Functional Area Interrelationships-Kuddler Fine Foods - Essay Example

Collaboration among the departments can be improved if the company introduce Balance Scorecard (BSC) as a part of management control system. Unlike traditional management strategy it not just focus on the financial performance; rather it also takes other non-financial prospective into consideration. First of all financial prospective should be used determine how financially the company should appear in front of the shareholders like the ROI, profit margin, annual growth in the revenue and so on .

The second prospective should be internal business processes. This will assist the company to understand that for satisfying the customers and the stakeholders which processes should be improved. It means the core competency of the company. The third one should be learning and growth. To retain competitiveness, a company should pay attention towards learning and growth of its human resource through training and development program. Finally, the customer prospective should be used to identify that how the company must appear in front of the customers so that it can achieve its vision and mission.

This can be done by better customer relationship management, following relationship management strategy and improving customer satisfaction level. . With the guidance of top management, objective should be selected, the measures should be pointed out, to achieve the objective required targets should be assigned and finally the initiative should be assigned. Managers of different departments should share their view with each other while developing the BSC for the organisation. Once the plan is over, the human resource should be encouraged to participate in the implementation process.

They should be given required training as this will motivate them to be part of the whole process. The plan should be executed in part by part manner so that it can be monitored effectively. The BSC system should be evaluated on regular interval to make required changes as this will retain its utility in the organisation. Some of the vital steps are discussed below: Figure 2: Steps to be followed while developing BSC in the organisation (Source: Kaplan & Norton, 2002, p.275) Part-2 Use of lateral collaboration and vertical collaboration within the organization, and the action plan to use lateral and vertical collaboration Companies take into account vertical as well as horizontal integration to use its resources effectively and to gain synergy (Camarinha-Matos, 2002, p.28). Kudler Fine Foods should also collaborate both vertically as well as horizontally to improve its competitiveness in the market.

Through vertical integration, Kudler Fine Foods will bring together all the parts of value chain under its control. For backward integration, the company should invest in the farmers that supply the fresh products. Kudler Fine Foods can also purchase some of the bakery whose products are sold in the stores. In this manner the company will have better control on its supply of material. For foreword integration, Kudler Fine Foods should