University of the Philippines Cebu College

Management Division
Lahug, Cebu City

Mgt 190 Case Analysis # 1

Krispy Kreme Doughnut 2008

Date Due: December 16, 2010

Date Submitted: December 16, 2010

Submitted to:
Professor Jesus C. Cinco, Jr.

Submitted by:
Group 2
Krystel Kaye Lee Team Leader
Regie May Berou
Anya Camille Gabucan
Bea Marie Jaen
Glorabelle Resma

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Group 2
EXECUTIVE SUMMARY
Krispy Kreme envisions itself to become one of the worlds best and well-known doughnut companies. To reach
this, they have to capitalize on their key strengths to combat the changes in the macroenvironment. Competition
in the industry is fierce with dominating players and their ability to respond to the growth opportunity in the
international scene. The U.S. market is also rapidly trending toward healthier food products which Krispy Kreme
does not currently offer.
For the past years, they have been incurring net losses despite their turnaround strategy. Total revenues for the
company stores and supply chain have been decreasing since 2005. Because they failed to update their
Uniform Franchise Offering Circular, they are suffering from opportunity losses in domestic franchisees. Their
current production capacity is also underutilized because of a larger number of factory stores over satellite
stores.
After the internal and external factor evaluation, its best move is to hold and maintain. This will be achieved by
implementing the market penetration strategy which focuses on aggressive marketing and increasing
franchisees in the existing markets. This is the best strategy because it entails the least cost for Krispy Kreme
and they can utilize their current resources for implementation. However, in this fast-growing industry and fierce
competition, they may be left behind. The company will utilize a mix of 25% debt and 75% equity.
The generic strategy of the firm is Focused Best-Value provider. This will encompass the market penetration
strategy for a fully-effective implementation.

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Group 2
Table of Contents
PROBLEM STATEMENT

VISION

MISSION

OBJECTIVES

Financial (refer to Balanced Scorecard)

Strategic (refer to Balanced Scorecard)

SITUATION ANALYSIS

Internal Environment Analysis

Financial Analysis
Value Chain Analysis

2
2
3

External Environment Analysis

General Environment
Industry Environment
Competitive Environment

3
3
4
4

STRATEGY FORMULATION

STRATEGY EVALUATION

STRATEGY IMPLEMENTATION

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List of Appendices
Appendix 1: Vertical Analysis of Income Statements............................................................10
Appendix 2: Horizontal Analysis of Income Statements........................................................11
Appendix 3: Horizontal Analysis of Balance Sheets..............................................................12
Appendix 4: Key Financial Ratios and Their Trends.............................................................13
Appendix 5: HA/VA of Store Count.......................................................................................14
Appendix 6: IFE Matrix..........................................................................................................16
Appendix 7: Tabulation of Key Trends/Changes in the Macroenvironment..........................17
Appendix 8A: Industry Analysis (Current).............................................................................18
Appendix 8B: Industry Analysis (Next 3-5 Years).................................................................19
Appendix 9: Competitor Analysis...........................................................................................20
Appendix 10: EFE Matrix.......................................................................................................21
Appendix 11: Strategy Formulation Matrix I (SWOT Matrix)...............................................22
Appendix 12: Strategy Formulation Matrix II (IE Matrix).....................................................24
Appendix 13: Strategy Evaluation Matrix..............................................................................25
Appendix 14: Balanced Scorecard..........................................................................................26
Appendix 15: Gantt Chart Strategy Implementation...........................................................27

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PROBLEM STATEMENT
What would be the best strategy for Krispy Kreme to pursue in order to increase revenues and recover from
financial losses?

VISION
To be one of the worlds best and well-known doughnut companies.

MISSION
In Krispy Kreme,

We bake mouthwatering doughnuts that appeal to the taste of the children and young adults all over

the world.
With our special doughnut-making equipment and doughnut-making theaters, we regularly produce

one-of-a-kind doughnuts that are always sought after by our customers.

We commit to deliver increasing value to our stakeholders by producing better-than-average returns

and taking advantage of the opportunities that come our way.

We will continue to develop, motivate and reward our employees for their job security and career

growth.
We will continuously give back to the community by helping out organizations and launching different

activities for their benefit.

We capitalize on integrity and trust to achieve success for the whole organization.

OBJECTIVES
Financial (refer to Balanced Scorecard)

To have a positive and increasing return on equity targeting at least 10% increase annually.

Strategic (refer to Balanced Scorecard)

To increase the frequency of customer walk-ins by at least 15% annually and have improved customer
feedback.
To increase the number of franchises and satellite stores by putting up at least two stores per month
annually in both domestic and foreign markets.
To get at least 10% of the area population as website members annually.
To launch at least one advertising campaign per quarter.

To employ team building activities for employees at least once a year.

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Group 2
SITUATION ANALYSIS
Internal Environment Analysis
A total IFE score of 2.77 indicates that Krispy Kreme is relatively internally strong with significant competitive
strengths that can be used to address its response ability to the changes in the external environment. Their
doughnut-making equipment and process which give them a large capacity to produce doughnuts is one of their
distinctive competencies, along with their one-of-a-kind taste, special flavor offerings for certain seasons, and a
unique franchise program. Customers can also enjoy watching the entire doughnut-making process through
their store theaters. As core competencies, Krispy Kreme offers a variety of doughnuts and beverages to go
with them. Also, they have access to many different distribution channels in both domestic and international
markets. However, Krispy Kreme has not succeeded in their turnaround strategy where they failed to generate
income and a positive return on equity (ROE).

Financial Analysis
From the computation of Krispy Kremes ratios, they are performing relatively well mainly because of their
massive cost-cutting. However, they are still unable to reach optimal financial performance because of failure to
attain positive figures.
Krispy Kremes current ratio increased from 95.52% in 2006 to 97.74% in 2007. Their quick ratio also increased
from 68.24% to 78.34% in 2007. This shows that they are able to cover their short-term debts and obligations
with the use of their liquid assets such as cash. This is also supported by the decrease of 15% and 10%
respectively, in their short-term and long-term debts from 2005 to 2007. However, another important note is that
Krispy Kreme had an increasing amount of cash from 2005 to 2007 that is not proportionate to their decreasing
total revenues. This shows that they are tying up so much cash in working capital.
Krsipy Kremes inventories have decreased 8% from 2005 to 2007, showing that they have been saving on
storage costs for doughnuts. However, they are not able to sell these quickly as shown in the decrease of their
inventory turnover from 27 days to 32 days in inventory. This may be the cause of the companys decision to
increase its cash in working capital because inventories are not moving quickly. Fixed asset turnover increased
from 2.11 times to 2.46 times in 2007 which means they are utilizing their fixed assets effectively to generate
sales. This is also the result of closing poor performing stores. Total asset turnover remained relatively the same
at 1.21 times. This can be improved when sales are increasing and when some underutilized assets are
disposed, or both actions are done.
Their debt ratio has increased from 73.55% in 2006 to 77.41% in 2007. Although potential creditors do not
prefer high debt ratios, stockholders want more leverage from debt because it increases expected earnings.
Times-interest-earned ratio has increased to -0.98 times which shows that the company has now more
capability to pay its annual interest charges. However, it still needs to improve this performance to achieve a
positive figure; otherwise, Krispy Kreme will face difficulties when it decides to borrow additional funds in the
future.
Their gross profit margin has increased to 15.77% from 12.66% in 2006, and their basic earning power also
went up to -4.30% which is a significant increase from -21.38% in 2006. Net profit margin has also increased to
-8.98% wherein the companys net income became less negative. These significant improvements are mainly
the results of their effective cost-cutting practices as shown in the 84.43% decrease in their cost of revenues
from 2005 to 2007. The companys return on assets also increased from -29.50% to -10.89%. The bottom-line
ratio, return on equity, significantly increased from -75.18% to -44.12% which can be a result of their cost-cutting
and debt leverage.

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Value Chain Analysis
On the primary activities of the value chain, Krispy Kreme has notable considerations in their operations,
specifically production and store count, and in marketing and sales.
Their current production capacity is at 4,000 to 10,000 dozens daily per factory store. Although factory stores
are reducing in number since fiscal 2005, the increase in satellite stores is not yet enough to take advantage of
this production. Factory stores still comprise 74.9% of the total number of stores systemwide. It is good to note
that satellite stores by area developers increased to 286.4% from 2005 because not only can the company save
itself from the development and operations costs, but also area developers are contractually required to develop
a certain number of stores. Similar in the international scene, there has been an increasing number of area
developers which can offer the company better results and more stores to operate.
As for the secondary activities, the general management of Krispy Kreme is relatively efficient. Their structure
complements their strategy with different executive heads for each important function. However, issues in the
human resources department may have been one of the number of factors that caused the failure of their
turnaround strategy. Employees may still have been demoralized after the recent layoff of employees by 31.8%
and the retirement savings dispute back in 2005. Employer brand image may have decreased significantly.
One of their distinctive competencies is their automated doughnut-making equipment which gives them the
capacity to produce up to 10,000 dozens daily. This technological innovation has given them the opportunity for
notable economies of scale.

External Environment Analysis

Krispy Kreme has an EFE rating of 2.22 which means that they are relatively externally weak. They are not able
to take advantage of opportunities well and are not able to avoid significant threats. The company has a great
opportunity to enter the international market, especially in Asia and the Middle East. However, many companies
are also expanding to favorable foreign countries which can lessen Krispy Kremes success in these markets
and hinder its potential growth. The U.S. population, which was the primary market of the company, now prefers
healthy food products and this decreases the customer base of Krispy Kreme doughnuts.

General Environment
The socio-cultural changes in Krispy Kremes international environment contribute a better capability to increase
ROE than the domestic environment. The availability of favorable foreign countries allows the company to
decrease its marketing costs because of acceptability and increase its revenues because of their love for
sweets. However, they will encounter problems in succeeding in the European market, especially in Britain,
because of cultural differences. The domestic market is now becoming relatively unfavorable because of the
growing trend for healthier food choices.
Demographics in the U.S. show that the number of working Americans are increasing thus, it gives rise to the
number of people eating out. Nonetheless, this market is shifting toward healthier choices with the rate of
overweight and potential obesity, and the preference for casual dining. This change can lower the companys
ROE because of decreasing revenues. The global market is now intensified with the global presence of a
growing number of fast-food companies which lowers the companys ability to generate better-than-average
ROE.

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Group 2
Only the economic trends are in favor of Krispy Kreme. Not only is the industrys stock performance improving
but also the food product price inflation is leading to an increase in ROI.

Industry Environment
The doughnut industry is currently highly unattractive in general. The competition among firms is fierce with a
few dominating players who are playing in a slow-growing industry. Plus, because of the nature of its product,
storage costs are significantly high which increases the fierceness of competition. These players are also
considering entering the international market which is now getting crowded with many participants. In addition,
end consumers have low switching costs since they can choose from many brands but still get the same
product doughnut. Also, there is a growing trend of substitutes to snack products as the U.S. market poses a
trend toward healthy choices and the British, among others, are accustomed to their own choices.
The industry remains unattractive in the next 3-5 years. Once the domestic market hits its saturation point, the
players will be more aggressive to stay in the industry to protect their market share. Plus, there will be a surge in
the number of companies competing in the international market. Low-calorie and low-sugar substitutes will also
be strongly marketed and preferred as the need for healthier products increase. With this trend, calorie-packed
doughnuts will be forced to go out of business or shift to developing healthy foods.

Competitive Environment
Dunkin Donuts is the leader among the four dominating players in the doughnut market while Krispy Kreme
comes in third. In terms of U.S. presence, Dunkin Donuts and Starbucks rank first with thousands of stores
across the country. Krispy Kreme and Tim Hortons only have approximately 200 to 300. Krispy Kreme also has
the lowest variety of product offerings compared to the other three because they only sell doughnuts and
beverages while Dunkin Donuts and Tim Hortons offer breakfast and lunch choices, respectively. Tim Hortons is
rated the weakest in global presence as they are only crowding one area which is Canada. Krispy Kreme,
compared to Dunkin Donuts and Starbucks, has a significantly lower number of stores as the two giants have
thousands in different foreign countries.

STRATEGY FORMULATION
The chosen generic strategy is Focused Strategy with Best Value. With this generic strategy, the following are
several alternatives for Krispy Kreme.
Alternative # 1: Market Penetration focusing on increased market share through greater marketing effort and
opening of satellite stores in current geographical areas
The main source of Krispy Kremes advantage is their distinctive product that invited generations of loyal
customers for its one-of-a-kind taste and its special flavor offerings. Considering their financial status, stability
would be an intensive strategy for Krispy Kreme since they are incurring net losses for the past several years.
Marketing efforts would allow the product to be pushed to the market aggressively. Moreover, more stores will
be opened in their existing domestic and international areas. With the increasing food product price inflation in
the U.S., development costs are being pulled down to improve return on investment. Also, there is an increasing
number of two-income households that increases doughnut consumption. The international market, especially
Asia and the Middle East, also poses a great opportunity because they are both fond of sweet snacks and
openness to Western brands which is what Krispy Kreme is.

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The drawback with this alternative is that competitors are fast growing and becoming rapidly global in scope.
Krispy Kreme might be left behind since greater opportunity for further growth and profitability are seen in the
untapped international market.
For this alternative, Krispy Kreme should invite more franchisees to increase its satellite stores in both of its
current domestic and international markets. They must update their UFOC regularly to attract these franchisees
in the U.S. market. Since they already have future stores opening from their development agreement with six
countries mainly found in Asia, they can easily push these area developers to open more satellite stores than
factory stores. This strategy provides KKD to have a major competitive advantage among others through
increasing economies of scale. It takes advantage of the present capacity of the Krispy Kreme factories of 4,000
to 10,000 dozens daily, which can be sold at numerous satellite stores. Intensive advertising and strong
marketing campaigns to its existing markets, especially in the unsaturated international market, will give the
product the exposure it needs. This will be a defensive strategy toward the U.S. casual dining sector which is
growing more rapidly than the quick-service industry. This would later on relate to a significant increase in
market share and total revenues once effectively implemented.
Alternative # 2: Product Development in the U.S. market, creating a healthier doughnut line
With the improving stock prices in the quick-service industry, Krispy Kreme can better serve the U.S. market by
providing a new, healthier doughnut menu. The U.S. market is also moving toward healthy food choices. With
lower calorie content of Dunkin Donuts, Krispy Kreme needs to reduce their calorie content to match or beat its
major competitor. They can also increase the variety of their current doughnuts. Through this, Krispy Kreme
doughnuts will be comparable with Dunkin Donuts and consumers will be forced to think twice on which brand
is of more value.
The main drawback for this alternative is the high cost to be incurred on the research and testing of the
appropriate mix and the new taste of the product. Moreover, the company will face more costs in changing the
process of doughnut-making and introducing this concept to their employees who might resist this change.
With their existing presence in the domestic market where they have thousands of retail outlets including offpremise channels, it will be much easier for Krispy Kreme to introduce and sell this new line. Moreover, Krispy
Kreme already has a vertically integrated structure. Thus, they do not need to create another supply chain for
this new line.
Alternative # 3: Related Diversification focusing on adding new food products such as sandwiches, bagels,
lunches, and more beverages
As the casual-dining sector is gaining share from fast-food chains, it has posed a threat to Krispy Kreme. The
doughnut company should opt to diversify their product offerings. They can add new related products such as
sandwiches, bagels, lunches, and more beverages to their menu as what their competitors Dunkin Donuts and
Tim Hortons are doing.
Krispy Kreme has made a name in the doughnut industry and they could use this to their advantage where loyal
customers no longer need to go to other restaurants. At the same time, Krispy Kreme can attract more
customers with their diversified menu. These new products can significantly improve the sales performance of
the company.
The drawback of this alternative is that Krispy Kreme would have to exert more effort to effectively market this
new menu. Training cost for employees is also very high because they will have to orient them to the diversified
menu. They also have to hire professionals who will recommend the products and recipes to prepare. There is
also a small possibility of cannibalization where they may lose their image as a doughnut company.

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Group 2
Alternative # 4: Market Development in the international market focused on introducing present products into
new geographical areas
This alternative is developed from the opportunities in the international scene. As their U.S. market is going
toward the saturation point, Krispy Kreme will face difficulties in achieving growth relative to their competitors.
The existence and demand from the international markets, especially in Asia, gives the company the growth
opportunity it needs. They are currently serving 10 foreign countries, five of which are in Asia. Therefore, there
are still many untapped geographical markets that may lead to increased market share and revenues. The total
capacity of their production will be fully utilized once they open new factory stores and a proportionate number
of satellite stores in untapped countries.
Through market development, the company will be able to introduce their one-of-a-kind doughnut to new
markets specifically those areas where they have not entered yet. UK, Germany, and Spain are also favorable
markets that can offer growth and profitability to the company. Countries such as China are favorable in terms of
its population and fondness of sweets. Not only sales will increase with their population, but exposure and
market share will also go up. High-income countries such as Singapore will also be a favorable market because
people have the financial capacity to spend on products such as snack foods.
The major drawback of this alternative is the high expenses to be incurred for expansion. There will be
significant costs for marketing, licensing, and building new stores in totally new geographical areas, to name a
few. Given the companys current financial position, the company will have many challenges and difficulties in
getting the funds for implementing the strategy. With their increasing debt-to-asset ratio, they are not very
attractive to creditors. Moreover, the risk is high because of the differing economic conditions of the countries to
be tapped.

STRATEGY EVALUATION
Due to consistent losses that KKD had incurred for the past three years, the company is placed in a weak
financial position. With that, a rating of one is given to alternative four since entering a new market will require
higher investment. On the other hand, a rating of four is given to alternative one since marketing the same
product to the existing markets would not be that costly relative to the other alternatives. Alternative two is rated
as three because cost would be incurred for research and development. While alternative three is rated as two
because aside from research and development, training would also be given to employees in order to produce
such new products entailing additional cost.
For the feasibility of human resource, alternative one is rated as four since KKD would not require much hiring
and training of new employees and they could readily utilize their existing human resource. Alternative four is
rated as three because KKD has already gone through different processes required to enter a new market.
Alternative two is given a rating of two since KKD would need a professional to make the new product menu.
Alternative three is rated as one because the current human resource has no experience yet of producing and
selling the new products.
For technology feasibility, Alternative one is rated as five because they no longer need to acquire new
technology to implement the strategy. Alternative four is given a four because KKD has the existing technology
to enter new markets. Alternative two and three is rated as one because this would require additional
technology to produce the new products.
In terms of long-term profitability, Alternative three and four has the highest rating since it has the best potential
for maximizing returns in a fast-growing industry. Also, having a diverse product offering would generate more
revenues for the company. While Alternative one and two is rated as three since these alternatives may only be
good for a specific period of time. Intense marketing efforts may not necessarily mean long-term sales growth
and developing a new product in the domestic market would not maximize their returns in the future because

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Group 2
they are known for selling sweet doughnuts. Moreover, these alternatives cut their potential for growth since
they are tied up with their existing market knowing the greater potential in the international market.
In terms of competitive advantage, alternative one ranks the highest since it uses their existing competence in
providing doughnuts with one-of-a-kind taste. Alternative four is rated as four since the culture and taste
preference of new geographic markets may not match the products they offer. Alternative two and three is rated
as one because it would not capitalize on their competitive advantage.
Alternative two and four is rated three to consonance or response ability. This is due to the growing number of
health-conscious individuals which alternative two can address and the fast-growing doughnut industry for
alternative four. On the other hand, alternative one and three is rated as two because both alternatives do not
directly respond to the changes in the environment.
In terms of consistency, Alternative four has the highest rating which is four because it is in line with Krispy
Kremes vision. This alternative is a stepping stone for Krispy Kreme to reach its vision while upholding its
mission. Alternative two has been rated as four because even if it is just for the domestic market, it is still in line
with the companys mission. Alternative one has been rated three because it still upholds its mission in
producing distinctive doughnuts but its scope is not that large to be one of the worlds best and well-known
doughnut makers. Alternative three is rated as two since this alternative does not focus on the core product that
KKD offers.

STRATEGY IMPLEMENTATION
To support the activities in Alternative 1, Krispy Kreme will utilize 25% debt and 75% equity. The company shall
undertake the following actions to improve its over-all performance:

Strengthening Brand Name through Marketing

KKD should strengthen and broaden its brand name by being more visible in their existing markets
domestically and internationally. Advertising through billboards, posters and other aggressive print
advertising using the different leading publications within those areas, word of mouth and sponsorship
of events are powerful tools for driving top-of-mind awareness of Krispy Kreme products. The company
will have to complete one advertising campaign per quarter.
Billboard and Posters
KKD should put up billboards in populated areas like city capitals of their existing markets countries.
These advertisements will be placed outside major malls and popular places like parks and arcades or
gaming centers where families and young adults frequent to relax and to have fun. These
advertisements should highlight the distinctive taste of its doughnuts and the areas where they can be
bought.
Print Advertising
For KKD to save on advertisement costs, the company should consider print advertisements rather
than TV advertisements where they will place their ads in newspapers or magazines available
nationwide for each of their geographic markets. This will be much affordable than advertising on
regional or international publications.
Word of Mouth
To further save on advertisement costs, the company must capitalize on the power of word of mouth
and the six degrees of separation. With their continuous improvement of processes and customer
relations, KKD customers will turn into loyal customers and promote Krispy Kreme to their social
circles. The theory of six degrees of separation explains that a very small number of people are linked

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to everyone else in a few steps, and the rest of us are linked to the world through those special few
(Gladwell, 2000). Word of mouth will help significantly increase the number of customer visits and
repeat transactions.
Krispy Kreme can boost customer experience and satisfaction by providing free newspapers,
magazines, and other reading materials to dining customers. They will also introduce mobile feedback
systems where customers can send their feedbacks, comments, and suggestions through their mobile
phone or event through telephone. This can provide convenience to the customers since they do not
have to spend time filling up forms and can also benefit the company with cost savings for printing
papers.
Moreover, employing team building activities at least once a year for employees will help boost their
morale and at the same time, update their employees with the current business processes and
policies. The employees are considered to be the first customer circle of the company; therefore, once
the inner circle is improved and empowered, they can easily create and strengthen relationships with
end consumers the outer circle. This will make all customers employees and end consumers feel
that they are being valued by the company and can spread a great experience that other doughnut
companies could not provide.
Sponsorship of events
KKD will sponsor events especially those that are related to their target market such as parties and
launchings. This will enhance the companys exposure to reach a larger customer base thus increasing
total revenues. In addition, Krispy Kreme will also co-sponsor events with businesses that are rapidly
growing. This way, they can share the costs of pushing their products and at the same time, they will
be able to use the partner companys image to increase Krispy Kremes own image.

Using e-commerce to increase brand popularity and possibly increase Market Share
The company can gain more sales and popularity through venturing into internet marketing and selling.
They can use the power of e-commerce which is available anytime, anywhere and removes
geographical boundaries to reach a significant number of customers at very low cost and shortest time.
Krispy Kreme can create a website that advertises and sells their products online to be done through
automatic and free membership registration. The company will aim to acquire memberships of at least
10% of each area population in the U.S. and in foreign countries. Members with bulk orders who are
located within an estimated kilometer radius can enjoy free delivery. Otherwise, they can simply order
online and pick their orders up at the nearest stores without the hassle of lining up, waiting for orders,
and the possibility of stock-outs for their favorite flavors. With this convenience, more people are being
pulled to Krispy Kreme.
To attain this, Krispy Kreme will have the web design and web development outsourced to attain
greater value (benefit over cost). But they will still have to train their staff and crew in using computer
software and tools to access and manage this online venture within two months prior to the launching
of the website.

Increase franchise stores in existing markets

To improve the companys presence in the market they are currently serving, KKD will increase the
number of franchise stores, preferably satellite stores targeting at least two stores per month in a year
for both domestic and international areas. This increase in franchise stores will enable the company to
increase their revenues. Expanding in their existing markets will entail lesser cost than expanding to
other countries because they have already established their name and have already done their
research and analysis in the macroenvironment of these countries. More stores also mean

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convenience for customers in seeking and purchasing Krispy Kreme doughnuts which can increase
customer satisfaction and revenues.
Procedures for Assessing Strategy:

Checking, analyzing, and taking actions according to customer feedback.

Annual systemwide meetings to debrief the past fiscal year and to brief the entire workforce for the
coming fiscal year. Quarterly systemwide meetings to address key changes. Monthly systemwide
meetings to make sure the companys goals are met. Weekly company meetings to monitor
operational activities. With these regular meetings, they can be more effective in addressing key
changes and create strategies around these changes.
Check financial reports quarterly to determine financial progress.

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Appendix 1: Vertical Analysis of Income Statements

Total Revenues
Cost of Revenue
Gross Profit
Operating Expenses
Research & Development
Selling & Administrative
Non-recurring
Others
Total Operating Expenses
Operating Income
Income from Continuing
Operations
Total Other
Income/Expenses Net
EBIT
Interest Expense
EBT
Tax Expense
Minority Interest
Net Income from Continuing
Op.
Non-Recurring
Discontinued Operations
Extraordinary Item
Effect of Accounting
Changes
Other Items
Net Income
Preferred Stock
NIAC

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Income Statement - Vertical Analysis

fiscal 2007
fiscal 2006
461,195.00
543,361.00
389,379.00
84.43%
474,591.00
87.34%
71,816.00
15.57%
68,770.00
12.66%

fiscal 2005
707,766.00
597,110.00
110,656.00

84.37%
15.63%

48,860.00
28,491.00
21,046.00
98,397.00
(26,581.00)

10.59%
6.18%
4.56%
21.34%
-5.76%

67,727.00
90,895.00
28,920.00
187,542.00
(118,772.00)

12.46%
16.73%
5.32%
34.52%
-21.86%

56,472.00
161,847.00
31,934.00
250,253.00
(139,597.00)

7.98%
22.87%
4.51%
35.36%
-19.72%

6,732.00

1.46%

2,603.00

0.48%

(7,157.00)

(19,849.00)
20,334.00
(40,183.00)
1,211.00
-

4.41%
0.26%
0.00%

(41,394.00)

(116,169.00)
20,211.00
(136,380.00)
(776.00)
4,181.00

3.72%
-0.14%
0.77%

(131,423.00)

(146,754.00)
6,875.00
(153,629.00)
9,674.00
6,249.00

0.97%
1.37%
0.88%

(157,054.00)

0.00%
0.00%

0.00%
0.00%

(40,054.00)
-

0.00%

0.00%

(1,231.00)

(41,394.00)
(41,394.00)

0.00%

(131,423.00)
(131,423.00)

0.00%

(198,339.00)
(198,339.00)

-8.98%

-1.01%

-24.19%

-5.66%
0.00%
-0.17%
0.00%

-28.02%

Page | 11

Group 2
Appendix 2: Horizontal Analysis of Income Statements

Total Revenues
Cost of Revenue
Gross Profit
Operating Expenses
Research & Development
Selling & Administration
Non-recurring
Others
Total Operating Expenses
Operating Income
Income from Continuing Operations
Total Other Income/Expenses Net
EBIT
Interest Expense
EBT
Tax Expense
Minority Interest
Net Income from Continuing Op.
Non-Recurring
Discontinued Operations
Extraordinary Item
Effect of Accounting Changes
Other Items
Net Income
Preferred Stock
NIAC

11/24/2016 17:4512

Income Statement - Horizontal Analysis

fiscal 2007
fiscal 2006
461,195.00
-34.84%
543,361.00
389,379.00
-34.79%
474,591.00
71,816.00
-35.10%
68,770.00
48,860.00
28,491.00
21,046.00
98,397.00
(26,581.00)
6,732.00
(19,849.00)
20,334.00
(40,183.00)
1,211.00
(41,394.00)
(41,394.00)
(41,394.00)

-13.48%
-82.40%
-34.10%
-60.68%
-80.96%
-194.06%
-86.47%
195.77%
-73.84%
-87.48%
-73.64%

-79.13%
-79.13%

-23.23%
-20.52%
-37.85%

fiscal 2005
707,766.00
597,110.00
110,656.00

67,727.00
90,895.00
28,920.00
187,542.00
(118,772.00)

19.93%
-43.84%
-9.44%
-25.06%
-14.92%

56,472.00
161,847.00
31,934.00
250,253.00
(139,597.00)

2,603.00
(116,169.00)
20,211.00
(136,380.00)
(776.00)
4,181.00
(131,423.00)

-136.37%
-20.84%
193.98%
-11.23%
-108.02%
-33.09%
-11.00%

(7,157.00)
(146,754.00)
6,875.00
(153,629.00)
9,674.00
6,249.00
(157,054.00)

(131,423.00)
(131,423.00)

-100.00%
0.00%
-100.00%
0.00%
-29.52%

(40,054.00)
(1,231.00)
(198,339.00)
(198,339.00)

-29.52%

Page | 12

Group 2
Appendix 3: Horizontal Analysis of Balance Sheets
Balance Sheet Horizontal Analysis
fiscal 2007

fiscal 2006

36,242
64,227
26,162
5,187
131,818
4,261
168,654
28,094
1,900
9,226
5,539
349,492

16,980
83,546
41,985
4,514
147,025
14,734
205,579
29,181
2,925
3,584
7,827
410,855

-11.16%
582.98%
-14.45%

27,686
49,621
28,591
13,465
119,363
9,618
309,214
32,692
4,211
4,034
1,146
480,278

149,373
4,486

144.64%
-90.67%

61,058
48,097

ASSETS
Current Assets
Cash
Short-term Investments
Net Accounts Receivable
Inventory
Others
Total Current Assets
Long-term Investments
Plant, Property, Equipment
Goodwill
Intangible Asset
Accumulated Amortization
Other Assets
Deferred Long-term Asset Charges
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts Payable
Current Debt
Others
Total Current Liabilities
Long-term Debt
Other Liabilities
Deferred Long-term Liabilities Charges
Minority Interest
Negative Goodwill
TOTAL LIAB
SHAREHOLDERS EQUITY
Misc Stocks
Redeemable Preferred
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Shareholders Equity
TOTAL SHAREHOLDERS EQUITY
TOTAL LIABILITIES & SHAREHOLDERS
EQUITY

11/24/2016 17:4512

133,140
1,730
134,870
105,966
25,656
4,038
270,530
310,942
(233,246)
1,266
78,962
349,492

30.90%
29.44%
-8.50%
-61.48%
10.43%
-55.70%
-45.46%
-14.06%
-54.88%
128.71%
383.33%
-27.23%

118.05%
-96.40%
100.00%
14.65%
-9.74%
3.19%
100.00%
13.03%

5.19%
322.16%

117.53%
-67.23%
-27.23%

60
153,919
147,417
848
302,184
298,255
(191,010)
1,426
108,671
410,855

fiscal 2005

-38.67%
68.37%
46.85%
-66.48%
23.17%
53.19%
-33.52%
-10.74%
-30.54%

-99.29%
30.84%
25.57%
-78.33%
100.00%
26.26%

0.89%
245.72%

145.02%
-54.90%
-14.45%

8,480
117,635
117,397
3,913
390
239,335
295,611
(55,250)
582
240,943
480,278

Page | 13

Group 2
Appendix 4: Key Financial Ratios and Their Trends
Ratios
LIQUIDITY
Current Ratio
Quick Ratio

2007

2006

2005

97.74%
78.34%

95.52%
68.24%

101.47%
77.16%

77.41%
342.61%

73.55%
278.07%

49.83%
99.33%

134.20%
-0.98x

135.65%
-5.75x

48.72%
-21.35x

ASSET MANAGEMENT
Inventory Turnover
Fixed Asset Turnover
Total Asset Turnover

11.43x
2.46x
1.21x

13.45x
2.11x
1.22x

PROFITABILITY
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Asset
Return on Equity

15.57%
-4.30%
-8.98%
-10.89%
-44.12%

12.66%
-21.38%
-24.19%
-29.50%
-75.18%

DEBT MANAGEMENT
Debt-to-Asset Ratio
Debt-to-Equity Ratio
Long-term Debt- to-Equity
Ratio
Times Interest Earned

11/24/2016 17:4512

15.63%
-20.73%
-28.02%

Page | 14

Group 2
Appendix 5: HA/VA of Store Count
Horizontal Analysis
2007

2006

2005

By Owner:
Company Store
Consolidated Franchisees
Associates - Franchisees
Area Developers - Franchisees
Systemwide Total

113
0
52
230
395

-13.7%
-100.0%
-11.9%
21.7%
-8.8%

118
15
57
212
402

-9.9%
-72.2%
-3.4%
12.2%
-7.2%

131
54
59
189
433

By Type:
Factory Stores - Company
Factory Stores - Consolidated
Factory Stores - Associates
Factory Stores - Area Developers

108
0
43
145

-12.9%
-100.0%
-20.4%
-13.2%

113
15
47
148

-8.9%
-70.6%
-13.0%
-11.4%

124
51
54
167

Satellites - Company
Satellites - Consolidated
Satellites - Associates
Satellites - Area Developers
Systemwide Total

5
0
9
85
395

-28.6%
-100.0%
80.0%
286.4%
-8.8%

5
0
10
64
402

-28.6%
-100.0%
100.0%
190.9%
-7.2%

7
3
5
22
433

By Location:
Domestic - Company
Domestic - Consolidated
Domestic - Associates
Domestic - Area Developers
International - Company
International - Consolidated
International - Associates
International - Area Developers
Systemwide Total

107
0
52
113
6
0
0
117
395

-18.3%
-100.0%
-11.9%
-31.5%

112
15
57
150
6
0
0
62
402

-14.5%
-63.4%
-3.4%
-9.1%

131
41
59
165
0
13
0
24
433

11/24/2016 17:4512

-100.0%
387.5%
-8.8%

-100.0%
158.3%
-7.2%

Page | 15

Group 2
Vertical Analysis
2007

2006

By Owner:
Company Store
Consolidated Franchisees
Associates - Franchisees
Area Developers - Franchisees
Systemwide Total

113
0
52
230
395

28.6%
0.0%
13.2%
58.2%

118
15
57
212
402

29.4%
3.7%
14.2%
52.7%

131
54
59
189
433

30.3%
12.5%
13.6%
43.6%

By Type:
Factory Stores - Company
Factory Stores - Consolidated
Factory Stores - Associates
Factory Stores - Area Developers
Satellites - Company
Satellites - Consolidated
Satellites - Associates
Satellites - Area Developers
Systemwide Total

108
0
43
145
5
0
9
85
395

27.3%
0.0%
10.9%
36.7%
1.3%
0.0%
2.3%
21.5%

113
15
47
148
5
0
10
64
402

28.1%
3.7%
11.7%
36.8%
1.2%
0.0%
2.5%
15.9%

124
51
54
167
7
3
5
22
433

28.6%
11.8%
12.5%
38.6%
1.6%
0.7%
1.2%
5.1%

By Location:
Domestic - Company
Domestic - Consolidated
Domestic - Associates
Domestic - Area Developers
International - Company
International - Consolidated
International - Associates
International - Area Developers
Systemwide Total

107
0
52
113
6
0
0
117
395

27.1%
0.0%
13.2%
28.6%
1.5%
0.0%
0.0%
29.6%

112
15
57
150
6
0
0
62
402

27.9%
3.7%
14.2%
37.3%
1.5%
0.0%
0.0%
15.4%

131
41
59
165
0
13
0
24
433

30.3%
9.5%
13.6%
38.1%
0.0%
3.0%
0.0%
5.5%

11/24/2016 17:4512

2005

Page | 16

Group 2
Appendix 6: IFE Matrix

STRENGTHS
1. KKD products can be found at thousands of retail outlets
2. Stock price rebounded to over $8 a share
3. Increasing number of franchises in the international
scene brought more revenues to KKD, and a 26%
increase in sales in equipment, furniture, fixtures, and
similar items to the KKD Supply Chain
4. KKD is vertically integrated in three segments, giving
them the control over quality
5. Strong marketing and CSR efforts for community
fundraising projects and for opening off-premise channels
to gain more exposure and sales
6. KKD has a distinctive product that invited generations of
loyal customers for its one-of-a-kind taste and its
special flavor offerings
7. Exposure in 10 foreign countries with an on-going
development of 200 additional stores in the Middle East,
Hong Kong, Macau, Tokyo, the Philippines and Indonesia
8. Effective cost-cutting practices including closing of poor
performing stores, improving Net Income
9. Automatic doughnut-making equipment that gives them
the capacity of 4,000 dozens to 10,000 dozens per
factory store daily
WEAKNESSES
1. Despite their turnaround strategy, KKD still incurred a net
loss for the second quarter of fiscal 2008
2. Company brand image greatly suffered from legal issues
back in 2005
3. Failure to update registered Uniform Franchise Offering
Circular in the U.S.
4. Revenues for company stores and supply chain
decreased
5. Reduction of labor force of 31.83% in two years which
further lowered their employer brand image
6. KKD doughnuts have higher calorie content compared to
its major competitors
7. Inventory turnover decreased to 11.43 times.
Total

11/24/2016 17:4512

Weigh
t

Rating

Weighted Score

0.05
0.03

4
3

0.20
0.09

0.08

0.32

0.03

0.09

0.03

0.09

0.12

0.48

0.07

0.28

0.1

0.40

0.05

0.20

0.15

0.15

0.02

0.04

0.04

0.04

0.06

0.12

0.07

0.07

0.04
0.06
1

2
2

0.08
0.12
2.77

Page | 17

Group 2
Appendix 7: Tabulation of Key Trends/Changes in the Macroenvironment
Classification

Nature of Trend/Change in the Macroenvironment

Western brands in Asia and in the Middle East are

popular.

Socio-Cultural

Europeans are loyal to their own doughnut brands and

have different eating habits than the American market.

The Asian population is known for their fondness of

sweets.

There is a trend for healthier food choices in the U.S.

Demographic
s

More Americans are now working and with it is an

increasing number of people eating out.
33.3% of American adults are overweight.
The older, wealthier population in the U.S. market
prefers casual dining

Economic

Stock prices in the QSR industry are improving.

Food product price inflation is still increasing thus pushing
companies to decrease their development costs.

Global

A number of fast-food companies are considering

international expansion as a growth opportunity.

11/24/2016 17:4512

Impact on the Firms Ability to

Generate Better-than-Average
Returns (ROE)
Increased Net Profit from lower
marketing costs because of high
acceptability. Increase in
revenues from a larger customer
base. Increased Net Profit and
revenues will lead to increased
ROE.
Lower revenues since Europeans
are accustomed to their own taste
of doughnuts. It also lowers Net
Profit as there will be a need to
develop new doughnut lines and
strong marketing efforts to cater
to this region. Thus, it lowers the
ROE.
Higher revenues that will
contribute to higher ROE.
Decreased revenues because
customers are now going into the
healthy substitutes, which will
lower ROE. It will also lower Net
Profit as there is a possibility of
developing a healthier product
menu, which also lowers ROE.
Increased revenues that will
increase ROE.
Lower revenues as customers
tend to shift to healthier foods
thus, lower ROE.
Decreased revenues will lower
ROE.
Attractiveness of the industry
stocks is improving which can
attract more stockholders,
increasing ROE.
Increase in ROI will lead to an
increase in ROE.
Decreases revenues and Net
Profit as KKD has to compete in
an intensified global market.
Thus, it lowers their ROE.

Page | 18

Group 2
Appendix 8A: Industry Analysis (Current)
Competitive Force

Nature of
Competitive
Force

Intensity of Rivalry
among Competing Firms

High

Threat of New Entrants

Low

Threat of Substitutes
High

Bargaining Power of
Buyers
Bargaining Power of
Suppliers
Overall Assessment

11/24/2016 17:4512

High
Low

Supporting Case Details

Few dominating players with a
significant number of stores in
the domestic and international
scene
Slow industry growth as
determined by stable same-store
sales growth in the domestic
market
High strategic stakes in the U.S.
market
High storage costs due to the
industrys perishable offerings
All major Europeans and American
doughnut chains are slowly
entering the Asian market thus,
this segment is becoming
crowded
High entry barrier because of
strong retaliation from domestic
players
Increasing trend of Americans
being overweight which leads to
consumers seeking for healthier
or low-calorie food products
British market have biscuits as
substitutes for other snack
products
Low switching cost for end
consumers
Raw materials are commodities so
companies face low switching
cost

General Impact in
Attractiveness

Highly Unattractive

Highly Attractive

Highly Unattractive

Highly Unattractive
Highly Attractive
Highly Unattractive

Page | 19

Group 2
Appendix 8B: Industry Analysis (Next 3-5 Years)
Competitive Force

Nature of
Competitive
Force

Intensity of Rivalry
among Competing Firms

Threat of New Entrants

Threat of Substitutes

High
Low
High

Bargaining Power of
Buyers
High

Bargaining Power of
Suppliers
Overall Assessment

11/24/2016 17:4512

Low

Supporting Case Details

Domestic market will reach its
saturation point
Increased number of players in the
international market
High entry barrier
Increasing number of healthy, lowcalorie, and low-sugar substitutes
Bargaining power of buyers in the
domestic market does not
change significantly
Buyers can choose from a variety
of brands so switching cost is low
No change

General Impact in
Attractiveness

Highly Unattractive
Highly Attractive
Highly Unattractive

Highly Unattractive

Highly Attractive
Highly Unattractive

Page | 20

Group 2
Appendix 9: Competitor Analysis
Tim Hortons
Critical
Success
Factors
US
Stores
Product
Offers
(Variety)
Global
Presence
Total

Dunkin Donuts

Starbucks

Krispy Kreme

Weigh
t

Ratin
g

Weighte
d Score

Ratin
g

Weighte
d Score

Ratin
g

Weighte
d Score

Ratin
g

Weighte
d Score

0.25

0.50

1.00

1.00

0.50

0.35

1.40

1.40

1.05

0.70

0.40

0.40

1.60

1.60

0.80

1.00

11/24/2016 17:4512

2.3

4.0

3.65

2.0

Page | 21

Group 2
Appendix 10: EFE Matrix
OPPORTUNITIES
1. Asia and the ME are favorable markets for KKD
offerings, along with UK, Germany, and Spain.
2. Industry stock prices are improving
3. Growth in two-income households that will lead to
an increase in snack-food consumption and
doughnut sales growth
4. Since 2004, development costs has been
decreasing in the U.S.
THREATS
1. Casual-dining sector is gaining share from fastfood chains and it is expected to grow
2. Healthy food choice is the growing trend
3. Fast expansion of competitors (e.g. Dunkin
Donuts) in the domestic and international market
4. Cultural differences among countries make
operations and doughnut consumption varied,
which makes things difficult to control
5. Europeans and American doughnut chains are
expanding in the international market, especially
Asia
Total

11/24/2016 17:4512

Weight

Rating

Weighted Score

0.15
0.05

3
4

0.45
0.20

0.15

0.30

0.08

0.32

0.12
0.15

1
1

0.12
0.15

0.15

0.45

0.06

0.12

0.09
1

0.27
2.38

Page | 22

Group 2
Appendix 11: Strategy Formulation Matrix I (SWOT Matrix)
STRENGTHS
1. KKD products can be
found at thousands of
retail outlets
2. Stock price rebounded
to over $8 a share
3. Increasing number of
franchises in the
international scene
brought more
revenues to KKD, and
a 26% increase in
sales in equipment,
furniture, fixtures, and
similar items to the
KKD Supply Chain
4. KKD is vertically
integrated in three
segments, giving them
the control over quality
5. Strong marketing and
CSR efforts for
community fundraising
projects and for
opening off-premise
channels to gain more
exposure and sales
6. KKD has a distinctive
product that invited
generations of loyal
customers for its oneof-a-kind taste and its
special flavor offerings
7. Exposure in 10 foreign
countries with an ongoing development of
200 additional stores
in the Middle East,
Hong Kong, Macau,
Tokyo, the Philippines
and Indonesia
8. Effective cost-cutting
practices including
closing of poor
performing stores
9. Automatic doughnutmaking equipment
that gives them the
capacity of 4,000
dozens to 10,000
dozens per factory

11/24/2016 17:4512

WEAKNESSES
1. Despite their
turnaround strategy,
KKD still incurred a
net loss for the second
quarter of fiscal 2008
2. Company brand
image greatly suffered
from legal issues back
in 2005
3. Failure to update
registered Uniform
Franchise Offering
Circular in the U.S.
4. Revenues for supply
chain decreased
because of local
merchants serving
their international
stores
5. Reduction of labor
force of 31.83% in two
years which further
lowered their
employer brand image
6. KKD doughnuts have
higher calorie content
compared to its major
competitors

Page | 23

Group 2
OPPORTUNITIES
1. Asia and the ME are
favorable markets for
KKD offerings, along
with UK, Germany,
and Spain.
2. Industry stock prices
are improving
3. Growth in two-income
households that will
lead to an increase in
snack-food
consumption and
doughnut sales growth
4. Decreasing
development costs in
the U.S.
THREATS
1. Casual-dining sector
is gaining share from
fast-food chains and it
is expected to grow
2. Since 2004, there has
been an increasing
trend of food product
price inflation
3. Healthy food choice is
the growing trend
4. Fast expansion of
competitors (e.g.
Dunkin Donuts) in the
domestic and
international market
5. Cultural differences
among countries
make operations and
doughnut
consumption varied,
which makes things
difficult to control
6. Europeans and
American doughnut
chains are expanding
in the international
market, especially
Asia

11/24/2016 17:4512

store daily
S-O STRATEGIES
Market penetration in the U.S.
market focusing on advertising
efforts and increasing the number
of franchised satellites (S1-2, S89, O2-4)
Increase stores in the international
market, especially Asia (S3, S6-7,
S9, O1)

W-O STRATEGIES
Update UFOC to increase the
number of franchised satellites in
the U.S. (W3-4,W7, O3)
Market penetration in the Asian
market focusing on store openings
(W6, O1)

S-T STRATEGIES
Check the feasibility of product
development in the U.S. market
focusing on creating a healthier
doughnut line (S1, S4-5, T3)

W-T STRATEGIES
Market penetration in the U.S.
market focusing on aggressive
advertising and close poorperforming stores (W1-2, T1, T4)

Increase number of stores current

in the foreign countries being
served (S1, S6, T4, T6)

Conduct feasibility study on other

foreign countries that are not
currently being served to identify
the most favorable to serve (W1,
W3, T4, T6)

Related diversification offering

sandwiches, bagels, etc. (S1, T1)

Page | 24

Group 2
Appendix 12: Strategy Formulation Matrix II (IE Matrix)

3.0

2.0

1.0

3.
0

Intensive/Integrative

Intensive/Integrative

Intensive

2.
0

Intensive/Integrative

Intensive

Divest

1.
0

Intensive

Divest

Divest

Legend
Company Stores = 50%

11/24/2016 17:4512

KK Supply Chain = 27%

Franchise = 23%

Page | 25

Group 2
Appendix 13: Strategy Evaluation Matrix

Criteria

Alternative 1
Raw
Wtd
Sc.
Sc.

% Weight
I. Feasibility
a. Financial
condition
0.1
4.0
b. Human
resources
0.1
4.0
c. Technology
0.1
5.0
II. Long-term
Profitability
0.2
3.0
III. Advantage
0.2
5.0
IV. Consonance
0.2
2.0
V. Consistency
0.1
3.0
Totals
1.0
Alternative 1
Market Penetration
Alternative 2
Product Development
Alternative 3
Related Diversification
Alternative 4
Market Development

11/24/2016 17:4512

Alternative 2
Raw
Wtd
Sc.
Sc.

Alternative 3
Raw
Wtd
Sc.
Sc.

Alternative 4
Raw
Wtd.
Sc.
Sc.

0.4

3.0

0.3

2.0

0.2

1.0

0.1

0.4
0.5

2.0
1.0

0.2
0.1

1.0
1.0

0.1
0.1

3.0
4.0

0.3
0.4

0.6
1.0
0.4
0.3
3.6

3.0
1.0
3.0
4.0

0.6
0.2
0.6
0.4
2.4

4.0
1.0
2.0
2.0

0.8
0.2
0.4
0.2
2.0

4.0
4.0
3.0
5.0

0.8
0.8
0.6
0.5
3.5

Page | 26

Group 2
Appendix 14: Balanced Scorecard

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Page | 27

Group 2
Appendix 15: Gantt Chart Strategy Implementation
ID

Key Activities

Division Responsible

Venturing into E-Commerce

Create a Website
Create Database
Test Functionality of Website and Database in test areas
Improving Website and Database Functionality
Train Employ ees on the use of Website and Database
Systemwide Launching of Website
Full Implementation and Monitoring
Evaluation of Website Effectiveness
Intensive Marketing
Preparation of Advertising Campaign for one quarter
Presentationof Campaign to the Board for approval
Production of Campaign Materials
Full Implementation and Monitoring
Evaluating Effectiveness of Campaign
Increasing Franchise and Satellite Stores
Conduct Research on feasible areas for stores and demand of franchisees
Present Study to the Board for approval
Preparation of Lincensing Rights and Legal Documents
Preparation of Strategy and Plan for increasing stores
Full Implementation and Monitoring
Evaluation of the Implemented Strategy

Marketing
Outsourced
Outsourced
Mktg. & Oper.
Outsourced
HR & Oper.
Mktg.
Mktg. & Oper.
Mktg. & Sales
Mktg. & Ad. Agency
Mktg. & Ad. Agency
Mktg. & Ad. Agency
Mktg.
Mktg.
Admin.

2
3
4
5
6
7
8
9
13
29
30
31
32
33
34
35
36
37
38
78
117

11/24/2016 17:4512

Y-2

Research Consultant
Research Consultant & Admin.
Admin.
Mktg. & Admin.
Mktg. & Admin.
Admin.

Y-1
Y1
Y2
Y3
Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3
Outsourced
Outsourced
Mktg. & Oper.
Outsourced
HR & Oper.
Mktg.
Mktg. & Oper.

Mktg. & Ad. Agency

Mktg. & Ad. Agency
Mktg.
Mktg.
Admin.

Research Consultant
Research Consultant & Admin.
Admin.

Y4
Qtr 4 Qtr 1 Qtr 2 Qtr 3