Kathy had a passion for gourmet foods but found that her particular neighborhood just did not have a wide selection of products to choose from. Although she had no experience in operating a gourmet food shop, she believed that a one-stop shopping experience at a place with lots of variety and reasonable prices would be successful. Kudler Fine Foods is a gourmet food chain stores operating in California with obligations to its employees and loyal customers to remain competitive in the field and to keep the quality of the produce and wine at the highest level. Among the produce KFF offers are, wide variety of organic produce grown locally as well as a wide selection of local and imported wines. Since the beginning, Kathy has handled the buying for the stores.
Although that was successful for many years, consumers can now afford to visit specialty stores for the specific items they are looking for. Or on the other hand, Wal-Mart, that has taken average product selling to a new level by drastically cutting their prices, which is another way to keep consumers coming back. Therefore, Sears has failed to keep step with changing consumer tastes or wants, whether it be specialty products, or the low price. 2. Describe the external and situational influences that steer shoppers like Ashley away from Sears.
Kudler has overloaded her schedule while providing a significant portion of the tactical and operational management. Therefore, she does not have time to fulfill her primary obligation of providing strategic management. Kudler Fine Foods’ 2003 strategic plan created by a recent graduate for a price of $200 is an example of Ms. Kudler neglecting to conduct effective strategic planning. The area of marketing provides an example of how strategic management can benefit Kudler Fine Foods. Kudler Fine Foods’ marketing plan is minimal for an organization preparing to open a fourth store.
As a company try to grow and expand their business, the proper team must be in place that specialize in key areas they want to expand in. Korvette was not able to contain the proper team to specialize in new business areas. Lack of knowledge in these new areas cause those businesses to shutdown and lose more profit. The inability to cope with the amount of stores opening up in further locations from the original in New York made it very difficult for them to oversee the particular activity that was going on. Weak channels of distribution were very poor and made it difficult for them to transfer merchandise.
They believe in making better on product availability and inventory, the real risk that the customers take their basket elsewhere when there are items out of stock will be reduced. However, there are few factors which greatly affected the company’s total revenue. One of the factors is the continued store expansion activities. Each additional store may take away sales from the existing units. That’s why the Walmart management started to plan a slower new store growth, so that the impact of new stores on comparable store sales will be stabilizing over time.
The first problem that Raisio faced when they decided to take Benecol margarine global was their lack of experience of taking products global. Another problem was that the Benecol margarine was a fairly new product for Raisio that meant that they were unsure how to take the next step in the margarine market. Raisio decided with the help experienced professionals that the best way to take the product global was to find a “global partner for market penetration”. This strategy is commonly used when small companies with small markets want to make their product global and need the help of an established global company or when larger companies don’t want to produce subsidiary products them selves for example Apple. The advantages of this strategy are that the consumer recognize the global
One of the main reasons for Walmart’s lack of success in other countries is in trying to impose American values, cultures and shopping habits in other countries. Take Germany for example, where consumers felt that additional labor used to pack purchases added to the final cost of the product. Also, working hours for the attendants were way beyond what was allowed by the German government for such categories of labor. Walmart’s foray into India has not met with success either. Being a developing economy, local traders fear that a behemoth like Walmart would put them out of business.
And she also overestimated the profits the bakery can made and the capacity they need. Because the growth of the company is slow and stable, I don’t think that she should choose a much too large building to move in. She didn’t consider the long-term expenses of the building and whether the revenue they made can afford the cost. Therefore, she should ask the professions for advice and consider all the factors that will influence their development. 2.
Micro environmental factors that affected targets performance over the year have been a combination of the following factors: * The company – Targets marketing managers were not aware of the change in trends in the marketing environment. They were more focused on the product concept of marketing instead of the marketing concept. Target marketing managers were not focus on achieving the overall goals of the company by knowing and satisfying the needs and wants of it consumers * Competitors – To achieve superior performance and sustain a competitive advantage, companies must be aware of who their competitors are. Target did not pay close attention to their main rivals’ Wal-Mart. Wal-Mart offers valuable discount to their customers while still offering brand name and fashionable product.
It must create efficiencies within the organization from the top down and emerge in its industry as a fierce competitor. Describe the Situation Although Best Snacks has been in business for a long time, its lack of changing with the times is hurting sales and demand for its products. With more organizations embracing a healthier alternative to snack food, Best Snacks has not moved along with the trend. By avoiding this, Best Snacks’ sales figured have declined over five years (University of Phoenix, 2010). Since Best Snacks has lagged behind on adapting these principles, it has led it miss opportunities in marketing, research and consumer