Mba 502 - Managing the Business Enterprise Week 6

Running Head: STRATEGY ASSIGNMENT

MBA 502- Managing the Business Enterprise

Kudler Fine Foods is a gourmet food store that operates in three locations and has plans for further expansion. Kathy Kudler, who opened the first location in 1998, realized the need for a gourmet food store and combined convenience and excellent service, with that combination Kudler Fine Foods was born. Kudler Fine Foods offers fresh quality breads, meat, seafood, and produce, cheese, dairy and wine. Kudler is interested in expanding their services and offering services such as in store parties as well as frequent shopper programs and a wonderful catering service. All of the planned additions will be an asset to Kudler Fine Foods loyal customers. “Kudler Fine Foods has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer cycle as a means to increasing the loyalty and profitability of its consumers”,(Kudler Intranet).

Recent changes in technology have opened doors for Kudler Fine Foods. By utilizing new technological advances Kudler is increasing the chances that this company will be around to stay. Recently Kudler created an online web site to advertise their products and inform their customers of store hours and locations as well as any new events that are taking place. By implementing online technology Kudler has created the opportunity for all interested customers to browse around and receive information without the hassle of going to the store. “The Web technology, with its various capabilities-like information dissemination, interactive communication, multi-media sport, and seamless information sharing presents significant business opportunities.”(Cebabroto, p.1). The use the Internet helps support activities such as marketing, customer support and marketing research. Kudler is on the right track with the Company web page, and as the business and management grow so will the site which at some point could possibly offer online ordering of organic products.

Technology has opened consumer’s eyes about the importance of living a healthy life and organic products have been proven to be a healthy choice. Kudler’s organic food is preservative free, which is beneficial to consumer’s health. Modern technology has brought the importance of heath to an all time high. Due to this new awareness business opportunities for organic food companies are in abundance. Thanks to the new heath conscience population Kudler has opportunities that the company would not have had five years ago.

Technology helps create business opportunities; however, most successful businesses are built on a strong strategy. “The purpose of identifying competitive forces is to enable an organization to develop a strategy aimed at establishing a profitable and sustainable position against these five forces. To do so, a company needs to develop a strategy of performing activities differently from its competitors”, (Potter, Rainer & Turban, p.24 ). Porter has identified eight important strategies, companies can fall into any of these categories depending on their goals, and however, most companies will not fall into only one category. The eight categories are; cost leadership strategy, differentiation strategy, focus strategy, growth strategy, alliances strategy, innovation strategy, internal efficiency strategy and customer oriented strategy.

The four strategies that best describe Kulder Fine Foods and their vision as a company are; differentiation strategy, focus strategy, growth strategy and customer oriented strategy. By offering customers a product that is unique Kudler Fine Foods utilizes the differentiation strategy. Kudler Fine Foods prides their self in selling high quality gourmet foods, which is not a strategy of all grocery stores. By making quality more important than quantity they have strategically placed the company in a position to be regarded as unique. Focus strategy goes hand in hand with differentiation strategy because it is the actual achievement of differentiation strategy. An example of focus strategy would be the use of Kudler Fine Foods frequent shopper program. By identifying frequent shoppers Kudler can offer incentives and focus on the customers that are loyal to the company and offer them rewards in return.

Kudler Fine Foods is utilizing their growth strategy by using electronic commerce to acquire new customers and increase the convenience and store information for previous customers. Growth strategy is described as increasing profitability and Kudler Fine Foods will do just that by implementing the intranet site to advertise their business. Not