Kudler Foods Wk 5

One issue I selected to focus on is Kudler Foods small management team. Other than Kathy, no one is able to order, hire or train employees, control finances or other major decisions. Without Kathy doing day to day decision making the company is handicapped. During the first half of the twentieth century, managers viewed work specialization as an unending source of increased productivity (Nickels, McHugh & McHugh, 2008). For the company to take the next step Kathy needs to have other people in the business making decisions and that specialize day to day activity.

The next issue that Kudler Foods has is high payroll. With high operating costs it will be hard to expand and keep all the employees satisfied. The butcher, baker, wine steward and other specialty positions require higher salaries, but also create dissention in the employee ranks. Creating ownership throughout the employee ranks can help the business and you might be able to cut some of the operating costs. Employee ownership, or creating an incentive based sales in the store you can cut salaries but increase ownership and morale at the same time. If you would put each specialty employee on an incentive based pay were if they meet budget they get increase in wage, so if the company does well the employees benefit. Also if the regular employees get some kind of benefit when the store makes plan then they can receive a bonus. Differentiating you from the other companies, making your business one someone wants to work for. By doing this you can create a shared vision on giving the employees empowerment on wanting the stores to succeed. If the store makes plan, I get paid, people do get motivated by results based incentives.

The last issue that Kudler Foods needs to focus on is Diversifying their catering business. If Kudler Foods wants to grow their business without too many costs to the company, they can grow the business through catering. Kathy can use the catering business to market Kudler Food Stores as well as Kudler Foods can help the catering side. For business to prosper Kathy can use her staff to build the catering side of the business and bring in a manager to build this business. Labor cost does not increase proportionally with sales increases; therefore, changes in sales levels will cause the traditional labor cost ratio to fluctuate (Pavesic, Magnant, 2005). From this Kathy can employ this manager as a separate entity, and use incentive based wage, to pay the manager. As the catering business succeeds the manager will benefit, so it will create an empowerment to want to succeed.

The vision Kudler Foods can incorporate to build and develop its opportunity to achieve its organizational goals are. Developing a mid-level management, Kathy can give ownership to each store to make basic business decisions. These individuals can be her specialists