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While acquisitions can be a good thing, companies must understand that there is a strong possibility that there might be a high employee turnover rate within the first year or so of the acquisition. It is extremely important that any sensitive issues that may arise are handled openly, honestly and in an efficient manner.
Merger Strengths
By merging with another company, Kudler Fine Foods could gain knowledgeable employees, and potential alternate locations/buildings in addition to an influx of capital necessary to quickly expand the business and the opportunity to re-invent itself into a new business. More potential advantages of mergers and acquisitions include achieving economies of scale, combining complementary resources, eliminating inefficiencies, and receiving tax advantages. Other reasons for consider this type of growth include obtaining property rights as stated above to products and services in addition to building and employees. By merging or acquiring another company Kudler Fine Foods has the potential to increase market power by purchasing competitors, shoring up weaknesses in key business areas, penetrating new geographic regions, or providing manager with a new opportunity for career growth and advancement.
Merger Weaknesses
Similar to the acquisition, the merger may have some pitfalls. It definitely has many strengths, but companies must know that...
A merger can mean the duplication of several different positions within the new company and this can mean that some will be laid off because of the duplication. A merger can also be a setup for failure if the companies merging haven't ironed out how operations will be run in the short- and long-term.
Conclusion
Kudler is in a prime position for expansion. It started with one store in 1998 and grew to three stores in less than five years. This shows that the company has potential for tremendous growth. Even though Kudler is in a prime position for expansion, it should examine the options before it carefully. Each option that the company has: IPO, acquisition and a merger have pros and cons. The company has to carefully consider which option is best for it and move forward with the notion that nothing is guaranteed. However, this should not stop them from moving forward with the expansion. There will always be risks with these types of business ventures, but many times the rewards far outweigh the risks.
Bibliography
Cowan, Lynn . (2010, September 13). Second Thoughts On Going Public. Wall Street Journal (Eastern Edition), p. C.5. Retrieved September 24, 2010, from ABI/INFORM Global. (Document ID: 2136285191).
Bibliography
Cowan, Lynn . (2010, September 13). Second Thoughts On Going Public. Wall Street Journal (Eastern Edition), p. C.5. Retrieved September 24, 2010, from ABI/INFORM Global. (Document ID: 2136285191).
Another important factor for Italy is the fact that, although the food and beverage market is shrinking, certain geographic areas in the country are experiencing a lack of this service. This can be used to perpetuate the public perception of scarcity, which can then be mitigated by Kudler's products. In creating a communications strategy for Italy, the two main factors to focus on are therefore nice markets, specific brands and
Kudler Fine Foods Marketing Analysis Kudler Fine Foods has made significant progress within a few short years. The small business was able to open two new locations to expand their gourmet food retail outlets. With the expansion of a catering division in the horizon as well, it has come time for Kudler Fine Foods to reevaluate their marketing strategies. The company will use the 4P method as the basis for their marketing
Kudler's advertising and marketing in its present form is through the Easter and Thanksgiving holidays with the local newspaper flyers every month. Marketing is a key component of a successful business and KFF should consider different methods of involving the community. For example, television advertising, Internet, radio stations and more promotions are viable. Secondly, employees must be sufficient time for KFF to obtain benefits. Many organizations have begun to
Kudler Fine Foods was created in an effort to provide high quality products to customers in the southern part of California. It offers clients a wide selection of specialty food products, including everything from baked goods to fresh produce and refined wines. "Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that your culinary visions can come true" (Website
Kudler Fine Foods: Problem Statement Kudler Fine Foods is a company which provides gourmet style groceries and catering services to the local markets. KFF's primary vision is to be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses and wine."(University of Phoenix, 2010, p. 3). Although Kudler Fine Foods has managed to succeed as a small company, they can't benefit from the
These two types of wine alone had contributed to 90% of the total export growth. Italy saw a major rise in wine production in 2007 which again came from growth in production of sparkling wines. "Trade committee within the framework of Consortium Asti Spumante (Consorzio dell'Asti Spumante) declared that in comparison with the previous year the sales of sparking wines grew by 11.9% to total 78.8 million bottles. Export figures