Kudler Fine Foods Problem Statement And End Vision
After analyzing Kudler Fine Foods weakness and strengths, this sole proprietorship company is confronting several situations such as a limited inventory due to perishable goods, and costly payroll and geographic limitations among other issues. Despite these situations, the main issue is the overall management. Kathy Kudler, the owner, is the only person in charge of the purchasing process and other management responsibilities that prevent the geographic expansion and therefore, financial increase opportunities.
Kudler Fine Foods is a gourmet grocery store with the vision to provide customers with the finest and highest quality selection of food products. The first store was successfully established with strong sales from the beginning and continues to grow. Based on the businesses’ current situation, the existing opportunities could be numerous. Considering the company’s strengths of no direct competition, variety of choices, and business concept, Kudler could be placed as a gourmet grocery store leader, and has its own brand or trade mark of products symbolizing high quality. These trademarks can be distributed out of the current geographic area allowing to market the products in order to open doors for future store expansion. Besides having her own trademark, Kathy could create a franchise business of Kudler Fine Foods and convert it in a grocery store chain and have a geographic expansion based on the same philosophy, market segment and culture of the La Jolla location. This option could give her the opportunity to concentrate on just one store and have the time to develop some other areas like the catering services, and for creating a better marketing plan. Also, she could have the alternative in the future of just living from the franchise sales, including a possible quarterly or yearly net sales profit percentage, giving her the option of a complete or partial retirement.
Despite these visions, the owner is facing time management problems. Although Kudler Fine Foods is a small business, the delegation of duties is necessary for business growth. Another possible solution could be the development of a strategic business plan that includes the recruitment of a manager with the knowledge and skills of the food and spirits industry. This manager could bring the experience of how to minimize current unnecessary duties, help run the operations, and know how to deal with the specialty shops manpower turnover. With expert consulting, this manager also could help with the appropriate information technology mechanisms. An experienced manager could help the development of the franchise concept by implementing the current business culture with a better purchase and inventory tracking system.
The fact that the store’s main operations are under the owner’s control is a major concern. The inventory process is one of the things that she needs to delegate with the implementation of new inventory system that facilitates the sales track according with the demand and season of the year. This could be accomplished with the combination of a new management and a modern automated system. Having more control and an accurate inventory can help to reduced the costs and lost of perishable goods, and therefore increase profits. Perhaps these profits could be invested in manpower solutions.
Additionally, there is the possibility of sales increase by implementing a marketing strategy using the business website as a sales tool. Today’s accelerated life style makes the online sales vital for many merchants. The customers could order products or catering services online. These services could be offered in combination with a delivery services or pick up. This option not only will help to increase the sales, but also to promote events, special offers and activities, and to keep the customers well informed. It is an excellent low cost marketing tool to expand the business.
There are many strengths and contributing factors present at Kudler Fine Foods. The fact that it is a small organization with no direct competition, an extensive variety of choices, very customer oriented and has a strategic location, based on the business target market, gives Kudler’s Fine Food potential growth opportunities. A business plan developed by an experienced food and experienced manager together with Kathy’s vision can help mitigate Kudler’s current weakness and potential threats. Among the countermeasures, for the business weakness, information technology should be integrated as part of the solutions. Information technology will help to manage the small management team situation and therefore provide more free time to Kathy.
After analyzing Kudler Fine Foods’ marketing and business plan, it is evident that it needs to be restructured. Although Kathy’s vision has been successful in certain ways, and this is reflected with the sales and growth of the store located in La Jolla, the present business plan does not provide sufficient mechanisms nor specific solutions. Despite that, the strengths, weaknesses and business growth opportunities are identified, the business plan should detail specific strategies that will be implemented including a contingency plan. After forming a suitable plan of businesses that includes the acquisition of an automated system not only to furthermore obtain a better control of the inventory, but for the rest of the operations. Kathy could formalize the idea of franchise sales of her business. In conclusion, after the existing problems are corrected and the effectiveness of the new plan and solutions are verified it will be time to use this same model to expand the business geographically by franchise sales or by means of acquisition of Kudler Fine Foods by a bigger store chain.
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