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Kudler Strengths and Weaknesses

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Kudler Strengths and Weaknesses
FIN-370
April 28, 2011
Dennis Hoerr

Kudler Strengths and Weaknesses
Corporations make difficult decisions every day about the growth of its company. Some of the biggest decisions are how to expand the business to reach new customers in new locations. Kudler Fine Foods has three options to choose from for its expansion, going public through an IPO, acquiring another organization in the same industry or merging with another organization. There are risk and benefits in each of the options mentioned. IPOs are extremely expensive and a typical firm may spend 15% to 25% of the money raised on expenses directly connected to the IPO (Keon, Martin, Petty, and Scott, 2005). The other two options can be just as risky and can cause a dramatic lose of loyal customers.
Kathy Kudler has established a well-defined organization that has expanded to three stores in California. Kudler Fine Foods prides itself in serving upscale specialty foods with an assortment of wine and cheese products. Several strengths and weaknesses require an in-depth analysis before Kudler fine foods decides on taking the next step toward company growth.
Kudler Fine Foods maintains several strengths that position the company for expansion. Since their inception, Kudler Fine Foods tapped into a market that exhibited high growth potential. With the absence of fine food stores in the area, Kudler experienced significant growth and fulfilled their strategic plan of offering a selection of choice cut meats and gourmet products to quality seeking shoppers (Apollo Group, 2009). The problem that Kudler will encounter is described in their organizational chart where the company shows a lack of operational management needed to facilitate expansion.
The Kudler organization chart shows one store manager for each existing store and one operational manager (Apollo Group,...

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