Mba 502
Essay Preview: Mba 502
Report this essay
Introduction
In the world today, consumers have abundant choices to make on a daily basis and many consumers make these decisions based on the price and quality of each product. Recently, Kudler Fine Foods (KFF) has decided to restructure its strategy for the next 5 years based on the consumer’s needs and wants. KFF has moved in the direction of organic produce that will become a big success if KFF incorporates the catering and cooking classes with the organic produce selection. In order to succeed in a world driven by global interaction KFF will need to pursue a venture (better website and technical devices) that will cost a great deal of money to set-up but in the end, it should produce results of more clientele. KFF has to venture into a new and foreign territory of technology quickly. For instance, the question of how new technology creates business opportunities, which strategies to use and how to incorporate them into a particular business.
Rethinking Technology
In recent years, most businesses have restructured their organizations to fit into the current times. These changes have reduced error rates, faster turn around on customer orders, quicker time to market for new products and other improvements in performance. In order to carry out the changes the companies usually use computers and other electronic devices in order to minimize redundant tasks. KFF has the opportunity to profile the business in the global market. Changes in technology would allow KFF to gain a great deal of knowledge in the specialty food market. Overall, KFF has the opportunity to increase awareness to its all consumers, reduce tedious tasks, and in turn increase profit.
Kudler Fine Foods has an internet site that is very easy to follow but does not list the most important elements that KFF has just incorporated into the company. The consumers need a well adverse website that will answer the simplest question at one o’clock in the morning. Having a website that has information about the essential products and services offered will bring the awareness of the company to many people globally. Edible Arrangements is one such company that allows the consumers to be well adverse on the products offered. Edible Arrangements allows a consumer to shop around the site based on the occasion and then personalize the gift so that the consumer can set the right mood for that special someone. The website also allows a person to place many orders in advance so that he or she does not forget that special occasion. Edible Arrangements give the assurance that the product will be delivered in a fresh arrangement at the right time. KFF needs to have the ability to have a fast and convenient website that will allow anyone to set up a catering job after hours or shop around so that when he or she gets to the store the products will be ready for payment and pick-up.
When it comes to a website provided to the managers and employees, KFF has one of the best intranets with so much information. Since KFF has the opportunity to rebuild the technology then KFF should strive harder to lessening the time that Kathy and the managers spend on reordering, paperwork and other tedious tasks. Changing this area will only save time and money.
Another area that will help KFF in the future, will be the use of the internet. The internet provides abundant amount of information that will help KFF stay competitive. Research indicates that the percentage of companies using IT to support competitive intelligence increased from 31% in 1993 to about 50% in 1999 (Turban, Potter & Rainer, 2003). This increase is due primarily to the use of the Internet (Turban, Potter & Rainer, 2003). The Internet allows anyone involved in any organization to gather information on the current products and trends. This information can help put KFF at the forefront of the competition, especially if KFF redevelops the ideas to fit the company’s goals.
Generic Strategy
Porter’s competitive forces model is a valuable asset that allows a company to analyze competitiveness. Gaining and retaining a competitive and strategic advantage requires a company to develop a proper strategy. A company needs to develop a strategy of performing activities differently from its competitors (Turban, Potter & Rainer, 2003). Michael Porter has argued that a firms strengths ultimately fall into cost advantage or differentiation (QuickMBA, 2007). The types of generic strategy that will be addressed are, cost leadership, differentiation and focus. Kudler Fine Foods has continued to a use a combination of the generic strategies.
KFF has in a sense attempted to achieve an advantage by employing a focus strategy, differentiation strategy of organic products and a cost leadership strategy that provides better pricing and quality by concentrating on the organic segment of the produce industry. KFF offers products and services that have unique attributes such as organic produce, cooking classes and catering services that incorporate the products sold within the store. KFF’s mission is to provide products and services that set them apart from the competitors. The organization has attempted to achieve a cost advantage strategy by entering into contracts with local organic farmers. KFF can also achieve a cost advantage strategy by using a break-even analysis for the first year of the catering and cooking services. By employing the right methods, KFF can have a better advantage on pricing and quality within these services so that the consumers can get a taste of marvelous. “A firm using a focus strategy often enjoys a high degree of customer loyalty, and this entrenched loyalty discourages other firms from competing directly” (QuickMBA, 2007). The focus strategy provides a building block for KFF to differentiate itself from other competitors. KFF has narrowed its relevance to organic produce within a gourmet product store. Having such a wide selection of products that are hard to find in one store has helped to bring KFF to become so successful. In order to continue the growth KFF will have to provide more services that will cater to a variety of different consumer’s needs or wants.
Implementation of Tactics
“Tactics are parts of a strategy that organizations execute in order to realize a goal. To implement formulated strategies successfully, firms need to consider organizational structure and controls, cooperative strategies, functional strategies, strategic leadership, and corporate entrepreneurship and innovation” (Balkin & Gomez-Mejia, 2002, p 160). KFF tactics have already included a Kudler