Kudler Fine Foods is a gourmet grocery store chain located in the San Diego California area. The vision of Kudler Fine Foods is to become the premiere gourmet grocery store for shoppers who are interested in purchasing the finest meats, produce, cheese and wines (Kudler 2003). After opening its first store in La Jolla, California in 1998, Kudler Fine Foods (KFF) has expanded their business to Del Mar and Encinitas, California. Future growth plans for KFF include expansion to other areas in Southern California. KFF is specifically interested in Carlsbad California for its next location due to its large population base and relative proximity to the Del Mar location. Currently the Del Mar store is underperforming compared to its financial targets. KFF believes this is due to the small population in the Del Mar area. KFF feels they will be able to serve the existing Del Mar clientele from a Carlsbad location given the two locations would only be a couple freeway exits away from each other (Kudler 2003). Additionally, KFF’s future growth plans would be to expand to San Francisco in Northern California. Ultimately KFF would like to grow into other high income areas across the United States. The following development of the problem statement comes from completing steps one through three of the problem solving model (Problem Solving, 2008).
As the KFF organization continues to grow the management structure has remained the same. Kathy is the primary operations manager for the entire organization. While she has hired a store manager for each location, she still oversees many of the purchasing functions along with inventory tracking for all three store locations. The risk of having such a small management team is considered a weakness in KFF’s 2003 strategic plan (Kudler 2003). If Kathy were to take any extended time off or become ill no one is cross trained to reorder specific products or deal with major business... [continues]
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