Pasta Perfect

Pasta Perfect, Inc.

Case Study

Strategic Management Seminar

Introduction to the case:

“I must admit that I am not at all confident that the Chicago group, much less the company as a whole, can be made profitable before we run out of cash”, said Tom Walker, President and founder of Pasta Perfect, Inc., five years after its formation in 1984. With its base of operations and over two thirds of its stores in St Louis, Mo., Walker envisioned Pasta Perfect’s business mission as a high-end specialty pasta company, distributing highly desirable daily made fresh pasta for a premium price through his new chain of restaurant stores. The other third of his stores were several hundred miles away in Chicago. With the fresh pasta market growing at a rate of 30% per year nationally, Walker thought that with his having had quite a lot of experience in retail marketing, it was reasonable that he could capture a portion of the profits with his new retail business model.

It will be assumed that the Pasta Perfect, Inc. Case has been previously read in detail. This analysis will refer back to the full case study. An analysis of the company’s business situation will follow using a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, Porter’s Five Forces Model, Financial Statement Analysis and some conclusions and judgments. The SWOT framework will provide us with an environmental scan, both internal and external to the company. Internally, strengths and weaknesses will be examined. Externally, opportunities and threats will be identified.

SWOT Analysis:

Strengths:

The resources and strengths of “Pasta Perfect, Inc.” were relatively sparse. Walker had about 15 years of marketing experience and knew the world of business in general terms. He recruited a management team, successfully raised over $2 million in capital in two public offerings by convincing over 7000 investors to support his vision and marketing plan. Many were convinced that with a...