After analyzing Kudler Fine Foods weakness and strengths, this sole proprietorship company is confronting several situations such as a limited inventory due to perishable goods, and costly payroll and geographic limitations among other issues. Despite these situations, the main issue is the overall management. Kathy Kudler, the owner, is the only person in charge of the purchasing process and other management responsibilities that prevent the geographic expansion and therefore, financial increase opportunities.
Kudler Fine Foods is a gourmet grocery store with the vision to provide customers with the finest and highest quality selection of food products. The first store was successfully established with strong sales from the beginning and continues to grow. Based on the businesses’ current situation, the existing opportunities could be numerous. Considering the company’s strengths of no direct competition, variety of choices, and business concept, Kudler could be placed as a gourmet grocery store leader, and has its own brand or trade mark of products symbolizing high quality. These trademarks can be distributed out of the current geographic area allowing to market the products in order to open doors for future store expansion. Besides having her own trademark, Kathy could create a franchise business of Kudler Fine Foods and convert it in a grocery store chain and have a geographic expansion based on the same philosophy, market segment and culture of the La Jolla location. This option could give her the opportunity to concentrate on just one store and have the time to develop some other areas like the catering services, and for creating a better marketing plan. Also, she could have the alternative in the future of just living from the franchise sales, including a possible quarterly or yearly net sales profit percentage, giving her the option of a complete or partial retirement.
Despite these visions, the owner is facing time management problems. Although Kudler Fine Foods is a small business, the delegation of duties is necessary for business growth. Another possible solution could be the development of a strategic business plan that includes the recruitment of a manager with the knowledge and skills of the food and spirits industry. This manager could bring the experience of how to minimize current unnecessary duties, help run the operations, and know how to deal with the specialty shops manpower turnover. With expert consulting, this manager also could help with the appropriate information technology mechanisms. An experienced manager could help the development of the franchise concept by implementing the current business culture with a better purchase and inventory tracking system.
The fact that the store’s main operations are under the owner’s control is a major concern. The inventory process is one of the things that she...