Kudler Fine Foods Management and Porter's Forces

Kudler Fine Foods Management and Porter's Forces

MBA 502

University of Phoenix Online

Kudler Fine Foods Management and Porter's Forces

Kathy Kudler enjoyed the joy of creating her own gourmet meals. She did not enjoy the time and effort that it took in obtaining the fine food ingredients by shopping throughout the town. Kathy decided to create Kudler's Fine Foods in response to her frustration of searching high and low to find the rare ingredients for gourmet meals.

The management style and function will be discussed. Kathy's background of working with the government relate to her style of managing her business. The use of information technology will also be discussed. The company has used Michael Porter's Five Forces Model to help the company in the marketplace.

Management style and function

Kathy Kudler was VP of Marketing for a large defense contractor. Her management style is similar to that of large government operations. Kathy appears to employ the Administrative Management, employing Henri Fayol's principles 14 principles:

1) Division of work - Work should be divided into specialized tasks with responsibility for each task assigned to specific individuals.

2) Authority - Authority should be delegated along with responsibility.

3) Discipline - Clarify expectations and provide consequences for not meeting them.

4) Unity of command - Each employee should report directly to one supervisor.

5) Unity of direction - The organization's objectives should be the focus of the employees' work.

6) Subordination of individual interest to the general interest - The organization's interest should take precedence over individual interests.

7) Remuneration - Efforts that support the organization's objectives should be compensated.

8) Centralization - Superior and subordinate roles should be determined and their relative importance clarified.

9) Scalar Chain - Communications among organizational ar3eas should follow the chain of command.

10) Order - The organization of materials and jobs should support the goals of the organization.

11) Equity - Treat all employees the same, with justice and respect.

12) Stability and tenure - Employee loyalty and continuing service should be encouraged.

13) Initiative - Individual initiative of employees that supports the organization's objectives should be encouraged.

14) Esprit de corps - Employees and management should be encouraged to share the goal of achieving the organization's objectives.

(Gomez, Mejia, Balkin, 2002). Every step of the process is monitored, measured and a made an accounting. The company is well organized to carry out its various tasks.

Kathy has employed Harvey Stephens as Director of Finance and Accounting and Yvonne Reynolds as Director of Store Operations along with Brenda Wagner as Director of Human Resources. These four individuals comprise the administrative team. The next level of management is the three store managers. Kent Vespar is over the La Jolla store, Laurie Priest is over the Dell Mar store and Juanita Lopez is over the Encinitas Store. Raj Slentz is the Assistant Store manager of the La Jolla store and has Glen Edelman as cashier and Eric McMullen as bagger. In the Dell Mar store, Craig Drohos is the Assistant Store Manager along with Elaine Meier as cashier, Ledonna Avery and Thomas Tyink as Assistant Bakery/Pastery, Stanley Quillian as the Assistant Butcher/Seafood specialist and Brent Vance as the bagger. In the Encinitas store, Erin Broun as bagger, Donald Carpenter as stocker, David Esquivez as Assistant Butcher/Seafood specialist and Nancy Sharp as Cashier. Job descriptions are clearly defined along with the company's vision and values. The employees receive an annual review to determine their effectiveness and receive an increase of wage which is left up to the discrepancy of the supervisor. The company also has a compensation program for the marketing team that may receive up to 7%. To help retain the employees, Kathy has put together a benefit programs include health care insurance, 401(k) Savings Plan, Holidays and Vacation Benefits.

Information and technology

Technology started with a Retail Enterprise Management System (REMS). This is an information management system where all the company's records are kept, orders are made, and customer information and other company information are stored. The company has chosen to enter its information into a large database system. This allows the company to perform data mining to help the company plan different marketing strategies (Gomez, Mejia, Balkin, 2002). Having the relevant information at the employees' hands have allowed some employees to notify customers when their favorite foods have come arrived at the store. This has increased the customer satisfaction to some stores. The company has also used information software to train employees and can keep better records of training.

Employing Porter's five forces

Kathy Kudler has strived to employ Michael Porter's five forces, the bargaining power of the customers, the bargaining power of the supplier, the threat of new entrants, the threat of substitute products and competitive rivalry within the industry (Wikipedia, The Free Encyclopedia, 2007, January 17). Some examples of how these forces are being employed are described below.

The bargaining power of the customer is being employed by the company by having in-store parties and helping the customer to prepare the fine foods purchased from Kudler's. The parties will feature world renowned chefs to help customer's perpare gourmet meals. Other celebrities and food experts will also attend to promote the stores. Newsletters and in-store coupons will also be mailed to high-income areas.

The bargaining power of the suppliers is being exploited by partnering with large suppliers. By partnering, the Kudler's will be able to reduce the company's cost. The supplier can also rely on Kudler's to be their exclusive customer.

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