Strategy: Kudler Fine Foods

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Strategy: Kudler Fine Foods
Lisa Niebruegge
University of Phoenix

Strategy: Kudler Fine Foods
Kudler Fine Foods is an up-scale gourmet food shop that was founded in 1998 by Kathy Kudler and currently offers gourmet foods, beverages and products designed for gourmet cooking at the three stores locations in La Jolla, Del Mar and Encinitas, CA (University of Phoenix, 2007). The company has experienced significant growth and is now focused on expanding the services, improving the efficiency of its operations and increasing the consumer purchase cycle as a means to increasing the loyalty and profitability of its consumers. Kudler is interested in adding catering to its service offerings and perhaps opening a fourth store. The success of the catering service, as well as opening a fourth store, is dependent on the creation of appropriate and effective marketing strategies and company-wide changes in order to introduce new products and services. The market strategies are developed based on analysis of current internal and external forces affecting the company. Proper analysis and implementation will provide a successful strategy resulting in a sustainable competitive advantage (Gomez-Mejia & Balkin, 2002). “Strategic management involves the major decisions, business choices, and actions that chart the course of the entire enterprise. It consists of the internal and external environment of the firm, definition of the firm’s mission, and formulation and implementation of strategies to provide a competitive advantage” (Gomez-Mejia & Balkin, 2002). Kudler Fine Foods has grown their business and increased sales through the use of technology. Kudler has incorporated several changes within the company to provide a well-run organization that is seeking to be a long running company in the industry of gourmet food distribution. This paper will identify how changes in technology have created business opportunities for Kudler; the generic strategy Kudler is pursuing and how Kudler management can continuously scan the fine foods grocery industry for ideas that will allow it to update its strategy. Use of Technology

Information technologies (IT) can change how organizations do business. IT creates applications that provide direct strategic advantages to organizations. Information technology supports strategic changes such as re-engineering which allows well-organized transference by providing high-speed communication lines, simplifies, and shortens product design time with computer-aided engineering tools (Turban, Rainer, & Potter, 2003). IT provides for technological advances or acts as an enabler of modernization, which incorporates the firm's goods or services. IT provides competitive intelligence by collecting and analyzing information about innovations, markets, competitors, and environmental changes. An example of competitive intelligence is if a company knows something important before its competitors, or if it can make the correct interpretation of information before its competitors, then it can introduce changes first and benefit from them (Turban, Rainer, & Potter, 2003). “Strategic information systems (SIS) are systems that support or shape organizations competitive strategy.” (Turban, Rainer, & Potter, 2003) Outward focus strategic systems aim at direct competition in the industry by providing new services to customers and/or suppliers with the specific objective of beating competitors. Inward focus strategic systems have surfaced since the late 1980s which focus on enhancing the competitive position of the company by increasing employees' productivity, improving teamwork, and enhancing communication, (Turban, Rainer, & Potter, 2003). Kudler will need to expand its technology to improve the way it does business. The new technology will upgrade the existing system to keep track of ordering both from suppliers and customers. The technology can offer the...
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