Catering Service at Kudler Fine Foods

The growth strategy of Kudler Fine Foods embraces the need to increase profitability by contracting with local growers of organic produce. Kudler plans on offering new high-margin services and provide a more efficient operation. However, operational changes are necessary in order to reduce costs. Thus, Kudler’s strategic initiative can become detrimental to the organization if many options are not discussed and thoroughly well-planned.

Department shut down and refurbishing checklist:

1. Which departments will be selected to be shut down?

2. What is the criterion for shutting down a department?

3. Will there be a definite timeline of refurbishing given?

4. What potential delays may there be during the 3 months of refurbishing?

5. How many employees will be laid off?

6. Will there be any guarantees that the employees will get their position back or what the application process will be?

7. Will some employees be able to work in another department if the workload has increased?

8. If another department needs more employees, how will the laid off employees from the closed departments be selected?

9. Once the catering department is complete, how many positions will it need filled?

10. Will Kudler know how many positions will be cut as a result of this refurbishing? If so, how will they handle this cut? Who is susceptible to being permanently terminated?

11. By what means will the catering department positions be filled? Will there be a ranking system or any seniority?

12. Is it Kudler’s responsibility to provide job training or assist the employees in each department to find employment elsewhere if they do not have a guaranteed position at Kudler?

13. When and where will the affected employees be informed?

14. Will the laid off employees be compensated during their time off?

15. What public image will be portrayed as a result of Kudler refurbishing?

16. When, who and how will the media be informed?

17. What potential legal ramifications will Kudler face?

18. Is Kudler being compliant with the California Labor Codes in addition to Federal legislation?

19. What obligations will Kudler have to its suppliers during this refurbishing period?

20. How will the consumers be affected by the refurbishing and are there ways to make this transition as smooth as possible?

21. Are Anne Shousha’s qualifications suitable to handle this situation? If not, how much additional money will be allocated for legal advice?

22. Could potential lawsuits/strikes/disruption occur as a result of Kudler closing down departments for an indefinite amount of time?

23. If a strike occurs, how would Kudler's businesses be affected?

B. The local organic produce growers want contracts with Kudler so they can have some certainty regarding where their produce is sold. Should Kudler enter into contracts with these growers.

Contracts with local organic produce growers checklist:

1. The Food Marketing Institute (FMI) guidelines for the appropriate handling of organic products outlines measures that need to be taken to “prevent commingling and to prevent organic products from contacting prohibited substances” (The USDA National Organic Program Requirements. Pg 2. 2002). How will Kudler Fine Foods maintain the integrity of the organic food products once the produce is out of grower’s control?

2. What will Kudler do to monitor the implementation of USDA and FMI guidelines?

3. What legal recourse will growers have in the event that USDA and FMI guidelines are not followed?

4. Will the contracts also protect Kudler from organic growers who do not strictly adhere to USDA and FMI guidelines?

5. Will contracts with growers inhibit or restrict Kudler in any way when to comes to pricing or selling their organic products?

6. Will producers want to exercise control over advertising and marketing of organic produce sold by Kudler?

7. What