Kudler_Fine_Foods__Issue_Resolution_and_Vision

Kudler Fine Foods (KFF) has experienced a great deal of success since Kathy Kudler established the business in 1988. In order for KFF to remain successful and grow it must analyze and resolve potential issues before they negatively impact the business. The issues at Kudler Fine Foods are the negative impacts of a declining economy and the lack of a succession plan. This paper will explain the issues in further detail and describe resolutions to the issues. Last, it will conclude by stating the end vision of KFF. Impacts of a Declining Economy KFF caters toward a higher-end clientele. The product offerings are not necessities, but luxuries. In a state of recession, people have less disposable income and tend to evaluate each purchase. The higher-end clientele could begin to shop at some of the competitors who offer similar lines of product at a discounted price. KFF provides an amazing shopping experience and have highly trained staff. However, in a declining economy people are more cost conscious and less concerned about expertise and a dynamic shopping experience. With less disposable income, people become smarter about their purchases and are less likely to spend on impulse (Frumkin, 2009). KFF can mitigate the potential negative impacts of the economy by monitoring trends, gathering feedback from customers, and making adjustments as needed. The company should constantly monitor how well the products are selling. It does not matter that KFF offers twenty different types of apples if only ten are selling. KFF should focus less on the variety, but more on the quality of goods the customer demands. KFF honors customer requests for products, but conducting research to determine the perception of the product offering would be beneficial too. Additionally, KFF can expand the customer base by evolving its marketing channels. Losing a percentage of customers because of a declining economy might be offset by acquiring new customers. Currently, KFF is using traditional forms of media which are costly and do not reach as wide of an audience as the Internet. The company could acquire additional customers by focusing on internet advertising and social media. Both methods have a farther reach than the traditional channels. “There are three distinct benefits to advertising on the Internet: (1) a low overall cost; (2) a large audience reach; and (3) a message delivery combining site and sound (Previte, 2009).” KFF should purchase internet advertising, establish a presence on social media sites, and join sites whose content is derived by consumer feedback. Succession Planning According to the Business Dictionary (n.d.), succession planning is identifying and developing potential successors for key positions in an organization. Succession planning involves using a systematic evaluation process and training for potential successors. Forty-eight percent of people believe that succession planning is beneficial; however, a smaller percentage has a succession plan in place (Lack of Succession Planning, 2008). Companies tend to focus on immediate needs rather than spending time in long term planning. This is true of KFF. Kathy Kudler has focused a great deal of attention on finding expert staff, planning for expansion, and offering catering services. KFF understands the need to train someone on some of Kathy’s responsibilities, but has not identified a successor to her position. A standard operating procedures document is needed in order for KFF to continue operations in the event Kathy is no longer able to work. This document defines how KFF operates and details Kathy’s responsibilities. This document is a prerequisite to a succession plan. After documenting the operations, KFF should conduct a skill inventory by evaluating the current employees’ strengths and weaknesses. The next steps are to determine potential successors and create a development plan to prepare them to assume Kathy’s position. Conclusion Kudler Fine Foods has a number of strengths, a successful track record, and a strong competitive position. Implementing additional marketing strategies and understanding business trends will ensure KFF’s sustainability in a downward spiraling economy. KFF can maintain its competitive position by establishing a greater Internet presence at minimal costs on sites such as facebook.com, kuzu.com, and yelp.com. KFF offers a very diverse product offering, but should gather information from their customers and analyze sales trends. Last, conducting a talent inventory and establishing a succession plan will ensure Kudler Fine Foods’ sustainability in the event of the unplanned absence of Kathy Kudler. Not only will KFF sustain its competitive position, but also surpass its competitors even further by evolving the marketing strategy, adjusting the product offering as needed, and placing an emphasis on succession planning. References Anonymous. (2008). Lack of Succession Planning Negatively Impacts American Businesses. Business Wire, Retrieved February 15, 2010 from ProQuest: ABI/INFORM Complete database. Frumkin, P.. (2009, October). Consuming habits. Nation's Restaurant News, 43(37), 46. Retrieved February 15, 2010, from ABI/INFORM Complete. (Document ID: 1886587591). Previte, J. (1999). Internet Advertising: An Assessment of Consumer Attitudes. Prometheus, 17(2), 199. Retrieved February 15, 2010, from Academic Search Complete database. Succession Planning. (nd). In Business Dictionary online. Retrieved February 15, 2010, from http://www.businessdictionary.com/definition/succession-planning.html