Krispy Kreme Envisions

Krispy Kreme envisions itself to become one of the worlds best and well-known doughnut companies.To reach this, they have to capitalize on their key strengths to combat the changes in themacroenvironment. Competition in the industry is fierce with dominating players and their ability torespond to the growth opportunity in the international scene. The U.S. market is also rapidly trendingtoward healthier food products which Krispy Kreme does not currently offer. For the past years, they have been incurring net losses despite their turnaround strategy. Total revenues for the company stores and supply chain have been decreasing since 2005. Because they failed to update their Uniform Franchise Offering Circular, they are suffering from opportunity losses indomestic franchisees. Their current production capacity is also underutilized because of a larger number of factory stores over satellite stores. After the internal and external factor evaluation, its best move is to hold and maintain. This will beachieved by implementing the market penetration strategy which focuses on aggressive marketing and increasing franchisees in the existing markets. This is the best strategy because it entails the least cost for Krispy Kreme and they can utilize their current resources for implementation. However, in this fast-growing industry and fierce competition, they may be left behind. The company will utilize a mix of 25%debt and 75% equity. The generic strategy of the firm is Focused Best-Value provider. This will encompass the market penetration strategy for a fully-effective implementation

I FE score of 2.77 indicates that Krispy Kreme is relatively internally strong with significant competitive strengths that can be used to address its response ability to the changes in the external environment. Their doughnut-making equipment and process which give them a large capacity toproduce doughnuts is one of their distinctive competencies, along with their one-of-a-kind taste, special flavor offerings for certain seasons, and a unique franchise program. Customers can also enjoy watching the entire doughnut-making process through their store theaters. As core competencies,Krispy Kreme offers a variety of doughnuts and beverages to go with them. Also, they have access tomany different distribution channels in both domestic and international markets. However, Krispy