Company Analysis:
1. Introduction:
Paderno or Padinox Inc. started in early 1990’s when Jim Casey bought it from its Italian owners.
The company was facing bankruptcy when Jim bought it from its owners. Jim quickly found out that
his newly bought company needed immediate resuscitation in terms of management and cash
injection. Therefore, Jim surrounded himself with his most trusted friends and family and over turned
Paderno’s fledgling condition into a profitable company. Paderno is now world Class Company who
is repute is well known in across the globe for its finest 18/10 grade stainless steel
utensils[CITATION Jim08 \l 1033 ].
2. Management Strategy:
When Jim bought the company during its bankruptcy, Jim adopted a strategy where he was involved
in practically all aspects of the business for several years. Jim’s strategy was to revitalize the
company from to top to bottom using his astute leadership skill and sales strategy[CITATION
DAV11 \l 1033 ]. He took care of financing and marketing. He was seen as Paderno’s Chief
Salesman at that time and did not leave any stone unturned[ CITATION Jim08 \l 1033 ].
Jim’s strategy not only involved major retail stores but he also took keen interest in having his
product in smaller and more localized market to attract local buyers and eventually he started
opening his own retails stores to increase his profit margins. The strategy here was to develop the
market and then take over the rein from major stores and control the finance by retailing through
Paderno’s own retails stores[ CITATION Jim08 \l 1033 ].
Jim’s strategy not only revitalized Paderno which was once a company facing
bankruptcy[ CITATION DAV11 \l 1033 ]. But also transformed a company which was employing a
handful of employees and earning revenue around $600,000 in to a company with respectable highly
skilled employees with an annual turnover of tens of millions of dollars[ CITATION Jim08 \l 1033 ].
Paderno today has evolved into a family business. Jim’s son Tim took over the reign from his father
and is carrying out Jim’s legacy[ CITATION DAV11 \l 1033 ]. In addition to Tim being president of
the company, Jim Casey’s daughter Joanne Casey-Allen is in customer service; his son Sean, a
lawyer, is a director. Joan, too, is a director. And four of Joan and Jim Casey’s grandchildren find
summer work with the company[ CITATION Jim08 \l 1033 ].
3. Financial Health:
The balance sheet from Paderno Annual sales indicates that company heavily relies on its Factory
Sales Dealers and National Chains to move its stock and earn profits. It is interesting to note that
even though Internet sales are not as great as Factory Sales or National Chains, but it is actually
earning Paderno more profit if we compare it Factory Sales Dealers and National Chains on a one to
one basis. The company on an overall basis is making profit but there is a lot of room to improve.
Especially the blowout sales campaign needs a new strategy to reduce cost of haulage and increase
the volume of sales Below is a brief summary of the financial health of the Paderno from its balance
sheet:
Financial Health of Paderno
National Dealers Internet
Nat.
Internet Factory Stores Blowout Total
Sales $
4,538,398.00
$
9,487,820.00
$
492,180.00
$
471,174.00
$
2,925,560.00
$
3,506,834.00
$
21,421,966.00
Net Sales $
4,452,916.00
$
9,932,556.00
$
551,994.00
$
447,316.00
$
2,925,560.00
$
3,506,834.00
$
21,817,176.00
Cost of Sales $
3,530,874.00
$
6,621,550.00
$
300,279.00
$
360,260.00
$
2,090,898.00
$
2,260,856.00
$
15,164,716.00
Gross Margin $
922,042.00
$
3,311,006.00
$
251,715.00
$
87,056.00
$
834,662.00
$
1,245,978.00
$
6,652,460.00
Selling Expenses $
166,528.00
$
2,532,090.00
$
110,190.00
$
31,880.00
$
95,128.00
$
900,038.00
$
3,835,854.00
Net
Contribution
$
755,514.00
$
757,616.00
$
141,525.00
$
55,176.00
$
739,534.00
$
345,940.00
$
2,795,306.00
% of Sales 16.65% 7.99% 28.75% 11.71% 25.28% 9.86% 13.05%
% of Pro&t 21% 33% 46% 19% 29% 36% 30%
4. SWOT Analysis:
The above chart highlights the Strengths, Weaknesses, Opportunities and Threats to Paderno business. It
can be seen clearly that there is an opportunity to improve in Internet and Blow out sales campaigns,
while at the same time certain areas such as national Chains and Factory Sales Dealers are strengths.
5. Growth Indicators:
From above chart, it is evident that while Factory Sales Dealers and National Chains are heavy
hitters in terms of moving large volume of Paderno’s stock into the consumer house-holds but there
is also a large cost of sales with these traditional methods of doing business. Also, there is not a lot of
lot of room to move around unless a new arrangement of profit sharing is realized between Paderno
and its partners i.e. Factory Sales Dealers and National Chains. The balance sheet indicates that
Internet sales are not as large as Factory Sales Dealers and National Chains, but there is considerable
amount of growth that can be realized through aggressive internet sales campaigns. There is also lot
of room to improve the cost of sales in conducting Blow-out Sales in Canada and beyond.
Bibliography
Berman, Calleja and Daly. HOME MADE. 11 May 2011. Website:
https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20131025/ROBMAG_NOV2013. 28
October 2013.