Marketing is a key component of a successful business and KFF should consider different methods of involving the community. For example, television advertising, Internet, radio stations and more promotions are viable. Secondly, employees must be sufficient time for KFF to obtain benefits. Many organizations have begun to provide additional part-time employees package was found, but 30 hours per week. (Shim & Siegel 2010)
In addition, Kudler is to buy stock, catering, and any major issues such as responsible business, so if she fell ill, no one can proceed on the basis of business operations. Most organizations have managers that work with the president so that if necessary, they are available. Kudler is important to hire more administrative staff to assist some of the duties. Finally, the payment offered to employees by KFF is very low as compared to other organizations in the same location.
Recommended Strategy
From the above environmental scan, it can be recommended that Kudler Fine Foods should expand its store location to Carlsbad area and Canada. In order to implement this expansion strategy, KFF should follow a combination of strategies. In this portfolio of strategies, KFF should merge certain strategies in order to gain market share in the new locations. This portfolio includes product differentiation, market segmentation, and niche market and cost differentiation strategies.
KFF should assess all the factors in the external as well as internal environment of the new locations in order to take maximum advantage in gaining market share. The cost differentiation strategy will help KFF to attract more customers as KFF will be giving quality products at low prices. The product differentiation strategy will provide advantage to KFF as KFF will be launching new products with excellent quality according to the demand of the customers in Canada and Carlsbad. KFF should also consider the regulatory environment of Canada as it is different from that of U.S.. Kudler Fine Foods should implement the strategies discussed here in order to make the new locations another success for the company.
IMPLEMENTATION PLAN
Kudler Fine Foods is interested to expand its business to the San Diego and Canada, but this may prove difficult, if KFF do not make some changes to its current situation. For example, Kudler Fine Foods is working with a small management staff. They will need to hire someone who is on industry-specific management of the San Francisco location, or they can promote someone within the company who already has the quality of this post which requires human knowledge. Another option for Kudler Fine Foods is to acquire a business which is already a going-concern. Enterprises should be established through the acquisition which will result in reduction of costs from the initial expansion. This can provide a faster increase in profits. (Turban & Potter 2003)
Kudler Fine Foods can better manage their inventory by finding a more economical way to manage the supply of distribution of goods in inventory. Management can study each of their product supply and demand history to determine how much inventory should be required for the production. This will reduce their perishable goods, which will also reduce the cost of these purchases and result in reduction of amount of waste. Purchases in bulk can also reduce the costs. These types of purchase price are usually low. Another way to control their inventory costs is to combine their orders and delivery. By reducing the costs associated with inventory, they will have more money to focus on the expansion projects. (Mejia & Belkin 2002)
Key Success Factors
A key success factor for KFF is to identify the future/potential customers and their respective needs and wants. Before setting-up a store on new location or an online store or catering services, KFF should forecast the expected business growth of the company. The company should have the knowledge about start-up costs, community, employees and most importantly, the competition. KFF should start their catering business from the existing locations so as to minimize the start-up costs. By doing this, Kudler can use many existing contacts and materials for their new catering services. (Wilson & Gilligan 2005)
Forecasted Financials
Because KFF is a fresh product and high-end gourmet cooking items producer, online sales almost have no competition. However, based on the number, KFF should be a good market and may require as part of operating profit: KFF will grow 12% in 2011, reporting sales growth, from 370 million in 2011 to 2012, 420 million U.S. dollars. Importantly, KFF in several venues, including the hard-print cooking magazines, gourmet recipes website and Kudler stores to advertise the existing ground.
Forecasted Income Statement
Sales
$2,001,115
Cost of Goods Sold
1,200,669
Gross Profit
$800,446
Wages & Salaries
$222,000
Advertising
80,000
R&D
30,000
Rent
24,000
$356,000
Net...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now