Table of Contents
Executive Summary 2
Issue Identification 3
Environmental and Root Case Analysis 3
Alternatives and Options 8
Monitor and Control……………………………………………………………………………………12
Barilla is the largest pasta manufacturer in the world. While this is an excellent title to lay claim to for this company, they face many issues that if gone unchanged, will undoubtedly lower Barilla’s ability to produce such a high quality product while meeting the demand for all of their products.
The issues that Barilla faces include the inability to meet demand for products at certain times due to insufficient ...view middle of the document...
This issue is a direct result of the minor issues of their manufacturing process, as well as their ordering and logistics processes. Barilla’s manufacturing plant has not seen any updates occur in over thirty years. In this time many new technologies have been implemented in plants similar to Barilla’s, which have reduced production costs and time, while still allowing companies to maintain a high quality product. Barilla’s ordering and logistics systems also contributes to the stress placed on their manufacturing system. With the current ordering and logistics system Barilla uses it is incredibly difficult to anticipate future demand for their products. What this results in for Barilla is the inability to manufacture their products and meet future orders. The other major issue that Barilla faces is the poor relationships and communication between them, their marketing intermediaries or distribution centers, and their customers, the retail stores. This issue results once again from their poor ordering systems similarly to their first major issue, as well a decentralized flow of information.
Environmental and Root Case Analysis
Since it’s creation Barilla has had a great deal of success. By focusing on producing high quality products they have developed a strong following of loyal customers. Through their marketing strategies they developed a strong company image rooted in tradition. Today Barilla is the world’s largest producer. In the Italian pasta market, which consumes on average 18 kilos of pasta per year on a per capita scale Barilla is regarded as a titan. With 35% market share they are the leading pasta provider in the Italian market. Barilla also experiences a great deal of success in rest of Europe’s pasta market holding a 22% market share. In addition to their market share another strength Barilla has is the breadth of its products. Due to the excellent brand image that Barilla has as well as its large consumer base, the success of it’s original products has helped Barilla in selling their lesser known products because of the brand loyalty it has developed. Finally the last strength that Barilla has which it consistently employees are its unique and innovative marketing techniques. Barilla does an excellent job in separating itself from its competitors in how it advertises as well as how it sells its products. This along with its other strengths give Barilla a competitive advantage in the pasta industry.
However, as previously stated Barilla faces many issues, which hinder their success and potential for future growth. Barilla faces two major issues. Both of these issues however are a direct result of other minor issues piling up to create a major problem for Barilla.
The first major issue that Barilla faces, is the high level of stress that high demand for certain products places on their manufacturing and production systems. This is a major issue for the Barilla company because their ability or inability to meet the demand for...