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Create a Problem Statement - Kudler Foods

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An issue is something for discussion or of general concern difficulty; an issue is the preparation for a problem. An issue is something that needs to attention; but is not detrimental. A problem is a difficult situation that can become detrimental to a company. The Kudler Company is dealing with issues that could eventually become detrimental problems that could hinder the company if not addressed before substantial growth. Kudler foods face many issues that can eventually become problems, if not corrected. The goal of Kudler foods is to be a one stop shop with a reasonable price. The mission statement says that they shop the whole world for their products. The finest is what they guarantee their customers. One if the issues are in the process of purchasing “There is no purchasing department in any of the stores although standard purchasing procedures are in place” (Kudler Foods). The lack of a purchasing department within each store leaves room for theft by store managers and over ordering because of favors to venders. Unfortunately, if Kudler is leaving all of the purchasing to the managers except for bulk items, they are jeopardizing the integrity of the products and the company leaving it open for corruption. The solution would be to produce a purchasing department that would make purchases and verify the orders of the management and providing purchase orders to vendors. A new study suggests that nearly any worker may be willing to steal from an employer under some circumstances--unless the company makes clear that theft is unethical ”(Research news). The other alternative is to place more responsibilities of lost on the manager’s salary because a study at Ohio State University shows that, “nearly no employees were willing to steal if they thought the money came from the pockets of their managers, and not the company” (Research news). If the financial cost of implementing a purchasing department is too substantial, if the implementation of a class on company ethics with an emphasis on managerial financial responsibility should be sufficient to reduce risk off theft. To provide superior customer service in the present and the future depends on the validity and accuracy of the forecasting or finance department of the company. One of The other issues that Kudler Foods has, all companies will have to deal with, that is forecasting. Kudler Foods must “forecast which items to carry and how much to carry in the future has always been a challenge” (Kudler Foods). “The owner Kathy and the department managers use historical data on which items and what quantities were sold in the last 2-3 years, especially on holidays” (Kudler Foods). The forecasting provides an inclination of which items and what quantities to carry in the future (Kudler Foods). Inventory Management is also a concern for Kudler foods because excess inventory is always a concern. The excess inventory represents company money sitting and not producing revenue present or future. Being. The Excesses in inventory can also produce write-downs of the merchandise that would minimize profits. The solution to have accurate accounts of the markets and accounting within the company is to provide precise information to determine accurate forecasting. Forecasting although helpful is not a 100% solution to the foretelling of the markets movement. Proper management and firm accounting standard will add to the survival and growth of the company. Kudler foods say in their mission statement that they want to provide the customer with an unparallel environment. Kudler cannot meet these standards because Kudler states that the Security for Kudler Foods is also an issue because of the power problems that California is experiences that has a definite financial affect on the company, so the Kudler Foods installed auxiliary generators in all the stores. The installation of the generators enabled the finance and accounting systems to be supported seven times 24, ensuring that vital information would not be lost. The issue of the lack of power was resolved by the installation of generators to ensure that there would be no lack in service because of power failure and finance and accounting records would be preserved. The issue is resolved and should be monitored to ensure that the proper steps have been taken. To establish a superior environment for the customer, they must first that all products and services are available within the profit margin and is not interfering with the growth of the company. The last issue that I can identify with Kudler foods is that there are “no written policies relative to security of the finance & accounting systems. The REMS has imbedded security features…passwords, dollar limits, limited access features…however, there are no formal company policies or audits regarding same” (Kudler Foods). The issues of security rise throughout the company. The issue of purchasing and black outs is all vital issues that could eventually become problems that would cripple the company almost too non- existence. The solution is to provide firm book keeping so that all shifts or irregular movements in the company could be detected and rectified in a timely manner. The company needs to establish a written and financial standard that would be the ground level for all practices that will affect the financial and accounting methods of the company. The lack of security in purchasing and in the finance department can be rectified if the situations are addressed before the company grows to an uncontrollable level. Short term profitability and success does not constitute the neglect of current issues that would become detrimental problems. The solutions given are not sure fire solutions to the current issues; but rather motion in a stagnant pond to ensure that it will not be infested because of being stagnant. Kudler is a profitable company and will continue to be profitable if loop holes left within the company are closed.

References Retrieved March 29, 2010 retrieved March 29, 2010

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