UNIVERSITY OF PHOENIX
Problem Statement
Kudler Fine Foods
MGT521
10/22/08
Problem Statement: Kudler Fine Foods
Situation description
Kudler Fine Foods (KFF) is a premier gourmet grocery store with obligations to its employees and loyal customers to remain competitive in the field and to keep the quality of the produce and wine at the highest level. KFF offers a wide variety of organic produce grown locally as well as a wide selection of local and imported wines. The scope of the offered inventory is unmatched in the area. The KFF is very customer oriented and strives to provide an attentive and friendly service. Subsequently, many customers become loyal to the store and keep coming back every 8-10 days. Recently, with the sales of La Jolla location going well and producing enough cash flow, the need to open additional locations has risen (Kudler Fine Foods Strategic Plan, 2003). But as Sherman (1997) observed, business expansion also presents the small business owner with myriad issues that have to be addressed: "Growth causes a variety of changes, all of which present different managerial, legal, and financial challenges. Growth means that new employees will be hired who will be looking to the top management of the company for leadership. Growth means that the company's management will become less and less centralized, and this may raise the levels of internal politics, protectionism, and dissension over what goals and projects the company should pursue. Growth means that market share will expand, calling for new strategies for dealing with larger competitors. Growth also means that additional capital will be required, creating new responsibilities to shareholders, investors, and institutional lenders” (p. 4). Given these ...