TO:FROM:DATE: November 12, 2006SUBJECT: "Krispy Kreme Donuts Going Global?" This memo contains answers to questions 1 through 4 of the international marketing assignment titled "Are Krispy Kreme Donuts Going Global?" Questions are moved to the shaded area and answers are provided below each question.(1) Where should Krispy Kreme go next? List the next ten countries they are expected to enter in order of most vitality. Describe the criteria you used to develop your list. I have identified, evaluated and ranked the countries I think Krispy Kreme should enter next. The results of the analysis are summarized below. The criteria, presented in order of importance and followed by a narrative description are:1. Political/legal2. Economical3. Cultural, Political/Legal In this analysis, political and legal considerations have been given the highest priority, with particular attention to whether a country's legal or political system prohibits or impedes foreign investment. If a country's political or legal system discouraged or prevented foreign investment, that country was excluded from further consideration. Factors considered in evaluating the political and legal context:1. Ease of doing business2. Corruption ranking drawn up by Transparency International3. Relative political stability4. Enforcement of property rights5. Degree of encouragement of foreign investment. Economic Environment The economic environment of a country plays a significant role in the success of businesses operating within that country. Countries with struggling or contracting economies were not included in the top ten rankings. Economic indicators and trends selected for this analysis:1. Gross Domestic Product (GDP)2. Gross National Income (GNI)3. Market size (population and population density) Cultural environment Assuming a country has a favorable political, legal and economic environment; its cultural environment was assessed. Culture affects demand and the marketing mix; therefore, if a country's culture was deemed unfavorable, it was not included in the top ten rankings. Likewise, if a country's culture seemed particularly favorable, that aspect will be highlighted later in the analysis. Cultural factors considered in this analysis:1. Hofstede's cultural typology2. Structural eating habits and tendencies3. Acceptance of prepared and takeaway foods4. Dietary considerations (to evaluate product fit requirements)5. Perception of donuts as a breakfast food or as a snack6. Preference for freshly prepared foods7. Language and how “Krispy Kreme” translates The above criteria were used to determine the ten most vital countries/regions for Krispy Kreme’s international expansion. The list of countries/regions, presented in descending order, with particularly attractive characteristics indicated adjacent to the appropriate country, is presented in Table 1 on the next page. Table 1 Rank Country Attractive Cultural Characteristics1 Hong Kong Densely populated, open to Western ideas with U positivity.