Friday, April 12, 2019
Globalizing an Australian Wine Company Essay Example for Free
Globalizing an Australian Wine Company EssayThe companys strategic vision is to become the worlds first truly global wine company. As CEO and managing director of BRL Hardy Europe, Carsons contribution and achievements had been significant with a 10 fold join on in sales volume, in a tenure spanning just seven years. He successfully dark around Hardys U. K. business by implementing cost cutting initiatives and ensuring strong systems, policies, and control.Millar, CEO and managing director at BRL Hardy fol confuseded a decentralized approach to management. He believed in delegation and adequately co-ordinated culture and management style into the merged corporation. The U. K. market contributed significantly to BRL Hardys revenues and represented 40% of Australian wine exports. In U. K. , the fighting greases, namely, Stamps and Nottage Hill, were positioned at damage points of 2. 99 and 3. 69 pounds respectively. As low price good quality wines, they accounted for 80% of the value and volume of the Hardy soil sales.As the chain of mountains of these brands began to erode, Carson decided to relaunch them by relabeling and repositioning the wines. Carson insisted that sales performance in U. K. depended on efficient labeling that should not be completely dictated by the Australian management. Although management was skeptical about local control everywhere branding, labeling, and pricing decisions, the move significantly boosted the fighting brands sales. As the fighting brands gradually moved up the price points, there was an opport building blocky for an entry level wine that could be priced lower than 4. 9 pounds. In depict with the companys vision of becoming an international wine company, Carson decided to tap non-Australian wine sources and modernize a line of branded products that could utilize the companys strong distribution channels. This dodging would leave behind vital scale economies, minimize harvest risk, capture rationalizing s uppliers, and avoid currency-driven price variations. Carson proposed the brand Distinto, an Italian venture with a Sicilian based winery.He wanted to develop a recognizable brand which was easy to buy and had global potential. The wine would be positioned to the average wine consumer and would help the company leverage distribution. The Australian home office believed that Distinto would eat into the fighting brands share as they were positioned at almost standardised price points. Carsons earlier Chilean venture, Mapocho had proven troublesome and Millar was doubtful if the European unit could resist another brand. While Millar recognized U. K. s strong performance and wanted to give Carson as lots freedom as possible, the reality was that the Italian venture would stretch the tight human resources of the European unit and dilute focus from the overall corporate strategy. While the Italian venture was being proposed, the Australian headquarters had launched Banrock space, an e nvironmentally responsible product at a similar price point. Australian management believed that the brand had global potential and had instructed areas to launch it appropriately.Miller, away from the frontline and external demands of the local customers, has to support Carsons entrepreneurial experimentation and dynamism. However, the proposal to launch Distinto should not be approved. It is imperative that the business strategy fit in spite of appearance the broader corporate strategy of the organization. Although Carsons proposal represented strategic interests, it ran counter the corporate strategy of maximising global efficiency. Distintos launch would certainly come with financial implications and would also stretch the direct capabilities of the European unit.On the other hand, Banrock Station had already established itself in a few markets and a strong launch in Europe would only increase scale economies. Distinto had an innovative strategy with catchy and attractive la beling and a distinct image capturing the Mediterranean lifestyle. This positioning would definitely appeal to the board U. K. consumer and also to the U. K. retailers, who represented the majority of sales. However, there is no certainty that this strategy would prove equally successful globally.While Distinto would provide short term results, it is important to understand the long term viability that Banrock Station offers. Global consumers are increasingly emerging into environmentally conscious populations that expect corporations to take responsibility of internal resources and the environment. Although through Distinto, Carson aims to build a global brand, Banrock Station appears to be better positioned in a converging global market. In order to build a true global brand, Miller mustiness establish consistency across organizational units and ensure that the vision is shared by all.
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