Apple Computer and Krispy Kreme - Essay Example

He terminated some products, such as Newton and OpenDoc. Under his guidance, Apple Computer increased its profitability, although his official salary was $1 per year. The company is increasing its activity by new markets entering, such as music distribution and consumer electronics, and Steve Job's activity as Apple's CEO is highly estimated by shareholders and consumers. So, if I had a large amount of money I would invest in Apple Computer as this company has great technological and scientific potential which can be well realized in the future.

Krispy Kreme is one of the biggest doughnut store chains in the world. It was originated in 1933 by Vernon Carver Rudolph, and now the company has about 360 U.S. stores (Krispy Kreme Press Kit). In the 1990s Krispy Kreme began its international expansion by opening stores in Canada, Mexico, England, and South Korea. In 2000 the corporation went public and switched to the New York Stock Exchange. But in spite of business success, Krispy Kreme has some controversies that resulted from the necessity of constant growth: as Steven P.

Clark, an assistant professor of finance noted, "there was enormous pressure, as there is for all companies, to grow very quickly and sustain growth quarter after quarter after quarter, this was not the sort of business that was going to have that kind of unending growth (O'Sullivan, 2005)". The main strength of the company is the high quality of its production and fast tempos of its development, but some critics underline its franchising policy controversies: "Krispy Kreme requires franchisees to buy equipment and ingredients from headquarters at marked-up prices.

This strategy, while not unheard of, can hurt franchisees in the long run (O'Sullivan, 2005)". The revenue of some outbound stores decreased, and they closed. The whole amount of stores is increasing, but the revenue goes down. But in spite of that, the franchise potential of Krispy Kreme is rather high, and the company's ability of market expanse is strong: as attorney Metzger said, "Krispy Kreme as a company still has a lot of value in its name and in its product (O'Sullivan, 2005)". Its franchise policy should be critically analyzed and evaluated - it must be done to strengthen the position of the company on the market.