Kudler's_Internal_and_External_Environments

Kudler's Internal and External Environments Kudler Fine Foods (KFF) was established in 1998 when Kathy Kudler fulfilled her vision of establishing her own gourmet food store. Since then, Kudler is continues to grow steadily and established trust and as a premiere gourmet grocery store. Now, Kudler have three stores and considering to establishing new store at Carlsbad (“KFF“, 2009, p. 5). The Executive Team at Kudler has expressed a desire to grow more rapidly, and as a result, Kudler must consider some alternative strategies. Planning and strategizing helps an organization set future business objectives and develop actions vital to achieve those goals. Kudler Fine Foods needs to evaluate what changes could created new business opportunities, identify the strategy and tactics that would work, and describe how management can continuously scan the fine foods grocer industry for new ideas need to take place to realize its new vision and mission. To take advantage of competitive opportunities, KFF need to be aware of external and internal factors that likely to influence firm performance. By becoming aware of those factors, the firm can respond appropriately to competitive challenges. Both Internal and External factor assessment involves applying one or more of the following techniques that may uncover its business potentials. • SWOT (Strength, Weakness, Opportunities, and Threats ) • Value Chain analysis (VCA), and • Resource Based Value (RBV) Each of these techniques attempt may expose different dimensions of strategy and each has its own limitations. The aim is to understand firm’s competitive advantage based on the unique resources, skills, and capabilities they control or develop, which can become the basis of unique, sustainable competitive advantages that allow them to design successful competitive strategies (Pearce II & Robinson , Jr, 2009, 164). Kudler’s internal environment can be analyzed to establish the core competencies to exploit market opportunities and avoid possible threats. Kudler must combine this with the external environment factors to secure a successful long-term strategy. By analyzing their capabilities, using above methods Kudler can determine their strengths. Many sight changes on external could have huge blow to KFF. For example, Suppliers can change the cost of inputs, such as when a strong union sets a high wage for a particular craft. If Kudler allows the organic produce famers more power, then the farmers could force terms on Kudler. This dependence increases if Kudler does not have many other sources to supply the produce. Simple SWOT analysis may explain internal and external scan situation. Here are few point observed from KFF SWOT analysis. SWOT are usually summarize in bullet phrases! They seem to have great reputation in local neighborhood; customers tend to return to store, no big direct competition, lots of choice, store location, and small organization. Weaknesses would include a lack of strong management team, handling perishable items, geographical limitations. I was expecting much more detail. The Surveys for 2008 and 2009 provide you with good SW problem areas. The opportunities to develop a unique position in organic catering and to grow the business are examples of the opportunities available for Kudler. Threats – competition, economy, dealing with perishable items, earthquake, and weather are some of the threats. Please more details and specifics so you work can be evaluated! KFF External environment strategies are based on firm’s ability to foresee future business environment and trends based on industries, economy, and political factors. External environment analyze is key for any company to execute its strategies to meet its performance and profitability. “Despite the uncertainty and dynamic nature of the business environment, an assessment process that narrows, even if it does not precisely define, future expectations is of substantial value to strategic managers” (Pearce II & Robinson , Jr, 2009). Conclusion Businesses can improve their practices and develop new strategies. The opportunities are vast. Continuous scanning and monitoring of the environment can provide valuable feedback about whether Kudler needs to reassess its position. Scanning is a tool Kudler can use to search the fine foods grocer industry for ideas that will allow it to update its strategy. The primary objective is to identify early indicator of emerging trends that may result in an opportunity