Kudler_Fine_Foods

Running head: KUDLER FINE FOODS STRATEGIC PLAN Kudler Fine Foods Strategic Plan Don Hudson April 12, 2010 University of Phoenix STR581 Contents Executive Summary…………………………………………………3 Company Background………………………………………………3 Vision………………………………………………………………..4 Value Statements……………………………………………………5 Mission Statement…………………………………………………..7 Generic Strategy…………………………………………………….7 Grand Strategies…………………………………………………….7 Long Term Objectives………………………………………………8 Shot Term Objectives……………………………………………...10 Contingency Plans…………………………………………………10 Critical to Success Factors…………………………………………11 Environmental Scan and Summary………………………………..12 Internal Analysis…………………………………………………...13 External Analysis…………………………………………………..14 Value Chain Analysis……………………………………………...16 SWOT Analysis……………………………………………………20 Resource Based Analysis…………………………………………..21 PEST Analysis……………………………………………………..22 Conclusion…………………………………………………………25 List of Appendixes………………………………………………...26 References…………………………………………………………27 Executive Summary This paper examines the current state of the organization, Kudler Fine Foods (KFF) by considering its background, financial status, operations, original and future vision and mission statements as stated by the owner, Kathy Kudler. It expands upon the owner’s desire to continue growth by creating and suggesting a new vision for the organization that continues to build on the organization’s original set of values and mission. The internal and external environments are examines. A new generic strategy and new grand strategies are presented and supported by long and short term objectives, and contingency plans and critical success factors are identified to mitigate unforeseen issues that may occur. The leadership at KFF wishes for continued growth and expansion and this must be completed in a manner that minimizes risk and keeps the organization ahead of the competition in the markets the firm has chosen. This paper presents strategies which will direct the company to new growth opportunities without the need to abandon its core competencies, to change its values, nor to take unnecessary risks. KFF focuses on the needs of the gourmet chef and those that wish to cook with and experience the pleasure of food and beverages that are upscale from the average. This paper examines how KFF can continue to expand this market and what it will take to operate in a growing but changing fine and organic food business environment. This paper also presents a project plan that contains Gantt and WBS charts for implementing the new strategy , risk analysis with steps to reduce chances of failure in an FMEA form, and a cash budget. Company Background Kudler Fine Foods (KFF) began as the dream of a local entrepreneur and has in the most part been successful. A solid base has been established for an organization that has its eye on future growth through intelligent planning. The vision, mission and values of the past can be built upon to continue the owner’s original design and purpose. Following is what KFF can become. The original vision for Kudler Fine Foods was; “Kudler Fine Foods (KFF) will be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses and wine.”(University of Phoenix, 2010, p. 3). Since 1998 the business has grown to three store locations, and one of these is target for closure once a better site can be established. The company has solid financials with very little debt. At the end of 2003 the company has total capital of $1,928,960 and a cash balance of $1,430,000. As KFF continues to grow, its vision should encompass more than the original sentiment of the owner. KFF can grow while remaining focused on their core competencies and target markets and this growth can come from customer focused programs such as a frequent shopper initiative, cooking and wine classes, in store parties, and targeted direct marketing to mid to high income wage earners. Kudler Fine Foods can also grow through aggressive pricing strategies made possible by operational cost reductions, improve supplier relations that value collaborative and joint marketing and advertising efforts, and efficient use of better trained and empowered employees. “Small companies, at least the better ones, usually thrive because they serve narrow market niches. This is usually called market focus, the extent to which a business concentrates on a narrowly defined market” (Pearce and Robinson, 2009, p. 255). Vision Kudler Fine Foods will be the premiere provider of the gourmet experience both in the quality of foods, wines and equipment it delivers and in the multiple culinary experiences it provides for both professional and amateur chefs alike with locations throughout California and eventually neighboring states, all of this at the best possible prices. Value Statements Basics • Strong dedication and commitment to research and development to discover and create the best possible gourmet food experience. • Commitment to support local suppliers in the communities we serve. • To educate our public about the advantages and rewards for the community regarding local farmer support, sustainable farming and organic and fresh foods. • Striving to keep cost low without sacrificing quality. • Support for our local communities through recycling programs and foods for the homeless. • Employees are the KFF’s best and most valuable resource. Pay and benefits, on going training, treatment, and consideration will be at the highest level to reflect the organization’s commitment to the value employees find from their work at KFF. Based on the products, services, technology and values, KFF can state it mission in the following categories; Customer-markets Our first responsibility is to our customers that use our products, to the local communities in which we operate, and to the suppliers of our products. We will act responsibly to deliver quality to our customers and will build strong supplier relationships through fair behavior and by valuing true supplier-customer relationships based on the mutual benefit of each. Products and Services Our products consist of the freshest foods and highest quality wines and cheeses. Our services are educational and fun experiences that improve and entertain both professional and amateur chefs, such as cooking shows and demonstrations, and wine seminars and event catering. Technology Through dedication to provide the best possible products to our customers KFF will continue to use its expertise in the area of fine foods and gourmet preparations, and will continually learn other technologies that will be valuable to its customers through supplier interaction and educational events. Efficiencies of operations will be gained through the best logistics and inventory practices, up to date information management systems, and most efficient use of marketing techniques such as internet social interfaces. Concern for Survival The organization is committed to smart growth. The company wishes to grow at a reasonable rate so that shareholder value is increased but is also low risk. Growth will come as operations become stable and more efficient at our core competencies. Philosophy High quality products and customer experiences will be our focus. Prices will be kept as low as possible, but the organization will not compete on price alone. We will deliver products that are beneficial to our customers and in a way that improves our communities and values our suppliers. Self Concept Kudler Fine Foods is passionate about being a strong link between great suppliers with fine products and its customers. It delivers gourmet experiences through equipment, products, and technology needed for both professional and amateur chefs. Concern for Public Image KFF will support its communities through food programs, recycling, wise energy use, and support of sustainable, local suppliers. Our image will project concern for not only our local customers, but also for the global communities we all impact in today’s environment. Mission Statement “Kudler Fine Foods serves its customers and communities in which it operates with fine quality food products and services, experiences, and education in a way that improves the gourmet experience, raises the awareness of sustainable farming practices, and builds a successful, profitable and growth oriented company. The market it serves is the State of California first, but with plans for future growth in other US continental locations.” Generic Strategy Kudler Fine Foods will employee a generic strategy of focus. We will serve our niche market that is the gourmet chef and people that appreciate and are willing to pay for high quality, specialty, organic and locally grown foods. “A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer” (Pearce and Robinson, 2009, p.205). Grand Strategy Kudler Fine Foods will pursue grand strategies of concentrated growth, market development and diversification in products and services. By building on our strengths of excellent customer relationship building, solid products at practical prices, unique services, speed of communication to the customer, social responsibility position, and focus on a niche market we can continue to grow and hold off competition. The organization will draw on its knowledgeable and customer focused employees and local grower suppliers as value chain advantages to further differentiate itself from the competition. KFF’s resource strengths of image, product and market knowledge, and repeat customer base will continue to set it apart from others in their markets. There’s no reason for KFF to forget its history and start over. It has built a solid foundation on a core set of values and core competencies. It can continue to grow through an expanded vision and mission that will build upon its strengths and its focus on its most valuable customers. “Managers evaluating opportunities to build competitive advantage should link strategies to resources, capabilities, and value chain activities that exploit low cost, differentiation, and rapid response competitive advantages” (Pearce and Robinson, 2009, p.256). Kudler Fine Foods Long Term Objectives Profitability • Improve profitability each year as measured by increase ROI by 10% annually over next three years. • Use of new pricing strategy to add 5% margin on products sold • Launch of new ad and marketing campaigns to deliver 20% annual increase in new customers by 2011 and 50% by 2013. Productivity • Launch 10 new product offerings per month by the end of year two. • Add one new customer service such as deli counter, in store parties and educational days by one per quarter by end of year two • Decrease cost by reducing annual inventory losses by 20% by 2012. • Decrease cost by reducing energy usage by 20% by Q1 2011 • 30% increase in inventory turns by Q3 of 2010. • Open one new store each year through year five. Competitive Position • Become the #1 leader of fine foods, wines and associated gourmet services and equipment in all current markets and future markets as measured by bi-annual customer surveys and a 20% revenue increase per store and 20% increase in first year sales by new locations. Employee Development • By Jan. 2011 build a self-directed team based organization that is flexible and accountable through social-technical training and employee empowerment. Measured by a 10% increase in revenue dollars per employee and 20% increase in employee satisfaction survey. Employee Satisfaction • Increase employee satisfaction by 20% as measured bi-annual employee surveys by Jan. 2011 through creating increased training and advancement opportunities, employee empowerment, safety programs, increased communications from management, business classes, and a rewards system that includes an employee owned stock program. Technology Leadership • Increase technological competence of the entire organization through a new web site design, launch of ecommerce site, improved tracking and inventory systems by July 2010. Public Responsibility • Improve corporate social responsibility by 20% as measured by bi-annual customer survey and a two fold increase in public acknowledgements of our efforts through educational days, charitable donations of food, dollars and services, and increased political activity in environmental issues. Kudler Fine Foods Short Term Objectives • Increase ROI by 5% in one year through reduce losses, better inventory management and increased revenue streams. • Implement new cost structure within 60 days. • Open one new store in Southern California by end of 2010. • Launch and analyze employee survey covering all employees within 60 days. • Launch customer survey and analyze results within 60 days. • Complete first draft and design test parameters of new website and ecommerce site in 60 days. • Hire consultant for organization and reward systems design within 30 days. • Designate charities for 2010 by June of this year. • Restructure employee training programs including product information, new technologies, KFF market and financial sides of the business, self directed work team structures by June of 2010. • Complete hiring for additional staff needed to implement strategy by May 15, 2010. • Complete design of customer educational events by July 2010. Contingency Plans KFF will need to plan for disasters that could be caused by a natural disaster, technical or systems problems or failure and supply interruptions. To date and for the short term all of KFFs stores will be located in the southern California area. Natural disaster can’t be stopped, but the organization can plan for service disruption by saving an appropriate amount of cash on hand, adequate insurance, and procedures for fast recovery should a natural disaster strike. There should emergency procedures and standard procedures for safety and first aid, and each location should be staffed with a safety manager. This responsibility could fall under a number of the positions in each store. The loss of leadership through owner loss or disablement could cause directional and day to day decision making problems. The self directed-team base system will drive decision making further down and an appropriate level of decision making given to department managers will keep the firm moving and headed in the right direction. This is one reason the company is placing a lot of emphasis on employee training not just in their individual tasks and responsibilities but also in nuts and bolts of business management and finance. Systems’ issues could arise due to power outages, worms, hackers, equipment malfunction, and even dissatisfied employees. Back of power supplies and computer systems should be installed and ready for each location, security software should be professionally managed and constantly updated, and a continued high priority should be placed on employee satisfaction as detailed in the implementation plan. The details of which are employee training, advancement opportunities, feedback systems, employee involvement, and an appropriate rewards system. Concluding the firm should practice a multiple supplier strategy for each of its product lines that are crucial to the business. Suppliers should also be required to have contingency plans of their own and KFF should monitor these plans annually. Critical to Success Factors In complement to managing risk, Kudler’s leadership will need to determine its critical success factors (CSF) and manage these parts of the business closely. Product life cycle is one factor important to the firm’s success. Based on the strategy the business will begin to introduce new services and new products for growth. Understanding the product life cycle of each of these will be very important. “The product life cycle is a concept that describes a product’s sales, profitability, and competencies that are key drivers of the success of that product as it moves through a sequence of stages from development, introduction to growth, maturity, decline, and eventual removal from a market” (Pearce, 2009, p.182). Other CSF’s for Kudler are its relationships with its suppliers, its supply chain strength and reliability, its reputation of quality, and its ability to attract new customers. With expansion plans for new stores the company will also need to create a process of opening new stores that has as little variation as possible, is completed at the lowest possible cost and one that allows the new location to become profitable it the shortest amount of time possible while continuing to promote the organization’s same culture and brand. Environmental Scan and Summary A business must understand its internal and external environments to be successful. This understanding becomes more critical as a firm attempts to expand and grow its market. 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. To gain this understanding the company can use a selection of evaluation tools. These tools will be critical to completing a sound strategy for future growth. In this part of the paper there are four sections for reference; Value Chain Analysis, SWOT Analysis, Resources Analysis, and an External/PEST Analysis Internal Analysis The SWOT analysis performed in Appendix A details the strengths, weaknesses, threats and opportunities that Kudler has. “The external and internal analyses steps of the strategic management process parallel the steps in SWOT analysis. SWOT analysis—an acronym that stands for “strengths, weaknesses, opportunities, and threats”—focuses attention on both the external attributes of a firm’s environment (opportunities and threats) and on the internal attributes of a firm (strengths and weaknesses)” (Mintzberg, 2003, p.11). Kudler consistently meets its customers’ needs by knowing those needs and meeting them with high quality products, a high level of knowledge about those products, and attention to customer service. The owner knows well the markets her company services, her suppliers, and organization. She is the driving force behind the success of the operation. Kathy Kudler has taken time in the past to formulate the correct strategy for her targeted market, has trained her employees well, and has continued to stay abreast of market and environmental changes. For all the good the owner has done for her business this also creates some of its weaknesses and threats. Kathy Kudler owns many of the responsibilities within the organization and is stretched very thin. Her time with the company’s customers is getting shortened due to her need to complete ordering, finance, and inventory tasks to name a few. Her ability to grow the business will be weakened unless she is able to automate some of the tasks, hire competent people for such tasks as finance management and inventory controls, and focus her efforts on growth. The firm needs more attention to a solid marketing effort including a website design and website launch and it needs to find alternate means of financing beyond its current sources. There are additional bullet points of weaknesses in the SWOT analysis and are expanded upon further in the additional attachments. Threats to Kudler are evident with careful analysis of its internal and external environments. The company does not see immediate dangers from current competitors operating in its market place, however the firm’s business model would not be too difficult to duplicate by either an existing larger competitor or by a new arrival. The company operates in the area of San Diego, CA and the economy there is becoming weaker. Since the company caters to high income earners a weakened economy could be a negative impact on the business. Furthermore, without additional financing options the company will find it difficult to finance expansion and a downturn in the economy could have a negative impact on cash flow. There are opportunities for the organization among the current climate. The company has identified areas for potential growth within its current locations and in areas of its markets that would be suitable for additional stores. Internally, Kudler could increase business by adding deli and seafood counters and by increasing its catering service options. Externally, there are other local areas that contain its targeted income group which does not have similar type stores. The business also has opportunities to improve its current operations. Automated inventory systems could drive down the cost of scrap and additions to the management team could install better processes that would allow the owner to spend more time on strategic issues and customer interface. External Analysis Through an external analysis a business focuses on the areas of remote, industry and operating environments. There are subsets of each of these and detail for Kudler Fine Foods can be found in Appendix D. Kudler plays in the high income market and its services and products are well suited for its targeted customers. The current economic climate is suitable; however there are trends in the economy that is creating some concern. Socially the firm has done a good job of meeting its customers’ expectations. It strives to purchase its products from local suppliers, it offers a wide range of organic products and the business gives back to the community. The social fabric of Kutler’s market seems stable at this time, but in the long run the influx of Hispanics could change the demographic situation. The remote environment is something that a business can not change, but it must stay abreast of the situation and make internal changes to survive. “Economic, social, political, technological, and ecological factors that originate beyond, and usually irrespective of, any single firm’s operating situation” (Pearce and Robinson, 2009, p. 94). There aren’t any political concerns at the moment, but technologically the business could be in trouble relatively soon unless investments and changes internally are made. It lacks a good marketing plan and this is evident by its lack of a website. It does not have the systems to collect customer data and it does not have inventory systems that will help keep its costs under control. With expansion thoughts these issues become an even bigger issue. Many of the firm’s competitors are already ahead on these fronts. Kudler has opportunity for expansion in its immediate area and it certainly has opportunities outside of its current market place. Building an effective management team will be crucial to any expansion effort. The concentration of like stores is not an issue at this time and the company has the products and services to be successful. It has enough differentiation from its competitors, although its business model could be duplicated making barrier of entry by another firm low. “The seriousness of the threat of entry depends on the barriers present and on the reaction from existing competitors that the entrant can expect” (Pearce and Robinson, 2009, p. 106). Competitors may have a hard time finding and sourcing the products Kudler has because of the solid relationships it has with its current, local suppliers. This is an advantage the business has created. The firm’s credit rating is very good however it has yet identified additional streams of funding for expansion. This could be a weapon competitors could use to capitalize on the market before Kudler has the opportunity to do the same. Another concern regarding expansion for Kudler would be the need to find similar sources of its products that are grown locally. In the state of California this task is made easy by the nature of the agri-business in that state. “Agriculture is the core of the state’s economy. California produces a larger variety of crops than any other state” (CultureGrams, 2010). Kudler Value Chain Analysis Support Activities Logistics ■ Knows its potential new markets ■ Strategic planning system in place but needs strengthening ■ Value chain activities are handled by owner, needs diversification of duties ■ Ability to obtain working capital is limited to owner’s credit and local banks ■ Information systems are being automated ■ Know threats and operating environment well ■ No indication of working relationship with local government, but does have some with local groups such as farmers and other local suppliers ■ Has good public image due to charity work, purchases and local suppliers Human Resource Management ■ Lacks time, funds or skills to hire and develop new employees to take on higher level of responsibility ■ Pay systems are adequate. No sign of employee dissatisfaction, but career growth limited ■ No indication of participation in local organizations Procurement ■ Has multiple suppliers for its products ■ Raw materials or finished products are of high quality. Could use better supply chain management to cut waste of perishable products ■ Owner handles all inventory and ordering processes. Could cause issue if owner were to become unhealthy or too overwhelmed with duties ■ Currently stuck in leases with no funds to purchase properties ■ Good, long-term relationships with reliable suppliers Technology Development ■ Does research to know products well and has qualified personnel to do the same ■ Relationship with employees is excellent ■ Needs additional technology such as automated ordering system and website ■ Top notch facilities Primary Activities Inbound Logistics ■ Inventory system is lacking due to only owner’s responsibility and lack of systems ■ Scrap of perishables too high ■ Many products are bought locally to reduce cost and ensure high quality Operations ■ Stores are up to date and in great condition ■ Stores are as good as or better than competition ■ Most work is manual. There is little automation ■ Processes are effective and efficient but there is room for automation ■ Store design is effective Outbound Logistics ■ Products are delivered at time of purchase Marketing and Sales ■ Lack of innovation in advertising and promotion ■ Owner knows markets and customers well through first hand knowledge ■ No structured marketing plan ■ Owner has identified new markets and distribution channels ■ Employees are competent in interfacing with customers ■ Has created a high quality image for service and for products ■ Has loyal customer base ■ Dominates local high end/gourmet market Service ■ Owner and employees in close contact with customers which provides input ■ Viewed as high quality service provider ■ Listens well to customers’ needs ■ Guarantees products ■ Employees able to educate customers SWOT Analysis (Global) |Strengths |Opportunities | |Very best products in its market |Perishables supply chain enhancements to reduce scrap | |Upscale stores and neighborhoods |Expand capable management team | |Experienced manager |Increase product lines | |Proven success |Open new stores | |Current strategy has worked long term |Catering opportunities | |Sound mission statement |Addition of a seafood and deli counters | |Socially responsible organization | | |Stores in good locations | | |Donates to local charities | | |In store product expertise available | | |Little competition | | |Dedicated employees | | |Serves niche market | | |Contingency planning | | |Increased trend in cash flow | | |Weaknesses |Threats | |Cash not available from investors |Lease payments could rise restricting cash flow | |Owner stretched thin with current duties indicating lack of trust or |Limited customer base in current areas | |training for employees |Economic downturn | |Lease instead of won buildings |Natural disaster (earthquake) | |Del Mar store not performing well |Owner’s personal finance and local banks are the only sources to | |Short staffed puts pressure on employees |increase cash flow | | |Competitors doing similar businesses | |Does not have a web site | | |Does not have comprehensive marketing plan | | Resource Based Analysis |Tangible Assets |Intangible Assets |Organizational Capabilities | |Three fixed stores |Good brand recognition Viewed as quality |Marketing of products | |Equipment in stores |supplier Excellent reputation |Image promoter | |In store bakery |Owner’s knowledge |High level of customer service | |Products |Valued in the community | | |Catering equipment | | | |Tangible Resources |Relevant Characteristics |Key Indicators | |Leased store locations |Two Stores are in good locations and one is |Credit rating is excellent | |Employees |not. |Cash flow is increasing | |Local Bank Funding |Stores are leased not owned |Fixed assets are in good condition | |Good Credit |Funding opportunities is limited |Wages are steady | |Cash flow | |Sales are growing | |Intangible Resources | | | |Reputation |Kudler’s reputation is high |Upstart success | |Product knowledge |The owner and employees know their products |Repeat customers | |Customer knowledge |well |Growth potential | |Market knowledge |The owner knows her customer base well and had |Knows additional services that will grow | |Expansion opportunities identified |good knowledge of the market place |business at current locations | Remote Environment – PEST Analysis |PEST Analysis for Kudler Foods | |Political |Economic – Southern California | |Country and municipal budgets are strapped |In 2006 organic foods equal 2% of food purchases | |California supports the employment-at-will policy |Organic food sales are growing 20% annually. | |CA continues to lead in green-environmental issues |Consumer spending has dropped by 16% in 2009 in CA. | |Kudler could use CA’s law of contracts deals with the enforcement of |In 2005, the United States Department of Agriculture reported in 2004,| |promises to secure supply and ensure growers of market |organic food and beverage sales were $10.9 billion. | |In 2002, the USDA ruling for certification was not required on small |Farm income was up 1% in 2009. | |organic farmers and processors |Agriculture prices dropped causing net income to drop by 45.7% in | |The USDA and NOP have a list of guidelines for all organic products |2009. | |sold in the U.S., and even the smallest of organic farmers must comply|Retail trade is off 6.4% in 2009. | |with these regulations |Value of the US dollar had its first up tick in most markets in 2009 | |Along with abiding to the Equal Employment Opportunity Act, hiring |The value of the U.S. dollar rose sharply on foreign exchange markets | |managers will need to follow the Equal Pay Act, Age Discrimination, |during the global financial crisis, increasing by 12% on a trade | |and Disabilities Acts to avoid possible legal issues. |weighted basis between September 2008 and March 2009. | |Environmental rulings have the potential to place at risk the state’s |Interest rates are at historic lows thought financial services remain | |premier agriculture industry and all urban areas that rely on water |tight | |traversing the Sacramento-Bay Delta |Unemployment at 9.7% in 2010 | | | | | | | |Social |Technological | |California population will grow by 360,000 by 2011. |Kitchenware technology continues to grow as evident by the Frankfurt | |Disposable personal income (net of personal taxes) grew by +3.1% |trade fair Ambiente in Feb. 2010. | |during 2009. |Retailers are selling more and more products to aid consumers in | |Spending is expected to increase due to federal stimulus. |making gourmet products at home. | |After taxes and inflation real disposable income grew by 1.8% |JIT and better inventory practices in the food industry can reduce | |Population growth has slowed due to slowing of domestic migration |cost and reduce losses | |Consumers are becoming increasingly interested in specialized and |Water shortage is a risk for CA growers. | |diversified products. |CA remains at the leading edge of technology | |Popularity of the Food Network, whose viewership, according to the AP,| | |rose 392 percent from 1999 to 2009 | | |Between 1997 and 2007, there was “the greatest show of force in the | | |rise of organic foods, and the general cultural shift toward health | | |and wellness.” | | Ecological • Much like most of California the company must contend with the possibility of earthquakes, fires, and floods or mudslides. Industrial Environment Industry Boundaries • Kudler operates in the high end food business with a focus on service and quality • Kudler does not compete with traditional grocery chains • There are other businesses that have offer some of what Kudler offers but not in the same complete package Concentration • The level of concentration is low at this time • Chains like Trader Joes’ and a few other small players are in the market but have a different focus • Kudler’s sees room for more stores in near by locations and in other stores Product Differentiation • Kudler’s markets high end products as opposed to a mix of high end and low end like its competitors • Kudler’s sets itself apart with excellent product knowledge and excellent customer service Barriers to Entry • Other competitors could emerge at any time • Current competitors could incorporate what Kudler’s has • Kudler’s is vulnerable to a firm with more monetary resources • Kudler has an advantage with its supplier relationships • Barrier to entry is low Competitors • Kudler has identified several potential competitors in its market. • Although its competitors offer some of the same products (organic, free range, etc.) Kudler focuses on the gourmet chef market • Some of Kudler’s competitors, such as the larger stores and chains, have better financing, larger market share, greater breath of products and services, lower prices, lower cost of goods, and better advertising and marketing departments Customer Profile • Kudler has detailed its customer base well • Its niche is gourmet chefs wanting high quality products • The firm knows the geographic locations of its target market, and the customers’ desires and needs. • Customer base is growing due to increase in home cooking interest Suppliers • Kudler has a good reputation with its suppliers • Has a wide range of suppliers • Has good access to suppliers logistical channels • Suppliers are consistent Creditors • Kudler has a good credit rating with its local banks • The owner has a good credit rating • Is limited to bank and personal financing options at this time Conclusion KFF has several directions the organization can choose for long term success. The information presented is one path that should support the owner’s desire for the company and her long term goals of growth, success, and a profitable company. Using a combination the three grand strategies will give Kudler Fine Foods the best opportunity for a successful expansion. Employing this strategy will allow Kudler Fine Foods to provide high quality customer service, specialty products, and focus on a niche market, which the competition cannot offer. In developing this strategy Kudler Fine Foods will be able to gain a major competitive advantage over their competition. Kudler Fine Foods needs every advantage over the competition when looking to expand and these strategies with a focus base gives them the best chance of success. List of Appendixes Cash Budget See Appendix A titled Kudler Cash Budget for financial projections and budget documentation. Risk Analysis See Appendix B titled KFF Risk Management Plan for risk planning documentation. Gantt and WBS Charts See Appendix C titled KFF Gantt and WBS Charts for implementation planning documentation. The WBS chart can be viewed in the Network Diagram tab. References The University of Phoenix. (2010). Kudler Fine Food Virtual Organization. Retrieved March 21, 2010, from rEsource database. Pearce, J., Robinson, R. (2009). Strategic management. 11e. McGraw Hill Mintzberg, H., Lampel, J., Quinn, J., Ghostal, S. (2003). The strategy process. Prentice Hall, NJ. Author unknown.(2010). California, the garden state. Retrieved on March 15, 2010. found at: http://online.culturegrams.com.ezproxy.apollolibrary.com/secure/states/state_sub_category.php'sn=California&StateSubCatID=3&sid=5 Winter, Carl K. (2006). Organic foods. Retrieved on April 9, 2010. found at: www.ift.org Los Angeles County Economic Development Corporation. 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