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Kudler Fine Foods Strategic Planning

Essay by   •  September 24, 2011  •  Case Study  •  1,106 Words (5 Pages)  •  1,782 Views

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Failing to plan is equivalent to planning to fail. The success of any company depends upon the foundation it is built on as well as the strategic plan it executes. A successful organization has a vision and knows exactly what needs to be accomplished to carry out that vision. To maintain competitive edge, an organization must also continuously evaluate their current position and make the necessary changes and adjustments. Analysis and Benchmarking must be performed to ensure that their products are innovative and in touch with the latest technology. This paper will discuss how changes in technology have created additional business opportunities for Kudlers. It will also identify the generic strategy Kudlers is pursuing and how Kudler's management should continuously scan the fine food grocer industry for ideas that will allow them to upgrade their strategy.

Strategic information systems (SIS s) are systems that support or shape an organization's competitive strategy. An SIS is characterized by its ability to significantly change the manner in which business is done (Turban, Rainer, & Potter, 2003). Technological advancements have impacted several of Kudler's internal and external processes; such as the human resources, inventory management, marketing, and enhanced customer service. With the emerging technology, Kudlers can use software to streamline the employee scheduling and payroll process. Additionally, Kudlers could implement a customer database that enables them to track customer spending and specifically link it into their inventory process. By incorporating this database, Kudlers eliminated the manual process of tacking and ordering merchandise. In implementing their Internet site, Kudlers could also broaden their clientele by reaching potential consumers who would not normally think to shop there. The new database also allows them the opportunity to create a customer loyalty program. Thus increasing communications to their customers and enhancing customer services.

Kudler is looking to expand their business and is currently pursuing the innovation generic strategy, which is the process of developing new products and services, new features in existing products and services, and new ways to produce or sell them (for example, via the Internet). Also included are innovative information systems applications (Turban, Rainer, & Potter, 2003). Kudlers is planning to offer a catering service in which their customers can easily order their products online. In hopes of word of mouth advertisement, Kudlers will also hold a series of in-store parties that will showcase their products and also give their customers the opportunity to work with chefs and food experts. With this expanded knowledge of preparation of gourmet food as well as extended time spent in the store, Kudlers stand the opportunity of increased revenue.

To remain competitive, Kudlers should continuously scan their external environment to see what other types of innovative ideals and services they could implement to keep their store fresh and interesting. By conducing generic benchmarking, Kudlers could "gather information on competitors as part of their competitive intelligence" (Turban, Rainer, & Potter, 2003, p. 610). Kudler is the only gourmet store in their geographic area. Specialty stores are limited and with the exception of major grocery chains and smaller, independent wine stores, there is no direct competition (The Apollo Group Inc., 2007). With this information, Kudlers could show product differentiation, specifically focusing on the ideal that they are the only sole gourmet food store in their geographical area. This strategy will allow Kudlers



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