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Case study of Krispy Kreme Doughnuts, Inc. summary
Case study of Krispy Kreme Doughnuts, Inc. summary
Case study of Krispy Kreme Doughnuts, Inc. summary
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When I heard from my management professor Cory that we have to do an interview for our papers, I got very excited. However, my excitement got little pale after a while because I did not know who to interview. There is a Dunkin Donuts near my house. I go there almost every day at least once for my coffee. Their employees are always very nice to me. Therefore, I decided to interview their assistant manager whose name is Junayed. His role is to help employees and also managing the whole store. He helps his employees by making all the necessary things available to them that they can serve their customers properly. I am their regular customer. Therefore, he decided to cooperate with me. Furthermore, I also interviewed their shift supervisor Sadia …show more content…
Therefore, joining business together these two companies attracting more customers form the market than they could attract separately. Even though they target all the customers in the market, however, their main target market is the working class people. Customers are attracted to Dunkin Donuts because their products are relatively cheaper than their competitors and their fast customer service. Starbucks is the main competitor for Dunkin ' Donuts based on their product categories. They are both popular for coffee. That is the biggest similarity. Moreover, they also sell muffin, donut, cookie and all other bakery products. The main difference between these two competitors are the price. Products of Dunkin Donuts are cheaper because their target customer are middle class. If they charge their customers higher price than they will lose a lot of their customer. On the other hand, Starbucks target little affluent people of the market. Every company wants to be in the stage where competitors cannot do any harm to them. To reach that stage, Dunkin Donuts use low cost method with a standard quality of the product to win against their competitor. Junayed told me …show more content…
By providing cheaper products and fast customer service, Dunkin Donuts is attracting their target customers effectively. Managers select their employees very carefully and closely monitor their work whether they are following the right procedure or not and by doing so they maintain the right standard of their customer service. Therefore, business strategy and operation of Dunkin Donuts are very closely aligned. Finding the right stuff is the biggest challenge in the operation of business. If you don’t have right stuff, your whole system can collapse. Shift leader Sadia told me, working with inexperience people are very tough. It make you feel like you are working alone since you have to teach him/her how to do things and also help the customers at the same time. Furthermore, new person is going to make mistakes frequently which is going to delay the whole customer service process. Therefore, they always try to hire experienced
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
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.
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
How should McDonald’s respond when ads promoting healthy lifestyles featuring Ronald McDonald are equated with Joe Camel and cigarette ads? Should McDonald’s eliminate Ronald McDonald in its ads?
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
Foreign policy with foreign nations that host the Starbucks brand. Import and export tax is an expenditure that may and can become costly and profits can be lost. Other companies like McDonalds, Dunkin Donuts, and the Coffee Beanery provide consumers with an ambient environment and some specialty coffee flavors. Proximity may be the only thing required for the consumer to select the services of the rival coffee dispensing businesses.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
One of its biggest strengths is it is one of the top coffee companies in the world. Dunkin Donuts has built a strong brand for itself. The company has over 1000 selections of doughnuts, and its stores are a perfect place for having breakfast and coffee. They have worldwide franchisees, totaling to more than 10,000 locations across 32 countries (Marketing Coach). Dunkin’ Donuts uses the fixed price but yields more which lets it to sell at a lower price because fixed costs are spread over a larger number of components. Dunkin Donuts has standardizations for each location so where ever the customer goes they can expect the same thing. They have control over the supply chain which contributes to lower costs. This is achieved by bulk buying to quantity markdowns, talking suppliers down on price, establishing competitive bidding for agreements, and working with sellers to keep inventories low. Dunkin Donuts has a strong customer loyalty rate, which it cost less to keep customers than to gain new ones. Dunkin has good partnerships with JetBlue, Smuckers, and Keurig. Dunkin does a lot of charity work like feeding the hungry, supporting children’s health, and making sure that neighborhoods are safe and secure ("Brand Power"). Dunkin Donuts has recently launched a green campaign that will building green certified program designed to help franchisees build sustainable, energy-efficient
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Compare the globalization approaches of Starbucks & McDonalds The parameters to be used for this comparison are:
One could argue that this could be imitated by competitors but it also is very costly. Another strategy is their strategic alliances and acquisitions such as Teavana (Tea), Bay Breads, Evolution Fresh, and many more. Their acquisition strategy has known to be very horizontal. This gives Starbucks the ability to effectively leverage their cornerstone product differentiation strategies by offering a premium product mix of the highest quality beverages and snacks. Starbucks’ goal is to provide each and every customer with a unique “Starbucks Experience” excellent customer service, and well maintained stores which in turn translates to a high degree of customer loyalty. Its HRM value-based approach is for building strong internal and external relationships with suppliers which helps its deployment to international markets, horizontal integration, and organic expansion across the world. Starbucks is known for its high knowledge employees. Human capital is the main asset for most companies and they are provided with great benefits, stock options, retirement accounts, and competitive pay. Good human capital translates into great customer service. I talked to my friends about working at Starbucks and they both said it
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
Every restaurant is always responsible for filling up available positions. When it comes to recruiting employees McDonald’ uses several techniques and many of the positions they offer are advertised within McDonald’s restaurants. McDonald’s has one of the best recruitment histories in hiring quality staff that provides that outstanding service to consumers. Some of the methods used to recruit and be able to select is through ...
Burger King delivers value to their customers through their products, prices, and place and promotion strategies - (“BK doesn’t just promise value, they actually deliver value”). Burger king has been in existence for 60 years and is growing rapidly in many other countries. Burger King delivers quality, great tasting food which satisfies ones need or wants and captures the value of customers even before the first purchase is made. Burger King has products very unique from other competitors such as KFC and McDonalds. The difference is that Burger King does not limit their customers in terms of what they eat. For example, when I spoke to a customer also big fan of Burger King, he mentioned that the sauces are left public for the customer to decide on which sauce to have rather than giving the customer one kind of sauce such as McDonalds and KFC. The cold beverage is also self-help service in which customers can help themselves to a bottomless drink. This way the customer feels free to choose what satisfies the need or want.