KKD Case Strategic Management

7/28/2019 KKD Case Strategic Management

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Strategic management 6/30/2013

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Strategic ManagementAssignment

(Group work)

Students Name: Michelle, Wiktor, Willow

Date: 2007-7-17

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KRISPY KREME DOUNHNUTS, INC.2004

CASE STUDY

Vision Statement:

Become Globally Recognized & Remembered Donuts

Mission Statements:

Customers:

All products will have a good taste and quality that are second to none.

Control product quality and freshness of the ingredients.

Employees: Have a passion that growth

and success as a company is a natural result of the growth and success of our

people.

Products/ Services:

Krispy Kreme sells coffee espresso, frozen blends plain or flavored milk, and

has 25 varieties of doughnuts, in additional it has special flavors such as the

Pumpkin Spice doughnuts offered during the fall months.

All products will have a taste and quality that are second to none. Control product quality and freshness of the ingredients.

Survival Growth Profit:

Be thoroughly prepared to execute growth initiatives when they become needed.

Public Image:

Instill the belief that the company is a set of capabilities, not just a product or

brand.

Philosophy:

All products will have a taste and quality that are second to none.

Control product quality and freshness of the ingredients.

Be thoroughly prepared to execute growth initiatives when they become

needed.

The keys to creating and maintaining a competitive advantage include

observing that quality, service, and innovation are second to none.

Instill the belief that the company is a set of capabilities, not just a product or

brand.

Have a passion that growth and success as a company is a natural result ofthe growth and success of our people.

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Experiential Exercise 1A

1. External Opportunities

Serve additional customer groups: During the past two decades, an ever-increasing percentage of U.S. food dollars has gone to eating out. With a

greater percentage of Americans working, there has been insufficient time

available for at-home food preparation. Krispy Kreme believes that this trend

along with growth in two-income households will increase snack-food

consumption and further growth of doughnut sales.

Enter new markets or segments: Krispy Kreme plans to soon open stores in

Japan, Mexico, South Korea, and Spain. The company has a great deal of

opportunities in these markets. Based in Atlanta, one out of three adult

Americans is overweight. Healthier & Low calories food becomes very

popular to the customers. Perhaps it should develop a new low calories

doughnut selection and would have many opportunities.

2. External Threats

Changing buyers needs and tastes: Healthier & Low calories food

becomes very popular to the customers. And compare to its No.1 competitor

Dunkin Donuts, one glazed doughnuts from Dunkin Donuts has 180

calories, while one Hot Original Glazed doughnut from Krispy Kreme has

200 calories.

Aggressively competitive environment: including significant price discountsby industry leaders McDonalds and Burger King.

Global issues: different culture, different eating habits and some other

things. For example, Brits are accustomed to their traditional English

breakfast, bacon, and milk; they dont like the biscuit, which is a cookie,

with a doughnut for their snack food. Some things like these are all the

threats to KKD.

3. Internal Strengths

Better manufacturing capability: Krispy Kreme produces 7.5 million

doughnuts a day. Each KKD store is a doughnut factory which has the

capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily.

Correct and good activity of business: KKD acquired Montana Mills Bread

Co Montana Mills Bread Co. is a good company. The stores cater to

upscale customers, offering baked goods, read-made sandwiches, specialty

coffees, and gift item. This company gets the high level customer market

share for the KKD.

Management information system: the information department has teamed up

with Network Appliance to provide network storage solutions for KKD. This

website allows store operators and franchise owners access to real-timecompany information, including inventory updates, equipment maintenance,

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and store directories, dramatically improving communications between

owners and the home office.

Employees training to help them reach their top potential. People are the most

important resource of the company; the employees have a high level

knowledge, so it is good for the company achieve the objectives efficiently.

4. Internal Weaknesses

Marketing share is smaller than its No.1 competitorDunkin Donuts.

The speed of R&D is to slow. The customers need has changed, but the new

product hasnt produced.

KKDs Website is not as user friendly as Dunkin Donuts. DD offers online

ordering of its coffee and gift baskets. KKD has no online ordering.

Experiential Exercise 1B

Step 1

The ethics related to the employees:

1) Establish firmly sense of provide quality service to the customers.

2) Loving the job, make efforts to do the work.

3) Dont use abusive language, politeness and warm to the customer

4) Dress in businesslike attire, the uniform should clean and tidy.

5) Solidarity, cooperation and mutual support, follow directives of supervisors,

concern comrades together.

6) hard work, dedication, self-discipline strictly7) perform assigned duties to the best of your ability

8) exhibit good attendance and punctuality

9) Report unethical and illegal activities to your manager.

10) Dont use company property for personal benefit.

11) Illegal drugs and alcohol at work are prohibited.

12) Exhibit standards of personal integrity and conduct,

The ethics related to the product:

13) the product should be clean, healthy, guarantee for the customers health

14) the price of the product should be fair, should give a correct value according to

the price

15) provide products and services of the highest quality

The ethics related to the company:

16) the business should comply with all laws

17) conserve resources and protect the environment

18) convey true claims in product advertisement

19) demonstrate courtesy, respect, honesty and fairness

20) Racial, ethnic, religious, and sexual harassment at work is prohibited.

21) Comply with accounting rules and controls.

22) Participate in community and political activities.

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Step 2

Some ethics are very common for all the company, such as the business should

comply with all laws, exhibit good attendance and punctuality, provide products

and services of the highest quality and so on. So we include these certain variable.

And some ethics are good for the company, having these ethics the company can growbetter, like Participate in community and political activities, Report unethical and

illegal activities to your manager and so on. So we also include these certain

variable. Some rules like firearms at work are prohibited is not happened usual, so

we did not include.

Step 3:

Having a code of ethics is not sufficient for ensuring ethical behavior in an

organization. Because ethics are just advice people to do, not must do. It is not the

law. It is not compelling. Some people who have high level quality can comply with

these ethics; to these people maybe having a code of ethics is enough. But there are

many people that cannot comply with these ethics. So there must have a law inhibited

to them. Maybe as the development as the society, people received high education,

they have a high lift quality, a code of ethics is sufficient.

Experiential Exercise 1C1. E, L

2. E,L

3. U,L

4. U,I5. E,L

6. U,L

7. E,L

8. E,L

9. U,L

10. U,L

11. U,L

12. U,L

13. U,L

14. U,L

15. E,L

16. U,L

17. E,L

18. U,L

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KKD Case Strategic Management