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Problem Statement Paper

1193 words - 5 pages


Kudler Fine Food’s dilemma
Sean Tao
University of Phoenix
Professor Diane Hunt-Wagner
MGT 521

Kudler Fine Food’s dilemma

Small businesses are the backbone of the US economy . They account for about 50% of the economy (Kobe, 2007). It is small business owner’s entrepreneurial spirit that propels the economy of a developed country. Their uncanny ability to adapt to economic situation is important to the survival of their business. Their dedication to their business and its surrounding community makes the very fabric of a strong economy as well. Big businesses tend to forget these important principles. For the past years, Kudler Fine Food ...view middle of the document...

This makes a competitive difference for Kudler. Kathy also handles all human resources operations such as hiring and firing. These two activities take her away from what she likes the most: To be in front of her customers. Meanwhile’s Kudler’s sales and marketing efforts are limited to placing a printed flyer in local newspaper during peak season, twice a year Easter and Thanksgiving/Christmas month, and some in store distribution of flyers promoting catering. Each location does get good repeat business. It is known that most customers come back after seven to ten days. For the company’s finances, Kathy is looking to hire someone with a finance background to help her out. Basically, Kathy is spread too thin and has very limited time to focus on growing her business the right way. She is too busy putting out fires that she does not have the time at what she does best to interact with customers and build new clientele.

The strategy report pinpoints several problems such as limited time for Kathy to take care of her customers. If she has more time with her customers, she can start promoting her catering services even more. With close to 11 millions worth of sales, positive cash flow and no debt, KFF looks financially healthy on paper. It’s weighing heavily on the owner’s time schedule. In the strategic plan, there is plan to implement an inventory and ordering system. Her current IT infrastructure is obsolete and it is in dire need of using more up to date technology such as web-based service such as Netsuite. The advantage of using a web base service is that it does not need any capital investment upfront. This service is a pay-as-you-go service or, also called, SaaS (Software as a Service). This technology will free Kathy up in her procurement effort and it will allow her to run other operations. It would be recommended to use a web-based version such to help her connect with her suppliers. More over she can reconcile her inventory against her sales in a few seconds. This way, she can also place order from a central location within minutes. The web-based ERP system also enables KFF to add financial modules so the newly hired financial person can take over the financials of KFF. The income statement shows close to $700,000.00 of credit card fees. The intelligent business software should be able to tell the finance controller that if this is excessive or not. For marketing, Kathy can start meeting with key business...

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