Strategic management :

6/30/2013

Strategic Management Assignment

(Group work)

Students Name: Michelle, Wiktor, Willow Date: 2007-7-17

Strategic management

6/30/2013

KRISPY KREME DOUNHNUTS, INC.2004 CASE STUDY

Vision Statement:
Become Globally Recognized & Remembered Donuts

Mission Statements:
Customers: All products will have a good taste and quality that are second to none. Control product quality and freshness of the ingredients. Employees: Have a passion that growth and success as a company is a natural result of the growth and success of our people. Products/ Services: Krispy Kreme sells coffee espresso, frozen blends plain or flavored milk, and has 25 varieties of doughnuts, in additional it has special flavors such as the Pumpkin Spice doughnuts offered during the fall months. All products will have a taste and quality that are second to none. Control product quality and freshness of the ingredients. Survival Growth Profit: Be thoroughly prepared to execute growth initiatives when they become needed. Public Image: Instill the belief that the company is a set of capabilities, not just a product or brand. Philosophy: All products will have a taste and quality that are second to none. Control product quality and freshness of the ingredients. Be thoroughly prepared to execute growth initiatives when they become needed. The keys to creating and maintaining a competitive advantage include observing that quality, service, and innovation are second to none. Instill the belief that the company is a set of capabilities, not just a product or brand. Have a passion that growth and success as a company is a natural result of the growth and success of our people. 2

Strategic management

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Experiential Exercise 1A
1. External Opportunities Serve additional customer groups: During the past two decades, an everincreasing percentage of U.S. food dollars has gone to eating out. With a greater percentage of Americans working, there has been insufficient time available for at-home food preparation. Krispy Kreme believes that this trend along with growth in two-income households will increase snack-food consumption and further growth of doughnut sales. Enter new markets or segments: Krispy Kreme plans to soon open stores in Japan, Mexico, South Korea, and Spain. The company has a great deal of opportunities in these markets. Based in Atlanta, one out of three adult Americans is overweight. Healthier & Low calories food becomes very popular to the customers. Perhaps it should develop a new low calories doughnut selection and would have many opportunities. External Threats Changing buyers needs and tastes: Healthier & Low calories food becomes very popular to the customers. And compare to its No.1 competitor Dunkin Donuts, one glazed doughnuts from Dunkin Donuts has 180 calories, while one Hot Original Glazed doughnut from Krispy Kreme has 200 calories. Aggressively competitive environment: including significant price discounts by industry leaders McDonalds and Burger King. Global issues: different culture, different eating habits and some other things. For example, Brits are accustomed to their traditional English breakfast, bacon, and milk; they dont like the biscuit, which is a cookie, with a doughnut for their snack food. Some things like these are all the threats to KKD. Internal Strengths Better manufacturing capability: Krispy Kreme produces 7.5 million doughnuts a day. Each KKD store is a doughnut factory which has the capacity to produce from 4,000 dozen to over 10,000 dozen doughnuts daily. Correct and good activity of business: KKD acquired Montana Mills Bread Co Montana Mills Bread Co. is a good company. The stores cater to upscale customers, offering baked goods, read-made sandwiches, specialty coffees, and gift item. This company gets the high level customer market share for the KKD. Management information system: the information department has teamed up with Network Appliance to provide network storage solutions for KKD. This website allows store operators and franchise owners access to real-time company information, including inventory updates, equipment maintenance, 3

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Strategic management

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and store directories, dramatically improving communications between owners and the home office. Employees training to help them reach their top potential. People are the most important resource of the company; the employees have a high level knowledge, so it is good for the company achieve the objectives efficiently. 4. Internal Weaknesses Marketing share is smaller than its No.1 competitorDunkin Donuts. The speed of R&D is to slow. The customers need has changed, but the new product hasnt produced. KKDs Website is not as user friendly as Dunkin Donuts. DD offers online ordering of its coffee and gift baskets. KKD has no online ordering.

Experiential Exercise 1B
Step 1 The ethics related to the employees: 1) Establish firmly sense of provide quality service to the customers. 2) Loving the job, make efforts to do the work. 3) Dont use abusive language, politeness and warm to the customer 4) Dress in businesslike attire, the uniform should clean and tidy. 5) Solidarity, cooperation and mutual support, follow directives of supervisors, concern comrades together. 6) hard work, dedication, self-discipline strictly 7) perform assigned duties to the best of your ability 8) exhibit good attendance and punctuality 9) Report unethical and illegal activities to your manager. 10) Dont use company property for personal benefit. 11) Illegal drugs and alcohol at work are prohibited. 12) Exhibit standards of personal integrity and conduct, The ethics related to the product: 13) the product should be clean, healthy, guarantee for the customers health 14) the price of the product should be fair, should give a correct value according to the price 15) provide products and services of the highest quality The ethics related to the company: 16) the business should comply with all laws 17) conserve resources and protect the environment 18) convey true claims in product advertisement 19) demonstrate courtesy, respect, honesty and fairness 20) Racial, ethnic, religious, and sexual harassment at work is prohibited. 21) Comply with accounting rules and controls. 22) Participate in community and political activities.

Strategic management

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Step 2 Some ethics are very common for all the company, such as the business should comply with all laws, exhibit good attendance and punctuality, provide products and services of the highest quality and so on. So we include these certain variable. And some ethics are good for the company, having these ethics the company can grow better, like Participate in community and political activities, Report unethical and illegal activities to your manager and so on. So we also include these certain variable. Some rules like firearms at work are prohibited is not happened usual, so we did not include. Step 3: Having a code of ethics is not sufficient for ensuring ethical behavior in an organization. Because ethics are just advice people to do, not must do. It is not the law. It is not compelling. Some people who have high level quality can comply with these ethics; to these people maybe having a code of ethics is enough. But there are many people that cannot comply with these ethics. So there must have a law inhibited to them. Maybe as the development as the society, people received high education, they have a high lift quality, a code of ethics is sufficient. Experiential Exercise 1C 1. E, L 2. E,L 3. U,L 4. U,I 5. E,L 6. U,L 7. E,L 8. E,L 9. U,L 10. U,L 11. U,L 12. U,L 13. U,L 14. U,L 15. E,L 16. U,L 17. E,L 18. U,L