Peñaflorida, Jiannena L.
January 5, 2011
BS- Accountancy/ AC4A/ MW/ 1:00-2:30pm
CASE STUDY: Krispy Kreme Doughnuts
Determine whether you think KKD should expand globally, and if so, where and how fast, or should the firm be expanding further domestically? Suggest strategies for KKD which is trying to recover from several years of weak performance, especially as compared to rival Dunkin’ Donuts.
ANALYSIS AND RECOMMENDATION
Krispy Kreme Doughnuts should continue to expand globally. I think this would surely help them recover from the losses they suffered in the past years. But also, they must have a solid consumer base in the United States and in Canada. They should focus on having franchisees on Southeast Asia, where people patronize products from the West. Some examples of these countries are Japan, Taiwan, China and the Philippines. Krispy Kreme could put up franchise stores internationally from 30-50 locations on the next year. They should not be in a hurry and every decision must be well-studied, especially now that they are facing some financial setbacks and difficulties.
If Krispy Kreme decide to put up more stores in Europe, it will be hard for them to penetrate fully the market. As we all know, Europeans are traditional when it comes to their food. They still prefer eggs and bacon for their breakfast, unlike the Americans who can eat doughnuts during the mornings. To lessen the cost of stabilizing the company in Europe continent, they might as well put up a factory of Krispy Kreme there in order for them to save on transporting doughnut mixes and equipments from United States to Europe. If there is a factory in a European country, then it will be easier to transport the ingredients from another country in Europe.
Krispy Kreme’s number-one competitor is Dunkin’ Donuts. Here in the Philippines, Dunkin’ Donuts is tagged as the “Pasalubong ng Bayan”. It has its own impact in the Filipino...
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