Krispy Kreme Doughnuts: Quantitative Strategic Plannning Matrix (QSPM) 1.

Market Penetration focusing on increase market share through graeter marketing effort and opening of satellite stores in current geographiccal areas KEY FACTORS OPPORTUNITIES 1. Industry stock price are improving 2. Product development in the US market also internationally, creating a healthier doughnut line. 3. Related diversification focusing on adding new products such as sandwiches,beverages, bagels and etc.

Weights 0.04 4

AS

TAS

AS

TAS

AS

TAS

0.16 0.32 0.18 -

4 4 2 -

0.16 0.32 0.12 -

4 3 2 -

0.16 0.24 0.12 -

2. Dunkin Donuts does not have hot doughnuts to sell. 3. Starbucks lacks a diversified and distinctive pastry line. 4. Asian love sweets and are open to trying foreign foods. 5. Families crave convenience because of busy lifestyles. 6. Many children loves sweet treats 7. South America, Africa and south Asia are markets to conquer THREATS 1. People are becoming more health conscious, which does not bode well for high-sugar, high-fat threats. 2. Dunkin Donuts presently dominates the doughnut market domestically and internationally. 3. Starbucks has approximately 25 times the amount of stores worldwide that krispy kreme donut has.

0.05 4 0.11 0.06 3 0.09 0.04 0.07 3 0.21 3 0.21 4 0.28 1

0.09 1 0.10 3 0.30 2 0.20 2 0.20 0.09 2 0.18 2 0.18

0.07 2 0.14 2 0.14 1 0.07

4. Cultural differences among countries make operations and doughnut consumption varied, which makes things difficult to control 5. Lower price is offered by the other doughnut producing firms than that of Krispy Kreme donuts. 6. Shareholders may sell Krispy Kreme Donut stock for lack of returns and dividends compared to other similar firms in the industry. 7. Restricted Cash flow from banks and massive layoffs have stifled the world economy decreasing discretionary income.

0.04 0.08 2 0.16 2 0.16 1 0.08 -

0.08 2 0.16 1 0.08 1 0.08

0.05 1.00 -

STRENGTHS 1. High quality douhgnuts with strong visual and one of a kid taste 2. Krispy kreme has a unique brand and variety of freshly made doughnuts. 3. Krispy Kreme has a high capacity to make 4000-10000 doughnuts daily. 4. Krispy Kreme can offer customer to watch product being made at the doughnut theater. 5. Consistent Expansion; Exposure in 10 foreign countries with an ongoing development of 200 additional stores in the Middle East, Hong Kong, Macau, Tokyo, the Philippines and Indonesia 6. Vertical integreation helps the quality of the product.

0.10

-

-

-

-

-

-

0.09 0.09

4 4

0.36 0.36

4 4

0.36 0.36

3 4

0.27 0.36

0.08

3

0.24

2

0.16

1

0.08

0.08 0.08

-

-

-

-

-

-

7. Hot Doughnuts sign encourages people outside the store to make un impulse purchase. WEAKNESSES 1. Return on equity assets and investments all negative; Skills of management is questionable. 2. Management states in struggling on how to make the store profitable. 3. Product line slow to expand with nothing draw in health concious customer. 4. Lack of advertisement in areas the where stores are located. 5. Single product focus; no other stand out product

0.07

4

0.28

3

0.21

3

0.21

0.10

3

0.30

2

0.20

2

0.20

0.08

3

0.24

2

0.16

3

0.24

0.04 0.03 0.04 0.04

2 2

0.06 0.08

2 1

0.06 0.04

2 2

0.06 0.08

6. Competing against Starbucks and Dunkin Donuts beverages. 7. Shareholders have not received dividends recently. Stock price in state flux. TOTAL

0.08 1.00

-

3.64

-

-3.12

-

2.91

4. Distinctive Company stores and Concentrate solely on building franchise via "hot shop" stores KEY FACTORS OPPORTUNITIES 1. Industry stock price are improving 2. Dunkin Donuts does not have hot doughnuts to sell. 3. Starbucks lacks a diversified and distinctive pastry line. 4. Asian love sweets and are open to trying foreign foods. 5. Families crave convenience because of busy lifestyles. 6. Many children loves sweet treats 7. South America, Africa and south Asia are markets to conquer THREATS 1. People are becoming more health conscious, which does not bode well for high-sugar, high-fat threats. 0.09 1 0.10 1 0.07 1 0.04 0.08 1 0.08 1 0.08 0.08 0.07 0.10 0.09

5. continue slow and steady growth of company store and franchise business.

Weights 0.04

AS

TAS

AS

TAS

4 0.05 3 0.11 0.06 1 0.09 0.04 0.07 4

0.16 0.24 0.06 0.28

4 3 1 2

0.16 0.24 0.06 0.14

1 1 1

0.09 0.10 0.07

2. Dunkin Donuts presently dominates the doughnut market domestically and internationally. 3. Starbucks has approximately 25 times the amount of stores worldwide that krispy kreme donut has. 4. Cultural differences among countries make operations and doughnut consumption varied, which makes things difficult to control 5. Lower price is offered by the other doughnut producing firms than that of Krispy Kreme donuts. 6. Shareholders may sell Krispy Kreme Donut stock for lack of returns and dividends compared to other similar firms in the industry.

1

0.08

1

0.08

7. Restricted Cash flow from banks and massive layoffs have stifled the world economy decreasing discretionary income.

0.05 1.00 -

STRENGTHS 1. High quality douhgnuts with strong visual and one of a kid taste 2. Krispy kreme has a unique brand and variety of freshly made doughnuts. 3. Krispy Kreme has a high capacity to make 4000-10000 doughnuts daily. 4. Krispy Kreme can offer customer to watch product being made at the doughnut theater. 5. Consistent Expansion; Exposure in 10 foreign countries with an on-going development of 200 additional stores in the Middle East, Hong Kong, Macau, Tokyo, the Philippines and Indonesia 6. Vertical integreation helps the quality of the product. 7. Hot Doughnuts sign encourages people outside the store to make un impulse purchase. WEAKNESSES 1. Return on equity assets and investments all negative; Skills of management is questionable. 2. Management states in struggling on how to make the store profitable. 3. Product line slow to expand with nothing draw in health concious customer. 4. Lack of advertisement in areas the where stores are located. 5. Single product focus; no other stand out product 6. Competing against Starbucks and Dunkin Donuts beverages. 7. Shareholders have not received dividends recently. Stock price in state flux. TOTAL

0.10 0.09 0.09 0.08

2 1 1

0.18 0.09 0.08

1 1 1

0.09 0.09 0.08

0.08 0.08 0.07

3

0.21

1

0.07

0.10 0.08 0.04 0.03 0.04 0.04 0.08 1

1 1 1 1 -

0.10 0.08 0.03 0.04 1.97

1 1 1 1 -

0.10 0.08 0.03 0.04 1.6