There are many factors that affect the success or failure of an organization. One is the strength of management within the organization. A manager that incorporates the primary functions of management is one who will be successful. Another factor is the company’s response to competition. With such strong competition in virtually every industry of business, a company must have a strategic plan that is carried out by organization leaders that demonstrate strong management. A manager that can incorporate Porter’s Five-Force Model is one that recognizes the threats to the company’s profitability and ultimate position in the industry. This paper will explore the
management functions of Kudler Fine foods using the Porter’s Five-Forces Model. This paper will also exam the use of technology and the internet and how it affects management.
Kudler Fine Foods is a gourmet foods shop founded by Kathy Kudler, a woman who was tired of having to travel all over town to get fresh ingredients for simple meals. She decided to open a one-stop shop where people could buy a wide variety of the freshest foods as well as the necessary tools to prepare the meals. Kudler Fine Foods is divided into the following departments: fresh bakery and pastries, fresh produce, fresh meat and seafood, condiments and packaged foods and cheeses and specialty dairy products. There are three locations in San Diego metropolitan area (Kudler Fine Foods, 2007).
There are four management functions: planning and strategizing, organizing, leading and controlling, and decision-making (Gomez-Mejia & Balkin, 2002) . Planning and strategizing work synonymously to help the different areas of an organization identify and set goals for the future of the organization with its strengths and weaknesses in mind. Upper management would probably share this function. Planning also allows the organization to develop strategies for achieving those goals based on the mission of the organization. In the Kudler Fine Foods company, this would include the president, Kathy, and the store managers, Kent Vesper, Juanita Lopez, and Laurie Priest. Organizing involves specifying how the firm’s human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to reach the desired objectives. Harvey Stephens, Director of Finance and accounting along with Yvonne Reynolds, Director of Store operations and Brenda Wagner, Director of Administration and Human Resources would be responsible for determining how the resources in the company should be distributed the most efficiently and effectively. Managers organize by defining roles of members, delegating tasks, policing and dividing resources, clarifying procedures and prioritizing. Leading is energizing and motivating team members to work productively and contribute their best. At all levels of management this is a necessary function. Kathy’s positive attitude and energy will rub of on her store managers. The store managers will then pass on their excitement to their assistants and it will further trickle down to the other employees in the stores. This causes a boost in the confidence of team members and fosters a work environment that is open and accepting of difference people and their backgrounds and ideas. Further, customer service will be maximized if the employees are happy. Controlling consists of measuring performance, comparing it to objectives, implementing necessary changes, and monitoring progress. Controlling also consists of obtaining feedback or pointing out potential problems and taking action to correct the problems.
Kudler Fine Foods utilizes the internet to relay information to customers as well as to attract customers. The Kudler Fine Foods has basic information about the different locations, with address and phone number and a map to the location. In addition, there are pictures with descriptions of the products available. Going a step further, the Kudler
Fine Foods website also offers customers incentives to come into the store and demonstrates the commitment of the company to quality and customer service. The website is a strategy that management can utilize to differentiate their product for the competition. Management also has databases in which they input information about customers, inventory, orders, store locations, venders, taxes rates, and payment records. Email allows managers to keep in communication.
As mentioned earlier Kudler Fine Foods, like many other companies, has to contend with threats that influence their position in the industry. Porter’s Five Forces model analyzes competitiveness and strategic planning to increase a company’s competitive advantage. According to this model there are 5 major forces that influence a company’s success or failure in an industry. They are the threat of entry of new competitors, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the rivalry among existing firms ( Turban, Rainer, et al, 2003). All of those factors have forced Kudler Fine Foods to step up their game. They have to improve their quality and services in order to make their products more desirable than those of their competitors. To do this Kudler Fine Foods offers gourmet foods at competitive prices, offers satisfaction guarantee, takes special requests, offers food and wine sampling, and is committed to getting the products in the store that their customers want. Kudler Fine Foods has lucrative business terms with their suppliers to ensure a variety of quality products at a good price.
Achieving the mission of Kudler Fine Foods and ultimately obtaining success and profit in the industry is the goal. The type of management within the company will lead to the fulfillment of these goals. Kudler Fine Foods like every other company has to compete with others in the industry. Incorporating Porter’s Five-Forces Model can facilitate the success of company.
Gomez-Mejia, L & Balkin, D (2002). Management. 1e, Ch. 1 & 16. New York:
Kudler Fine Foods (2007). Retrieved June 2, 2008 from
Turban, E, Rainer, R.K., & Potter, R. (2003). Introduction to information
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