The UK “Fast Food” or Quick Service Restaurant (QSR) industry was worth £33.5bn in 2014. Krispy Kreme (KK) is a leading branded retailer and wholesaler of doughnuts and baked goods and has recently been voted one of the most reputable QSR restaurants, despite a poor corporate governance history. KK's business includes the ownership and franchise of KK stores espousing good relationships with employees and the community via a variety of projects. This report analyses KK stakeholder relationships and compares the rhetoric to reality.
KK's history consists of company stores, domestic and international franchises plus the supply of doughnut ingredients and machinery.
Independent franchisees contributed 34% of total revenues for 2015. Failure of franchisees to successfully operate could materially affect reputation and profits, as the public view actions taken by franchisees as those undertaken by KK.
Table of Contents
1. Introduction
2. Main Body
2.1 Organisation Profile
2.2 Stakeholder Theory
2.3 Stakeholder Mapping & Analysis
2.4 Conflicts Between Stakeholders
2.5 Management of Stakeholders
2.6 Limitations of Stakeholder Analysis
2.7 Advantage/Disadvantages of Stakeholder Analysis
3. Recommendations
4. Conclusions
Objectives and Topics
This report aims to analyze the stakeholder relationships of Krispy Kreme Doughnuts Inc. by applying academic mapping models to contrast the company's public rhetoric with its operational reality. The study evaluates how different stakeholder groups exert power and influence, ultimately providing recommendations on how the business can better align its strategic direction with stakeholder needs to ensure long-term sustainability and profitability.
- Organization profile and financial performance analysis
- Application of Stakeholder Theory to the QSR industry
- Stakeholder mapping using Mendelow’s Matrix
- Analysis of conflicts between internal and external stakeholders
- Evaluation of stakeholder management and limitation strategies
Extract from the Book
2.3 Stakeholder Mapping & Analysis
Stakeholders can be primary, secondary and key stakeholders; however the power of those is not dependant on where they sit within the matrix but whether they can garner active support from others. The mapping technique reveals the behavioural aspects of each of the Stakeholders (Post, et al., 2002), as well as anticipating the consequences of changes in activities.
To get the “big picture”, a market analysis (e.g. Ansoff’s) would need to be undertaken first followed by stakeholder analysis. However for this report, Mendelow’s Matrix has been conducted with a brief overview of the Power/ Dynamism Matrix and the Power Legitimacy Urgency Matrix subsequently enumerated.
Mendelow’s Matrix although subjective is the most popular method used for stakeholder analysis. Mendelow initially espoused the benefits of environmental scanning and the impact of the stakeholder concept in 1981 (Mendelow, 1981). Mendelow's paper was almost prophetic in its origins followed by cases of Polypeck, Maxwell, etc. throughout the 80s/90s (Brown & Laverick, 1994). Mendelow further advocated the importance of setting corporate goals and measuring organisational effectiveness (Mendelow, 1983). Considerable debate has occurred as to what constitutes a stakeholder.
Mendelow created the Interest/Power Matrix where stakeholders are assigned positions concerning interest and power in the organisation’s activities (Mendelow, 1991). Relationships between KK and interested parties were identified; taking into account that stakeholders do not hold equal power or interest and that their position may shift by amassing support elsewhere.
Summary of Chapters
1. Introduction: Outlines the scope of the Quick Service Restaurant industry and introduces Krispy Kreme as a major entity requiring a stakeholder relationship audit.
2. Main Body: Provides a comprehensive organizational overview, theoretical background on stakeholders, and detailed application of various mapping models to identify strategic challenges.
3. Recommendations: Suggests practical steps for enhancing corporate reputation and improving stakeholder communication to mitigate risks such as legislative changes and ingredient concerns.
4. Conclusions: Synthesizes the findings, noting that current corporate statements are often more rhetorical than realistic, and emphasizes the need for data-driven, continuous stakeholder assessment.
Keywords
Stakeholder Mapping, Krispy Kreme, Mendelow’s Matrix, Corporate Governance, QSR Industry, Stakeholder Theory, Business Strategy, Risk Management, Financial Performance, Organizational Profile, Corporate Social Responsibility, Power/Interest Matrix, Stakeholder Conflicts, Investor Relations, Brand Reputation
Frequently Asked Questions
What is the primary focus of this report?
The report examines the stakeholder relationships of Krispy Kreme Doughnuts Inc. to determine if the company's communicated values align with its actual operational practices and stakeholder interactions.
Which theoretical models are used for the analysis?
The study primarily utilizes Mendelow’s Interest/Power Matrix, alongside an overview of the Power/Dynamism Matrix and the Power, Legitimacy, and Urgency Model.
What is the core objective of the research?
The goal is to provide a mapping analysis that helps the organization align its business strategy with the needs of diverse stakeholder groups to achieve sustainable profitability.
What methodology is applied in the research?
The research adopts a qualitative approach, using secondary data and business models to categorize stakeholders by power and interest levels to identify potential risks and engagement strategies.
What does the main body of the work cover?
The main body details the organization's profile, identifies key stakeholders, analyzes conflicts between different groups, and evaluates the limitations and advantages of the chosen mapping models.
Which keywords best characterize the paper?
Key terms include Stakeholder Mapping, Corporate Governance, QSR Industry, Risk Management, and Business Strategy.
How does the author view the "Krispy Kreme Klub" debacle?
The author cites it as an example of poor Corporate Social Responsibility (CSR) policy that management must resolve to maintain a positive public reputation.
Why did the author conclude that Mendelow's Matrix was the best fit?
While the author discusses multiple models, Mendelow's was chosen for its practical ability to visualize stakeholder positions and anticipate reactions, though it is noted as being subjective.
What risk does the author highlight regarding the supply chain?
A significant operational risk is identified in the company's reliance on a sole supplier for its signature glaze, with no alternative currently in place.
What does the analysis conclude about Krispy Kreme's communication?
The analysis concludes that the company’s published statements regarding stakeholder relationships often lack depth and are more focused on rhetoric than the reality of their business actions.
- Quote paper
- Irene Anne McLaughlin (Author), 2016, Stakeholder Mapping for Krispy Kreme Doughnuts Inc., Munich, GRIN Verlag, https://www.hausarbeiten.de/document/336027
