Executive summary
In an effort to ensure that business plans of different organizations keep yielding the desired results and that the profits generated keep soaring high, there is need to look at the already existing plans and make the necessary reviews every now and then. In relation to this and the already set plan of Kudler Fine Foods stores, this particular paper seeks to update the plan with the interest of increasing the profit making capacity of the company.
The first consideration that shall be made in relation with the target shall be the company’s background which shall set the benchmark on which to strategize and gain competitive advantage. This describes where the organization moves from and thus gives the bearing on its destination.
The second consideration shall be the mission of the organization, its vision and the values governing it. When this is linked with the prevailing conditions of the environment of the business and the market situation, then a plan can be drawn that will enable the stores attain the set vision.
In this paper there are also the steps involved in implementation of the strategic plan through a Gantt chart and the finances allocated. The risks associated with the implementation shall be analyzed giving the applicable solutions. Together with this, the risks are also analyzed in this paper so that there is a clear cut plan of managing them.
Company background
The founder is Kathy Kudler who was then the marketing Vice-president at a contractor company. It started in cooking of gourmet in La Jolla. The first operational store opened its doors in 1998 before a second one was started in Del Mar in the year 2000. At the moment, there are three stores the third one being at Encinitas (started operation in 2003).
The products being offered at the stores are categorized into packaged foods, fresh products, condiments, meat and pastries and fresh bakery. With the various changes in technology, Kudler has been affected in terms of standing the market conditions and thus necessitating changes in the ways of operation with the view to set up a satisfied customer base.
The challenge comes in with the balancing of the technological changes and the originality of the company. Originality here refers to the fact that Kudler Fine Foods has been known for quality and freshness of goods.
Company mission, vision, and value statements
The mission statement of the organization forms the basis on which the organization operates even to date. Just to paraphrase it, the mission mentions that the company (Kudler Fine Foods) targets to provide the finest in wines and foodstuffs along with all related foods. All of this is provided in an environment that is unrivalled courtesy of the experience of its staff and their selection which allows the customers to have a delightful shopping experience.
The most notable thing about the mission statement, that is, that of Kudler is that it puts in mind first of all the conditions surrounding the customers and the experience of shopping with them. The mission statement links up with the vision of the company to build a sustainable and reliable way of steering the achievements of the company to a wholesome completion.
The vision is to be a premiere store providing gourmet grocery operating purely on quality hence meeting customer’s needs with focus on those seeking for cheese, fine meat among other products. This simply means that Kudler Fine Foods has set the target on meeting the demands of its customers much more than any other thing in its operation. This is very much in line with the mission statement of the organization as analyzed earlier.
The mission together with the vision discussed above comes in handy in setting the values which guide Kudler as this forms the basis on which the organization operates in its day to day running. Values refer mainly to the beliefs and acts that guide the outcome of the beliefs. Kudler Fine Foods values looks at the ethics in the work environment for the purposes of attaining its mission.
The values lay emphasize on fair opportunities to employees, satisfactory customer satisfaction and sufficient provision of tools to the employees for the purposes of motivation and incorporation of the aspect of excellence. The employees’ wages salaries are reasonable and are accompanied by benefits. The ingredients used are chosen on the basis or their fineness and freshness. Flour is unbleached, no preservatives are used unless it is extremely necessary and as well products are donated to the homeless as is practicable.
Environmental scan
While there is need to concentrate on the internal conditions of an organization, there is even a greater need to look at the external conditions of the organization. The evaluation of the conditions around the organization is referred to as a scan of the environment. Kudler Fine Foods is not exempted on this and therefore there is need to put to use the available resources in surveying the environment for ideas in terms of customer preferences and competition patterns.
The first and perhaps most obvious thing about the environment is that customers prefer originality, quality and efficiency. To be able to stand strong within the market conditions, Kudler needs to avoid drifting so much from its original products. The only necessity is expansion and addition of the products available from it.
This way, there is bound to be difficulty for the competitors. Secondly, the customers need faster and convenient services and thus Kudler Fine Foods should develop faster means of dealing with the needs of customers.
The entire world population is moving from excess processing which in the essence is addition of excesses of preservative and other chemicals and thus Kudler Fine Foods is greatly favored at this. It is to the advantage of the company that the values that uphold natural food processing and limitation of chemical additions be promoted.
Strategy for the company
Strategies aid a company to have a positive growth which is also in line with the mission, vision and values governing it. Kudler being a company that produces foodstuff and drinks, there is need to have menu items that are creatively selected and still be value sensitive so that the desires of the customers are met. With all this, the customer service should remain admirable and outstanding as the organization works to avail their products to stores nearest to the customers.
Considering the major types of strategies by first looking at low-coast leadership as a strategy, it seeks to keep the prices of the products as low as possible. In the case of Kudler, this entails ensuring that the purchased inputs are as cheap as possible and as well the operation costs are minimal. However, the low prices may affect the general selling of the product as cheap products may appear to be of a lower standard.
A second strategy that could be put to use is called the differentiation strategy that aims at the promotion of uniqueness in products. Should Kudler manage to maintain its unique blend of quality and natural production, there is bound to be a growth in the customer base especially those who appreciate quality.
This translates in development of a firm and loyal customer base within the areas of operation so as to stay in line with the patterns of competition. One good way of developing loyalty among the customers is the through advertising which builds pride and awareness. Another method of applying differentiation strategy is through promotion which just like advertisement builds.
A final yet important strategy could be the speed based strategy in which Kudler should seek to stay in tune with the needs of the customers. This involves integrating it with the changes in technology in order to be relevant at all times. While this strategy is good for relevance, there is the challenge of deviating from the values that govern the company in the name of change.
The strategy becomes extremely necessary when the customers request for some services or commodities. In this case, this could include such courses of action as change in technology, change of product range and implementation of requests of new stores. As can be seen here, the best strategy for Kudler is differentiation strategy as it allows the company to keep its loyal customers and maintain its trademark quality. For the purpose of customer satisfaction some little speed based strategy may be.
Implementation Plan
Figure 1: A work breakdown structure of the strategy implementation
Figure 2: A Gantt chart showing the seven year strategy after 2003
The main objectives of the strategy include trying to put to use the available strengths of Kudler Fine Foods to increase the sales and thus the profit. This plan also seeks to raise satisfaction of customers thus adding to them being loyal. Finally, there is the aim of increasing confidence for the purpose of establishing new customer links by supplying fresh products.
Figure 1 has shown tactics like customer response, advertisements and promotions as functional tactics for the company. The others are free samples and reduced costs. This therefore leads to the main milestone which is the acquisition of a new store. The financial allocation for the various activities is as shown below. The deadline for the milestone is shown in figure2.
The success of this particular layout of strategies relies on a number of factors. The first of which is the allocation of finances and acquisition of other resources like labor. The second important factor is that of the operating environment and thus the need to stay in line with the vision to beat all the conditions. There is also the demand of conducting awareness to the workforce for it to go well with the plan.
Table: Kudler financials and budget between 2003 and 2011
Risk management plan
Uncertainty surrounding an event should it occur is the risk. Kudler Fine Foods lives with some risks all around its operation. The first such risk is that of lose of goods since they are perishable. The second risk is that of failure of a store should it fail to gather enough customers for itself especially in new locations or should competition intensify.
There is also the risk of economic down turn in Southern. Should weather conditions transform, they could result in great lowering of the production level of the goods since they are farm products. In the event of such calamities such as death of the founder or an earthquake, the effects would be severe and resulting in complete destabilization of the business.
With all these risks the contingency plans come in handy in avoiding complete collapse of the business should there be any occurrences. To deal with the issue of goods being perishable, there is need to order goods only according to the demand patterns at various times. The second risk can be handled by establishing a customer base before introduction of a store.
Moving to newer areas deals with the issue of economic downturn in one area as there is compensation by the other areas. Weather and natural calamities are hard to handle but they also affect competitors within the locality and are thus common making their effect neutral.
In relation to the analysis above, to manage the risks, first of all there is a need to accept that the risks are there. Change of plans could then be employed in maintaining the profitability of the organization. For example selling of a store that appears to constantly dwindle and change of prices to beat competitors. Reduction of the impacts of the risk is very important for example through regulation of the incoming and outgoing goods. Finally, should there be a third party that could better manage the risk, they could be introduced.
Conclusion
In conclusion, Kudler Fine Foods has a greater advantage as most people prefer natural and fresh products. With decent management of the risks and the correct strategy, there is bound to be enough growth in profit.