Krispy Kreme Case Study

  • Length: 1162 words (3.3 double-spaced pages)
  • Rating: Excellent
Open Document

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Text Preview

More ↓

Continue reading...

Open Document

Krispy Kreme Case Study

To become a Krispy Kreme franchisee, an entrepreneur must have the dream of one day owning their own business, have a willingness to take risks, be able to recognize opportunities when they occur and be a naturally optimistic thinker who can use their time, capital, and talent to achieve success. To be considered for a Krispy Kreme franchise, entrepreneurs must have demonstrated a time standing history of success as a businessperson, to be willing to work as part of and to foster a team environment, as well as have a large financial base in which to invest in the Krispy Kreme franchise. Although these characteristics are a solid base to be considered for any franchise, there is always risk of failure. In the words of General Colin Powell, former US Secretary of State, "A dream doesn't become reality through magic; it takes sweat, determination, and hard work". (Boone & Kurtz p.12) Krispy Kreme uses these characteristics to choose the right persons to run their businesses, and in doing so, they promote a high quality team oriented atmosphere that adheres to the highest customer service.

Using technology and innovation, Krispy Kreme could expand into an e-commerce retail establishment. Although Krispy Kreme has an internet merchandise e-business, they have yet to introduce the ability to deliver their fresh doughnuts to the masses through the use of the internet. This company could accomplish this by creating a reusable shipping container that has the ability to self-warm its contents. This combined with a Global Position System (GPS) tracking could activate the warming process near the final destination. Customers could order Krispy Kreme doughnuts on-line and have them delivered hot and fresh anywhere in the world within 24 hours using current e-mail and shipping practices. This process would entitle Krispy Kreme to reach customers in extreme rural areas in the US and in the world who would have to drive 50 miles or more to get to a Krispy Kreme store. Customers in these extreme rural areas are not in a market for a potential franchise.

Krispy Kreme has a competitive advantage over other bakeries because the self-rising yeast doughnut has an excellent reputation representing freshness at its finest and because of the innovative doughnut making process. This process appeals to its customers through anticipation and the sensory response. The first indication is the large red "hot Krispy Kreme now" neon sign that's displayed while the doughnuts are being made.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

How to Cite this Page

MLA Citation:
"Krispy Kreme Case Study." 19 Jun 2018
Title Length Color Rating  
Essay Krispy Kreme Case Study - Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets. Krispy Kremes's strong brand name, highly differentiated products, high-volume production capability and multi-channel market penetration strategy has worked well....   [tags: Business Analysis Strategy] 1002 words
(2.9 pages)
Strong Essays [preview]
Essay Krispy Kreme Doughnuts Inc Case Study - Krispy Kreme Doughnuts Inc Case Study Summary In this SWOT analysis, I will delve into the strengths, weaknesses, opportunities, and threats that affect the Krispy Kreme Doughnuts Inc. Krispy Kreme is a highly successful company, whose main product, not surprisingly, is doughnuts. The company went public in 2000, and saw a hugely successful increase in share price immediately after. Vernon Rudolph founded the Krispy Kreme company in 1937 in Winston-Salem, NC. The company has since become a leading specialty retailer....   [tags: Business Strategy Management Analysis] 1128 words
(3.2 pages)
Good Essays [preview]
Essay on Krispy Kreme Doughnuts - Krispy Kreme Doughnuts Introduction Krispy Kreme Doughnuts was the dream of a great entrepreneur, Vernon Carver Rudloph. Although, Mr. Rudolph did not invent the doughnut, he definitely improved the process of making the doughnuts and the taste of the doughnuts, with his secret recipe for yeast-raised doughnuts. There are many values, within, this organization that are passed onto employees, and then to customers. The company's shared values include: integrity, authenticity, passion, learning, sharing, and positive expectations....   [tags: GCSE Business Case Study, solution] 496 words
(1.4 pages)
Good Essays [preview]
Krispy Kreme Case Analysis Essays - Krispy Kreme Case Analysis INDUSTRY ANALYSIS In 2003, the U.S. doughnut industry was a $5 - $6 billion market. American households consumed an estimated 10 -12 billion doughnuts annually; this translates into over three dozen doughnuts per capita. In 2002, doughnut industry sales rose by about 13%. Sales from doughnut outlets rose by about 9%, to approximately $3.6 billion, whereas packaged doughnut sales at supermarkets, convenience stores and other retail outlets staggered in the past five years....   [tags: Business Analysis] 1932 words
(5.5 pages)
Powerful Essays [preview]
Krispy Kreme Case Analysis Essays - TO: FROM: DATE: November 12, 2006 SUBJECT: "Krispy Kreme Doughnuts Going Global?" This memo contains the answers to Questions 1 through 4 from the International Marketing assignment titled, "Krispy Kreme Doughnuts Going Global?" The questions are offset in the shaded area and the answers are provided below each question. (1) Where should Krispy Kreme go next. List the next ten countries they should enter in order of most viable. Describe the criteria you used to develop your list. I identified, evaluated and ranked the countries in which I think Krispy Kreme should enter next....   [tags: Business Writing] 2241 words
(6.4 pages)
Strong Essays [preview]
Krispy Kreme Business Analysis Essays - Krispy Kreme Business Analysis To enter in other countries is affected by a lot of factors. To make the decision of enter in new countries, we consider, first, it should be in countries that are closeness to other countries which already Krispy Kreme is, and has be successful. For example, Krispy Kreme today is present in countries that are named in the case, and has be successful, as Mexico, Britain, Australia and Japan, so is very logical to think that open new stores in closeness countries, with similar culture, would be successful to....   [tags: Business Analysis Finance Strategic] 1141 words
(3.3 pages)
Strong Essays [preview]
Krispy Kreme's Financial Health Essay examples - Krispy Kreme’s Financial Health Looking at the financial reports of a company for the first time can be overwhelming if not intimidating. Analyzing the financial reports to determine the health of a company is much that same but different aspect must be looked at properly in order to predict and assess the health and wellness of a company. The different aspect in assessing the health of a company include the depreciation analysis, stock analysis, cash flow statement analysis, income statement trend analysis, management analysis, significant changes and possible reasons for the changes and implications of change....   [tags: Business Finance] 1312 words
(3.7 pages)
Good Essays [preview]
Essay on Krispy Kreme - Case Discussion Reflection 1 KKD seeks to appeal to everyone in their mission to slowly take on the fresh pastry market. Krispy Kreme is not one to limit a target of the public. According to Holland (2003), the company is equally loved by 5-year-olds and 75-year-olds alike. They are also enjoyed by whites, blacks, Asians, and Hispanics. New Englanders and Southerners love them as well as Californians and New Yorkers. Race is definitely not an issue. Only three types of people claim that they do not like Krispy Kreme: nutritionists, Dunkin’ Donuts franchisees, and compulsive liars....   [tags: essays research papers fc]
:: 5 Works Cited
1689 words
(4.8 pages)
Strong Essays [preview]
Essay on Krispy Kreme - Focus of the Proposal Krispy Kreme, a leading, well-established brand of high quality doughnuts, is still in a stage of astonishing growth potential. According to Dain Rauscher Wessels equity analyst David Geraty, “Krispy Kreme has established itself as the quality leader in the doughnut industry and is positioned to become the dominant industry player, with 145 retail locations in 27 states, Krispy Kreme is expected to capitalize on the brand conscious consumer’s demand for a consistent, high quality specialty food product” (Minneapolis 2000)....   [tags: essays research papers] 1620 words
(4.6 pages)
Strong Essays [preview]
Essay on Krispy Kreme - Written Assignment Krispy Kreme Doughnuts, Inc I. Brief History Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950¡¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour....   [tags: essays research papers] 1985 words
(5.7 pages)
Powerful Essays [preview]

When the customer enters the Krispy Kreme doughnut shop, the aroma of the fresh doughnut hits their nose, and the anticipation from watching the fresh doughnuts roll off the line four feet away overtakes them. When the customer gets to the cashier, their mouth is watering and they always order too many. This highly refined presentation through the senses has made Krispy Kreme a cult favorite. (New York Times January 18, 2005) It's been said that "It's not how you prepare your food but how you prepare your guest." (Source Unknown) And Krispy Kreme has prepared both with its doughnut making process.

With the implementation of MyKrispyKreme extranet, the company has attempted to create a decision support system within the company as a whole. However, the use of this system is voluntary and does not lend itself to just decision support. The system takes on several roles while providing a connection among franchisees, vendors, and managers at corporate headquarters. Its benefits include continued management training; e-mail capability within the company as well as the ability to create daily sales reports from the point of sale system. This information is accessible throughout the company with the right access code. Company managers have the ability to use this daily information to make informed decisions about the direction and growth of the company. The effective use of this extranet will give franchising and company managers the competence to run their business while providing them the freedom to make good business decisions. Using the extranet will allow them to grow their business to new heights.

Some of Krispy Kreme's tangible assets include the stores, innovative doughnut making equipment, the products which are the doughnuts and beverages, and the employees and managers. The most valuable and important tangible assets are the employees and managers. This workforce creates the driving force and the life blood of the company. They are the front line to customer service and are chosen because of their motivation and willingness to be part of a team. Choosing motivated, goal oriented employees and managers will insure Krispy Kreme's success in the future.

Some of the more important intangible assets incorporated by Krispy Kreme are the company's reputation of serving high quality doughnuts and beverages; their current marketing practices through word of mouth advertising; the company's goal to become the local hometown doughnut shop (Boone & Kurtz p.151); and their strict franchise selection process. Of these intangible assets, the Krispy Kreme reputation of delivering high quality doughnuts and beverages is the most important asset because their reputation begins the process to make Krispy Kreme stand out from other doughnut shops. Without the highest of reputations in the commercial bakery business and without Krispy Kreme's high quality process, Krispy Kreme would become just another doughnut shop.

Even with the dwindling stock prices and the current hardships that the company faces, I believe that the company is still growing in consumer awareness and has taken the first steps to restructuring for the long term. Krispy Kreme has defiantly blackened the eyes of some top annalists but most agree that this downward trend is temporary. Some are predicting that Krispy Kreme, while restructuring, may even file for bankruptcy protection and may need to close a few stores. (The Capital Times February 10, 2005) The short term Krispy Kreme financial picture may look bleak, but in the long term, Krispy Kreme is a company that has overcome adversity in the past and will do so again in the future. I believe that in the near future Krispy Kreme, an American icon, will continue to slowly expand its business internationally and domestically. This growth combined with the current management restructuring will allow Krispy Kreme to produce its "evil lard-pods of joy" (The Capital Times February 10, 2005) for future generations

Works Cited

Boone, Louis E and David L. Kurtz. Contemporary Business, Ed., 11,
Mason: South-Western, 2005

Breed, Allen G. "Sweet Dreams." The Capital Times. 10 Feb 2005.Web Ed. Business Sec.

Norris, Floyd. "Krispy Kreme Picks Turnaround Specialist."
The New York Times 18 Jan. 2005: Business Sec.

January 30, 2005.

Return to