Environmental scan involves the internal as well as external scan of the foods grocery industry. The environmental scan is extremely important for constantly revising the strategy of KFF. It will help in staying in touch with the industry standards, forecasts and developments. This knowledge is critical as the company works to build its suitable strategy. The internal scan takes in the identification of the strengths and weaknesses; where as the external scan involves the identification of the opportunities and threats (Wilson & Gilligan, 2005).
Kudlers external changes include direct marketing and word of mouth advertising and a supplier relations program. Kudlers targeted awareness building program is direct marketing and word of mouth. Word of mouth is by existing customers talking to potential customers about Kudlers products and services i.e. cooking class socials. Direct mail promotional literature will be mailed to high-income zip codes which will contain information about Kudlers products and services. The direct marketing and word of mouth advertising are interrelated with Kudlers internal environment from IT providing Kudlers LAN system and data bases that provide Kudler with customer information as listed above in previous paragraphs and used for direct mailing and word of mouth advertising. Kudlers LAN system will integrate it with its suppliers and provide its suppliers with information needed on product stock, needs and ensuring that Kudlers suppliers can match, meet and deliver product that Kudlers customers demand. This information is controlled and secure so that suppliers only view product information that is relevant to them. Kudlers LAN system also integrates product stock information to its suppliers but also its customers via the Internet. The above list of SIS is part of Kudlers Generic Strategy. Kudlers Generic Strategy is one of implying a differentiation strategy. Differentiation strategy is providing a product or group of products and service the offers uniqueness that are valued by customers who seek this service and perceive this service as superior when compared to Kulders competition. This superior service provided by Kudlers allows them to charge premium prices and hope that the premium prices charged will cover the extra cost of providing this superior service. By providing training classes to ensure Kudlers employees are well versed in product knowledge and services offered by Kudlers. Kudlers provides a wide selection of the finest ingredients needed for gourmet cooking. This niche is also a focus strategy(Chase, 2006).
Internal environmental scan
Strengths
Strong vision of end state: The Company has a firm vision of the end state goals that are to be achieved in future. This makes the attainment easy and this in turn helps the accomplishment of the overall objectives of the firm.
Information technology: The developments in technology have facilitated the employees to derive the critical customer, order and financial information by using some simple keystrokes.
The company has an established infrastructure and a dedicated workforce who works for the benefit of the organization.
Weaknesses
Lack of distribution of power: The structure of the company is such that ...