Virtual Organization Strategy: Kudler Fine Foods

Better Essays
Virtual Organization Strategy Paper
Melisa O’Neal, Nathan Reade, Jamie Vazquez, Scott Marquez
FIN 370
April 4, 2011
Thomas Rietta

Virtual Organization Strategy Paper
Kudler Fine Foods was founded in June 1998 by Kathy Kudler. Within nine months the store reached the break-even point and showed a profit by the end of the year. In the next five years Kudler Fine Foods would expand to three locations and has proven to be a profitable business. Currently, Kudler Fine Foods is a privately owned business but needs to expand. Three methods of expansion will be analyzed by SWOT analysis and feedback will be provided for a recommendation of the best method of expansion.
Going Public through an IPO
Two strengths exist as reasons for
…show more content…
Two strengths to acquiring another organization are as follows. First, acquiring another organization will reduce competition. If Kudler Fine Foods acquires another organization their competition will be lower because their competitor is working for them. A second strength is it will decrease operating and production costs. These costs will now be shared by another organization; therefore, reduced.
Two good reasons exist for Kudler Fine Foods to merge with another organization. Merging with another organization can strengthen Kudler Fine Foods by creating wealth that is accomplished in at least two ways. Wealth can first be created by economies of scales. Different expenses like accounting or data processing expenses can be reduced because of the organization splitting these expenses with another company. Wealth also can be created through market power growing (Keown, et al., 2005).
…show more content…
Laws and regulations vary by state so any acquisition should be carefully reviewed by lawyers before acting. Risks of acquisitions must also be carefully analyzed to determine the target company’s financial standing including all liabilities and pending legal issues.
Another threat to consider is overpaying for the acquisition. In acquisitions, it is common for companies experiencing acquisition to “window dress’ the company to make the numbers look better. This includes selling stock with big losses and buying stock with big gains before the sale. If the acquisitions does go through there is also the threat of assimilation with the target company employees. Convincing the target company to follow Kudler’s organizational culture can be

You May Also Find These Documents Helpful

  • Better Essays

    Kudler Fine Foods is a privately held upscale specialty food store, located in the metropolitan area of San Diego. Currently the company has three locations in La Jolla, Del Mar, and Encinitas. Kudler stores have a fine selection of bakery and pastry products, fresh produce, fresh meat, seafood, condiments, packaged food, cheese, and specialty dairy products. Each of the stores has a domestic and imported fare. The owners at Kudler are exploring ways to expand the organization and maximize profits. The three options for expansion are going public through and IPO, acquiring another organization in the same industry, and merging with another organization. This paper will list the three options and provide the strengths, weaknesses, opportunities, and threats of each approach.…

    • 1180 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Kudler Fine Foods was founded in 1998 and have three locations only in California. They are trying to expand their services and overall efficiency (Kudler, 2007). Acquiring another organization in the same industry seems to be a straightforward plan for Kudler. Developing a joint venture with a foreign company would put the least amount of political risk on Kudler. With every positive advantage, the board of Kudler would need to look at the potential negative aspects as well.…

    • 398 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Kathy Kudler founded Kudler Fine Food. She was once the VP of marketing for a large defense contractor. Weary of the constant travel and the pressures of corporate life, Kathy was looking for other opportunities. As it happened, Kathy relieved her stress through gourmet cooking and on a shopping trip for ingredients for a gourmet meal. Kathy suddenly realized there was an opportunity for an upscale epicurean food shop in La Jolla. Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within nine months the store was at break-even and was profitable for the year. In 2000, a second store was opened in Del Mar and in 2003 a third shop opened in Encinitas.…

    • 1586 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Kudler Fine Foods

    • 1989 Words
    • 8 Pages

    Kudler Fine Foods is the product of an inspiration. Tired of trying to locate gourmet foods for her own cooking, Kathy Kudler decided it was time to create her own one-stop shopping store for specialty foods and spirits that everyone in search for high-end foods would find not only convenient, but affordable as well. Kudler Fine Foods has demonstrated its ability to establish itself in the specialty food industry, however, it must be able to adapt to changes, both internal and external. A review of the company culture and leadership ship style will provide an insight to its ability to maintain success as forces of change are experienced.…

    • 1989 Words
    • 8 Pages
    Better Essays
  • Good Essays

    “Kudler Fine Foods was established in 1998 when Kathy Kudler fulfilled her vision of establishing her own gourmet food store. The La Jolla store continues to grow while the Del Mar store has been having some difficulties. The store in Encinitas has just opened, but sales seem brisk.” (Apollo, 2011, Strategic Plan, p. 3) The owner works 7 days a week and performs many jobs from purchasing to stocking shelves. Kudler Fine Foods sees itself outside of competition.…

    • 1030 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Within the next 12 months, Kudler Fine Foods plans to increase customer loyalty by offering added high-margin services, leveraging a better understanding of customer purchase patterns, and providing more efficient operations. Kudler Fine Foods also plans to increase the customer base through social network marketing, word of mouth, and increasing profitability by cost reductions initiatives. In view of this strategic direction, Kudler Fine Foods needs to restructure and set up of a sales and marketing team.…

    • 3165 Words
    • 13 Pages
    Powerful Essays
  • Powerful Essays

    Kudler Fine Foods

    • 1144 Words
    • 5 Pages

    Kudler Fine Foods knows its target consumer and works to improve its strategy and tactics to make sure customers are satisfied. Kudler understands that consumers want healthy options, and at budgeted prices so…

    • 1144 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Kudler Fine Food- Eco 365

    • 1093 Words
    • 5 Pages

    Kudler Foods specializes in providing unique and high quality ingredients for the gourmet chef. In an effort to increase profits, the company is interested in adding catering to its service offerings. The success of the catering service offering is dependent on the creation of an appropriate and effective marketing campaign. The market campaign chosen must step up to the plate and make this happen. Things could go as planned but it's highly based on the market team. They have to know what it takes to make this productive so that Kudler can see a profit overall. Kathy Kudler has hired me to review and make some recommendations. This paper is going to analyze how Kudler Fine Foods will maintain and grow with a profit.…

    • 1093 Words
    • 5 Pages
    Good Essays
  • Best Essays

    Kudler Fine Foods is a company that deals with bakery and pastries products, along with providing produce, meats, seafood, condiments, cheese, specialty dairy products, and they also package foods if necessary throughout their many locations within California. Kudler Fine Foods ultimate goal is very similar to all businesses alike, which is to have an excess amount of income over expenditure. According to what is stated on the Intranet for Kudler Fine Foods, their drive as a business, is to always maintain being the best in the business when comes to servicing customers with top high end products (goods and even services produced by Kudler Fine Foods). KFF will also have to understand what the needs of customers are and what they are looking for. Most of the time, or should I say all the time, customers are always relying on the shifting and movements (up or down), of price levels over different periods of time, and the expectations of those price levels, would be a decrease in goods and services mostly all the time. Observing the shifting of price levels is a strategy done by customers as they go through the process of examining two or more companies similar to KFF; in order to discover similarities and differences.…

    • 1664 Words
    • 7 Pages
    Best Essays
  • Better Essays

    Welcome to WritePoint, the automated review system that recognizes errors most commonly made by university students in academic essays. The system embeds comments into your paper and suggests possible changes in grammar and style. Please evaluate each comment carefully to ensure that the suggested change is appropriate for your paper, but remember that your instructor's preferences for style and format prevail. You will also need to review your own citations and references since WritePoint capability in this area is limited. Please see the other helpful writing resources in the Tutorials and Guides section of the Center for Writing Excellence. Thank you for using WritePoint.…

    • 1278 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Kudler Fine Foods and it creation employs the modern technology in its best form. Kudler Fine Food implement steps in its strategic management process and able to identify what makes the organization have a sustained superior performance. For every decision employed at Kudler Fine Food, the external and internal environment data are used to determine the organization 's strategic intent, mission and its core values that make the organization what it is and stands for. Kudler Fine Foods from observation conducts analysis of the organization strengths, weakness, opportunities, and threats. From time to time they evaluate the organization internal resources and capabilities. The ability of Kudler Fine Foods to chose the appropriate business strategy at corporate and business-unit level have contributed to it success.…

    • 1409 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Mgt 521 Strategic Plan

    • 1030 Words
    • 5 Pages

    One current problem that Kudler Fine Foods has is that the strategic plan is not current, it does not fit the company’s current make up, and the owner is too involved in each store location to concentrate on the company’s long term survival. Kudler’s owner needs to reevaluate the company’s strategic plan, from 2003, and have the managers to buy-in to the plan. The new plan not only should include the managers but also all vital employees as well. With all key employees contributing to the plan it will be easier to implement and evaluate its effectiveness (Frey, 2011).…

    • 1030 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Lafleur Trading Company is a private company that has supplied the world with the finest food and wines over 3 dozen trading partners across the planet. Recently, they have decided to expand their operations. Looking at their options, they may expand by acquiring another organization in the same industry, go public through an IPO, or merge with another organization. Below are the pros and cons that may come with each approach.…

    • 1129 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Kudler Fine Foods has continued to grow and is now poised to make significant internal changes to increase revenue and customer satisfaction. Kudler Fine Foods is a gourmet grocery store and recent market surveys have shown they have continued to exceed customer 's satisfaction in every area except one: the cost of merchandise. By exploring ways to reduce costs Kudler Fine Foods will experience an increase in customer satisfaction.…

    • 1031 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Turban, E., Rainer, R.K., & Potter, R.E. (2003). Introduction to Information Technology, 8e. New York: John Wiley & Sons, Inc.…

    • 1840 Words
    • 8 Pages
    Powerful Essays