Business Case Studies Term Paper

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Business Case Studies

Krispy Kreme Doughnuts in 2006

The early 2004 strategy of Krispy Kreme Doughnuts was an expansionist one, focused on opening new stores within both primary and secondary markets in order to increase sales and promote the brand and also to achieve organizational development. Their competitive strategy was based on offering delicious products, opening stores all across the U.S. And creating the Krispy Kreme brand and culture.

The main reason why Krispy Kreme Doughnuts had such a hard time starting with of 2004 was derived from the previous expansion strategy. The incredible boost they encountered up until 2004 gave company officials far too much trust in the corporate capabilities and offered a distorted vision of reality. Extensive but unsupported expansion was the main cause for the financial crisis commenced in May 2004.

The doughnut company had been met with outstanding financial performances prior to 2004. The company's revenues had registered a 200% increase in February 2004, as compared to January 2000. The net income of February 2004 had grown by 858% as compared to the net incomes of January 2000. The most profitable business operation derived from the selling of doughnuts through the company's own stores.

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4. One thing went wrong: the company executives were far too thrilled about the positive prospects of Krispy Kreme and implemented unsustainable growth strategies. However, in time they realized their mistakes, but instead of repairing them, they increased their negative outcome by forging and hiding financial statements.

5. Yes, the company executives were definitely employing aggressive accounting tactics to cover up the financial shortages of Krispy Kreme. Not only is this procedure immoral, it is also illegal. Aimed to conceal the truth from company employees, shareholders, business partners and other corporate stakeholders, the cover-up had disastrous effects and could prevent the organization from regaining their initial status.

Term Paper on Business Case Studies Assignment

6. The company's reputation can be seen as both weakness and strength. In this order of ideas, customers would be happy to hear about the revival of one of their all time favourite brands. However, investors would remember the accounting frauds and would have reduced confidence in the company. Another strength derives from the company's commitment to their customers, their learnt lessons and their determination not to repeat the mistakes. Also, the wide variety of products is also a plus. Threats from the environment refer to increased competition and a tendency to renounce sweets in the detriment of healthier and less fattening products.

7. Krispy Kreme still owns most of their retail locations which they could easily use for the selling and promotion of their products. In addition, they have the support of the consumers and the extensive expertise of long time loyal employees. Therefore, yes, they could make a comeback.

8. A comeback is indeed feasible, but it could be difficult to regain the lost trust of investors. The comeback is doable moreover since during the past years the company has managed to put together parts of their business, but the negative impact of the financial scandal of 2004 is still felt.

9. Other than making the comeback, the company should regain the trust of their stockholders and diversify their product palette to include diet products.

10. First of all, the company needs to cut all connections with the employees and managers involved in forging financial statements. Then, they should promote their desire to satisfy customers' needs.

Case 3: Whole Foods Market in 2006

1. Whole Food Market bases their strategy on strong marketing campaigns, which inform the population of the benefits of consuming naturally grown vegetables and basically healthy foods. The company's growth strategy was in the beginnings based on the acquiring of small chains of stores, but during the present, it is based upon the opening of own stores.

2. John Mackey, the chief executive officer at Whole Foods takes pride in the company's ability to adapt to the requirements of the environment, and states that their prior mission is to help the planet and its population lead a better life. They integrated the contemporaneous environmental concerns into the line of business and support a live with reduced waste of natural resources and diminished levels of pollution.

3. My answer to this question will be a subjective one, as I am a stated supporter of organic foods and believe in any organization which promotes these values. The company's motto implies that though our consumption and promotion of naturally grown products, we help ourselves become better and more aware individuals and we would then be able to save our planet.

4. The core values presented in exhibit 3 represent the framework for the activities undergone by Whole Foods Market. However they may only seem like window dressings, I find them to be rather true. For instance, the company mentions from the start their interest in gaining financial interest, but they will do this by presenting the consumers with high quality naturally grown products. Proof of their commitment stands the numerous changes and improvements brought to Whole Foods.

5. From a financial perspective, Whole Foods Market is presented with steady growth over the past years, a trend which is expected to remain ascendant for the years to come as well. The company's sales have increased by 74% by 2005, as compared to the sales of fiscal year 2002.

6. Whole Foods Market's strategy is based on the company's core values and competencies and it is aimed at increasing the value of their products and by this, increasing the company's profits. The major competitive advantage is the increased attention to details they present in regard to the large number of perishable products sold. So far, Whole Foods is the undisputed leader on the organic foods market and its perception of leader represents a definite advantage.

7. The potential acquisition of Wild Oats would be a highly successful business strategy from two different perspectives. First of all, Wild Oat is Whole Foods' main competitor, and a merger with them would reduce the competition pressure. Secondly, given that Wild Oats has generally opened stores in territories far from the Whole Foods stores, a merger would increase the company's market share and would ease the penetration of other regions. The resistance to merger by FTC is entitled by the possibility that joint together, Wild Oats and Whole Foods' could detain monopoly.

8. The online industry has yet to be presented and governed by with sufficient and clear laws; therefore, the legitimacy of the messages posted by John Mackey is disputable. Little can be done.

9. In order to sustain growth and financial performance, John Mackey could develop and implement a strong marketing campaign, focused on the benefits of naturally grown products for both population and planet. In addition, he could try to enter new markets and reduce costs in order to reduce the retail price and approach those individuals who do not purchase organic products due to their high prices.

Case 4: Procter & Gamble's Acquisition of Gillette

1. Procter and Gamble's corporate strategy revolves around repeated acquisitions of national and international brands which add value to the company. Most of their products are related and belong to the cosmetics and hygiene segment, but there are also other types of products sold by P&G, such as foods. From a general stand point, Gillette's business is related to the P&G's, as most of their products are designed for personal care.

The merger between P&G and Gillette is expected to retrieve a 1+1=3 value. This value is expected to be achieved through increasing the product palette by adding to it five international billion dollar brands, by increasing the number of sales due to the penetration of new markets and the reduction of costs.

2. Procter & Gamble activates in a highly attractive industry moreover when they commercialize general products, required in the everyday life. Its competitive strengths are represented by the company's international recognition, the strength of their brand and the high quality of their products; and the company's business units are increasingly strong in their adherent markets.

9-cell industry attractiveness / business strength matrix displaying the business units of Procter and Gamble, as well as Gillette's would reveal the two companies' financial strengths, previous expertise in the industry and increased capability to adapt to the changes and demands of the environment, increased commitment to satisfying customers' needs, international recognition and the strength of their brands.

3. Procter and Gamble possesses sufficient resources to support business growth and development. And the acquisition of Gillette will increase even further their resources and retrieve an even more appropriate resource fit.

While during the period 2000-2005, Procter and Gamble has registered significant growths, Gillette has also increased their profits, but a slower rate. Both companies have followed a constantly ascendant trend, but at different growth rates. P&G's net sales for 2005 had registered a 42% increase as compared to the company's net sales of 2000. Gillette's net sales for 2005 were higher with 36% as compared to the sales of 2000. Over the… [END OF PREVIEW] . . . READ MORE

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APA Style

Business Case Studies.  (2008, January 29).  Retrieved May 8, 2021, from

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"Business Case Studies."  29 January 2008.  Web.  8 May 2021. <>.

Chicago Style

"Business Case Studies."  January 29, 2008.  Accessed May 8, 2021.