Kudler Fine Foods - External and Internal Analysis Paper

External and Internal Environmental Analysis Paper

University of Phoenix

Strategic Planning and Implementation

STR/581

Dr. Ronald Morritt

January 16, 2011

External and Internal Environmental Analysis Paper

In the year 1998 Kathy Kudler established a gourmet specialty food store in the area of San Diego. The first store opened in La Jolla and has Kathy Kudler has opened two more stores, one in the city of Del Mar and the other in the city of Encinitas. Kudler Fine Foods needs to optimize its methods of delivering quality products and services to their customers. The external and internal environmental analysis will provide a SWOT analysis to explore the opportunities of expansions and provide a strategy to improve sales with an assessment of the company.

SWOT

Strengths

1. Small business- management of the store activities daily.

2. No direct competition- currently there are no direct competitors in the area.

3. Variety of choices for consumers- organic produces that offered in other grocery stores.

4. Customers-oriented and customer retention- owner interaction with customers and staff makes special order for repeated customers and new customers.

5. Good store location- serve customers living in high income areas

Weakness

1. Perishable goods- 12% waste of perishable food items

2. High pay-roll specialty shop- difficulty finding new personnel for new stores

3. High responsibilities and low management- no substitutes or replacement staff to place orders or deal with business issues

4. Del Mar location is not doing well - town too small to support store

5. Geographic expansion limitation - difficult for owner to travel from store to store and maintain inventory

Opportunities

1. Geographic expansion- opportunity to develop potential areas for expansion of new stores

2. Expand catering business - opportunity to bring products to new customers with catered events

3. Expansion of product line - order special products for customers and catered events

4. Expand service via internet- opportunity to offer products to other customers on West Coast area and increase customers data base

Threats

1. Competition - other specialty gourmet stores could open in the area with similar prices

2. Economy - could change and potential risk of losing customers

3. Perishable Good - rotation of goods every two days, if not purchased

External