Acc_542_Week_1

Kudler Fine Foods Alice Sayles ACC/542 April 21, 2013 Yasin Dadabhoy Kudler Fine Foods Kudler Fine Foods is an upscale classy grocery store originally based in California that is owned and operated by Kathy Kudler. Kathy Kudler has opened two more locations in the San Diego area located in La Jolla, Del Mar, and Encinitas. The organization is growing and as a result its needs are constantly changing, especially in terms of business operations and accounting. Kudler uses an all-inclusive Retail Enterprise Management System to run their business. The Retail Enterprise Management System that Kudler Fine Foods uses contains different finance and accounting modules. Kudler Fine Foods is a grocery store that you would like to shop at if you are looking for the freshest ingredients for gourmet cooking. Customers can also shop at Kudler Fine Foods for the finest selection of bakery and pastry products, fresh meats, seafood and produce, cheese and dairy, as well domestic and imported wines. Kudler Fine Foods has encountered a substantial growth and is at this time dedicated on expanding the services, enhancing the effectiveness of its operations, and expanding the current growth. Kudler Fine Foods is ready to improve the modifications to raise revenue and decrease the costs that are associated with the improvements. This paper will identify the key business and accounting information needs of Kudler. This paper will also cover the strength and weaknesses of their current computer system and technology use to include hardware and software that are analyzed. Business and Accounting Information Needs With the potential growth of the company’s business that may result from the marketing programs and strategies that will be implemented. The following continues to be Kudler’s information needs. The organization’s business and accounting needs are to record data correctly and keep a track on inventory. Accounting needs for Kudler Fine Foods also include finance and accounting records of transactions that may be reflected in the chart of accounts; transactions by store, department, and product; financial statements, budgets, inventory reports, accounts payable and accounts receivable reconciliation. Other needs of the business are to keep record of employees and maintain a database for the time put in by them daily. The management team understands that the advantage of utilizing information technology is enhancing their accounting processes and exceeding their business needs.   Kudler’s computer systems integration will increase the communication network in addition to their retail stores by connecting all point-of-sale terminals, adjusting the process of inventory control, and communicating with the staff, consumers and suppliers to generate merchandise to market as fast and cost effectively as possible.   Also, by arranging a virtual company, Kudler will be able to create a well-organized distribution foundation as well as supervising a group of people. Analyze the Strength and Weaknesses The point-of-sale system that Kudler Fine Food utilizes is made up of hardware and software or a web-based program. The present computer system involves Kudler Fine Foods to do many physical duties, which can be expensive because of the time it takes to physically document and reproduce company data. The following are strengths identified: ~The company is equipped with finance and accounting modules that provide: chart of accounts, transaction details by store, department, product, etc. ~The strength of computer system is that it is not connected to the Internet for customer interaction, which reduces chances of external hacking. ~The financial reporting allows trend analysis over certain periods, store and department comparisons, and minimal manual data entry. The following weaknesses are identified: ~The company has some difficulty with cash purchases. There is a long process involved in these types of transactions-they have to be faxed then manually entered into the system. ~Due to manual transactions and record keeping, the company is prone to risk of human error. ~There is no restriction on access to company’s data. Any employee can access anything about the company, which could lead to misuse of confidential information. Opportunities of Technology and Improving Those Opportunities Kudler Fine Foods has encountered a great growth and is now determined to enhance the services along with the effectiveness of its business operations and to increase the buyer purchase cycle as a means to increase the reliability and worthiness of its customers. Kudler Foods need to update the current hardware and software systems to make daily processes and operations run smoothly, accurately, and efficiently. Kudler Fine Foods has a durable organization structure, which has given Kudler one of the main reasons to meet its strategic purpose and to understand the major growth. To maintain the progression and success that Kudler Fine Foods is experiencing, Kudler has had to emphasize on increasing some of its services. Improved loyalty and profitability of customers resulting from various marketing strategies implemented may mean more business to Kudler. In order to make these improvements, Kudler has looked at new technology to aid its initiatives. To help to track purchase behavior at the customer level and provide high value incentives, Kudler has started a frequent shopper program that will help to track the customers purchases and as an incentive to provide those customers with points towards those purchases. The customer’s purchases will be identified through the current system that will help Kudler process its procedures to best suit its valued customers. This new incentive program requires new technology to help keep track of what each customer is purchasing. Kudler is using technology to make transactions easier to come up when refunds are occurring when customers are unhappy. This allows management to print out forms to see where customers are not happy in the store. It is also allowing Kudler’s Fine Foods to reach more customers with the unveiling of its website where people can order food and have it shipped anywhere in the United States. Technology also allows management to see when inventory is low and can allow ordering and then you are not over ordering products you can see how fast it sold and why it sold. Threats that Kudler may encounter Because of ineffective forecasting method, the company may not be able to prepare and cope with possible expansion of business that may result from the marketing programs that the company has been implementing. There are inadequate indicators about information on competitors or competitive situation that are obtained through the current system. This may result in ability of the company to better prepare for impending competitive strategies that may adversely affect marketability of the company’s products and services. The possible increase in number of customers and some changes in their demographic characteristics and economic conditions may require the company to continuously improve its information system. Conclusion Kudler Fine Foods is in a strong position and is poised to undergo the transformations needed to advance in its standing in the fine foods industry. The review of Kudler Fine Foods culture and organizational structure has revealed the opportunity for transformations required to increase growth and also increase the employee's opportunities to succeed. The organizational structure has to be changed along with the approach to strategic planning. Kudler Fine Foods also needs to introduce new products with respect to the trends in the industry and changes in consumer tastes to remain competitive. Reference Kudler Fine Foods. Retrieved on April 21, 2013 from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler2/internet/terms-conditions.asp. Microsoft Dynamic RMS. Retrieved on April 21, 2013 from http://www.microsoft.com/en-us/dynamics/rms-overview.aspx. Retail Management Solutions. Retrieved on April 21, 2013 from http://www.retailanywhere.com/retail-software.