Phalen said the chain still had tremendous potential for growth. The company has stated that it has done nothing wrong. Remember me on this computer. Reduced labor costs 5. When the company gave its first-ever profits warning in May, it blamed the low-carb craze for hurting sales. By gidel san pedro. Soon afterward, in , the first store in California opened and national expansion was well underway.

Low cash flow 4. Reduced labor costs 5. Sales Promotion – In order to cover the loss, Krispy Kreme should make an extra effort in selling their products. Alternative Courses of Action Krispy Kreme Doughnuts is one of the leading companies when it comes to doughnuts and coffee. Vernon Rudolph bought a secret yeast-raised doughnut recipe from a New Orleans French chef, rented a building in what is now historic Old Salem in Winston- Salem, North Carolina and began selling Krispy Kreme doughnuts on July 13, to local grocery stores.

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Krispy Kreme Swot Analysis

Conclusion and Recommendation Issues with their financial management systems which have resulted in unclear and unauditable financial reports, have dealt a major blow to investor confidence, which only compounds the financial problems with which the company is dealing. During the s, Krispy Kreme enjoyed steady growth throughout the Southeast and began expanding outside its traditional roots. Because much of the outlay pays for property, plant, and equipment, most food chains amortize this cost over several years.


They just need to work hard for it and keep their name on top. KKD investors have plenty to chew on these days, and it’s giving them indigestion rather than a pleasant sugar surge. Fixing its business back home — and not borrowing to expand — may be the wisest move if Krispy Kreme wants to reassure its nervous investors.

krispy kreme case study swot analysis

Questions about accounting started to hit Krispy Kreme as its growth appeared to stall. Rising gasoline prices 3. From the s on, they focused on improving and czse the doughnut-making process. Expand to new markets 3. Krispy Kreme didn’t disclose that one of the owners of a Northern California franchise it bought earlier this year was Livengood’s ex-wife. Krispy Kreme Case Study.

krispy kreme case study swot analysis

Our international expansion is continuing and in addition, we are working on new tasty products. Government provides monetary assistance 8. Assumptions also continue to be made about supply chain and other company operating methods.

Swot analysis krispy kreme – Krispy kreme doughtnuts (kkd)

Increasing rates of interest 7. Krispy Kreme has been fighting back. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one of the most rapidly growing American corporations in the new millennium.


Krispy Kreme’s reported earnings are higher than they would have been had it written them off. Health conscious market VI. Competition – Krispy Kreme, as a brand, is so strong that could help them maintain their position in the market.

The delicious scent of cooking doughnuts drifted into the streets, and passers-by stopped to ask if they could buy hot doughnuts. For Rudolph and Krispy Kreme, the results were always good but not consistent enough.

Rising cost of raw materials 9. Expanded too fast 4. We are confident in our practices. A renewed focus on the hot doughnut experience became a priority for the company.

Krispy Kreme SWOT Analysis: Strengths, Weaknesses

Increase in labor costs 5. We are very excited about our future.

Too many taxes 7. The design of Krispy Kreme stores became consistent including the hallmark green tile roofs and heritage road signs. Improving the doughnut making process through innovations. The company has stated that it has done nothing wrong.