Krispy Kreme

1985 Words4 Pages
bulb-icon

Recommended: Krispy and kreme case study

Written Assignment
Krispy Kreme Doughnuts, Inc

I. Brief History

Vernon Rudolph is the brains behind the Krispy Kreme name. He bought a doughnut shop in 1933 and all the assets came along with the purchase, including a secret recipe and name, Krispy Kreme. Rudolph moved to Winston-Salem, North Carolina, where he opened his first Krispy Kreme shop. The business prospered and in the 1950¡¦s over ten other locations were opened. The business was able to produce 500 dozen doughnuts an hour. ¡§Revenues grew from less than a million in 1954 to $58 millions in 1974.¡¨(C-280) The company was bought out in 1976 by Beatrice Foods. This hurt the name and image of Krispy Kreme. Revenues began to fall and customers were not satisfied with the new owner¡¦s changes to the image of the doughnut giant. Then in 1982, new buyers decided to go back to the original image of Krispy Kreme and revenues again began to rise. Revenues gradually rose to $117 million in 1989 and then stayed the same over the next six years.

II. External Analysis
Economic Factors: studies were conducted to show that in the United States people consumed just about 10 billion doughnuts. Krispy Kreme is in a low cost industry, therefore a rise or fall in the market will not affect their revenues as significantly as higher priced luxury goods.
Technological Factors: Krispy Kreme has a doughnut theater where the doughnut making process is showcased. This gives customers a unique experience where they are able to watch the doughnuts being made. Krispy Kreme has recently introduced ¡§MyKrispyKreme¡¨ which is an internet based portal that connects management franchisees and Krispy Kreme vendors to each other.
Societal Values and Lifestyles: As of 2001, the diet and eating healthy craze did not have that much of an impact on sales as many thought it would. People still buy doughnuts as a way of giving themselves a treat.
Population and demographics: Krispy Kreme¡¦s corporate headquarters are located in Winston-Salem, North Carolina. They have 401 stores in operation. It is traded under KKD in the NYSE. They currently employ 3,913 employees.
Key Success Factors
Krispy Kreme is as efficient as they are in the business because they go by the motto that ¡§the key to expansion is to have control over each step of the doughnut-making process and be able...

... middle of paper ...

... Horton¡¦s is the doughnut giant in Canada. They are known for their other baked goods as well as doughnuts. ¡§MyKrispyKreme¡¨ allows the company to monitor inventory and investors can log on to obtain information about the company and news about the industry.
One thing Krispy Kreme needs to work on is diversifying their product. Competitors, such as Dunkin¡¦ Donuts¡¦, offer bagels, low-fat products, premium coffees, and newly cinnamon sticks. They offer these products to go with the changing times of the market. They remain to be the top competitor in the market because they are constantly changing their product line to suit their customers.
V. Recent News
Krispy Kreme will close outlets it has in Wal-Mart stores. The move was discussed on March 23, 2005. the reports say that the move is not due to KK financials. Sources say that Dunkin¡¦ Donuts¡¦ will be opening up in various Wal-Mart outlets throughout the United States in the future. There is also news that Krispy Kreme owes millions of dollars for their credit line. They were given an extension of time to pay off their debt before the company goes into bankruptcy.

Show More
Related

  • The Keebler Company

    863 Words  | 2 Pages

    Keebler/Sunshine merger brought together two of the oldest and most respected names in the U.S. biscuit industry.

    Read More

  • Operations Management of the Kroger Company

    2178 Words  | 5 Pages

    Operations management is essential for the survival and success of any organization. According to Heizer & Render (2011), operations management (OM) is the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations managers today contend with competition, globalization, inflation, consumer demand, and consistent change in technology. Managers must focus on the efficiency and effectiveness of processes such as cost, dependability, distribution, flexibility, and speed. The intent of this paper is to discuss the processes and operations management of the Kroger Company.

    Read More

  • Business Case Study: Sears Vs. Sears Watch Company

    935 Words  | 2 Pages

    Sears, a company spanning 131 years that began as R.W Sears Watch Company was once the largest retailer in the United States. Kmart, its runner up, began as a general retailing store just thirteen years after Sears as S.S Kresge Company in 1899. Sears had been the largest retailer in the United States until Wal-Mart rose and surpassed them, and Kmart bought out Sears and merged the two struggling companies in 2005 (Meyer, 2017; New York Times, 2002). From there, Sears and Kmart have been steadily making their way towards what many believe will be an inevitable closing.

    Read More

  • Inequality in America

    562 Words  | 2 Pages

    There are many people that think there is economic and wealth equality in the United States , but with all the statistics I provided it can be clearly seen that inequality in America is a serious issue , and it's getting worse with every year. I do believe that there should be some income inequality because that drives people to succeed , but I also believe that too much inequality limits a lot of people from achieving financial success.

    Read More

  • Kmart Case Study

    1083 Words  | 3 Pages

    As revealed by the SWOT analysis earlier Kmart has potential to pull itself out of its current position of facing closure. In order to exploit opportunities and counter threats Kmart needs to build on these competencies to strengthen its position and counter internal weaknesses against the single largest industry threat - increased competition in a mature market.

    Read More

  • Krispy Kreme Case Study

    1002 Words  | 3 Pages

    Krispy Kreme is a product company and the most profitable part of the business is doughnut sales due to the high volume of loyal customers.

    Read More

  • Customer Relationship Management Strategy And Objectives Of Kroger

    1859 Words  | 4 Pages

    Kroger was also an inventor, of food products. What was born in his mother’s kitchen, of just a tangy German sauerkraut has grown into over 30 facilities that manufacture the Kroger brand. Just another example this company meeting its objective to serve and please its customer base. Kroger understood from the very beginning, the value of the customer base, which according to the text Managing Customer Relationships is simply put, is to get, keep, and grow customers and is the very objective of the Kroger brand. Mr. Kroger was a natural born leader and servant and built this concept into the very framework of the company. Every step he took, focused on this premise, and soon he built a successful model that many other merchants fervently attempted to duplicate. The modern supermarket owes it roots to this early adventure in

    Read More

  • Negative Essay On Inequality In America

    878 Words  | 2 Pages

    Is Inequality in America really as bad as we perceive it? In America, we have many people discussing back and forth on the issue of inequality. Some people claim that inequality is a rapidly growing phenomenon, separating the rich from the poor. Though, other Americans claim that we’re progressing and departing away from inequality.  However, the way in which  we choose to perceive inequality is our choice, but we cannot ignore the fact that it exist. Inequality is an issue that has been constantly debated in the past, and will continue to be debated, so long as we do not put an end to it. Inequality is changing our country. The people who enjoy higher social statuses are spending their money with no limitations, whereas the people in the lower

    Read More

  • Kinko's

    1089 Words  | 3 Pages

    Kinko’s has been losing revenues and market share over their competition for the past years; reason why its directors have been doing market research to understand the causes of their business slowdown. It’s fast growing market had substantially developed an ongoing business model, facing changes, rapid expansions & even mergers. Their model of service solutions was not fitting their customer’s needs any longer…now it is needed to increase revenues and fast.

    Read More

  • Analysis of Dunkin Brands

    1134 Words  | 3 Pages

    The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).

    Read More

  • Krispy Kreme Obsession

    1068 Words  | 3 Pages

    Since I was about four years old I had an obsession with fast food: Krispy Kreme. My obsession takes me way back I can even remember everything growing up. According to my grandmother, whenever we drove by a Krispy Kreme when I was about four, I would say the word "doughnut" seeing the big red circle sign the words saying hot Krispy Kreme doughnuts now. And that is where it all started for me and my favorite type of sweet junk food. Krispy Kreme, in particular, had an influence on me growing up. I’m however, very passionate about American doughnuts. Most kids I grew up with were passionate about cheese balls, pizza, popcorn, and ice cream; I never seemed quite interested in those type of goodies. There has always been something that were completely irresistible to me about a little sweet glazed or fill doughnut and some hot chocolate .I am not sure if it is the way the chocolate iced glazed with sprinkles doughnut that caught my eye and attention or the way the original glazed doughnut smelted in my little mouth. I had gotten hooked from what seems like birth.

    Read More

  • Krispy Kreme Essay

    1689 Words  | 4 Pages

    Stan Parker, senior VP-marketing, says “no one looks at Krispy Kreme as a replacement for lunch or dinner. It’s a complement” (MacArthur, 2003). Krispy Kreme wishes not to be a fast food business or another doughnut store.

    Read More

  • Essay On Income Inequality

    1524 Words  | 4 Pages

    Income inequality continues to increase in today’s world, especially in the United States. Income inequality means the unequal distribution between individuals’ assets, wealth, or income. In the Twilight of the Elites, Christopher Hayes, a liberal journalist, states the inequality gap between the rich and the poor are increasing widening, and there need to have things done - tax the rich, provide better education - in order to shortening the inequality gap. America is a meritocratic country, which means that everybody has equal opportunity to be successful regardless of their class privileges or wealth. However, equality of opportunity does not equal equality of outcomes. People are having more opportunities to find a better job, but their incomes are a lot less compared to the top ten percent rich people. In this way, the poor people will never climb up the ladder to high status and become millionaires. Therefore, the government needs to increase all the tax rates on rich people in order to reduce income inequality.

    Read More

  • Horror Films: The Key Aspects Of A Horror Film

    1680 Words  | 4 Pages

    Horror films got their start in 1896 with the two-minute short, Le manoir du diable (The Haunted Castle), shown on Christmas Eve, in Paris. But it was not until 1906, with the remake of Notre-Dame de Paris, Esmeralda, did the genre spilt into subgenres. Esmeralda refined the ‘freak shows’ that previous horror films had begun to resemble. Films like these paved the way for people like Brian De Palma, Alfred Hitchcock, Stephen King, John Carpenter, Steven Spielberg, and his composer, John Williams. There are several key pieces of a horror film, including suspense, mystery, and spoilers, and numerous stereotypes and clichés that have latched on to the growing genre.

    Read More

  • The Four Types of Stress

    1011 Words  | 3 Pages

    Stress is not something to be avoided. Everyone feels stressed from time to time and it depends on people that may feel stress in different ways. Not all stress is bad but it depends on how peoples take it. The words “stress” is something all of us have experienced but it seems that there are many different definitions used by psychologist, medics, management consultants or others. Psychologists describe stress as “demands of life” which pointed out as “stressors” and stress is the cause of the worn out tissue of our body (Meenakshisundaram, 2012, p.101). Stress can be divided into four types which are eustress, acute stress, episodic acute stress and chronic stress (illustrated in Figure 1).

    Read More

More about Krispy Kreme

Open Document