Bus 475 - Functional Area Interrelationships

Functional Area Interrelationships

BUS 475

June 29, 2011

Introduction

Starting a business in the gourmet foods takes exquisite knowledge and passion for food. Finding the best and freshest ingredients in her town was difficult for Kathy. Tired of the weary scavenger hunt for gourmet ingredients, Kathy decided to open her own gourmet store that offered the best and freshest gourmet foods, wines, cheeses, and other hard to find ingredients. Opening a business presents challenges with hiring, managing and maintaining employees to operate the company. This paper will analyze Kudler Fine Foods organizational structure and how it is used to achieve the companies stated goals and fulfill its mission (Apollo Group Inc. (2009).

The primary reasons for the organization's existence

The primary reasons for Kudler's Fine Foods existence from an analysis of the mission, vision, values, and goals is to provide their customers with the finest in selected foodstuffs, wines, and related needs in an unparallel consumer environment. Their mission statement says "Our selections, coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping outing." Kudler Fine Foods mission also states that they "will provide this service because we "shop the world" for our products; purchase only the finest of products; are highly selective in acquiring our team members; and will go to extensive lengths to assure that Kudler Fine Foods is the purveyor of choice for customers aspiring to purchase the finest epicurean delights" (Apollo Group Inc. (2009).

Organizational structure and the key positions

Kudler Fine Foods operates as a Sole Proprietorship Company. Kathy Kudler is the owner and operator of three locations in La Jolla and Del Mar, California. All of Kudler Fine Foods stores house the following fully operational departments Bakery, Meats, Produce, Cheese and Dairy, and Wine. On another side of Kudler there are other divisions of the business that consist of; Administration, Finance & Accounting, Sales & Marketing, Human Resources, Operations and the Information Technology department. Legal work is handled by an outside contractor or outsourced to Anne Shousha, Kathy's sister-in-law. (Apollo Group Inc. (2009).

Kudler stores does not have a purchasing department for their stores, instead the store's department managers are allowed to order what they need within reason. Kathy encourages leadership collaboration when purchasing, this way no one orders what another store has a surplus of that can be shared and used before it expires. Also it could help the company receive a discount if they place one larger rather than smaller order together, however no formal process is in place. There are some areas that Kathy prefers to handle personally for instance, when it comes to ordering certain equipment or putting together advertisements for the stores, those purchases are handled by Kathy directly. Special sales events are organized with the department managers ensuring that the supplies will support the sale. (Apollo Group Inc. (2009).

Reasoning for Structure

Like other business owners, Kathy Kudler believed that she could deliver gourmet foods to the consumers in La Jolla and surrounding areas because one no one else was doing it (Apollo Group Inc. (2009). As a result of this Kudler have a corporate structure that is far from formalized with Kathy Kudler being involved in every decision being made, however transferring the decision making power to certain individuals assists in strengthening her organization . This is an important part of the decision making process especially if she is planning to have stores across the United States. (Apollo Group Inc. (2009).

Structural Changes

It is good business habits that Kathy is personally involved in decision making process at almost every level however; in the long run that is not a sustainable