Kudler’s Strategic Planning

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Kudler’s Strategic Planning Your name University Class Instructor Date

It has about three stores. Kudler Fine Foods is an incredibly renowned trendy specialty food store that was opened in the year 1998 by Kathy Kudler. Del Mar and Encinitas. This scanning shows internal (strength & Weakness) and external environment (Opportunities & threats). The company was valued for its employee fairness and high customer services. Company’s Background In San Diego metropolitan area. The company has three stores with different departments. While analyzing this company. In comparison to the other competitors. which is situated in San Diego 2 metropolitan area.Kudler’s Strategic Planning Executive Summary Kudler Fine Food is a western United States based company. Each store of the company is divided into different departments such as . The company was based at distinct California locations to serve the ever-growing consumer’s demand with high quality products at reasonable prices. In the year 1998. the environmental scan was necessarily researched to better realize the current critical situation of the company. the financial strength of Kudler is quite good as reflected in the forecasted Income statement and Balance sheet. which was located in La Jolla. The forecasted financials of the company pondered that its net revenues is showing tremendous growth. Kudler efficiently asserts a comparatively strong position in the global marketplace through maintaining its apparent growth. It furnishes quality food products at the reasonable price and also texture option of the best food product to their customers. All of its three stores are equipped with the very good quality domestic and imported food materials. Its vision is to arouse its profit earning ability through capturing large market share. it started its functions to serve ever-growing consumers demand. which reflects that despite of the number of threats faced by the company.

The value statement of Kudler focuses on employee’s equity. etc. In addition to this. Fresh Bakery and Pastries. high dedication. The 3 mission of Kudler Fine Food is to supply good quality or value for money food products & wines to their consumers as per the demand at fair cost. The value statement comprises of the organizational values set by Kudler Fine Food that conceive ethical. Condiments and Packaged Foods. character. 2003). Mission Statement Mission statement ponders the function that the company acts in a society and fundamental reason for the presence of that organization. consumer . the value statement articulates the right direction to the company. Its mission statement also reflects that its selection procedure is matched with experienced and well-versed staff and also wants to render a delicious and delighting shopping outing or experience to all of their consumers. is reflecting in this statement (Ryall & Craig. The corporate philosophy. identity. loyalty. The vision of the company is to maximize its profitability through furnishing finest choice of the best quality food products. 2003). Vision Statement Vision statement articulates the position that an organization would like to carry out in the near future. organizational image. The vision statement of the company reflects that it wants to spring up as a premier gourmet food market for customers. It brings up the long term thinking of the company that will endlessly promote the company towards its predefined targets (Ryall & Craig. its vision is to raise its market share in order to assert its growth. social & cultural responsibility (Ryall & Craig. Value Statement In achieving vision & mission. 2003).Kudler’s Strategic Planning Fresh Produce. integrity & honesty. Fresh Meat & Seafood and Cheese's and Specialty Dairy Products.

Internal environmental scan Strengths • Strong vision of end state: The Company has a firm vision of the end state goals that 4 are to be achieved in future. The internal scan takes in the identification of the strengths and weaknesses. • Information technology: The developments in technology have facilitated the employees to derive the critical customer. cleanliness. etc. that ultimately proves beneficial for the company. following healthy criteria. All its values enable the company to effectively keep long term relationship with its customers. 2005). employees. It will help in staying in touch with the industry standards. etc. forecasts and developments. good quality standard. investors. • The company has an established infrastructure and a dedicated workforce who works for the benefit of the organization. This knowledge is critical as the company works to build its suitable strategy. impertinence. This makes the attainment easy and this in turn helps the accomplishment of the overall objectives of the firm. Environmental Scan Environmental scan involves the internal as well as external scan of the foods grocery industry. Weaknesses . where as the external scan involves the identification of the opportunities and threats (Wilson & Gilligan.Kudler’s Strategic Planning service. order and financial information by using some simple keystrokes. The environmental scan is extremely important for constantly revising the strategy of KFF.

• Lack of industry knowledge: KFF lacks the knowledge of the industry which is extremely important to frame its strategies and face the competition adequately. • 5 Also. Recommended Strategy Strategy concerns to plan formulation and actions taken to empower an organization to carry out its intended objective effectively. The company needs to go in for new product development and product modification to cope up with the competition.Kudler’s Strategic Planning • Lack of distribution of power: The structure of the company is such that it is not properly decentralized. most of the authority and power is not distributed among the members . External environmental scan Opportunities • There is an opportunity to develop an exclusive position in organic catering. This opportunity is consistent with growth strategy of KFF and it will enhance the revenues of the company.employees and the managers. there is a potential lack of interest in the area of product offering. • It can explore the opportunity to grow the business in international markets and increase its market share in the grocery food industry. Threats • The company faces the challenge of competition and the use of enhanced technology by the other companies catering in this sector. To effectively determine a strategic plan for growth in such a explosive business environment. the company must understand how the various .

With the product differentiation strategy. To effectively confront the critical issues. function in the industry and regard the specific situation of the company. Kudler Fine Food Company easily make out its product image profitably and minifying competitive rivalry. Work breakdown Structure: . In this strategy. cost leadership. so that it will be easy to equating product strategy (supply side) to the dimensions of the business systems target market segments (demand side). it is concluded that only effective strategy makes an organization enable to cope with business requirements and attain predefined targets. it will be easy for Kudler Fine Food to fruitfully evaluate the foodstuff demands & supply and align its output plan consequently. Thus.Kudler’s Strategic Planning strategy like cost differentiation. 6 With this strategy. the company merge product differentiation strategy with a market segmentation strategy is an efficacious way. stability & growth strategy. etc. the recommended best strategy for Kudler is the Combination strategy.

fresh and nutritious food Modification in existing products Increase production process Use of new techniques and skilled labor – enhanced IT and qualified personnel Create brand image Use of different features and design Expansion Diversification Growth – To achieve 15% sales growth Cost leadership Product differntiation Combination strategy Market segmentation Product differentiation . 1 grocery food store In Global market New product development developing more healthy.Kudler’s Strategic Planning 7 Level 1 (Objective) Level 2 (Functional tactics) Level 3 (Action items) In local market – become no.

Rent. 2000). In the Cash Budget design. roadmap. following are the major financial items that affect the propagation of cash flows (Shim & Siegel. time. which is equally distributed monthly. strategic continuum. With this budget. the following are the key success factors that must be considered planning system. Kudler Fine Food easily ascertains excess and shortage of cash at any time. 2000). Cash Budget: Through making the cash budget. we can systematically implement project tasks in the right way with effective manner. environmental characteristics. purchases cost is considered 60% of 8 sales revenue and paid in same month and total wages to management is 222000 yearly. the company should consider each and every aspect related to the strategic plan. it will be easy to know its expected net income in the future. control. With the forecasted Income statement. Depreciation. the following are the assumptions taken such as sales is assumed to increase by 15% every month.Kudler’s Strategic Planning Key success factors To efficaciously implement the plan. On the other side. In this cash budget. With the proper planning system and road map. etc. Thus. etc. it is concluded that at the time of plan implementation. Forecasted Financials: Forecasted Financials would facilitate the company to know about its financial performance over the last years. 85% of sales is collected in next month. the financial analysis of the expenditure can be done efficiently. projected balance sheet reflects its entire future financial performance and nature of the business (Shim & Siegel. (Cash Outlfows). Wages & salaries paid.Such items are Sales and Cash Collections (Cash inflows) and Purchases.The forecasted financials of Kudler Fine Food are shown below: .

In this step.115 $1. develop appraisal and planning system.446 Total Liabilities $192.446 $336.000 $59.583 Accounts payable $272.200.000 R&D $30.446 Cash Accounts receivable Inventory Fixed assets. With this plan.000 Net income 9 $2. it will be easy to key out.Kudler’s Strategic Planning Budgeted Income Statement Sales Cost of Goods Sold Gross profit Wages and salaries $222. organization identifies all the risks associated with project.391 $464. The following are the risks faced by KFF include lack of a management team and poor planning. • Analysis of alternatives: This is another important step in which we key out the various alternatives to solve out the various risks.669 $800.001.446 $752. the Kudler Fine Food should follow the following risk management plan.figure) $150. 2006). To cope with the critical risks. evaluate and prioritize the risks through unified and efficient application of resources in order dilute.609 $36. .000 Advertising $60. The risk appraisal matrix is a vital part of this management plan.000 Net income $752.863 Accumlated depreciation $5.000 Rent $24.000 Long term loan(Bal. The various alternatives are implementing good strategic plan.446 Risk Management Plan Risk Management Plan is defined as a plan document that anticipates unexpected risks and to formulate the response plans in order to minify risk. Such risk management plan includes: • Identification of risk: This is the first and foremost step in the risk management plan. scrutinize and control the impact of inauspicious consequences (Portny. net Total assets Budgeted Balance Sheet $324.000 $464.

it is concluded that through applying this risk plan. Kudler Fine Food may incorporate this thinking through properly coordinating all its statements with strategy. • Corrective actions or feedback: In this step. this planning also furnishes the manner in which the company and its strategists propose to put the strategies into action. In addition to this. Regards. The company's vision. A good strategic plan is the best alternative that furnishes the information regarding the different elements of the strategic management. Kudler’s strategic planning is an effective way that facilitates in attaining objectives. mission and value statement entirely depends on the strategic planning. Cover Letter February 12. company should keep in mind the time frame in the formulation of their strategic plan. we will assess the actual and standard results in order to key out the difference. 2010 Board of Directors Kudler Fine Foods Dear Sir/Madam. Your name . we will choose best alternative that ultimately 10 proves to be beneficial for the organization to cope up with the contingencies. Thus. In addition to this.Kudler’s Strategic Planning • Implement strategies: In this step. In keeping the plan current. so that it will be easy to take corrective actions accordingly. I would like to share my thoughts regarding strategic plan. The strategic planning renders the information related to the varying strategic management elements. the management can easily monitor and control risks in the effective way and also increase the chances of achieving success.

J. C. S. 11 Shim. (2006). Strategic Marketing Management: Planning. K. & Gilligan. J.). Butterworth-Heinemann. C. (2nd ed. G. R. & Siegel. . J. M. M.E.). Implementation and Control (3rd ed. S. (2000). Financial Management (2nd ed. Ryall. Project management for dummies. Barron's Educational Series. For Dummies.Kudler’s Strategic Planning Bibliography Portny. (2003). (2005). & Craig. Wilson.). Strategic Management Kogan Page Publishers. J.