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What were contributing factors to this decision

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Reference no: EM132414911

Krispy Kreme Donuts first rolled into Canada in 2001 amid tremendous fanfare, selling $70,000 worth of donuts on its opening day in its Mississauga store on Mavis Road. It eventually had 18 stores in Canada, including one in Kitchener. By 2005, all but six of these stores were closed. Currently, there are only three stores in all of Canada.

Now, Krispy Kreme plans a major comeback into Canada, aiming to open up to 50 stores

  1. Explain if the decision to close down most Krispy Kreme locations in 2005 was a short run or long run decision? What were contributing factors to this decision? Was the cost of this decision large or small?
  2. Is the decision to re-enter the Canadian market again with a targeted 50 stores a long run or short run decision? Explain.
  3. Do you think Krispy-Kreme is likely to succeed this time around? Explain.

Reference no: EM132414911

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