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Shannon Cleary
Exam One
ADMN 703
Joseph’s Gourmet Pasta & Sauces: At A Crossroads
Joseph’s Gourmet Pasta & Sauces, a provider of high-end frozen specialty pastas, was
doing extremely well in their niche market, claimed by CEO Joe Faro in 1995, until an alarming
decline in sales occurred in the first fiscal quarter of 2011. The company cannot seem to pinpoint
and agree on one main cause for the decline of 6% in a single quarter, but the drop in revenue
left the company at a serious crossroad for the future.
Internal Analysis
One of the first things that stands out in this case is the poor delegation of management roles and
tasks. CEO Joe Faro currently runs or is largely involved in all of the major management
positions, consisting of production, R&D, and most of the major sales accounts. This tendency to
control every aspect of the company is leaving Joe stretched too thin and far between, when the
responsibilities should be evenly delegated between a strategically structured management team.
This is a critical strategic error and it is apparent that the business model would be significantly
stronger had Joe created a strong executive and upper level management team. One of the major
