Strategies for Kudler Fine Foods

Kudler Fine Foods has developed into a business with three locations, offering a wide variety of fine foods including wine and cheese, locally organically grown produce and in store cooking demonstrations extending to home parties and their most recent initiative to establish a catering business. During this time there have been many things to consider, the legal aspects of managing the business, to the current strategy and what tactics will need to be developed in order to assess how the changing technology has created business opportunities for Kudler’s current ventures. This paper will identify the response strategy that Kudler is pursuing thus far, and present some tactics that could be implemented in the future. Lastly, some thoughts will be shared on how Kudler can continuously scan the fine foods industry for ideas that will allow it to update its strategy as needed.

Changes in technology have provided Kudler with many opportunities to expand, and enhance its current operations. Currently Kudler’s Internet and Intranet site both provide invaluable information and have helped the company to grow, through the use of their Intranet they have developed a Customer Table that provides demographic information, an Inventory Table that helps manage product inventory for their stores by itemizing ingredients necessary for products to ensure that the store is prepared. They also have developed a Retail Enterprise Management System. Point of Service Procedures also captures all report s of retail sales in detail and each cash register transmits information directly to the General Ledger, Electronic Payment Clearing House and Purchasing Function. As well, merchandise inventory is kept up to date through this system and reports of net profits per sale daily are calculated. These advances could not have taken place without the advancement of technology. Advancing technology will enhance Kudler’s competitive intelligence and their ability to continue to drive business performance by increasing their market knowledge and raising the quality of strategic planning with an ability to modify when needed (Turban 2003. p.610). The technology that Kudler has in place currently, has allowed them to assess where they have been most successful in the selling of their products and establishing growth in that area. Technology also allows Kudler to use benchmarking to compare and contrast its services against others in the industry and modify its current tactics that fall in line with its strategy.

Strategic management involves the major decisions, business choices and actions that guide the activities and new initiatives of Kudler. In order to manage effectively, analysis of both internal and external environment must be conducted, from defining Kudlers mission, to formulating and implementing strategies that provide a competitive advantage. There are many ways to do this, including, cost leadership, differentiation, focus, company growth, alliances, innovation, internal efficiency and customer-oriented strategies (Gomez-Mejia. P.174). Kathy Kudler is responsible for strategic management of the company because these efforts steer the organization in a particular direction and mistakes can be very costly, so can reversing decisions that are made. The most successful strategies evolve from open minded flexible managers that are able to adjust their strategic plan based on experience and the ability to adapt to changing conditions. Successful strategies provide Kudler with sustainable competitive advantage. This happens when their competitors are unable to duplicate Kudlers products or services because it is too difficult, or costly to recreate. Kudler will need to ensure that their competitors are continuously monitored so that they can make adjustments to their strategy in order to stay ahead (Gomez-Mejia. 2002).

A well known framework has been developed by Michael Porter which focuses on five forces within an industry that can make a considerable difference to competitive conditions. The threat of new entrants, the threat of substitutes, suppliers, customers and the intensity of rivalry among competitors are among those to be considered (Gomez 2002 p. 160). Although used in many business schools, the 5 Forces Model is very misunderstood, according to Elfren Cruz (2006) who reviewed Porters book entitled “Competitive Strategy: Techniques for Analyzing Industries and Competitors”. In his book Porter argues that competitive strategy is “about being different.” Kudler does just this, “differentiating (them)selves in the eyes of the customer, (by) adding value through a mix of activities different from those used by competitors” (Cruz 2006).

Porters’ generic strategies model is often criticized because companies are actually forced to compete on two fronts – being differentiated while also cost effective. These