Reference no: EM131068111
1. What are the chief elements of Krispy Kreme's strategy? What evidence is there to indicate that the strategy is or is not working as well as it might?
2. How does Krispy Kreme's strategy connect to its business model? Are they well-matched?
3. What is your assessment of Krispy Kreme's financial performance? Is it really as good as it looks on the surface? Why or why not? What is the most profitable part of the business? Do you agree with the statement at the beginning of the case that "the numbers just don't work?"
4. What does a SWOT analysis reveal about the company's overall situation?
5. What is your assessment of Krispy Kreme's competitive strengths and weaknesses in comparison with key rivals? Please use the methodology in Table 4.4 on p. 142 of Chapter 4 in arriving at your answer.
6. On the basis of your assessment above, what do you think of Krispy Kreme's growth prospects? Just how good are they? What evidence supports your answer? What size growth rates in revenues and earnings do you believe Krispy Kreme can achieve over the next five years? What will have to happen for Krispy Kreme to realize its target of 25% growth in earnings when the revenue growth target is only 20%?
7. What major issues do you think that Krispy Kreme management needs to address?
8. What recommendations would you make to Krispy Kreme management to improve upon the strategy or otherwise sustain the company's growth and profitability?
9. Would you buy this company's stock? Why or why not? What size price-earnings ratio makes sense for a company with Krispy Kreme's potential? If 70 times earnings is too big, as some analysts claim, what p-e multiple does make sense? (Some financial analysts believe that the p-e ratio should be roughly equal to the growth in earnings per share-this is a popular metric that securities analysts use to gauge whether a company's stock price is overvalued or undervalued or reflective of "fair value.")
Attachment:- krispy - case.pdf
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