Kudler Foods

Abstract

The essential point of this paper is to discuss one’s exploration of Kudler’s Fine Foods, a virtual organization on Week One reSourceSM course page. Kudler is a highly successful company that has managed to expand its operation from one location to three locations in less than four years (La Jolla, Del Mar, and Encinitas). The company specializes in gourmet foods, fine wines, and cheeses. This paper will underline Kudler’s management, and explain how technology and the Internet are used and have impacted the organization. From Kudler’s revision, this paper will also identify examples of the five forces of Porter’s Model.

Overview of Management - Kudler's Fine Foods

“Successful organizations know how to manage people and resources efficiently to accomplish organizational goals in tune with changes in the external environment, such as those brought about by technology, legislation, and competitors.”

- Gomez and Balkin

According to Gomez and Balkin (2002), the management process involves planning, organizing, leading and controlling. Planning is setting future objectives and mapping out activities necessary for achieving those objectives. Organizing is specifying how the organization’s human, physical, informational, and technical resources are allocated and how tasks are performed to achieve the desired goals. Leading is motivating people to contribute their best individually and cooperating with others. Controlling is measuring performance, comparing it to the objectives, implementing the necessary changes, and monitoring progress.

Porter’s Model of Five Competitive Forces

There are five competitive forces in Porter’s model: power of buyers; power of suppliers; new competition; substitutability; and existing rivalries (Balkin, 2002).

Kudler is constantly monitoring the bargaining power of its buyers, trying to provide the food items that will ensure their continued patronage. Kudler also takes a proactive role in determining what their customer’s want. She also helps her customers take advantage of additional buying opportunities through gourmet food parties. Kudler also encourages customer shopping trips and improves loyalty by introducing a frequent shopper program. Additionally, as Kudler’s increases its customer base and loyalty factors, so will the loyalties of their suppliers, allowing for greater discounts and specials, which Kudler can turn into special events. The greater the volume purchased from a supplier, the more leverage Kudler will have over that supplier.

Through the frequent shopper program, Kudler should also be able to secure her customers against being lost to a competitor, whether new or existing. Additionally, Kudler’s marketing programs to reduce costs and increase