Learning Team Case Study: Kudler Fine Foods

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Abstract Learning Team B has selected Kudler Fine Foods as its privately held company founded by Kathy Kudler. Kudler Fine Foods has three locations that are 8,000 square feet located in San Diego and is looking to expand. They offer upscale specialty foods to include; bakery and pastry products, fresh produce, fresh meats and seafood, condiments and packaged foods, cheese and specialty dairy products. Kudler is faced with three options to expand its operations. Within this paper, Learning Team “B” will compare and contrast these options and make recommendation towards using a merger in order to encourage them to grow and expand. Kudlers’ options include; going public through IPO, acquiring another company in the same industry, or merging…show more content…
This can make expanding and growing very difficult and decisions must be mad wisely. When it comes to their products that are purchased around the world to ensure high quality, expanding may affect that quality, making it hard to supply a specialty product. Going public through an IPO, may change the very decision made that make their company special, or it may enhance their products by providing more resources. Acquiring another company in the same industry to help their company grow could cause increased financial stability or increase their financial burden. Kudler can merge with another organization in hope to expand while implementing their mission and values on that organization or that organization may hurt their reputation. Learning Team B will evaluate the strengths, weaknesses, opportunities and threats of each approach in order to recommend the best approach for Kudler Fine…show more content…
Kudler is such a high profile business and has many exclusive selections; the company has much to consider when it comes to selecting an IPO as an option. As far as strength, the company has grown and expanded very quickly since the start-up. They broke even within the first year, which is phenomenal and expanded to having three locations within the first five years. This speaks wonders for a company because they were able to establish a customer base and multiply in other locations. The weaknesses that Kudler may face would be the financial burden of going public. Sometimes expenses pile up just from seeking help from outsiders to protect the investments. The economy has fluctuated over the years; therefore the company needs to ensure they have contingency plans in place when business may not be as stable. There are ample opportunities that can come about from selecting an IPO. A company's debt-to-equity ratio will usually improve after going public, which tends to result in more favorable financing arrangements (2014, Going Public, para 1). This will be a good move for Kudler to help expand their brand to different locations. They have already maintained the San Diego metropolitan area; therefore there are more markets to conquer as well. Also, maintaining control is important: In most cases, Venture Capital investors will want to appoint someone on their team as a member of the board of directors. Moreover, they usually

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