Strategic Plan: Krispy Kreme - Essay Example

Download file to see previous pages Its strengths are 1) its vertical integrated value chain whereby its operations are carried out through franchising. 2) Has a high competitive strategy, based on a strong brand name and a loyal customer base that incorporates grassroots operations. 3) Diversification strategy in selling its products in both grocery stores and franchised outlets that escalates its market share. 4) Innovations, as well as experimental ideas, have kept customers interested in the company. 5) Its global outlook that could benefit the company; especially the fact that US markets are becoming increasingly competitive. These strengths can be primal for Krispy Kreme to achieve its objectives. Krispy Kreme has some weakness that could negatively affect their business. 1) Its limited menu offering and slow response to customers changing preferences. 2) Financial and legal constraints and hence struggling in the business. The long term objective of Krispy Kreme Company to appeal demographically large section of the society through its advertisement and expansion is visionalized to be a vital element in achieving its mission are recommendable. Strategic planning is on of the most vital tool to growth and development of any company. Competitive strategies are achieved when Functional departments of any company develop internal strategies for achieving the set objectives and mission of a company. Krispy Kreme has to achieve its objective to be a global leader in doughnuts in the shortest term possible. Krispy Kreme should set a specified objective and factor in other external influences to achieve its mission. Company Background. Krispy & Kreme Doughnuts is an American corporation, originally a partnership, which began its business operations in 1937 as a small regional company. It has a limited liability, the ability to obtain finances for expansion and perpetual life. It developed quite well in the first years, but its tremendous present was felt in the late 1990s whereby it started to experience expansion, customer awareness, and rapid increasing. The company operates in various segments that include; franchise stores, company stores and supply chains. The company stores primary source of income is the production and distribution of doughnuts both in wholesale and retail. Sale channels constitute of on-premise and off-premise sales. To realize the growth of the past KKD in the franchise department, it generates revenue through the collection of franchise royalties and fees from interested entrepreneurs within the whole US. Another profit area is the sales of equipment to the area developer stores which guarantees a constant quality of the products. Krispy Kreme has about 430 stores in the Us, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, South Korea and the U.K (Plunketts 10). On-premise sales comprise sales to customers visiting factories and satellite stores include drive through windows, along with a reduced price to community organizations. Off premise sales, consists of sales of doughnuts to a variety of retail customers, such as stores, mass merchants and other food stores. Doughnuts are sold to these customers on trays for displays and sale in glass-encloses cases and in packages for display and sale on both stand-alone display units and on customers shelves. (Plunkett 11). Mission ...Download file to see next pagesRead More