Environmental_Scan_Summary

Running head: EVIRONMENTAL SCAN SUMMARY Environmental Scan Summary University of Phoenix Table of Contents Abstract……………………………………………………………………………………………3 Environmental Scan Summary……………………………………………………………………4 SWOT Analysis of Internal Environment…………………………………………………………4 External Environment Scan……………………………………………………………………….5 Conclusion………………………………………………………………………………………...6 Abstract This paper discusses the environmental scan and the relating internal and external environments of Kudler Fine Foods. This discussion will include a SWOT analysis of the internal environment of Kudler Fine Foods as well as an overview of external environmental factors affecting Kudler Fine Food. Environmental Scan Summary The internal and external environmental scan of Kudler Fine Food will include a SWOT analysis of the company’s internal environment to determine the strengths, weaknesses, opportunities, and threats. The environmental scan summary will also give an overview of the external environmental factors the company will have to consider, such as competition, economic conditions, bargaining power of buyers, bargaining power of suppliers, and government policies. SWOT Analysis of Internal Environment Kudler Fine Foods has several strengths. The company’s mix of products, high quality gourmet and fine foods it provides its customers, and strong reputation in the community because of the freshness and quality of its products are all strenths. This reputation and product mix allows the company to charge a higher price for its high quality specialty foods. In comparison, Kudler Fine Foods has several weaknesses. One weakness is the company has a limited presence and is currently not a national company. Other weakness for Kudler Fine Foods includes fewer resources then its larger competitors that makes it harder for the company to compete, its current network/database is subpar and will have to be upgraded if the company plans to expand, and its website does not adequately showcase the company or its products. Kudler Fine Foods have many opportunities it can take advantage of to make it a stronger company. The company can leverage its reputation and high quality products to help the company expand outside of the areas it currently occupies and into new territory. The company will be able to use its high quality and fresh product mix to help it gain a foothold in other areas and compete with other already established companies. In comparison, one of the major threats that face Kudler Find Foods is its ability to compete with the more established and larger national food chains and other smaller local companies. Another threat the company will have to take into account is its ability to discover and meet the tastes and preferences of the regions the company is entering and making sure that the company can meet those tastes and preferences in a timely manner. External Environment Scan The external competition is one major component of the external environment scan. The competition in the retail food industry is fierce. Kudler Fine Foods provides specialty food to a niche market, which helps to limit the competition the company has to face. The major concern is that competition still exists for the company by other nationwide, regional, and local food chains. Kudler Fine Foods has gone through some growth in its local market, but to continue to grow it will have to find a way to compete against the stiff competition with the retail food chains for the company to maintain growth and profitability. Another external environmental factor Kudler Fine Foods will have to take into account is the economic environment. The recent recession the United States recently went through still affects the growth in retail sales. This means the company will have to be vigilant in working to maintain its growth rate in an economy that has still not recovered. This will mean Kudler Fine Foods will have to be more aware of pricing and costs to continue to offer its more price sensitive customers in the upscale food market the same products at an affordable and attractive value. Kudler Fine Foods will have to be aware of is the bargaining power of buyers because buyers will want more value for their money during tough economic periods. To address this the company will have to make sure to offer maximum value to ensure continued growth, repeat business, and to convince customers why they should still continue to pay the premium prices for the company’s products. Kudler will also have to be aware of government policies that could help it bring this value to its customers. Recently the government has instituted programs and policies meant to spur economic recovery. Kudler Fine Foods should take advantage of these programs and policies to ensure its sustained growth and continued value for its customers but will have to do this cautiously because the company doesn’t want to over expand. Kudler Fine Foods will also have to be aware of the bargaining power of suppliers, which is currently decreased because of the economic conditions. This should allow the company to obtain better terms when opening up retail locations. If Kudler Fine Foods does not take advantage of this opportunity it could keep the company from obtaining the resources and products it needs to compete with its larger and more efficient competitors in the future. As Kudler Fine Foods grows and expands it will have to take advantage of its strengths and overcome its threats and weaknesses. The company will have to focus on reducing expenses and costs to stay competitive and continued growth. The company will also have to continue to offer high quality specialty food to its customers at affordable prices. Kudler Fine Foods will also have to make sure it institutes a comprehensive plan for future growth, which takes into account everything from future locations, expansion of its networks and databases, and the resources necessary to sustain growth. References Apollo Group, Inc. (2006). Kudler Fine Foods. Retrieved June 6, 2010. STR/581 – Strategic Planning and Implementation. https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Internet/KudlerPort.htm