1. Kulder Fine Food has open two successful stores. A flag ship store, located in La Jolla and another store in Del Mar. Then she quickly lunched a third store in Carlsbad. Problem: She has opened three stores in five (5) years, not allowing each store to grow to its full potential. Solution: She needs to close the store down which will save her, instantly, over $300, 000 in cash. She could offer an order by phone or Internet service for those within the Carlsbad community to order some of her products from to be delivered. With this type of service she would be the first store to introduce it, it saves money and labor resources, and she will not have to worry about to many perishable items.
2. Because Kulder Fine Foods has three stores Kathy, the president of the store, has employed several people to hire workers for her. Problem: to many workers employed when one person can handle the job. Solution: Eliminate all jobs that are not necessary for the business to function. I by eliminating the following position and people, Kathy can save over $250,000 in cash: (Accounting clerk; Phillip $24,500, Computer Specialist; Matthew $37,000, Purchasing Assistant $33,000, Assistant Managers; Lorrine, $54,050, Craig $51,000, Anh $51,000).
If Kathy choose to simply to down size and terminate unnecessary manager positions she could potential save herself over $500,000 in addition to opening up to another untapped market; which is: online sales and phone delivery. As a manager and President of the company her position is to cut cost, develop the business, and increase sales. If she doesn’t make any changes quickly, she could loose all the stores because of poor debt....