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Submitted by znaylon on April 21, 2008
Category: Business
Words: 1542 | Pages: 7
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To: Stephan Cooper, CEO of Krispy Kreme Doughnuts
From: Naylon Consulting Inc.
Date: April 8, 2008
Overview
Naylon Consulting Inc. has been hired by Mr. Stephan Cooper to conduct an extensive overview of the company an assist in probing the business model and strategy of Krispy Kreme Doughnuts. In this assessment, we have conducted a SWOT analysis, views pros and cons of the current strategic plan, conducted a brief overview of the financial reports, and identified some issues that could led to the possible turnaround of Krispy Kreme Doughnuts.
Strategic Overview
The strategic plan of Krispy Kreme Doughnuts is to produce hot, fresh doughnuts that a customer can receive right off of the assembly line. They create business through sales at company-owned stores, royalties from franchised stores along with franchise fees, and selling franchised stores pre-made doughnut mixes and doughnut making equipment. They created sales volume from both on-premise sales at Krispy Kreme stores and off-premise sales at supermarkets and convenience stores. Krispy Kreme attempts to win their market share through superior doughnut quality and vertically integrating back into their company to generate sales in coffee and other beverages.
Pros to Strategic Plan
The first major advantage of Krispy Kreme’s strategic plan is that they changed store operations to showcase their superior product and allow flexibility of new store sizes. Every Krispy Kreme store is designed as a “doughnut theater” which allowed customers to see the entire doughnut process take place. After doughnuts were produced, stores turned on neon signs saying “HOT DOUGHNUTS NOW.” The major strength of Krispy Kreme is their product, and people come here because this is the only place that you can receive a fresh hot doughnut. Krispy Kreme has also started to alter store sizes...
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