Aussie Pies (C)

Case Solution

Graeme Rankine
Thunderbird School of Global Management ()

Aussie Pies, Inc. was founded in Seattle, Washington in 2005 after Anna Amphlett and Andrew Ferris discovered Australian meat pies while on vacation in Australia. Meat Pie, a hand-sized pie with pies filled with minced meat and gravy, is eaten as a take-out snack in Australia. To obtain funding from Bank of America, the company’s business plan initially called for revenues of just over $ 1 million in its first year of operations in 2006. But with an aggressive sales and marketing campaign, sales reached 6 million. dollars in 2006. Although sales far exceeded their expectations, Amphlett and Ferris were disappointed to find that net income for the first year was just $ 786,000 and the company had cash on hand at the end of 2006 of just $ 200,000.

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