Create a Problem Statement
Kudler Fine Foods is a high-end grocery store established by Kathy Kudler in 1998. Positive reactions and outcomes from the first store in La Jolla, California gave Kathy the confidence to search out other market areas and open two more stores. However, some results detailed in the 2003 Strategic Plan for Kudler Fine Foods details areas in which the company must alter to increase success. One problem the store is faced with is that the majority of the goods sold are perishable items that are rotated out quickly. Because of the high standards set by Kathy approximately 12% of these items are rotated out every two to three days. (University of Phoenix, 2003). Those items that are still of good quality are donated to local charities.
Evidence of a Problem
The SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats, has identified dealing with perishable goods to be both a weakness and a threat to the success of Kudler Fine Foods. Approximately 12% of the stores perishable items are rotated out every two to three days and are either thrown away or given away to local charities (University of Phoenix 2003). However, the 2003 Strategic Plan for Kudler Fine Foods has also stated that those items that are donated to charities are still good quality. Kathy and others must find a way to
The 2003 Income Statement for Kudler Fine Foods does include charitable contributions however, the statement does clearly state if those contributions are based on monetary contributions or those of the merchandise donated. If the $10,975 does represent the cost of the product donated it will be beneficial for Kathy to look at ways to better use those products to benefit the company financially.
Kudler Fine Foods has acknowledged a greater need to have plans in place when dealing with perishable merchandise. In the following fiscal year, 2004, Kudler Fine Foods has implemented a plan to automate the inventory and...