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Integrative Case
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Group 6 Leslie Sosa July, 1st 2010 Christophe Delachanal Sébastien Lacour Charbel Makhoul
BRL Hardy
Globalizing an Australian Wine Company
* Table of Content 1 Introduction 4 2 Hardy & BRL Merger & Acquisition Success Analysis 5 2.1 Wine Industry – Porter Forces Analysis 5 2.2 Pre-M&A Conditions - Evaluation 6 2.3 Post Merger Management 6 3 The “Stephen Davies & Christopher Carlson” Case 8 3.1 Sources of Tension 8 3.2 Steve Millar: Management of The Situation 9 3.3 Reflecting the situation – Global Management Teams 9 4 New Product Launch: D’instinto 10
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Changes in regulation, Medium 3/5
One of the major risk is from the government that can adopt more restrictive laws about alcohol and driving. There is a potential threat also on sulphite regulation. Finally, countries such as France and Italy try to protect their market with AOC and DOC denomination.
Economical trends, low 0/5
There is a good economical trend for BRL Hardy. The exchange rate is in favour for Australia in export. Furthermore, the market condition is very good thanks to local and international growth and Australian wine becoming trendy.
Social pressure, low 0/5
According to cardiologist, they are saying that one glass of good wine is healthy.
Technology breakthroughs, high 4/5
Large-scale wine suppliers from New World countries (US, SAm, SAf, Australia) were exploiting modern viticulture and more scientific winemaking practices to produce more consistent “high-quality wines”.
Additional forces: Complements 0/5
No comment.
Pre-M&A Conditions - Evaluation
Before BRL and Hardy’s merger they were considered rivals with different point of views in their strategic process to the wine industry that led them each to have a different organization overall. Hardy was known for its polite and traditional approach with award winning quality wine and BRL’s approach was focused on an aggressive and commercial culture that followed its fortified, bulk, and value wines.
Hardy started out strong, a family owned business
Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.
Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.
The supply of grapes, apples, bulk wine and grape juice concentrate for Vincor’s wine products comes from a combination of sources. Privately owned vineyards (Canada, U.S., Australia) provide somewhere between 35% to 57% of the raw products needed to
Prior to the BRL and Hardy merger both companies were rivals with diverse views of the wine industry. Due to the varying views both companies had different organizational structures and approaches.
The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.
The assignment for this week was to write a paper based on the case Global Wine War 2009: New World versus Old. We experienced that it was an interesting case considering both Porter’s five forces model and Resource-Based theory, because they give two different perspectives of competitive advantage: Outside in and Inside out. Besides that we could have a closer look at innovations and what they mean for the competitiveness in the world wine market. In this paper we make an effort in explaining what the main aspects
Table Wines in the United States must contain less than 14% + 1.5% ABV (12.5 – 15.5% ABV) but when we look at European wines their ABV is 8.5 – 14.0%. In places like Italy and France wine is served throughout the day, many times at each meal. Imagine if the wines were at 17% ABV there would be a tremendous effect on the work
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The astonishing success of Chile and Argentina relies upon regional factors. The 'Wine Belt' of South Usa is showing is the best world's best growing conditions that's why the nations about this belt are creating world-class wines
Beauchamp are proud of what they are, feel what they are doing is time proven
This paper will zero in on compare and contrast two different regions which are Bordeaux and Burgundy in the same field: location, Climate and Terroir, and Grapes. Discuss the early history of the development of each region, including the specific examples. Then review the location, Climate and Terroir, and Grapes that rank the wines as among the best in the world. To conclude, look into the future of each region to analyze prospects for continued success.
The key issues of this force are the ease with which a wine producer can switch between the different input suppliers and of course the bargaining power of both the supplier’s and the buyer's (in this case the wine company's) party.
The Aproveche family owns and operates a small independent winery located in the Napa Valley California American Viticultural Area (AVA).1 À Votre Santé (AVS), which means “to your health” in French, enjoys a reputation for producing small amounts of quality wines. AVS was started by Jerome Aproveche in 2005 as an extension of the family’s grapegrowing operations and as a means to involve his children in the wine business. This path is not an unusual one in Napa Valley, where there are more than 600 grape growers and over 500 wine producers and blenders, many of which are small family-owned
New Zealand has always been known for its untouched beauty, landscapes and its extremely good quality grape varieties and wines. the Weather conditions in this part of the world is best suited for growing excellent quality vines. this study will be showcasing the history of New Zealand wine, Where it originated from and when did it make its mark in the best quality wines of the world. With grape varieties like sauvignon blanc, pinot gris, chardonnay, pinot noir and Riesling etc, this study will be discussing on the most important grape varieties grown in this region and the specialities of these kind of vine varieties. The study will also be throwing light on the different wine growing regions of Marlborough, Hawke 's bay, Central Otago, Wairarapa, etc which contribute to extensively in producing best quality wines of the New Zealand. Although New Zealand is considered to be one of the best regions of the New world wine making, it faces a huge amount of competition from European and Middle-Eastern countries which are considered to be the old world wine makers or where wine making actually originated (Wiine 101:The guide to Old World wine Vs The New World Wine) and also from other countries which are posing a great threat to the wine making industry. The following study will also discussing about the sustainability and the future of wine making industry of New Zealand which is growing in a steady pace and making its mark in the best wine regions of the world.
BRL Hardy company wanted to focus on quality branded bottle sales for growing. Millar felt that the management of the Hardy team had a potential, but the experience and resources of the company were inadequate for important decisions. In other words, a more centralized management was needed to be able to make more risky decisions.