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Krispy Kreme Doughnut Essay

1906 words - 8 pages

Krispy Kreme
Case Study: Adapting to the Changing Needs of Consumers
By: Andrea Slonecker, Jessica Curtin, Mike Hurlbut, & Keith Anderson

Table of Contents
Executive Summary............................................................................................................................ 1 Introduction ...................................................................................................................................... 2 Company History ....................................................................................................................................... 2 Current Situation ...view middle of the document...

........................................ 23 Competition ............................................................................................................................................ 23 Costs ........................................................................................................................................................ 23 Expansion ................................................................................................................................................ 25 Economic Risk ......................................................................................................................................... 26 Changing Consumer Preferences ............................................................................................................ 27 Key Problem .................................................................................................................................... 27 Recommendations ........................................................................................................................... 28 Implementation Plan............................................................................................................................... 30 Appendix ......................................................................................................................................... 32

Executive Summary
Krispy Kreme is a doughnut manufacturer and retailer that was founded over 70 years ago and has since expanded into a global firm. After several structural changes, the company began to expand rapidly in the mid 1990’s  and  early  2000’s. A few years later after realizing they over expanded and several questionable accounting practices came to light, the company’s  stock   prices plummeted. New management has slowly been trying to rebuild their reputation and decrease costs which are severely hurting the company. Competition is increasingly becoming an issue based on the changing needs of consumers who are looking for healthier products, convenience of store locations, and low price. Krispy Kreme competes in both the quick-service restaurant sector and the U.S. bread production industry and as a result their competitors vary greatly. The top three competitors they currently face  are  Dunkin’  Donuts,  Starbucks  Coffee  Inc.,  and  Hostess  who  each  have  their own strengths and weaknesses. While  internally  the  company’s  new  management  is  making  smart  decisions  by   building smaller factory stores in more locations, rather than traditional large stores in fewer areas which has allowed them to reach more customers and somewhat reduce costs, they are still facing a lot of store closures. Despite these financial improvements, the company is drawing in comparatively smaller revenues and still has higher costs than its competitors in the present market. Krispy Kreme needs to focus on cutting costs and expanding their customer base...

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