Case Study Krispy Kreme

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Submitted By blaine
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A Case Study on Krispy Kreme Doughnuts, Inc
Company Overview
Krispy Kreme is a company that despite its history dating back to 1937, has only started to experience rapidly increasing sales, expansion, and customer awareness in the last few years. Recently, however, the company has gotten into financial and legal trouble and is struggling to survive. This case is an evaluation of Krispy Kreme’s past and present business performance, internally and with regard to the external environment it is operating within. The study will conclude with both insights and recommendations Krispy Kreme should implement based on these evaluations and our SWOT Analysis.

Mission & Vision
One of Krispy Kreme’s main weaknesses is that it lacks a clear mission and vision statement. The only stated objective was to have a successful Krispy Kreme in every town in the United States. As a result, Krispy Kreme has suffered financial difficulties. Krispy Kreme tried to expand too rapidly and is now paying for it financially. Krispy Kreme made a good decision to shift its focus back to retail business rather than selling solely to wholesalers.

Company Structure
Krispy Kreme was originally a partnership, but now is a corporation. As a corporation, Krispy Kreme has limited liability, the ability to obtain finances for expansion, and a perpetual life. In addition, it has easily changeable ownership, attractiveness to potential employees, and the ability to obtain finances from outside sources other than management. An autocratic leadership style is used. Two-thirds of Krispy Kreme stores are franchises. The franchisees pay up to a $40,000 fee for each store they open and pay royalty fees.

Marketing
Although Krispy Kreme has no mission statement, its actions indicate its strategy is to differentiate themselves in the retail doughnut/coffee industry based on its experience in selling…...

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