Kudler Fine Foods Strategic Management
Introduction
Kathy Kudler had a vision to open a store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want (UOP, 2008). After a few years Kudler has three successful stores. Kudler has recently decided to contract local organic growers directly and to start a catering service. This paper examines how changes in technology affected Kudler and what strategy they follow which tactics are used and how the fine foods grocer industry can be scanned.
New technology.
On the internet Kudler has a website where the stores are presented to the customers. From this site online purchasing and order placement could be made possible for the customers. When such a function would be installed studies reflect that customers prefer home delivery to picking up their orders at the stores (Morganosky & Cude, 2002). So a delivery service will have to be setup if an online shop is implemented. The internet can be used to email new and existing customers information about the new services. A control panel of customers could be setup to evaluate new services and food items trough online questionnaire as a reward for filling in the form a complimentary food item can be send to the customer (Kerin et al, 2006).
New ways of preserving food and keeping the freshness longer will give Kudler more possibilities in catering and prepared meals (Hume, 2001). The development of new packaging materials and conservatives will also have consequences for the shelf life of food. New packaging systems like the use of nitrogen to remove oxygen before sealing the food will keep the food longer fresh.
Kudler already now is using various computer systems in its stores to aid in running them. An enterprise resource planning (ERP) computer system like SAP R3 would help to integrate all parts of the stores and join the data from the entire Kudler fine foods company. This would give valuable information for the management and by joining the systems from all stores they could operate more cost efficient by centralizing more activities.
Kudler’s Strategy
Kudler’s corporate-level strategy is the concentric diversification strategy. A company that follows this strategy expands by creating or acquiring new businesses related to the firm’s core business (Gomez, Mejia & Balkin, 2002). Kudler fine foods core business is the selling of high quality fine food products. Besides their three stores Kudler tries to find new ways to sell their product like the new catering service that is being setup.
RNRA Team, “Supermarkets, Fresh Produce and New Commodity Chains: What Future for the Small Producer?” Hot Topics: February, 2004.
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.
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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
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Challenges in Today's U.S. Supermarket Industry. 2014. Challenges in Today's U.S. Supermarket Industry. [ONLINE] Available at:http://msdn.microsoft.com/en-us/library/aa479076.aspx. [Accessed 31 March 2014].
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