San Remo Macaroni Company: Case Study

Introduction

The San Remo Macaroni Company is an Australian food company located in Adelaide, South Australia, and the founder of this company was Lugi Crotti in 1936, who came from Italy to Australia (San Remo, 2023). The major role of this company is to provide good quality in a competitive world of pasta. This company has been working in this field for more than 30 years now.

This company has led universities, local researchers, and farmers to produce wheat and supply it to the San Remo Macaroni Company. It is the largest company in New Zealand and also in Australia. This company invests 50% share in the market areas and also does online marketing or advertisement to reach customers (needl., 2023).

It has exported dry pasta and is famous for fresh, tasty, and flavorful pasta varieties. The following case study report will provide a brief description of the problem faced, the solution to the problem, and a brief analysis of some additional aids.

Problem Analysis

The problem analysis is the demand for products is less, which affects the company. To manage the finances and search to stay profitable, this company has been facing a lot of challenges lately. In this food industry, it is risky to manage things seamlessly.

• Climate Change: Sometimes weather events increase, and it creates problems in business for long or short periods, such as floods, storms, earthquakes, etc. It negatively affects production processes and product supply. Customer purchase decisions might be affected due to climate change also. In the growing corner to changing climate, consumers might change their purchase attitude due to environmental concerns. For these reasons, some savvy customers might tend to eliminate brand products.

• Customer purchase attitudes: Customers might tend to change their minds because of other available brands in the market or climate might be the reason too. When another offer starts building popularity while leading to a specific population, customer buying decisions change, impacting the company.

• Skills Shortage: Sometimes a company faces two problems, that is- shortage of employees and unavailable talented employees. New technology changes the demand of customers, and employees structure changes in occupations. In the company, there is a lack of experience with employees, and there is no guarantee of jobs or shortages in skills of employees, communication skills are weak, lack of knowledge of technical tools.

• Currency rising or falling:  Currency fluctuations are the main cause of cash flow in any business, which impacts importing goods or services and exporting materials. Currency fluctuations mean earning less to pay more for importing the goods. It is the Australian dollar, which accounts for a big loss to the company when falls (Office for National Statistics, 2022).

• Rising Inflation: The rising cost, pressure of living, and inflation change the minds of customers. Consumers' income is low, and they always look for options that save money. Rising inflation might change the customer perspective of income, and they demand cheaper brands, which affects the company (Flynn, 2017).

Provide a Solution

These reasons for business loss play an important role in boosting businesses at the current time. In a world where the population is increasing, and food demand is also high globally. The business concept of adopting small-scale businesses generates income and creates an opportunity for consumers to receive healthy foods. It gives proper information to consumers about the eco-products, and how they build cold storage.

It is easy to import cheap raw materials and export good-quality products. In a business model, building a new market product and value, it is easy to receive reviews from consumers. Through this option, the business can increase the demand for products, and promote sustainable and healthy food in the communities.

The food business to receive pricing, labeling, recipe management, sourcing, and other activities from popular providers will be good. It will help in production quality control, which regularly follows the quality and cleanliness in every step, including the part of food distribution and food manufacturing by the brand.

Using new technology devices or tools helps to grow in business. The pasta supply requires checking the level of the processing plant that controls the pasta production, which is a legal requirement (safework, 2023).

Another solution to be suggested here is the target population of customers and consumers. The food supplier must target teenagers and young enthusiasts, which will be again beneficial to the company, and act on another side as an advertisement.

Additional Methods to Help the Organization Grow

• Managing the price: It will be beneficial to provide the best possible rate for the products, and they make a profit for the company. By carefully costing and pricing products, the company can reconsider its profits. It takes care of the commissions and discounts, which depend on various factors to come up with profit for companies. The company can divide the work into groups, which could be easy to handle and can manage the costs of employees.

• Manage the supply chain: The food company must provide good products and quality to the consumers. The company plays a great role to the suppliers in food solutions to help in managing quantities and discussing price, timely payments, and quality with the supplier. The company needs to provide fresh and perishable pasta, which is healthier for the customers.

• Food Waste and Management: Food waste management is connected with social problems and economic problems. Sometime a year, 2.1 billion tons of food waste affect the environment, and there is the highest number of people in developing countries that waste food. To avoid excess damage to the company’s products, this step has to be ensured.

• Manage Food Distribution Processes: Accurately, 843 million people are from poor countries, and they require this food which can satisfy a large number of hungry people. So, the company must reduce the production and instead distribute some food to poor regions. The company must reduce the quantity of food supply so that the food is not wasted (Garcia-Garcia et al., 2016).

Revealing Real Business Difficulties

When the company discovered the real business, there was a high prospect of digital applications for selling and advertising the products for the future. However, the lack of smart or digital tools to solve food problems was also applicable (Foodiv, 2023).

There is a need for cost for producing the food in time, need for labor, and money to prepare healthy food do not waste time, effort, and money. To progress a food supply chain, the company must work in the direction to improve facilitating meal preparation, which increases the food supply systems. It also shows the trust and loyalty of suppliers and consumers.

To take on better planning of new ideas of business policy, digital technologies, and skilled employees are needed. To advertise products and provide an online product with the best price to customers, a strategy is needed. Climate challenges to farmers and product supply, which is a concern might need additional costs but have to be covered. The firm can target small firms to provide raw materials easily and become profitable.  

Also, there is a need for retailers, supermarkets, suppliers, and technical and skillful employees who manage to company. By clearing all these concerns, the food company can work on its declining demands.

Specific and quantifiable Results

The company researches wheat and grains, and the company uses durum wheat and molecule components to interact with others, which creates premium pasta quality. This interaction will increase the starch properties between a protein and the grain so that the final quality becomes better.

Then, pasta while cooking changes its color. In the quantified scenario, it is a popular weight loss diet, and it is different. This can become a point for advertising. Internationally, the traditional nutrition composed in this pasta can be promoted globally (Rosi et al., 2020).

The company must also focus on metrics such as sales, financial metrics, Accounting metrics, marketing metrics, and so on. The company needs to know how much people eat pasta and how much profit to company is, to get hands-on advertisement for the company.

Conclusion

According to the overall understanding of this company and to collect knowledge from the employees and small firms, information is to be gathered to analyze the profit of the company and management of raw materials, which sometimes positively and negatively affects the business.

In a company, suppliers provide fresh and perishable pasta, which is at an affordable price. In a company, people need to behave employee-friendly to make better and more understanding relationships.

In San Remo Macaroni, there are endless reasons for how the company can solve the lower demand and supply problems. This company is named and famous in the world for pasta. Food services are provided in supermarkets and grocery wholesalers, and online ordering must become easy for customers, which also economically benefits the business. The company must still focus on or target health-conscious people, which will prove beneficial to the company.

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References

• Flynn, J. (2017). San Remo Pasta: Swot Analysis, By James Flynn. [online] prezi.com. Available at: https://prezi.com/p/u0l2ugqy2sqo/san-remo-pasta-swot-analysis-by-james-flynn/

• Garcia-Garcia, G., Woolley, E., Rahimifard, S., Colwill, J., White, R. and Needham, L. (2016). A Methodology for Sustainable Management of Food Waste. Waste and Biomass Valorization, [online] 8(6), pp.2209–2227. doi:https://doi.org/10.1007/s12649-016-9720-0

• needl. (2023). https://needl.co/company/. [online] need. Available at: https://needl.co/company/sanremo/

• Office for National Statistics (2022). Recent challenges faced by food and drink businesses and their impact on prices - Office for National Statistics. [online] www.ons.gov.uk. Available at: https://www.ons.gov.uk/businessindustryandtrade/business/businessservices/articles/recentchallengesfacedbyfoodanddrinkbusinessesandtheirimpactonprices/2022-04-04

• Rosi, A., Tesan, M., Cremonini, A., Biasini, B., Bicchieri, L., Cossu, M., Brighenti, F., Dall’Aglio, E. and Scazzina, F. (2020). Body weight of individuals with obesity decreases after a 6-month high pasta or low pasta Mediterranean diet weight-loss intervention. Nutrition, Metabolism and Cardiovascular Diseases, [online] 30(6), pp.984–995. doi:https://doi.org/10.1016/j.numecd.2020.02.013.

• safework (2023). San Remo Macaroni Company Pty Ltd. [online] safework. Available at: https://www.safework.sa.gov.au/__data/assets/pdf_file/0011/476669/San-Remo-Macaroni-Company-Pty-Ltd.pdf

• San Remo (2023). San Remo. [online] San Remo. Available at: https://sanremo.com.au/