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Strategic Plan Update Strategic Planning and Implementation/STR 581 February 8, 2005

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Strategic Plan Update Executive Summary Kudler Fine Food is a western United States based company, which is located in San Diego metropolitan area. It furnishes quality food products at the reasonable price and texture option of the best food product to their customers. In the year 1998, it started its functions to serve evergrowing consumers demand. The company has three stores with different departments. Its vision is to arouse its profit earning ability through capturing large market share. The company was valued for its employee fairness and high customer services. In comparison to the other competitors, the financial strength of Kudler is quite good as reflected in the forecasted Income statement and Balance sheet. The forecasted financials of the company pondered that its net revenues is showing tremendous growth. While analyzing this company, an environmental scan was necessarily to better realize the current critical situation of the company. This scanning shows internal (Strength & Weakness) and external environment (Opportunities & Threats), which reflects that despite of the number of threats faced by the company; Kudler Fine Foods efficiently asserts a comparatively strong position in the global marketplace through maintaining its apparent growth.

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Companys Background In San Diego metropolitan area, Kudler Fine Foods is an incredibly renowned trendy specialty food store that opened in the year 1998 by Kathy Kudler. The company has locations at distinct California areas to serve the ever-growing consumer's demand with high quality products at reasonable prices. It has about three stores, which was located in La Jolla, Del Mar and Encinitas. All of its three stores are equipped with the very good quality domestic and imported food materials. Each store of the company, divided into different departments such as Fresh Produce, Condiments and Packaged Foods, Fresh Bakery and Pastries, Fresh Meat & Seafood and Cheese's and Specialty Dairy Products. Kathy Kudler established Kudler Fine Foods in 1998 this was a fulfilled her vision of owning her own gourmet food store. Kathy Kudler has a passion for gourmet foods. This assignment is to develop a Strategic Plan Update, in the strategic plan, draft will included a revised organizational mission, vision, and values statements. The company has three stores with different departments. Its vision is to arouse its profit earning ability through capturing large market share. The company was valued for its employee fairness and high customer services. Mission statement Kudler Fine Foods is committed to providing our customers with the finest selection of the very best foods and wines so that ones culinary visions can come true. Mission statement ponders the function that the company acts in a society and fundamental reason for the presence of that organization. The corporate philosophy, identity, character, organizational image, etc. is reflecting in this statement (Pearce & Robinson, 2009). The mission of Kudler Fine Food is to supply good quality and value for money food products & wines to our consumers as per the demand at fair cost. Its mission statement also reflects that its

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selection procedure matched with experienced and well-versed staff and wants to render a delicious and delighting shopping outing or experience to all their consumers. Vision Statement Kudler Fine Foods will be the premiere gourmet grocery store for those well-informed shoppers who are searching for the finest meats, produce, cheeses, and wine. Vision statement articulates the position that an organization would like to carry out in the near future. It brings up the long-term thinking of the company that will endlessly promote the company toward its predefined targets (Pearce & Robinson, 2009). The vision of the company is to maximize its profitability through furnishing finest choice of the best quality food products. In addition to this, its vision is to raise its market share to assert its growth. The vision statement of the company reflects that it wants to spring up as a premier gourmet market for customers My recommend for a vision statement for Kudler Fine Foods is one-stop gourmet food store that promises its customers specialty produces the finest meats products, cheeses, and wines. Kudler Foods wanted to continue to cater to its current target market, the affluent, technological well-informed population; by providing an efficient user-friendly online service, deliver a quality product, to expand the business and continue to be the leader in the gourmet foods industry. In achieving vision & mission, the value statement articulates the right direction to the company. Value Statement The value statement comprises of the organizational values set by Kudler Fine Food that conceive ethical, social & cultural responsibility (Pearce & Robinson, 2009). The value statement of Kudler focuses on employee's equity, loyalty, high dedication, integrity & honesty, consumer service, good quality standard, impertinence, cleanliness, following healthy criteria, etc. All its

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values enable the company to effectively keep long-term relationship with its customers, investors, employees, etc. that ultimately proves beneficial for the company. The company's vision, mission and value statement entirely depends on the strategic planning (Wilson & Gilligan, 2005). In keeping the plan current, Kudler Fine Food may incorporate this thinking through properly coordinating all its statements with strategy. In addition to this, company should keep in mind the period in the formulation of their strategic plan. Environmental Scan Environmental scan involves the internal as well as external scan of the foods grocery industry. The environmental scan is extremely important for constantly revising the strategy of Kudler Fine Food. It will help in staying in touch with the industry standards, forecasts and developments. This knowledge is critical as the company works to build its suitable strategy. The internal scan takes in the identification of the strengths and weaknesses; whereas the external scan involves the identification of the opportunities and threats (Wilson & Gilligan, 2005). Internal Environmental Scan Strengths Strong vision of end state: The Company has a firm vision of the end state goals that are to be achieved in future. This makes the attainment easy and this in turn helps the accomplishment of the overall objectives of the firm. Information technology: The developments in technology have facilitated the employees to derive the critical customer, order and financial information by using some simple keystrokes.

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The company has an established infrastructure and a dedicated workforce who works for the benefit of the organization.

Weaknesses Lack of distribution of power: The structure of the company is such that it is not properly decentralized; most of the authority and power is not distributed among the members - employees and the managers.

Lack of industry knowledge: Kudler Fine Food lacks the knowledge of the industry which is extremely important to frame its strategies and face the competition adequately. External Environmental Scan

Opportunities

There is an opportunity to develop an exclusive position in organic catering. This opportunity is consistent with growth strategy of Kudler Fine Food and it will enhance the revenues of the company.

It can explore the opportunity to grow the business in international markets and increase its market share in the grocery food industry.

Threats The company faces the challenge of competition and the use of enhanced technology by the other companies catering in this sector.

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Also, there is a potential lack of interest in the area of product offering. The company needs to go in for new product development and product modification to cope up with the competition.

Kudler Fine Foods uses only the finest organic ingredients. Whenever possible, Kudler Fine Foods purchase local produce from organic farmers. Kudler Fine Foods use unbleached flour in our bakery goods and Kudler Fine Foods do not add unnecessary preservatives to our products. The rotation of the food on the shelves is an ongoing process. The item that management deemed still in good condition, donated to local homeless shelters and food kitchens. Strategy concerns to plan formulation and actions taken to empower an organization to carry out its intended objective effectively. To effectively determine a strategic plan for growth in such a explosive business environment, the company must understand how the various strategy like cost differentiation, cost leadership, stability & growth strategy, etc. function in the industry and regard the specific situation of the company. To confront the critical issues effectively, the recommended best strategy for Kudler is the Combination strategy. In this strategy, the company merge the product differentiation strategy with a market segmentation strategy is an efficacious way, so that it will be easy to equating product strategy (supply side) to the dimensions of the business systems target market segments (demand side). With this strategy, it will be easy for Kudler Fine Food to fruitfully evaluate the foodstuff demands & supply and align its output plan consequently. With the product differentiation strategy, Kudler Fine Food Company easily make out its product image profitably and minifying competitive rivalry. Thus, one concludes that only effective strategy makes an organization enable

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to cope with business requirements and attain predefined targets. To implement the plan, the following are the key success factors that must be considered planning system: Time Roadmap Environmental Characteristics Strategic Continuum Control

With the proper planning system and road map, Kudler Fine Food can systematically implement project tasks in the right way with effective manner. Thus, concludes that at the time of plan implementation, Kudler Fine Food should consider each aspect related to the strategic plan. Implementation Plan Once Kathy Kudler has found the right person to work with her, implementing the plan will require several steps. The most important step will be to evaluate the Operating Agreement of Kudler and the existing accounting practice. It is imperative that the book complies with the Operating Agreement. Secondly, the companys current financial status will need to evaluate and its cash position identified. Thirdly, a thorough cost analysis, expenditure forecast, and comparative analysis to identify cost savings performed. Analysis of existing inventory and the ordering processing will also need performed to facilitate creating an automated tracking and ordering system. Evaluating of future growth and opportunity needs to follow. Finally, the presentation of the findings and solutions to Kathy Kudler along with helping her set goals and expectations, and making recommendations on how best to achieve those goals by developing policies and procedures.

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Through making the cash budget, the financial analysis of the expenditure can be done efficiently. With this budget, Kudler Fine Food easily ascertains excess and shortage of cash at any time. In this cash budget, following are the major financial items that affect the propagation of cash flows (Shim & Siegel, 2000).Such items are Sales and Cash Collections (Cash inflows) and Purchases, Wages & salaries paid, Rent, Depreciation, etc. (Cash Outflows). In the Cash Budget design, the following are the assumptions taken such as sales is assumed to increase by 15% every month, 85% of sales is collected in next month, purchases cost is considered 60% of sales revenue and paid in same month and total wages to management is 222000 yearly, which is equally distributed monthly. Forecasted Financials Forecasted Financials would facilitate the company to know about its financial performance over the last years. With the forecasted Income statement, it will be easy to know its expected net income in the future. On the other side, projected balance sheet reflects its entire future financial performance and nature of the business (Shim & Siegel, 2000).
Cash Accounts receivable Inventory Fixed assets, net Total assets Budgeted Balance Sheet $324,583 Accounts payable $272,863 Accumulated depreciation $5,000 Long term loan(Bal.figure) $150,000 Net income $752,446 Total Liabilities $192,609 $36,000 $59,391 $464,446 $752,446

Budgeted Income Statement Sales Cost of Goods Sold Gross profit Wages and salaries $222,000 Advertising $60,000 R&D $30,000 Rent $24,000 Net income

$2,001,115 $1,200,669 $800,446

$336,000 $464,446

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Risk Management Plan The definition of Risk Management Plan it is a plan document that anticipates unexpected risks and to formulate the response plans in order to minify risk. The risk appraisal matrix is a vital part of this management plan. With this plan, it will be easy to key out, evaluate and prioritize the risks through unified and efficient application of resources in order dilute, scrutinize and control the impact of inauspicious consequences (Portny, 2006). To cope with the critical risks, the Kudler Fine Food should follow the following risk management plan. Such risk management plan includes

Identification of risk: This is the first and foremost step in the risk management plan. In this

step, organization identifies all the risks associated with project. The following are the risks faced by Kudler Fine Food include lack of a management team and poor planning. Analysis of alternatives: This is another important step in which we key out the various

alternatives to solve out the various risks, the various alternatives are implementing good strategic plan, develop appraisal and planning system. Implement strategies: In this step, we will choose best alternative that ultimately proves to be

beneficial for the organization to cope up with the contingencies. A good strategic plan is the best alternative that furnishes the information regarding the different elements of the strategic management. Corrective actions or feedback: In this step, we will assess the actual and standard results in

order to key out the difference, so that it will be easy to take corrective actions accordingly. Thus, concludes that through applying this risk plan, the management can easily monitor and control risks in the effective way and increase the chances of achieving success.

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Conclusion Kathy Kudler opportunities only limited by her imagination and Kudler Fine Foods can improve their practices and develop new enterprises with strategies, which help customers save time during shopping. Kudler Fine Foods must ensure that its operational strategy, will involve increasing their customer service base this will increase their profits. This will include using technology and continuing external and internal scans to ensure that customer satisfaction are in the following improved delivery on goods and services, planning events, providing information, and automated processes.

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Reference Bacon, D. (2008) Problem Statement Kudler Fine Foods. Pearce, J.A., & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York: McGraw-Hill/Irwin. Portny, S.E. (2006). Project management for dummies. (2nd ed.). For Dummies. Shim, J. K. & Siegel, J. G. (2000). Financial Management (2nd ed.). Barron's Educational Series. University of Phoenix. (2007). Kudler Fine Foods. Retrieved from University of Phoenix, STR 581 website. Wilson, R. M. S. & Gilligan, C. (2005). Strategic Marketing Management: Planning Implementation and Control (3rd ed.). Burlington Ma: Butterworth-Heinemann.