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Kudler Problem Statement Essay

1854 words - 8 pages

Kudler Problem Statement
October 25, 2010
MGT 521
University of Phoenix

Kudler Fine Foods Problem Statement
Problem Description
Kudler Fine Foods is a premier gourmet cooking and grocery store with three locations in Southern California. Kathy Kudler established Kudler Fine Foods in 1998. She was a gourmet-cooking enthusiast and was disappointed that her neighborhood did not have an adequate gourmet food store. She made her dream become a reality and quickly went from one store to three. She is heavily involved with the day-to-day operations of her stores and often visits all stores every day. Their mission is, “Kudler Fine Foods is committed to providing customers with the ...view middle of the document...

The last weakness is that one of the stores, located in Del Mar is not performing as well as anticipated.
Opportunities
Kudler’s has the opportunity to expand throughout California and beyond. They can also bring in outside management to help run the company.
Threats
Another Gourmet shop opening up and taking some of the market share is always a threat. An ailing economy is also a concern because if customers think that they need to save their money they may not see the need for gourmet food. The last threat is that of Kathy’s health. Although she is in good health, if something happened to her the company would be threatened with closure because she is doing much of the operating by herself.

Problem Statement
Kudler’s wants to expand their business into other cities and possibly neighboring states. The problem is that Kathy currently does all of the ordering and inventory management in all stores by herself. As it stands Kudler’s is not managed properly to facilitate expansion.
End State and Goals
Kudler Fine Foods strives to provide a quality product. They want to make this service available to more people by opening more stores further from their flagship store. Kudler’s wants to open a new store in Carlsbad, California, and merge it with the Del Mar store by October 2012. They would also like to open a store in San Francisco. This will be a big endeavor; it will be the first store opened outside the general area of southern California. This should be done in the next five years. Furthermore, Kudler wants to open five additional stores outside of California in major cities such as Phoenix, Arizina, Seattle Washington, Portland, Oegon, Salt Lake City, Utah, and Sun Valley, Idaho in the next 10 years. Once stores are open in these major cities expansion can continue throughout these states. A final goal is for Kathy to be able to go on a vacation without the stores being significantly impacted.
Possible Alternatives
It is clear that to reach the end vision for the company changes need to be made to the way Kudlers is managed. While Kathy has done a tremendous job growing the company to where it currently is, the following have been identified as possible alternatives.
Hire an MBA
One possible alternative solution to the problem is to hire an MBA to come into the company and make necessary changes to prepare the company for expansion into neighboring states and markets. An MBA has the proper skills and experience to help propel the company into new areas successfully.
Franchising
Kudler could sell franchises to those who are interested.
Training Manual
Another alternative is to have Kathy write a detailed training manual listing the duties and responsibilities of each job in the organization. This manual would include all of her responsibilities including inventory management and purchasing.
Empower Store Managers
Each store has a general manager who handles the affairs of his or her store. Kathy could...

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