Case Study

Group Members

Zeeshan Rafique Sayed Hassaan Mehmood Sajid Hamayon Waseem Akhtar Umer Irfan

994 1014 1031 1049 1050

Introduction and History

Ishmael Armstrong bought a doughnut shop from a New Orleans chef named Joe Lebeau Ishmael Armstrong passed the recipe down to his nephew Krispy Kreme at first sold its doughnuts only to grocery stores, and began selling directly to customers.

Cont..
New Owners changed the recipe to cut costs but then had to restore it for place of honor. With more than three hundred stores in the United States and Canada, Krispy Kreme is now an American icon. Its name is still a mystery because it doesnt sell crispy and cremy doughnuts.

Environmental Analysis
Brand recognition Supply chain Wide demand Vertical integration Quality of product Machine technology Limited product line

Environmental Analysis
Popularity of coffee shops Popularity of American foods in foreign markets Entertaining opportunities Technological advancements Channel expansion possibilities Competitors All-natural, organic, healthy eating trends

S.W.O.T Analysis
Affordable, high-quality doughnuts with strong visual appeal and kind taste "Hot Doughnuts Now" encourages people outside the store to purchase Market research shows demand increases to all group of people of different age and income Vertical integration helps to ensure high quality product expanded in 16 countries Product sold at thousands of supermarkets, convenience stores, and retail outlets through U.S

S.W.O.T Analysis
Advertising and promotion is not much attractive to attract people out side US Shareholders have not received dividends and dont expect in near future due to share price Closing stores are giving chance to competitors to open new stores Return on equity, investment and assets are all in negative through out 12 months due to lack of skilled management Revenues decreasing, and continuous net losses in past three years continued disputes with franchisees hurt future business

S.W.O.T Analysis
Asians love sweets and are open to trying foreign foods Dunkin' Donuts does not have hot doughnuts to sell Many children love sweet treats South America, Africa, and Southern Asia are markets to target Tim Horton has yet to expand beyond the U.S. and Canada, and its product line does not appear to be competitive Families crave convenience because of busy lifestyles

S.W.O.T Analysis
Starbucks has much greater in amount, stores worldwide than Krispy Kreme Donut People are much health conscious , and much care about high sugar and high fat European mostly prefer their local brands Dunkin' Donuts presently dominates the doughnut market, particularly in north-eastern U.S Shareholders can sell their share due to lack of return or dividend compared to their competitors Britons tend not to have cars, which discourage the drivethru and their eating habits are different from Americans

S.W.O.T Analysis
KKD has to introduce or expand their product in Asian countries because of their love to sweets and willingness to purchase foreign product (S1, O1) Super markets and stores in US have pictures of children eating KKD to attract the children (S6, O3) KKD have to expand their business in highly populated countries like south America, South Asia, Africa .(S5,O4)

S.W.O.T Analysis
KKD have to introduce new pastries and juices with low sugar and fat to take care of people conscious about health and look for low fat.(S1,T2) Take part in weekly market in European countries to introduce their product in European people of all age.(S3,T3) Compare HOT DOUGNUTS with COLD DOUGHNUTS of DUNKIN DONUTs.(S2,T4)

S.W.O.T Analysis
Give dividend to share holders on time otherwise they can sell their shares and buy competitors shares (W2,T5) Expand product line with low-calorie foods Recruit top executive talent from other fast-food firms (W4, T5) Survey franchisees to discover ways to repair business relationships and retain growth of franchise model (W6, T1, T3)

S.W.O.T Analysis
Advertise and promotes hot doughnuts on the internet to demonstrate people. (W1,O2) Open small but profitable HOT SHOPS in South America, Asia to expand and compete globally.(W3,O4) Keep the relation good with franchisees to keep the US Canada market retain. (W6,O5)