Essay on Krispy Kreme Case Analysis

5592 Words Apr 2nd, 2010 23 Pages

Krispy Kreme Doughnuts, Inc.: A Case Analysis

Presented to

October 09, 2009

Table of Contents

II. Table of Contents 2
III. Executive Summary 3
IV. Situational Analysis 5 A. Environment 5 B. Industry Analysis 5 C. The Organization 7 D. The Marketing Strategy 9

V. Problems Found in Situational Analysis 10 A. Statement of primary problem. 10 B. Statement of secondary problem 12 C. Statement of tertiary problem. 13

VI. Formulate, evaluate, and record alternative course(s) of action 14 A. Strategic Alternative 1 14 1. Benefits 14 2. Costs 15 B. Strategic Alternative 2 16 1. Benefits 16 2. Costs 19 C.
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This analysis of the Krispy Kreme Doughnut, Inc. case study will attempt to uncover some of the reasons for the company’s challenges, suggest some potential strategies and possible solutions as well the steps for implementing those strategies.

Situational Analysis

1 Environment

Krispy Kreme Doughnuts, Inc. was founded in 1937 and is headquartered in Winston-Salem, North Carolina. Krispy Kreme is a major competitor in the restaurant industry, known primarily for its donuts. Near the end of 2004 and the beginning of 2005, the economy began to slow. Other business in competition with Krispy Kreme began to crowd into its market and expansion plans that Krispy Kreme had projected had to be scaled back due to falling sales. Consumer interest in reduced carbohydrate consumption, including ,but not limited to, the interest in and popularity of low carbohydrate diets, such as the “Atkins” and “South Beach” diet plans have been blamed for declining sales in pre-packaged (grocery store) donuts.

2 Industry Analysis

Their leading competitors are “Dunkin Donuts”, with worldwide sales of $2.7 billion (2002) 5200 outlets worldwide and a 45% market share based on dollar sales volume, and “Tim Hortons”, a Canadian-based company, which has expanded in the U.S. Markets. “Tim Hortons” sales in 2002 in the U.S. (160

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