Kudler Fine Foods – Problem Statement

Kudler fine foods – problem statement
In 1998 Kathy Kudler opened her own gourmet food store and her dream became true. She came to this idea, when she found that her neighborhood did not have a wide selection of products to satisfy her passion for gourmet foods. The vision of Kudler Fine Foods (KFF) is to become “the premiere gourmet store for those savvy shoppers who are searching for the finest meats, produce, cheeses, and wine”. The first store is opened in La Jolla, California. Two years later Kathy Kudler opened a second store in Del Mar, Ca. and in early 2003, as part of her expansion plan, she opened a third one in Encinitas.
The strong factors backing KFF to remain stable in this present economic situation are as follows: specialty product line, repeat customers, good cash flow, rapid growth, small organization, no outside investors
While the stores continue to grow and produce enough cash flow, Kathy Kudler thinks to expand her gourmet food chain as well as the services and the product line. But the declining economy and certain issues that holing its potential growth can be critical for KFF. Adding more stores and products to already existing requires critical thinking, in order to determine the right course of action. While it may have the above strengths, Kudler Fine Foods does not display the same excellence in planning, financial control and human resources. Some of the issues that can be identified in KFF strategic plan are: dealing with perishable goods, high payroll costs, lack of financial understanding, potential competition, small management team with lots of responsibilities and need of qualified people for special positions. But the largest issue that this paper will focus is the lack of delegation of duties and the human resource management provided by the company president.
“Today the job of human resource management has taken on an entirely new role in the firm. In the future it may become the most critical function, in that it will be...