Kudler’s Strategic Plan Essay Example for Free

Kudlers Strategic Plan EssayThe mission statement should be a snuff it and succinct representation of the enterprises purpose for existence (BRS Center for Business Planning, 2010). Kudler ok Foods mission statement is to emerge the finest assortment of their wines and nutritions with a cognitionable backing staff. VisionKudler Fine Foods vision proudlights their image for the future and their motivation. The gastronome grocery stores vision is to sustain superior and graphic symbol foods, at competitive prices, with informal service. Values StatementsThe values statement provides boundaries on how such success result be achieved and establishes a powder compact you ask all stakeholders to accept by answering the question How go out we be shake off as we come after success? (Magus Consulting, 2010). The value statement of Kudler Fine Foods focuses on employees dedication, high standards, and cleanliness. Their employees and customers are priority and Kudler provides the subject matter to inspire employees, which in maintain long-term relationships with customers. Environmental interpretKudler Fine Foods performed an SWOT analysis s send word to determine the play alongs new strategies. To conduct the analysis, the comp whatsoever conducts SWOT analysis to establish its circulating(prenominal) conditions. StrengthsKudler Fine Foods is dispirited, customer-oriented organization in which the owner, Kathy Kudler, interacts with staff members weekly. The confederation canings include a wide variety of timberland fruits, vegetables, wines, and cheeses. In addition, the stores are in excellent economic regions where customers can afford the prices. Further more(prenominal), the firm has repeat customers, which demonstrates that the company has an impeccable reputation and high customer satisf challenge (Apollo Group, Inc., 2007).WeaknessesKudler Fine Foods sells closelyly perishable foods, and close to 12% of the stock is removed from the s helves to ensure freshness, which also tops in waste and lost profits. In addition, the stores take in high payrolls associated with specialty positions and small trouble that makes managing, club, and maintaining inventory difficult for the owner. Kathy is managing all the stores, ordering supplies, and maintaining inventory. A management simulate in which Kathy performs all major activities limits maturement and represents a risk because if she became ill, she would not have a replacement, which would have a negative impact on store operations (Apollo Group, Inc., 2007).Kudlers Fine Foods External analytic thinkingOpportunitiesKudler Fine Foods has the opportunity to fulfill new(prenominal) market needs by including additional bon vivant products to their offer such as chocolate and tea, a fish counter, a deli counter, among opposites. This horizontal expansion of the argument volition line new customers and increase the share of wallet from current customers.Other expansion opportunities for Kudler Fine Foods include the consolidation and growth of the catering business and the entrance to the e-market by offering delivery of bon vivant products and ordering of catering services. The Internet is usually a lower cost channel precondition that less employees are needed to maintain it and to drive an increase of the customer brute.Finally, the most obvious growth opportunity for the company relies in geographic expansion. Opening more stores in the California area and in other states is a possibility for Kudler Fine Foods if they can increase their management capabilities. (Apollo Group, Inc., 2007).ThreatsKudler Fine Foods, like other businesses, faces threats congeneric to the economic conditions of the region in which it sees. The market for gourmet products is very sensitive to economic downturn because intake of such items usually responds to desire rather than necessity. Current unstable weather conditions and natural disasters (lik e earthquakes) due to spherical warming also pose a threat of increased costs of produce if it affects local producers that hang on Kudler Fine Foods.Other threats come from direct and indirect competition. If competitors conduct to expand geographically or to snuff it their product lines to include the products Kudler Fine Foods today provides, this expansion could have a negative impact on the companys bottom line. other threat could be that traditional supermarkets are expanding their offers to include positive products and some gourmet items. Traditional supermarkets usually have higher bargaining power, which allows them to offer lower prices, and they have the advantage of c everywhereing a wide rage of needs in a same location. (Apollo Group, Inc., 2007). analyze of the individual strategies from Week Four and a recommendation for the best dodging for Kudler see strategies below (in pink) and choose best strategyStrategic Plan Kudlers strategical plan involves increas ing efficacy of their management and employees. Firms that implement the strategy of operational excellence typically restructure their delivery processes to focus on efficiency and reliability, and use state-of-the art information systems that emphasize integration and low-cost transactions (Pearce Robinson, 2009). Kudler Fine Foods requires exceptional customer service because the store is a customer-oriented. Companies excelling in customer intimacy combine detailed customer knowledge with operational flexibility. They respond quickly to almost any need, from customizing a product to fulfilling special requests to create customer loyalty (Pearce Robinson, 2009). Therefore, their strategic plan will include ways to retain their customers, as customers are the most important to their bottom-line. Concentrated Growth StrategyKudler Fine Foods should check the concentrate growth strategy. According to Pearce and Robinson (2009), the concentrated growth strategy is the least risk y grand strategy. Successful implementation of a concentrated growth strategy would increase KFFs market penetration. Smaller companies such as Kudler Fine Foods with limited resources can increase market position with a concentrated growth strategy. In addition, this strategy can succor KFF to increase the number of repeat customers and their usage rates (Pearce Robinson, 2009). However, this strategy does entail some risks. These risks include changes in the economy, possible slow market growth, vulnerability to high opportunity cost related to secondary strategic approaches, and the probability of financial losses by KFF related to poor forecasts (Pearce Robinson, 2009). Product development focused on new products Kudler could developProduct development is the process of creating a new product to be interchange by a business or enterprise to its customers. A product can be any item from a book, musical composition, or information service. The task of developing outstanding n ew products is difficult, time-consuming, and costly. However, quality products are not simply casted, but instead they evolve over time through hours of research, analysis, design studies, engineering and prototyping efforts, and finally, testing, modifying, and re-testing until the design has been perfected (Riley, 2009). Kudler Fine Foods is already a supplier of gourmet food and adding burnt umber products to the companys selection would put them another step ahead of the competition.Demand for both coffee and coffee drinks is so high that recent surveys estimate that coffeehouses alone sold $8.3 billion in coffees and coffee drinks and that amount is expected to reach almost $19 billion by 2011, according the Specialty chocolate Association of America. It reports that the United States coffee industry has grown almost 50% from $7.76 billion in 2000 to more than $11 billion in 2005 and the figures keep climbing (Rosen, n.d., p.1). The type of coffee products that Kudler Fine Foods could market is gourmet coffee, flavored coffee, and decaf coffee. Differentiation and customer responsivenessAnother alternative strategy that Kudler Fine Foods may consider to realize growth would be differentiation. Differentiation is designed to appeal to customers with a special sensitivity for a particular product attribute (Pearce Robinson, 2009, p. 204). Differentiation back ups in baseing loyalty with customers as well as it enables an organization to charge a premium for its products and services (Pearce Robinson, 2009). Differentiation helps separate a brand from others and build a reputation for excellence (Pearce Robinson, 2009). Kudler may use differentiation to separate itself from competitors and help build its reputation, which would result in increased customer loyalty and would appeal to those customers seeking for specific attributes.Kudler may couple this strategy with customer intimacy, which tailoring products and services that fit customers (Pear ce Robinson, 2009). Customer intimacy assumes certain degree of knowledge about customers and the flexibility to make necessary adjustments. This long-term approach is designed to satisfy customers. Because Kudler is a relatively small operation with centralized management, it has the flexibility and the resources to grow to know its customers and build the kind of relationships that will result in lifetime customers. Market development by adding a sales channelKudler Fine Foods has been successful in marketing its products through several stores where customers can choose and buy gourmet products. As revealed in the companys SWOT analysis, the superior selection of a variety of products has been a critical strength to support such growth. According to Pearce and Robinson (2009), market development allows firms to leverage some of their traditional strengths. In this proposed strategic alternative Kudler Fine Foods can use its excellent selection of products to appeal to an even la rger base of customers by selling its products through the Internet. Online sales have presented two digit growth rates in the ago four years (Greene, 2009). Internet can be considered a cheaper channel to drive growth given that it requires less capital investment than opening a new location and it reaches a larger base of customers. Advertising in other mediaOther strategic option includes advertising with newspapers, a local radio receiver station or television advertisement. Placing a weekly ad in a local newspaper, KFF will become a known brand for fine gourmet in the Del Mar area. Because the advertisement will be in a local paper, it pinpoints the target market and reduces costs. Kathy should advertise on the radio during florescence hours her free cheese samples and wine meetings. If the cheese, dairy, and wine areas are in the front of the store, Kathy should consider placing it near the back. The last is to compel consumers to walk around the KFF store to see their prod ucts before arriving at the cheese and wine area.Another way to market Kudler is through television. Because Kudler is selling locally, expensive commercials will work against them. By using a local advertiser, the intended message will be seen by consumers in that particular demographic area. be will be minimal because advertising in local newspapers, radio, and television will be do locally. Implementation Plan Create a WBS and Gantt chart for the new strategy. Include objectives, functional tactics, action items, milestones, tasks, resource allocation, and a deadline. In addition, analyze the key success factors for plan implementation. Include cash calculate for the implementation plan and forecasted financials for Kudler. I did this last week, but I was not sure if I did this correctly. serve excel spreadsheet Work Breakdown Structure (WBS)Incorporating a work breakdown structure will assist KFF in their efforts to assign responsibilities and manage time. Currently Kathy is answerable for each department and which takes away her time from other managerial duties. The WBS has four sections, planning and supervision, inventory management, staff management, and marketing. Planning and supervision refers to how Kathy will operate Kudler Fine Foods. Kathy will make plans, verify the budgets, and meet with shift-supervisors for each department.Inventory management is crucial for a gourmet grocery store. Forecasting sales will help reduce chances of ordering too lots food. A customer count can be incorporated by issuing savings cards so customers can attach to his or her key ring. This device not only tracks what customers are acquire but also their geographic location. Food count will let shift-supervisors know how much food should be ordered every two days. Food management must be accurate because KFF offers the freshest foods and ordering too much food will cost the company.Kathy has to manage her staff so that she is not over or understaffed. Because there are six sections to KFF, there should be at least three employees in each department. Employees should strategically be determined in their area of strength. For example, an employee with excellent math skills, they should be placed on the register. In addition, the employees should be cross-trained in the event of someone taking leave. Shift-supervisors are also responsible for coordinating employees schedules.Marketing for a gourmet store is chief to earning sales. Kathy has to study the local businesses, schools, stores, and go through who the competitors are. This understanding will assist in becoming more profitable and peaking customers interests. once Kathy is aware of the other factors, it is easier to strategize. In addition, considering holidays and vacations will alert Kathy of when to expect crowds and order more inventory. To continue to attract customers, Kathy should continue to offer free samples on Saturdays. Once a potential customer is interested, he or s he has a higher chance of coming into the store and spending. A guest check average will assist with ordering inventory because the average calculates the number of customers divided by the money spent in the store.