Kudler Fine Foods Virtual Organization Essay
Kudler Fine Foods is an upscale specialty food store touting the very best domestic and imported products in the San Diego metropolitan area. To understand the success of the organization this paper will show the primary functions of management and who is responsible for each function at Kudler. In this paper the subject to describe is how Kudler’s management uses the Internet and technology in daily processes for greater success. Finally, the paper will cite an example from Kudler of each of the five forces from Porter’s model.
According to Gomez-Mejia and Balkin (2002) the four management functions are planning and strategizing, organizing, leading/controlling, and decision making. Senior …show more content…
The five major forces in Porters model are the threat of entry of new competitors, bargaining power of suppliers, bargaining power of customers, the threat of substitute products or services, and rivalry among existing firms in the industry. Though Kudler does not have any direct competitive threats, there are several competitors in the area that threaten sales of specific departments such as Jonathan’s Market who specializes in fine wines and Harvest Ranch Market that features organic foods, wines, and a deli. Kudler is at the mercy of the bargaining power of suppliers because the store features unique and hard-to-find items meaning if the supply is low the price will go up and the store has no control over price on some of its items. Because the store is in a specialty market, and there are other stores that carry the products, this can put the customer in a position to be more demanding on price by shopping the competition for a better bargain. The threat of substitute products or services comes mostly from Internet shoppers. According to the Kudler Fine Foods (2009) website, “most of the more well-established gourmet food stores have launched very extensive websites that not only let local customers know what is going on, but also allow for people outside the driving area to purchase product direct” (Strategic Plan, p. 15). The previous fact also is an example of rivalry among existing firms in the industry.