There is some possibility that mandates for maintaining and/or establishing operations in certain regions might be implemented to ensure adequate food distribution to all of Italy as a means of addressing current trends and concerns, such a move is considered highly unlikely (Datamonitor 2010; Aruvian 2010). It is also unclear whether such a move by the Italian governement would be damaging or even necessarily applicable to Kudler Fine Foods unless it expanded its product offerings to wider and less expensive grocery offerings. Little else in the legal environment of this market has changes (Alvin 2010). There are also legal entities and agencies in the European Union that influence and affect the Italian retail grocery market, and general European economic cooperation policies and tendencies also present something of a barrier to entry from an American competitor such as Kudler Fine Foods (Alvin 2010; Aruvian 2010). Organizational decision-making must account for the desire for increased European and Italian self-reliance and competitiveness, while at the same time taking advantage of the relatively few direct and explicit legal barriers to entry and continued profitable competition in the Italian retail grocery industry by American firms (Aruvian 2010). The risk of increased regulation or other legal constraints that mandate service or otherwise limit profitability are not seen to be especially large or threatening, and what risk factors do exist are far outweighed by the potential gains and profits for Kudler Fine Foods (Datamonitor 2010; Alvin 2010).

Economic, Technologic, and Social Factors

Current shocks to the European financial system and the Pan-European currency greatly cheapens market entry in the current era, and Kudler Fine Foods -- as well as any other American organization -- would be well advised to move quickly into the Italian market if such a move is planed for the near future (Datamonitor 2010). Technological innovations that could assist the organization include increased networking and global communications technologies as well as computerized ordering and stock advisory systems. At the customer level, a purposeful lack of technological growth will increase utilization of Kudler staff and thus emphasize branding.

Given the rich...

The skills necessary to achieve the required diversity include a mutual respect for cultural practices and beliefs as well as the ability to engage passionately yet rationally in conversations and decision-making with multicultural partners. The costs necessary to develop these kills are negligible as they are predominately personality traits that can be developed through training, but that more often are the result of direct life experience and general perspective; hiring and cultivating the right individuals for such tasks and promulgating the culture that these individuals bring with them will likely produce all of the necessary traits for the company's success in its Italian endeavor.
Conclusion

To move from a local gourmet foods supplier to an international grocery retail chain in the span of just over a decade might perhaps seem overly ambitious. For Kudler Fine Foods, however, this move makes sense and could be enormously profitably to all company shareholders. Though the Italian retail grocery market has suffered some significant setbacks recently, these can actually be used to the company's advantage as it enters this unstable market as a niche provider of quality goods. It is hoped that the above analysis will assist in Kudler's decision making process.

References

Alvin, E. (2010). Italy may run out of grocery stores. Accessed 5 December 2010. http://ffog.net/italy-may-run-out-of-grocery-stores-in-2016-20105742.html

Aruvian, R. (2010). Food retail industry in Italy. Accessed 5 December 2010. http://www.reportlinker.com/p0199296/Food-Retail-Industry-in-Italy-PEST-Framework-Analysis.html

Datamonitor. (2010). Food and Grocery Sales via Key Retail Formats in Italy to 2013. http://www.just-drinks.com/market-research/food-and-grocery-sales-via-key-retail-formats-in-italy-to-2013_id91649.aspx

Kwik, H. (2009). Channel strategy. http://responsiblemarketing.com/blog/2009/10/27/channel-strategy-new-product-marketin