In today’s highly competitive business environment, budget planning or forecast based planning methods are insufficient for business to survive. The firm must engage at strategic planning to clearly define objectives and built a strong internal structure in order to assess both the internal and external situation to formulate planning, implement the strategy, evaluate the progress, and make adjustment as necessary to stay on track. Strategic planning has a bad reputation. People think of it as a laborious process to produce a document that will just languish on a shelf. Many business managers consider strategic planning to be a waste of time. But these perceptions aren't really accurate. A company needs a strategic plan for the same reason that a ship needs a rudder to steer it. Strategic planning should be an integral part of the business. In our case today, we will review the Kudler Fine Foods strategic plan in general. Kudler Fine Foods was established in 1998 when Kathy Kudler fulfilled her vision of establishing her own gourmet food store. Kathy had a passion for gourmet foods but found that her particular neighborhood just did not have a wide selection of products to choose from for the day to day meals. “Although she had no experience in operating a gourmet food shop” (Kudler Strategic Plan 2003), she believed that a one-stop shopping experience at a place with lots of variety and reasonable prices would be successful. Kudler Fine Foods, like many other businesses, has to contend with threats that influence their position in the industry. Especially the forces model analyzes competitiveness and strategic planning to increase a company's competitive advantage. According to this, there are 5 major forces that influence a company's success or failure in an industry. They are the threat of entry of new competitors, the power of suppliers, the power of customers, the threat of substitute products or services, and the rivalry among existing firms (Turban,...
References: Kudler Strategic Plan 2003 – University of Phoenix – MGT/521 Course Material.
Turban, E, Rainer, R.K., & Potter, R. (2003). Introduction to information
Gomez-Mejia, Luis R. Balkin, David B. (2002) Management 1e. New York : The McGraw Hill Companies.
Please join StudyMode to read the full document