Krispy Kreme Donuts Incorporates' principal business is to manufacture and market donuts and related items. Operations are executed through three segments, corporate store operations, franchising operations, and Krispy Kreme manufacturing and distribution. The stores are both retail outlets and highly automated producers of more than twenty varieties of donuts. The company is a branded specialty retailer and produces more than three million donuts per day. In addition to Krispy Kreme stores, the company sells its donuts in supermarkets, convenience stores and other outlets across the country. Krispy Kreme's manufacturing and distribution segment sells donut-making equipment, mixes, other ingredients and supplies and also operates three distribution centers. Krispy Kreme has a competitive advantage over other bakeries because the self-rising donut has an excellent reputation for representing freshness at its best. better and thanks to the innovative donut preparation process. This process attracts its customers through anticipation and sensory response. The first indication is the large red neon "hot Krispy Kreme now" sign that is displayed while the donuts are being prepared. When the customer enters the Krispy Kreme donut shop, the aroma of the fresh donut hits his nose and the anticipation of watching the fresh donuts roll down the line three feet away overwhelms him. When the customer gets to the checkout, his mouth is watering and he always orders too many. This highly refined presentation through the senses has made Krispy Kreme a cult favorite. (New York Times, January 18, 2005) It has been said, “It's not how you prepare your food, but how you prepare your guest.” (Source unknown) And… in the middle of paper markets… in the United States and abroad. Even though the donut and coffee market is quite saturated by many players, there is still room for growth, especially in smaller markets and international markets. Krispy Kreme in particular has a lot of room to grow as it still has many untapped markets in the U.S. and abroad. Works Cited Boone, Louis E, and David L. Kurtz. Contemporary Business, Ed., 11, Mason: South-Western, 2005Breed, Allen G. “Sweet Dreams.” Times of the capital. 10 February 2005.Ed.Web. Business Section.http://www.krispykreme.com/history.html. Retrieved February 16, 2006 http://www.newsweek.com/ article by: Barker, Robert Retrieved February 17, 2006 http://www.msnbc.com/ article by: Catherine Skipp Retrieved February 17, 2006 Norris, Floyd. “Krispy Kreme Chooses Turnaround Specialist.” The New York Times January 18, 2005: Sec. Business.