Krispy Kreme Strategic Management Case

Krispy Kreme Strategic Management Case - Saint Leo...

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Unformatted text preview: Saint Leo University Strategic Management Case Study Krispy Kreme Donuts Prepared By LaKessica B. Carter Outline History Krispy Kreme is Americas favorite. It operates as a retailer and wholesaler of doughnuts and other sweets. The companys principal business is owning and franchising stores Krispy Kreme stores, at which over 20 varieties of doughnuts, including Original Glazed doughnuts, are sold and distributed together with complementary products, and where an array of coffees and beverages are offered . The company is also the provider of doughnut mixes, supplies, and ingredients to franchisees, as well as manufactures and sells doughnut-making equipment. Krispy Kreme operates thirty-seven stores in the United States and 358 shops world-wide. It has four segments of business: company stores, domestic franchise stores, international franchise stores and supply chains . According to the New York Stock Exchange data reported, in 2010 Krispy Kreme revenues increased by 4% to $270.3M. Net Income totaled $9.1M vs. a loss of $677K. The increase in revenue was due to Company Stores. It also reflects a decrease in their general & administrative expenses, lower depreciation & amortization expenses along with a decrease in impairment charges and lease termination costs . Krispy Kreme was founded by Vernon Rudolph, who purchased the famous secret recipe of yeast-raised doughnuts. Rudolph began selling the doughnuts in Paducah and sold them on his bicycle. The operations were started in Nashville, TN . The first store opened in the United States (Charlotte Pike) in 1933 and was named Krispy Kreme . Rudolph sold his interest in the Nashville store and opened a doughnut shop in 1938 beginning grocery store sales ....
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Krispy Kreme Strategic Management Case - Saint Leo...

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