Ten years ago Giovanni inherited his family business and, with a small business loan from the bank, decided to invest and extend the business. Giovanni thought carefully about what people really like and decided to specialize in unusual home-made pasta of the very highest quality. He considered that in addition to selling from the single high street shop, he could also increase the volume sold by selling to people who need fast, healthy lunches. If he delivered, as well as selling from the café, Giovanni considered that he would be even more successful and would be able to open another four cafés in other cities.
Giovanni was very successful in making his own pasta, as his grandmother had taught him, and he made many different kinds of “Artisan” Pasta which were extremely popular. For the first eight years Giovanni’s business was very successful and each year he made a small profit. In addition he was now running Pasta Making Classes in the evenings.
However, during the last two years, other cafés had also opened which were in direct competition with Giovanni. In addition Giovanni is aware of the current economic climate and would like to find a way to carefully plan the future of the business.
Giovanni is also a little concerned about delivery, how to recruit the best employees and how to ensure they find the correct address quickly and the best routes, especially during rush hours. He has chosen to deliver within a fifteen-mile radius from his café, and intends, in his new expansion, to employ thirty people as part time delivery staff.
Giovanni has traded now for ten years and has made a substantial profit. Giovanni knew that the first few years of any new business are always difficult and so he is happy that he has been very successful. However, he knows that in order to now expand further and to ensure he is able to compete on speed of delivery, price and quality, he needs to think “outside the box” – he cannot afford to rent any more space on the high street, yet he knows that it is important for him to increase volume sold and hence turnover.
You are a consultant who has been employed to advise Giovanni on the effective implementation of these strategic changes. You are required to produce the following:
This question belongs to marketing and discusses about the effective implementation of strategic changes to Giovanni’s pasta.
Word count: 2859
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