Strategic Plan for Kudler Fine Foods, Essay Example

Introduction

This paper designs an outline Strategic Plan for Kudler Foods[1].  The draft of the plan has been set out in accordance with structured strategic planning guidelines[2].  It is important to recognize that Strategic Planning is a multi-layered process.  In the context of this report we addressing the macro(high) level elements of the Information Systems Strategic Planning process.  In particular the following aspects:

• Definition of the Mission, Goals and Objectives
• Tactics to realize strategic objectives
• High Level or Level 1 Implementation Plan
• Critical Success Factors
• Preliminary Risk Assessment
• Financial Considerations

Mission

Kudler wishes to empower their clientele with the tools and resources they need in order to cook the finest gourmet foods for themselves and their families.

Goals

• Include recipes with the food they serve in their cafes and retail outlets;
• Provision of cooking classes showing the Kudler style to gourmet meals;
• Improve the layout and facilities of the Cafe and /or retail outlets;
• Examine ways to gain competitive edge over similar competing firms;
• Align our marketing strategy to the same quality as our products i.e. high end;
• Examine both internal and external strategic focus and provide a tactical strategic direction for short, medium and longer terms planning cycles. (Forp, 2009)

Objectives

The following objectives align to the tactical implementation plan:

• Agree Mission, Goals and Objectives;
• Produce a Business Plan;
• Define Strategic Intent – Resources, Capabilities and core competencies required in order to gain competitive edge;
• Create a tactical road map – (i) Current Status Assessment (where we are now) (ii) Future State Assessment (where we want to be ) and (ii) Gap Analysis ( what needs to be accomplished in order to achieve Future State Position)
• Define Critical Success Factors;
• Preliminary Risk Assessment;
• Financial Planning Considerations;

Production of a Business Plan

The contents of a Business Plan are a subset of the overall Strategic Planning Cycle and would expect to contain the following information for Kudler foods:

Summary

Business Concept
Current situation
Key success factors
Financial situation/needs

Vision

Vision statement
Milestones

Market Analysis

The overall market
Changes in the market
Market segments
Target market and customers
Customer characteristics
Customer needs
Customer buying decisions

Competitive Analysis

Industry overview
Nature of competition
Changes in the industry
Primary competitors
Competitive products/services
Opportunities
Threats and risks

Strategy

Key competitive capabilities
Key competitive weaknesses
Strategy
Implementing strategy

Products/Services

Product/service description
Positioning of products/services
Competitive evaluation of products/services
Future products/services

Marketing and sales

Marketing strategy
Sales tactics
Advertising
Promotions/incentives
Publicity
Trade shows

Operations

Key personnel
Organizational structure
Human resources plan
Product/service delivery
Customer service/support
Facilities

Creating the financials of the business plan

Assumptions and Comments
Starting Balance Sheet
Profit and Loss Projection
Cash Flow Projection
Balance Sheet Projection
Ratio’s and Analysis

Source :  (Srinivas, 2009)

From the above conceptual framework you can see that a considerable amount of information has to be gathered in order to complete this process.  It requires someone with intimate knowledge of the Company business and often completed by a team comprised of Business Analysts and a Management Consultant. The Strategic intent component is derived from the Business Plan strategy section.  Another observation is that of the Financial section. It is important to see the initial scope of high level information required.  An Opening Balance Sheets illustrating Assets and Liabilities, Profit and Loss Account projections – normally over a 3 year projected basis, cash-flow projection illustrating estimated income and expenditures, future Balance Sheet projection – normally 3 year outlook and carrying ratios and analysis based upon performance expectation and return on capital investment.

Implementation Planning

This occurs towards the end of the Strategic Planning cycle, Fig 1 refers.  Gantt Charts are often used to provide a visual representation of requirements.  The Office of Government Commerce in London England describes 5 stages in the IS Planning cycle, together with the expected times in order to complete each stage.  In most cases this is represented by a team of 3 people working in harmony performing the analysis and determining the strategic content.  For example:

1. Scoping Study (1-3 Months)
2. Strategy Study (3-6 Months)
3. Strategy Definition ( 1-2 months)
4. Implementation Planning ( 1 month)
5. Monitor, Tune and Review (ongoing)

As you can observe this is not an inconsequential activity and is relatively time consuming in order to achieve the desired result.
An implementation Plan for Kudler Foods might comprise the following events:[3]

Figure 1 Typical Strategic Planning Cycle

Critical Success Factors

“Critical Success Factors (CSFs) can help. CSFs are the essential areas of activity that must be performed well if you are to achieve the mission, objectives or goals for your business or project.”  (Anon, 2009)

• Completion of a well constituted business plan
• Clearly defined projects with available resource profile to complete
• Agreed Goals and objectives, approved by all stakeholders
• Agreed number of strategies to complete i.e. IS Strategy, Marketing Strategy, Operational Strategy
• Use of Technology to support business transformational objectives
• Work with defined Financial and budget parameters

Preliminary Risk Assessment

Strategic Risk has been defined as ”  the current and prospective impact on earnings or capital arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes.  This risk is a function of the compatibility of an organization’s strategic goals, the business strategies developed to achieve those goals, the resources deployed against these goals, and the quality of implementation.  The resources needed to carry out business strategies are both tangible and intangible.  They include communication channels, operating systems, delivery networks, and managerial capacities and capabilities. ”  (Sooper Tutorials, 2008)

In the case of Fudler Fine Foods the following key risks are identified:

Works Cited

Anon. (2009). Mindtools. Retrieved 12 11, 2009, from Critical Success Factors: http://www.mindtools.com/pages/article/newLDR_80.htm

Forp, P. (2009). Marketing Case Study : Kudler Fine Foods. Arcticlebase .

Sooper Tutorials. (2008, 11 13). Strategic Risk Management. Retrieved 12 11, 2009, from Sooper Tutorials: http://www.soopertutorials.com/technology/project-management/1556-strategic-risk-assessment.html

Srinivas, H. (2009). MicroEnterprises. Retrieved 12 10, 2009, from MicroEnterprises: http://www.gdrc.org/icm/micro/business-plan.html

[1] Information and data sourced from reliable internet sites. Plan based upon latest available data.

[2] Geoff Coyles, Practical Strategy Tools and Techniques, Prentice Hall Publication

[3] Implementation Plans take on average 4 weeks of time in order to complete.  More complex ones with multiple layers of projects have been known to take longer.