Starbucks and Krispy Kreme

Paper Summary:

This paper explains that Krispy Kreme's unique market is the company's display of its manufacturing process in which customers are allowed to look at the entire process of baking doughnuts through a large display window within the store. The author points out that both Krispy Kreme and Starbucks realize the importance of involving only partners with the same business philosophies, which were inherent in the original start-up of the companies. The paper relates that Starbucks' training appears to be much more effective than Krispy Kreme's program because it is designed to focus specifically on training new employees to meet customer needs. Krispy Kreme's strategy, on the other hand, appears to be more focused upon monetary profit than Starbucks' risk-taking strategies for the sake of long-term customer relations.

Table of Contents:
Issues
Strategies
Outcomes

From the Paper:

"Recruiting and training the correct employee, for example, has wide scale effects upon customer relations. Excellent customer relations result in returning customers. Indeed, regular customers to Starbucks stores have experienced the friendly disposition of staff who become familiar with their names and their favorite beverages. To reach this level of excellence, employees are trained thoroughly in coffee history, coffee preparation, customer relations, and other skills. New employees receive at least 24 hours of training in the first two to four weeks of their employment."

Sample of Sources Used:

• Cone, Edward (2002, Nov. 1). Krispy Kreme's Essential Ingredient. CIO Insight. http://www.baselinemag.com/print_article/0,3668,a=33370,00.asp
• International Guild of Hospitality & Restaurant Managers (2001). Starbucks Corporation. http://www.hospitalityguild.com/Financial/Restaurants/Starbucks%20Corporation.htm
• O'Sullivan, Kate (2005, June 1). "Kremed! The rise and fall of Krispy Kreme is a cautionary tale of ambition, greed, and inexperience." CFO Magazine. http://www.cfo.com/printable/article.cfm/4007436
• Thompson, A.A., Shah, A.J. & Hawk, T.F. (2004). "Starbucks in 2004: Driving for Global Dominance".
• Starbucks Corporation (2004).

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