A brief discussion of Kudler Fines opportunities through change in technology, strategic plan the organization is pursing, tactics used to implement the strategy, and obtaining recommendations on how to update the strategy will be laid out in this paper.

by dlynn (student)

University Degree Business and Administrative studies

Kudler Fine Foods Strategy

Kudler Fine Foods: Strategy

Dawniecia Hardin

University of Phoenix

November 8, 2010

“A strategy is successful if it provides the firm with a sustainable competitive advantage. This means that competitors will be unable to duplicate what the firm has done or will find it too difficult or expensive” (Gomez-Mejia & Balkin, 2002). Kudler Fine Foods strategic plan is to increase devotion to their customers and increase business profits. The growth of the organizations is based on the founder of Kudler Fine Foods, Mrs. Kathy Kudler. Mrs. Kudler’s vision was to design a one stop gourmet food store for the local customer. As the owner of the organization, Mrs. Kudler has direct control over the hiring process, ordering goods, and providing service to customers. Through her success and demand for the business, Kudler Fine Foods has expanded into three stores across California. A brief discussion of Kudler Fines opportunities through change in technology, strategic plan the organization is pursing, tactics used to implement the strategy, and obtaining recommendations on how to update the strategy will be laid out in this paper.

Organizations that utilize information technology have the ability to increase operations and enhance the organizations customer service. “Information technology creates applications that provide direct strategic advantage to organizations” (Turban, Rainer & Potter, 2003). Kathy Kudler has an idea that will add to the organizations inventory and ordering automation system. The idea would be to add new internet options and a link for online catering (Kudler Fine Foods Portal, Strategic Plan). Through strategic information systems, an organization has the capability of increasing the organizations strengths and use the strengths towards competitive advantage. Kathy Kudler is well known for her outstanding relationship with her employees, so it is expected that Kudler Fine Foods will benefit with new information technology applications. For example, with new technology, Kudler Fine Foods will be able to improve their web page and add features like an inventory and ordering automation system. This could potentially expand the company’s cash flow globally.

Strategic information systems are systems that provide support to an organizations competitive strategy (Turban, Rainer & Potter, 2003). There are two major, they are inwardly focused and outwardly focused. An inwardly focused system is “focused on enhancing the competitive position of the firm by increasing employees’ productivity, improving teamwork and enhancing communication” (Turban, Rainer & Potter, 2003). Kudler Fine Foods employees are dedicated to improving the quality of service to their customers. Companies that bring together unity, have a strategic plan in place, and implement that plan have a better chance at success.

An outwardly focused system aims directly at ...

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An outwardly focused system aims directly at the competition in that specific industry. An example of this would be an organization creating a specific objective that is meant to beat their competitors all the while providing service to their customer. In order for Kudler Fine Foods to maintain their current consumers and draw in new consumers, they need to continue to monitor the actions of their competitors. “Competitive intelligence drives business performance by increasing market knowledge and raising the quality of strategic planning” (Turban, Rainer & Potter, 2003).

Strategic Plan the Organization is Pursing

In order for an organization to gain competitive advantage, during the development stages of the strategic plan, the organization needs to make sure they are aware of the company‘s main competitive focus. Kathy Kudler has analyzed her organizations competitiveness through Porter’s competitive forces model. Mrs. Kudler demonstrates several traits from Porter’s competitive forces model, such as differentiation, focus, and cost leadership. “Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that our culinary visions can come true” (Kudler Fine Foods Portal, Strategic Plan). The value or quality of Kudler Fine Foods products are examples of differentiation, the promise to provide fresh gourmet foods to their consumers is an example of how the organization is focused, and the organizations idea to purchase organic produce directly from local growers is an example of the company trying to achieve cost leadership. Some examples of response strategies for Kudler Fine Foods would be new store locations, the employees having the ability to order products through an automation system, and placing special orders made by the customers. The vision to design a one stop gourmet store that provides fresh produce is the main reason business has improved quarter after quarter. Over time the company has adapted to their consumers wants and needs. Not only does the store provide fresh produce such as meats, vegetables, and organic products; now the bakery provides freshly baked goods. Consumers are also allowed to place special orders. Kudler Fine Foods relies on its strong customer based relationship to help support the growth of the store. With the help if new technology, the store is guaranteed a success in the upcoming future. “Success is getting the right customers and keeping them” (Gomez-Mejia & Balkin, 2002). Not only is maintaining a strong relationship with her employees of value, but Mrs. Kudler also values her relationship in satisfying her customers by meeting their needs.

The main reason Kudler Fine Foods is such a success is because of Mrs. Kudler‘s management/leadership style and her determination to have a successful business. “Strategic management involves the major decisions, business choices, and actions that chart the course of the entire enterprise” (Gomez-Mejia & Balkin,2002). She ensures the morale within each store remains at its highest peek. It is important that the employees are satisfied; there attitude reflect on the service towards the customers.

Tactics Used to Implement Strategy

In order for Kudler Fine Foods to implement the organizations strategic plan Mrs. Kudler must include differentiation, cost leadership, and focus. How the company decides to implement these tactics will determine the future success of the company. Mrs. Kudler needs to ensure that her managers stay sharp on their skills and have the ability to work in a competitive market.

Conclusion

In conclusion, Kudler Fine Foods has potential success if they continue to follow the strategic plan designed by Mrs. Kudler and her staff members. Kudler Fine Foods just has to recognize the competition and take advantage of the latest technology and local growers. This will help increase the company’s cash flow and draw in more consumers.

References

Turban, E., Rainer, R., Potter, R. (2003). Introduction to information technology (8th ed.). New York: Wiley.

Gomez-Mejia, L., Balkin, D. (2002). Management (2nd ed.). New York: McGraw-Hill.

Kudler Fine Foods Virtual Organization Portal