I.

Krispy Kreme Doughnuts – 2008

A. Time Context – Year 2008

B. Summary/Abstract

Krispy Kreme Doughnuts (KKD) was founded in 1937 and opened by Vernon Rudolph on the 13th of July
of the same year, in Winston-Salem, North Carolina. KKD started out by selling doughnuts to local
grocery stores. It began its retail service by selling doughnut directly to customers outside the bakery. By
1950s, the company trademarked the Krispy Kreme bowtie logo and mechanized the doughnut-making
process. Although a lot has changed, the company’s signature Original Glazed Doughnut stayed the
same. In 1973, Vernon Rudolph died but by this time, the company is already operating with 60 shops.
And by 1980s, the company opened its first retail-only store. The company became publicly-traded
company in April 2000. It encountered several problems in early 2000s including its involvement in
several lawsuits. It also became the target of a federal criminal inquiry. Because of these legal problems,
the stock price of the company fell. The company continued to report negative net income in 2007 and
2008.

The purpose of the study is to know the different factors that are affecting the company and to find the
best solution how to increase or improve the company particularly, its financial performance. The study
also provided solutions to problems which may arise after the selection a course of action to be taken.

After evaluating different areas of the company, including its strengths, weaknesses, threats, and
opportunities, and considering several courses of actions, the main problem found is the lack of
cohesive marketing structure that translates to decresing revenue. In conclusion, the company must
invest more on its marketing strategies to increase its sales, brighten its corporate image, and improve
market share.

III. Central Problem

Lack of cohesive marketing structure that translates to decreasing revenue