Kudler Fine Food Business Essay

Kudler Fine Food Business Essay

  • Submitted By: tsimienmcd
  • Date Submitted: 02/01/2009 6:25 PM
  • Category: Business
  • Words: 1436
  • Page: 6
  • Views: 2041

Kudler Fine Foods

Kudler Fine Foods

Terrell Simien

University of Phoenix

FIN370

Russell Riggs

Kudler Fine Foods

Kathy Kudler has a passion for gourmet foods. She made her dream of opening her own gourmet food store come true in 1998. Kathy has been successful and has now expanded to three stores. Each store features a European bakery and the baked goods contain no preservatives, the meat departments offer organic meats, the produce department offers over 350 fresh fruits, vegetables and herbs, the cheese and dairy department offers over 250 cheeses from all over the world, and each wine department has a wine steward to assist with picking the perfect wine for a meal or special occasion.
Kudler Fine Foods Company is a privately held Company and it wants to expand its operations. Here, the company is given three options for the infusion of capital to expand its operations:
A.     Kudler can go public through an IPO.
B.     Kudler can acquire another company in the same industry.
C.    Kudler can merge with another organization.
Team A will discuss the strengths, weakness, opportunities, and threats of each option. A recommendation of an option will conclude the document.
A. They can go public through an IPO
Here the Company can make public issue to get the large amount of capital. For this purpose, the Company can issue shares, Debentures and preferred stock.

When the Company goes to public, then it has to be converted into Public limited Company because the private Limited companies are not allowed to go for public.

Strengths: Kudler's 2003 Strategic plan lists the following strength:

No direct competition. There are no other gourmet stores in our geographic area. Specialty stores are limited and, with the exception of major grocery chains and smaller, independent wine stores, we have no direct competition.
Weaknesses: No direct competition could also be a weakness...

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