Krispy Kreme Doughnuts: Quantitative Strategic Plannning Matrix (QSPM)

1. Market Penetration focusing 2. Product development in the 3. Related diversification

on increase market share US market also focusing on adding new products
through graeter marketing internationally, creating a such as sandwiches,beverages,
effort and opening of satellite healthier doughnut line. bagels and etc.
stores in current geographiccal
areas
   
 
 
KEY FACTORS      
OPPORTUNITIES Weights AS TAS AS TAS AS TAS

1. Industry stock price are improving 0.04

 4 0.16 4 0.16  4 0.16 
2. Dunkin Donuts does not have hot 0.05
doughnuts to sell.  4  0.32  4  0.32  3 0.24
3. Starbucks lacks a diversified and 0.11
distinctive pastry line.  -  - - -  - -
4. Asian love sweets and are open to 0.06
trying foreign foods.  3 0.18 2 0.12 2 0.12 
5. Families crave convenience because 0.09
of busy lifestyles. - - - -  - - 
6. Many children loves sweet treats 0.04 1 - - - - -

7. South America, Africa and south Asia 0.07

are markets to conquer 3 0.21 3  0.21  4 0.28 
THREATS
1. People are becoming more health
conscious, which does not bode well
for high-sugar, high-fat threats.
0.09
 1 0.09  2  0.18  2  0.18
2. Dunkin Donuts presently dominates
the doughnut market domestically
0.10
and internationally.  3  0.30  2  0.20  2  0.20
3. Starbucks has approximately 25
times the amount of stores
worldwide that krispy kreme donut
0.07
has.  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
0.04
 -  -  -  -  -  -
5. Lower price is offered by the other
doughnut producing firms than that
0.08
of Krispy Kreme donuts.  2  0.16  2  0.16  1  0.08
6. Shareholders may sell Krispy Kreme
Donut stock for lack of returns and
dividends compared to other similar
firms in the industry.
0.08
 2 0.16  1  0.08  1  0.08
7. Restricted Cash flow from banks and
massive layoffs have stifled the
world economy decreasing
0.05
discretionary income.  -  -  - -   -  -
1.00

STRENGTHS
1.    High quality douhgnuts with strong
visual and “one of a kid taste” 0.10  - - - -  - - 
2.     Krispy kreme has a unique brand
and variety of freshly made
doughnuts. 0.09  4  0.36  4  0.36  3 0.27
3.     Krispy Kreme has a high capacity to
make 4000-10000 doughnuts daily. 0.09  4  0.36 4 0.36  4 0.36
4.    Krispy Kreme can offer customer to
watch product being made at the
doughnut theater. 0.08  3 0.24 2 0.16 1 0.08 
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  0.08 - - - -  - - 
6.     Vertical integreation helps the
quality of the product. 0.08  - -  -  -   -  -
 7.    Hot Doughnuts sign encourages
people outside the store to make un
impulse purchase.  0.07 4 0.28 3  0.21  3 0.21 
WEAKNESSES
1. Return on equity assets and
investments all negative; Skills of
management is questionable. 0.10  3 0.30  2  0.20  2  0.20
2. Management states in struggling on
how to make the store profitable.
0.08  3  0.24  2  0.16  3  0.24
3. Product line slow to expand with
nothing draw in health concious
customer. 0.04  -  -  -  -  -  -
4. Lack of advertisement in areas the
where stores are located. 0.03  2  0.06  2  0.06  2  0.06
5. Single product focus; no other stand
out product 0.04  -  -  -  -  -  -
6. Competing against Starbucks and
Dunkin Donuts beverages. 0.04  2  0.08  1  0.04  2  0.08
7. Shareholders have not received
dividends recently. Stock price in
state flux. 0.08  -  -  - - -  -  -
TOTAL 1.00    3.64    3.12    2.91
 4. Distinctive Company stores 5. continue slow and steady
and growth of company store and
Concentrate solely on building franchise business.
franchise
via "hot shop" stores
   
KEY FACTORS  
OPPORTUNITIES Weights  AS TAS AS TAS

1. Industry stock price are improving 0.04

4 0.16 4 0.16
2. Dunkin Donuts does not have hot doughnuts to sell. 0.05
3 0.24 3 0.24
3. Starbucks lacks a diversified and distinctive pastry line. 0.11
- - - -
4. Asian love sweets and are open to trying foreign foods. 0.06
1 0.06 1 0.06
5. Families crave convenience because of busy lifestyles. 0.09
- - - -
6. Many children loves sweet treats 0.04
- - - -
7. South America, Africa and south Asia are markets to 0.07
conquer 4 0.28 2 0.14
THREATS

1. People are becoming more health conscious, which does

0.09
not bode well for high-sugar, high-fat threats. 1 0.09 1 0.09
2. Dunkin Donuts presently dominates the doughnut market 0.10
domestically and internationally. 1 0.10 1 0.10
3. Starbucks has approximately 25 times the amount of 0.07
stores worldwide that krispy kreme donut has. 1 0.07 1 0.07
4. Cultural differences among countries make operations and
doughnut consumption varied, which makes things difficult
0.04
to control - - - -
5. Lower price is offered by the other doughnut producing 0.08
firms than that of Krispy Kreme donuts. 1 0.08 1 0.08
6. Shareholders may sell Krispy Kreme Donut stock for lack of
returns and dividends compared to other similar firms in
0.08
the industry. 1 0.08 1 0.08
7. Restricted Cash flow from banks and massive layoffs have
stifled the world economy decreasing discretionary
0.05
income. - - - -
1.00

STRENGTHS
 1.    High quality douhgnuts with strong visual and “one of a kid
taste” 0.10 - - - -
2.    Krispy kreme has a unique brand and variety of freshly
made doughnuts. 0.09 2 0.18 1 0.09
3.     Krispy Kreme has a high capacity to make 4000-10000
doughnuts daily. 0.09 1 0.09 1 0.09
4.    Krispy Kreme can offer customer to watch product being
made at the doughnut theater. 0.08 1 0.08 1 0.08
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  0.08 - - - -
6.    Vertical integreation helps the quality of the product.
0.08  - - - -
7.    Hot Doughnuts sign encourages people outside the store
to make un impulse purchase.  0.07 3 0.21 1 0.07

WEAKNESSES
1. Return on equity assets and investments all negative; Skills
of management is questionable. 0.10 1 0.10 1 0.10
2. Management states in struggling on how to make the
store profitable. 0.08 1 0.08 1 0.08
3. Product line slow to expand with nothing draw in health
concious customer. 0.04 - - - -
4. Lack of advertisement in areas the where stores are
located. 0.03 1 0.03 1 0.03
5. Single product focus; no other stand out product
0.04 - - - -
6. Competing against Starbucks and Dunkin Donuts
beverages. 0.04 1 0.04 1 0.04
7. Shareholders have not received dividends recently. Stock
price in state flux. 0.08 - - - -

TOTAL 1 1.97 1.6