Kudler Fine Foods Strategic Management

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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.

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