DOW CHEMICALS

In this report there are vertical analysis and horizontal analysis with these two companies. The comparison between the

From 1976 to 1982 the compound annual growth in net sales was 18.5% and the compound annual growth of after tax profit was 25.9%. Therefore, a 10% net sales growth shown in the proforma financial data seems reasonable.

account for 35 percent of total corporate sales volume and have become the fastest growing category of trade. All three companies sell to this category of trade. This trend is

Vincor International goal is to become one of the top five wine companies in the world in terms of earnings. In order to attain this goal they have implemented a corporate strategy that focuses on using their existing powerful position in market to help them developing sales, marketing, distribution capabilities on an international scale. The strategy also includes acquiring new wineries and wine brands in new emerging region in the wine market also called “New World regions”(Vincor, 2005) throughout the world.

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.

Net sales increase has been driven by a moderate average growth in the US Retail segment (3.8%), coupled with the expansion in the International business (13.4%). The big year on year increase of

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

Retailers. The current trend, further than the wine market, is clearly the concentration of the “off-premises” retailers. The well known Wal-Mart and others became very large retailers, concentrating as well high bargaining leverage. For example, Costco is currently the largest wine retailer in the U.S.

For the purposes of this case analysis of E. & J. Gallo Winery, the wine industry is composed of all alcoholic beverages that contain between eight and twenty percent alcohol by volume. This distinction is based on the assumption that beer and the typical malt liquor contain less than eight percent alcohol by volume. The twenty percent limit is a result of state and federal tax and licensing laws. The three top competitors that are identified in this case study are E. & J. Gallo, Canandaigua and Mogen David.

Recently, in 2015 Diageo took another step towards focusing on its core business and competencies, and sold off their wine business. In the alcohol industry wine is a very competitive business, and within

Diageo, one of the world’s leading consumer goods companies, was formed from the merger of GrandMet and Guinness. In 2000, the company announced its intention to sell its packaged food subsidiary, Pillsbury, and 20% of its Burger King subsidiary. Because of the restructuring opportunity, the company wanted to rethink its financing mix.

an industry trade publication, as shown in the analysis presented in Exhibit 1. Domestically produced wine, predominantly from California, made some inroads into the

|For example in 2004 Interbrew and AmBev merged to form the worlds largest brewing company in terms of volume ( ).Since then Miller |

Diageo offers scotch whiskey, other whisk(e)y, vodka, rum, liqueur, tequila, gin, local spirits and beer and brandy; Diageo has the market leading whisky (Johnnie Walker), Vodka (Smirnoff 1818) and rum (Captain Morgan) brands and four out of the top ten RTD brands (Smirnoff

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition