Kudler Fine Foods Problem Statement Essay Example for Free

Kudler Fine Foods Problem Statement Essay The following is a problem statement explaining what is currently wrong with Kudlers plans on expansion, and how they can improve these plans. Introduction After reviewing the strategic plan for Kudlers Fine Foods it is obvious there are several issues that will stunt the growth and success of the organization. The company is suffering from a lack of management and poor organization planning. The issues that will be discussed are the poorly developed expansion and growth plans, and the lack of risk management in preparation of a competitor entering the market. Problem Statement The management at Kudler Fine Foods is planning on opening a new location when all of the current locations are not successful, and the company has not done a proper analysis of the need for their services in the area. Also Kudler is not prepared for factors that may decrease the profitability of the company, or factors that can contribute to the failure of a new location. Solution With the Del Mar location not producing profit as expected this is the location management should use to create a market research and analysis plan. By using this location they will be able to determine the factors that are hindering the success of this location and then develop ways to counteract those factors. The benefit is they will improve the business done at that location before opening a new location. By looking at factors like population, socio-economic status in locations surrounding area and health factors in the area can determine what the need are for the community. Management should also look to see where people are purchasing food in the community and what types of food and products are selling at the local grocery. If there are gourmet products selling out of the supermarket than that is a factor that needs to be accounted for. Once the market research is done Kudlers management can the focus on a risk management plan. Before a risk management plan can be established they must know what risk are out there and the market analysis and research will help the company determine what risk and challenges they face. Risk management is a part of a basic business plan, I see where threats are outlined in the strategic plan but there are no alternative plans to minimize each threat nor are there any plans for how to be competitive should a competitor arise. Kudler only considers other gourmet shops as competition they should also consider, grocery stores that sell gourmet foods a competitor. Then they should focus on how to maintain their existing book of business. If Kudler developed their website so customers could place orders online that would give them a way to expand while working on the risk management plans and the online based business would also help with the market research. A high concentration of orders coming from a specific location may be an indicator used to determine where to open a new store. Desired Resolution Kudler Fine Foods will be able to expand all facets of the business and have a risk management plan in place to counter act competition entering the market. Kudler will expand in to locations where they will be successful. Kudler will also have an effective and efficient model for future expansion and growth. Conclusion The goal of Kudler Fine Foods is expansion and growth while increasing profit and the current book of business. By doing the extra research and implementing a risk management program before opening a new location will increase the success of all three current locations and ensure the success of any future locations. It will also help Kudler organize and develop other facets of the business like the website. A little extra work goes along way and with the risk management plan in place and a new location market analysis model being used Kudler Fine Foods should be able to grow and meet all the organizations goals.