Preview

Barilla Case Study

Powerful Essays
Open Document
Open Document
1728 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Barilla Case Study
BARILLA CASE STUDY REPORT

1. Introduction
Barilla was founded in 1875 in Parma, Italy by Pietro Barilla. It used to be a small store that sold pasta and bakery products. In the 1960s, it differentiates itself from competitors by producing high quality product with noticeable packaging and marketing campaign. In the 1970s, due to the big investment for pasta plant, Barilla was in huge debt and was sold to WR Grace (a multi national firm). Followed in 1979, the Barilla brother had enough money repurchased the company. In the 1990s, Barilla is one of the largest and most successful pasta manufactures in the world and dominates the European market.

2. Analysis

Barilla SWOT Analysis will be shown as below table Strength: * Long history on producing flour-based products * Cutting-edge manufacture facilities * High brand equity * Invest heavily on Promotion / Advertising * Wide range of products | Weakness: * Barilla is Barilla and retailer lack of communication, * Inefficient information flow, * Ineffective distribution system | Opportunity: * Just In Time Distribution system * Develop internal distribution system * Make use of the rapid growing export market | Threat: * Italian food’s market is flat * Customer’s preference is wobbly * JITD in need of high Tech and intense training |
Table 1. SWOT Analysis of Barilla

Barilla has two main distribution systems which are dedicated for dry and fresh pasta product, the difference due to its product shelf life. Dry pasta will have much longer shelf life than fresh pasta. 65% of the product will be shipped from the Barilla plants to Barilla core distribution centers, and then forwarded by Grande Distributionzione (GD) and Distributbuzione Organizzata (DO) to the chain supermarkets and independent supermarkets. The rest 35% will be shipped from the Barilla plants to the Barilla Run depots then from depots, it will be shipped to the chain supermarkets, independent



References: Coyle, Bardi, Langley 2003. The Management of Business Logistics, 7th edn, Thomson, Canada. Hammond, JH 2008. ‘ Barilla Spa (A)’, Harvard Business School Case. Kildow, B. A 2011. A supply chain management guide to business continuity. American Management Association, New York. Lee, HL 1997. 'The Bullwhip effect in Supply Chain ', Sloan Management Review, Vol. 3, No. 3, pp.93 Ram, R 2001. 'Taming the Bullwhip Effect ', Intelligent Enterprise, Vol. 4. No. 9. pp. 58 Walsh, P. R 2011. "Creating a “values” chain for sustainable development in developing nations: where Maslow meets Porter." Environment, Development and Sustainability. Vol. 13(4), pp. 789-805.

You May Also Find These Documents Helpful

  • Powerful Essays

    Manager

    • 3285 Words
    • 14 Pages

    The supply chain of pasta and pasta-related products in Italy was facing significant problems, including excessive inventory levels, high levels of stock-outs, extreme reliance on promotional activities, inefficient logistics operations and poor communication and cooperation between the supply chain participants. The industry had not leveraged technology to improve communication amongst its members, tracking of inventory or demand forecasting. These problems resulted in higher inventory carrying costs, as supply chain members sought to reduce the frequency and magnitude of stock-outs. Furthermore, industry suppliers competed fiercely on price, resulting in extreme peaks in demand during promotional periods.…

    • 3285 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    | Weaknesses- Not a strong online presence- Supplier dependence- Concentrated customer base- Single product line- Returns- Keurig defects- Capacity constraints…

    • 1351 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Leong, W. T. (2012). Principles of Supply Chain Management . Mason OH Page 54, 112-113.…

    • 1357 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Chipotle: SWOT Analysis

    • 563 Words
    • 3 Pages

    | Weakness * The priced menu items are quite high than some competitors. * Reducing of available source of ingredients nearby.…

    • 563 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    Costco Wholesale

    • 3086 Words
    • 13 Pages

    -Chopra & Meindl (2010): Supply Chain Management; Strategy, Planning & Operation 4th Edition Prentice Hall…

    • 3086 Words
    • 13 Pages
    Good Essays
  • Good Essays

    Stuffed Shells History

    • 710 Words
    • 3 Pages

    Barilla was the brand of jumbo pasta shells I choose for the dish, no particular reason, just one of the options at the store. However, I found a long history that started in the late 1800’s in Parma Italy. “In 1937 they launched a…

    • 710 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Barilla Spa Case Study.

    • 1033 Words
    • 5 Pages

    One of the underlying causes of the difficulties that the JITD program was created to solve was the effects of inconsistent demand that came from Barilla’s distributors. The extreme demand variation strained Barillas manufacturing and logistics, and made very hard for Barilla to meet that demand. For example, as noted on the case “the specific sequence of pasta production necessitated by the tight heat and humidity specifications in the tunnel kiln made it difficult to quickly produce a particular pasta that had been sold out due to unexpectedly high demand” (Barilla SpA).…

    • 1033 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Nestlé was the first mover in the ethnic food category with its Contadina pasta product. It has pre-empted Kraft which was representing the potential competitor in the category. With the objective of maintaining a 2:1 share ratio, Contadina has taken benefit from first mover advantage to maximize its market share and to establish its brand reaching $150 millions in retail sales in 1990. Nestlé purchase of Lambert’s cheese and Pasta Company was the key element to succeed in the competition with Kraft, it takes advantage from the technical and marketing background of the already established company in fresh food. The competition between Kraft and Nestlé continue in the fresh pizza product line, and it adds more pressure for both companies to reduce time to market and to get the first mover advantage. Extending NRFC portfolio to pizza product line was a normal step to get access to the $16.2 billion market. Pizza consumption culture was already well established with estimated 76% all US families had purchased pizza from restaurant within the previous six month and 60% of pizzas were eaten at home. For this reason NRFC was aiming to build its business by gaining delivered and takeout market shares.…

    • 2320 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Truearth Case

    • 2147 Words
    • 9 Pages

    TruEarth is a company that supplies gourmet meal products to grocery stores with strong emphasis in high quality ingredients, freshness, and healthy selections. The core competency of TruEarth is the use of whole grain ingredients to make home meal replacement products. TruEarth main product line composes of fresh pasta and sauce. Since product inception in third quarter of 2006, it has been greatly benefited from the higher than expected retail sales and profit margins. The success of this product was short lived as competitors threatened with similar product type and aggressive marketing strategies. In order for TruEarth to remain in the lead in this market, they have been investigating in a product line extension with whole grain pizza. The product development process is at or near completion; the dilemma for TruEarth is to determine whether to launch the whole grain pizza product to the market. The success of the whole grain pizza will rest on the ability to calculate the risk to the following key points:…

    • 2147 Words
    • 9 Pages
    Good Essays
  • Good Essays

    It’s possible to do this based on Barilla’s own logistics; the variation of manufacturing would make distribution work well. Furthermore, JITD will avoid either the accumulation of the inventory at the distributer’s warehouse or running out of stock for retailers. As Barilla is a vertical integration corporation, the rise and fall in demand would affect not only the pasta plant but also the raw material supply such as flour, transportation, etc.…

    • 1860 Words
    • 8 Pages
    Good Essays
  • Better Essays

    There is a large variability in demand. (GD’s and DO’s order once a week, in varying quantities, causing a bullwhip effect). This is strange, as the total market is relatively flat and nearly completely saturated. Because pasta is so common in Italy, people usually stick with their choice of brand, which is why demand should be stable for Barilla’s products. Therefore, the problem must be with distributors and/or retailers, not with actual demand of end-customers.…

    • 955 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Paper

    • 3076 Words
    • 13 Pages

    Barilla's has 25 manufacturing plants located all throughout Italy where each plant has a dedicated product that they manufacture ranging from pasta, flour mills, fresh bread and specialty products such as croissants and Christmas cakes. Raw materials, in the manufacturing process, were transformed to packaged pasta on fully-automated 120 meter long production lines. Each plant specialized in manufacturing a type of pasta with the main distinction being the composite of the pasta i.e. dry or fresh pasta, or pasta with or without eggs and spinach. Even within the same family of pasta products, individual products were assigned to plants based on the size and shape of the pasta. For example “short” pasta products, such as macaroni or fusilli, and “long” products, such as spaghetti or capellini, were made in separate facilities due to the different sizes of equipment required. The manufacturing process at Barilla was very precise. Flour and water were mixed to form dough, which was then rolled into a long, thin sheet. Once the dough was rolled to the desired thickness, the dough was forced through a bronze die screen which gave the dough its shape. After being passed through an extruder, the pasta was cut to a desired length. The pasta was then hung over dowels or placed into trays and moved slowly through a long tunnel kiln and moved across the factory floor. The temperature and humidity in the kiln were precisely specified for each size and shape of pasta and to keep changeover costs low and product quality high Barilla followed a carefully chosen production sequence that minimized changes in the kiln temperature and humidity. After being dried for 4 hours, the pasta was weighed and packaged.…

    • 3076 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Parma, Italy - January 31, 2007 - Harvard Business School has selected Academia Barilla for an in-depth look into its business in the prestigious annals of Harvard Business School's business case studies. Less than three years after its founding, Academia Barilla is one of the few Italian companies to ever get chronicled by Harvard. The Harvard Business School business case study for Academia Barilla recounts the last 10 years of the development of the Pasta market in the United States and illustrates how Barilla, and later how Academia Barilla, has made an incredible impact in the American food market that reaches far beyond pasta. In addition, the study sharply focuses on the role of Academia Barilla as a beacon of Italian Gourmet Food Culture and Gastronomy that protects and promotes authentic food products from Italy. From its gourmet food products line to its Academia Center in Parma to its newest blog Italian food culture. Its work in the gourmet trademark Made in Italy stamped on exported culinary classes and learning vacations at the – prides itself on being the vanguard of gourmet food space has done wonders for the authentic Italian foods since its inception in 2004.…

    • 482 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Sustainability Consulting

    • 3081 Words
    • 13 Pages

    Bibliography: Ackerman, B, Kenneth, 2007, “Fundamentals of Supply Chain Management”, DC Velocity Books, 1 Jan 2007, Pg 211…

    • 3081 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    TruEarth

    • 431 Words
    • 2 Pages

    The Cucina Fresca pasta was successful because of ongoing consumer behavior trends. There was a large market for Home Meal Replacements, a growth of refrigerated fresh pasta, believed to be tastier and more authentic, and a growing trend and awareness of whole grain, having consumers say “goodbye” to bad carbs. The pizza opportunity relates to the pasta opportunity in which TruEarth attempts to provide consumers with a healthier, refrigerated meal replacement. They also became successful because of their aggressive competition to Rigazzi when TruEarth was the first mover with healthier and tastier options than competitors.…

    • 431 Words
    • 2 Pages
    Satisfactory Essays