Benefits, Costs, Risks Analysis of Opening a Krispy Kreme Franchise in Sweden

1385 Words Jan 22nd, 2014 6 Pages
Benefits, Costs, Risks Analysis of opening a Krispy Kreme Franchise in Sweden

Mia T. Barton
Norma Chapman
Carissa Godsalve
Tina Ricketts
BMGMT 102
Professor MacKaben
November 12, 2013

Table of Contents

Introduction Barton, MT
Summary of Findings Barton, Chapman, Godsalve, Ricketts
Benefits
Costs
Risks
Final Analysis

Benefits, Costs, Risks Analysis of opening a Krispy Kreme Franchise in Sweden

Introduction July 13, 1937 marked the day that Vernon Rudolph opened his doors in Winston Salem, North Carolina and started selling Krispy Kreme doughnuts. Initially his business plan
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The currency of choice is their krona and not the euro. They are therefore one of the countries within European Union not subject to the decrees of the European Central Bank.

Within Sweden there are no major concerns about protection of property rights and the enforcement of contracts. Intellectual property rights protection is up to par with world standards and expropriation is also not a cause for concern. Swedish courts are independent and impartial so should arbitration be necessary, investors can anticipate justice without corruption. The country ranked high in the World Justice Project Rule of Law Index. It ranks countries on areas such as government accountability, access to justice, protection of rights and crime and corruption prevention.

The Stockholm location was an important factor endowment. It is the capital of the country, the most populous and urban therefore potentially bringing in better revenue. There are currently no foreign investors in the doughnut business in Sweden. This gives the partners first-mover advantages. Competitively, there are numerous small pastry shops throughout Sweden. The largest pastry company located in Sweden does not appear to have anything similar to doughnuts on their menu. For the coffee market, Starbucks is got the jump on the first-movers advantage and will be good competition. The Krispy Kreme doughnut is therefore

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