Kulder Strategy Assignment

Introduction

The success of an organization is dependent upon the strategy that the organization has employed. Many have studied the effects of having a defined strategy in an organization and how it relates to the success of the company. In order for companies to keep employee morale high and to remain in competition in the business world, managers and leaders are required to examine the organizational strategy that exists within the company. Kudler has also broadened the spectrum on customer sales to include internet sales, catering services and online ordering. Kudler has evolved through technology to increase sales. Kudler has incorporated several changes within the organization to provide a well run organization that is seeking to be a long running company in the industry of gourmet food distributor. This paper will identify how changes in technology have created business opportunities for Kudler; the generic strategy Kudler is pursuing and how Kudler management can continuously scan the fine foods grocer industry for ideas that will allow it to update its strategy.

Assess How Changes in Technology Have Created Business Opportunities for Kudler

Kudler Fine Foods utilizes technology in several ways to successfully manage its operations. The company has an internet site that allows customers to view the founder’s vision of the perfect gourmet shop, what it is and what that encompasses. The site then allows the customer to explore the various departments and their offerings. Ideally, the internet site should entice the potential customer enough to visit the store and make a purchase.

Through the use of technology, Kudler Fine Foods is also able to track purchase behavior at the individual customer level and provide high value incentives through a partnership with a loyalty points program. By incorporating better information management practices and the implementation of new software systems, Kudler’s management is better equipped to refine its processes and offerings to best serve their valued customers.

Kudler Management would be best served if it benchmarked its use of technology with other specialty grocers and perhaps incorporate some of their innovations. By scanning the external environment by way of the competition’s websites, Kudler can immediately realize what it’s lacking in and offering and make the necessary adjustments to remain competitive in the gourmet food arena.

Justified the Assessment with evidence based on text concepts and peer-reviewed research

Successes and failures of organizations can be attributed to technology implementations. Many organizations such as Ford, Chrysler and Federal Express have enjoyed tremendous time and monetary savings through computer supported systems. On the other hand, FoxMeyer, one of the largest U.S. wholesale drug distribution companies met its demise when an ERP implementation went bad. The point is that information systems and technology affect the entire organizational structure and companies need to take into account their individual processes and how they can integrate them successfully.

Identified the Generic Strategy Kudler is Pursuing

Kudler Fine Foods has experienced significant growth and is now focused on expanding its services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers (University of Phoenix, 2005).

One of the generic strategies Kudler Fine Foods is pursuing is innovation strategy where the concept is to develop new products and services, new features in existing products and services, and new ways to produce and sell them (Turban, Rainer & Potter, 2003).

Kudler is offering parties in the store to show customers how to prepare specialty foods (University of Phoenix, 2005). The draw for the consumer is to be trained by world-renowned chefs, local celebrities, and other food experts, even Kathy Kudler, and to be invited to exclusive, upscale events (University of Phoenix, 2005). The anticipated outcome will be to increase the customer purchase rate of high margin food and beverage items and to get the consumer to make an evening at Kudler Fine Foods as part of their social network (University of Phoenix, 2005). This increased time in the store will increase the overall revenue per visit and increase the frequency of visits to the store (University of Phoenix, 2005). Consumers will also receive multiple entries in high-ticket item contests by bringing a friend to the parties (University of Phoenix, 2005). While the firm’s preference is to have the events in-store, guests can have Kudler cooking classes at their home for a price premium (University of Phoenix, 2005). Programs such as this encourage