Ben E. Keith Foods does not manufacture or assemble any of the products they sell. They work directly with many manufacturers and, in some cases brokers, to procure the products they offer to their customers. They are considered to be distributors and operate in a break bulk fashion. Ben E. Keith places orders for individual products in large quantities, often full truck loads, and the warehouse is stocked according to inventory thresholds set for each product based on weekly demand. When orders are received, the products requested by each customer are pulled by warehouse personnel, in the quantities requested, and combined into shipments of mixed product to be delivered to each customer. Ben E. Keith must find ways to add value to the …show more content…
Keith adds value is by providing break bulk and re-packaging services. If this service was not provided, many customers would not be able to buy their products direct from the manufacturers due to the minimum order quantities required for delivery. Most restaurants also must order weekly due to limited storage space, and because most foods are perishable and have a short shelf life. Ben E. Keith has 492,000 square feet of warehouse and freezer space and turns inventory quickly, so they can assume the responsibility of having what the customer needs at short notice. This eliminates the customer having to order in large quantities and deal with the concern of food expiring before it can be …show more content…
Keith must be aware of what their breakeven point is. Mr. Davison stated that Ben E. Keith does not monitor the number of cases they must sell to ensure they reach their breakeven point as there is not a standard cost or sales price per case, but that they do use several other metrics to gauge their breakeven point. They simply use pre-calculated thresholds as a guideline on an order by order basis. For instance, the ERP system at Ben E. Keith reflects the cost of each item in their inventory. When a salesman receives an order from his customers, the price he charges them is left to his discretion. The rule of thumb is that the salesman can sell some items at a low margin and others at a higher margin as long as the overall gross profit is at least 15%. They have found that if all orders average a 15% gross profit they will be profitable. A second metric that they use to ensure profitability is that they require each order to generate a minimum profit of $100. This is what they consider to be their breakeven threshold, which covers all of their costs and allows them to enjoy at least a modest
Table C projects the break even analysis in both units and dollars as a basis for further projections. As seen in Table C substantially larger sales are required to break even.
Kudler Fine Foods is a store unlike any in the grocery industry. Kudler Fine Foods represents a store that could possibly spark a new era within the grocery world. The owner of Kudler Fine Foods, Kathy Kudler, has watched her dream of owning and operating a grocery store that specializes in fine quality food grow within a short period of time. The success of Kudler Fine Foods can be attributed to the innovative ideas, effective leadership, and organizational structure. The overall mission of Kudler Fine Food's "is to provide our customers the finest in selected foodstuffs, wines, and related needs in an unparallel consumer environment. Our selections coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing" (Apollo Group, 2003). Kudler has managed to maintain its mission statement by providing its customers with the best and as a result the company has flourished. "Kathy considers one of her key responsibilities to be that of identification of new gourmet items that can be offered in her stores (Apollo Group, 2003)." Therefore, Kathy is considering plans to contract with local growers of organic produce to yet obtain the best in quality products for her consumers and take her business to the next step. If Kathy makes the decision to contract with local growers then changes could be introduced into the company's overall structural organization. Each aspect of Kudler Fine Food's organizational structure from basic business process to the supply chain and quality control process will be affected by the formation of a contractual relationship with local organic growers.
This allows them to purchase high volume for a lower cost. Bringing over 20,000 products into one convenient location and with over 450 brands they provide a large selection.
General Foods (GF) is in the process of evaluating Super as a new profit-increasing project for its business. Payback and Return on Funds Employed (ROFE) are the decision rules used currently by GF for project decisions. While these rules are helpful, they are flawed and do not take into account the time value of money when evaluating cash flows. Net present value is a more suited tool to evaluate projects because it takes into account discounting of future cash flows, evaluates liquidity through discount, selects the scenario that maximizes shareholder wealth, and considers all relevant incremental cash flows. Certain cash flows and costs for Super were either included or not in the financial worksheets presented to management. Flaws
Kudler Fine Foods was started by a women, owner Kathy Kudler, who had a passion for cooking and a love for shopping for unique and creative culinary options. Kudler’s entire business plan focuses on the consumer, their needs and their wants, as well as what will provide them with the best customer service available in the San Diego, Metropolitan area. Kudler is constantly receiving new products, offers catering services and online options for shopping, as well as a staff that is educated about the products sold at Kudler Fine Foods locations. The trends at Kudler revolve around healthier living, and healthier eating. Since food trends come and go, Kudler must employ a knowledgeable staff that remains on top of the latest, emerging
Mr. Lee entered work adjustment services on November 02, 2017. His original vocational goal was to work as a store stocker. Mr. Lee worked with a career counselor and business developer, who assisted him in finding employment. As a result of working with the career counselor and business developer, Mr. Lee received a job interview and job offer from Tyson’s Foods to which he declined. He could not work the shifts available, which were 3 p.m. to 11 p.m. or 11 p.m. to 7 p.m. Mr. Lee stated that he did not have reliable transportation during those shifts; however, reliable transportation was available with Tyson’s Foods. Then, he stated that he was the primary care giver of his ailing mother in the evenings. Previously, he stated that his sister
Dean Foods is a food and beverage company that specializes in dairy products, based out of Dallas, Texas. Dean Foods manufactures and distributes a wide variety of branded and private label dairy products. The products include milk, ice cream, creamers, and cultured dairy products. The Company is one of the nation's largest processors and distributors of fluid milk with about 75 plants located throughout the United States. They are made up of about 19,000 employees and in 2012 their nets sales reached 11.4 billion dollars. The company was founded by Dean R. Honas who owned an evaporated milk processing plant in Illinois back in the 1920s. Dean purchased other Illinois dairy plants and developed his enterprise from a small regional dairy distributor to a successful food company. The company is also known for their sustainability efforts over the past 8 years.
According to Tracy (2016), the Dot Foods’ mission statement has helped formally guide the company for many years. The Dot Foods’ mission statement indicates that the company desires to take a collaborative and supportive role with all company stakeholders (Tracy, 2016). While Tracy feels the company mission statement helps keep the company aligned as it pertains to strategic direction, he feels the tactical direction of the company is helped due to Dot Foods steadfast reliance on a robust set of key performance indicators and an engaged and empowered workforce (Tracy, 2016). At Dot Foods, governing relationships include the company mission statement, a clearly defined corporate structure, the use of key performance indicators and an annual
Overall, Whole Foods Market is financially strong even though gross margins may fall in the future. According to Bradley Seth McNew, Whole Foods Market is in the best cash position of any of its competitors. With almost zero debt, Whole Foods' operating cash flow could cover its long-term debt more than 246 times. Compare that to just 0.62 times for Sprouts Farmers Market, which has over $400 million in debt with only $180 million in operating cash flow (McNew, 2015).
There are a number of factors that the Board of Directors will have to consider while developing the strategic plan; one of the important factors is to investigate how the organizational structure of Whole Food market affects the strategic planning in the organization. In this case, it will help the directors to have an idea of how their input in the strategy will be of general benefit to the entire organization. In any strategic plan, the organizational structure plays a critical role since it determines how successful a strategic might be. The other factor that they should consider is the establishment of how the leadership of Whole Food Market affects the strategic planning of the entire organization. In many cases, a strategic
All cooking and baking for the fast food will be done in the kitchen facility. This facility will be equipped with computerized deep fryers, commercial freezer and refrigerators, preparation tables, stoves, ovens, and other related equipment. One employee and one chef will be in charge in the kitchen.
This case examines issues of asset control for Ben & Jerry’s Homemade, Inc., in light of the outstanding takeover offers by Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000.
Success of the plan In Kraft’s Food Corporation the planning analyst and the other business departments work together in close communication. This aids in the development of a system that allows business activities to align with the corporate goals and targets. The company is also building its performance around successful people by assuring that the plan is tied with the system that involves the use of practically tested strategies. Shared decisions of all the departments including finance and production departments help adding value to the business by improving its competitive place in the market.
To breakeven, we would have to sell 267,857 units. We plan on selling the Galaxy Note 8 at a price of $499 which is cheaper than our previous phones in the Galaxy Note line. Consumers aren’t going to purchase a new smartphone if the price is going to be in the same range of the Galaxy Note 7. So we are going to be selling the smartphone at a discount. We are using odd-even pricing for the Samsung Galaxy Note 8. It gives a sense to the consumer that they will be purchasing the Samsung Galaxy Note 8 at a bargain, instead of using the even pricing method. The cost to make the smartphone itself is around $275. There will be a picture below that will explain the details of the build of the smart phone. For the breakeven I subtracted the Total Cost from the Total Revenue. The profit for year 1 will be $1 billion dollars, I subtracted the total revenue for year 1, which was $1.06 billion and subtracted that number by the fixed cost amount of $60
Local Capacity. The convenience store chain can provide local cooking capacity at the stores and assemble foods almost on demand. Inventory would be stored as raw material. This is seen at the U.S. fast-food restaurant franchise Subway where dinner and lunch sandwiches are assembled on demand. The main risk with this approach is that capacity is decentralized, leading to poorer utilization.