Mutti S.p.a. Assignment

The first part of this assignment is to develop a strategic issues synthesis for the Mutti S.p.a case study. Your synthesis should include completing the following steps: 1. Identify core competencies and competitive advantages;
Premium Product/Quality Driven - V
Strong Relationships with Suppliers - VR
Is in 25 different Markets - VR
Technology developments - VRIO

2. Conduct a scenario analysis (Decline, Leap Ahead, Same But Better);
Decline Scenario: If Mutti does not branch outside of just using Italian tomatoes, then there is a limit to how much their market can grow because of the limited supply of tomatoes in Italy. The consumers may also move more towards the private label buying less of Mutti’s products which could be awful for Mutti S.p.a.
Leap Ahead Scenario: If Mutti realizes that it must change and adapts to using more than just Italian tomatoes, but can still retain their image and successfully enter new markets then they can continue to move forward.
Same But Better Scenario: To improve on their current scenario, if Mutti can continue to dominate its’ market share in Italy by continue to supply a premium product and holding on to its’ company culture. Mutti could also look into starting up their own greenhouses and growing a premium quality tomato themselves. This way, they can supply more tomatoes to their customers in the future.

3. Evaluate the strength, weaknesses, opportunities, and threats for Mutti S.p.a. using the change grid.
Strengths: > W * Dominates Italian Market Share * Relationships with Farmers * Quality and Brand Recognition
Weaknesses: < S * Lack of Presence in non-European markets * Complexity of Sales/Packaging
Opportunities: > T * Foreign Markets and Partnerships * Access to Capital
Threats: < O * Increase in Consumer Demand for Store Brands * Decline in Italian Economy
Because of the strengths that Mutti S.p.a. possesses as well as the threats and Opportunities that it has, in the Change Matrix I would have to say that they would be in between offense and diversification. They have opportunities that they can take advantage of in foreign markets and partnerships and the decline in the Italian Economy could be a real impact if they do not seek new markets.

4. Identify the strategic issues that need to be addressed moving forward for Mutti S.p.a.
You only need to consider information presented in the case study to complete this assignment, no outside resources are necessary. Your report is limited to 2 pages.

A clear issue for Mutti is if they are going to continue to grow without hurting their company culture and brand. Their products are 100% Italian and if they are to try and keep expanding, they may not be able to use strictly Italian tomatoes for their products. If they were able to keep their premium image without sacrificing quality, they will be able to venture into new markets. Also, with consumers buying private-label, they have to show the value in their product more, especially in the fluctuating economy of Italy where people are becoming more price sensitive.