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KRISPY KREME DOUGHNUTS, INC. CASE 14 CLASS CASE ANALYSIS I. Core Problem/Issue Increase shelf life of a single product store concept Overcome the odds against long-term stock success Maintain revenue growth II. Strengths, Weaknesses, Opportunity, Threats (SWOT) Name Recognition ▪ Increased health Product Quality conscience awareness Over 70 years product ▪ Possible legislation development regarding liability Customer Loyalty of products with high Affordable product fat content Attractive operation ▪ Improve packaging to presentation enhance hot, melt in Initiating new business your mouth product model ▪ Introduce recycled Improving manufacturing packaging products and distribution methods ▪ Improve methods to Improve employment dispose of discarded training efforts cooking grease Develop managerial ▪ Increase market training program channels/product Broaden sales of coffee distribution and other beverage ▪ Standardize cleaning products and maintenance of Underdeveloped Human all store locations, Resource programs minimize health Achievement of revenue code violations Quotas and increased ▪ Reduce brick and Earnings per share mortar costs High cost of entry into ▪ Support internal real new markets estate and No specific mission construction Statement development, reducing Indirect management style expansion costs PAGE TWO KRISPY KREME DOUGHNUTS, INC. CASE 14 1. McKinsey 7-S, Appendix A Structure Vernon Rudolph purchased assets, goodwill, Krispy Kreme name, rights to secret donut recipe, from Le Beau in 1933. 1937 Rudolph quits family business, departs to Nashville to seek new store location. Rudolph establishes store in Winston-Salem, NC. July 13, 1937 first Krispy Kreme donuts made and delivered to local grocery retailers. Rudolph begins retail sales fall of 1937. Rudolph partners with Mike Harding in 1954. The two begin building an equipment department and plant for blending donut mixes. Their intent was to control each step of the donut making process and to deliver hot donuts to customers as soon as they emerged from the frying and sugar glazing process. By late 1950s Rudolph and Harding had 29 shops in 12 states. 1960 all stores standardized with green roof, red glazed brick exterior, viewing windows inside, overhead conveyor, bar stools, creating the Krispy Kreme trademark look.
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