Preview

Wine Industry Analysis of China

Powerful Essays
Open Document
Open Document
7515 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Wine Industry Analysis of China
China, India & Wine | May 19
2011
| Assessing the global environment and developing solutions for Australian international managers: a WebQuest. (5461 words) | Sheena Bobeechun Troy Credlin Sarah Duff Audrey James. |

Table of Contents Executive Summary 3 PESTL Analysis 4 Political & Legal Factors (Author - Sarah Duff) 4 Economic Factors (Author - Sheena Bobeechun) 5 Social & Cultural Factors (Author - Audrey James) 7 Technological Factors (Author - Troy Credlin) 8 Managing Ethics (Author - Audrey James) 9 Strategy & Entry Mode (Author - Sheena Bobeechun) 11 Global Human Resource Management 13 Linking with Strategy (Author - Sarah Duff pp. 13-15) 13 Staffing Policies 14 Training & Development 14 Performance measurements 15 Engagement (Author - Troy Credlin pp. 16 -18) 16 Compensation 18 Labour Relations issues 18 References 20 SEE References 23

Executive Summary

The Australian Government is in the process of developing strategies to encourage West Australian wine makers to export their wine to either China or India. This report seeks to examine the global business environment and provide a deeper understanding of its risks and their implications for the international wine managers. Throughout this report discussions will lead to conclusions about management responses to firm level factors such as formulation strategy, developing alliances, creating a firm architecture and managing human resources when operating internationally. Key theoretical concepts and frameworks will also be included as a guide for understanding our recommendations.
Our key recommendations have been organised into four main aspects. These are; the risk appetite, managing ethics, strategy and entry mode, and human resource management policies.
Through our risk appetite analysis we found China to be our recommended country of choice when exporting wines from Australia. This conclusion came as China held
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Bonny Doon Analysis
    • 1373 Words
    • 5 Pages

    Bonny Doon Analysis

    Traditionally wine was seen as a “pretentious” product in U.S, but by the late 1990’s to early 2000’s, wine started to become a popular social drink for the masses. In addition, the market became more adventurous, demanding unusual “undervalued” wines instead of the traditional wines such as Chardonnay. The adventurousness was driven by “Generation X” and created a significant opportunity for wineries to meet this new unconventional demand. As the industry is still currently in its growth stage, the industry attractiveness is high. Wine is a relatively high margin product, and there is increasing demand domestically and internationally. Because of…

    • 1373 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    BSBMKG416A Assessment Task1
    • 1729 Words
    • 8 Pages

    BSBMKG416A Assessment Task1

    With the slow growth in domestic wine sales, accompanied by an oversupply of wine grapes export markets have become a key driver in sales growth. Watershed has focused its marketing efforts on Asia and in particular China. The high Australian dollar has impeded export growth, however exports remain the primary source of growth for premium wine sales.…

    • 1729 Words
    • 8 Pages
    Good Essays
    Read More
  • Good Essays

    Bonny Doon Case
    • 2560 Words
    • 11 Pages

    Bonny Doon Case

    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.…

    • 2560 Words
    • 11 Pages
    Good Essays
    Read More
  • Powerful Essays

    Beringer Blass Executive Summary
    • 1614 Words
    • 7 Pages

    Beringer Blass Executive Summary

    The management of Beringer Blass is working to build a strong global presence for their company. Beringer Blass has successfully opened offices in the three key world wine markets - North America, Asia Pacific, and United Kingdom/Europe – and has established distribution networks in the United States, Asia, Europe, and Australia. Beringer Blass’s global expansion is challenged, however, by its lack of products in its wine portfolio; specifically products marketed to Europe.…

    • 1614 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Changing Nature, Spatial Patterns and Ecological Dimensions of a Global Economic Activity: Viticulture Case Study
    • 956 Words
    • 4 Pages

    The Changing Nature, Spatial Patterns and Ecological Dimensions of a Global Economic Activity: Viticulture Case Study

    Globalisation – has increased the opportunities for wine industries across the world to expand into global markets. Export has become popular, as there are countries that consume a lot of wine but do not produce any. For example, Luxemburg in Europe is one of the highest consumers in the world with over 200L consumed per person each year. Without the appropriate resources and land area to grow grapes and produce wines – Luxemburg is forced to import wines from other countries. Indeed, globalisation has made this…

    • 956 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Vincor International Inc Case Study
    • 573 Words
    • 3 Pages

    Vincor International Inc Case Study

    Vincor needs to align itself in the marketplace such that it can continue to be a market leader and grow internationally. The Canadian wine market is stagnant with limited growth opportunities in a few segments - red, premium, varietal, and ice wines. Supply is always a big concern and government regulations for the sale of alcohol must be considered. As a result of the changing environment, new prospects in the market and strategic growth in external markets (international) should be analyzed.…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Swot Analysis Of Vincor
    • 1135 Words
    • 5 Pages

    Swot Analysis Of Vincor

    All things considered, Australia is one of the best markets to enter on the grounds that this will give Vincor a chance to venture into key new world wine markets as it is quickest developing section, case in point as of now specified the UK is one of the noteworthy expanding nations as Australian wine has turn into the top vendor pushing aside France. It now holds 7 wine brands out of the main ten in the…

    • 1135 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Case Study: Evaluating International Marketing Opportunities
    • 1304 Words
    • 6 Pages

    Case Study: Evaluating International Marketing Opportunities

    Within this report I will assess and evaluate the current International Marketing opportunities of French wine company, Zie Beverages, and in particular will focus on the importation of wine into the United States. I will look to ascertain both the opportunities and risks that the US market may offer to Zie and will look to address each point to achieve an optimal outcome and an effective marketing policy for the company.…

    • 1304 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Michels Patisserie - Vide Case Study
    • 1187 Words
    • 5 Pages

    Michels Patisserie - Vide Case Study

    Lessons learnt form video case studies • If business has large market share in Australia (i.e. Michel’s Patisserie), necessary to look internationally for future growth opportunities • Important to properly assess number of different markets • Depending on nature of product, it is generally valuable to expand into an English speaking country, which is either culturally similar to Australia, or open to western culture, has stable government, and has a similar legal system (particularly for franchise agreements) • Luxury products – instead of looking at just population size, should also look at income, and consumption patterns • Be prepared to change products and business model in the foreign market if an Australian approach is not working • Educate customers of products (especially if culture is not aware of western products  i.e. cake and coffee from Michel’s Patisserie in Shanghai • Exporters sometimes face enormous costs in setting up ventures internationally, such as Katherine Brimblecombe-­‐Fox, however she was able to enlist the help of Austrade and other export agencies to help her in terms of monetary grants and advice • Luxury items (such as Katherine Brimblecombe-­‐Fox’s paintings) do well in wealthier markets (i.e. London and Dubai), therefore it is important to properly research potential markets on a number of different characteristics to increase chances of success • Domestic success is considered an important factor in international success as products have been road tested first (i.e. Aromababy) but this is not always the case if the products are designed to be global from the beginning (i.e. Julianne) • Over long term, reactive approach to exporting is not sustainable (i.e. Aromababy) due to complexities of international expansion and therefore to deal with both domestic and international sales it is important to plan • As interest grows internationally, it is important to be systemic and plan, especially when trying to break into difficult markets such as America • Important to protect IP however possible in the countries you are dealing with • Having a strong, trusting relationship with distributors is the best defence against competition, because most of the time it is inevitable that competitors with produce similar, cheaper products • Important to foster relationships through face-­‐to-­‐face contact, rather than just email • Treat relationships as long term, and help distributors in anyway possible, whether that is in the form of additional marketing support, or maintaining a high industry profile  Aromababy • Tourist attraction considered to be a service – therefore there is added issues which include intangibility, inseparability, heterogeneity and perishability, and therefore the marketing mix should include people, processes and physical evidence • International expansion is usually considered after a firm has exhausted all opportunities in the domestic market, which was the case for Oceanis, as there was no more room for domestic expansion due to Australia’s already high number of aquariums per capita • Difficulties faced by small/medium sized that are not faced by large businesses o Limited financial resources  expansion may rely on firm generating finance externally o Smaller firms typically do not have a high number of employees, and therefore may struggle in allocating staff to manage multiple international activities as well as domestic activities o Smaller firms often have limited international experience and therefore often face a steep learning curve • • • • • • • • • • • • • • • • • • • • •…

    • 1187 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Mondavi
    • 1193 Words
    • 5 Pages

    Mondavi

    Let’s have a general overview over Mondavi’s strategies. Michael Mondavi understood that the success of its company depends strongly on the US market. But in a globalized world which has opened to other diversified market for any product, it opened the door also for alcoholic companies such as Diageo, Foster’s, Allied Domecq and others, who entered the premium wine business. The entrance of such companies in the market of premium wine make shiver the Mondavi’s winery and they felt threatened since its sales volume started to decrease. As a consequence of this analysis, Mondavi should work and focus on the strategy to reinforce the competitive position of the company in order to survive against the huge and aggressive competition there is establishing in US, and in order to confirm its consolidation on the US market. More specifically some challenges it could face can be: managing multiple brand in the global markets, maintaining domestic market share while foreign competitors enter US and accurately forecasting demand and acquiring necessary wine grapes.…

    • 1193 Words
    • 5 Pages
    Good Essays
    Read More
  • Best Essays

    Industry Analysis Report the Australian Wine Industry
    • 1955 Words
    • 8 Pages

    Industry Analysis Report the Australian Wine Industry

    This report provides an overview of the Australian Wine Industry using Porter’s Five Forces industry analysis framework and seeks to provide recommendations based on the impact of the forces for a start up boutique producer.…

    • 1955 Words
    • 8 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Vincor and the new World of wine
    • 978 Words
    • 4 Pages

    Vincor and the new World of wine

    UK wine market “crucible”, small domestic wine production and good relations with wine producers around the world…

    • 978 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Brazil Country Analysis
    • 1322 Words
    • 6 Pages

    Brazil Country Analysis

    The wine industry is a very competitive market that relies heavily on brand lineage, country and region the grapes used to make the wine originated from, or the uniqueness of the wine. In comparison to the major wine producing countries such as France, United States, and Italy; Brazil is relatively new to the international wine industry. The country of Brazil has been producing wine for hundreds of years but has not made an appearance in the global industry until recently. The purpose of this comprehensive analysis is to discuss the region and country of Brazil along with our proposed global business venture in the country.…

    • 1322 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Robert Mondavi and the Wine industry
    • 850 Words
    • 3 Pages

    Robert Mondavi and the Wine industry

    The wine industry is very much global, and is traditionaly rooted in typical variety coming from distincts regions of the world : California Napa Valley, the French regions of Burgundy and Beaujolais, fine Italian wines. Wine is very much tied to the winery it comes from in both brand and regional recognition. The global supply chain for the wine industry can take on several forms depending on where the wine is produced, who grows the grapes, where the wine is sold, and how it gets there.…

    • 850 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Wine Industry
    • 4543 Words
    • 19 Pages

    Wine Industry

    The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their advantage, since they are impossible to just ignore. The four most crucial obstacles the industry is currently faced with are the economic state, the climate changes, the price of gas, and the CARE Act of 2010. All four of these obstacles affect the production of wine and as an end results affect the consumer. These obstacles cause the cost of wine production to increase and therefore wine companies have to increase the price at which they sell their wine to consumers in order to offset the extra money that was put in to the manufacturing of the good. The industry should also focus on their weaknesses amount the five forces, which include threat of substitutes, threat of entry, and threat of rivalry. If the industry can focus on lowering these threats, and concentrate on the value of their customers then they will be able to face the issues that they cannot control with a stronger hold on the market.…

    • 4543 Words
    • 19 Pages
    Powerful Essays
    Read More

Related Topics