Strategy_for_Kudler

Environmental Scan - Kudler Fine Foods Kudler Fine Foods is a local gourmet food store company in the San Diego metropolitan area. The company by President Kathy Kudler and has three stores located in La Jolla, Del Mar and Encinitas, California. Kathy Kudler's vision is to "create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want" (University of Phoenix, 2010). The Executive team at Kudler Fine Foods has expressed a desire to grow more rapidly and as a result the team must consider some alternative strategies to not only support the goal of future growth, but also create opportunities for sustainable growth. Environmental scanning, a method for identifying, collecting and translating information about both internal and external influences into useful plans and decisions, will be an effective tool for the Kudler team. Information can be gathered from influences that include events, trends, and relationships that are either internal or external to the organization. The information is utilized by key managers, in this case Kudler’s Executive team, to evaluate the strengths and weaknesses in response to threats and opportunities, then the team can take that information and create both strategies and opportunites that will bring sustainable growth to the business. The two tables below show how Kudler’s Executive team could potentially use the information gathered in such a scan to create strategies for future and sustained growth. External environment Influence | Industry | Consumers | Economic | Examples | New competitorsSubstitutesCompetitors going out of business | New productsChange in consumer tastesTrends influencing demands | Change in economy, i.e. recession affecting disposable incomeChange in supplier costs (due to weather, fuel costs, etc.) | Strategy/Opportunity | Potential for partnership and/or alliances to create new revenue stream by offering additional products and services. | Differentiation strategySurveys to monitor and forecast changes in consumer tastes/trendsMonitor internet purchases/searches to track consumer tastes/trends | Increase purchase of products that are low cost-high marginIncrease number of local suppliers to lower costsHost “Farmer’s Market” to encourage and grow local supplier relationships | Table 1 Internal environment Influence | Cost | Technological | Human Resources | Examples | Profitability increased by cost reductions | Converting to improved/updated ERPNew challenges in organizing, analyzing and protecting information | Employee turnoverEmployee satisfaction | Strategy/Opportunity | Increase purchase of products that are low cost-high marginIdentify and use “best practices” to increase efficiency/productivity | Real-time data for real-time decision-makingImproved supply-chain communicationExpand into business-to business market | Employee surveys to increase 1) job satisfaction and 2) introduce new ideas for improving products/servicesOffer home delivery services of their gourmet meals | Table 2 Strategic management involves the major decisions, business choices and actions that will guide the activities and new initiatives of Kudler. In order to manage effectively, analysis of both the internal and external environment must be conducted in order to formulate and implement the best strategies that will provide Kudler with the competitive advantage. Environmental scans of internal and external factors play a crucial role in influencing company’s future growth. Environmental scan is basically a study of the internal and external resources that may involve a study of product quality, human resources, regulatory compliance, marketing, competitive analysis, waste management, storage utilization, geographic location, technological advances, data planning, environmental protection, or safety.   Kudler Fine Foods can benefit from exploring internal and external opportunities for growth and expansion. As a premier gourmet grocery store, Kudler Fine Foods environmental analysis is aligned with the company’s mission for providing customers with the finest selection of the very best foods and wines for gourmet shoppers with exotic culinary vision and taste. References Barney, J. B. (2002). Firm resources and sustained competitive advantage. Journal of Management, 17,99-120. Cruz, Elfren (2006, August). FRAMEWORK. Business World, 1. Retrieved November 20, 2007 from ProQuest Newsstand database. (Document ID: 1087162851).