Strategic planning is crucial at this stage and there are tools available to help any business perform the analysis needed to succeed. Kudler Fine Foods is an upscale food store specializing in foods and services that appeal to a niche market; gourmet chefs and gourmet chefs in training. The firm had good initial success with its first two stores, but its third store is suffering with lower than expected sales. The firm wishes to continue expansion and increase profitable growth. Before moving forward the company’s owner, Kathy Kudler, needs to understand her company fully and have accurate knowledge about the firm’s internal and external environment.
Kudler Fine Foods, its key stakeholders would include its employees, investors, owners, suppliers, customers and its local community. Some of these stakeholders internal and some are external but both play a very important role in the achieving the organizational goals. Kudler Fine Foods customers are mostly high-class and upper middle class customers. Kudlers customers are used to the finest quality of foods which Kudler provides. Kudlers customers seem to be very loyal and this ultimately causes the organization to succeed.
Management wants to maintain the ending direct materials inventory at 60% of the following month's production needs. 4. Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month. 5. Watson's product requires 30 minutes of direct labor time.
The company is also operating more effectively than its competitors based on management procedures, including a continuously improving quality and internal controls system. Whole Foods is also educating consumers about healthy eating and the benefits of natural and organic products. This strategy is accompanied by the company’s goals of reducing prices and costs while growing its own brand. The company’s effective strategies resulted in 2012 being the best year in the company’s 32 year history and a very positive market view on the company. Based on the complete financial statement analysis of the company, it is a reasonable prediction that Whole Foods Market, Inc. is going to remain in the position of a market leader
Whole Foods knows that quality is their biggest responsibility to their customers, they realize that in order to ensure product quality they must be able to trace the quality all the way back to their sources; providing suppliers with product profiles and testing the suppliers’ ability to meet their quality goals. Whole Foods encourages decisions to be made at regional levels due to the fact that they understand the needs of local shoppers better than the other levels within the business. Trader Joe’s although doesn’t mention quality as a core value it still means something to the corporation. Trader Joe’s has their own approach to ensuring their customers product quality, 80% of products that Trader Joe’s offers are private label which is five times more than the typical grocery stores have to offer their customers this allows Trader Joe’s can focus on developing customer loyalty to their own brand. Whole Foods mission statement needs any improvement this is because the current mission statement is structured in a way that allows for their mission statement to be clear and concise.
Because of their location and the types of food that they specialize in there is not much direct competition. All three of Kathy’s stores are surrounded by many supermarkets such as Albertsons and Vons. These stores do not directly compete with Kudler’s because Kudler’s target market is those who see themselves and a distinguished gourmet. There are several international food stores close to the Kudler Food locations but these stores are also not directly a threat to their competition because, although they all carry similar ingredients, Kudler’s customers come to them for the selection, tools, and expertise. The Harvest Ranch Markets provoke some competition because they are closely located to Kudler’s locations and they offer similar products such as organic foods and an extensive selection of wines and deli.
Gourmet food is more expensive to purchase, than food at a regular grocery store. A gourmet specialty shop has higher fixed costs. Since there are no food preservatives in the food sold there, there is a high turnover rate for food expiration dates. The product waste potential is high, and ordering needs to be constant. An automated ordering system will help with this issue, as well.
She can continue to offer specialty items, and by becoming more of a technological and current business she will earn the respect of her customers and her competitors. Kathy’s vision 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,” and by making some changes she can achieve this vision faster than she ever thought possible. Many entrepreneurs do not want to give up any “power” to others and relinquish some of the duties that she has handled on her own, but the rewards will be tremendous. The best way a business owner can increase and improve themselves and their business is by acknowledging that they do not know everything and only by trusting the right people can the business succeed to the level Kathy
Employees such as this would not be just following protocol but ensuring that we maintain the high level of quality in both food and service to our customers that is necessary in a specialty gourmet food store. Upon first arrival as a manager, it would take some time to read the employees and learn their character and determine if it is ideal to my vision for Kudler. The development of character within individuals is a slow and deliberate process that may have been neglected in this store in the first years of the store. I would also determine if some of the set rules and standards do not have an “artificial” feel to them. It is more about being genuine with ethical rules and beliefs which come from within our employees and can be reflected in our everyday store
If they needed extra help they would call upon family or friends. Also, John does not want to have a retail shop. This case analysis will examine some of these problems and offer some solutions. MISSION: The Brownie Factory views itself as a gourmet brownie manufacturer. They have a high commitment to quality by using all natural, quality ingredients and hand mixes their products.