Implementation Plan Part 3 Continue Work With The Company ✓ Solved

Implementation Plan: Part 3. Continue work with the company

Implementation Plan: Part 3. Continue work with the company used in Units IV and VI. For Part 3, focus on internal and external issues, competition, future outlook for the organization, and implementation of tools for measuring business success. Use the Krispy Kreme case study in Strategic Management (16th ed., Fred R. David) and additional research as needed. Be creative for the future outlook. Include an introductory paragraph. Minimum three full pages.

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Introduction

This implementation plan (Part 3) continues the strategic analysis of Krispy Kreme Doughnuts, Inc. begun in earlier units. The focus here is on identifying the company’s internal and external issues, assessing its competitive landscape, projecting plausible futures for the brand, and specifying practical tools and metrics to measure implementation success. Recommendations are grounded in the Krispy Kreme case study (David, 2017) and recent industry and company data (Krispy Kreme, 2019; Statista, 2020).

Internal Issues

Krispy Kreme’s internal strengths include strong brand recognition and proprietary production processes (David, 2017). The “Hot Light” tradition and signature product quality are core capabilities that sustain customer loyalty (Krispy Kreme, 2019). Operationally, however, the firm faces challenges: franchise consistency, supply-chain coordination for fresh dough and perishable ingredients, and balancing company-owned versus franchised store governance (David, 2017). Organizational culture must also support rapid expansion without eroding product quality or customer experience (Keller, 2013).

Financially, Krispy Kreme has experienced cyclical profitability correlated with geographic expansion and capital investments. Managing capital allocation between international growth and domestic store modernization is an internal strategic tension requiring clearer prioritization and disciplined ROI thresholds (Krispy Kreme, 2019).

External Issues

Externally, consumer trends toward premium, on-the-go breakfast and indulgence categories favor Krispy Kreme, but health-conscious eating and sugar-reduction trends press the company to diversify offerings (Statista, 2020). Macroeconomic variables—disposable income, commodity price volatility for flour, sugar, and oil—affect margins. Supply chain disruptions (pandemics, logistics bottlenecks) present another external risk (McKinsey, 2020).

Regulatory and competitive pressures also shape strategy. Food safety standards, franchise regulation, and local zoning impact store rollout. Global markets introduce currency and cultural adaptation requirements for product assortments and marketing (IBISWorld, 2020).

Competition

Krispy Kreme competes with multi-channel players: Dunkin’ (beverages and on-the-go food), Starbucks (premium beverages and breakfast baked goods), regional bakeries, and increasingly fast-casual cafés and grocery private labels (Forbes, 2019). Competitors compete on price, convenience, menu breadth, and loyalty ecosystems. Dunkin’ and Starbucks have stronger beverage platforms, which drive higher-frequency visits; Krispy Kreme’s opportunity is to leverage distinctive product appeal and strengthen beverage pairings to increase visit frequency (Bloomberg, 2020).

New entrants and niche artisanal bakeries threaten premium-priced segments. To defend market share, Krispy Kreme must emphasize product authenticity, in-store experience (freshly made offering), and differentiated promotions—especially through digital loyalty and delivery partnerships (Nielsen, 2019).

Future Outlook and Strategic Pathways

Three plausible strategic pathways are recommended: 1) Balanced Omnichannel Expansion—prioritize digital ordering, delivery integration, and micro-fulfillment alongside selective retail expansion into high-traffic urban locations; 2) Product Diversification—develop lower-calorie and premium product lines (e.g., artisanal coffees and seasonal, limited-edition doughnuts) to appeal to broader segments; 3) International Market Intensification—use franchising with strict quality protocols to scale in markets with strong dessert culture (Asia, Middle East) (David, 2017; Statista, 2020).

A blended strategy—reinforce brand core (hot, fresh doughnuts) while expanding beverages and digital convenience—offers the best risk/return profile. Investments in sustainability (packaging, ingredient sourcing) will also meet consumer and regulatory expectations and support long-term brand equity (Euromonitor, 2020).

Implementation of Measurement Tools

To monitor progress, adopt a balanced scorecard tailored to Krispy Kreme’s priorities: Financial (same-store sales growth, gross margin, ROI on store openings), Customer (Net Promoter Score, customer frequency, digital app active users), Internal Processes (order fulfillment time, in-store product freshness metrics, franchise compliance rates), and Learning & Growth (training hours per employee, franchisee satisfaction) (Kaplan & Norton, 1996 cited in David, 2017).

Specific KPIs and tools:

  • Sales & Profitability: Same-store sales, average ticket, daily unit volumes, margin per product (Krispy Kreme 10-K reporting metrics).
  • Customer Experience: Net Promoter Score (NPS), Customer Satisfaction Index, and app retention/engagement metrics (Nielsen, 2019).
  • Operational Metrics: Time-to-service, waste percentage (per store), supply lead times, and franchise audit compliance scores.
  • Digital & Marketing: Conversion rates for digital promotions, delivery order share, loyalty program adoption rates, and cost-per-acquisition.
  • Sustainability Metrics: Packaging waste reduction, percentage of responsibly sourced ingredients.

Measurement implementation requires an integrated dashboard (cloud BI platform) with real-time feeds from POS, mobile app, and franchise audits. Quarterly strategy reviews combined with monthly KPI scorecards ensure timely adjustments (McKinsey, 2020).

Recommended Implementation Roadmap

Phase 1 (0–6 months): Deploy a pilot digital dashboard in 50 stores, standardize franchise quality audits, and launch a targeted beverage pairing campaign. Phase 2 (6–18 months): Roll out app enhancements, expand delivery partnerships, and introduce two health-conscious product SKUs. Phase 3 (18–36 months): Accelerate selective international franchising, implement sustainability initiatives, and scale successful pilots to broader markets. Assign a cross-functional implementation team led by a Chief Transformation Officer reporting to the CEO and a steering committee with franchisee representation.

Conclusion

Krispy Kreme’s core brand strength and product distinctiveness provide a solid platform for profitable growth, but success depends on disciplined execution across operations, digital capability, and franchise governance. Using the recommended KPIs and phased implementation, Krispy Kreme can strengthen market position, respond to competitive pressures, and pursue sustainable international expansion while protecting product quality and brand equity (David, 2017; Krispy Kreme, 2019).

References

  • David, F. R. (2017). Strategic Management: Concepts and Cases (16th ed.). Prentice Hall.
  • Krispy Kreme Doughnuts, Inc. (2019). Annual Report and Form 10-K. Krispy Kreme. https://investor.krispykreme.com
  • Statista. (2020). Krispy Kreme: Annual revenue and store count. Statista. https://www.statista.com
  • IBISWorld. (2020). Doughnut Shops in the US - Market Research Report. IBISWorld. https://www.ibisworld.com
  • Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Pearson.
  • Forbes. (2019). Krispy Kreme’s Comeback Strategy: Expansion and Brand Revitalization. Forbes. https://www.forbes.com
  • Bloomberg. (2020). Krispy Kreme Franchise Growth and Market Strategy. Bloomberg. https://www.bloomberg.com
  • McKinsey & Company. (2020). Retail operations and digital transformation in food service. McKinsey Insights. https://www.mckinsey.com
  • Nielsen. (2019). Consumer Trends in Quick-Service Restaurants and Digital Ordering. Nielsen Reports. https://www.nielsen.com
  • Euromonitor International. (2020). Global Hot Beverages and Confectionery Outlook. Euromonitor. https://www.euromonitor.com

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