Krispy Kreme - 2008 Case Analysis
University of the Philippines Cebu College
Management Division
Lahug, Cebu City
Mgt 190 Case Analysis #1
Krispy Kreme Doughnuts
Date Due: December 16, 2010
Date Submitted: ___________________
Submitted to:
Professor Jesus C. Cinco, Jr.
Submitted by:
Group 3
Vien Carmelo Garcia – Team Leader
Eugene Lov Llagono
Annaliza Lisondra
Ryzza Lynn Mancio
Jocelyn Medico
Ma. La Arnie Mesa
EXECUTIVE SUMMARY
KKD is one of the largest doughnut brands in the world. Recently, the company has suffered major problems as it incurred losses over the past years. Its stock price plunged yet rebounded. Competitors in the US Quick Service Restaurant industry has become stiffer paired with the changing consumer demands and preferences. However, several opportunities are showing in the foreign markets especially the Asian market as well as in the domestic market. The generic business strategy for KKD is product differentiation.
Weighing on the company’s strengths, weaknesses, opportunities and threats, intensive strategies were considered. Further analysis showed that market development is the most suitable strategy for the firm to pursue based on several factors such as feasibility, profitability and changes in the environment. With Krispy Kreme Doughnuts being a strong brand (with its trademark doughnuts), the chosen strategy will facilitate the rebound of the company in terms of its financial performance, company growth and market share. It is also consistent with the vision of becoming of the world’s first choice for doughnuts and the objective of increasing their international presence, increase revenue and net income.
Table of Contents
PROBLEM STATEMENT 1 VISION 1 MISSION 1 OBJECTIVES 2 Financial (refer to Balanced Scorecard) 2 Strategic (refer to Balanced Scorecard) 2 SITUATION ANALYSIS 2 Internal Environment Analysis 2 Financial Analysis 2 Value Chain Analysis 4 External Environment Analysis 5 General Environment
Management Division
Lahug, Cebu City
Mgt 190 Case Analysis #1
Krispy Kreme Doughnuts
Date Due: December 16, 2010
Date Submitted: ___________________
Submitted to:
Professor Jesus C. Cinco, Jr.
Submitted by:
Group 3
Vien Carmelo Garcia – Team Leader
Eugene Lov Llagono
Annaliza Lisondra
Ryzza Lynn Mancio
Jocelyn Medico
Ma. La Arnie Mesa
EXECUTIVE SUMMARY
KKD is one of the largest doughnut brands in the world. Recently, the company has suffered major problems as it incurred losses over the past years. Its stock price plunged yet rebounded. Competitors in the US Quick Service Restaurant industry has become stiffer paired with the changing consumer demands and preferences. However, several opportunities are showing in the foreign markets especially the Asian market as well as in the domestic market. The generic business strategy for KKD is product differentiation.
Weighing on the company’s strengths, weaknesses, opportunities and threats, intensive strategies were considered. Further analysis showed that market development is the most suitable strategy for the firm to pursue based on several factors such as feasibility, profitability and changes in the environment. With Krispy Kreme Doughnuts being a strong brand (with its trademark doughnuts), the chosen strategy will facilitate the rebound of the company in terms of its financial performance, company growth and market share. It is also consistent with the vision of becoming of the world’s first choice for doughnuts and the objective of increasing their international presence, increase revenue and net income.
Table of Contents
PROBLEM STATEMENT 1 VISION 1 MISSION 1 OBJECTIVES 2 Financial (refer to Balanced Scorecard) 2 Strategic (refer to Balanced Scorecard) 2 SITUATION ANALYSIS 2 Internal Environment Analysis 2 Financial Analysis 2 Value Chain Analysis 4 External Environment Analysis 5 General Environment