Krispy Kreme is a relatively small doughnut seller. It has only 295 stores while Dunkin Donuts has over 3,600 outlets in the United States and Canada. In spite of its size, Krispy Kreme has been described by many as “the hottest brand in America.” The company’s success in an environment which has made success difficult for many food operations is due in large part to the long-term vision of its top management and its establishment and achievement of S.M.A.R.T. goals. The company originated in Winston-Salem, North Carolina, in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until he died in 1973 without naming a successor, which caused the company problems for the next decade.…
A SWOT Analysis is a “situational in which internal strengths and weaknesses of an organization, and external opportunities and threats faced by it are closely examined” to provide an adequate strategy (http://www.businessdictionary.com/definition/SWOT-analysis.html). Panera Bread Company has become one of the leading companies in the quick casual restaurant market.…
Rights Perspective: The way Krispy Kreme accounted for the incorrect revenue, violated the rights of their shareholders since it was a public company and was on the NYSE, it did not give the correct view of the company has a whole to those who had invested in the company.…
Looking at current reports on their business, we were able to determine some of the issues the company is trying to resolve, in order to achieve growth and excel them above their competition. By conducting a SWOT analysis, we are able to outline a model that assesses what they need or can do regarding both internal (strengths and weaknesses) and external (opportunities and threats). A SWOT analysis is a simple, straightforward framework that provides direction and serves as a catalyst for the development of viable marketing plans and structures the assessment of the fit between what a firm can and cannot do (internal), and the environmental conditions working for and against them (external) (Ferrell & Hartline,…
Their competitors are their largest weakness. Dunkin’ Donuts doesn’t spend much on their advertising and marketing as their competition does. The increasing cost of coffee beans and raw materials is also a weakness as their product pricing is already considered expensive (Altmann, 2007). Current trends pose as another weakness for them. As the trend for healthy living continues it’s important for them to stay current and introduce new products to meet those new consumers’ needs and wants (Altmann, 2007). Another weakness Dunkin Donuts faces are the legal and regulatory forces and trends that harbor setbacks for the company. Dunkin donuts stores are franchised out and it’s up to each individual stores franchisee owner to make sure they follow all of the rules, regulations and requirements set for the store. The most common issue among franchises is related to failed payments. Such as the case in Richmond, Virginia in 2013 when 7 stores were temporarily closed because they failed to pay for franchise and advertising fees (Blackwell,…
A SWOT analysis allows McDonald’s to consider advantages that may help tell the differences between them and their competitors. Analysing weaknesses shows what McDonald’s can do to improve their business in order to gain more customers. Opportunities and threats analysis help McDonald’s determine the current and future viability of their business plan. With PESTLE, it allows McDonald’s to consider the external factors that may positively or negatively affect the development of their business. For instance, some companies thrive during a tough economy, while many struggle because of more budget-conscious customers.…
Firms must craft and execute a strategy in order to be successful in today’s global marketplace. Before they can create or implement a strategy, however, firms must know their current position in the market. One way to achieve this is through performing a SWOT analysis. A SWOT analysis is defined as “a simple but powerful tool for sizing up a company’s resource capabilities and deficiencies, its market opportunities, and the external threats to its future well-being” (Thompson, A., Strickland, A., & Gamble, J., 2010, p. 106). This tool assesses internal strengths and weaknesses of a corporation, while looking to the external environment for opportunities and threats. A SWOT analysis of the Starbucks Coffee Company will reveal its past successes, recent failures and determine a strategy for the future.…
I chose to do a SWOT analysis on the business plan of Studio 67 which is a trendy organic medium size restaurant located in Portland, Oregon. SWOT stands for Strength Weakness Opportunities and Threats. The SWOT analysis helps entrepreneurs come up with a strategic plan and determine if a product, service, or business is worth the risk. The SWOT analysis is like a pros and cons list, where strength and opportunities are the pros and weaknesses and threats are the cons. I chose this business plan because it is similar to something that I might want to do in the future. Health food restaurants are what society needs and I plan to contribute to the health of our generation and up coming generations.…
We have concluded that these declining sales and profits are effects of Krispy Kreme Australia’s attempts to expand too rapidly and a failure to understand, define and communicate to an appropriate target market. Krispy Kreme will need to reevaluate their marketing strategy in order to combat changing trends and current threats. The recommendations we made for Krispy Kreme are as follows:…
We focus our area of expertise which is to entertain everyone, especially the household. We do not enter the segment that we don’t excel such as hardcore video games (wars, violence, etc.)…
Collins Dictionary of Business defines SWOT analysis as “a framework for identifying the internal strengths (S) and weaknesses (W) of a firm, and the external opportunities (O) open to it and the threats (T) it faces, which can be used by corporate planners in formulating the firm’s competitive strategy and marketing strategy in individual product markets and its overall business strategy” (2006). Through knowing the general definition of SWOT analysis, we can begin to break down the pieces of SWOT analysis by the internal and external factors.…
After Krispy Kreme’s share (KKD) reaching its peak in Aug, 2003, at nearly $50, only a year after that, KKD was trading only at $14 on the New York Stock Exchange. Company stated that the breathtaking fall was the result of the impact from the diet trend in the US. However, the gospel truth was the poor performance in their expansion strategy and the aggressive reacquisition plan. But, the most unforgivable failure was to unable timely file its FY2004 financial report. As a result, KKD could constitute a default under their $150 million credit facility, and has lost nearly $2.5 billion in its market value of equity.…
7-Eleven sees the potential of Krispy Kreme’s segmentation which their customers like variation in doughnuts flavours. Therefore, 7-Eleven continues to work with Krispy Kreme develop new rotational flavours in addition to the core range as part of their strategy to keep their customers coming back to try new flavours. Moreover, 7-Eleven sees an opportunity their offering as increasing profit by encouraging new customers to come to 7-Eleven stores to buy Krispy Kremes and also other products, and increasing the frequency of visits of existing customers.…
Since Krispy Kreme Doughnuts is a franchise throughout the world there are only certain entry modes that would be possible. As a group we decided that there are two possible modes, which are direct investment through wholly owned subsidiaries or joint-venture. The entry modes were tested on the following six criteria:…
The second disadvantage is the single product concept and the lack of variety of Krispy Kreme products. Historical success for quick service type products revenue growth is slowest among any restaurant type. The product is not a necessity in hard times and external environmental conditions…