WO:
1. Create a new diet products menu, made with organic
ingredients. O4,W3
2. Increase their stock price by declining of the US
dollar value. O3,W1.
 :SWOT Strategies
ST:
1. Start using high quality ingredients, to meet the
customer high awareness to health issues caused by high
calorie food. S3,T2
2. Continue stretching the brand name by opening new
branches around the world, to compete with Starbucks
expanding. S5,T4
WT:
1. Close the branches that are not doing well in the US and
the rest of the world. W5,T5
2. The increasing awareness of the public to the health
issues, so KKD needs to introduce a new diet
menu.W3,T2
 QSPM (Quantities strategic planning matrix)
Start up strategic Create new line of
alliance with Burger organic doughnuts
Key Internal Factors Weight
King

TAS AS TAS AS Strengths

0.24 4 0.18 3 0.06 A very strong brand name that's well-known
around the world.
--- --- --- --- 0.04 Having a well designed web-site, to
communicate with the costumer.
--- --- --- --- 0.06 Adding new items to the menu such as: the
frozen beverages.
0.12 2 0.18 3 0.06 Using high quality ingredients in order to meet
the consumer's expectations.
--- --- --- --- 0.06 Offering new kind of services such as opening
small kiosks and opening late nights.

--- --- --- --- 0.06 Making the production process available to the
public to see in order to create a sort of
transparency between the KKD and its
consumers.
Recommendations:
1. That KKD should starts implementing new
strategy with investing in R&D, to find new
combination of ingredients to come up with
new menu for the diet people.
2. They should search for the reasons for the
declining of the branches in the US and the
rest of the world.
3. Also having a diversified menu will help KKD
to improve its profits and secure them, by
offering new items besides doughnuts such
as: Cupcakes, muffins, Ice creams and
cookies.
Thank you for
Listening
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