Strategic_Plan_Update

Running head: STRATEGIC PLAN UPDATE – FINAL VERSION Strategic Plan Update – Final Version Submitted to ….. By ….. In partial fulfillment of the requirement for the Masters of Business Administration ….. ….. Strategic Plan Update – Final Version Executive Summary Kudler management is constantly looking for innovative ideas to improve customer satisfaction, as we look forward to become San Diego’s favorite local store. As part of our continuous commitment to loyal customer, Kudler is proud to announce its growth strategy that includes adding a new store location, improving internal operations, enhancing the quality of products, and upgrading store infrastructure. We hope you are as excited as we are, because we value customer loyalty more than anything else here at Kudler family. Company Overview Kudler Fine Foods is a local upscale specialty food store with three locations serving San Diego metropolitan since 1998. The company management is divided into three main branches - Finance & Accounting, Store Operations, and Administration & Human Resources; accordingly directed by Harvey Stephens, Yvonne Reynolds, and Brenda Wagner. Kudler's main operations include Purchasing, Advertising, Accounting, Inventory Management, Forecasting, and Merchandise Selection and Pricing. As the founder and current president of operations Kathy Kudler’s initial vision was to create a store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want. Kathy was certain that combining the convenience of one-stop shopping with reasonable prices would be a recipe for success. Kathy roles extend managing all departments through coordination with store mangers. In addition to her primary management roles, she is involved in almost every stage of operations, ranging from placing purchase orders, or identification of new gourmet items to company advertisement and marketing strategies. Mission Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that your culinary visions can come true. Our management strives to improve the quality of services everyday and to further expand our locations to become San Diego’s premier local marketplace. Vision Kudler Fine Foods will be the premiere gourmet grocery store for those savvy shoppers who are searching for the finest meats, produce, cheeses, and wine. We value customer loyalty and satisfaction more than anything else, and we hope our new state of the art location would further enhance your shopping experience. Social Responsibility Statement Kudler Fine Foods uses only the finest organic ingredients. Whenever possible, we purchase local produce from organic farmers. We use unbleached flour in our bakery goods and we don’t add unnecessary preservatives to our products. Food is rotated from the shelves on an ongoing basis. Those items that are still in “good” condition are donated to local homeless shelters and food kitchens. We love our city and we would like to keep it clean. As part of our social responsibility we are encouraging recycling habits at our store, for example by providing in-store banners and signs, placing separate trash bins, and holding Sunday awareness workshops for our neighborhood kids (Kudler Fine Foods Website, 2010). Future & Implementation Plan A new branch location is set to be opened this coming October, serving more valued customer throughout our beautiful city. We are excited and proud to provide you with an overview of our new expansion plan outlined below. A WBS and Gantt Chart is also attached. To achieve long-term prosperity and continue our successful tradition, Kudler management must establish long-term objectives in following six areas: Profitability The ability of any firm to operate in the long run depends on attaining an acceptable level of profits. Financial statements from past years show a steady growth in overall profitability, and we feel confident in pursuing the growth strategy. Kudler management has recognized two main areas of improvement, Investors and Pricing. Investors – With 3 established store operations and highly improved brand equity, there is a promising potential to attract more investors to be part of Kudler’s even brighter future. Managing current investors and creating investment opportunities for future growth is considered an essential part of the implementation plan. Pricing – Considering the increasing consumer demand and improved product quality, a new enhanced pricing strategy should be implemented to cater to the growing market. Productivity Kudler is planning to add experienced personnel to its stores in order to increase overall productivity and enhance customer service. Suppliers – Supplier management and communication can help maximize productivity in the long run. Kudler is currently contracting with relatively small local suppliers, which could possibly create bottlenecks in the process, considering the future growth. As an alternative strategy, Kudler management intends to acquire some of its local supplier and add infrastructure and value to them as part of the whole organizational enhancement. Management Recruitment – The board of directors strongly believes that adding experienced management level personnel could help increase productivity. Formation and leadership of a new recruitment department has been assigned to one of the current HR managers as part of the overall implementation plan. Competitive Position We know local competition, and we understand our customer’s needs and standards. Our goal is to become San Diego’s premier store as we work around the clock to achieve total customer loyalty. Kudler management has identified 5 unique improvement strategies that can be implemented as a part of the overall growth plan to lead them to become the best in the competition. • Store Architecture Redesign • Catering Services • Community Activities • Valued Customer Discount Program • Organic Products Employment Development Kudler’s management is in process of implementing advanced internal trainings to achieve higher standards. We are committed to offer excellent customer service that goes with our quality products. To meet the growing demand of our loyal of our valued customers, we have made arrangements to improve employee trainings in all departments. We are also adding value and guaranteed satisfaction to our future operations by enhancing our current hiring process. We would want to make sure that every new employee is highly qualified, enthusiastic about the job, and more than happy to serve you the “Kudler Way.” Employee Relations “Happy employees make happy customers.” That is our motto! We take pride in treating our employees as family members. Our goal is to make sure we keep our family happy and motivated everyday, so we encourage employee values and offer various incentive programs, bonuses, and promotions to maintain high moral at work place. In addition, as part of our implementation plan, we are adding a state of the art customized employee review & feedback application to our existing intranet features. Technological Leadership Kudler is planning to add new state of the art technology infrastructures to its current store operation that will expedite your shopping experience. Technology is at the heart of Kudler’s growth plan, as the board of directors and Kathy herself strongly believe in the power of technology and its direct impact on improving efficiency all around the stores. Technology can simplify and speed up daily routines such as sales, inventory, and product management. Kathy is a big fan of Internet technologies, and a new online store has been included in the implementation plan. Designing and creating a fully-secured online shopping cart is already budgeted, under development, and scheduled to be live within the next year, as management indents to boost up the sales and add customer value. Financial Goal Kudler has recognized the opportunity to increase overall productivity and profitability by the means of expansion. According to last year’s financial statements, the company reported gross sales of $10,796, and the financial team has calculated an approximate growth of 24% by the end of first year of expansion plan, which 16% of overall growth would come from the new store’s profits. Calculated estimated budget for expansion plan, including leasing expenses, marketing development costs, new infrastructure, new employee salaries and other newly added services and in-store features has been approved by the board of directors, and Kudler management is confident to begin the implementation stage. Environmental Scanning & New Location We are currently assessing other geographic areas in Southern California to continue our growth. Based on our environmental survey results, we have identified Carlsbad as one of the most promising nearby locations. High property values, above average median family incomes, and high education levels have made Carlsbad one of the wealthiest communities in California and in the United States. A low population density, coastal location, thriving commercial sector, and an award-winning school district all contribute to the high cost of living in the area. It is one of the highest income places in the United States. The only major stores in that area are a Vons, an Albertsons, a Prontos’ Gourmet Market and a few convenience stores. The similarity of Carlsbad’s consumer culture to our La Jolla’s branch suggests that we have a legitimate chance to be competitive store in the area. During the summertime, many people come to Carlsbad to go to the beach and we expect our summer sales to be quite high. Our ultimate goal is to compete in high-end areas in other cities as well. Our long-term plan includes possible sites in: Scottsdale, Arizona; Naples, Florida; and Greenwich, Connecticut. Risk Management Any expansion plan would usually involve unpredictable challenges along the way, which should be accounted for. Kudler management has suggested a comprehensive risk assessment plan to prepare the store managers and personnel for any potential risks. Few alternative plans have been advised by the board to make sure all upgrades turn out to be a successful. Cover Letter From: ….. To: Kathy Subject: Strategic Plan Update – Growth Strategy Dear Kathy, I am excited to present you with our newly updated Strategic Plan. The new plan outlines some the major upgrades we are anticipating in the near future as part of our growth strategy. The research team has picked Carlsbad area for our new location, and I am sure you are going to love the new facility near your own house. The plan is already reviewed and approved by our store managers. Upon the board’s approval we can begin the 1-year implementation stage by as early as end of summer. Looking forward to hear from you, Thanks, ..... WBS Chart [pic] Gantt Chart [pic] References Kudler Fine Foods Website, (2010), Kudler Fine Foods, Retrieved June 20, 2010