Kudler Fine Foods – External and Internal Analysis Paper
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External and Internal Environmental Analysis Paper
University of Phoenix
Strategic Planning and Implementation
STR/581
Dr. Ronald Morritt
January 16, 2011
External and Internal Environmental Analysis Paper
In the year 1998 Kathy Kudler established a gourmet specialty food store in the area of San Diego. The first store opened in La Jolla and has Kathy Kudler has opened two more stores, one in the city of Del Mar and the other in the city of Encinitas. Kudler Fine Foods needs to optimize its methods of delivering quality products and services to their customers. The external and internal environmental analysis will provide a SWOT analysis to explore the opportunities of expansions and provide a strategy to improve sales with an assessment of the company.
Strengths
Small business- management of the store activities daily.
No direct competition- currently there are no direct competitors in the area.
Variety of choices for consumers- organic produces that offered in other grocery stores.
Customers-oriented and customer retention- owner interaction with customers and staff makes special order for repeated customers and new customers.
Good store location- serve customers living in high income areas
Weakness
Perishable goods- 12% waste of perishable food items
High pay-roll specialty shop- difficulty finding new personnel for new stores
High responsibilities and low management- no substitutes or replacement staff to place orders or deal with business issues
Del Mar location is not doing well – town too small to support store
Geographic expansion limitation – difficult for owner to travel from store to store and maintain inventory
Opportunities
Geographic expansion- opportunity to develop potential areas for expansion of new stores
Expand catering business – opportunity to bring products to new customers with catered events
Expansion of product line – order special products for customers and catered events
Expand service via internet- opportunity to offer products to other customers on West Coast area and increase customers data base
Threats
1. Competition – other specialty gourmet stores could open in the area with similar prices
2. Economy – could change and potential risk of losing customers
3. Perishable Good – rotation of goods every two days, if not purchased
External