Kudler’s fine foods company is an organization which is doing pretty well in the food business. According to their financial statements, the company has competent staff in management as every transaction is accounted for properly. In fact, a lot of information about the company’s operations can be obtained from the financial statements.
This means that decision makers can be able to make wise decisions regarding their company depending on their financial performance (Schlosser, 2012). Kudler’s fine foods company has been able to minimize costs hence maximizing profits. For example, the amount of bad debts is kept at minimal as compared to the total revenue generated by the business.
Any successful organization struggles to keep down costs in order to maximize its profits. It is evident from the financial statements that Kudler’s fine foods company increases its sales each year. This means that the revenue increases with sales increase, which may be as a result of increased number of customers for the food store.
Yes, the information about advertising expenses tells a lot about Kudler’s fine foods company. The company spends a lot of cash in advertising its products. Advertising is concerned with creating awareness among potential buyers in the market. The continuous increase in revenue generated each year may be as a result of advertising. In fact, the organization is successful in business due to the risk they take in investing in advertisements.
This means that customers need to be made aware of the existence of the organization and products. The amount listed as advertising expenses is evidence that Kudler’s fine foods company is using a lot of resources to market their brand. Advertising gives an organization a competitive advantage over its competitors because customers prefer to try the products which are being advertised.
Kathy Kudler should use the information in these statements when making future decisions for her food business. In fact, financial statements should be used as a stepping stone for any progress in the business. For instance, she should be able to analyze the impact of every cent spent to the cash flow (Plunkett, 2007). This means that Kathy should be able to identify the expenses which are necessary for the organization depending on the outputs associated with them.
For example, if the amount spent in maintenance of vehicles does not reflect the amount of income generated by activities involving the vehicles, she should consider using other means of transport for the company. Such decisions can only be made after carefully studying the financial statements.
In addition, she should be able to tell which operations need additional or lesser funding in order to better outputs. This is crucial for her organization since it avoids instances where the company funds less profitable operations while neglecting beneficial ones.
Kudler’s fine foods company is financially healthy since it can pay all its debts and make sizeable profits. Compared to other companies in the industry, Kudler’s fine foods company is leading its competitors in the industry as it has the best profit margin. This means that its management is doing quite a reasonable job in ensuring that they remain more profitable than their competitors (Plunkett, 2007).
In comparison, companies in the food industry use a lot of money in advertisements in order to make customers know about their existence and products. In addition, almost all companies in the industry have the same operating expenses as their products and services are similar.
Therefore, profitability of the organization depends with company strategies and the leadership fostered by the management. Most companies find it difficult to cope with the competition due to poor management hence leading to their closure. Kudler’s fine foods company has been able to survive in the market for several years hence proving its financial health and quality management.
Kudler’s fine foods company has a lot of technological advantages over its competitors such as Ralphs and Vons. These are supermarkets where people used to purchase foods in the past. Kudler’s fine foods company automated its inventory systems hence improving its service delivery. This means that time for stock taking has been eliminated as inventory management occurs automatically. Exit of any food from the premises is recorded by computers hence indicating a reduction in inventory.
The system is set to alert the procurement officers when re-ordering is essential. Development of a company’s website is a technological development Kudler has over Ralphs and Vons. Kudler advertises the company on the website giving customers chances to browse through various products. Customer feedbacks can be received through the website hence helping Kathy Kudler to improve the quality of her products and services in response to customer requirements.
Globalization affects Kudler’s fine foods company in a great way. For example, there might be international events in the cities where the stores are located. As foreigners stop at the premises to purchase their favorite foods, the company may run out of stock due to the sudden increase in demand (Schlosser, 2012). This affects the strategies set by the company in a great way. Secondly, people from different cultures have different tastes hence making it hard for these companies to plan their inventory.
References
Plunkett, J. W. (2007). Plunkett’s Food Industry Almanac 2007 (E-Book): Food Industry Market Research, Statistics, Trends and Leading Companies. New York: Plunkett Research, Ltd.
Schlosser, E. (2012). Fast Food Nation. Michigan: Houghton Mifflin Harcourt.