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.
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.
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)
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
Cost of Goods Sold
Wages & Salaries
Forecasted Balance Sheet
Fixed Assets, Net
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 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)
As Kudler continues to grow, they must remember that the most important thing is to continue to satisfy customers and meet their needs. As businesses grow, they will need to upgrade technology to reduce costs and labor and improve efficiency. Kudler can also use their existing customer base to promote their products at the same time, customers continue to love the services provided by existing customers of the service will recommend to their friends and so on. Marketing is successful; the importance of research and planning must be done in order to know what kind of measures taken in the process. Kudler after the implementation phase of the review and look back what has been achieved in the process, and for the company's overall best interest. (Wilson & Gilligan 2005)
KFF has a short-term expansion plan in the Carlsbad, California location. They plan to open a new store and consolidate the Del Mar location into the new Carlsbad location. Further analysis of the impact on the Encinitas location should be done. At around 15 miles, the new location may draw customers away from the Encinitas location, impacting their sales. Other areas that may require further research are the sustainability during the winter months and the competition factor of existing stores. Carlsbad is a summertime beach destination, and KFF is planning on high sales during these months. The question of high summer sales vs. slow winter…