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Functional Area Interrelationships- Kudler Foods

By kurtis23 Apr 26, 2014 1924 Words

Functional Area and Interrelationships: Kudler Fine Foods
April 21, 201414

Kudler Fine Foods

Organizations develop strategic plans to compete in the market place; functional areas of the organization and their relationships must be considered to successfully carry out organizational goals. The executive team determines the organizational structure and identifies functional areas that must be in place to compete in the market place. These functional areas include, but are not limited to, finance, marketing, production and human resources. (Thompson, Gamble, Strickland, 2006) The development of strategies to meet the needs of the firm and compete in the market place includes collaborative activities, forward or backward integration into value chains, outsourcing, and offensive and defensive strategies. (Thompson, Gamble, Strickland, 2006) Team C will analyze the organizational structure of Kudler Food Inc. The team will identify and explain the steps of the collaborative process among functional areas, as well as the key stakeholders required to implement the recommendation the team. Kudler Fine Foods is a retail store that specializes in gourmet foods. The organization has three stores located in San Diego. The organization is small with a single owner and therefore employs an entrepreneurial profit model. Functional areas include Sales and Marketing, Human Resources, finance and administration. A Hierarchal management system is in place. The primary goal of an organization is profit. Achieving the goal requires an action plan to facilitate the mission as established by the organization. “Kudler Fine Food's mission is to provide our customers the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment" (Apollo Group, 2007). The mission of the organization is a guideline; specific goals are necessary to fulfill the mission. These goals should be measurable, obtainable, and have a timeline associated with them (Thompson, Gamble, & Strickland, 2006). The value statement defines the ethical internal and environmental approaches or guiding principles. Kudler Fine Food has established these principles internally and externally through corporate responsibility and internally regarding customer satisfaction. Quality product and responsive to customers are benchmarks for the specialty chain. Organizational Structure and Key Positions

The Kudler Fine Foods has a functional structure to provide the excellent service and quality foods in each department. Functional structure allows Kudler to group the Bakery, Meat, Produce, and other department separately. This allows the employees to have key positions in each department. These key positions guide the employees to become experts within their departments, creating a department that supports itself (Writing, 2014). In addition, this allows each employee the ability to provide his or her knowledge to other employees within the department through collaboration. This collaboration can help train new employees while staying consistent with quality services. Another reason for this structure is to build strong employees in an environment where they can grow into key positions. Kudler Fine Foods hire management teams within their organization; this allows entry level employees to grow into key positions. The key positions at Kudler Fine Foods support the organization structure core competencies. The key positions at Kudler are; Store Manager, Assistant Store Manager, and Department Manager (Apollo Group, 2007). The store manager oversees the entire store operations by supervising the staff in the key positions. In short, the store manager establishes budgets and operating guidelines Plans and prepares work schedules, and supervises the sales promotion activities throughout the year. Store manager is a key position that follows the vision projected by owner Kathy Kudler (Apollo Group, 2007). The next key position is the assistant store manager. Assistant store managers oversee the cashiers, baggers, stockers and clerks. This position is in charge of, but not limited to, training employees, day to day schedules, taking records of the delivery of merchandise, etc. He or she is also in charge of ordering merchandise, supplies and equipment required to have the stores operate (Apollo Group, 2007).  The department manager is the next key position at Kudler. This position is in charge of supervising the employees in their department and setting goals in sales. Based on projections they must create and set goals laid out within their departments. To help reach the departments’ goals, each employee is trained to become expert in his or her position. For example the employees in meat and fish include butchers who are knowledgeable of the different kinds of meats and the type of cuts require for each type of meats (Apollo Group, 2007). Without the experts in the field the department would not provide the finest selection helping them reach their goals. Every employee in Kudler Fine Foods has an important role within organizational structure. The functional structure at Kudler Fine Foods allows each department to become self-efficient. However, functional organizational structure has drawbacks. Functional structure drawbacks are coordination and communication (Writing, 2014). For Kudler to each there organizational goals, the company must reduce these drawbacks. Collaboration between departments and the organizations core competencies will guide Kudler to reach their goals and reduce any drawbacks.

Collaboration Process and Action Plan
Collaboration is essential for Kudler Fine Foods to reach its organizational goals. Collaboration process starts from the store manager to the entry level employee, and this process is built from the core competencies at Kudler. “Core competencies and competitive capabilities are bundles of skills and knowhow that develop from combined efforts of the cross-functional work groups and departments” (Thompson, Gamble, & Strickland, p. 280, 2006). These core competencies help build a capable organization, and Kudler needs to create an action plan to ensure these core competencies the collaboration process are obtainable. Kudler action plan needs to ensure the core competencies and collaboration processes are on track. Core competence is the “capability or skill that a firm emphasizes and excels in doing while in pursuit of its overall mission” (Pearce & Robinson, 2009, p. G-2). The action plan will have specific deadlines to reach the organization goals. The action plan will be created by the store manager, whom will provide an outline to the other managers at Kudler. The core competences are the framework for Kudler. The store manager will need to implement cross-functional collaboration to ensure communication is consistent. Cross-functional collaboration helps grow knowhow and expertise rather than skills/expertise that resides within single department (Larry Gonzales, 2006). The collaboration process will create a culture that functions off of collaboration, allowing employees to communicate and collaborate with other departments effectively. In addition, Kudler needs to employ quality employees that must succeed in there functional areas. The functional areas at Kudler are broken down in each department, and with a functional structure, each department must be successful for the company to reach it goals. The department managers must collaborate with each other to provide feedback on how to meet these organizations goals outlined in the action plan. Staff in each department must collaborate with each other to reach the goals set forth in the action plan. Lateral and vertical collaboration will aid in this process. Lateral Collaboration and Vertical Collaboration

Collaboration between departments and employees is essential for the organization to reach their goals. Kudler has a functional organizational structure and communication is one of the drawbacks associated with this type to structuring system. Lateral and vertical collaboration will help Kudler Fine Foods with these communication limitations. To ensure collaboration is implemented, the store manager will create an action plan to use lateral and vertical collaboration accurately. Vertical collaboration refers to collaboration at the same level within an organization (Root, 2014). Kudler organizational structure is effective because each department is self-efficient; however communication from the store manager to the general staff is affected. With vertical collaboration, Kudler would be able to collaborate with staff within their department helping them reach their goals. For example, if the store manager wants to increase production in the meat department, vertical collaboration would allow the store manager to communicate directly with the font line staff within that department. For Kudler to each it goals, lateral collaboration must be imbedded in the culture. Lateral collaboration allows for managers and staff to collaborate within different departments (Root, 2014). Kudler functional structure allows each department to run separately which hinders communication. With later collaboration, the department manager could help staff in another department to become more efficient in more areas. This efficiency will not only guide Kudler to reach their organizational goals, but it will also enhance cross-functional collaboration. As mentioned, cross-functional collaboration allows for expertise to be shared. For example, if the store manager needs to increase sales in the bakery department, then other managers could share knowledge he or she has gained within their own department. Allowing both departments to grow together, which in-turn helps the company accomplishes their goals. To implement both lateral and vertical collaboration the store manager must create an action plan. The action plan will have an outline on how to implement both lateral and vertical collaboration efficiently. The action plan will direct the assist store manager to the entry level staff on how to keep communication and collaboration consist. This process is important because, such communication and collaborations will lead to innovations of new products and may lead to the generation of new ideas (Pearce and Robinson, 2009, p. 366). The action plan needs to be able to adapt to the changes in the markets. Adapting to these changes will keep the action plan on track, helping Kudler Fine Foods reach their organizations goals. Key Stakeholders and Collaborative Interactions

Kudler Fine Foods has key stakeholders that help in the organization to achieve their goals. Every stakeholder plays a specific role within the organization, and all of them must collaborate effectively to accomplish said goals. The key stakeholders at Kudler are; Staff, Customers, Wholesale Suppliers, Banks, Competition, and Kathy Kudler (Apollo Group, 2007). Looking at the stakeholders’ one can see why collaboration is important. The staff of clerks and shelf-stock individuals’ are critical to Kudler operation, and the banks extend credit terms so Kudler can pay for supplies. Everyone plays a role at Kudler and if some department is not collaborating then everyone could miss their goal. In addition, collaborative interactions within this organization play an important role to the organizations success. Collaborative interactions between department and stakeholder must be in unison. This process is vital in the continued success of Kudler Fine Foods and Kathy Kudler vision. The vision of Kudler is to provide our customers with the finest selection of products (Apollo Group, 2007).  This vision has paved the path for Kudler three stores, and without collaborative interactions between everyone, Kathy vision would fail. Collaborative efforts guide Kudler to help reach their goals and be the best it can be. In conclusion Kudler Fine Food has strategically positioned in a marketplace with large established firms. The entrepreneurial profit strategy has proven to be successful. Backward integration would describe the for this organizations value chain. Collaboration between functional departments will become an issue as the company expands. Kudler Fine Foods has established measurable goals and is position well for growth.

Apollo Group. (2007). Kudler Fine Foods. Retrieved from Larry Gonzales. (2006). Analyzing a Company’s Resources and Competitive Position. Power Point [Multimedia]. Retrieved from Larry Gonzales, BUS475 website Pearce, J.A. l., & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). Retrieved from The University of Phoenix eBook Collection database. Root, G. (2014). Differences Between Horizontal & Vertical Organizations. Chron. Retrieved from Thompson, A. A., Gamble, J. E., & Strickland, A. J. (2006). Strategy: Winning in the marketplace: Core concepts, analytical tools, cases (2nd ed.). Retrieved from The University of Phoenix eBook Collection database. Writing, A. (2014). Different Types of Organizational Structure. Chron. Retrieved from

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