Krispy Kreme

TABLE OF CONTENTS

KRISPY KREME DOUGHNUTS

Introduction

- Company Profile 3

- Company VMGO 4

- Current Strategies 4

- Current and Past Performance Analysis 5

- Board of Director Analysis 14

External Analysis

- Five Force Analysis 15

- Industry Competitors/ Competitor Analysis 17

- Opportunities 21

- Threats 21

Internal Analysis

- Corporate Resource Analysis (CRA) 22

- Core Competencies 23

- Strengths 25

- Weaknesses 25

Strategy

- Business Level Strategy 26

o Differentiation and Customer oriented

- Corporate Level Strategy 26

Implementation

- Balance Scorecard Approach 34

o Domestic Strategy 34

o International Strategy 36

- Forecasted Financial Statement 39

Introduction

Krispy Kreme Doughnuts is a restaurant services company that provides doughnuts and coffee. The company is a branded specialty retailer, and produces more than three million doughnuts a day. In addition to its Krispy Kreme stores, the company sells its doughnuts in supermarkets, convenience stores and other retail outlets throughout the country. The company also serves premium coffee and espresso drinks. Krispy Kreme is headquartered in Winston-Salem, North Carolina..

Krispy Kreme has been in the doughnut business for over 66 years and is growing stronger that ever. Founded by Vernon Rudolph in 1937, Krispy Kreme has been a specialty retailer for doughnuts from the very beginning. In the early stages of the company, Rudolph had rented a building to make the doughnuts and had a delivery truck that took the doughnuts to grocery stores to be sold. As the company grew, Rudolph launched a small chain of stores that were mostly family-owned, which all were making their own doughnuts. However, as the years passed by, Rudolph discovered a need for consistency in the company’s doughnut making process so the company built a distribution center that would deliver the perfect mixture of doughnut mix to each store; this ides stuck. Since the 1940’s Krispy Kreme has invented and built their own doughnut-making equipment and have been successful at it ever since.

Through the 1960s, Krispy Kreme was growing steadily in the south, but also lost their founder. When Vernon Rudolph died in 1973 the company’s growth slowed down tremendously, and they were sold in 1976 to Beatrice Foods. Krispy Kreme was not the fight fit for Beatrice Foods so the Krispy Kreme Company became its own company again after the franchisees bought them back from Beatrice in 1982. in the mid to late 1980s, Krispy Kreme began to focus on what their founder focused which was the hot doughnuts experience. They did this by designing their stores to have the maximum experience for each customer by having the doughnut making process done right before their eyes. This was a huge success and their popularity and growth spread fast.

Over the past decade, Krispy Kreme’s brand name has become very valuable because of the quality that goes into making their doughnuts. Finally on April 5, 2000, Krispy Kreme went public. They offered three million shares of common stock for the initial public offering. They traded on the NASDAQ Stock Exchange under the symbol KREM. Currently the company produces more than 5 million doughnuts a day and over $1.8 billion in sales a year and had approximately 250 stores in 36 states and Canada. Also, like the company did the very beginning, they are still selling their doughnuts to grocery stores. With the continued improvement of the doughnut making process and the innovation of the equipment within Krispy Kreme, this company looks very strong and shows even a potential to be stronger by catching a bigger market perhaps overseas and expanding