Around 2004 when the economy began to slow, Krispy Kreme encountered some problems related to their business. Those within and outside of Krispy Kreme attributed this to the low-carb diets that became all the rage during this time. However, looking closely, we see that it is a result of not only this, but more importantly, poor management and inaccurate accounting procedures. Krispy Kreme aims to be the global leader in doughnuts. Their business strategy focuses on revenue from their on-premise sales, off-premise sales, manufacturing and distribution, and franchise royalties and fees.
The company not only had a good B2C position now but also a good B2B position for relationship with other business firms. The company brought a new product to the market it brought them money, they shipped more than 3 million components in 2002. Question2: What did SMaL do wrong? They had quick approach they decided to design to develop their products and they wanted to develop a variety of products but it was impossible for the small company with limited resources. One of the negative effects of this approach was that, they could not get the customers feedback about their products.
There is a lot more information today and people are connected to the production of their products more so than ever. With the free flow of information, people are much more informed about where and how their products came about. “Made in America” used to be a standard for the quality of product and business practice, but I believe it is moving towards the perception of locally-made (reinvest locally). Companies are now the labels that carry the reputations of quality and good business practice. Whole Foods has grown dramatically in the past decade, because even though they are generally more expensive, they provide a standard of quality and good business practices.
Even though the U.S. economy has been suffering greatly since mid 2000, Sara Lee has maintained market share in the core products that included foodservice, beverages, bakery items, body care, and household items. A current split of the company has been noticed and that may indicate a possible sale of its international business, leaving open rivals to finance an acquisition. The brand mix of similar products – unique brands – gives Sara Lee a strong competitive advantage over the competition with product effectiveness that reduces over all costs and drives up margins. Using a cross-mix strategy would remove the potential selling of one division or other, which would reassure investors that the company has a long-term strategy to maintain both the North America and International operations. The company is in a great cash position to develop long term strategies by using innovation, private labeling and marketing to generate new growth among other retail locations – reducing the overall dependency on Wal-Mart.
Frito Lay The issue in this case is that Frito Lay is trying to keep up with the competition. To enhance its sales it decided instead of recreating an old product with a new flavor the staff collaborated and decided to expand to a whole new product line. This was a better choice because instead of placing out an old product that people are aware of, the company made a decision to go out on a limb and try a whole new product. This worked out very beneficial for the company because in today’s time Sunchips are a very popular brand of chip and are looked at as a slightly healthier alternative to regular potato chips. Today, a lot of customers are starting to become more health conscious and now Frito Lays may be lacking in their ‘power sellers’ such as Doritos however they are continuing to enhance Frito Lays sales by buying Sunchips instead.
It was established in 1965, PepsiCo was the world’s largest snack and Beverage Company with net revenues of approximately $39.5 billion. Their main focus through 2007 was “The company’s top managers were focused on sustaining the impressive performance that had been achieved since its restructuring through strategies keyed to product innovation, close relationship with distribution allies, international expansion, and strategic acquisition” (Gamble, 2008) Their main focus was to target new products with support from celebrities, continue to promote new healthy products, and produce faster growth in international markets. "PepsiCo's responsibility is to continually improve all aspects of the world in which we operate - environment, social, economic - creating a better tomorrow than today." Pepsi vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. The generic and supplemental strategies used for PepsiCo was based on a company’s menu of strategy options; the basic competitive strategy option that utilized the focused low-cost, low-cost provider, focused differentiation, broad differentiation, and best-cost provider.
Best Snacks Problem Solution Christopher Blasdel MMPBL550/Creativity, Innovation and Organizational Design January 23, 2011 Josey Chrisostomo Best Snacks Problem Solution Best Snacks, Inc. is a successful, seasoned organization with more than 100 in business. As the times and industry change, it is imperative that an organization maintain an innovative edge to keep up with competition. In the case of Best Snacks, the last five years have been less than successful as the offerings provided have not changed significantly. Innovation is a must have within a business plan, and for Best Snacks, Inc., the lack of innovation has hurt them tremendously. It is necessary for Best Snacks to gain a creative and innovative edge and approach the competition within the market head on.
It has been realized that 99 per cent of the world population is not yet McDonald’s customers. 3) New food items- As McDonald’s has already made a good impression on the minds of the people there is a good scope for introducing new food items in order to have some variation in the food item. They have the ability to add healthier lines of food. They have already gotten rid of super sizing and I think they have made their fries healthier. 4) Low competition- When McDonalds was entered in the market there was very low competition.
However, with the solid reputation that Starbucks has built gives the company a competitive advantage over their competitors when entering new market territories. Risk Management and the Business Model used by Starbucks Home grown in the United States, Starbucks is delivering high performance not only to their customer but also to the company as a whole. Last year, Starbucks had a remarkable stock price increase in which they contribute to many factors. “As of the end of calendar 2011, Starbucks stock price had increased 43 percent from a year earlier” (GlobalData 2012). Since the company attributes their success due to customer experiences/rapport, employee morale and innovative products, Starbucks continues to replicate this business model to maintain a competitive edge.
Strategically, Sara Lee is returning to its roots of food service where name recognition is the strongest. 2. Of the remaining industries represented in Sara Lee’s business portfolio, I view the retail, foodservice, and beverage industries as being the most attractive. Sara Lee does have well-developed name recognition within the North American retail industry. While the economy is still low, sales of these retail products will likely remain high as consumers purchase lunch meats and other foods rather than eating out and frozen desserts rather than purchasing from a more expensive local bakery.