CASE 1 KRISPY KREME DOUGHNUTS

CASE 1: KRISPY KREME DOUGHNUTS INC.SITI NADHIRAH BT HAIRUDDIN224167SITI MADIHAH HANIM BINTI ABDULLAH223926

INTRODUCTIONThe parent company of Krispy Kreme is Krispy Kreme Doughnuts, Inc. that is based in Winston-Salem, North Carolina, United States.

Thought there are another similar companies in the market but Krispy Kremes signature item is a glazed doughnut that is traditional served warm.

Beside the store their products are sold in supermarkets, grocery stores, convenience stores, gas stations, Wal-Mart and Target stores in the United States.

The companys growth was steady prior to its initial public offering which was in 2000.

HistoryDoor opened on 13 July 1937Vernon Rudolph bought a secrete yeast-doughnut recipe from a new Orleans French chef, rented a building in what is now historic Old Salem in Winston-Salem, NC, and began selling Krispy Kreme doughnuts to supermarkets.

Improvement in the processBy now there was a small chain of stores mostly family owned. They use the Krispy Kreme recipe, but each store made its doughnuts from scratch. But after some time they developed a distribution system that delivered the perfect dry doughnut mix to each Krispy Kreme store

Few takeoversVernon Rudolph (founder) died in 1973

After few years of the death of the founder, a company called Beatrice Foods takeover the Krispy Kreme, but they could not successfully run the organization. So in 1982, a small group of Krispy Kremes early franchisees bought Krispy Kreme back

5

2001 Opened the first international store in Canada just outside the Toronto

2003 First store out side north America Opened in Sydney Australia and in London

Its stores have opened in Asia, Mexico, the middle east, Puerto Rico and Turkey. Its international expansion is continuing and addition they are working on new tasty products.

Krispy Kreme Stock2000 Krispy Kreme held an initial public offering of common stock at NASDAQBought Digital Java Coffee Company in April 2001Moved up to the NYSE on May 17, 2001 (KKD)

Krispy Kreme Downturn Low-carb, low-sugar doughnuts increase cost in ingredient too many stores in too little time Lack of advertising has caught up with KK

Income Statement & Balance Sheet

Analysis Income Statement

Analysis Balance Sheet

Ratios Analysis

ConclusionKrispy Kreme has been able to successfully inculcate its business objective as well as its core values, consistently in its employees day-to-day activities starting from recruitment till continuous performance appraisals.An analysis show that firms that is new on the market and has been able to differentiate itself and its products from competitors. It shows that Krispy Kreme has a bright future.