Mba__502managing_the_Business_Enterprise

RUNNING HEADING: STRATEGY Strategy Elisa Hatchett University of Phoenix MMPBL/502 December 7, 2009 Dr. Patricia Anderson Abstract The document explores the changes in technology and how technology has change over the years. It will assess how technology can provide opportunities for a company. The strategy of Kudler has been explored and examined. There are suggestions for the company to assist with the company to grow and utilize all of their resources. The document makes business look at other businesses to gain information for the success of the Kudler. Table of Contents Introduction…………………………………………………………………………………….4 Changes in Technology…………………………………………………………………………4 Generic Strategy………………………………………………………………………………..5 Tactics to Use…………………………………………………………………………………..6 Updating Strategy………………………………………………………………………………6 Conclusion………………………………………………………………………………………7 References……………………………………………………………………………………….8 Introduction Technology has continued to emerge over the years. At one point, companies used technology to gain a competitive edge but now some companies are working together to use technology to assist the consumer. Strategic information systems are systems that support or shape an organization’s competitive strategy (Turban, Rainer, & Potter, 2003). Kudler is trying to expand their business to bring in more customers. One strategy that Kudler is trying to capitalize on is the organic market. This is something that they feel many consumers are attracted to at this time. Organically Grown Week 1990 -- the first such national promotional and a project of the Committee for Sustainable Agriculture -- drew support from approximately 400 retail stores in September, but they were primarily small operators that specialize in natural and organic foods -- not the mainstream supermarket chains, where the sales growth of organic produce is more problematic (Supermarket New, 1990). Kudler should begin using technology to attract consumers to the growing business strategies that they have. From one aspect, Kudler is trying to expand to reach a larger market, but from another aspect, Kudler is trying to expand the amenities that they currently have. Changes in Technology Information technology contributes to strategic systems in several ways: Information technology creates applications that provide direct strategic advantage to organization, IT supports strategic changes such as reengineering, IT provides for technological innovations or acts as an enabler of innovation and IT provides competitive intelligence by collecting and analyzing information about innovations, markets, competitors, and environmental changes (Turban, Rainer, & Potter, 2003). There are many companies that utilize the internet to gain information about companies. Kudler has a website that gives information regarding the type of Fine foods they have. They will also be putting on their website about expanding to other services and also promoting organic produce. This could be a huge opportunity for the company. A more established company will use this information to offer other services that are more attractive to the consumer to out sell or get the consumer to come to their place of business. Independent supermarkets targeting the surging natural and organic segments need to fine-tune their differentiation strategies, according to Emile Brezux, senior vice president of sales and marketing, Associated Grocers, Baton Rouge, LA. “You can’t outdo Whole Foods or Wild Oats, so you must find your own positioning” (Orgel, 2007). Kudler must think about the stores that are much larger than them and try to compete as best as possible with the bigger stores. Kudler may not be able to offer the same deals as the bigger stores that allegedly specialize in organic products. Generic Strategy Kudler is trying to corner the market with their fine wines, gourmet cheeses, and different produce that most supermarkets do not have. Kudler bakes their breads fresh everyday and these are things that gourmet cooks looks for. Kudler’s strategy is to bring in the organic products because there are so many health conscious individuals. Organic foods have migrated out of the specialty health food shops and into the mainstream to become a multi-billion dollar business (Britnell & Allan, 2009). Kudler understands that they must train their staff and managers with regard to understand the product life of their foods and how to get the best product and fresh product to their customer. Fisher has developed a framework to help managers understand the nature of demand for their products and then devise the supply chain that can best satisfy that demand. Many aspects of a product's demand are important—for example, product life cycle, demand predictability, product variety, and market standards for lead times and service. Fisher has found that products can be categorized as either primarily functional or primarily innovative. Because each category requires a distinctly different kind of supply chain, the root cause of supply chain problems is a mismatch between the type of product and type of supply chain (Chase, 2005). Kudler is trying their best to expand for the demands of the public. Tatics to Use Strategic management involves the major decisions, business choices, and actions that chart the course of the entire enterprise (Mejia & Balkin, 2002). Kudler should do some research on the internet to find out who provides organic product to the larger organic providers, i.e. Whole Foods and compare the prices to see who will provide the better prices. Also, team up with other businesses to promote the catering services and other expansions that are trying to materialize; there are many big companies that team up for the betterment of both business. This is another strategic system for companies called strategic alliance—wherein two or more companies share an interorganizational system. For example, GM, Ford, and Chrysler have an extranet that enables them to compete against Toyota and other car manufacturers (Turban, Rainer, & Potter, 2003). If Kudler uses this approach with another catering business and also with a organic provider they may be able to get an edge on things. Kudler should explore all of the options and going into business with a smaller business could be a way to corner the market. Kudler would not give all of the information to the other business but they could work together where both companies are able to profit while helping each other. Updating Strategy Kudler may want to have certain grocers pay a fee for having their product on their shelf. There are many restaurants that sell their product in the stores. Kudler may want to explore this option to assist with some of the expenses that the business may encounter. Kudler may be able to use the money to assist in the advertising of the new business that they are trying to generate. Observing environmental changes on a continuous basis to deternine whether a clear trend is emerging is referred to as monitoring (Mejia & Balkin, 2002). Planning must be done to ensure that Kudler continues to maintain the same or better standards. Kudler’s prides themselves on being in stock 95% of the time. The management team will have to continue to monitore the market ensure that Kudler is staying up to date with the changing of times. Kudler must ensure that they are listening to the demands of the local of each store and also the demands of the consumers. Kudler may want to go to other business similar to their and find out what individuals are coming in buying and see what is selling and what is not selling. By keeping abreast with the market, Kudler will do better with the strategy they are trying to implement for the company. Conclusion Kudler has an opportunity to excel in the Fine Foods business. The company should explore how they would like to approach the market. There are several ways that the company can use. There is so much advance technology now that researching on the internet will assist the company. Some of the managers could also do mystery shopping at their competitive to see what is selling a lot of and what is not. Listening to their loyal customers also will assist them with their new plan. Jumping into the new market without any research is dangerous for the company and could lead to problems later. Reference Chase, Ricard, B., Jacobs, Robert, F., Aquilano, Nicholas (2005). Operations management for competitive advantage (11th ed.) McGraw-Hills. Gomez-Mejia, Louis R., & Balkin, David B. (2002). Operations Management (2nd ed), McGraw-Hills. Gomez-Mejia, Louis R., & Balkin, David B. (2002). Strategic Management (2nd ed), McGraw-Hills. Saxton, L. (Dec 24, 1990). Organic week planners to solicit more chains.  Supermarket News. , 40, n52. p.19(1). Retrieved December 07, 2009, from General OneFile via Gale: http://find.galegroup.com/ips/start.do'prodId=IPS Turban, Enfrain., Rainer, Kelly R., Potter, Richard E. (2003). Stragic Systems and Reorganization (8th ed), Wiley. University of Phoenix (2003). Kudler Fine Foods. Retrieved from University of Phoenix Web site: https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/PortBus.htm