Case Study of Strategic Management

521 WordsJan 30, 20133 Pages
Case Analysis - `Krispy Kreme Doughnuts in 2006: Is a Turnaround Possible?` Case AnalysiS : Krispy Kreme Doughnuts in 2006 : Is a Turnaround Possible 2007 Case Analysis Krispy Kreme Doughnuts in 2006 : Is a Turnaround Possible Introduction This describes the case of Krispy Kreme Doughnuts that experience a shifting in consumers ' preference due to their demands towards low-carbohydrates diet . The changing consumers ' preferences have significant impact to the company performance as shown in the declining sales records and financial performances To be specific , this will answer the reason why a company that records a winning streak within the past several years suddenly finds br square one in managing change . The elaboration , therefore , will address several key issues that managements of Krispy Kreme Doughnuts overlook and further we provide recommendation on kinds of turnaround strategy that the company may take Pros and Cons of Krispy Kreme Doughnuts Strategy In general , Krispy Kreme Doughnuts generate revenue and profits by managing three sources as following Increased sales at company-owned stores /outlets Raising royalties from franchised stores and franchise fees from new store opening Sales of doughnut mixes , customized doughnut producing equipment , and coffees to franchised stores Regarding the declining performance of Krispy Kreme Doughnuts , we find that the company relies on revenue generated from off-premises , which account for 60-percent of company-owned stores revenue . The condition significantly impact the performance of Krispy Kreme Doughnuts when sales plummets at external outlets Krispy Kreme`s Competitive Strength and Rivals Krispy Kreme Doughnuts has several competitive advantages that once put them as the great challenger to Dunkin Doughnuts , the leader in doughnuts market . First , the company grows quickly through

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