Strategic Management Case Analysis Summary and Outline

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Part 2: Summary and Outline (Topic 4) – DUE MONDAY 6/4/18 AT 5PM PST

Part 2 is designed to draft your executive summary with exhibits. Refer to Steps 1-12.

Step 1 Identify the firm’s existing vision, mission, objectives, and strategies. Attached

Step 2 Develop vision and mission statements for the organization. Attached

Step 3 Identify the organization’s external opportunities and threats.Attached

Step 4 Construct a Competitive Profile Matrix (CPM).Attached

Step 5 Construct an External Factor Evaluation (EFE) Matrix. Attached

Step 6 Identify the organization’s internal strengths and weaknesses. Attached

Step 7 Construct an Internal Factor Evaluation (IFE) Matrix. Attached

Step 8 Prepare a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix, Boston Consulting Group (BCG) Matrix, Internal-External (IE) Matrix, Grand Strategy Matrix, and Quantitative Strategic Planning Matrix (QSPM) as appropriate. Give advantages and disadvantages of alternative strategies. Attached

Step 9 Recommend specific strategies and long-term objectives. Show how much your recommendations will cost. Clearly itemize these costs for each projected year. Compare your recommendations to actual strategies planned by the company.

Step 10 Specify how your recommendations can be implemented and what results you can expect. Prepare forecasted ratios and projected financial statements. Present a timetable or agenda for action.

Step 11 Recommend specific annual objectives and policies.

Step 12 Recommend procedures for strategy review and evaluation.

Develop the best way to addresses the selected aspect of the strategic management process that the team chose to focus on in Part I. Identify and apply the tools needed to complete your analysis. Find outside resources and information to help authenticate your analysist. These tools will be featured as exhibits in your Executive Summary.

  • Include three to five sources.
  • Provide a 400-500 word summary and outline of your findings
    • See Attached - Use these to help formulate the 500 word summary and outline of findings.
    • A summary that describes the best way to address the selected aspect of the strategic management process is included. The summary purpose is clear and serves as the foundation for a plan to achieve the purpose. Relevant data is used to support findings and illustrates a deep understanding of the subject.
    • Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative.

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CLC: STRATEGIC MANAGEMENT CASE ANALYSIS PART 1: ACTION PLAN AND CALENDAR OF EVENTS 1 Krispy Kreme Case Analysis NAMES SCHOOL CLASS DATE CLC: STRATEGIC MANAGEMENT CASE ANALYSIS PART 1: ACTION PLAN AND CALENDAR OF EVENTS 2 Key Issues Introduction Krispy Kreme Doughnuts Inc. is a company that deals with doughnuts, coffee, and other snacks items. The company has its headquarters in North Carolina and has established branches in more than twenty-three countries. The company operates in factory shops where customers have the chance to purchase doughnuts as they are cooked. The company has supply chain stores that provide them with raw materials for their products. This paper analyzes some of the challenges that the company faces and the reason for the challenges. Similarly, the paper tries to develop some potential strategies and possible solutions and steps for the implementation of the developed strategies. The company is believed to be one of the biggest competitors in the restaurant industry popularly known for its donuts. Due to the emergence of competitors in the market towards the end of 2004 and the beginning of 2005 the company’s development began to decrease which affected their expansion plan. Their significant competitors include Dunkin Donuts, Starbucks and Tim Hortons which is based in Canada. Through SWOT analysis it is clear that the company faces a lot of threats in the market. Competitors always come up with new and substitute products that attract customers. Some of these substitutes are popular among the customers and are threats to Krispy Kreme’s coffee (Cohen et al., 2017). The company’s vision statement according to what has been posted on the websites is to be the leader in doughnuts and other complementary products in the international market as they create magic moment globally. The company’s mission statement states, “To touch and enhance lives through the joy that is Krispy Kreme.” The company’s primary strategy is concentrated on CLC: STRATEGIC MANAGEMENT CASE ANALYSIS PART 1: ACTION PLAN AND CALENDAR OF EVENTS 3 revenue the stores that are owned by the company and its other businesses including royalties and fees. From the beginning, the company thought that the best way to stay on top in the market among their competitors was franchising which involved a lot of risks for the company at the same time putting a lot of responsibilities on the franchise holders. Following the cash flow on equity investment in the year 2001 of 91% attracting franchise was the easiest thing to do. Two years later the company came up with a new business plan of adding new stores that would be adequate to boost the sales to be able to achieve the required 20% revenue growth plus the 25% annual growth in their earnings per share. In a market where there is a lot of competition the best tool that organizations can use to stay on top of their competitors is a clear marketing strategy. This appeared to be one of the areas that the company needed to improve on. Krispy Kreme’s marketing plan seems to be the simplest in that there are fewer efforts that have been put in marketing their products (Cohen, et al., 2017). Despite everything going on with the company they still have objectives that need to be achieved within a given period. Their first objective is reducing the amount of needed investment for producing a specific level of sales as they reduce the cost of operation. To achieve this objective, the company plans to establish and make use of satellite stores and replace the big stores and other expensive stores. The second objective of the company is to centralize the production of doughnuts to minimize the fixed costs which would help in realizing greater production efficiencies. The third objective of the company is to reduce the number of locations that make doughnuts for the company to achieve greater consistency of the quality of their products. The fourth objective is giving the CLC: STRATEGIC MANAGEMENT CASE ANALYSIS PART 1: ACTION PLAN AND CALENDAR OF EVENTS 4 employees working at their stores the chance to meet the best customer satisfaction and in shop consumer experience. To achieve the objectives of the company, there must be contingencies that have been put in place to make sure that these goals are met. To reduce the operation costs, the company has embarked on closing all the stores that are not performing according to the set standards. To reach the international market and to cover a wider area, there is a plan to open new companyowned satellite stores. Some key issues that have been identified are there is no published mission of the business. Hot and fresh doughnut is their aim, but items are being sold at convenience stores so they are not hot or fresh as they advertise. There is a need to capitalize more on the coffee products to help drive revenue. Rent space in the large grocery stores as opposed to owning buildings to reduce cost. Healthier choices are available elsewhere and the lack of diversification compared to competitors. Team Focus Our team focus for the Krispy Kreme case analysis is to propose a vision and mission statement, evaluate the organizations existing objectives and strategies, and provide and defend a three-year strategic plan to best allocate the company resources. Our team focus for the Krispy Kreme case analysis is to propose a vision and mission statement, identifying the external opportunities and threats, determine internal strengths and weaknesses, and evaluate the existing objectives along with current and alternative strategies. CLC: STRATEGIC MANAGEMENT CASE ANALYSIS PART 1: ACTION PLAN AND CALENDAR OF EVENTS 5 References Cohen, B. D., Bennett, J., & Bubb, J. (2017). Krispy Kreme: The Franchisor That Went Stale. Kellogg School of Management Cases, 1-15. Kripsy Kreme Doughnuts Strategic Analysis Name Instructor Institutional Affiliation Date Krispy Kreme Doughnuts, Inc The company’s current mission and vision Mission and vision statement of the company both relate to the organizational purpose and are usually communicated in written form. They answer the question about who we are, what we do, what do we value, and where the company is going. A well-developed mission and vision statement of the company provides a strategic direction for the company enabling the company to achieve its goals and objectives. Krispy Kreme Doughnuts has a well-articulated mission and vision statement that communicates the company’s overall goals, objectives, and purpose of the market (David, 2011). The mission and vision statements of provides a Krispy Kreme Doughnuts summation of the values that drive growth and success of the company. The following are the current mission, vision, objectives, and strategies of Krispy Kreme Doughnuts. Mission Statement Krispy Kreme Doughnuts mission statement expounds on the company’s goal of the vision statement. The company’s mission statement states that “Our mission is to touch and enhance lives through the joy that is Krispy Kreme” (Quesito, 2014). Although the company mission statement outlines the values of the company to the customer, it is too broad and undefined. The company was established with a goal of providing the customer with what they want, but the mission statement does not state how they intend to achieve the mission. Vision Statement A company’s mission statement shows what the company continues to strive for in the future. In other words, every decision made in the present determines the success of what the company envisions to achieve. Krispy Kreme vision statement states that “Our vision is to be the worldwide leader in sharing delicious tastes and creating joyful memories” (Quesito, 2014). From the vision of the company, it is evident that the company’s vision statement is clear on what the company intends to achieve through future endeavors. The company’s vision to be a worldwide leader in sharing delicious tastes and creating joyful memories provides the basis for the expansion of Krispy Kreme into many foreign countries worldwide (David, 2011). The vision of sharing delicious tastes shoes that the company envisions continuing providing high quality and reliable doughnuts to its esteemed customers worldwide. Objectives and strategies of Krispy Kreme The company has developed some strategic goals that are designed to foster the growth and development of Krispy Kreme Doughnuts and improves its profitability in the bottom line. The primary strategic goals which the company is striving to devote its time and resources include the following. • Developing and testing domestic small shop formats to drive sales growth and profitability of the company • Enhancing their focus on small shop operations • Improving their off-premise business and channels. • Developing, testing and deploying new products to enhance their product portfolio. In addition to providing and enhancing the consumer experience, Krispy Kreme Doughnuts aims at expanding their brand menu offering to give customers a reason to visit their premises • The company aims at building on its success internationally by supporting the growth of its international franchises and expanding more to other lucrative markets within a global scope. New Mission and Vision Statements of the company Although Krispy Kreme Doughnuts has developed effective and competitive mission and vision statement, the company’s mission, and vision statement can be revised to become more evident and focused on meeting the objectives. The mission statement of the company is too broad and undefined and can be narrowed down as follows: Mission statement The company mission statement can be narrowed down as to state that, “our mission is to reach every humanity and culture throughout the world through developing delicious products that enhance and creates a light moment to every aspect of their lives.” Vision statement The vision statement of Krispy Kreme is clear on what the company aims to achieve through their future activities. This vision statement can be improved to provide more insights into what the company values and aspires to achieve. The revised vision statement of the company could read, “Our mission is to be the number one provider of delicious and testy products that create delightful memories on the face of all our customers globally.” Krispy Kreme external opportunities and threats In the external environment, there are external factors that present both opportunities and threats to the company. The external opportunities are the favorable factors that a company can use its strategic strengths and take advantage of (Ventimialia, 2009). The external threats are the unfavorable factors that threaten the success of the company in the external environment. Krispy Kreme just like any other company faces several external threats that may hinder its progress in the market. On the same note, the external environment presents some opportunities the company can take advantage of. External Opportunities The external opportunities provide Krispy Kreme Doughnuts with a means to improve its performance and competitiveness in the market environment. The following are some of the opportunities in the foreign market that can provide Krispy Kreme with a means to improve its performance (Ventimialia, 2009). • Market expansion- expansion of its franchise business into other foreign markets globally. • Expansion of its menu to increase its product offering portfolio • Create its market presence and stimulate demand through internet media adverting • Joining forces with other related business to create a healthy competitive force in the market External Threats External threats are the forces outside the organization that can adversely affect the performance of the company in the bottom line. Krispy Kreme faces several threats within its external environment including the following: Intense competition due to common basic products that produced by industry giants such as Starbucks and Dunkin Doughnuts. • Increased health consciousness-today many people are becoming conscious about their health especially in regards to products that may increase obesity and other health complications. • High gas prices also affect the company production activities on a global scale • Government regulations and poor jobs economy. References David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall. Guayaba y Quesito. (2014). Krispykreme.do. Retrieved from http://www.krispykreme.do/productos/doughnuts/ guayaba-y-quesito Ventimialia, J. (Ed.). (2009). Krispy Kreme Doughnuts Inc. Ward's Business Directory of U.S. Private and Public Companies 52nd ed., 12(232). Retrieved from http://find.galegroup.com/gdl/start.do?prodId=GDL Key External Factors Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 5. Tim Horton's does not have the globalization (primarily in Canada) Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a health-conscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 10. Thousands of global 'mom & pop' shops Total Weight Rating 0.14 0.08 0.10 0.11 0.09 3 2 1 4 2 0.14 0.10 0.10 0.07 0.07 1.00 1 2 1 2 2 Weighted Score 0.42 0.16 0.1 0.44 0.18 0.14 0.2 0.1 0.14 0.14 2.02 Tim Horton's Critical Success Factors Advertising Product Quality Price Competitiveness Management Financial Position Customer Loyalty Global Expansion Market Share Total Weight 0.13 0.16 0.10 0.11 0.12 0.12 0.14 0.12 1.00 Rating 2 2 3 2 3 3 1 1 Score 0.26 0.32 0.30 0.22 0.36 0.36 0.14 0.12 2.08 Dunkin' Donuts Rating 4 3 3 2 3 4 2 3 Score 0.52 0.48 0.30 0.22 0.36 0.48 0.28 0.36 3.00 Starbucks Rating 4 3 2 3 2 4 3 3 Score 0.52 0.48 0.20 0.33 0.24 0.48 0.42 0.36 3.03 Strengths: Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Weaknesses: Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Internal Factor Evaluation Strengths Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Weight Rating 0.08 0.2 0.11 0.07 3 3 4 2 0.2 0.05 0.09 0.2 1 4 3 3 2 IFE and EFE Matrix Easy to understand. The input factors have a clear meaning to everyone inside or outside the company. There’s no confusion Easy to use. The matrices do not require extensive expertise, many personnel or lots of time to build. Focuses on the key internal and external factors. Unlike some other analyses (e.g. value chain analysis, which identifies all the Multi-purpose. The tools can be used to build SWOT analysis, IE matrix, GE-McKinsey matrix or for benchmarking. Limitations Easily replaced. IFE and EFE matrices can be replaced almost completely by PEST analysis, SWOT analysis, competitive profile Doesn’t directly help in strategy formation. Both analyses only identify and evaluate the factors but do not help the company Too broad factors. SWOT matrix has the same limitation and it means that some factors that are not specific enough can be c Weighted Score 0.24 0.6 0.44 0.8 0.15 0.27 0.4 2.9 he company. There’s no confusion over the terms used or the implications of the matrices. ain analysis, which identifies all the activities in the company’s value chain, despite their importance), the IFE and EFE only highlight the k ix or for benchmarking. SWOT analysis, competitive profile matrix and partly some other analysis. ctors but do not help the company directly in determining the next strategic move or the best strategy. Other strategy tools must be used hat are not specific enough can be confused with each other. Some strengths can be weaknesses as well, e.g. brand reputation, which can nd reputation, which can be a strong and valuable brand reputation or a poor brand reputation. The same situation is with opportunities a me situation is with opportunities and threats. Therefore, each factor must be as specific as possible to avoid confusion over where the fac void confusion over where the factor should be assigned. Strength Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 5. Tim Horton's does not have the globalization (primarily in Canada) Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a health-conscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 10. Thousands of global 'mom & pop' shops Space Matrix Internal factors Competitive advantage Market shares Affordable doughnuts “Hot Doughnuts Now” entices growth in other countries Available at various outlets Average Finacial strength rating 5 4 1 3 3 3.2 Gross Revenue 4 Reduced operating expense 2 Assets 1 Equity Average 1 2 0.8 4.8 External factors Industry strengths Dunkin' Donuts accounts for significant sales with coffee drinks Transformation of a health-conscious society Starbucks has significantly more locations worldwide (18,000 stores) Coffee prices are subject to wild price fluctuations Thousands of global 'mom & pop' shops Environmental factors Convenience because of busy/hectic lifestyles People crave/love sweets Expansion into South Korea & Russia; generated investor interest Dunkin' Donuts does not have the "hot" doughnuts Tim Horton's does not have the globalization (primarily in Canada) rating -2 -2 -5 -1 -2 -2.4 2 4 1 5 2 2.8 Brand My Brand KKK Brand Brand Revenues $490M $749M $16.477M Market Cap 1.24B 5.32B 81.83B EPS Ratio Revenue/Empl oyee 0.46 175,000 1.7 473,000 1.69 86,000 Net Income 30M 176M 2,068M Stars High earners neutral cash flow ? Low earnings, unstable strategy: invest Strategy: further analysis Cash cow strategy: milk Dogs strategy:Divest Business Strength/Competitive Position Internal Factor evaluation (Weighted S Strong Industry Attractiveness High External factor evaluatio (weighted scores Medium Average Low 4 3 2 or evaluation (Weighted Scores Weak 4 3 2 1 Quandrant ii Market development market penetration Product development Quadrant iii unrelated diversification Grand Strategy Matrix Rapid Market Growth Slow Market Growth Quandrant i Product development global markets Diversification market developmemt Quadrant iv Related diversification Joint Ventures Key Internal Factors Internal strengths Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Internal Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Key External Factors Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets Weight 0.08 0.2 0.11 0.07 0.2 0.05 0.09 0.2 0.14 0.08 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 0.11 5. Tim Horton's does not have the globalization (primarily in Canada) 0.09 0.1 Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a healthconscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 0.14 0.1 0.1 0.07 10. Thousands of global 'mom & pop' shops Sum of Attractiveness of scores 0.07 Market Development Market Penetration AS TAS AS2 TAS2 2 0.16 3 0.24 3 0.6 3 0.6 3 0.33 1 0.11 1 0.07 2 0.14 0 0 1 0.2 2 0.4 2 0 0.18 2 1 0.1 0.09 3 0.6 4 0.8 0 0 0 3 2 0.42 0.16 1 1 0.14 0.08 1 0.1 0 0 2 0.22 2 0.22 3 0.27 2 0.18 0 0 3 0.42 3 0.42 4 0.4 2 0.2 2 0.2 1 0.1 1 0.07 2 0.14 1 0.07 4.47 2 0.14 4.1 Advantages and Disadvantages of other Tools. Strategic management involves continuous assessments of critical components, such as external and internal environments, short-term and long-term objectives, organizational structure, and strategic control smallbusiness.chron.com (2018) PESTLE analysis is useful for business planning, strategic planning, marketing, and product development planning at the organizational level. Cost-effectiveness, a deeper understanding of business, alertness to threats and the method to exploit opportunities are some main benefits of PESTLE analysis. Technology and our society are evolving at a rapid pace. Such changes have made it difficult for the management to anticipate the developments that can affect the growth prospects of an organization in the long run. The most significant disadvantage of the model is that PESTLE analysis is only based on an assessment of the external environment. So the results obtained from this model are not useful or complete To understand the sources of competitive advantage firms are using many tools to analyze their external (Porter’s 5 Forces, PEST analysis) and internal (Value Chain analysis, BCG Matrix) environments. VRIO analysis stands for four questions that ask if a resource is: valuable? rare? costly to imitate? And is a firm organized to capture the value of the resources. Using VRIO Analysis is a great way to find the advantages that one company may possess over the competition. http://smallbusiness.chron.com/disadvantages-strategic-management-80740.html Key External Factors Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 5. Tim Horton's does not have the globalization (primarily in Canada) Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a health-conscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 10. Thousands of global 'mom & pop' shops Total Weight Rating 0.14 0.08 0.10 0.11 0.09 3 2 1 4 2 0.14 0.10 0.10 0.07 0.07 1.00 1 2 1 2 2 Weighted Score 0.42 0.16 0.1 0.44 0.18 0.14 0.2 0.1 0.14 0.14 2.02 Tim Horton's Critical Success Factors Advertising Product Quality Price Competitiveness Management Financial Position Customer Loyalty Global Expansion Market Share Total Weight 0.13 0.16 0.10 0.11 0.12 0.12 0.14 0.12 1.00 Rating 2 2 3 2 3 3 1 1 Score 0.26 0.32 0.30 0.22 0.36 0.36 0.14 0.12 2.08 Dunkin' Donuts Rating 4 3 3 2 3 4 2 3 Score 0.52 0.48 0.30 0.22 0.36 0.48 0.28 0.36 3.00 Starbucks Rating 4 3 2 3 2 4 3 3 Score 0.52 0.48 0.20 0.33 0.24 0.48 0.42 0.36 3.03 Strengths: Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Weaknesses: Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Internal Factor Evaluation Strengths Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Weight Rating 0.08 0.2 0.11 0.07 3 3 4 2 0.2 0.05 0.09 0.2 1 4 3 3 2 IFE and EFE Matrix Easy to understand. The input factors have a clear meaning to everyone inside or outside the company. There’s no confusion Easy to use. The matrices do not require extensive expertise, many personnel or lots of time to build. Focuses on the key internal and external factors. Unlike some other analyses (e.g. value chain analysis, which identifies all the Multi-purpose. The tools can be used to build SWOT analysis, IE matrix, GE-McKinsey matrix or for benchmarking. Limitations Easily replaced. IFE and EFE matrices can be replaced almost completely by PEST analysis, SWOT analysis, competitive profile Doesn’t directly help in strategy formation. Both analyses only identify and evaluate the factors but do not help the company Too broad factors. SWOT matrix has the same limitation and it means that some factors that are not specific enough can be c Weighted Score 0.24 0.6 0.44 0.8 0.15 0.27 0.4 2.9 he company. There’s no confusion over the terms used or the implications of the matrices. ain analysis, which identifies all the activities in the company’s value chain, despite their importance), the IFE and EFE only highlight the k ix or for benchmarking. SWOT analysis, competitive profile matrix and partly some other analysis. ctors but do not help the company directly in determining the next strategic move or the best strategy. Other strategy tools must be used hat are not specific enough can be confused with each other. Some strengths can be weaknesses as well, e.g. brand reputation, which can nd reputation, which can be a strong and valuable brand reputation or a poor brand reputation. The same situation is with opportunities a me situation is with opportunities and threats. Therefore, each factor must be as specific as possible to avoid confusion over where the fac void confusion over where the factor should be assigned. Strength Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 5. Tim Horton's does not have the globalization (primarily in Canada) Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a health-conscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 10. Thousands of global 'mom & pop' shops Space Matrix Internal factors Competitive advantage Market shares Affordable doughnuts “Hot Doughnuts Now” entices growth in other countries Available at various outlets Average Finacial strength rating 5 4 1 3 3 3.2 Gross Revenue 4 Reduced operating expense 2 Assets 1 Equity Average 1 2 0.8 4.8 External factors Industry strengths Dunkin' Donuts accounts for significant sales with coffee drinks Transformation of a health-conscious society Starbucks has significantly more locations worldwide (18,000 stores) Coffee prices are subject to wild price fluctuations Thousands of global 'mom & pop' shops Environmental factors Convenience because of busy/hectic lifestyles People crave/love sweets Expansion into South Korea & Russia; generated investor interest Dunkin' Donuts does not have the "hot" doughnuts Tim Horton's does not have the globalization (primarily in Canada) rating -2 -2 -5 -1 -2 -2.4 2 4 1 5 2 2.8 Brand My Brand KKK Brand Brand Revenues $490M $749M $16.477M Market Cap 1.24B 5.32B 81.83B EPS Ratio Revenue/Empl oyee 0.46 175,000 1.7 473,000 1.69 86,000 Net Income 30M 176M 2,068M Stars High earners neutral cash flow ? Low earnings, unstable strategy: invest Strategy: further analysis Cash cow strategy: milk Dogs strategy:Divest Business Strength/Competitive Position Internal Factor evaluation (Weighted S Strong Industry Attractiveness High External factor evaluatio (weighted scores Medium Average Low 4 3 2 or evaluation (Weighted Scores Weak 4 3 2 1 Quandrant ii Market development market penetration Product development Quadrant iii unrelated diversification Grand Strategy Matrix Rapid Market Growth Slow Market Growth Quandrant i Product development global markets Diversification market developmemt Quadrant iv Related diversification Joint Ventures Key Internal Factors Internal strengths Affordable, high quality doughnuts “Hot Doughnuts Now” sign draws people from the outside Consistent expansion and growth in other countries Product sold at supermarkets, convenience stores, and retail outlets Internal Weaknesses Product line is limited and slow to expand Advertising could be more aggressive Lack of true vision statement Revenues down in comparison to rival firms Key External Factors Opportunities 1. Convenience because of busy/hectic lifestyles 2. People crave/love sweets Weight 0.08 0.2 0.11 0.07 0.2 0.05 0.09 0.2 0.14 0.08 3. Expansion into South Korea & Russia; generated investor interest 4. Dunkin' Donuts does not have the "hot" doughnuts 0.11 5. Tim Horton's does not have the globalization (primarily in Canada) 0.09 0.1 Threats 6. Dunkin' Donuts accounts for significant sales with coffee drinks 7. Transformation of a healthconscious society 8. Starbucks has significantly more locations worldwide (18,000 stores) 9. Coffee prices are subject to wild price fluctuations 0.14 0.1 0.1 0.07 10. Thousands of global 'mom & pop' shops Sum of Attractiveness of scores 0.07 Market Development Market Penetration AS TAS AS2 TAS2 2 0.16 3 0.24 3 0.6 3 0.6 3 0.33 1 0.11 1 0.07 2 0.14 0 0 1 0.2 2 0.4 2 0 0.18 2 1 0.1 0.09 3 0.6 4 0.8 0 0 0 3 2 0.42 0.16 1 1 0.14 0.08 1 0.1 0 0 2 0.22 2 0.22 3 0.27 2 0.18 0 0 3 0.42 3 0.42 4 0.4 2 0.2 2 0.2 1 0.1 1 0.07 2 0.14 1 0.07 4.47 2 0.14 4.1
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Running Head: STRATEGIC MANAGEMENT CASE ANALYSIS SUMMARY AND
OUTLINE

Strategic Management Case Analysis Summary and Outline
Name
Instructor
Institutional Affiliation
Date

1

STRATEGIC MANAGEMENT CASE ANALYSIS SUMMARY AND OUTLINE

2

Krispy Kreme is one of kind company that is established on the foundation of quality and
value for customers. Consumers are the life-blood of the company and often the company is
driven by the notion that there is no substitute for quality in their stores. The company has
adopted the growth strategies which incorporates other important strategies that has enabled
Krispy Kreme realize potential growth in the market share both locally and internationally
(Goetsch & Davis, 2014). The following are some strategic recommendations that the company
can pursue.
Deployment of technology-centered services in all aspects of its business processes.
There is need to automate all services of the company including its supply chain and other
strategic areas to realize growth potentials (Goetsch & Davis, 2014). This strategy is supported
by the company’s objective of improving service quality within all areas of functionality. Krispy
Kreme aims to generate customer traffic in all areas of its operations including coffee and other
snack items. To compete more effectively in these areas the company must deploy selective
...


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