Globalization Of Krispy Kreme

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Summarize the business that you have chosen, and provide a two to three (2-3) paragraph justification as to why China would be a viable market for the selected business. Krispy Kreme employees around 4,300 employees and has the honor of being one of the only companies as of September 2014 that does not use oils from suppliers who do not destroy rainforests. Krispy Kreme was founded in 1937 in Winston-Salem, North Carolina. Krispy Kreme has not only become an American global doughnut company and coffeehouse it has also become a everyday go to internationally. Krispy Kreme has grown from the small rented building in what now historic old Salem in Winston,NC to a privately owned restaurant of over 1000 stores. February 24, 2015 was the opening …show more content…

It reflects that in November 2015 US $1.00 was being exchanged for 6.336 Chinese Yuan and increased daily. It can be understood from the graph that Chinese Yuan is a very unpredictable currency. With so much up down, this could potentially cause a risk. For that reason, closely analyzing the exchange rate becomes imperative. First, it is not as bad as it looks. China is still a closed economy. The government controls the foreign exchange rate. Nevertheless, one look at a USD-CNY chart and it is obvious that the Central Bank of China is worried about something. Rather it is a slow domestic economy or a worsening international one. The dollar has gone straight up against the Yuan since Feb. 18. The currency is now worth 6.12 to the dollar when a month ago it was around 6.04. A year ago, it was 6.22, so the Yuan continues to appreciate as the market expects, and as the government of China promised. Krispy Kreme is an ideal company for this market as it targets all classes. In addition, Krispy Kreme is a family oriental business that would fit wonderfully in the family oriental country of china. Furthermore, as already stated Yuan continues to appreciate as the market expects, and as the government of China promised, therefore China will be a great expansion for Krispy Kreme. Analyze the major exchange rate risks associated with transaction and translation exposure within the Chinese market. Based on what you have gleaned from your analysis, predict the major changes that you believe will occur in the next 24 months. Justify your

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