Kudler_Fine_Foods_Strategy

Kudler Fine Foods – Strategy “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia. 2002). Kudler has positioned itself to make use of its existing information technology structure, marketing scheme and sales objectives to create a well-known atypical grocer business in their slot market by leveraging the increased changes in the marketplace and shifting customer tastes, preferences and increase demands. With rising customer requests for gourmet and healthy grocery offerings, specialty grocery stores like Kudler, are facing more opposition from bigger grocery store chains and e-commerce driven online grocery shopping and delivery businesses. Focusing on internal and external environment activity will assist Kudler in devising a successful business plan to support forward-thinking and prepare for changes occurring in a diverse platform of alliances, contracts and contractor and end-users. Kudler continues to grow their vision of a one-stop-shop gourmet grocery store. IN this paper I will discuss the strategy play, technological opportunities, and strategic recommendations for creating and realizing business opportunities to provide the best chance for Kudler to expand and offer a unique and atypical customer offering in an increasingly customer change-driven environment. Organizations have pursued technological innovations and information technology to develop operations, procedures and progress in customer service. Kudler fine foods president, Kathy Kudlers, objectives include adding inventory and ordering automation processing by implementing new e-commerce abilities in the form of an online catering ordering link. Strategic information systems of this nature have the capability of intensifying efforts into potential sustainable competitive advantages and generating healthy margins in return. “Information technology has helped to computerize the business process thus streamlining businesses to make them extremely cost effective money making machines. This in turn increases productivity which ultimately gives rise to profits that means better pay and less strenuous working conditions”(Small business Bible. 2010). The increase use of technology has altered numerous segments in the marketplace. For example, some countries possess the technology to now purchase soda drinks from a vending machine via mobile phone. Major express couriers have a traceable websites that allow end-users to trace and schedule package deliveries via the Internet. The internal and external process enhancements through technology are abundant. The subsequent sections will categorize transformations in technology that have produced business prospects for Kudler fine foods in the following area: networking, operations management, advertising and HR. Prior to advancemans in technology employee files, customer information and sensitive documents were stored in a central, secure location. With technology shared databases and the introduction of the information highways, Kudler is capable of sharing information with their satellite stores, Kudler currently uses Quick Book software to share employee sensitive information and documents. With advancements in technology Kudler can now forecast scheduling and budget information throughout it satellite offices. Prior to the knowledge information age organizations used convention advertisements strategies such as idle talk, radio and television to endorse its service and products. The Internet has also afforded Kudler the opportunity to promote its products and services to a broader audience and new customer market. Advances in technology have also altered traditional back-end inventory processes. The three Kudler stores point of sales network is interfaced with the inventory network. The connection allows Kudler to track orders and products without physical handling of inventory or material quality assurance. This technology also allocates Kudlers inventory decision-making process between all stores. Subsequently, Kudler could link-up its system with its suppliers and automatically place orders through low stock notices that automatically send suppliers order fulfillment without a physical purchase order. Organizations employ strategy to adjust to internal and external environmental dynamics. Kudler strategy is a concentric diversification strategy where it is looking to create new business relative to its core to enter new markets. Kudler’s core is business is grocery retail. Kudler has generated new add-on-business like catering services and cooking sessions. The strategy is beneficial to Kudler because it permits them to control other business at low cost with high margin returns. Cost reductions and revenue increases are Kudler’s goals. Kudler has multiple alternatives in deciding its business strategy scope. Kudler can decide on cost leadership approach or a differentiation strategy. Based on the nature of business Kudler makes use of the differentiation strategy that allows them to convey distinctive products and atypical services. Kudler has numerous ideas in place with increasing revenues being one objective. One way to realize revenue increase is through service expansion beyond core service being provided to spread out scope of services. Kudler currently offers ‘in-store’ parties. These events provide food preparation demos and exhibition on how to handle specialty foods. Kudler anticipates that by allowing more customer ‘in-store’ time will increase sales and revenue for each customer visit. The objective is to attract customers into the stores in hopes that they will procure other services and products. This approach is consistent and tied directly to Kudlers frequent consumer plan that is a revenue generating approach. Kudler has also investigated methods to reduce cost as an approach for increasing revenue through increased efficiencies and industry best practices. Kudler is scanning the external environment via benchmarking Nordstrom’s department store to discover better ways to do things and operate more efficiently by eliminating touch points in their processes and reducing delays. “Process benchmarking has become one of the major conceptual approaches in business process improvement” (Juan. 2005). The approaches implemented have assisted Kudler in achieving their objectives to increase revenues. Although Kudler has seen a spike in revenue realized from the cooking demonstrations and frequent buyer programs, these tactics have brought other opportunities to the surface. For example, Kudler could employ a bundling grocery package solution, providing complete bundles of product for a specified meal based on consumer diet and specifications. Another method to reduce cost and spike revenue would be an early bird program where Kudler could offer slight discounts to consumers for shopping during traditional off peak hours determined by Kudler upper management. With the increasingly popular use of technology and all the benefits organizations have enjoyed Kudler could implement programs that provide its customers with incentives to initiate or order its products online and tie it directly to an inventory management system. The more customers order online, the less Kudler has to hold items in inventory. “Creating an inventory management system that monitors usage and holds people accountable will be worth the effort and bring long-lasting results. When it comes to day-to-day operations, examine supply maintenance to be sure no one is over-ordering and keeping more supplies on hand than are necessary” (Capko. 2010). All plans listed would benefit Kudler fine foods and help the business realize it strategy of increased revenues, maintaining healthy margins whilst continually cutting cost A Kudler fine food currently makes use of numerous tools to assert itself as a competitive force in the specialty food industry. To remain competitive in its niche grocery market it would be advantageous for Kudler to scan the specialty foods industry continually and acquire information that will afford them the opportunity to update its approach. Kudler could analyze its closet rivalry to evaluate behaviors to modernize the firm’s strategy and ensure that it is aligned with market trends. This process could be employed through forming strategic focus groups and environmental strategy sessions to stay engaged with the industry and take advantage of opportunities to be first to market and identify new threats. Kudler could conduct competitor analysis and from the analysis format decisions in local markets based on decisions of its competitor and the market distinctiveness. The analysis could be extended to evaluate the determinants of Kudler store revenues as a function of market characteristics, including the presence of competing local businesses. With competitor analysis in play Kudler could also attend industry seminars and study company literature to identify its rivalry goals and strategies. Kudler persists to integrate efforts to support them in attaining its mission, through incorporating customer loyalty programs and added cost reduction services as well as increasing the cost consciousness of the business. These efforts, complimented by its strategy to provide a delightful and pleasing customer experience will ensure Kudler will remain a competitive business in the specialty foods industry. A competitive strategy is only consistent if it is connected to the businesses strategy reach. Kudlers exceptional customer service and atypical service offerings have provided Kudler with large market attainment. By implementing technology and making good use of forward thinking practices Kudler could realize profitable results and remain a competitive force in the local market through scanning the competitive landscape and industry. Technology is her to stay and in today’s fast growing world its impossible to remain independent of technology and all it has to offer. Technology has a role in helping Kudler achieve success. Kudlers upper management and executives must take a Freshlook at their existing technology model and employ the latest technology available for inventory and human resources management if they want to sustain their business through today’s economic conditions and move forward References Apollo Group, inc. (2007). Kudler Fine Foods [Computer software]. Retrieved August 20, 2010, From University of Phoenix Website: https://ecampus.phoenix.edu/secure/resources/resource.asp Capko, J. (2010). How to keep inventory cost under control: Good supply management involves teamwork, accountability. Urology times. Retrieved from EBSCOhost database on September 10, 2010. www.cinahl.com/cgi-bin/refsvc'jid=3826&accno=2010596557 Gomez-Mejia. (2002), Management (2nd ed.). New York: McGraw-Hill. Juan, Y.C; Ou-Yang. (2005). A process logic comparison approach to support business process benchmarking. International Journal of Advanced Manufacturing Technology. Retrieved from EBSCOhost database on September 10, 2010. http://web.ebscohost.com.ezproxy.apollolibrary.com/ehost/detail'vid=6&hid=106&sid=8cb644bb-1dfc-44a7-b848-9d0e41d664e3%40sessionmgr114&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=17551423 Small business Bible.(2010) Some advantages and disadvantages of information technology. Retrieved from the internet on September 9, 2010, from, http://www.smallbusinessbible.org/advan_disadvan_informationtechnology.html