INTEGRATED CASE STUDY
CASE 2: PLEASANT PASTA
Student Name: - Jivithra A/P Rajandram (012011111132)
: - Manimala A/P Sarguna (012012111280)
: - Piriya A/P Letchumanan (012012030016)
: - Shamila A/P Ganesan (012012030018)
Summary of Pleasant Pasta
Product: Produce dry pasta, in North America.
Objective: To become high growth industry from low growth industry.
The main issue are focus to rapid growth industry by using short – term strategy. There have several steps taken by management of Pleasant Pasta. There are to executing initial public offering (IPO), to developed a short – term strategy which would allow the company to achieve the rapid growth promised to its new investors, to focus on marketing its products under generic brand names owned by several leading grocery chains, and the awareness of failure in initial public offering (IPO) strategy lead them to choose ‘Extraordinary Performance’ strategy which will give impact on grow revenue, grow earnings, and earning per share (EPS) at all cost (started 2002).
Furthermore, to achieve the ‘Extraordinary Performance’ targets, Pleasant Pasta had difficulty met up with aggressive ‘Extraordinary Targets’. Demand for pasta had dropped due to increasing popularity of law – carbohydrate diet, Failure and dissatisfy of extraordinary targets performance, CEO create a task force to focus on ‘Closing Gap” between the extraordinary target and actual result, and the members of the task considered to use improper accounting practices to be part of the plan to achieve the ‘ Extraordinary’ activities.
Moreover, close the gap ‘Trade Promotion” expenses account was used to close the gap between actual and targeted profit. Product discounts, promotions, advertising, where increase expenses than budgeted expenses become accrued expenses. So, they make journal entries of promotional expenses into the brand acquisition cost where boosting...