Mgt_521_Identifying_Issues_at_Kudler_Fine_Foods

Identifying Issues at Kudler Fine Foods MGT 521 August 12, 2010 Dennis Hoerr Identifying Issues at Kudler Fine Foods When analyzing a business situation, it is essential to differentiate between issues and problems. Problems need to be solved. Issues need to be resolved. Problems have current negative effect on the company. Issues have potential negative effect. Problems demand an immediately remedy. Issues call for eventual resolution. The issues at Kulder Fine Foods (KFF) can be broken down into a series of business categories: management, human resources, marketing, and operations. Kathy’s management strategy is ill-equipped to address the current and future needs of her organization. The skills needed to establish the first store are inadequate to transition to a business enterprise. Of particular interest are the in-store management positions. What job descriptions were the manager and assistant hired to accomplish, and what are they currently doing' A transition of the ordering, finance/accounting, and authority for decision-making to the management team of each store would free Kathy be present in her stores with her customers. Human resources demand a forward thinking comprehensive strategy. Kathy will need to outsource her HR needs, or consider hiring an HR generalist to manage this area. She must release the hiring, firing, and training of employees. Implementation of an effective compensation and benefit plan will secure the long-term commitment of her key employees. KFF should also consider a “key man” insurance policy on Kathy. Marketing presents a threat to the ongoing success of KFF. The location of the second and third stores present a threat to the entire organization. KFF must clearly define the ideal customer (“gourmand”), develop demographic knowledge to know where to locate future stores, and determine an effective marketing strategy to reach those customers. Do Del Mar and Encinitas actually have an adequate potential clientele base to justify a store' Investigation of the possible parallel business use of the Del Mar store could prove profitable. Perhaps that location could be used to launch the catering business, or a different type of specialty store could more accurately match the area demographic. Changes in the operations process and structure will considerably increase efficiency. Reducing the on hand inventory, and developing an expedited specialty order process could save money while providing expanded specialty income. KFF could also develop a relationship with local restaurants to sell their “good” groceries at discounted prices to recoup inventory investment. Finance and accounting procedures need to be centralized via new hire or outsourcing. In the final analysis, Kudler Fine Foods must effectively address these and other important issues before moving forward in an expansion policy. These cracks in the business enterprise will become gaping holes gushing money if any more expansion pressure is applied.