In 2005, Anna Amphlett and Andrew Ferris Aussie Pies founded to produce and distribute authentic Australian meat pies after observing the popularity of the pot pies on a visit to Australia. Seattle’s Pike Street Market was chosen for the location of the first store, because it is a popular destination for international travelers who are willing consumers of new and exotic products had been. After initiation of an aggressive sales and marketing effort, and the introduction of new products, Aussie Pies gr … Read more »

In 2005, Anna Amphlett and Andrew Ferris Aussie Pies founded to produce and distribute authentic Australian meat pies after observing the popularity of the pot pies on a visit to Australia. Seattle’s Pike Street Market was chosen for the location of the first store, because it is a popular destination for international travelers who are willing consumers of new and exotic products had been. After initiation of an aggressive sales and marketing effort, and the introduction of new products, Aussie Pies quickly grew from a single store and a turnover of $ 6 million in 2006 to 10 stores and annual sales of $ 10,350,000 in , 2009. However, the company’s rapid growth was accompanied by declining profits and revenue in a significant increase in receivables, inventories and investments in new businesses. The resulting outflows were financed by increased borrowing from the Bank of America as well as stretching and services of the company, that is, the longer to pay suppliers. Bank of America reluctantly increased the maximum amount that the Company within their loan for $ 3,000,000 from $ 2,000,000. January 2010 was Jan Muska, the company’s chief financial officer, unsure whether the new credit limit would allow the company to implement its growth strategy, the opening of five new stores in 2010.
This is a Thunderbird Case Study.
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from
Graeme Rankine
Source: Thunderbird School of Global Management
6 pages.
Release Date: 08 November 2007. Prod #: TB0089-PDF-ENG
Aussie Pies (D) HBR case solution

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