Joe Cotrone, a sausage aficionado from the Northeast, relocated to Memphis, Tennessee in the late 1980’s, where sausage is mainly perceived as a breakfast food item. Joe had a vision of establishing a sausage company that created high-quality sausages with exotic spices and ingredients. He started Giusepppe’s Original Sausage Company in 1991, after enjoying modest success in selling his homemade sausages from behind a bar, and from a cooler in his car. In order to finance his young company, he participated in a cultural festival that gave him the opportunity to enlist outside financial backers. The company opened for business in 1992, selling primarily to local restaurants, retail grocery locations, casinos, and individual consumers. Sales volume was less than anticipated, until in 1997, Giuseppe’s Original Sausage, finally broke even.
The Problems (Weaknessess)
Giuseppe’s Original Sausage Company was not without its shortcomings in all areas of its business activities, from marketing and distribution strategy to basic financial procedures.
v First and foremost, the company lacks a true CEO, someone who is able and willing to lead the company into financial success. While Joe Cotrone makes great, high-quality sausage,he is lacking his leadership, financial, and marketing abilities are in the toilet.
v The company does not have a directed business strategy nor does it have formal operating procedures that it adheres to.
v Giuseppe’s accounting procedures are a disaster. Not only does the company not understand it’s costs of productions, they do not keep accurate records of any sort. Joe had to “scrounge up” sales receipts from a box to try to understand the financial situation of his company.
v The company does not utilize technology. ...
v Giuseppe’s has problems establishing relationships with new, sizable accounts, such as grocery chains, institutions, and casinos. The company is too focused on small buyers, like restaurants, which limits their sales potential.
v The market perception of sausage is that of a fatty, breakfast food. Giuseppe’s has not created a strong brand image to overcome this consumer belief.
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