BUSINESS PLAN COMPARISON 1

GAURAV SHARMA

MGT-111 INTRODUCTION TO BUSINESS ORGANIZATION

“RESEARCH PAPER”

HARPER COLLEGE

BUSINESS PLAN COMPARISON 2

INDEX

PROLOGUE …………………………………... 3

INTRODUCTION

Krispy Kreme Doughnuts Inc. …………………………………….. 4

Caribou Coffee Company …………………………………….. 4

COMPARISON

Section 1 – Executive Summary …………………………………….. 5

Section 2 - Company Background …………………………………….. 5

Section 3 – Management Team …………………………………….. 6

Section 4 – Financial Plan …………………………………….. 6

Section 5 – Capital Required …………………………………….. 7

Section 6 – Marketing Plan …………………………………….. 7

Section 7 – Location Analysis …………………………………….. 8

Section 8 – Manufacturing Plan …………………………………….. 9

REFERENCES …………………………………….. 10

BUSINESS PLAN COMPARISON 3

PROLOGUE

This research paper presents a clear comparison of business plans for two leading companies

namely “Krispy Krème Doughnuts Inc.” and “Caribou Coffee Company”. The purpose of this

paper is to understand their business model and compare their plans. This will provide an in

depth knowledge about the company and also their strategic ideas, what makes them so

successful and competitive in American market.

BUSINESS PLAN COMPARISON 4

INTRODUCTION

Krispy Kreme Doughnuts, Inc. is an American global doughnut company and coffeehouse chain

based in Winston-Salem, North Carolina. It was founded by Vernon Rudolph in 1937 and is now

$460.331 million Company with 4300 employees worldwide. James Morgan is the current CEO

of the company and has been the key contributor in company’s global expanse. Today Krispy

Kreme has 884 stores with global presence in 16 countries outside United States Of America.

The company's growth was steady prior to its initial public offering but profits have decreased in

recent quarters

Caribou Coffee Company is a specialty coffee and espresso retailer, the second largest in the

United States Of America after Starbucks. Caribou sells coffee, tea, and bakery goods in 415

company-owned coffeehouses in 40 states and the District of Columbia, as well as 126 franchise

locations worldwide. It is a $260 million Company with 6000 employees. It was founded by

John Puckett in 1992 with its headquarters in Minnesota. In 2012, Caribou Coffee's announced

its acquisition by the German company Joh. A. Benckiser for $340 million.

BUSINESS PLAN COMPARISON 5

COMPARISON

Section 1 – Executive Summary

Krispy Kreme business plan details the executive summary for the proposed venture and

highlights the milestone for the company whereas Caribou Coffee has no such initial reference.

Providing an executive summary in a business plan lays a strong foundation for the investor to

understand the business proposal in detail. Krispy Kreme business plan is more comprehensive

and hence it provides a better understanding about the business model.

Section 2 – Company Background

Business plan for both the companies provide a brief introduction towards the company’s past.

Krispy Kreme business plan provides information about opening its first business store and

glorifies its century old doughnut recipe whereas Caribou Coffee business plan emphasis more

on its present structure and whereabouts. It also provides a small flashback about company’s

history and birth.

Krispy Kreme business plan thereafter provides elaborate information about company’s core

values and also the mission and vision statement. Caribou Coffee business plan describes

company values and mission statement only. They do not have any vision statement listed in

their business plan. It is clear that both the companies are highly customer oriented. They have

listed ‘high customer satisfaction’ as one of their primary goals. Krispy Kreme provides a peep

BUSINESS PLAN COMPARISON 6

into the company’s business strategy and operating model through its vision statement. Its vision

is to become worldwide leader in sharing delicious tastes and creating joyful memories.

Section 3 – Management Team

Krispy Kreme business plan has listed the organizational structure whereas Caribou Coffee

business plan has no details on management structure. Krispy Kreme hierarchy chart provides an

optimum view of the departmental division and management reporting structure. It also provides

information about the salaries drawn at the management levels and capital division.

It provides a greater transparency to the investor about the organizational view and working

structure. Alternatively it also compares the gap between the capital investment and the

overheads. Caribou Coffee business plan has no such reference.

Section 4 – Financial Plan

Both business plan have listed their financial peculations and have provided information about

the future growth of the company along with the investment opportunities. They have carefully

priced their items to promote products and have also unveiled new promotional plans to boost

sales. Krispy Kreme has provided the detailed analysis of capital invested in the company and

have future proposals and ventures in pipeline. Both business plans have details on the company

revenues and financial position in NYSE (New York Stock Exchange).

BUSINESS PLAN COMPARISON 7

Section 5 – Capital Required

Krispy Kreme business plan has in detail requirement spreadsheet for a potential investor to

explore its opportunity. It has details about the franchisee opening along with the initial

investment info and the capital budget requirement analysis. It provides a complete picture on

the franchisee model and investor get a transparent view to pursue in this venture, whereas on

contrary Caribou Coffee business plan has no details on franchisee. They have no information

for an investor on budget or checklist to open a new Caribou Coffee franchisee.

Opening a new franchise unit is a good way for expanding business by leveraging the royalty

fees from the investors. Krispy Kreme business plan outlines the detailed layout for the

franchisee unit and also helps to guide the investor in this initiative.

Section 6 – Marketing Plan

Business plan for both companies have a detailed analysis about the market condition and the

company’s growth plan. They have listed their top competitors and have highlighted the

strengths and possible weaknesses for the business. Careful study has been done to identify

future store locations to optimize the profit margins for the company.

For example like Caribou Coffee company is targeting university campuses and college locations

to expand their chain and make huge profits.

BUSINESS PLAN COMPARISON 8

The business plans for both have details about the target market and the possible opportunities

for the business to expand. They have meticulously described their competitive edge over their

competitors and strategy to expand their footprints.

Caribou Coffee business plan describes the SWOT analysis for the company where it tries to

overcome the weakness with new marketing ideas like promotional strategy. They have

emphasized on the company’s growth curve with new proposed marketing plan.

Krispy Kreme business plan has the strategic advertising layout to promote their brand and

products.

Section 7 – Location Analysis

Both the business plan includes detailed study on market statistics and demographics which

provides a concrete basis to determine an optimum location for the new franchisee store opening.

For instance Caribou Coffee plans expansion in Texas whereas Krispy Kreme is looking for an

expansion in Pennsylvania.

Location Analysis provides an enhanced view of the company’s expansion plan and future

endeavors. Based on the careful study of the local demographics and the market demand, setting

up a new business unit in the area can be really favorable. Caribou Coffee business plan states

that their potential site could near a university or college where they except the young crowd to

hang around and enjoy their world class coffee while studying.

BUSINESS PLAN COMPARISON 9

Section 8 – Manufacturing Plan

Krispy Kreme business plan has complete manufacturing details of its products. It is known as

KK & MD plan where it highlights the main activities involved from raw ingredients to finished

products. It shows the flow of activities from the corporate stores to the franchise units.

Caribou Coffee business plan has no details on the manufacturing plan. They have not included

this information in their business plan which might be of great relevance to the potential investor

to understand the supply and demand. Manufacturing plan is further elaborated by marketing and

distribution. Krispy Kreme has provided details on the distribution planning.

BUSINESS PLAN COMPARISON 10

REFERENCES

Business Plan: “Krispy Kreme” retrieved 2014-12-07

https://prezi.com/x4iblkgvqpxy/krispy-kreme-business-plan/

Company Plan: “Caribou Coffee” retrieved 2014-12-07

https://prezi.com/t2v9dkl6bhnt/copy-of-caribou-coffee-marketing-plan/

Company Information

http://www.cariboucoffee.com/corporate-folder/our-company/company-info

Caribou Coffee: homepage

http://www.cariboucoffee.com/home

Caribou Coffee | Investors | Company Overview

http://phx.corporate-ir.net/phoenix.zhtml?c=192910&p=irol-irhome

"KRISPY KREME DOUGHNUTS INC 2014 Q4 Quarterly Report Form (10-K)" (XBRL).

United States Securities and Exchange Commission. 2014-04-03

http://www.sec.gov/Archives/edgar/data/1100270/000120677414001138/0001206774-14-001138-index.htm

Krispy Kreme: Investors

http://investor.krispykreme.com/phoenix.zhtml?c=120929&p=irol-factsheet

"Krispy Kreme - About Us".

http://www.krispykreme.com/about-us/history

Nickels, McHugh | Understanding Business 10 Edition“Outline of a Comprehensive Business

Plan” Chapter-6 Pg.165. retrieved 2014-12-07