Kudler Foods Overview of Management

Overview of Management

Technology is a staple within society contributing to the effectiveness in which businesses operate. Email, the internet, computers, and IT all play an important role in profitability by improving productivity and competition. Kudler Fine Foods is a company with three stores and a central management group who utilizes technology to expand and improve their business.

Kudler Fine Foods was established by Kathy Kudler who wanted to provide a one-stop shopping experiencing providing fresh foods and supplies for gourmet cooking. The administration portion of management consists of Kathy Kudler as president, Harvey Stephens as the Director of Finance and Accounting, Yvonne Reynolds as Director of Store Operations, and Brenda Wagner as Director of Administration and Human Resources (HR). In addition to the administration sector, there are three store managers for each of the stores.

Each of the three major departments has specific duties. The Finance and Accounting department manages the balance sheet, profit and loss statement, budget, accounts receivable aging reports, and inventory. Additionally, the daily and monthly duties of the Finance department are to perform daily bank reconciliations by viewing online statements and resolving discrepancies within 24 hours. The Finance director is charged with developing and implementing goals, policies, and procedures relating to financial management and accounting. Moreover, the director maintains the relationship between Kudler’s and lending institutions, coordinates external audits, and develops accounting procedures to ensure the accuracy of financial reports. One employee is charged with reconciliation duties and obtains management approval and review when the discrepancies are resolved. Moreover, wire transfers are prepared by the accounting clerk and approved by Harvey Stephens, then submitted to general accounting.

Similar to the Finance department, Human Resources manages payroll and benefits for employees. Recruitment and training are also duties within the HR department. The employee selection process is rigorous, with the desire to find quality employees. Recruitment methods include newspapers, the internet, and employee referrals. The training period of new employees is extensive, ensuring they are knowledgeable with products offered and how to best serve customers. The director of HR studies legislation and contracts to assess the industry’s trends, analyzes wages and salary reports, projects employment needs, and develops recruitment plans.

The Operations department manages the operations of three stores. They are responsible for safety, maintenance, and compliance with laws. The director develops budgets, staffing levels, product mix, and pricing structures. Additionally, the director maintains contracts with vendors and reviews store performances. Inventory management, accounting, purchases, and merchandise selection is managed within the Operations department. The Operations department consists of a purchasing manager and an inventory manager. The purchasing manager directs the activities for purchasing supplies, analyzes the market, prepares purchase orders, and reviews contracts. The inventory manager establishes the stores’ inventory levels and anticipates inventory needs.

The management team within Kudler directs the success of the company. Gomez-Mejia and Balkin (2002) explain the following:

The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions…successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment, such as those brought about by technology, legislation, and competitors.

Kudler Fine Foods and its management utilize technology to improve productivity. Online banking and daily bank reconciliation with Kudler’s respective lenders keeps records accurate, storing an infinite amount of data.

Payroll is done on a biometric time system which tracks clock in time of employees, 401(K), medical, taxes, and benefits. The cash registers record each transaction; data includes sales trends, inventory, an gross profit. Gomez-Mejia and Balkin (2002) comments on the importance of data:

For information to be useful in decision making, it must be of high quality, timely, relevant, and comprehensive. The quality of information is determined by its accuracy and reliability… Decisions about purchasing commodities…that are based on market conditions may cost the firm if out-of-date information is received. Relevant information is also essential… Comprehensive information