Kudler Fine Foods Strategic Plan

Kudler Fine Foods Strategic Plan

Strategic Plan for Kudler Fine Foods

This paper presents a strategic plan or Kudler Fine Foods. The paper starts with organizational background consisting of business mission, vision and the corporate values. The nature of the business of Kudler Fine Foods has been clearly identified with some highlights on the business divisions operating in the oil industry. An environmental scan has been performed in order to have a clear insight into the circumstances in which the Kudler Fine Foods is operating. After environmental scan, the corporate strategies of Kudler Fine Foods have been identified in order to pursue for an implementation plan of the selected strategy. In the end, this strategic plan is accompanied by a Contingency/Risk Management plan for risks which Kudler Fine Foods is facing.

COMPANY BACKGROUND

Kudler Fine Foods (KFF) was created by Kathy Kudler in 1998. This newly born company was located in California at La Jolla. The mission of KFF formed by Kathy Kudler states; "we will provide this service because we 'shop the world' for our products; purchase only the finest of products; are highly selective in acquiring our team members; and will go to extensive lengths to assure that Kudler Fine Foods is the purveyor of choice for customers aspiring to purchase the finest epicurean delights." (Wilson & Gilligan 2005) Kathy Kudler was successful in the business of gourmet grocery stores due to which she decided to open new outlets. First expansion outlet was opened in 2000 in Del Marr, California, and the second one was opened in 2003 in Encinitas, California.

All the outlets are very successful and have granted KFF with immense growth. KFF wants to increase its services with more customer-focused approach so that it becomes easy for customers to shop at KFF. This will definitely lead the KFF to the heights of success and profitability.

There are five departments of Kudler Foods. These are wine, bakery, dairy, produce, meat, and cheese. Kudler Fine Foods' business is based on the premise that preservatives are not good for human health. Therefore the store do not use any preservatives due to which there is a 12% loss on perishable items of the inventory in every two three days. (Mejia & Belkin 2002) Stores of KFF such as bakeries, meat and wine are experts in the creation of a higher salary than the butcher shop and the stock of these posts and staff recruitment difficulties. Casey is a manager's hands, and her clients who prefer to interact and deal with all the food and supplies ordered. Casey is stretched between the three stores, because she has a small management team who is only responsible for the daily operation of the store.

Mission

"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" (Kudler Fine Foods Web Site, 2010). This was a good and matching mission statement for an organization with limited growth and having only a single outlet. With immense growth and expansion opportunities, Kudler Fine Foods cannot rely on this mission statement as it is unable to provide a clear direction for employees and the management. Kudler Fine Foods needs to re-launch its mission with proper direction for organization as well as employees that where the organization should be heading. It should align the direction of management and the employees in a more effective way.

Kudler Fine Foods can launch a new mission statement such as "KFF is a mission -- driven, technology-oriented organization having global outreach. We are committed to provide quality products and services through adoption of latest technology directed towards customer satisfaction." (Shim & Siegel 2010) This revised mission statement will help KFF to cater the new demands of the retail market in an innovative manner. KFF can also find ways to expand its operations to other parts of the world where demand for Kudler products is increasing.

Vision

The current vision statement of KFF is: "Kudler Fine Foods will be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses, and wine" (Kudler Fine Foods Web Site, 2010). This was a good and matching vision statement for an organization with limited growth and having only a single outlet. With immense growth and expansion opportunities, Kudler Fine Foods cannot rely on this vision statement as it is unable to provide a clear direction for employees and the management. Thus a newly formed vision statement could be as follows: "Our vision is to use our organizational capacity to provide customers with a profitable market leader in quality, variety, and food and wine in their product prices to continue economic growth, expand market share, and get Customers and stakeholders in the highest regard that, select the store of their choice." (Turban & Potter 2003)

Kudler fine foods should re-focus on its vision and the purpose of mission, rather than being profit-driven. This re-focusing will help Kudler fine foods to emphasize the interdependence of all company stakeholders, communities, the importance of suppliers, and the environment. When all these factors will be the centre of concentration the profits will begin to flourish, because all the organization's employees and stakeholders will work towards the best interests of each other. We must remember that vision statement reflects the intent and expectations of many individuals; it may not be reflected in this case.

Values

The current value statement of KFF is: "Kudler Fine Foods uses only the finest organic ingredients. Whenever possible, we purchase local produce from organic farmers. We use unbleached flour in our bakery goods and we don't add unnecessary preservatives to our products. Food is rotated from the shelves on an ongoing basis. Those items that are still in "good" condition are donated to local homeless shelters and food kitchens" (Kudler Fine Foods Web Site, 2010). This value statement is matching with the current practices of KFF. But in order to expand to other parts of the world, KFF should create certain values which reflect the current cultural, economic, social and technological trends.

KFF can have a new value statement as follows: Kudler Fine Foods's efforts are directed towards satisfaction of internal as well as external customers. Kudler fine food depends on the assistance of hundreds of other businesses to create their outstanding food shopping experience. These trade partners are seen as stakeholders, and should be fair, respect and integrity of treatment. Kudler Fine Foods is proud to offer top-shelf products and raw materials, while ensuring quality, reliability, honesty and commitment is not to sacrifice themselves. Kudler Fine Food customer service, quality and cleanliness in its present location is second to nothing, while maintaining awareness of health the best in its products meet the high level of customers and the general public of its services in its stores. Kudler Fine Foods of its operation and the location of the community better for partners and rich environment in all parts. " (Shim & Siegel 2010) the value of an organization should remain consistent and not vary from situation to situation, person to person, or from time to time, but remain in deep-rooted corporate culture. The values of an organization should be beyond the size of the company and its growth rate. There should be some maintenance of core values, to ensure that Kudler fine food is retaining its market share and existing customers and the niche markets.

ENVIRONMENTAL SCAN

Although Kudler Fine Foods is facing immense growth and achievements but there are some threats and challenges existing in the market as well which are impacting the internal & external environment. These achievements are acting as change drivers within the organization. Many external factors that are taking place KFF, this may promote the change. First, the economy is in turmoil at present and food, alcoholic state prices & production is steadily increasing. In order to ensure the company's revenue, there is a possibility that price increases may occur in the KFF. (Wilson & Gilligan 2005)

Second, technology is changing lives every day and KFF is the Internet's many uses current. KFF Web site built it in 2004, but the site is simple; just provide the relevant information, so that customers can become familiar with the business. It also did not add on to customers to purchase products or to see what new projects where the site is being provided. Kudler can also order products by means of paper and keep inventory, which resulted in the loss of tax revenue organization on track.

Third, KFF has three locations in California. California is famous for earthquakes and wildfires and KFF Most of the products are locally grown and purchased. Weather placed in a farmer's ability to produce crops difficult, therefore, increase the likelihood of price increases. Fourth, KFF is the sole operator of food stores, but Joe the transaction, such as shops, Whole Foods, and the Cardiff waterfront market has started to provide a competitive advantage. (Turban & Potter 2003)

Internal factors are driving changes within the KFF, including: marketing, staff, finance and management. 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 provide additional part-time employees package was found, but 30 hours per week. (Shim & Siegel 2010)

In addition, Kudler is to buy stock, catering, and any major issues such as responsible business, so if she fell ill, no one can proceed on the basis of business operations. Most organizations have managers that work with the president so that if necessary, they are available. Kudler is important to hire more administrative staff to assist some of the duties. Finally, the payment offered to employees by KFF is very low as compared to other organizations in the same location.

Recommended Strategy

From the above environmental scan, it can be recommended that Kudler Fine Foods should expand its store location to Carlsbad area and Canada. In order to implement this expansion strategy, KFF should follow a combination of strategies. In this portfolio of strategies, KFF should merge certain strategies in order to gain market share in the new locations. This portfolio includes product differentiation, market segmentation, and niche market and cost differentiation strategies.

KFF should assess all the factors in the external as well as internal environment of the new locations in order to take maximum advantage in gaining market share. The cost differentiation strategy will help KFF to attract more customers as KFF will be giving quality products at low prices. The product differentiation strategy will provide advantage to KFF as KFF will be launching new products with excellent quality according to the demand of the customers in Canada and Carlsbad. KFF should also consider the regulatory environment of Canada as it is different from that of U.S.. Kudler Fine Foods should implement the strategies discussed here in order to make the new locations another success for the company.

IMPLEMENTATION PLAN

Kudler Fine Foods is interested to expand its business to the San Diego and Canada, but this may prove difficult, if KFF do not make some changes to its current situation. For example, Kudler Fine Foods is working with a small management staff. They will need to hire someone who is on industry-specific management of the San Francisco location, or they can promote someone within the company who already has the quality of this post which requires human knowledge. Another option for Kudler Fine Foods is to acquire a business which is already a going-concern. Enterprises should be established through the acquisition which will result in reduction of costs from the initial expansion. This can provide a faster increase in profits. (Turban & Potter 2003)

Kudler Fine Foods can better manage their inventory by finding a more economical way to manage the supply of distribution of goods in inventory. Management can study each of their product supply and demand history to determine how much inventory should be required for the production. This will reduce their perishable goods, which will also reduce the cost of these purchases and result in reduction of amount of waste. Purchases in bulk can also reduce the costs. These types of purchase price are usually low. Another way to control their inventory costs is to combine their orders and delivery. By reducing the costs associated with inventory, they will have more money to focus on the expansion projects. (Mejia & Belkin 2002)

Key Success Factors

A key success factor for KFF is to identify the future/potential customers and their respective needs and wants. Before setting-up a store on new location or an online store or catering services, KFF should forecast the expected business growth of the company. The company should have the knowledge about start-up costs, community, employees and most importantly, the competition. KFF should start their catering business from the existing locations so as to minimize the start-up costs. By doing this, Kudler can use many existing contacts and materials for their new catering services. (Wilson & Gilligan 2005)

Forecasted Financials

Because KFF is a fresh product and high-end gourmet cooking items producer, online sales almost have no competition. However, based on the number, KFF should be a good market and may require as part of operating profit: KFF will grow 12% in 2011, reporting sales growth, from 370 million in 2011 to 2012, 420 million U.S. dollars. Importantly, KFF in several venues, including the hard-print cooking magazines, gourmet recipes website and Kudler stores to advertise the existing ground.

Forecasted Income Statement

Sales

$2,001,115

Cost of Goods Sold

1,200,669

Gross Profit

$800,446

Wages & Salaries

$222,000

Advertising

80,000

R&D

30,000

Rent

24,000

$356,000

Net Income

$444,446

Forecasted Balance Sheet

Cash

$324,583

Accounts Payable

$192,609

Accounts Receivables

272,863

Accumulated Depreciation

36,000

Inventory

5,000

Long-Term Loans

59,391

Fixed Assets, Net

150,000

Net Income

464,446

Total Assets

$752,446

Total Liabilities

$752,446

Cash Budget

Through the cash budget, financial analysis, cost can be effectively carried out. Budget, Kudler food easily at any time and confirmed the excess of the cash shortage. In the cash budget, the following are the main impact of the project's cash flows.Such sales and dissemination of financial items is cash income (cash inflows) and purchases, wages and salaries paid, rent, depreciation, etc. (cash Outlfows). The design of the cash budget, such as sales on the assumption that an increase of 15%, 85% of monthly sales in the next month to collect, purchase cost is considered to be 60% of sales revenue, while at the same monthly payment, and take the assumptions annual management Payroll is 222,000, which is the average monthly distribution.

RISK Management PLAN

The following is the risk management plan which should be followed by KFF to cope-up with the potential risks. This plan includes:

Risk Identification: the first step in the risk management plan involves identification of potential risks which a company may face. KFF's identified potential risks are poor planning and lack of a management team.

Alternatives Analysis: the key alternatives are planning and appraisal system development and implementation of a good strategic plan, develop appraisal and planning system.

Implementation of strategies: In this step, we will choose the best alternative, and finally proved to be useful for organizations to deal with unexpected events. A good strategic plan is the best alternative, furnishes information on the different elements of strategic management.

Feedback: In this step, we will evaluate the desired and actual results in order to find out the difference, so it will be easier to take appropriate corrective action. (Turban & Potter 2009)

Therefore, we can conclude that the risk through the implementation of the plan, managers can easily monitor and control risk effective way to increase the chances of success for achieving.

Strategic Planning

Strategic planning is an effective way to facilitate achieving the goals. Strategic planning and presentation of the different elements of strategic management is the benefit of this planning. In addition to this, the plan also furnishes a way, the Company and its strategists suggested action strategies. The company's vision, mission and values depend entirely on the strategic planning. To maintain the current plan, Kudler Gourmet coordination and integration through appropriate instructions that all of its strategic thinking. In addition to this, companies should keep in mind, in its strategic planning time frame. (Shim & Siegel 2010)