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Kudler Fine Foods mission is to provide their customers with the finest selection of the very best foods and wines so that individual’s own culinary visions can come true. In order to achieve their goal management is key. The four functions of management are planning, strategizing, organizing, leading, and controlling. In planning and strategizing for an organization future goals and objectives are set. Kathy Kudler is responsible for the creation of Kudler Foods. It was her frustration having to travel all over town to gather the ingredients for one simple meal that gave her the idea to start this shop. Kathy is responsible for planning and strategizing for Kudler Fine Foods but she doesn’t do it alone.
Each department store has its own store manager who is responsible for his or her own store and reporting back to Kathy with any issues. Each of the three department managers in each store determines requirements for the items his or her department sells and places purchase orders directly with suppliers using a purchase order form that is standard between the three stores. The responsibility of the Department Managers is to obtain the best price, quality, and delivery possible. They also receive and verify all orders in terms of if they received the correct items and quantities and in undamaged conditions. Store managers also supervise employees, plan and prepare work schedules, answer customer complaints, and manage their own personal store budget. Together these individuals come up with ideas and plans appropriate for each of the three locations (Apollo Group Inc.).
The second function of management is organizing which involves how a business’s human, financial, physical, informational, and technical resources are arranged and coordinated to achieved goals and objectives (Gomez-Mejia & Balkin).
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Controlling is the final function of management that measures performance, implements any changes necessary, and monitors progress (Gomez-Mejia & Balkin). An individual that may exemplify this is Brenda Wagner. Brenda is the Director of Administration and Human Resources. Brenda is responsible for developing training on company policies, analyzes wages salary reports, and develops recruitment plans.
In reviewing the Kudler Fine Food site, the company uses the internet simply to introduce different areas within the facility. For example, the Kudler site goes into brief description about their bakery, meat, seafood, produce, cheese, dairy, and wine. Each section provides information on where the food is either made or location of where the food was purchased. This helps management to promote their individual locations and helps increase sales. In reference to technology the use of it within Kudler Fine Foods was not clear to me. Kudler does use a database for customer, inventory, supplies, and previous order information. This can help management in not overstocking in specific items and finding out what sells best.
In Porter’s competitive forces model, the model has been used to develop strategies for companies to increase their competitive edge. Porter has identified five major forces that can endanger a company’s position in an industry which include threat of entry of new competitors, power of suppliers, power of customers, substitute of products or services and rivalry among existing firms (Turban & Rainer). In reference to Kudler’s Fine Foods the threat of entry for new competitors is always constant. For example, Kudler’s biggest competition now is shops like Dean and Deluca, and Amish markets which are popular gourmet shops that are available in several areas and online for delivery.
In reference to Porter’s bargaining power of suppliers, Kathy and her department managers use historical data on which items and what quantities were sold in the last 2-3 years, especially on holidays. This provides an indication of which items and what quantities to carry in the future. With the bargaining power of customers, Kudler plans to offer parties in the store to show customers how to prepare specialty foods to increase customer purchase rate of high margin foods and the increased time in the store would increase overall revenue. In the threat of substitute products or services Kudler is benchmarking Nordstrom department stores. In addition, the firm is developing employee training programs and integrating new software systems to facilitate the effort. Marketing has encouraged the purchasing department to find ways to reduce costs of ordering foods and minimize the amount of food to be stored, while also having a zero stock out policy. In response, purchasing has developed a supplier relations program and has solicited the help of marketing to help roll out the program (Apollo Group Inc).
Finally in order to answer to the rivalry among existing firms in the industry Kathy considers one of her key responsibilities to be that of identification of new gourmet items that can be offered in her stores. To keep up with what’s available; Kathy monitors what other gourmet foods stores are offering, what’s being advertised in gourmet magazines, what is being shown at gourmet conventions, and what shows up on gourmet web sites (Apollo Group Inc).
Kudler Fine Foods has come a long way from Kathy’s dream to becoming a reality. I think it does exemplify the four functions of management in several ways. I don’t think one person within the business functions alone. That is key within any industry.
1)Apollo Group Inc. (2007). Kudler Fine Foods. Retrieved April 19, 2008 https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Internet/KudlerPort.htm. MBA 502 Managing the Business Enterprise
2)Gomez-Mejia, Luis & Balkin, David. Management Chapter 1. 2002. Retrieved April 19, 2008.
3)Turban, Efraim & Rainer, R. Kelly. Introduction to Information Technology Chapter 13. 2003. Retrieved April 18, 2008