Kkd Strategic Management

Table of Contents

Introduction ...........................................................................................2

Business Segments ...................................................................................3

Vision and Mission Statements .....................................................................4

Revised Vision and Mission Statements...........................................................4

Executive Summary .................................................................................6

Competitors ...........................................................................................7

Competitive Profile Matrix .........................................................................8

Swot Analysis/ Swot Matrix ........................................................................9

External Opportunities and Threats ..............................................................11

External Factor Evaluation Matrix................................................................12

Internal Factor Evaluation Matrix.................................................................13

Space Matrix ........................................................................................14

Quantitative Strategic Planning Matrix. ......................................................17

The Grand Strategy Matrix........................................................................19

Financial Ratios.....................................................................................20

Financial Statements................................................................................21

Recommended Specific Strategies................................................................25

Recommended Specific Annual Objectives and Policies......................................27

Recommended Procedures for Strategy Review and Evaluation.............................28

References...........................................................................................29

INTRODUCTION:

Vernon Rudolph founded Krispy Kreme Doughnut Inc. on the July 13th 1937. The first store was opened in Winston-Salem, North Carolina, and the company's base still exist there. As of January 31, 2010, there were 224 Krispy Kreme stores operated domestically in 37 U.S. states and 358 shops in other countries around the world, Of the 582 total stores, 268 were factory stores and 314 were satellites stores. (David 2011)

The Company comprises of three segments: Company Stores, Franchise and KK Supply Chain. Krispy Kreme makes and sells over 20 varieties of doughnuts, including the Original Glazed doughnut. The sales of doughnuts comprise approximately 88% of total retail sales, with the balance comprised principally of beverage sales (David 2011).

In fiscal 2009, Krispy Kreme began initial testing of a new soft serve menu of traditional cones, shakes and sundaes paired with a variety of toppings. In fiscal 2010, Krispy Kreme expanded the testing of the concept, called Kool Kreme soft serve, into all four new Company shops and into most existing shops in the markets in which the new shops are located. The company has also begun limited in-store testing of baked goods, including sweet rolls, pecan rolls, muffins and bagels. (http.//www.krispykreme.com/home).

Krispy Kreme's beverage program includes drip coffees, both coffee-based and noncoffee-based frozen drinks, juices, sodas, milks, water and packaged and fountain beverages. In addition, many of the company's stores offer a complete line of espresso-based coffees. Sales of beverages comprise approximately 11% of Krispy Kreme's total retail sales (http.//www.krispykreme.com/home).

BUSINESS SEGMANTS:

Krispy Kreme company is comprised by the doughnut shops that are operated by the Company. These stores sell doughnuts and beverage products through the on-premises and off-premises sales channels that come in two formats: factory stores and satellite stores. Factory stores have a doughnut-making production line, and many of them sell products through both on-premises and off-premises sales channels to more fully utilize production capacity. Satellite stores, which serve only on-premises customers, are smaller than most factory stores, and include the hot shop and fresh shop formats. As of January 31, 2010, there were 83 Company stores in 18 states, including 69 factory and 14 satellite stores. (David 2011)

The Domestic Franchise segment consists of the Company's domestic store franchise operations. Domestic franchise stores sell doughnuts and complementary products through the on-premise and off-premise sales channels in the same way and using the same store formats as in the Company Stores segment. As of January 31, 2010, there were 141 domestic franchise stores in 29 states, including 104 factory and 37 satellite stores. (David 2011)

The International Franchise segment consists of the Company's international store franchise operations. International franchise stores sell doughnuts and complementary products almost exclusively through the on-premises sales channel in the same way and using the same store formats as in the Company Stores segment, and also using a kiosk format. (David 2011)

THE VISION OF KRISPY KREME DOUGHNUTS:

To be the worldwide leader in sharing delicious tastes and creating joyful memories.

Our Values (with acknowledgement to our Founder Vernon Rudolph)

We believe...

Consumers are our lifeblood, the center of the doughnut

There is no substitute for quality in our service to consumers

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