KKD Krispe Kreme

8/6/2019 KKD Krispe Kreme

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Krispy Kreme


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Introduction:

Krispy Kreme is one of the most recognized brand in the doughnuts industry,

their Original glazed cant be found in any other doughnuts stores around

the world.

Krispy Kreme doesn't offer a taste only, but it offers joy, delightful memories

and delicious experience that you will not forget about.

From a secret recipe in Salt lake , to A very well know doughnuts around the

world, we will know the origins of Krispy Kreme, the Ups and downs , and

the current performance of the Krispy Kreme.


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About Krispy:

Krispy Kreme Doughnuts was founded in 1937 by its

co-founder Vernon Randolph, in North Carolina.

In the 40s, Krispy started selling directly to customers

instead of selling the doughnuts to groceries.

the first international store of Krispy was opened in

2001 in Canada.

2006 was the year of terminating the largest

franchisee license of Great Circle Family Food.


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T

he Actual Vision:to be the worldwide leader in sharing delicious

tastes and creating joyful memories.

The Actual Mission:

to touch and enhance lives through the joy that is

Krispy Kreme.

The points included in the mission:

6. Philosophy, 8.Public image.


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The Proposed Vision:

To become the leader of the doughnut industry in the world.

The proposed Mission:Our mission is to provide our customers1with the best of our Krispy

Kreme doughnuts and coffee2, and to insure consistency in all of

KKD branches around the world3. We are looking forward to

watch our franchisees

9

financially to keep going to achieve ourvision5. We make sure that the ingredients we use are the best6.

The public image has a high priority in our company so we'll keep

participating in the community through supporting the social

events and donations8. Our signature original glazed will continue

to be our unique product and offered in all of our stores aroundthe world7.

1) Customer,2)Products or service, 3)Market, 4)Technology5)Concern for

survival,6)Philosophy, 7)Self concept, 8)Concern for public image, 9)Concern

for employees.


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KKD divisions and operations:

KKD have 523 stores all over the world, there are

two types of Krispy Kreme stores:

1. Factory Stores: which usually contain a

doughnut-making production line in addition to

retail establishments.

2. Satellite Stores: which sells doughnuts and

beverages.


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Profit Generators:

1. From the factory stores owned by the KKD

itself.

2. The franchisee fee.3. KKD supply chain is produces doughnuts

mixes and manufactures the doughnut-

making equipment, which all the factory

stores are required to buy in order to

produce the famous doughnuts.


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KKD Starbucks Tim Horton's

Critical Success

Factors

Weight Rating Weighted

Score

Rating Weighted

Score

Rating Weighted Score

Market Share

Price

Financial Position

Product Quality

Product Diversity

Consumer Loyalty

Employees

Sales distribution

Global Expansion

E-commerce

0.15

0.10

0.15

0.10

0.10

0.15

0.05

0.05

0.10

0.05

2

3

1

3

2

3

2

3

4

2

0.30

0.30

0.15

0.30

0.20

0.45

0.10

0.15

0.40

0.10

4

3

4

4

3

4

4

3

4

3

0.60

0.30

0.60

0.40

0.30

0.60

0.20

0.15

0.40

0.15

3

3

3

4

3

3

2

2

1

3

0.45

0.30

0.45

0.40

0.30

0.45

0.10

0.10

0.10

0.15

Total 1.00 2.45 3.70 2.8

CPM Competitive Profile Matrix:


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External Audit


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Opportunities:

1. Consumers' demands on organic food areincreasing.

2. The opportunity to penetrate the E-commerce

field, since this field is growing rapidly.3. The weak US dollar makes the US products and

technologies more affordable in Europe andAsia.

4. The demands on the diet products areincreasing.

5. The increasing fame of the Coffee as a main

drink.


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Threats:

1. The latest recession caused a decrease in the

costumer's spending.

2.T

he raw materials prices are increasing.3. The diversified menu that the Dunkin' Donuts

got.

4.T

he huge expansion of Starbucks in the USand worldwide.

5. The company's late reaction to the low profit

in the last five years.


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Internal Audit


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Strengths:

1. Adding new items to the menu such as: the

frozen beverages.

2. Having a well designed web-site, tocommunicate with the costumer.

3. A very strong brand name that's well-known

around the world.

4. Offering new kind of services such as opening

small shops and opening late nights.


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Weaknesses:

1. The company's stock price dropping from $40

to below $10.

2. Having several CEOs in short period of time

which means not having a stable strategy

3. Closing several branches, franchisees in the

US are declining.

4. Not offering adjusted products to meet thediet growing awareness, the original glazed

still contains 200 calories with 12 grams of

fat.


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Key Internal Factors Weight Rating Weighted

Score

Strengths

A very strong brand name that's

well-known around the world

0.06 4 0.24

Having a well designed web-

site, to communicate with the

costumer.

0.04 3 0.12

Adding new items to the menu

such as: the frozen beverages.

0.06 3 0.18

Using high quality ingredients in

order to meet the consumer's

expectations.

0.06 4 0.24

Offering new kind of services

such as opening small kiosksand opening late nights.

0.06 4 0.24

Making the production process

available to the public to see in

order to create a sort of

transparency between the KKD

and its consumers.

0.06 4 0.24

Internal Factor Evaluation (IFE) Matrix


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Weaknesses

1. The company's stock price dropping

from $40 to below $10. 0.10 2 0.20

1. Having several CEOs in short period of

time which means not having a stable

strategy.0.05 2 0.10

1. The late response the company's bad

position in the market, thou havingseveral signs before indicates that the

company was not doing well.

0.05 1 0.05

1. Closing several branches, franchisees in

the US are declining.

.

0.06 2 0.12

1. Not off ering adjusted products to meet

the diet growing awareness, the original

glaze still contain 200 calories with 12

grams of fat

0.10 1 0.10

TOTAL 1.00 2.63


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SWOT Strategies:

SO:

1. Penetrating the E-commerce by utilizing KKD well

designed web site to establish online ordering, since

the E-commerce is starting to expand. O2,S6

2. Introduce low-fat products and add diet products to

the menu. O4,S1

WO:

1. Create a new diet products menu, made withorganic ingredients. O4,W3

2. Increase their stock price by declining of the US

dollar value. O3,W1.


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SWOT Strategies:ST:

1. Start using high quality ingredients, to meet the

customer high awareness to health issues caused by

high calorie food. S3,T2

2. Continue stretching the brand name by opening newbranches around the world, to compete with Starbucks

expanding. S5,T4

WT:

1. Close the branches that are not doing well in the US and

the rest of the world. W5,T5

2. The increasing awareness of the public to the health

issues, so KKD needs to introduce a new diet

menu.W3,T2


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QSPM (Quantities strategic planning matrix)

Key Internal Factors Weight

Create new line oforganic doughnuts

Start up strategicalliance with Burger

King

Strengths AS TAS AS TAS

A very strong brand name that's well-known

around the world.

0.06 3 0.18 4 0.24

Having a well designed web-site, to

communicate with the costumer.

0.04 --- --- --- ---

Adding new items to the menu such as: the

frozen beverages.

0.06 --- --- --- ---

Using high quality ingredients in order to meet

the consumer's expectations.

0.06 3 0.18 2 0.12

Offering new kind of services such as opening

small kiosks and opening late nights.

0.06 --- --- --- ---

Making the production process available to the

public to see in order to create a sort of

transparency between the KKD and its

consumers.

0.06 --- --- --- ---


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Recommendations:


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1. That KKD should starts implementing new

strategy with investing in R&D, to find newcombination of ingredients to come up with

new menu for the diet people.

2. They should search for the reasons for thedeclining of the branches in the US and the

rest of the world.

3. Also having a diversified menu will help KKD

to improve its profits and secure them, by

offering new items besides doughnuts such

as: Cupcakes, muffins, Ice creams and

cookies.


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TThankhank yyouou fforor

LListeningistening;);)

Documents

KKD Krispe Kreme