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3-17. How many times has the company been sold? When and by whom to whom? The company has been sold several times. First, in 1935 Ishmael Armstrong sold Krispy Kreme to Vernon Rudolph’s father Plumie Rudolph. Second, in 1976 due to Vernon Rudolph’s death, the company was then sold to Beatrice Foods of Chicago. Third, in 1982 Joseph A McAleer Sr. who led a group of Krispy Kreme franchisee bought back Krispy Kreme from Beatrice Foods. Finally, Krispy Kreme Inc. became a publicly traded company in 2000 by joining the NASDAQ as well as joining NYSE in 2001.
3-18. What mistakes did Beatrice Foods make after purchasing Krispy Kreme? Why wasn't Krispy Kreme a good fit for Beatrice Foods? Krispy Kreme was a family oriented business where on the other hand, Beatrice Foods was the complete opposite causing it not to be a good fit for them. Beatrice Foods had a big-business approach where their focus was primarily on raising profits. Beatrice Foods made their first mistake by redesigning Krispy Kreme’s logo. Their second mistake was adding other foods to the menu such as soups, sandwiches and biscuits. Their third and worst mistake was altering the Krispy Kreme doughnut recipe in an effort to cut costs and improve revenue margin.
3-19. What opportunity did the franchise see in buying back Krispy Kreme rather than starting a new company from scratch? The opportunity that the franchise saw in buying back Krispy Kreme rather than starting a new company from scratch was because of the simple fact that Krispy Kreme came with history and a strong foundation. Consumers who once ate from Krispy Kreme associated the company with happy memories and hot doughnuts.
3-20. Describe several business lessons that can be drawn from Krispy Kreme’s history. Negotiating is a big one to me here. Honestly, if I were Joseph A. McAleer Sr., I would not have paid $22 million in 1982 to

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