Strategic Planning for Krispy Kreme Doughnuts (KKD)

Running head: STRATEGIC PLANNING
Strategic Planning
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Answer 1: SWOT Analysis of Krispy Kreme Doughnuts (KKD)
The organization Krispy Kreme Doughnuts (KKD) formed in 1937 by Vernon
Rudolph is one of the major doughnuts producing organizations of the United States of
America (Krispykreme.com, 2018). More importantly, the concerned organization has been
able to attain a significant amount of success through the hot doughnuts which it offers to the
domestic customers and also the customers from 23 different nations in which it is
operational (Krispykreme.com, 2018). Beske, Land and Seuring (2014) are of the viewpoint
that an analysis of business environment is important since it not only offers an insight into
the key competencies of an organization but also an idea about the opportunities and the
threats offered by the business market. A SWOT analysis of the organization is likely to
reveal insightful details about the threats and the opportunities that galore the organization-
Strength  The primary strength of the organization can be said to the strategy of
the organization to not only manufacture the doughnuts before the
customers but also to offer them hot ones.
 The focus of the organization on the interests of the customers is
another strength point of the concerned organization.
 The use of corporate social responsibility (CSR) activities by the
organization like helping the local communities of USA during fund-
raisers and others is yet another strength point of the organization
which has helped it to attain success in the recent times.
 The use of innovative strategies like lighting up the boards of the
stores during the peak hours of business and others has also helped the
cause of the organization in a substantial manner.
Weakness  The lack of effective mission and vision statements is a major

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weakness of the organization.
 The absence of some important officials like Chief Operating Officer,
Chief Administrative Officer or Chief Strategy Officer is yet another
weakness of the company.
 The sole focus of the organization on the doughnuts business in a
highly competitive doughnuts business market of USA wherein other
organizations are resorting to the use of the coffee and beverage
business for the enhancement of their profit is another weakness of the
organization.
Opportunity  The organization in order to enhance the prospects of their business
can offer a wide range kind of products to the customers like coffee
beverages and others.
 The current focus of the organization is on the wholesale business
rather than on the retail business. Thus, it is likely that the
organization would be able to gain in a substantial manner by
resorting to the use of the model of retail business.
 Acquisition of rival companies like Jollibee Foods Corps is another
option or opportunity that the organization can utilize for the growth
of its business.
 Making the menu or the food products offered by the organization
more healthy and nutritious is another option which the concerned
organization can utilize.
Threats  The major threat which the concerned organization is facing currently
is from the competitors like Dunkin’s Brand, Tim Hortons, Starbucks
and others which have already monopolized the business market of

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USA.
 The increasing awareness of the customers regarding their health and
the kind of food products that they consume is another factor which is
adversely affecting the prospects of the organization.
Answer 2: Porter’s Five Forces Analysis of KKD
McCormack and Johnson (2016) are of the viewpoint that the business enterprises
need to have an idea about the kind of market competition that they are facing in the business
market of a particular nation which is likely to offer them an insight about the strategies they
need to use. In this regard, Porter’s Five Forces model is an important one since it offers
insightful information regarding the competition faced by an organization (Dodgson, 2018).
An analysis of the organization KKD on the basis of this model would reveal the following
facts-
Threat from new entrants The organization KKD had been in business for more than
80 years and the quality of the doughnuts offered by the
organization is being much appreciated by the customers
(Krispykreme.com, 2018). As a matter of fact, despite the
high competition that the organization is facing in the
business market of USA, the annual revenue growth of the
organization for the year 2013 was more than 6%. In
addition to this, the organization has been able to gain a
substantial amount of success in its coffee and other
ventures which it has recently started to enhance it
customer base. On the score of these factors, it can be said