Preview

A Case Study on Krispy Kreme Donuts

Good Essays
Open Document
Open Document
2349 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
A Case Study on Krispy Kreme Donuts
CASE FORMAT
KRISPY KREME DOUGHNUTS, INC. --- 2004

1. Title Page
a. Case title
b. Group Members
c. Class schedule
d. Term and school year
e. Date submitted
2. Content
a. 1-page Case Summary
b. Proposed Vision and Mission Statement for KKD
c. External Audit --- EFE Matrix
d. Competitors Analysis --- CPM
e. Financial Ratio Analyses
f. Internal Audit --- IFE Matrix

aveA Case Study on Krispy Kreme Doughnuts, Inc
A Case Study on Krispy Kreme Doughnuts, Inc
________________________________________
1. A Case Study on Krispy Kreme Doughnuts, Inc
Company Overview
Krispy Kreme is a company that despite its history dating back to 1937, has only started to experience rapidly increasing sales, expansion, and customer awareness in the last few years. Recently, however, the company has gotten into financial and legal trouble and is struggling to survive. This case is an evaluation of Krispy Kreme’s past and present business performance, internally and with regard to the external environment it is operating within. The study will conclude with both insights and recommendations Krispy Kreme should implement based on these evaluations and our SWOT Analysis.

Mission & Vision
One of Krispy Kreme’s main weaknesses is that it lacks a clear mission and vision statement. The only stated objective was to have a successful Krispy Kreme in every town in the United States. As a result, Krispy Kreme has suffered financial difficulties. Krispy Kreme tried to expand too rapidly and is now paying for it financially. Krispy Kreme made a good decision to shift its focus back to retail business rather than selling solely to wholesalers.

Company Structure
Krispy Kreme was originally a partnership, but now is a corporation. As a corporation, Krispy Kreme has limited liability, the ability to obtain finances for expansion, and a perpetual life. In addition, it has easily changeable ownership, attractiveness to potential employees, and the ability to obtain finances from

You May Also Find These Documents Helpful

  • Better Essays

    Krispy Cream

    • 927 Words
    • 4 Pages

    By asserting that the reacquired franchise asset has indefinite life, Krispy Kreme can expand its economic benefits. On its 2003 balance sheet, the company has reacquired franchise rights as asset that worth $48,502; and as the company continues to reacquire franchise rights, the worth of its asset boosts up to $174,537 the next year (Exhibit 1). In addition, because the rights have indefinite life, they do not have to be amortized. Net income becomes greater.…

    • 927 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    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.…

    • 1977 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Krispy Kreme

    • 1578 Words
    • 7 Pages

    In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U.S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales. They also announced the sales of a the Montana Mills bakery chain of 28 bakery café’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were…

    • 1578 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Krispy Kream

    • 708 Words
    • 3 Pages

    Analysts are predicting that Krispy Kreme will be able to perform highly effectively andcontinue to grow rapidly in the coming two years. Do you agree with their analysis? If so, why? If not,why not?…

    • 708 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Krispy Kreme Doughnuts, as discussed in Darden Business Publishing Case UVA-F-1479, appears to be at a crossroads. After years of astronomical growth, the company find its share price plummeting in the midst of discoveries about faulty accounting practices. The following paper examines several issues behind the sudden decline First, the historical income statements and balance sheets are examined to determine the financial health and current condition of the company. This is followed by an analysis of key financial ratios across time and versus industry standards. Next, the paper addresses if Krispy Kreme is financially healthy at year-end 2003 and, if so, what accounts for the firm’s recent share price decline. The paper concludes with a discussion of the intrinsic investment value in the company.…

    • 2204 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Krispy Kreme

    • 4063 Words
    • 17 Pages

    This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts, Inc., associated with a series of announcements made in 2004. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one of the most rapidly growing American corporations in the new millennium. The task for the student is to evaluate the implications of those announcements and to assess the financial health of the company. This case is intended to be introductory as it can provide a first exercise in financial statement analysis and lay the foundation for two important financial themes: the concept of financial health, and the financial-economic definition of value and its determinants.…

    • 4063 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Krispy Kreme

    • 457 Words
    • 2 Pages

    Krispy Kreme was known throughout the Southeast, and it began to expand into other areas. In 1976, Krispy Kreme Doughnut Corporation became a wholly owned subsidiary of Beatrice Foods of Chicago, Illinois. The headquarters for KrispyKreme remained in Winston-Salem. A group of franchisees purchased the corporation back from Beatrice Foods in 1982. Krispy Kreme began another phase of rapid expansion in the 1990s, opening stores outside the southeastern United States where most of their stores were located. Then, in December 2001, Krispy Kreme opened its first store outside the U.S. in Mississauga, Ontario, Canada, just outside Toronto. Since 2004, Krispy Kreme has rapidly expanded its international operations.…

    • 457 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Kroger Case Study

    • 375 Words
    • 2 Pages

    The senior vice president of Kroger Co., Katy Barclay, believes that investing in their employee engagement has contributed to the success of Kroger. These successes include increasing sales and profits and customer loyalty and productivity. “We truly believe that Kroger's continued success in driving its competitive advantage will in large part be determined by how our associates engage with our customers,” Barclay said. “That's our sweet spot. That's what creates a superior shopping experience, (Springer, pp.1).…

    • 375 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Krispy Kreme

    • 4660 Words
    • 19 Pages

    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:…

    • 4660 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    3) How much of your own and your roommate’s valuable time will it take to fill each order?…

    • 534 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Donut House Case Study

    • 867 Words
    • 4 Pages

    An exclusive use clause is a valuable and often negotiated provision in leases. An “exclusive” prohibits a landlord from leasing space to another tenant that will operate a similar business or sell similar products. For example, a gym tenant may seek an exclusive to prevent the landlord from leasing space to other gyms, or a donut shop may seek an exclusive to prevent another tenant from selling baked goods for on or off premises consumption. Consider the following tips when negotiating an exclusive use provision on behalf of a landlord or tenant.…

    • 867 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The purpose of doing this business analysis is to decide whether or not to invest in McDonald’s. It is regarded as one of the leading organizations within the global marketplace. As a result, the preceding discussion will provide a SWOT analysis of some key areas, since the identification of an organization’s strengths etc… acts as a critical core element in identifying its competitive advantage and potential as an investment opportunity. Internal and External stakeholders will be identified to help analyze their wants and needs.…

    • 983 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    This report provides an analysis and evaluation of the current and potential growth of Krispy Kreme Doughnut Corporation’s quarterly profit margin, financial mistakes, and company vision. It discusses critical decisions that they made and suggests some ideas that could solve the problem.…

    • 1699 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    1) The image I first have when I hear about Bitter Girls is an image of girls being mean and very hateful. The strengths and weakness about the name plays a huge role. The strengths of the name are a great marketing scheme because it makes you interested in founding out information. The weakness is that the name doesn’t sound so appealing, so that may not attract people to Biter Girls. If you do not know the message it sounds like an terrible organization.…

    • 356 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Over one-fourth of revenue generated by Krispy Kreme had been tied to the growth in the number of franchised stores because in addition to the franchise fee and loyalty payments, the company also requires franchisees to buy equipment and ingredients from headquarters at marked-up prices. So, the company almost tripled its unit base since 2000 to 2004 (company factory store from 58 units to 141 units and franchised factory…

    • 757 Words
    • 4 Pages
    Good Essays