Kudler_Food

Problem Solving Steps: Kudler Fine Foods Masood Jaffar MGT 521 Management Group ID – MBAA0NPFL9 Feb 23-April 5 2010 Mach 28 2010 Samuel L. Cunningham, CIA, CFGM, CDFM, MBA Facilitator, University of Phoenix- Online Campus College of Graduate Business Management Abstract This problem solving paper on Kudler Fine Food is a systematic step-by-step approach to identify opportunities to create value for the business. Case study included review of KFF strategic plan prepared in 2003 and five years tactical plan. A team of five classmates discussed KFF strategic plan, reviewed financial statements, and customer survey results done by KFF in 2006 and 2007. Team discussed several problems and selected top five. KFF management and leadership problem is analyzed in this paper. KFF is a typical start up scenario of a successful entrepreneur who tends to be autocratic and afraid of losing control. There is lack of focus in building management team to meet current and future business need. KFF has not acquired professional resources, train staff, build and empower employees, and instilling culture of customer focus. This paper identifies correct problem, provide and evaluates options to address the problem to accomplish corporate vision, and assess risks associated with each suggested option with mitigation plan Step 1: Issues and Opportunity Identification KFF published a Strategic plan describing business mission, SWOT analysis, and tactical plan with major mile stones over next five years. Tactical plan laid out for more than five years implementing actions on current weaknesses and exploit opportunities. KFF anticipates organic growth through additional product & service, open and new store, and close out one store. Operational changes include automation of inventory and purchasing, hire financial help, and use Internet for marketing and order processing. Step 2: Genuine problem KFF expanded business to three locations with inconsistent market analysis. KFF did not train or acquired critical human resources. An inexperienced management team led by a passionate owner prepared Strategic plan. KFF management team is inspired by cash flow and misled by poor analysis. This plan suggests some short term correction action for operational needs. Mainly automating inventory and purchasing control, obtaining financial help, and developing website. KFF plans toward organic growth, expansion, and closing down poor performing store. Therefore, not addressing the real problem that is autocratic leadership style, and inexperienced management team. “Management is becoming less of a top-down command and more a process of giving employees authority to make important decision” (Barnard, 1999, The Empowerment of Problem-solving Team: para 1). Step 3: End State vision KFF is a good business model at start up. This specialty y business caters high end limited customers requires high level of customer service and understanding voice of the customer. KFF is adding value and bringing more product, and tested favorably to new market segments, but voice of customer in terms of 2006 survey was not heard. Customer satisfaction continues to drop in 2007. KFF management team should be trained way ahead of business growth. Change of organization culture with empowerment and participative leadership is critical for long term business survival. Step 4: Alternative Solutions Option 1: Kathy obtains some leadership training, professionally train employees, and instill empowerment in the organization. Option2: Hire an experienced general manager, who could be complete Kathy’s backup. Option 3: Hire consultant(s) to identify business needs and train staff. Option 4: Recruit experienced key managers with experience in various business functions. Option 5: Stay on the course, follow current tactical plan Step 5: Evaluation of Alternative Solutions Step 6: Identification and mitigation of risk Risk Assessment and Mitigation Techniques | Alternative Solution | Risks and Probability | Consequence and Severity | Mitigation Techniques | Option 1 | * Reduced attention to business (M) | * Loss of customers * Loss of profitability * Delay growth plan | * Train, delegate, and empower staff * Delay growth | Option 2 | * Hire wrong person (L) * Hard to find (H) * Increased expanse (H) | * Low profit * Delay growth plan | * Use recruiter * Eliminate waste | Option 3 | * Increase expanse (M) | * Low profit | * Eliminate waste | Option 4 | * Increase expanses (H) * Hard to find (H) | * Low profit * Delay growth plan | * Use recruiter * Eliminate waste | Option 5 | * Loss of customer (H) * High CoGS (M) * Employee retention (H) | * Loss of Profitability * Cash Flow problem * Bankruptcy | * Train staff * Delay growth * Focus on operational excellence | Step 7: Make the decision Option 4 looks like best solution to KFF real management problem. This option leads to resolved immediate problems and accomplishes long term goals. Best investments to build any business are acquiring appropriate human resources and instill healthy culture. According to Kane-Urrabazo, C. (2006) culture represents the personality of an organization. Consider to implement partial Option 1 for instilling customer oriented culture. References Barnard, J. (1999). The Empowerment of Problem-solving Teams: is it an effective management tool'. Journal of Applied Management Studies, Vol. 8, No. 1 , 1999 Kane-Urrabazo, C. (2006). Management’s role in shaping organizational culture. 2006 Blackwell Publishing Ltd. Journal of Nursing Management 14, 188-194.