Problem Definition at Kudler Fine Foods - Case Study Example

With the reasonable success of its first three stores, Kudler desires to expand into other locations in Southern California as well as in San Francisco. It is also planning to expand its products and services offerings with the addition of coffee & tea, a fish counter, and a deli, as well as more aggressively market its catering services. In order to target high-end areas in other cities, Kudler plans to launch an internet website that will eventually have e-commerce capabilities. Several issues have been identified in Kudler's current operations that need to be addressed before it can successfully achieve its future goals.

Currently, it deals mainly in perishable goods which require extremely accurate forecasting of inventories so as not to incur losses. Kudler employs some relatively highly paid specialty personnel such as the butcher, the baker and the wine steward, and finding qualified people for a new store or to replace those who leave is difficult, especially so, since Kudler's pay is a bit below average. Kathy Kudler and her small management team may not be able to handle additional stores in farther locations, if their management approach is not adjusted to this situation, which limits their plans for expansion.

The Del Mar location is not doing too well and needs to be addressed. Another gourmet shop opening within Kudler's current market areas would definitely pose a threat. And since, Kudler's gourmet products are pricey, an economic decline in its geographic area would definitely hurt Kudler. Problem/Opportunity Taking economic decline as the issue in question, this problem can only be solved by preparing for such an eventuality. According to Joseph Ellis (2005), a Goldman Sachs partner, economic cycles or periods of advancing and slowing are the rule and there are 4 stages of economic downturn: the peak, a modest slowing, intensifying worrying, and the advent of recession.

Therefore, preparations to help minimize the threat of an economic decline are always worth undertaking so as not to be caught off-guard when it actually happens. Actions to hedge the disadvantageous effects of an economic decline can present opportunities. Kudler needs to carefully choose locations where it will set up additional stores, like identifying high-growth areas where profitable business operations could be better forecasted. These new locations may be in geographically dispersed areas, therefore the need to take a new management approach for managing more widely dispersed operations needs to be considered.

The introduction and aggressive marketing of new products and services (such as online selling and catering) in its stores not only enhances Kudler's business viability but will also increase customers' patronage of Kudler as it expands into more stores. In the event of an economic decline in a certain geographic location, Kudler would be able to handle its negative effects because of the increased number of profitable stores operating, while actions are being undertaken to relocate a distressed store.

End-State Goals The end vision for Kudler consists of several goals that would have