Name: Neelam Lokwani Madonna I’d: 236488 Course: Business Policy Dae: !"#!4#2"!$ %irs Case &nalysis Case !2: 'ris(y 'reme Dou)*nus Inroducion 'ris(y 'reme Dou)*nus is a )lo+al c*ain o, dou)*nus- co,,ee- sundaes and s*akes *a was ,ounded +y .ernon .ernon /udol(* in 0inon1alem0inon1alem- in *e year !35 .ernon /udol(* *ad +ou)* a yeas1raised dou)*nu reci(e *rou)* Is*mael &rmsron)- *is uncle +y a New 7rleans %renc* C*e, Is*mael knew and .ernon ernon +e)an sellin) dou)*nus o )rocery sores *e ,irs (roduc sold +y .er .ernon non was *e *o 7ri)inal 9laed Dou)*nus o cusomers on *e sidewalk *e ,irs 'ris(y 'reme lo)o was desi)ned +y Benny Dinkins- a local arc*iec *e ,irs 'ris(y 'reme +akery ouside *e ou* o(ened in &kron- 7*io in 7*io in !3 ;*(s:##enwiki(ediaor)#wiki#'ris(y<'reme *(s:##enwiki(ediaor)#wiki#'ris(y<'reme= = In *e !4"s- dou)*nus were sold on a dis(lay case s*owin) a >ariey o, dou)*nus o c*oose ,rom- *e 7ri)inal 9laed dou)*nu was a si)naure dou)*nu d ou)*nu o, 'ris(y 'reme wi* no c*an)e in *e ase in *e (as or now In *e !$"s 'ris(y 'reme e?(anded wi* *e o(enin) o, new sores in *e and in !$$'ris(y 'reme *ad a rademarked lo)o *e com(any co m(any also +e)an ,undraisin) ,or c*urc*es-
sc*ools and o*er or)aniaions *e com(any o(ened a uni dedicaed ,or manu,acurin) and disri+uion w*ic* +y *e !6"s enered ino auomaion *a led o *e ,ocus on (lannin) and imin) o, *e dou)*nus (roducion In *e year !53- /udol(* died and +y *en 'ris(y 'reme *ad 6" c*ain sores Laer in !56'ris(y 'reme was ac@uired +y Bearice %oods Com(any in C*ica)o Bearice %oods was a well1 reco)nied +ack *en and )ained ,ranc*isees ,or 'ris(y 'reme in !82 and in !8 *e ,irs reail sore o, 'ris(y 'reme was o(ened In *e !"s- 'ris(y 'reme ra(idly e?(anded wi* o(enin) is sores in New Aork and Cali,ornia- a,er w*ic* *ey decided o )o )lo+al +y o(enin) is ,irs sore ouside *e in Canada in *e year 2""! %ur*er ac*ie>emens o, 'ris(y 'reme dou)*nus were: *e si)naure 'ris(y 'reme Co,,ee in 2"!!- launc* o, *e *o li)* a((licaion on mo+ile (*ones- $""* inernaional sore o(enin) in 2"!2- 5$ years o, e?isence o, *e com(any and also ony *om(son was a((oined as *e Presiden and C7 o, 'ris(y 'reme in *e year 2"!4 oday 'ris(y 'reme no only o(eraes as c*ain sores +u also in me)a1c*ains like 0almarar)e and maor )as saions ?isin) Mission aemen: 7ur mission is o ouc* and en*ance li>es *rou)* *e oy *a is 'ris(y 'reme ?isin) .ision aemen: 7ur >ision is o +e *e worldwide leader in s*arin) delicious ases and creain) oy,ul memories
'ris(y 'reme’s rae)ies 7+eci>es:
•
o increase *e num+er o, com(any sores worldwide o (roduce and o,,er *eal*y dou)*nus o 'ris(y 'reme cusomers o increase *e com(any sock (rice in order o *a>e *i)*er s*are*older >alue o increase sales s(eci,ically in *e dou)*nus secion o iniiae di,,eren y(es o, markein) srae)ies ,or +rand reco)niion and in>esmen
•
srae)ies ,or on1sore and o,,1sore o(eraions o realie new ac*ie>a+le and ori)inal sandards ,or u(comin) ,ranc*isers
• • • •
/e>ised Mission aemen: Eo deli>er *e +es @ualiy dou)*nus and co,,ee o is cusomers +y inno>ain) and )i>in) ousandin) ser>ice in an e?ciin) sore amos(*ereF /e>ised .ision aemen: Eo +e *e mos lo>ed and res(eced dou)*nu and co,,ee com(any inernaionallyF ?ernal 7((oruniies o, 'ris(y 'reme Dou)*nus:
• • •
• • • •
Inno>ain) is (roducion line in *e cae)ory o, *o dou)*nus Increasin) sores a air(ors and (erol (um(s in ,orei)n counries Di>ersi,yin) is (roduc line in >arious cae)ories- ie- ice1creams- ice1cream cakes and +reak,as meals ?(and domesically Increase in co,,ee consum(ion Im(ro>emen in auomaed o(eraions In>ol>emen in social media markein)
?ernal *reas o, 'ris(y 'reme Dou)*nus:
•
Geal* conscious cusomers Many com(eiors ,or e?am(le- Dunkin Donus- McDonald’s and im Goron’s C*an)in) ases and (re,erences o, cusomers- more (re,erence owards or)anic markes
•
due o lon) erm *eal* issues like o+esiy and dia+ees Local dou)*nu +rand com(eiors
• •
Com(eii>e Pro,ile Mari? ;CPM=:
Criical uccess %acors Produc Hualiy
0ei)*
Dunkin Donus /ain core
McDonald’s /ain) core
im Goron’s /ain) core
"!"
) 3
"3"
3
"3"
4
"4"
Produc Di>ersiy
""8
2
"!6
4
"24
2
"!6
&d>erisin) Price Cusomer Loyaly %inancial aus 9lo+al ?(ansion ales Marke *are oal
""3 "!" ""8 ""$ "!3 "!! "!$ !
4 4 3 2 4 3 2
"!2 "4" "24 "!" "$2 "33 "3" 245
4 3 3 4 4 3 3
"!2 "3" "24 "2" "$2 "33 "4$ 25
! 2 4 3 4 4 4
""3 "2" "24 "!$ "$2 "44 "6" 254
?ernal %acor >aluaion ;%= Mari?: 'ey ?ernal %acors 7((oruniies ! &sians *a>e a swee oo* ,or 0esern +rands 2 C*ildren like swee reas 3 ar+ucks is more concenraed on co,,ee *an
0ei)* ""6 "" ""$
/ain) 3 4 3
0ei)*ed core "24 "36 "!$
+akery iems 4 Dunkin’ Donus don’ sell *o )laed
""4
4
"4"
dou)*nus $ McDonald’s is more concenraed on co,,ee
""8
3
"24
and s*akes *an dou)*nus
6 im Goron’s are ye o e?(and )lo+ally
"!!
3
"33
'ey ?ernal %acors *reas 5 Dou)*nu marke dominaed +y Dunkin’
0ei)* "!4
/ain) 4
0ei)*ed core "$6
Donus 8 Geal* conscious cusomers 'ris(y 'reme *as less sores com(ared o
"!" "!"
3 2
"3" "2"
ar+ucks and Dunkin’ Donus !" uro(ean culure (re,er local +rands !! uro(ean ,ollow cerain ei@uees !2 Due o lack o, reurns and di>idends-
"" ""6 ""8
2 2 !
"!8 "!2 ""8
s*are*olders *ad o sell ''D socks oal
!
Inernal ren)*s o, 'ris(y 'reme Dou)*nus:
• • • • • • •
i)naure ori)inal *o )laed dou)*nus Brand reco)niion Produces @ualiy (roducs ?isin) worldwide wi* 3$ sores locaions old a me)a1c*ains like 0almar and ar)e and also a )as saions ells 2" >arieies o, dou)*nus- o*er +akery iems and co,,ee &,,orda+le (rice
Inernal 0eaknesses o, 'ris(y 'reme Dou)*nus:
• • • • • • • •
Lack o, reurns and di>idends o s*are*olders due o reducion in sock (rice Dou)*nus are considered *i)*1calorie and un*eal*y No muc* ,ocus on ad>erisin) cam(ai)ns ron) com(eiors are Dunkin’ Donus and ar+ucks Limied (roduc line Poor com(any mana)emen *e com(any *as ,aced down,all in re>enues and loss in *e (as 3 years Con,lics wi* ,ranc*isees
3!6
Inernal %acor >aluaion ;I%= Mari?: 'ey Inernal %acors ren)*s ! &,,orda+le (rice and sandard @ualiy
0ei)* ""
/ain) 4
0ei)*ed core "36
2 Cusomers are o, all a)es and incomes 3 &racin) cusomers wi* *e EGo
""8 ""5
4 3
"24 "2!
Dou)*nus NowF si)n +oard 4 9lo+ally e?(andin)J recenly in !6 ,orei)n
"!"
3
"3"
counries $ Produc con>enienly a>aila+le a me)a1
""
2
"!8
c*ains and )as saions 6 .erically ine)raed (roducs
""8
2
"!6
0ei)* "!" ""5
/ain) 2 2
0ei)*ed core "2" "!4
Lack o, ad>erisin)
""5
!
""5
!" Closure o, ,ranc*isees due o con,lics !! Dou)*nus are considered *i)*1calorie and
""6 ""8
! !
""6 ""8
un*eal*y !2 Down,all in re>enues and loss in *e (as 3
""6
2
"!2
years !3 Poor com(any mana)emen oal
""$ !
2
"!" 222
'ey Inernal %acors 0eaknesses 5 Lack o, reurns o s*are*olders 8 Lack o, di>idends o s*are*olders
ren)*s10eaknesses17((oruniies1*reas ;07= Mari?:
! 2 3 4 $ 6 5
ren)*s Brand reco)niion Produces @ualiy (roducs ells 2" >arieies o, dou)*nus- o*er +akery iems and co,,ee old a me)a1c*ains like 0almar and ar)e and also a )as saions ?isin) worldwide wi* 3$ sores locaions &,,orda+le (rice i)naure ori)inal *o )laed dou)*nus
! 2 3
4 $ 6 5 8
7((oruniies ! Inno>ain) is (roducion line in *e cae)ory o, *o dou)*nus 2 Increasin) sores a air(ors and (erol (um(s in ,orei)n counries 3 Di>ersi,yin) is (roduc line in >arious cae)ories- ie- ice1 creams- ice1cream cakes and +reak,as meals 4 ?(and domesically $ Increase in co,,ee consum(ion 6 Im(ro>emen in auomaed o(eraions 5 In>ol>emen in social media markein)
0eaknesses Dou)*nus are considered *i)*1calorie and un*eal*y *e com(any *as ,aced down,all in re>enues and loss in *e (as 3 years Lack o, reurns and di>idends o s*are*olders due o reducion in sock (rice No muc* ,ocus on ad>erisin) cam(ai)ns ron) com(eiors are Dunkin’ Donus and ar+ucks Con,lics wi* ,ranc*isees Limied (roduc line Poor com(any mana)emen
7 rae)ies 07 rae)ies ! Do markein) on social ! Producin) and media a+ou *eir 2"
inno>ain) *eal*y
di,,eren >arieies o,
dou)*nus made o,
dou)*nus ;3- 75= 2 ?(and ,ur*er domesically a(ar ,rom *e 3$ sores world wide ;$- 74= 3 Inno>ae is dou)*nu and co,,ee ran)e +y coninuin) o o,,er on a,,orda+le (rices ;67!= 4 9e more cusomers
,ruis- nus- (roeins and ,rui smoo*ies ;0!- 7!= 2 9ain (ro,is +y e?(andin) domesically and )lo+ally ;02- 74= 3 Increasin) (roduc line +y di>ersi,yin) ;0573= 4 /esol>e dis(ues wi*
,or co,,ee consum(ion
,ranc*isees +y
+y o,,erin) a
im(ro>in) is
con>enience sores and
o(eraions ;06- 76= $ Do a))ressi>e
me)a1c*ains ;4- 7$= $ Due o reco)niion in *e marke- *ey can di>ersi,y *eir (roduc
ad>erisin) in order o com(ee wi* Dunkin’ Donus and ar+ucks ;0$- 75=
line ;!- 73=
! 2
3
4
*reas Geal* conscious cusomers Many com(eiors ,or e?am(le- Dunkin Donus- McDonald’s and im Goron’s C*an)in) ases and (re,erences o, cusomers- more (re,erence owards or)anic markes due o lon) erm *eal* issues like o+esiy and dia+ees Local dou)*nu +rand com(eiors
rae)ies ! Com(arin) wi*
0 rae)ies ! Inroduce *eal*ier and
com(eiors wi* *e
low1calorie (roduc
si)naure *o )laed
line in order o kee( u(
dou)*nus and *eir
wi* c*an)in)
cold dou)*nus ;5-
(re,erences o,
2= 2 Pro>idin) +eer @ualiy (roducs com(ared o local +rands in *e counry ;2- 4=
cusomers ;0!- 3=
rae)ic Posiion and &cion >aluaion ;P&C= Mari?: %inancial Posiion ;%P= /eurn on in>esmen Pro,i
/ain) 2 !
Ne Income
3
Le>era)e Cas* ,low &>era)e
3 2 22
Com(eii>e Posiion ;CP= Marke s*are
/ain) 16
Produc @ualiy ec*nolo)ical know1*ow Consumer loyaly &>era)e
1! 13 14 13$
a+iliy Posiion ;P= Produc @ualiy Demand >aria+iliy Com(eii>e (ressure /isk in>ol>ed in +usiness Barriers o enry ino marke &>era)e A1a?is Indusry Posiion ;IP= 9row* (oenial Pro,i (oenial %inancial sa+iliy ase o, enry ino marke &>era)e K1a?is
Direcional .ecor Coordinaes: y1a?is 1!- ?1a?is 1!$
/ain) 1! 12 13 1$ 1$ 132 1! /ain) 3 ! 2 2 2 1!$
5 6 $ 4 3 2 ! " -1.20
1! 12 13 14 1$ 16 15
'ris(y 'reme Dou)*nus s*ould ,ollow a De,ensi>e srae)y as a resul o, *e P&C Mari? *e srae)ies *ey s*ould ,ollow are:
• • •
•
o inroduce *eal*ier and low1calorie o(ions o *eir menu Inno>ae and di>ersi,y (roduc line 9ain +ack *e con,idence o, s*are*olders +y s*owcasin) *e com(any’s rue (oenial and sren)* o )row in suc* a com(eii>e marke ar usin) u(daed ec*nolo)y ,or (roducion Boson Consulin) 9rou( ;BC9= Mari?:
BCG Matrix - KKD 15% 10% 5%
0.16
0.15
0.14
0.13
0.12
0.11
0% 0.1 -5% -10% -15% -20%
rae)ies and lon)1erm o+eci>es: ! ''D s*ould indul)e in markein) and ad>erisin) cam(ai)ns in order o arac cusomers owards *eir si)naure (roduc line o, *o )laed dou)*nus w*ic* *ey are well known ,or 2 *e com(any s*ould ,ocus on e?(ansion in *e +ecause o, reco)niion and resol>e dis(ues amon) ,ranc*isees and *ey can +e)in *eir ,ranc*isin) a)ain 3 ocial media is a sron) way o ac*ie>e cusomers mainly *e eens and youn) crowd *e +rand s*ould (ro>ide discouns and (romoions *rou)* *e inerne 4 &s ''D is a well reco)nied +rand worldwide- *e com(any can in>ol>e in relaed (roduc di>ersi,icaion +y inroducin) ice1creams- cakes- *eal*y o(ions like ,rui smoo*ies- ec $ %ur*er *e com(any can also o( marke de>elo(men and (roduc de>elo(men srae)ies in order o ac*ie>e marke )row* and inno>ae a >ariey o, (roducs o o,,er o is cusomers
0.09
6 0*en ,ranc*isin)- *e com(any can e>aluae i’s o +e ,ranc*isees +y knowin) w*e*er *ey *a>e +een an e?(erience under ,ood esa+lis*mens or ,ranc*ised ,ood c*ains 5 Increase *e com(any’s sren)*s in order o (resen *e com(any’s (oenial o +e a (ar o, *e sock marke and )ain +ack *e con,idence o, is s*are*olders 8 o use *e >erical ine)raion arran)emen o, su((ly c*ains in order o *el( caer o *e needs o, *e *eal* conscious (eo(le as well leadin) o an increase in (ro,is and sales o de>elo( culure oriened (roducs in order o arac cusomers o, all a)es and incomes- ,or e?am(le- McDonald’s *e +rand *as cusomied is (roducs de(endin) on *e culure ,rom counry o counry !" e>eral o*er recommendaions would +e re1desi)ned o, (acka)in) maerialsinno>aion in e?isin) (roducs- includin) dou)*nus ,or *e ,esi>e or a (aricular *eme +ased
rae)ies (lanned +y 'ris(y 'reme: &ll sores are re@uired o *a>e a s(eci,ic (oin o, sale ;P7= sysem In addiion o (ro>idin) *e a+iliy o mana)e on1(remises sales- *e P7 sysem (ro>ides *ead@uarers and (ermis sores o communicae wi* eac* o*er 'ris(y 'reme also *as an ener(rise resource (lannin) ;/P= sysem *a su((ors +o* *e ,inancial and o(erain) needs o, *e or)aniaion m+edded wi*in *e /P sysem is a daa ware*ouse *a also su((ors *e Com(any ores and '' u((ly C*ain o ensure *i)* @ualiy- *e ,ollowin) *as +een insiued:
!
o ensure ,res*ness- ruckloads o, *e main in)rediens are recei>ed on a re)ular +asis
2
ac* incomin) s*i(men o, in)rediens is esed
3
ac* +ac* o, mi? is esed
4
'ris(y 'reme also (roduces *e (rimary dou)*nu1makin) e@ui(men %ranc*isees are re@uired o use suc* e@ui(men ;%red Da>id- rae)ic Mana)emen Conce(s and Cases- !3* diion=
Im(lemenaion o, recommended srae)ies:
! ores can +e ra(idly e?(anded +y o(enin) *em in con>enien areas w*ere mos o, *e crowd is ,ound ie- malls- air(ors- (erol (um(s- ec 2 C*oosin) a well e?(erienced candidae ,or ,ranc*isin) 3 Because o, *e +rand reco)niion- ''D can iniiae ad>erisin) cam(ai)ns on *e social media- .- radio and news(a(ers 4 Producin) *eme +ased or ,esi>e season dou)*nus and c*an)in) *e (acka)in) a,er e>ery ,ew mon*s $ ellin) *eir dou)*nus a *e me)a1c*ains worldwide would +e a )ood o((oruniy o e?(and- ,or e?am(le- 0almar- Carre,our- 0airose- ec
%7/C&D B&L&NC G %7/ G A&/ 2"!6- 2"!5 %e+ruary !-
%e+ruary 2-
2"!5
2"!6 ;In *ousands=
& C//N &:
Cas* and cas* e@ui>alens
6$-""
$3-""
/ecei>a+les
2-4
26-4$"
/ecei>a+les ,rom e@uiy me*od ,ranc*isees
8
84"
In>enories
2"-264
!8-$$"
De,erred income a?es
24-$4$
24-$""
7*er curren asses
5-2!"
6-33"
<<<<<<<<<<<<<<< oal curren asses
<<<<<<<<<<<<<<<<
!48-4"5
!3"-$5"
Pro(ery and e@ui(men
!24-8""
!"3-2""
In>esmens in e@uiy me*od ,ranc*isees
1
1
9oodwill and o*er inan)i+le asses
33-"""
28-!$6
De,erred income a?es
68-"""
5-6""
7*er asses
!2-8""
!2-42$
<<<<<<<<<<<<<<<< oal asses
238-6"" <<<<<<<<<<<<<<<< LI&BILII &ND G&/G7LD/’ HIA
<<<<<<<<<<<<<<<<<< 223-38! <<<<<<<<<<<<<<<<<<
C//N LI&BILII: Curren (orion o, lease o+li)aions
4"!
388
&ccouns (aya+le
!6-"""
!6-4$"
&ccrued lia+iliies
3"-3""
28-423
<<<<<<<<<<<<<<<<<<
<<<<<<<<<<<<<<<<<<
oal curren lia+iliies
46-5"!
4$-26!
Lease o+li)aions- less curren (orion
-4$
3-""
7*er lon)1erm o+li)aions and de,erred credis
22-6""
22-$""
Commimens and conin)encies G&/G7LD/’ HIA: Pre,erred sock- no (ar >alueJ !"-""" s*ares au*oriedJ none issued and ousandin) 1
1
Common sock- no (ar >alueJ
34"-""
33-4""
&ccumulaed o*er com(re*ensi>e income
1
1
&ccumulaed de,ici
;3-8""=
;6-"""=
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< oal s*are*olders’ e@uiy
38"-346
342-"6!
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
oal lia+iliies and s*are*olders’ e@uiy
363-$""
342-"6!
/e,erences:
e?+ook re,erence: rae)ic Mana)emen Conce(s and Cases- !3* diion +y %red / Da>id 0e+sie re,erence:
*(:##d!l)e8$2@owcloud,ronne#CI'1"""!!""25"#5!82d+6"1a$6d143d1$5a1 8ded83!2"c+$(d, *(:##wwwnasda@com#sym+ol#kkd#,inancials@ueryincome1saemen *(:##wwwwikiweal*com#swo1analysis:kkd
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