Krispy Creme

If you work this problem as a group assignment, each group member should be prepared to

a. What is the name of the company, and what is its mission? (1.0 points)

Krispy Kreme executives no longer rush to implement new plans before the time is right. They carefully study each geographical location to make sure its market will support a full-scale doughnut operation. Also, management spends time checking out sites for individual stores. Potential franchisee and employees are required to maintain certain standards and are thoroughly screened.

In India, Citymax Hotels India Pvt. Ltd., the hospitality division of the Dubai based retail giant Landmark Group is a licensed franchisee of Krispy Kreme Doughnut Corporation for the South and West region. Krispy Kreme the world leader in selling donuts along with the original glazed and flavours of donuts it also offers a variety of products ranging from Filter Coffee, Latte to shakes. It follows a differential pricing model where the original glazed donuts are priced little lower than the other donut varieties.

In order to achieve our first marketing objective, we recommend the following activities: Keep producing high quality, positive image products that satisfy customer’s needs. Secondly, the team must maintain direct and indirect sales force of no less than 140 and plan in advance in order to have the budget to do so. We also recommend offering employee fringe benefits to encourage long term positions

1. Assess Interco’s financial performance. Why is the company a target of a hostile takeover attempt?

The boards of directors include Edward S. Lampert, Louis J. D’Ambrosio, William C. Kunkler III, Steven T. Mnuchin, Ann, N. Reese, Emily Scott, and Thomas J. Tisch (About, n.d.).

1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?

They include: creating a tax shield, generating more free cash flow for future expansions, generating more free cash flow to repurchase stock, a short run increase in EPS due to repurchase of stocks, and overall an increase to the intrinsic value of the company.

Krispy Kreme has experienced dramatic growth over the past 5 years based on their income statement. Every line on the income statement has grown rather impressively. Revenues have grown from $220M to $666M and net income has grown from $6M to $57M. Based on the income statement, Krispy Kreme is doing very well.

1) Invest heavily in market research section in order to create market-driven products and services.

The company will conduct marketing strategies that aim at creating an image for the brand in the minds of the consumers and reminding them customers about their products consistently.

This presentation will analyze the current market situation, identify possible opportunities and threats and recommend strategic actions for Krispy Kreme Australia.

Krispy Kreme Doughnuts was a successful privately owned business since 1937. In 1982 a group of franchises bought back the company from Beatrice Foods for $24 million, and reintroduced the old recipe of doughnuts and their “hot doughnuts now” system. In 1998 Scott Livengood became Krispy Kreme’s new

Despite the fact that the company could grow by doing more and more acquisitions, it was vital for the company to invest in its own organic growth. The company aims to grow organically two to three times higher than the global GDP of 80% (Immelt, 2005).