Functional Area Interrelationships - Kudler Fine Foods

Functional Area Interrelationships - Kudler Fine Foods

Kudler Fine Foods is an upscale grocery store specializing in gourmet foods, wines, and other culinary necessities. Kudler Fine Foods has a unique concept and approach to collaboration and for this reason has experienced success in all three of its stores. Kudler Fine Foods has created a solid mission statement, organizational structure, and cooperative methods, to form practical area interrelationships within the company. In this paper Team C will analyze Kudlers' mission, vision, values, and goals as it pertains to its organizational structure. Team C will identify the steps in the collaboration process among functional areas and provide an example of the use of lateral and vertical collaboration within the Kudler organization. Finally, Team C will identify the key stakeholders and their roles in the success of the organization.

Reason for Organization's Existence

Kudler Fine Foods' understands its customers desire to maintain a healthy lifestyle while still trying to live within their budgets. Kudler's Fine Foods' provides an extensive collection of domestic wines and spirits to meet any budget. Kudler's is proud of its wine selection and does not want its customers to be intimidated. As such Kudler's boasts a wine steward at each of its locations to help customers make the right selection. The company also offers monthly wine appreciation classes so its customers can learn the nuances of its wines. In addition to wines and spirits, Kudler's has its own European style bakery in each of its locations. Kudler's makes its bread and pastries from only the finest ingredients using old world recipes. Kudler's also offers fresh meat and seafood products that are prepared to order as well as more than 350 organic and non-organic fresh fruits, vegetables, herbs, and spices for cooking connoisseurs. Kudler's has an Asian Specialty Produce department in which it carries the specific herbs and spices necessary to Asian cooking.

Kudler's mission is to offer each of its customers a delightful and pleasing shopping experience. Although Kudler's offers an extensive selection of wines and spirits, artisan pastries, fresh meat and seafood, and both organic and non-organic fruits and vegetables, it is vital that Kudlers' understands what its customers' desire.

Organizational Structure and Key Positions

As a small business and privately owned company, Kudler Fine Foods' organizational chart originates from the founder and President Kathy Kudler. Three department heads report directly to the president, Brenda Wagner, Director of Administration and Human Resources, Harvey Stephan, Director of Finance and Accounting, and Yvonne Reynolds, Director of Store Operations. In addition, three store managers from the three locations also report directly to the president (Kudler Fine Foods 2013). Each department head has a span of control of at least three subordinates, which is ideal because it is "(1) narrow enough to permit managers to maintain control over subordinates but (2) not so narrow that it leads to overcontrol and an excessive number of managers" (Bateman, Snell, 2011, pg. 283).

This structure illustrates the differentiation of the organization allowing each department to concentrate on its specified competencies and operate independently, but through integration, coordinated through the president, each department still works to achieve the company's stated strategic objectives (Bateman, Snell, 2011, pg. 277-278).

Although Kudler Fine Foods's long-term strategic objective is sustainability, profitability, and growth as a company, each department is responsible for certain strategic objectives. Brenda Wagner as Director of Human Resources will make strategic decisions with the strategic objective of employee development and employee relations while Harvey Stephan, Director of Finance and Accounting is responsible for ensuring finances and resources are in place to give the company the best competitive edge. The store managers are responsible for the strategic objective of productivity, and competitive position through store sales, and finally Yvonne Reynolds as Director of Store Operations is responsible for public responsibility, productivity, and technology (Pearce, Robinson 2009, pg.199-200). As a small yet growing business, communication between the different departments and to the President, is crucial as strategic decisions are adjusted to ensure the company is achieving its strategic objectives.

Collaboration Process

By definition collaboration is a joint effort of multiple individuals or work groups to accomplish a task or project (TechTarget, 2005). Leadership and organizational structure matter in building a collaborative culture, but organizations such as Kudler Fine Foods still need the right people with the right skills to lead collaboration initiatives toward the desired outcomes (Lash, 2012). Kudler leaders must possess a strong understanding of the organization and its overarching business strategy. In addition to an enterprise perspective, Kudler leadership must also possess a cross-functional perspective to align competing priorities as well as a customer perspective to help them understand the needs and desires of Kudlers' customers.

The collaboration process consists of stages and processes, which build off one another to create the final result. Having a shared vision is important in the collaboration process as is building a foundation of trust and mutual respect. Within the collaboration process parties must identify the right type of collaboration (e.g. lateral versus vertical collaboration).

Lateral and Vertical Collaboration

Lateral collaboration occurs when peers or groups at a similar level collaborate to meet a common goal. One such example is when the three department managers coordinate on purchasing as there is no true purchasing department.