Overview of Management
Introduction Kudler Fine Foods (KFF), opened in 1998, is “committed to providing their customers with the finest selection of the very best foods and wines so that your culinary visions can come true” (Kudler Fine Foods, 2007). Kathy Kudler, President and Founder, “vision was to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want” (Kudler Fine Foods, 2007). She was certain that her company would be a great success if she combined the convenience of a one-stop shop with reasonable pricing. The purpose of this paper is to examine the primary management functions and its relation to KFF by describing who is responsible for each
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Technology and the Internet Technology and the Internet are used by KFF in a variety of fashions. In reference to technology, it enables each of the store locations to connect resources together in providing a single interface for information. KFF’s database serves as a focal point for information, such as inventory stock used in managing inventory and determining the availability of ingredients for prepared items. The Internet is used as a central repository of company information in describing what services they offer and each of the products rendered. In addition, via the Internet, they also denote store location and hours of operations to customers. Technology and the Internet provide a means for management to carry the mission and expand current business operations. Management would not be able to collaborate virtually together, acquire new business outside geographical location, or carry out daily tasks without too much of unnecessary overhead without the capability of technology and the Internet.
Porter’s Five Forces Model One of the most famous frameworks for analyzing competiveness is Porter’s Five Forces model. This model consists of measuring the threat of entry of new competitors, bargaining power of suppliers, bargaining power of customers, measuring the threat of substitution products or services, and determining rivalry among existing firms in the industry (Potter, Rainer & Turban, 2003). This example of KFF that
Competitive environments are defined by the identity, track record, financial strength and market share of key competitors. Harvard Professor Michael Porter 's Five Forces model can be used to evaluate a company 's competitive position. These five forces are barriers to entry (the ability of new players to enter the market), buyer power (the ability of customers to influence price),
Porter’s five forces model seeks to portray how attractive an industry is in relation to the five competitive forces which includes, threat of substitutes, threat of entry, bargaining power of customers, intensity of competitive rivalry and bargaining power of suppliers.
The competition has been analyzed by using Porter’s Five Forces Model. By gathering an analysis of the threats that can come from competitive rivalry, potential new entrants, bargaining power of buyers, bargaining power of suppliers, and substitutes, Company G can be better compared to its competitors.
Kudler 's Fine Foods has been in business for over 15 years. Staying in business in this economy is impressive. Kudler’s has done everything necessary to grow and continue to be a productive company in the last 15 years. The products and merchandise that Kudler’s sells are perishable food and wine products that continually need to be monitored and inventoried to make sure that the product is always fresh. Kudler 's stakeholders are the staff, customers, suppliers, banks and the owner herself.
The Five Forces Model as defined by Dr. Michael Porter of Harvard University uses five different strategic factors to explain Competitive Rivalry a company or industry faces. The fiver forces that comprise the model are Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitute Products, Potential Entrants and Completive Rivalry (Porter, 2008). The intent of this analysis is to rank-order each of these five factors from the standpoint of their influence on Target Corporation (NYSE:TGT) and their competitive position in the retailing industry. Each of the five forces are rank-ordered in terms of their importance to Target.
The Kudler Fine Foods is located in the metropolitan area of the San Diego. It is a local upscale specialty food store. The very best imported and domestic foodstuffs are stocked in all the stores of this company. The Kudler Fine Foods has five departments, namely: Fresh Produce, Fresh Bakery and Pastries, Condiments and Packaged Foods, Fresh Meat & Seafood and Cheese's and Specialty Dairy Products. The founder of this company is Kathy Kudler. She got the idea of an upscale epicurean food shop while she was buying grocery for gourmet cooking. The first Kudler Fine Foods was opened in the year 1998. It has now become a virtual organization. This essay is purposed to change the management within the accounting department of this company. The dimensions of the suggested change process, its advantages and benefits for both the company and its employees are discussed.
According to Porter’s competitive forces model, exist five major forces, which managers should analyze, and strategies developed for the company to increase their competitive edge. They are the threat of entry of new competitors and of substitute products or services, the bargaining power of suppliers and customers (buyers), and the rivalry among existing firms in the industry.
The Five Forces model revealed a highly dominated industry by two major competitors. Incumbents are forced to find new ways of improving their products and services but at the same time maintain high levels of efficiency. Rivals have been forced to accept takeovers and mergers so as to remain a player in the industry. New
Michael Porter’s Five Forces is a tool with which to analyse competitors in industry by analysing five factors.
Porter’s Five Forces Model of Industry Competition is “A tool for examining the industry-level competitive environment, especially the ability of firms in that industry to set prices and minimize costs.” (Dess et al., p.55). The five forces are threat of new entrants, buyer bargaining power, supplier bargaining power, threat of substitute products and intensity of competition. All of these forces affect CCR differently (refer to figure 2).
Rivalry among existing competitors takes on many forms, including price discounting, new product introductions, advertising campaigns, and service improvements (Porter, 2008). The intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another and limit each other’s profit potential. If rivalry
Porter’s five forces model helps companies develop competitive strategies. By using this tool, they will have an overview of what is happening and what will be happening in a business. This is a helpful tool because this involves different factors contributing to the business such as competitors, substitutes, buyers and suppliers.
Rivalry among existing firms is the frequently the major influence on the competitiveness of the industry. A high intensity of existing rivalry is usually decreasing the profit margin.
The competitive environment influences the performance of businesses and from a competitive industry perspective; Porter’s model defines whether the industry is attractive or unattractive. In an attractive industry, the threat of entrants, threat of substitute products and intensity of rivalry among existing firms are low. Additionally, the bargaining power of buyers and suppliers are also low and weak. On the other hand, in an unattractive industry the five forces are high and
The Five Forces Model helps determine the relative attractiveness of an industry and includes: Buyer Power, Supplier Power, and Threat of substitute products or services, Treat of new entrants, and Rivalry among existing competitors.