1. Identify the risks and the benefits The Pasta Shoppe faces by operating as a
ID: 336746 • Letter: 1
Question
1. Identify the risks and the benefits The Pasta Shoppe faces by operating as a global business.
2. Identify some of the barriers that companies such as The Pasta Shoppe encounter as they expand internationally. What creative steps can entrepreneurs take to overcome these obstacles?
3. What steps do you recommend that innovative entrepreneurs, such as John Aron, take before they make the decision to take their companies global?
Selling a Simple Product to a Global Market Then in 1998, The Pasta Shoppe entered its first interna tional market, Japan, which remains its largest market outside the United States. Its success in Japan is due to Japanese interest in Western celebrations and holidays. John Aron recognized that international markets would extend the company's season for its holiday products due to the earlier production needed to move its product to Japanese distributors. The company quickly learned that to be successful, it had to customize its products and packag ing to fit the Japanese consumer market pe The Pasta Shoppe's first entry into Japan had to be cut short in 2000 due to the outbreak of Asian flu. Because the two years it sold in Japan were highly successful, the company reentered the Japanese market in 2003 after the Asian flu scare had passed Based on its success in Japan, The Pasta Shoppe now exports to Canada, Australia, the United Kingdom, Mexico, Chile, and Guam. The company is currently attempting to develop distribution into the Philippines and South Korea. However, although the Arons Courtesy of John Aron The Pasta Shoppe, located in Nashville, Tennessee, manufactures and distributes pasta. John Aron and his have tried, they have made no headway into exporting to China When considering a move into a new international market of The Pasta Shoppe, first came up with the idea for a pasta busi- tion to the quality of the foreign distributor and projected cas e Carey, cofounders the Arons use specific criteria to assess its attractiveness. I ness while on their honeymoon in Italy. They were inspired by the flow, timing is everything. The company looks for internat many shapes of pasta they discovered as they traveled through- sales that do not conflict with sales in the domestic market, whi out the many regions of Italy. What differentiates The Pasta Com p pany from its competitors is that it makes pasta in a variety of fun market remains its most profitable mat shapes that are tied to people's favorite college sports teams and to various holidays, such as Christmas, St Patrick's Day, Halloween, Shoppe. "It's our toughest priced sales and Thanksgiving. The Arons found a way to Americanize th riety of pasta shapes that had caught their imaginations while on their honeymoon peak from September through December, because the U.S rke Pricing is key to success in international markets for The Past channe says Aron 1. Identify the risks and the benefits The Pasta Shoppe f by operating as a global business Rather than compete with other mass production pasta busi Identify some of the barriers that companie Pasta Shoppe encounter as they expand internationally What steps can entrepreneurs take to overcome these s The nesses, the Arons chose to build the company by focusing on small batch production using high-quality ingredients and a carefully de- signed manufacturing process. The company buys all of its wheat from the Dakotas and uses specially designed bronze tools to cut the pasta into the various shapes. The Pasta Shoppe dries the pasta over night in carts, rather than using the speed drying machines favored by large manufacturers. Its products are sold online, through specialty tailers, and as a fundraising product for schools and youth programs The Pasta Shoppe is able to more favorably price its products by a What steps do you recommend that entrepreneurs such a John Aron take before they make the decision to take the compani 3. Based on John Aron, personal commun void- Re singer, "Pasta Shoppe elbows in on international markets," Nashville Busi urnal, November 12, 2010, www.bizjournals.com/nashville/print-edition/201 12/pasta-shoppe-elbows.html?page-all; Carey Aron, "Why Fun Pasta- The 1 www.allreadable.com/vid/why-fun-pasta-the-pasta-sho The company has experienced strong growth in the U.S. market since Shopes Readat it was founded in 1994, even during economic downturns ng selling through mass retailers, which typically demand discountsExplanation / Answer
Answer:
“The Pasta Shoppe”: “The Pasta Shoppe” is located in Nashville, Tennessee. It engages in manufacturing and distribution of Pasta. John Aron and his wife Carey are the co-founder of this company.
Identification of risks “The Pasta Shoppe” faces by operating as a global business: Following key risks are as below
Identification of benefits “The Pasta Shoppe” faces by operating as a global business:
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