Management and Organizational Studies 4410A/B Study Guide - Final Guide: Lemar, Swot Analysis, Brand Loyalty

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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
Good exam case a lot of information given
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
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
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