BRIEF HISTORY

2000 SHAPED DOUUGHNUTS

New shaped doughnuts rolled
out including the highly
popular heart doughnut

1937 KKD OPENED DOORS

Vernon Rudolph bought secret
yeast recipe from a
French chef in New
Orleans and began
selling Krispy Kreme
Doughnuts on the local
stores.

1945 ORIGINAL GLAZED

THEN AND NOW
While times had changed a lot
the
company's
signature
Original
Glazed
Doughnut
stayed the same.

2011 NEW KRISPY KREME

COFFEE
Krispy Kreme proudly
announces the launch
of its new Krispy Kreme
Signature Coffee
Blends.

1992 BIRTH OF THE HOT LIGHT

The Hot Doughnuts Now light was
developed.

2012 KRISPY KREME 75TH

BIRTHDAY
Krispy Kreme proudly announces
the launch of its new
Krispy Kreme Signature
Coffee Blends.
1955 BOWTIE GETS
TRADEMARKED
The Krispy Kreme bowtie logo
is
trademarked
with
familiar green and red
coloring.

1963 PRODUCTION
Hand production was a thing of
the past when automation
took over. The planning
and timing of production
became a vital task.

2015 1,000 STORES

February 24, 2015: Store 1000
opens in Kansas City,

COMPANY PROFILE
Krispy Kreme is an international retailer of
premium-quality sweet treats, including its
signature hot Original Glazed doughnut.
Headquartered in Winston-Salem, NC.
Today, Krispy Kreme and its one-of-a-kind
Hot Light can be found in over 1000 shops
around the world.
Currently, Krispy Kreme can be found in 24
countries.

EXISTING MISSION

EXISTING VISION

To be the worldwide leader

in sharing delicious tastes
and creating joyful
memories.

VALUES
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.

PROPOSED MISSION

PROPOSED VISION

COMPETITORS

J.CO Donuts & Coffee is a

cafe restaurant
chain in Indonesia specializ
ing in donuts, coffee and
frozen yogurt.
Started in 2007.
Presents not only soft and
premium donuts but also a
wide variety of coffee.

Dunkin' Donuts is an
American
global doughnut company
and coffeehouse chain.
Started in 1950
The chain's products
include doughnuts, bagels,
other baked goods, and a
wide variety of hot and iced
beverages.

Starbucks Coffee, is an
American coffee company
and coffeehouse chain.
Started in 1971
Serves hot and cold
beverages, whole-bean
coffee, microground instant
coffee, espresso, caffe
latte, full-leaf teas,pastries,
and snacks.

COMPANY PROFILE MATRIX

KRISPY KREME

J.CO

DUNKIN
DONUTS

STARBUCKS

Weight

Rating

Score

Rating

Score

Rating

Score

Rating

Score

Advertising

.11

.22

.22

.44

.33

Product Quality

.15

.45

.60

.45

.45

Product Diversity

.08

.24

.24

.16

.08

Price
Competitiveness

.08

.24

.24

.24

.16

Management

.10

.30

.40

.30

.30

Financial Position

.10

.40

.40

.30

.20

Customer Loyalty

.10

.30

.40

.40

.30

Global Expansion

.13

.52

.52

.39

.52

Market Share

.10

.30

.30

.30

.30

Sales Distribution

.05

.20

.15

.10

.15

TOTAL

1.
2.
3.

1.00

3.17

J.CO 3.47
KRISPY KREME 3.17
DUNKIN DONUTS 3.08

3.47

3.08

2.79

SWOT MATRIX
STRENGTH

WEAKNESS

1. Affordable high-quality doughnuts with strong visual

appeal and one-of-a-kind taste.
2. Many varieties of doughnuts and other menu items
including coffee.
3. Loyal customer base in the U.S. market.
4. Manufacturing uses accelerated approach that allows a
high volume of production.
5. The original glazed doughnut remains the top seller
amongst other pastries in its category.
6. Consistent expansion, now in 16 countries.
7. Product sold in thousands of supermarkets, convenience
stores, and retail outlets through U.S.

1. Advertising not aggressive enough to appeal areas

outside of U.S.
2. Skill of management is questionable.
3. High employee turnover.
4. Slow to expand product line with nothing outside sweet
treats to draw in health-conscious customers.
5. Revenue down, net losses in each of past three years.
6. Limited amount of non-snack food items, because of
international differences/preferences, customers tend to
choose local stores.
7. Return on equity, assets, and investment are all negative
in the trailing twelve months.

OPPORTUNITES

THREATS

1.
2.
3.
4.
5.
6.
7.

Families crave convenience because of busy lifestyle.

Asians love sweets and are open to trying foreign foods.
Starbucks lacks a diversified and distinctive pastry line.
Dunkin Donuts does not have hot donuts to sell.
Many children love sweet treats.
Joint venture with other companies.
South America, Africa, and Southern Asia are markets to
conquer.

1. Dunkin Donuts presently dominates the doughnut

market particularly in North-eastern U.S.
2. People are becoming more health-conscious, which
does not bode well for high-sugar, high-fat treats.
3. Starbucks has approximately 25 times the amount of
stores worldwide that Krispy Kreme Donut has.
4. Restricted cash flow from banks and massive layoffs
have stiffed the world economy, decreasing discretionary
income.
5. Europeans prefer their local brands of doughnuts.
6. Britons tend not to have cars, which inhibit drive-thru
customers, and their eating habits and office etiquette
differ from Americans.
7. Shareholders may sell their stocks for lack of returns and
dividends compared to other similar firms in the industry.

SWOT MATRIX
STRENGTH
1. Affordable high-quality doughnuts with strong visual
appeal and one-of-a-kind taste.
2. Many varieties of doughnuts and other menu items
including coffee.
3. Loyal customer base in the U.S. market.
4. Manufacturing uses accelerated approach that allows
a high volume of production.
5. The original glazed doughnut remains the top seller
amongst other pastries in its category.
6. Consistent expansion, now in 16 countries.
7. Product sold in thousands of supermarkets,
convenience stores, and retail outlets through U.S.

WEAKNESS

OPPORTUNITIES
1. Families crave convenience because of
busy lifestyle.
2. Asians love sweets and are open to
trying foreign foods.
3. Starbucks lacks a diversified and
distinctive pastry line.
4. Dunkin Donuts does not have hot
donuts to sell.
5. Many children love sweet treats.
6. Joint venture with other companies.
7. South America, Africa, and Southern
Asia are markets to conquer.

SO
1. More production of new doughnuts and other
menu items (S2, O2)
2. All store signs in supermarkets and
conveniences where product is sold have picture
of young child eating a Krispy Kreme doughnut
(S7, O5)
3. Continued grand openings of stores in highlypopulated cities (S6, O7)

WO

THREATS

ST

WT

SWOT MATRIX
STRENGTH
1. Affordable high-quality doughnuts with strong visual
appeal and one-of-a-kind taste.
2. Many varieties of doughnuts and other menu items
including coffee.
3. Loyal customer base in the U.S. market.
4. Manufacturing uses accelerated approach that allows
a high volume of production.
5. The original glazed doughnut remains the top seller
amongst other pastries in its category.
6. Consistent expansion, now in 16 countries.
7. Product sold in thousands of supermarkets,
convenience stores, and retail outlets through U.S.

WEAKNESS

OPPORTUNITIES

SO

WO

THREATS
1. Families crave convenience because of
busy lifestyle.
2. Asians love sweets and are open to
trying foreign foods.
3. Starbucks lacks a diversified and
distinctive pastry line.
4. Dunkin Donuts does not have hot
donuts to sell.
5. Many children love sweet treats.
6. Joint venture with other companies.
7. South America, Africa, and Southern
Asia are markets to conquer.

ST
1. Offering varieties of Donuts and filming their
reactions to make changes for such place; Do
"roadshow" across Europe as means of
advertising (S2, S5, T5, T6)
2. Compare "hot" doughnut appeal of Krispy
Kreme Donut to cold doughnuts of Dunkin'
Donuts in TV and Internet ads (S1,T1)
3. Express strengths and outline concrete
strategies in clear format within 10-K in order to
restore shareholder confidence in future of
Krispy Kreme Donut (S1-S7, T7)

WT

SWOT MATRIX
STRENGTH

WEAKNESS
1. Advertising not aggressive enough to appeal areas
outside of U.S.
2. Skill of management is questionable.
3. High employee turnover.
4. Slow to expand product line with nothing outside
sweet treats to draw in health-conscious
customers.
5. Revenue down, net losses in each of past three
years.
6. Limited amount of non-snack food items, because
of international differences/preferences, customers
tend to choose local stores.
7. Return on equity, assets, and investment are all
negative in the trailing twelve months.

OPPORTUNITIES
1. Families crave convenience because of
busy lifestyle.
2. Asians love sweets and are open to
trying foreign foods.
3. Starbucks lacks a diversified and
distinctive pastry line.
4. Dunkin Donuts does not have hot
donuts to sell.
5. Many children love sweet treats.
6. Joint venture with other companies.
7. South America, Africa, and Southern
Asia are markets to conquer.

SO

WO
1. Make strategy to increase profit such as
expansion through joint venture (W5, W7, O6)
2. Offer ways to incorporate nuts and protein into
foods; Make doughnuts filled with fruit, put
fruit cups on menu, and develop wide variety
of fresh fruit smoothies(W4, O3)
3. Demonstrate the appeal of Krispy Kreme
Donut, hot doughnuts, through aggressive
Internet ads (W1, O4)

THREATS

ST

WT

SWOT MATRIX
STRENGTH

WEAKNESS
1. Advertising not aggressive enough to appeal areas
outside of U.S.
2. Skill of management is questionable.
3. High employee turnover.
4. Slow to expand product line with nothing outside
sweet treats to draw in health-conscious
customers.
5. Revenue down, net losses in each of past three
years.
6. Limited amount of non-snack food items, because
of international differences/preferences, customers
tend to choose local stores.
7. Return on equity, assets, and investment are all
negative in the trailing twelve months.

OPPORTUNITIES

SO

WO

THREATS
1. Families crave convenience because of
busy lifestyle.
2. Asians love sweets and are open to
trying foreign foods.
3. Starbucks lacks a diversified and
distinctive pastry line.
4. Dunkin Donuts does not have hot
donuts to sell.
5. Many children love sweet treats.
6. Joint venture with other companies.
7. South America, Africa, and Southern
Asia are markets to conquer.

ST

WT
1. Open brand market to other countries
particularly in North-eastern U.S.; hire skilledemployee to manage such market (W2, T1)
2. Expand product line with low-calorie foods (W4,
T2, T7)
3. Recruit top executive talent from other fast-food
firms (W7, T7)

EXTERNAL FACTOR EVALUATION

MATRIX (EFE)
Key External Factors
OPPORTUNITIES
1. Families crave convenience because of busy lifestyle.
1. Asians love sweets and are open to trying foreign foods.
1. Starbucks lacks a diversified and distinctive pastry line.
1. Dunkin Donuts does not have hot donuts to sell.
1. Many children love sweet treats.
6. Joint venture with other companies.
7. South America, Africa, and Southern Asia are markets to
conquer.
THREATS
1. Dunkin Donuts presently dominates the doughnut market
particularly in Northeastern U.S.
2. People are becoming more health-conscious, which does not
bode well for high-sugar, high-fat treats.
3. Starbucks has approximately 25 times the amount of stores
worldwide that Krispy Kreme Donut has.
4. Restricted cash flow from banks and massive layoffs have
stiffed
the world economy, decreasing discretionary income.
5. Europeans prefer their local brands of doughnuts.
6. Britons tend not to have cars, which inhibit drive-thru
customers,
and their eating habits and office etiquette differ from
Americans.

Weight

Rating

Weighted
Score

.08
.05
.10
.07
.03
.04

3
4
4
4
4
4

.24
.20
.40
.28
.12
.16

.09

.36

.12

.24

.08

.16

.08

.08

.06

.12

.05

.10

.06

.12

INTERNAL FACTOR EVALUATION

MATRIX (IFE)

Key Internal Factors

STRENGTHS
1. Affordable high-quality doughnuts with strong visual appeal
and
one-of-a-kind taste.
2. Many variety of doughnuts and other menu items including
coffee.
3. Loyal customer base in the U.S. market.
4. Manufacturing uses accelerated approach that allows a high
volume of production.
5. The original glazed doughnut remains the top seller amongst
other pastries in its category.
6. Consistent expansion, now in 16 countries.
7. Product sold in thousands of supermarkets, convenience
stores,
and retail outlets through U.S.
WEAKNESSES
1. Advertising not aggressive enough to appeal areas outside of
U.S.
2. Skill of management is questionable.
3. High employee turnover.
4. Slow to expand product line with nothing outside sweet
treats
to draw in health-conscious customers.
5. Revenue down, net losses in each of past three years.
6. Limited amount of non-snack food items, because of

Weight

Rating

Weighted
Score

.09

.36

.06

.24

.08

.24

.07

.21

.07

.28

.08

.32

.06

.18

.10

.10

.07
.06

2
2

.14
.12

.07

.07

.04

.08

INTERNAL EXTERNAL (IE)

MATRIX
THE IFE TOTAL WEIGHTED SCORES
Average
Weak
2.0 to 2.99
1.0 to 1.99

THE EFE TOTAL WEIGHTED

SCORES
Strong
Average
Weak
3.0 to 4.0 2.0 to 2.99 1.0 to
1.99

Strong
3.0 to 4.0

I
IV
VII

II
V

VIII

III
VI
IX

The combined score of IFE and EFE puts it in cell V which indicates
hold and maintain.
This translates that the tactical strategies to be employed by KKD
should be market penetration and product development.

QSPM
In the QSPM two strategic alternatives were
compared:
KKD should discontinue its Company Store segment
and concentrate solely on building the Franchise
segment, or whether ;
It should continue the slow and steady growth of its
Company Stores and Franchise business segments
through its traditional business model.

QSPM
STRATEGIC ALTERNATIVES
1) Discontinue unprofitable stores and
2) Continue slowly and steady or
concentrate solely on building Franchise maintain growth of Company Store and
(local or international)
Franchise business segments through
traditional business model (local or
international)
Advantages
Disadvantages
Advantages
Disadvantages
Increase capital
Increase cost for
Attractive to
New development
from sold locations new franchise
international
and packaging
and properties
market
costs
Decrease loss
Risk for
More competitive
New ideas may
international
with markets
discomfort old
locations
customers
Develop new
May keep existing
market
customers
Opportunities for
More efficient
higher profit
More cost effective
in long run
2.93
1.36

RECOMMENDATION
The strategy that was decided for Krispy Kreme is to
discontinue unprofitable stores and concentrate solely on
building Franchise (local or international). This allows for
Krispy Kreme to get an increase in marketing and brand
awareness at a lower upfront cost. With the opening of
150 new stores in the next three years, costs will be
around $20, 000 TO $40,000 each store. The goal is by
the end of the three years to have a market share
increase and to also increase net income.

RECOMMENDATION
To support recommendation:
Adapt to consumers desires
Establish regular control of accounting
records and hire qualified personnel
Be more precise to mission and vision of
the company

RECOMMENDATION

Production
Understand and implement procedures to maximize efficiencies
and control variances in daily production of product and overall
commissary performance
Understand and implement commissary quality control
procedures, including standards
Coordinate production schedules to meet customer demands
and minimize labor hours
Inspect, troubleshoot, and assess any production or equipment
problems
Ensure all products meet Krispy Kreme quality standards

RECOMMENDATION
Sales
Work with the General Manager to achieve business plan objectives
and profitability as set forth in the commissary operating plan and in
the established financial goals

Safety and Sanitation

Demonstrate safety consciousness and promote commissary safety,
e.g. shoes, floor cones, etc.
Maintain a high level of commissary sanitation and cleanliness, e.g.
cleaning schedules, training, etc.

Thank
you!