Kudler’s Strategic Plan Essay

The mission affirmation should be a clear and succinct representation of the enterprises purpose for population (BRS Center for Business Planning, 2010). Kudler beauteous sustenances mission statement is to supply the finest motley of their wines and foods with a knowledgeable support staff. VisionKudler very well Foods vision highlights their stick out for the future and their motivation. The bon vivant grocery chisel ins vision is to get down superior and musical none foods, at competitive prices, with friendly service. Values StatementsThe value statement provides boundaries on how such success allow be achieved and establishes a covenant you ask all stakeholders to accept by answering the oral sex How will we behave as we pursue success? (Magus Consulting, 2010). The value statement of Kudler lovely Foods foc physical exercises on employees dedication, high standards, and cleanliness. Their employees and customers are priority and Kudler provides the core to inspi re employees, which in maintain long-term relationships with customers. Environmental s bathKudler all right Foods performed an fig up analysis s abide to determine the associations refreshful strategies. To conduct the analysis, the company conducts SWOT analysis to establish its current conditions. StrengthsKudler charming Foods is small, customer-oriented organization in which the owner, Kathy Kudler, interacts with staff members weekly. The company gapings take on a wide variety of quality fruits, vegetables, wines, and cheeses. In addition, the stores are in excellent scotch regions where customers can afford the prices. Further more(prenominal), the firm has repeat customers, which demonstrates that the company has an impeccable personality and high customer satisfaction (Apollo Group, Inc., 2007).WeaknessesKudler Fine Foods sells close toly perishable foods, and intimately 12% of the stock is removed from the shelves to ensure freshness, which also results in gro und little and lost profits. In addition, the stores have high payrolls associated with exceptionalty positions and small anxiety that makes managing, ordering, and maintaining blood line difficult for the owner. Kathy is managing all the stores, ordering supplies, and maintaining inventory. A management regulate in which Kathy performs all major activities limits winth and represents a risk because if she became ill, she would non have a replacement, which would have a negative impact on store operations (Apollo Group, Inc., 2007).Kudlers Fine Foods External AnalysisOpportunitiesKudler Fine Foods has the opportunity to fulfill other market needs by including redundant gastronome products to their offer such as coffee and tea, a search keep downer, a deli counter, among others. This horizontal intricacy of the business will describe new customers and increase the share of wallet from current customers.Other expansion opportunities for Kudler Fine Foods include the consoli dation and offshoot of the catering business and the launching to the e-market by offering delivery of epicurean products and ordering of catering go. The net in watch is normally a lower monetary value channel given that fewer employees are needed to maintain it and to drive an increase of the customer base.Finally, the most obvious growth opportunity for the company relies in geographic expansion. possibility more stores in the California discipline 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, comparable other businesses, faces threats relative to the economic conditions of the region in which it operates. The market for gourmet products is very sensitive to economic downturn because consumption of such items usually responds to desire rather than necessity. Current unstable weather conditions and natural disasters (like earthquakes) out-of-pocket to globa l warming also pose a threat of change magnitude costs of produce if it affects local anaesthetic producers that supply Kudler Fine Foods.Other threats come from direct and indirect competition. If competitors cull to expand geographically or to fade their product lines to include the products Kudler Fine Foods today provides, this expansion could have a negative impact on the companys bottom line. nearly other threat could be that traditional supermarkets are expanding their offers to include organic products and well-nigh gourmet items. Traditional supermarkets usually have high bargaining power, which allows them to offer lower prices, and they have the advantage of coering a wide wildness of needs in a same location. (Apollo Group, Inc., 2007).Review of the individual strategies from calendar week Four and a recommendation for the best dodge for Kudler see strategies beneath (in pink) and choose best strategyStrategic Plan Kudlers strategical plan involves increasin g ability of their management and employees. Firms that implement the strategy of available 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 proceeding (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 functional 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 centerings to retain their customers, as customers are the most important to their bottom-line. unvoiced Growth StrategyKudler Fine Foods should consider the concentrated growth strategy. correspond to Pearce and Robinson (2009), the concentrated growth strategy is the least risky grand strategy. roaring 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 dish out KFF to increase the number of repeat customers and their engagement rates (Pearce & Robinson, 2009). However, this strategy does entail some risks. These risks include changes in the economy, practical slow market growth, vulnerability to high opportunity cost relate to alternative strategic approaches, and the probability of financial losses by KFF relate to poor forecasts (Pearce & Robinson, 2009). Product disclosement focused on new products Kudler could developProduct development is the process of creating a new product to be sold by a business or enterprise to its customers. A product can be any item from a book, melodious composition, or information service. The task of developing o utstanding new products is difficult, time-consuming, and costly. However, quality products are not simply designed, 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 coffee products to the companys selection would put them another step ahead of the competition. request for both coffee and coffee drinks is so high that recent surveys cast that coffeehouses alone sold $8.3 billion in coffees and coffee drinks and that amount is expect to reach almost $19 billion by 2011, according the force Coffee 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 Foo ds could market is gourmet coffee, flavored coffee, and decaf coffee. preeminence 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 specific product attribute (Pearce & Robinson, 2009, p. 204). Differentiation assists in pissing loyalty with customers as well as it enables an organization to charge a premium for its products and serve (Pearce & Robinson, 2009). Differentiation helps separate a brand from others and build a personality 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 seek for specific attributes.Kudler may couple this strategy with customer intimacy, which tailoring products and services that fit customers (Pearce & Robi nson, 2009). Customer intimacy assumes certain degree of knowledge roughly customers and the flexibility to make necessary adjustments. This long-term approach is designed to play 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 life sentence 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 military posture 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 larger base of customers by selling its products through the Internet. Online sales have presented two digit growth rates in the past 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 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 point hours her free cheese samples and wine meetings. If the cheese, dairy, and wine areas are in the strawman of the store, Kathy should consider placing it near the back. The goal is to compel consumers to walk around the KFF store to see their products 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. Costs will be minimal because advertising in local newspapers, radio, and television will be done locally. Implementation Plan Create a WBS and Gantt graph 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 cipher for the implementation plan and forecasted financials for Kudler. I did this last week, but I was not sure if I did this correctly. See excel spreadsheet Work Breakdown mental synthesis (WBS)Incorporating a work breakdown structure will assist KFF in their efforts to assign responsibilities and manage time. Currently Kathy is responsible for each department and which takes apart 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 decisive for a gourmet grocery store. Forecasting sales will help reduce chances of ordering too much food. A customer count can be incorporated by issuing savings separate so customers can attach to his or her key ring. This device not only tracks what customers are purchasing 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 thither are six sections to KFF, there should be at least 3 employees in each department. Employees should strategically be placed 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 important to earning sales. Kathy has to study the local businesses, schools, stores, and understand who the competitors are. This understanding will assist in becoming more profitable and peaking customers interests. in one case Kathy is aware(p) 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 i nterested, he or she has a higher chance of coming into the store and spending. A guest check add up will assist with ordering inventory because the average calculates the number of customers dissever by the money spent in the store.