University of the Philippines Cebu College Management Division Lahug, Cebu City

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. The U.S. market is also rapidly trending toward healthier food products which Krispy Kreme does not currently offer.

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University of the Philippines Cebu CollegeManagement DivisionLahug, Cebu CityMgt 190 Case Analysis # 1Krispy Kreme Doughnut - 2008Date Due: December 16, 2010Date Submitted: December 16, 2010Submitted to:Professor Jesus C. Cinco, Jr.Submitted by:Group 2Krystel Kaye Lee - Team LeaderRegie May BerouAnya Camille GabucanBea Marie JaenGlorabelle ResmaEXECUTIVE SUMMARYKrispy Kreme envisions itself to become one of the world's best and well-known doughnut companies. To reach this, they have to capitalize on their key strengths to combat the changes in the macroenvironment. Competition in the industry is fierce with dominating players and their ability to respond to the growth opportunity in the international scene. The U.S. market is also rapidly trending toward healthier food products which Krispy Kreme does not currently offer. For the past years, they have been incurring net losses despite their turnaround strategy. Total revenues for the company stores and supply chain have been decreasing since 2005. Because they failed to update their Uniform Franchise Offering Circular, they are suffering from opportunity losses in domestic franchisees. Their current production capacity is also underutilized because of a larger number of factory stores over satellite stores. After the internal and external factor evaluation, its best move is to hold and maintain. This will be achieved by implementing the market penetration strategy which

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