Krispy Kreme Doughnuts Corporate Profile Research

Krispy Kreme Doughnuts Corporate Profile
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Corporate profile
Krispy Kreme Doughnuts is a retailer and wholesaler dealing in doughnuts as well as packaged sweets. Krispy mainly operates in North America, but has subsidiaries in other countries with headquarters in SUITE 500, 370 Knollwood Street Winston-Salem North Carolina (Market Line, 2015). There are franchise stores offering doughnuts, and various beverages especially coffee. The domestic franchises are licensed to sell Kripsy’s products domestically including doughnuts and complementary products. The restaurant chain stores operate the doughnut shops selling products on premises and through the wholesale channels. The international franchise operations sell products through on-premises and the kiosk format (Reuters, 2015).
History
Krispy was founded and incorporated in 1937 by Vemon Rudolph, with the restaurant chain expanding over time and mainly focusing operations in North Carolina. In 1976, Beatrice Foods Company bought Krispy (Canadean, 2014). The company expanded by incorporating new store designs new designs and opening the first store in New York in 1996. This was then followed by expansion to California in 1999 and listing in 2000 (Canadean, 2014). In 2001, Krispy opened its international store in Canada and acquired Digital Java based in Chicago. In 2003 the company acquired Montana Mills Bread Co and expanded to other countries in Australia the UK and Mexico. In 2004 there was another acquisition of Golden Gate Doughnuts. Nonetheless, in 2006 there were challenges as the company terminated licenses for Great Circle Family Foods, a California franchise that faced financial troubles. (Canadean, 2014) The company also agreed to terminate the franchise of Lone Star Doughnuts based in Houston (Canadean, 2014).
Analysis of leadership structure
The leadership structure at Kristy’s has a management executive team being responsible for strategy formulation. The current CEO James H. Morgan has been crucial to the company’s turnaround, and expansion to new areas of operations there is a Committee responsible for ensuring there is smooth transition for the CEO’s and succession of the key members of the board. The senior management are in the areas of human resource, finance, franchises and Company store, Supply chain, marketing while there are is also a general counsel secretary (Canadean, 2014, 2014). The committee and the CEO also work collaboratively to promote employees who have the personality and skills to develop into leaders in various capacities.
Analysis of vision and mission statements
The company’s vision focuses on restaurant’s ability as a global leader in doughnuts and complementary products globally. The mission statement highlights commitment to creating taste that that leave joyous memories and good times for customers (Krispy Kreme, 2015). The vision and mission of the company are linked by the objective of being competitive in the doughnut market by focusing on meeting customer expectations and providing superior services. The company is committed to customers and employees, who are important stakeholders for the growth of the company. High quality service, innovation and caring service are aspects that are integrated into business operation and workplace culture to achieve the set objectives and remain competitive.
The legal and organizational structure
Across various locations Krispy employees managers to in different positions to perform specific functions associated with the company’s divisions. The executives are then ranked where the multilevel organizational structure form the top management, middle management as well as rank and file. The head of departments report to the CEO, who is an executive member of the board unlike the other board members. The executives are the CFO & Treasurer, HR & Organizational Development, International, Legal & Secretary, Supply Chain Operations, and US Franchises & Company (Market Line, 2015).
Analysis of IFE, EFE, & CPM matrices
IFE
Key internal factorsWeight Ratingweighted scoreStrengths Robust business operations0.2530.75Global presence0.2541Vertical integration0.1830.54High quality doughnuts0.1530.45WeaknessesOverdependence on franchisees0.120.2Disputes with franchisees0.0720.14Total13.08EFE
Key External factorsWeight RatingWeighted scoreOpportunitiesEmerging Markets growth0.230.6Strategic Growth Initiatives0.220.4Convenience for families0.1520.3ThreatsStringent regulations0.220.4Competition from Dunkin Doughnuts,0.2510.25StarbucksTotal11.35
CPM
Dunkin DonutsStarbucksCritical successWeightRating ScoreRating ScoreFactorProduct quality0.1430.4230.42Product diversity0.0920.1820.18Advertising0.130.330.3Management0.130.330.3Market share0.130.330.3Pricing competitiveness0.130.320.2Sales distribution0.0620.1230.18Global expansion0.1230.3640.48Customer loyalty 0.1140.4430.33Financial position0.0830.2420.16Total1292.96282.85
Krispy Kreme competitive advantage
Krispy is performing well off-side, and retailers with the company’s brand name and image being a competitive advantage, since Krispy is well known. Additionally, since the company’s products are popular in different demographic groups, Krispy can compete with Dunkin Donuts and Tim Hortons. Financial analysis would also show the competitiveness of the restaurant chain highlighting the ability to expand internationally without facing financial constraints. Other than financial issues, Krispy has implemented successful strategies in the international market by taking into account the local culture while also promoting the brand value since there are positive expectations about Krispy Kreme this will give the company a competitive edge.
Opportunities and threats
External analysis focuses on the opportunities and threats that affect the restaurant industry. There is potential for growth in the emerging markets, as standards of living improve in these countries. Another opportunity is to take advantage of strategic growth initiatives to expand operations especially at the global stage with the company opening new franchises in different countries (Market Line, 2015). Kristy Kreme franchises and stores are convenient for families and the company can market services to attract more people especially those who are busy. Stringent regulations are a threat to the company’s expansion from the required regulations by the federal agencies like the Department of Agriculture, Food and Drug and Administration as well as the Environmental Protection Agency. The threat of competitors like Starbucks and Dunkin doughnuts in the U.S cannot be overlooked as they also seek to gain a larger market share. Consumers are also more health conscious and this threats some of the high sugar treats available.
Internal strengths and weaknesses
Internal analysis focuses on the strengths and weakness affecting the company’s performance and is necessary to strategize on improving performance. Krispy has robust business operations to serve the diverse customer base (Market Line, 2015). Krispy operates under the Company Stirs, KK Supply Chain and Franchise names, and the franchise stores are the most visible there are various products besides doughnuts including coffee. Krispy also has global presence and diversification has helped reduce risk and overdependence on the American market. Vertical integration has been vital to growth as has been high quality doughnuts. One of the challenges facing the company is that it is dependent on franchisees for revenue growth, and if disputes arises this could impact negatively on the company’s performance. If there are quality concerns among independent franchises this could damage the company’s brand image.
Globalization/internationalization
Krispy Kreme followed an internalization approa...