MOS 4410 - krispy kreme.docx

4 Pages

Management and Organizational Studies
Course Code
Management and Organizational Studies 4410A/B
Raymond Leduc

This preview shows page 1. Sign up to view the full 4 pages of the document.
MOS 4410 – KRISPY KREME – CASE STUDY  Follow case guide analysis  MISSION – sell doughnuts and beverages at our own stores; sell the doughnut mix and equipment, sell franchises – have 3 different income statements for each part of the business – provide a “HOT DOUGHNUT” experience  VISION – no clear vision statement – make recommendation  Objectives – want to be in several cities (geographic expansion) o Broaden distribution – not only have their product available in stores but also other places o 20% annual revenue growth o Mid-single digit comparable store-sales growth o 25% annual growth in earnings per share o National expansion (grow the business) – 25 more stores in England, Ireland etc. o Grow revenues in 2 ways – open more stores or sell more in your existing stores o Increase beverage sales to 20% of store revenue o Remodel old stores and clear debt o Open different stores in smaller towns o Open 77 stores next year  THESE OBJECTIVES ARE SMART  Good exam case  a lot of information given  DOUGHNUT INDUSTRY – five forces  Substitutes – lots of substitutes – bagels, muffins, baked goods  Degree of rivalry – competition versus rivalry – there is a lot of competition but the rivalry is moderate – and two companies hold a dominant % of the market share  Barriers to entry – low; costs a lot to get a franchise; not hard to get into this business – can be a big franchisee or a small local doughnut shop – but kind of high because quite a few companies (groceries) are getting into the market as well  Power or buyers  lots of places to buy doughnuts, low switching costs, lots of substitutes  Power of suppliers  Low – a lot of companies manuf the doughnuts on their own and there are a lot of suppliers and the raw materials are easy to find  Is this an attractive industry??  Moderately attractive – a lot of control over suppliers but not buyers and they can easily switch over to other substitutes – how hard is it to make money? – the stronger you are in this industry, the more $ you can grab  Sociocultural – trend towards becoming healthier which does not fit with the doughnut company  Some concern in the industry that some players will have a tough time – only have one product (small product portfolio) will not last long  However, this is a convenient product – easy to eat, people like to treat themselves  ONLY doughnut shops are feeling constraints because people can go to grocery stores or bakeries and find doughnuts anyways so they do not need to make a special stop to the doughnut store  Better to sell coffee with doughnuts because coffee sales are usually higher – and they go hand in hand – people want to come and get both things at one time  Companies specializing in doughnuts are not growing as fast  If you want to succeed in this business you need more breadth – MORE Than just doughnuts – can’t just have one item – long term opportunities are limited  Market growth rate is 15% which is GOOD!  Brand loyalty – up to 80% are regulars  Is this an attractive future? 
More Less
Unlock Document

Only page 1 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.