Essay About Given Level Of Sales And Smaller Satellite Stores

Krispy Kreme
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KRISPY KREME MATRICES/REPORTS
Current Strategies and Objectives
Per pages 26 and 27 of its Form 10-K (annual report) filed April 17, 2009, Krispy Kreme Donuts has
listed the following as its current objectives:
1. Reduce the investment required to produce a given level of sales and reduce operating costs by
operating smaller satellite stores instead of larger, more expensive factory stores .
2. Achieve greater production efficiencies by centralizing doughnut production to minimize the burden of
fixed costs.
3. Achieve greater consistency of product quality through a reduction in the number of doughnut-making
locations.
4. Enable store employees to focus on achieving excellence in customer satisfaction and in-shop
consumer experience.
5. Stimulate an increase in on-premises sales of doughnuts and complementary products by increasing
the number of retail distribution points to provide customers more convenient access to the companys
products.
Regarding strategies, the Form 10-K filed April 17, 2009 notes a few:
1. Open up new (or convert traditional factory stores to) “hot shops” that provide a hot doughnut
experience for customers throughout the day, instead of the traditional experience of having the hottest,
freshest doughnuts available only at certain times of the day—these “hot shops” would be added to
the traditional fresh shops and kiosks as the primary methods for market penetration while reducing
operating costs.
2. Open up new company-owned satellite stores for additional market penetration.
3. The company also plans to extend its testing of soft serve dairy products into additional
locations in fiscal 2010 as part of its product development.
4. Close stores that are not performing to company standards.
Vision
Krispy Kreme Donuts “Vision and Values” can be found on their web site
“We Believe
Consumers are our lifeblood, the center of the doughnut
There is no substitute for quality in our service to consumers
Impeccable presentation is critical wherever Krispy Kreme is sold
We must produce a collaborative team effort that is unexcelled
We must cast the best possible image in all that we do
We must never settle for second best; we deliver on our commitments
We must coach our team to ever-better results”
Vision Statement
From Krispy Kreme Donuts “Vision and Values” provides the following Vision Statement: “To be the global
leader in doughnuts and complementary products, while creating magic moments worldwide.”
Competitive Profile Matrix (CPM)
Dunkin Donuts
Starbucks
Tim Hortons
Critical Success
Factors
Weight
Rating
Score
Rating
Score
Rating
Score
Advertising
Product Quality
Product
Diversity
Price
Competitiveness