COMPANY AND INDUSTRY BACKGROUND
Barilla an Italian food company, was established in the year 1875 by Pietro Barilla and was regarded as the largest manufacturer of pasta. In the year 1968 the company started construction of a state of art pasta plant, leading the Barilla into deep debts and was sold to W.R. Grace, Inc. The bakery products were launched after the acquisition. The regulations imposed by the Italian legislation during this proved as a hindrance, Grace was unable to make the acquisition pay off and sold back the company to Barilla.
During the 1980’s though the pasta market in Italy was stagnant, the exports to rest of the Europe was quite impressive. In a highly competitive industry Barilla capitalized on the market trend, along …show more content…
They also felt that a stock out situation might arise whenever any interruption occurs in the company. Most customers look forward to the promotional and seasonal discounts, with the JITD in place such offers would not be possible. Further, with available shelf space, the distributor would stock up competitor products and this would affect Barilla’s sales. The sales representatives are awarded bonus on the basis of their performance, the flat sales would take away their bonus. But most importantly the functioning of sales and marketing gets narrowed and they fear losing power and hold in the …show more content…
They in turn should give out clear instructions to the rest of the organization and setup trial runs to verify the results of the model. This provides all the departments enough time to adapt to the situation and tackle the hurdles which arise during the implementation of the model. It is essential for the management to improve their performance, understand its KPIs and work accordingly. Looking at the current structure the KPIs for Barilla could be arranged in the following order of
Barilla an Italian food company, was established in the year 1875 by Pietro Barilla and was regarded as the largest manufacturer of pasta. In the year 1968 the company started construction of a state of art pasta plant, leading the Barilla into deep debts and was sold to W.R. Grace, Inc. The bakery products were launched after the acquisition. The regulations imposed by the Italian legislation during this proved as a hindrance, Grace was unable to make the acquisition pay off and sold back the company to Barilla.
During the 1980’s though the pasta market in Italy was stagnant, the exports to rest of the Europe was quite impressive. In a highly competitive industry Barilla capitalized on the market trend, along …show more content…
They also felt that a stock out situation might arise whenever any interruption occurs in the company. Most customers look forward to the promotional and seasonal discounts, with the JITD in place such offers would not be possible. Further, with available shelf space, the distributor would stock up competitor products and this would affect Barilla’s sales. The sales representatives are awarded bonus on the basis of their performance, the flat sales would take away their bonus. But most importantly the functioning of sales and marketing gets narrowed and they fear losing power and hold in the …show more content…
They in turn should give out clear instructions to the rest of the organization and setup trial runs to verify the results of the model. This provides all the departments enough time to adapt to the situation and tackle the hurdles which arise during the implementation of the model. It is essential for the management to improve their performance, understand its KPIs and work accordingly. Looking at the current structure the KPIs for Barilla could be arranged in the following order of