Krispy Kreme Analysis Report

Table of Contents

Executive Summary………………………………………………………………..3

Krispy Kreme Strategies……………………………………………………….…………………..4

Competitive Profile Analysis…………………………………………………………………………….5

Financial Position…………………………………..…………………………….7

SWOT Analysis…….…………………………………………..………………………….8

Recommendation…………………………………………………………………..9

Executive Summary
Krispy Kreme was founded in 1937. It is a company that specialized in donuts hot from the fryer and loaded with sugar. The company had experienced a rapid increase of sales, expansion, and customer awareness. In a short period of time, the company has gotten into financial and legal trouble. Based on my assessment of the critical issues Krispy Kreme was heading for trouble prior to 2004. It should not have been a surprise to them or some of the investors. The company made several serious mistakes. The company was expanding too rapidly. Most importantly, they did not focus on the consumer needs or their competition.

The obesity rate in America, according to the Centers for Disease Control, 61 percent of all U.S. adults are considered either overweight or obese; the rate for kids aged 6-19 is 15 percent. The rise for the demand of the Adkins diet and the South Beach diet, many consumers were seeking ways to be increasingly healthier with the low carbohydrate diets. While there competitors were changing the way they do business by including other products on the menu that were health conscious instead of donuts, Krispy Kreme lacked in changing their strategic plans. A company’s strategy is management’s game plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations, and achieving targeted objectives (Thompson, Gambel, & Strickland, 2006, p.3). In reviewing the history of Krispy Kreme, one of the main weaknesses that stand out to me is that it lacks a clear mission and vision statement. However, the only stated objective was to... [continues]

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