The president of Vista Foods Inc., was faced with the task of improving Vista's overall poor profitability and decreasing cashflow. Despite tremendous sales growth in the company's current five pasta product lines, the company had sustained losses in both of its first two years of operations. Recently, Vista's management team had suggested the options of expanding its product line into the unflavoured pasta market and/or adding an internal salesforce in Ontario. There were a number of factors the president wanted to consider before making any recommendations regarding the future direction of Vista.