...Running head: INTERNAL CONTROL AND RISK EVALUATION Internal Control and Risk Evaluation Tamika Cummings University of Phoenix ACC/542 Accounting Information Systems January 11, 2010 June Hanson CPA Kathy Kudler, founder envision for the organization was to provide a pleasant shopping experience for customers worldwide. The Kudler Fine Foods visual culture is apparent in the first sentence of the mission statement. “Kudler Fine Foods mission is to provide our customers the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment” (University of Phoenix, 2010). Kudler Fine Food stores are 16,000 square feet and are located in bouquet type environment, which is located in upscale areas. In week 2 my team was given the assignment to create flowcharts for Kudler Finer Foods. Four flowcharts were created to show the operating process of four functional areas. This paper will assess some of the internal controls and risk assessment needed for each flowchart. Companies use internal controls within their processes to assist departments in identifying priorities, achieve department goals, report reliably, meet compliance regulations and safeguard. Kudler Fine Food used internal controls to prevent and reduce errors in a cost-effective manner. As business processes become increasingly complex and dynamic, business controls have become an essential tool. Kudler Fine Food have ventured into the...
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...Executive Summary Kudler Fine Foods was first established in 1998 with an objective strongly focused on providing its clients the opportunity to buy fresh ingredients used to make delicious cuisines. Since then, Kathy Kudler (founder) has opened two more locations to satisfy her target market’s thirst for her product(s). Although this small business expansion has increased the customer base and or revenue pursued by its owner, the induction of additional services provided has also slightly altered the projected operations plan and or business plan. Kudler Fine Food’s mission states that it will “provide its customers with the finest selected foodstuffs, wines, and related needs in an unparalleled consumer environment“(Apollo Group, 2008). In order for Kudler to meet the needs of the consumer at all times, administration has proposed a review of the companies operations and or communication plan(s) be reviewed for contingency of any unforeseen threats to daily operations. Scope To assist the company in their daily functions, Kudler Fine Foods stores information used to determine market conditions, customer demographics, individual store sales, employee demographics, payroll, administrative functions, and other human resource related information. A post review of Kudler’s fixed operations reveals the company is currently unprepared for any and all potential threats that may halt daily operations for an over-extended period. Potential threats that Kudler may face are: breach and...
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...many businesses. Strategic flexibility is crucial to the success of Kudler Fine Foods. Forces and trends will perpetually be an aspect that all organizations will have to adapt to as a means to optimize the organization’s success. Every organization’s level of proficiency and potential for achievement in the marketplace can be assessed in numerous ways. This paper will evaluate Kudler Fine Foods by conducting a SWOTT analysis, and creating a table summarizing the findings. This paper will also analyze the following pertinent forces and trends: economic, legal, regulatory, culture, structure, leadership, and technological. Lastly, how well Kudler adapts to change will be critiqued, the supply chain operations will be analyzed, issues and opportunities will be identified, a hypothesis will be generated, and circumstances surrounding each issue will be identified and classified. Understanding Kudler Fine Foods internal and external environments is critical to the success of the organization. Kudler Fine Foods is an upscale epicure gourmet food store that provides gourmet foods and services that appeal to a niche market; gourmet chefs and gourmet chefs in training. Kudler Fine Foods would like to expand and grow the organization. Before proceeding ahead, the organization must know and consider the internal and external environment. To obtain knowledge of the organization’s internal and external environments Kudler Fine Foods will perform a SWOTT analysis. Strengths 1. Small...
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...Running head: Internal Control and Risk Evaluation Internal Control and Risk Evaluation The purpose of this brief is to identify and analyze possible risks, internal control points, design internal controls, evaluate the application of internal controls and discuss other outside controls, that Kudler Fine Foods may need to upgrade the computer systems. Analysis of Risks of Computer Systems After reviewing the previous flowcharts it is recommended that Kudler Fine Foods automate more of its accounts payable, accounts receivable, inventory, and payroll processes and standardize these processes across all Kudler locations. Therefore, increased computer controls will be needed to ensure the security of data. Computer data could be compromised if proper computer controls are not in place. Risks include theft of confidential and sensitive information stored on computer servers such as company bank account information or personnel records of Kudler clientele and staff. If proper internal controls are not implemented breaches of sensitive data stored in folders that are accessible through the Internet will be exposed through file sharing software with the other Kudler locations. Identify risks and internal control points Identifying risks and internal controls are imperative when information systems are used extensively throughout the fundamental business processes. Information systems general controls are the policies and procedures that apply to all...
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...Virtual Organization Identify the key stakeholders and their roles needed to achieve the organizational goals, and recommend the collaborative interactions among the key stakeholders to facilitate the organization’s success Kudler fine Foods, this is Kudler fine foods Stakeholder Analysis We do have some stakeholders that we monitor. We view stakeholders as those entities, internal or external, who could affect our organization or be affected by our organization. The following list is not inclusive, but ones that we do keep in mind: ??Staff – Our team of clerks and shelf-stock individuals are critical to our operation. Although Kathy visits each store, much of her time is spent doing back-office work so the staff members are really the ones having the day-to-day contact with the customers. While the work environment is not stressful, whenever someone quits or is fired, the whole store has to pick up the effort while a new person is hired and trained. ??Customers – We try to take very good care of our customers. Clerks are encouraged to keep track of comments or requests, and share them with Kathy when she comes into the store. Some free samples of food are offered for tasting on a limited basis and we have monthly wine appreciation meetings. If a customer requests a product, we see if it is feasible for us to stock that item. If we can’t, we offer to special order it. We take complaints about product or service very seriously and try to address any and all problems quickly. ?...
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...Davis, Benjamin Holbert & Shawn Hicks Marketing 571 Judy Allen December 17, 2011 Kathy Kudler recently had a business meeting with a top distribution company in Italy that is well known for leading grocery value in sales. Selex a well known grocery distribution company would like to get into the franchising business. Selex is impressed with Kudler’s dominant positioning in Brazil and would like to market and franchise a café known for gourmet cuisines. Selex believes that an upscale café would cater to the market looking for more than just great coffee. According to Country Report on Grocery Retailers in Italy, consumers are likely to remain value-focused and will look to channels and retailers which can provide them with high quality and low-cost products in grocery and household essentials that can be easily obtained. Consumers are faced with shopping in more than one store to provide all items and services needed. Selex feels that with the Café and all the accommodations that Kudler will provide for customers that the Italian market will embrace a one stop grocery store. Pricing Pricing is vital to a company’s growth because it is the only element in the marketing mix that produces revenue. Determining the correct price of a product or service is a complex and difficult task, especially when conducting business in foreign countries. Kudler Foods has decided to accept Selex invitation to establish its presence in Italy. Although setting...
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...Strategy Paper Kathy Kudler created Kudler Fine Foods in June 1998. The store only took nine months for to reach the break-even point, and at the end of the year, a profit was turned. Within the next five years Kudler Foods was able to expand to three more places and has been very profitable. At this time, Kudler Fine Foods is privately owned but wants to expand. Kudler Fine foods can either chose to go public through an initial public offering, acquire another organization, or merge with another organization. Team C will analyze the three options by using SWOT analysis and give a recommendation of the best way to expand. Strengths of Each Approach An initial public offering (IPO) would allow Kudler Fine Foods to go public and sell stock in the organization. Allowing Kudler Fine Foods to increase marketability, an IPO provides flexibility and the opportunity to raise funds quickly from the sale of stocks. Kudler’s management team will remain in control of the organization but will have a board of directors who oversees management’s decisions and ensures that Kudler acts in the best interest of the shareholders. The exposure of going public could increase the awareness of Kudler Fine Foods and could assist the organization in expanding into new markets (Keown, Martin, Petty, & Scott, 2005). Acquiring an organization allows Kudler Fine Foods to acquire the existing assets of another organization and the existing customer base also. The organization Kudler Fine Foods wants...
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...SR-kf-013 Kudler Fine Foods is planning to develop a frequent shopper program that will track customer purchases as part of a broad marketing strategy to increase their customer purchase cycle, improve their customer loyalty, and profitability. The intent of this program is to use the information collected from customers, over time, to identify trends that will assist in refining its processes and offerings in order to better satisfy all of their customers. Additionally, the information the Kudler Fine Foods Frequent Shopper Program collects from individual customers will be used to develop targeted offers and high value incentives to participants in the program. Before the design and implementation of this system can begin, there are many potential legal, ethical, and informational security concerns related to the development of the program that must be considered by management. Also, the effect this program will have on the organization’s structure must be considered. As stated previously, there are many legal concerns related to the implementation of Kudler Fine Foods' frequent shopper program that must be considered by management. “Most American and European privacy law is based on a regime called Fair Information Practices (FIP)” (Laudon & Laudon, 2010 p.132). The core principles of the report are already inline with Kudler Fine Foods’ Privacy policy, as outlined on the terms and conditions page of the website. By continuing to follow this policy, Kudler Fine Foods...
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...changes will have to be made and they can either be beneficial to a respective industry or have adverse consequences. Kudler Foods is currently in the position to acquire a company which can have both positive and negative effects. In pursuing a vertical merger Kudler Foods will be in position where they will have an increased market share that places them in a position of reduced competition. Current consumers may not necessarily be attracted to this format, however, through new marketing tactics they can attract new consumers and target a broad demographic and also drive in more profits. If Kudler Foods proceeds with this merger it will allow this establishment to put in to play a new strategic direction. One of the benefits of using this strategic business method according to "More-For-Small Business.com" (2002), “it provides you with efficiencies related to economies of scale (from production, inventory, purchasing, sales and marketing, administration perspectives and more)” (vertical merger). Kudler Foods can benefit and exceed in this merger and in this industry by promoting competitive prices, they will be able to add a new dynamic to their stores by having trained personnel in new products and merchandise, and offer equipment to their employees that will allow them to conduct their work in an expedient manner therefore allowing savings and synergies. If Kudler Foods decides that they will like to expand internationally a merger of this caliber can aid them with the threats...
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...and finally compare and contrast the marketing communication strategies for both your domestic and international markets. Developing and Managing an Effective Marketing Communications Plan Kudler Fine Foods is attempting to enter the international customer market in China and United Kingdom and an effective integrated marketing communication plan is essential for the success of the company. Because of globalization and increased competition in the international market, it is vital that Kudler Fine Foods concentrate their efforts on the targeted consumers’ satisfaction with their product. The integrated marketing communication plan will have to inform, communicate, entice, grow, and retain their customer base in the United States, China, and the United Kingdom. Marketing communications allow companies the ability to inform, persuade, and remind consumers about the products and brands that they sell. The voice of the brand can establish a dialogue and build relationships with consumers (Kotler & Keller, 2007). There are various methods of achieving those objectives and Kudler Fine Foods has to determine the most appropriate for their company. The communication plan depends on thorough marketing research about the targeted customer base such as income, demographics, culture, values, age cycle of life, and language...
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...organization's goals. Describe where Kudler Fine Foods could be if this problem is solved by management. Kudler Fine Foods (KFF) is a premier gourmet grocery store. It has the obligations to its employees and loyal customers to remain competitive in the field and keep the quality of their products and wine at the highest level. A wide variety of organic produce grown locally as well as a wide selection of local and imported wines are the products that KFF offers. KFF is very customer oriented and always strives to provide a friendly and attentive way to serve their customers. The KFF management is planning on opening a new location when the other current locations are not successful. After they opened their first store in La Jolla, California, KFF has expanded their business to Del Mar and Encinitas, California. KFF's future growth plans include expansion to other areas in Southern California, specifically in Carlsbad California due to its large populatin base and relative proximity to the Del Mar location. Currently, the Del Mar store is not performing well compared to its financial targets and also because of the small population in the area. KFF has planned these moves without doing a proper analysis of the need for their services in the area. Kudler is not yet prepared for factors that may decrease the profitability of the company, or factors that may contribute to the failure of a new location. The shift in growth of Kudler Fine Foods' organization has put the...
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...Kudler Fine Foods After searching for opportunities for a different lifestyle, Kathy Kudler had a vision of opening her own gourmet food department. On June 18, 1998, Kathy Kudler’s first store front of Kudler fine foods opened their doors, in La Jolla, California (Kudler Fine Foods.) Within two years later she open an additional establishment in Del Mar, California, which is within 30 minute distance from the La Jolla Store. Five years later she open a third store located in Encinitas, California. Kudler fine foods’ businesses have been doing great with the exception of one of the stores making enough money to break even. Kathy wanted her store to sell the finer items of the international cultures. Kudler Fine Foods consist of freshly bake breads, the finer meats, freshly organic produce, gourmet cheese, and superior selection of wine. Importance of Marketing Research Kudler Fine Foods is an upscale food supplier that will attract customers who are of a median to upper income. Marketing research is of importance when dealing with this any organization, especially when the products exceed the average price the same items. Kathy would need to know the target market of her customers. The target market consists of the characteristics and dimensions of their present and potential clients. Kathy needs to be aware of the average income of individuals in the area of the store, their lifestyle, population, sex, marital status, and the commute from Kudler fine foods to their home...
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...we see and understand the world around us. It deals with our basic values in terms of what we consider right and wrong, or good and bad. And finally, it covers our willingness to take risks. The styles are as follows: Intuitive - Focuses on results and relies on past experience to guide actions. Innovative - Concentrates on problem-solving, is systematic, and relies on data. Imaginative - Is able to visualize opportunities, is artistic, enjoys writing, and thinks “out of the box.” Inspirational - Focuses on social change and the giving of self toward that end (Apollo Group Incorporated, 2004). After doing the worksheet, the results are as follows. Vernette Kudler Fine Foods is a growing organization the leaders at Kudler contribute to the success of the organization. A person’s creativity and intellectual ability goes together. Individuals have different personality traits these traits can help an organization succeed or fail. In completing the Creative Intelligence Profile, I rated in the category inspirational. In analyzing Kindler’s Foods organization my leadership skills fall in the category of integrity. The integrity and success of the company is very important. Leaders are honest and demonstrate integrity toward customers and employees gain trust from these individuals. Kathy Kudler has a vision to open shop and not continues with the frustration of travel to find fresh gourmet ingredients. An inspirational leader can relate to...
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...Kudler Fine Foods and Wine Company Merger Troy T FIN 370 March 19th, 2014 Kudler Fine Foods and Wine Company Merger Since 1998, Kudler Fine Foods has proudly served residents of Southern California with the highest quality of meats, produce, cheeses, and other fine food products. The Kudler grocery store brand is well known for the quality of their products, the deliverance of exceptional customer service, and their philanthropic efforts within the San Diego community. Additionally, the increase in Kudler Fine Foods' popularity stems from the fact that they offer their shoppers locally grown products, further supporting the region's economy. In recent boardroom discussions, the leadership team at Kudler Fine Foods has expressed their desire to expand the business to other regions, increase exposure in sub-markets and ultimately, obtaining revenue growth. After months of deliberation, the executive team has decided to expand their operations by merging with their former competitor Macy's Market. Prior to finalizing their merger, Kudler's Fine Foods explored numerous options for their expansion. They contemplated offering an IPO and an acquisition, before finally deciding on a merger with Macy's Market. The Macy's Market organization can offer financial stability while Kudler's Fine Foods has the reputation in the community. Furthermore, the leadership team at Kudler conducted a detailed SWOT analysis on the potential effects of such a merger. Operating as one organization...
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...Overview of Management: Kudler Fine Foods University of Phoenix MMPBL502 Introduction Kudler Fine Foods (KFF) is an upscale gourmet food store for shoppers with discriminating tastes. Kudler’s store stocks an array of gourmet items that vary from produce, meat, seafood, baked goods, cheese and dairy and wine. Kudler purchases organic products to the extent that is feasible. Currently, Kudler has three locations in California: La Jolla, Del Mar, and Encinitas. Each store is staffed with a manager and assistant manager. The brainchild behind this gourmet store was established by Kathy Kudler. Kudler Fine Foods has been so successful that Kathy is looking for additional sites to further expand the Gourmet Food chain. As matters stand, KFF has flourished; however, to continue success, Kathy will need an excellent management team to make certain the stores continue to provide the best gourmet products possible. Primary Functions of Management According to Gomez-Mejia & Balkin, “successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment, such as those brought about by technology, legislation, and competitors.” The four primary functions of management are needed for Kudler’s continued success and the functions are: Planning/Strategizing, Organizing, Leading and Controlling. Planning and Strategizing A significant...
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