Krispy Kreme Doughnuts Sample Assignment


Krispy Kreme is an American fast-food giant founded in 1937 by Vernon Rudolph in Winston-Salem, who had a secret recipe for making yeast-raised doughnuts. Beatrice Foods purchased it in 1982 as a group of franchises. The company expanded greatly in the 1990s, and in 2003, Fortune Magazine named Krispy Kreme as ‘American Hottest Brand’. After the initial public offering in 2000, Krispy Kreme shares traded at $50. As of 2015, the company had 173 stores in the US and 758 international franchise stores (Putri et al., 2020). Even though management inefficiencies contributed largely to its fall in the 2000s, other factors contributed to Krispy Kreme’s decline before its rise again. First, the company engaged in aggressive expansion strategies that were not unsustainable in the long run. Krispy Kreme had a large number of large-format stores that were not only expensive to maintain but also made the franchise dependent on wholesale sales, the 2000 wave healthy consciousness wave that saw many people shift to healthier foods with low carbohydrates, questionable accounting practices, especially buybacks and flawed market research for adding new franchises. Despite the fall, the company has managed to make a turnaround by focusing on attractive branding globally, reducing large format stores while increasing the number of mobile kiosks in the process, sustainable and organic international expansion, and expanding its available menu. Krispy Kreme Doughnut proves that despite failing, a business can rise to even greater heights than before

The fall of Krispy Kreme Doughnuts

After the initial rise of the Winston-Salem doughnut giant up to the year 2004, the company started experiencing downward trends in 2005 that saw it report about 55 % decline in earnings for the second quarter. First, Krispy Kreme pursued unsustainable aggressive growth strategies. Analysts claim that these ineffective and overzealous growth strategies are the genesis of the fall of Krispy Kreme. These strategies solely focused on popularity, ignoring all other parameters when adding franchises. Spicer (2016) notes that during the early years, the rare taste of warm delicacies had served as a great hook for customers who watched their beautiful doughnuts being created in front of their eyes. Krispy Kream executives chose to capitalize on this popularity and tried to sell the brand massively, ranging from gas stations to kiosks. However, this massive expansion diluted the appeal of the core product as the doughnuts from the new stores tasted different.

Secondly, the company allowed too close proximity among franchisees and the overall result was less profit for each individual owner. For example, between 2003 and 2004, the overall quarter revenues for the company averaged about 15%, while some stores only had a 0.1% incremental increase in revenues. Analysts argue that the number indicated an oversaturation of the market where many franchises felt left out and many of them started pushing for sell-outs (Terry et al, 2018). The oversaturation had brought about unexpected and unnecessary competition among the franchisees leading to unhealthy internal competition. Besides, these clustering made franchisee owners feel that the company valued its growth more than their store profits.

Thirdly, the early-2000 low carbohydrates consciousness adversely affected sales. After the turn of the millennium and Krispy Kreme going public, there was a global wave where people started to slowly shift to healthier foods. This threatened the hot and fresh glazed doughnuts people had become accustomed to in Krispy Kreme. A majority of them still wanted to enjoy the hot doughnuts some perceived to have high carbohydrates concentration. Throughout the period of rapid expansion, many customers were facing the dilemma of shifting to low carbohydrates doughnuts in some stores, and people started to complain that Krispy Kreme doughnuts were losing their “uniqueness.” The healthy consciousness made some governments ban some ingredients, which they considered unhealthy. Notably, when the company tried to move away from its original fresh doughnuts, in line with the current trends, its stock plummeted by about 16%. This forced the company to revert to its original model that its customers loved.

Further, the company focused on buybacks of several dealerships with its franchises. The buybacks occurred when the Franchiser indicated that it has sold goods to the franchisee to increase their sales then later come and pick them (Chawla & Chakraborty, 2021). This financial imprudence came to light in 2004 after the then company CEO Scott Livengood decided to blame low-carbohydrate diets that he claimed made the company miss its quarterly targets for the first time since its initial public offering. Analysts argued that the CEO’s blame on the Atkins diet was a cover-up for the company’s desperation and management mismanagement. Terry et al (2018) asserts that the buybacks scandal led to the Securities and Exchange Commission commencing investigations in 2004. This public inquiry affected the company’s image, which translated to lost investor confidence. Besides, the failure of the firm to file reaffirmed financials led to the company trading at an all-time low of $6 in 2005. These buybacks were intended to create an imaginary illusion that Krispy Kreme was performing better than it was. They were recorded as sales to show investors can perceive that the company is making some profits.

Not to mention, most Krispy Kreme franchises accused the company of ‘channel stuffing.’ The aggressive growth strategies adopted forced the franchises to take up more inventory than necessary to bolster profits. The result was increased operational costs that adversely affected the profits of the franchises. Besides, the company also started forcing the franchises to buy equipment and supplies from the headquarters. The mark-up placed on the equipment and supplies led to the franchises perceiving the company as greedy and one that only focused on short-term profit generation. Further, this practice caught the attention of the SEC, who launched investigations into the company because the management was misleading investors as the company’s financial reports did not provide a true and fair view of the state of events.

Also, Krispy Kreme had flawed marketing research that resulted in unsustainable expansions. The company embarked on an extensive national expansion based on non-scientific data. For example, the company opened a franchise store in “Montana Mills” because the then CEO Scott Livengood had a ‘good feeling’ that the short-shelf life products were essential for the vertical expansion trajectory. According to Hoffman (2021), if a proper market search had been conducted, the company would have identified a general trend among customers of moving towards products that had reduced carbohydrate levels. Besides, the company failed to undertake a market study on customer satisfaction that would have helped them identify critical pain points such as complaints of different tastes for the same product. As a result, the company incurred a loss of 2 million dollars by the end of the fiscal year 2014.

Even more, Krispy Kreme had an over-reliance on large store formats measuring about 300 to 5500 square feet. These stores operated both as packaged goods distributors and as quick service restaurants. The result was limited market densities, especially in real estate, where the competition was stiff. On the downside, these stores required a high initial investment cost, and their fixed costs were relative (Spicer, 2018). This, together with the company’s desire to manufacture its own equipment, meant that the company was had a high operating margin. There was extra space considering the stores were only required to make about 600 doughnuts per hour. The result was Krispy Kreme relied heavily on wholesale sales for whole company profits, which saw their stores fail in store quality in strategic markets. This changed the usual perception of customers about Krispy Kreme as a normal routine to just a “destination’ which led to Dunkin Donuts and Starbucks surpassing it as quick service retail.

Turnaround of the Krispy Kreme Doughnuts

Despite the previous decline in earnings witnessed from around 2005 to 2009, Krispy Kreme has managed a turnaround that has driven it to a 1.35 billion dollar valuation. The turnaround has been a long process facilitated by a number of factors. First, through intensive and attractive branding, the company has been able to bring back the charming feeling of enjoying the Krispy Kreme doughnuts again. According to Spicer (2016), The company has transformed its licensing agreements to ensure that Krispy Kreme doughnuts worldwide are branded the same. The gas station stores and convenience stores display the Company colors brightly, increasing the company’s visibility to the customers. Besides, the company has also improved its distribution model, enabling it to fulfill customers cravings, reclaiming the ‘hot fresh doughnut ‘tag. The additional locations are required to sell fresh doughnuts, promoting the uniformity of products offered. Through this model, customers have increased confidence in enjoying a fresh hot doughnut at any Krispy Kreme store.

Secondly, improved supplier power. Krispy Kreme is the main supplier for its mixes and equipment to its franchises. Only labor has higher costs when compared to mixes and equipment. This has enabled the company to get ingredients in the desired original glaze to facilitate the freshness of its doughnuts (Terry et al, 2016). In the restaurant industry, supplier power is a significant force as it determines the availability of ingredients and the cost of procuring them. Thus, the increased supplier power has enabled Krispy Kreme to mitigate ingredient price fluctuation and enjoy forward purchases and future contracts. Historically, suppliers have regularly changed prices threatening profitability. Stability of ingredient supply is essential for planning purposes to avoid stockouts, which may lead to foregone sales that may damage the company’s image and push customers to competitors’ hands.

Thirdly, just like Starbuck, the company has added other tasty food items to their main core item. Considering that, the company had lost a sizable part of its customer base to the competitors during its decline period. When Scottt Livengood took over as the CEO, he understood that the company needed to conquer new markets to facilitate growth. The company decided to expand its menu to include food items such as sandwiches and smoothies. These items were to complement the main business: doughnuts. Spicer (2016) claims Scott Livengood decided to expand into new markets while still making being king in the doughnut business is their main source of profits. The expansion has brought on board sizable revenue from individuals who may not necessarily like doughnuts but can enjoy a sandwich or coffee. Besides, this has given the company a ground of being perceived as a worthy competitor by expanding into the major business line of its main competitor Starbucks.

Besides, the overseas expansion allowed them to tap into international markets ahead of their competitors. The 2005 SEC investigation forced the company to stop any domestic expansion until it had cleaned up its finances and published financials that represent a true and fair view. Thus, after being named CEO in 2006, Darly Brewster embarked on aggressive international expansion but with stricter rules and a sustainability mindset when taking onboard new franchises (Kostyuchenko et al, 2019). Krispy Kreme raised extra funds needed for operations through the new franchises, especially in the USA, where it sought national dominance. Also, the international expansion provided an opportunity to test their new models ranging from market research, growth, research, and development. This was crucial as it enabled the company to have previous mistakes of conducting no market research in expansion.

Further, Krispy abandoned the large format stores and started selling their product through third-party retailers. Mobile kiosks have risen to be a crucial intermediary in the distribution channel, and many retail giants such as Starbucks use them. After a successful pilot study, Krispy Kreme began networking through third-party networks such as mobile kiosks where customers would come (Terry et al, 2018). Each mobile kiosk is then stocked with fresh doughnuts. This has enabled the company to access a wider market without intensive capital investment. Notably, removing the large format stores has helped Krispy Kreme save about 15 million dollars in leases and 1 million dollars on labor. Also, analysis of some international markets such as the United Kingdom indicates that UK customers’ culture favors mobile kiosks over Large format stores (Putri et al., 2020). Therefore, the mobile kiosks helped solve one of Krispy’s major issues: logistics. With the smooth delivery of its fresh doughnuts, Krispy Kreme was able to maintain its charm of being a routine and not a “destination.” Krispy Kreme has invested heavily in market research. Flawed market research was one of the leading causes of company decline, as some franchises store was bought based on just “gut feelings.” The marketing department has been greatly enhanced to provide concrete market data that can substantially gauge the success of expansion programs.

Moreover, instead of solely focusing on franchising using the previous skewed models, the current Krispy Kreme management has added acquisitions as a key growth approach.

Recently, the company made an important acquisition of a well-established Birmingham, Alabama, Franchisee. Analysts argue that the move comes along with bright growth prospects. This form of expansion is sustainable when compared to the initial franchising strategy. The company has also launched self-supporting shops that support the major stores to support this move (Kostyuchenko, et al., 2019). These shops do not directly compete with the stores but act as supportive agents to the major stores in the proximity. They enhance the existing distribution channel and reduce lead-time between the franchises and company factories because they can be used as storage points to supply the franchise shops.

Lastly, it is important to note the company has revolutionized its organizational structure into three reportable segments: Krispy Kreme Manufacturing and development (KKM &D), franchise operations, and company store operations. The KKM&D was created to ensure that the doughnuts offered to customers in all stores are of uniform quality by facilitating buying and processing key ingredients for doughnut mixes (Chawla & Chakraborty, 2021). The KKM& D unit manufactures all Krispy Kreme doughnut-making equipment that all stores should buy. This has eliminated the incidences of different doughnut tastes in different stores. The franchise operations include an associate program that ensures the franchise operations are synchronized. Lastly, the company store operations focus on sales distribution channels. Through this structure, the company seeks to develop improved distribution channels that will ensure convenience in delivery.


In conclusion, Krispy Kreme doughnuts faced more than managerial inefficiencies during the period leading to its fall. Nonetheless, the company CEOs embarked on aggressive growth strategies that valued the franchise more than the acquired franchises. Healthy consciousness led to reduced sales in the 2000s as some rushed to healthier foods. Conversely, some company CEOs have facilitated the turnaround, especially through international expansion, adding more tasty meals to the existing menu, revolutionizing organizational structure, and developing a new sustainable expansion model supported by intensive market research.


Chawla, M., & Chakraborty, A. (2021). A SUCCESS STORY. Delhi Business Review22(1), 103-109.

Hoffman, A. J. (2021). Management as a calling. Stanford University Press.

Kostyuchenko, M. N., Kosovan, A. P., Shaposhnikov, I. I., & Martirosyan, V. V. (2019, January). The bakery products market in the globalization economy conditions: institutional сhanges and trends in the development of consumer behavior and competitive strategies. In 2nd International Scientific conference on New Industrialization: Global, national, regional dimension (SICNI 2018) (pp. 500-504). Atlantis Press.

Putri, A. R. A., Nisa, I. K., Yee, L. H., Kee, D. M. H., Min, K. H., Yi, L. S., & Xin, L. J. (2020). J. CO Coffee & Donuts marketing strategy. Asia Pacific Journal of Management and Education (APJME)3(1), 72-81.

Spicer, R. (2016). Explanatory case study on factors that contribute to the Commission of Financial Fraud. Northcentral University.

Terry, D., Harwood, E., Magacs, H., Sharber, E., & Zimmerman, K. (2018). Case Commentaries. Transactions: The Tennessee Journal of Business Law19(1), 1-26.

Essay On Latin Music Free Writing Sample

One of my favorite music has been Latin music. Despite the fact I do not understand latin language, their music carries me along, and re-energizes me back to work. In most cases, their music has special features that make it unique and attractive. Apart from using varied instruments, they use tonal variations that make the song memorable. This assignment discusses one music from YouTube whose links are attached. The song’s producer is Aguacero and the song title is ‘EI Gran Combo.’ The track plays for 8 minutes and 10 seconds. It plays with an F key and a minor mode.

The song caught my attention from the way the singers mixed the instruments. Their instruments included the trumpet, the trombone, and an alto sax, tenor sax, piano and bass. There were alternating sounds that blended well with the song. Another aspect that made me like the song is the attire. The men dressed in costumes that blended well with the decoration lights in the hall. The dim light with varied colors causes a relaxing atmosphere that leaves the viewer with an urge to watch again and again. According to Sologub (p. 132-148), the dim lights creates a pleasant scenery on stage, and such a scene gives the audience a proper mood.

I was keen to note minor details in the song. First, some singers had clean shaved heads that shone like mirrors while others had some hair with a bald at the front part. The artist uses this aspect to make the dance more interesting. The men arrange themselves alternating the shiny heads with those with hair. Such an arrangement makes the presentation catchy towards the viewer. I learned that music is not all about sounds. There are many aspects that come together to make a song lively and attractive to the audience.

It is worth noting that the song has high energy and is much danceable. My close examination of the dance made me conclude the type of music to be salsa sheet music. I could conclude this from the way the singers danced and held hands, but it tactfully allows sufficient time for instrumentals to play a greater role. There is dance to a very small extent. The guys could dance together the salsa way. At one point, they hold hands and at another instant, they rotate like lovers do in a Salsa dance. Ideally, the men are not uniform in dancing. One would wonder whether they did not train well or what reason could have caused the mismatches. I noticed that while dancing, their body parts did not move in unison. One lifted the hands while the others used different signs. Maybe it was their unique way of doing it.

Music plays a big role in our lives. The artist in this music intended to drive home the idea of love. He wanted excite the audience and allow it to see how the instrumentals could carry a greater meaning than words in the song. He uses many instruments but blends them in a way that no confusion arises.

Works Cited

Sologub, Fyodor. “The theater of a single will.” Russian Dramatic Theorynfrom pushkin to the symbolists. University of Texas Press, 2021. 132-148. Retrieved from


Law Of Evidence Regarding E-Discovery Essay Example

The different types of e-discovery in an overview context

In legal terms, electronic discovery, often known as eDiscovery, refers to discovery in which the material sought is in digital format. This kind of data is often referred to as electronically stored information, or ESI. ESI differs from paper information in that it has an intangible form, is persistent, is transient, and has a large amount of data. Metadata is frequently included with electronic documents, and it may play a major part in the evidence-gathering process. This is another significant distinction between electronic documents and traditional ones. Safeguarding metadata from electronic documents in order to avoid spoliation introduces unique eDiscovery issues that must be addressed. The use of electronic discovery (eDiscovery) is becoming more common in government investigations, different areas of civil litigation, and Freedom of Information Act (FOIA) requests in the United States. Since 2006, eDiscovery requests in the United States have been governed by the Federal Rules of Civil Procedure (FRCP), as well as specific state rules in select cases. The Federal Rules of Civil Procedure were modified on December 1, 2015, primarily to improve the way eDiscovery is handled. Some other states and localities have eDiscovery regulations, which include Part 31 of the Civil Procedure Rules in areas of the Uk, Australia’s Freedom of Information Act 1982, Canada’s Access to Information Act, Denmark’s Availability to Public Administration Files Act of 1985, Finland’s Act on the Inclusivity of Public Documents, and overall access to information laws in France, Germany, and other EU countries. The Aarhus Conventions, Article 10 of the European Convention on Human Rights, and the General Data Protection Regulation are all applicable to countries in Europe, and each of them may have an impact on access to information in the country concerned.

Forensic electronic discovery The jurisdictional rules (procedural and ethical) that are on point with e-discovery in your jurisdiction

It is the obligation of the parties who are putting together the evidence to locate and gather evidence that is both significant to the allegations and defenses being advanced and commensurate to those requirements. A lawyer’s advice is critical in implementing this requirement in the ESI environment. Attorneys who aren’t acquainted with e-discovery methods and technology should either learn them or hire someone who is. It’s not enough to know the official regulations. The greatest outcomes are achieved when the parties are made aware of ESI early in the process and discuss any difficulties with their opponents, including getting assistance from competent third parties if they lack the competence and experience to deal with it. It is the responsibility of both the asking and producing parties and the courts to work together to ensure that requests and objections are made in a manner that is suitable to the matter at hand (Smith et al., 2013). The quality of the discovery process may be greatly improved by promptly serving requests for production and discussing openly the scope and nature of the costs and burdens and other proportionality variables connected with conformity with discovery demands. The identification of the key custodians from whom the data will be gathered is a crucial variable. The volume of output and the manner in which it is handled will be determined by the number of such custodians and the need of consulting or obtaining production from other parties.

Consequences of poor management of e-discovery, including but not limited to spoilage

The geographical space of ESI examined in eDiscovery is not always straightforward to determine due to the extensive usage of cloud computing and other online storage types. An email or text message may go via any amount of phone lines and routers, to any number of servers and client devices throughout the world, making it almost difficult to pinpoint the exact location of a communication. There are so many rules on eDiscovery in different countries that it may be tough to know which ones to follow and which ones are best left to the experts. eDiscovery outside of the United States is substantially more expensive than eDiscovery here in the United States because of the added difficulty and the legal limits imposed by other nations. There are a variety of rules and regulations in each country regarding electronic data and discovery techniques, so it’s necessary to familiarize yourself with those laws and regulations before going further. Even in the United States, routine discovery methods may be illegal in other nations. Knowing the laws and regulations you’ll be up against is crucial. Foreign nations may have differing perspectives on privacy, making it challenging to justify the necessity for eDiscovery to such governments. A request for eDiscovery in a nation where pretrial discovery is not the norm might lead to misunderstood requests and non-compliance. It is essential for a foreign eDiscovery attorney to have an in-depth understanding of American law and practices.

Best practices to conform with state procedural and ethics rules that can be implemented in your office for proper records management and maintenance

The Rule of Professional Responsibility 3.4, entitled “Fairness to Opposing Party and Counsel,” has the most impact on the subject of electronic data preservation since it is the most immediately applicable. R. 3.4 of the American Bar Association (ABA) Model Rules of Professional Conduct (2003). Lawyers must also take care to ensure that they are familiar with the version of the rules that apply in each state in which they practice, since several jurisdictions have adopted modified versions of the American Bar Association standards. The following is stated in Rule 3.4(a): “A lawyer may not illegally prevent another party’s access to evidence or unlawfully modify, delete, or hide a document or other material that has the potential to be used as evidence in a legal proceeding. A lawyer is not permitted to advise or aid another individual in engaging in any such conduct.” The following relevant advice is provided in the rule’s comment section addressing the rule’s purpose and scope (Legal Information Institute, 2018). Generally speaking, under the adversarial system, evidence in a case will be marshaled by the competing parties against one another in a competitive environment. Protection against unfair competition in the adversarial system is provided through restrictions against the demolition or concealing of evidence, illegally manipulating witnesses, and disruptive tactics in the discovery stage, among other things. Documents and other pieces of evidence are often required in order to establish a claim or defend against one. The right of an opposing party, such as the government, to seek evidence by discovery or subpoena, subject to evidentiary privileges, is a significant procedural right. If the relevant material is changed, obscured, or destroyed, the exercise of that right may be hampered or even prevented. In many countries, it is illegal to delete information with the intent of impeding its availability in an ongoing process or one whose initiation may be predicted under the applicable legislation.

The role of all who will be involved in the e-discovery process, including but not limited to the paralegal, the attorney, and the IT department.

Documents should be requested in native format from opposing counsel or the client, taking into account whatever programs are being used. Electronically stored information, or ESI, is a common abbreviation for this. The term “native format” refers to electronic material in its original format, such as email, Word documents, Excel spreadsheets, QuickBooks data, Adobe documents, etc. Cell phones and voicemails are only two of the many technological communication methods that are regularly utilized nowadays. A lot of organizations have IT experts who can help you figure out what information they can supply, especially if they use specific software (Drew, 2018). With the help of the attorney, paralegal, and IT specialists, it is ideal to identify the information necessary for a specific case. There are a number of ways in which this might assist you narrow the scope of the information you want from the parties often referred to as “custodians. It is also a good idea to choose precise search phrases in order to narrow down the information you are looking for. There comes a point in a dispute when both sides must come up with an agreement on how the information will be shared. There is a lot of demand for litigation eDiscovery software right now. You may choose from a range of providers, price structures, and software options that can help you keep track of your papers and respond to requests for them. Some of you may be employed by a business that already makes use of and has processes in place for eDiscovery software. Everyone will benefit from your assistance with research and price, as well as attending demos, if you don’t already. In many cases, you will be using the software platform, so having your feedback is a huge plus. In the eDiscovery process, lawyers are depending more than ever on their paralegals. Document review is the most critical role that a paralegal may perform. To be clear: Attorneys must inform you in detail whether a piece of evidence is relevant or not. Attorneys often ask you to carefully review the discovery requests and only submit documents that are obviously relevant to the matter at hand.

Conclude by making suggestions for a firm policy on the use of e-discovery

When it comes to employee computer usage in the office, Acceptable Use regulations are a good place to start. A company’s mobile device policy should cover everything an employee uses to conduct business on behalf of the company. This includes laptops owned by the company, smartphones, cameras, networking equipment, and software. It should also cover all electronic communications, such as email, text messages, and instant messages. Company-owned technology may be used by employees to participate in labor activities that are protected by the National Labor Relations Act and other federal or state laws, but the policy must inform them that notwithstanding these rights, the technology can only be used for commercial reasons. Password and email rules might be included in the acceptable usage policy, or they can be separate policies. Policies and practices must be implemented by certain firms as a matter of law. Medical practitioners and investment firms, for instance, must create methods that comply with the Health Insurance Portability and Accountability Act and the Gramm-Leach-Bliley Acts. It is essential for companies that permit employees to use their personal mobile devices for work purposes to implement Bring Your Own Device (BYOD) policies. As a prerequisite to using a personal device at work, the policy should specify which workers and positions are authorized to do so, as well as whether or not the device requires IT permission and whether or not it is compatible with the company’s IT systems. The IT department is responsible for setting up virus protection on the device, and the employee is responsible for any data loss that occurs as a result. An hourly employee’s wage and hour concerns should also be taken into consideration by the company. Finally, the employee must sign a user agreement acknowledging the terms and conditions of usage.

Paper and electronic documents must be kept for a predetermined period of time before they can be destroyed. It is determined by the length of time required by federal and state law as well as business and litigation wants that certain types of documents, like tax, human resources, health coverage, and information captured are kept.


Drew, T. (2018). Ethical Obligations in Electronic Discovery. American BAr.

Legal Information Institute. (2018). Rule 502. Attorney-Client Privilege and Work Product; Limitations on Waiver. LII / Legal Information Institute.

Smith, Gambrell & Russell, LLP. (2013, February 1). E-Discovery: The Federal Rules in the Digital Age. SGR Law.

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