Enviromental Analysis for Krispy Kreme

Topics: Krispy Kreme, Dunkin' Donuts, Doughnut Pages: 27 (6133 words) Published: July 22, 2011
Krispy Kreme Turnaround Strategy
Strategy Coursework
John Ellis Group Arif Harbott Claudio Paleari Pia Gowland Ronald Garricks Tim Joslyn

EMBA EMBA Sep10 Strategy 1 - John Ellis Group v016.pdf September 2010 Date: 12th January 2011 Word Count (excluding tables and Appendices): 2992

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Table of Contents
1  Introduction ....................................................................................................................... 3  2  Current strategy ................................................................................................................ 3  3  External Analysis .............................................................................................................. 3  3.1  Industry definition ................................................................................................................... 3  3.2  PEST analysis ........................................................................................................................ 3  3.3  Industry five forces ................................................................................................................. 4  3.4  Competition analysis .............................................................................................................. 6  4  Analysis of internal environment ....................................................................................... 9  4.1  Internal value chain ................................................................................................................ 9  4.2  Financial analysis ................................................................................................................. 10  5  Key themes from analysis............................................................................................... 11  6  Recommendations .......................................................................................................... 11  6.1  Abandon large format stores and sell via third party retailers using mobile kiosks .............. 12  6.2  Develop new distribution capabilities ................................................................................... 12  6.3  Sell direct online targeting businesses ................................................................................. 13  7  Implementation plan ....................................................................................................... 14  Appendix A – Competition Identification............................................................................... 15  Appendix B – Consumer Research ...................................................................................... 18  Appendix C – Interviews with Krispy Kreme Staff ................................................................ 20  Appendix D – Internal Analysis ............................................................................................ 21  Appendix E – Mobile Kiosks ................................................................................................. 23  Appendix F – Financial Modelling ........................................................................................ 24  Appendix G – Value Curve Analysis .................................................................................... 25  Appendix H – How analysis can be improved ...................................................................... 26  Appendix I – Krispy Kreme historical Revenues .................................................................. 27  Bibliography.......................................................................................................................... 28   

EMBA Sep10 Strategy 1 - John Ellis Group v016.pdf

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1 Introduction
In 2003 Krispy Kreme was named by Fortune Magazine as ʻAmericaʼs Hottest Brand” and in 2004 they reported net income of $50 million. However over-expansion, an expensive store network, revelations of...

Bibliography: Bennett J, Cohen B, Bubb J (2009). Krispy Kreme: The Franchisor That Went Stale http://hbr.org/product/krispy-kreme-the-franchisor-that-went-stale/an/KEL454-PDF-ENG Bird P (2003). Dunkin ' Donuts Inc http://www.kzwp.com/lyons/dunkin.htm Bloomberg – Krispy Kream Doughnuts – Revenues Carioti R. (2002). Selling Like Hot Cakes http://www.time.com/time/magazine/article/0,9171,901020812-333841,00.html Craver R. (2010). Krispy Kreme ponders pastry delivery http://www.thesunnews.com/2010/11/28/1835387/krispy-kreme-ponders-pastrydelivery.html Farley-Jones J. (2010). Krispy Kreme to run first above-the-line work http://www.campaignlive.co.uk/news/1030139/Krispy-Kreme-run-first-above-the-line-work/ Hoovers (2009). Krispy Kreme Doughnuts Inc Profile Hoovers (2010). Specialty Eateries Industry Definition http://www.hoovers.com/industry/specialty-eateries/1445-1.html Krispy Kreme (2010). Annual Report http://investor.krispykreme.com/annuals.cfm Krispy Kreme (2010). Nutritional information http://www.krispykreme.co.uk/doughnuts/nutritional-info/ Krispy Kreme (2010). Fundraising http://www.krispykreme.co.uk/fundraising/raise-dough/ Mastrull P. (2010). Krispy Kreme back in Philly with new business recipe http://www.philly.com/inquirer/business/20101114_Krispy_Kreme_back_in_Philly_with_ne w_business_recipe.html McGuigan P. (2010). Krispy Kreme reveals plan http://www.bakeryinfo.co.uk/news/fullstory.php/aid/6663/Krispy_Kreme_reveals_plan_to_d ouble_UK_stores.html Michelman P. (2007). Is There a Hole in Krispy Kremeʼs Comeback Plan? http://blogs.hbr.org/cs/2007/03/is_there_a_hole_in_krispy_krem.html Peach Report (2009). How Krispy Kreme brought doughnuts to the UK http://www.peachreport.com/Latest/366375/how_krispy_kreme_brought_doughnuts_to_the_uk.html Rusch R. (2001). Krispy Kreme on the rise http://www.brandchannel.com/features_effect.asp?id=70
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S&P (2010). Krispy Kreme credit rating http://www.standardandpoors.com/prot/ratings/entityratings/en/us/?entityID=281266§orCode=CORP S&P (2010). Starbucks credit rating http://www.standardandpoors.com/prot/ratings/entityratings/en/us/?entityID=271969§orCode=CORP Serwer A. (2003). The Hole Story How Krispy Kreme became the hottest brand in America http://money.cnn.com/magazines/fortune/fortune_archive/2003/07/07/345535/index.htm Starbucks (2010). Starbucks http://en.wikipedia.org/wiki/Starbucks Kowalski, R. (2006). Starbucks Wars: How McDonald 's and Starbucks Defined Their Industry http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffee-tea/39773181.html Thomas J. (2010). How one rival doughnut franchise is cashing in on Krispy Kreme closures http://www.smartcompany.com.au/advertising-and-marketing/20101116-how-one-rivaldoughnut-franchise-is-cashing-in-on-krispy-kreme-closures.html Various (2010). Krispy Kreme http://en.wikipedia.org/wiki/Krispy_Kreme
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