SCHOLARLY ACTIVITY

Scholarly Activity



Scholarly Activity

Introduction

In this paper, we will discuss the establishment of international business.

Company chosen for description

For this paper, we shall found and work upon the company entitled 'Krispy Kreme Doughnuts Inc.' (KKD).

Overview of the Company

Rudolph and his partner a few years down the line were looking at a larger market and moved their operations to Nashville (Makadok, 2001). After some disappointing efforts, they settled on opening the first Krispy Kreme doughnut shop in Winston-Salem, North Carolina. With 181 Krispy Kreme stores in 28 states, sometime in the year 2001, was rapidly making progress and building something of a cult following for its crispy, light, warm, melt-in-your mouth doughnuts.

Company Operations: Target Markets

Krispy Kreme doughnuts have vastly expanded their work, creating a unique and widespread culture of eating doughnuts throughout the world. Locking both current and potential customers, gaining attention and locking positions, in their minds, the company has expanded its operations and become successful in creating international presence in USA, Unite Kingdom, Canada, China, Indonesia, Japan, Korea, Malaysia, Mexico, Philippines, Puerto Rico, Thailand and Turkey. Krispy Kreme also managed to set up its operations in the Middle East, establishing its stores in Kuwait in the year 2006.

Market and Legal Systems

To understand the phenomenon, one must understand and analyze those markets in which the parent company pertains to target. With reference to the market systems, Krispy Kreme Doughnuts earn and generates its business revenues from four major segments: company stores, domestic franchise stores, international franchise stores and the most important, Krispy Kreme (KK) supply chain/value chain management system (Daniels, Radebaugh & Sullivan, 2011). Apart from these, KKD also generates ample funds and sources from:

Royalties from franchised stores and franchise fees from new store openings;

Sales of doughnut mixes and customized doughnut-making equipment to franchised stores.

In addition to this, Krispy Kreme Doughnuts strongly competes and pertains to maintain a strong reputation in the quick service restaurants, more casually abbreviated as QSR. QSR's generally pertain to create a more strong standing, since QSR are designed for the purpose of fulfilling the 'need of the hour'. According to rule # 3 mentioned and discussed by Thomas Friedman, another major attempt that big companies undertake is to keenly keep track of their performance on a smaller basis, which would permit and allow their customers to act in a big way; for instance the kind of associations that customers have with a company is because of the augmented products (offers, perks, privileges, gift hampers, etc.), along with the core benefit of the product being purchased (Daniels, Radebaugh & Sullivan, 2011).

One must understand that although these attempts are minimal in response to the profits being earned by the company, but it tends to make the customer retain and remain loyal with the company. Thus, with the simplest of rules to 'immediately cater to the needs, wants and delicate demands of the customer', Krispy Kreme takes pride in performing its duties with the utmost pride and dignity and seizes to exist in ...