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

476 views4 pages
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
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

Grade+All Inclusive
$10 USD/m
You will be charged $120 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.