...The global wine industry is divided in two areas, which are the Old World Countries and the New World Countries. The Old World countries are those located in Europe, while the New World Countries are Australia, United States, Chile, and South Africa. During the past few decades, global consumption of wine had been increasing. While the demand of premium wines was increasing, the consumption of inexpensive wine was decreasing. In Europe, families owned small vineyards and most of them produced wine for their own consumption. On the other hand, in the New World, larger firms owned wineries and competition was strong. I will use Porter’s Five Forces to analyze the global wine industry. Threat of New Entrants: Low; Entry Barriers: High (-) I would say that in the global wine industry, the threat of new entrants is low and the barriers to entry are high. This is due to the fact that the acquisition of new land and labor to produce wine requires a large amount of capital. Known brands spend a large amount of money on technology, innovation, and advertising, so it would be hard for independent wineries to start their own production, especially in New World countries and be profitable. Additionally, price per acre in the United States is really high, and a new piece of land takes several years to produce revenue. Also, the wine industry is already a mature one and consumers have their preferred brands of high quality wine, therefore obtaining a large share in the market would...
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...Papers Vol. 4 No.5 October-November 2008 Pp.20-33 The Strategic Issues, Business Plan and Implementation from Situational and Industry Analysis: A Discussion on a Specific Case Moha Asri Abdullah A business strategy is the focal point of the business practices and competitive strategies in the operational management. It is used to strike out a market position, conduct operations, attract customers, compete and achieve organizational objective. Thus, whether a company wins or loses in the marketplace, it is directly attributable to the calibers of a company’s strategy and the proficiency with which the strategy is implemented and executed. This paper attempts to analyse the overall situation of an accountant company in the wine industry known as Moss Adams whose company is facing the problems with strategy and execution in the specific market place of the northern California. To critically analyse this, a number of process involve; First, the use of the situational analysis and SWOT. Then, the Porter’s Five Forces model is also used to illustrate the nature of accounting industry of wineries businesses before strategic issues for Moss Adams’s company will be discussed in relation to the crafting alternative business solutions and predicting the outcomes of the plan. Filed of Research: Business strategy, situational analysis, Porter Five Forces 1. Introduction Strategic business plan and its implementation are the ‘heart and soul’ of any business organization and operation...
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...Kudler Fine Foods Business Analysis Karen D Glover BSA 310 April 15, 2012 Joseph Rezendes Kudler Fine Foods Business Analysis Kathy Kudler, the founder of Kudler Fine Foods (KFF) has a primary goal in establishing a retail food store that provides a selection of gourmet foods in order to meet the needs of the typical consumer, all within one store. Kudler’s mission statement is clear;”provide our customers the finest in selected foodstuffs, wines and related needs in the unparalleled consumer environment.”(Kudler Fine Foods Mission Statement, University of Phoenix Virtual Organization Portals, 2008) With the wide variety of foods is offered at Kudler Fine Foods, the different departments include gourmet baked goods, dairy, gourmet cheese, and wine, organic, non-organic produce sections, fresh meats, and seafood. In addition, within the three retail locations, KFF offers cooking classes along with monthly cheese and wine customer appreciation classes. Some of these services will be expanded into the private residence sector. Adding to their list of offered services, KFF has just added a new catering service in an attempt to attract new customers, as well as, increasing revenue from their existing customer base. There have been some recent operational changes at Kudler that will be advantageous to the success of their stores. Kudler is able to increase their profitability by using operational strategies, such as, establishing contracts with local producers of organic produce...
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...Table of Contents 1. Introduction 1 2. Wine Manufacturing Industry and External Environment 2 2.1 Wine Manufacturing Industry 2 2.2 External Environment 6 3. Porter’s 5 Forces Analysis 10 3.1 Threat of New Entrants 11 3.2 Bargaining Power of Buyers 12 3.3 Threat of Substitutes 14 3.4 Bargaining Power of Suppliers 16 3.5 Rivalry within the Competitive Arena 17 4. Conclusion 19 Reference 21 1. Introduction Captain Arthur Phillip brought grape vines from Brazil and the Cape of Good Hope to Australia when his fleet arrived in Botany Bay, located in Sydney, in 1788, according to Wine Australian which is one department of Australian government. Since that Australia had made a history of producing and exporting wine. In 1854, a barrel of fortified wine was exported to London, which is the first reported Australian wine export (Wine Australia, 2012). Subsequently, Australian exports in wine have boosted at an extraordinary rate especially in recent years, reaching the record level in 2007. Today, Wine Australian also point out that Australia is the fourth largest wine exporter in the world, constituting about 4% of total world wine production, and export over 800 million liters to international wine market and as a result, it produces a contribution of around A$3 billion per year to Australian economy. Australian wine exports to more than 100 countries; mainly two biggest markets are United Kingdom and United State. Besides, there are other significant markets...
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...sections of the paper. My sections of the paper were the value chain of the industry and the supplier section of the porter’s five forces. I had good communication with the team and I helped out two of the other team members in finalizing their sections of the paper. Another group member and myself did most of the work formatting and editing the final paper after everyone had their part completed. Afterwards I was in charge with any last minute spell checks, reference checks and submitting the final report. At the time I thought it would be a good idea to have everyone’s input in deciding sections of the paper. In hindsight however, the initial meetings were a bit redundant as the individual sections could have been assigned since no one had any preferences. My section of the paper was completed a day after the discussed due date that the group set, so I should have spent more time and effort in meeting this goal. The individual work submitted by some of the group members could have used more work, so a lot of time was spent fixing grammatical mistakes and rewriting sentenced to make them more coherent. For Part 2, I will personally do my best to complete my part on the due date. In addition, the group needs to set higher expectations about the quality of the work that needs to be done. The “Agriculture and Agri-Food Canada” article was found through a Google search looking for Canadian wine industry overviews. This article was moderately relevant to complete my individual section...
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...Overview of Management Introduction Kudler Fine Foods (KFF), opened in 1998, is “committed to providing their customers with the finest selection of the very best foods and wines so that your culinary visions can come true” (Kudler Fine Foods, 2007). Kathy Kudler, President and Founder, “vision was to create one store that would stock a wide selection of the freshest ingredients as well as all of the tools a gourmet cook could ever want” (Kudler Fine Foods, 2007). She was certain that her company would be a great success if she combined the convenience of a one-stop shop with reasonable pricing. The purpose of this paper is to examine the primary management functions and its relation to KFF by describing who is responsible for each function, to explain how technology and the Internet are utilized and how it affects management, and cite an example using KFF organization that illustrates Porter’s Five Forces model. The Primary Functions of Management Planning and Strategizing “Planning and strategizing and two sides of the same coin. For a company to be successful, the goals of individuals, teams, and management should be coordinated to support the firm’s mission” (Balkin & Gomez-Mejia, 2002). KFF mission is to “provide their customers the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment” (Kudler Intranet, 2003, 2005, & 2008). Kathy sets the direction and guidance for KFF by planning for the future in accomplishing the...
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...1. Apply Porters model of industry competition in China and Australia. What are the key implications for Lion Nathan’s marketing strategies in both of these countries? Porter’s model of industry competition is one of the strategic tools to plan for long-term as well as to evaluate the current situation of the company. According to Grundy (2006, 215), Porter’s model of industry competition can also determine the profitability of the company. There are five forces involved in the model such as threats of new entrants, bargaining power of buyers, bargaining power of suppliers, rivalry within the industry, and threats of substitutes. China is a large geographic market compared to other countries and brewing industry in China is highly fragmented. There are more than 600 brewers in 1998. To apply Porter’s model of industry competition to China market, the threats to Lion Nathan will be different according to the region but this application is an average application of Lion Nathan China. Firstly, the threats of new entrants has the high rank for LN China because the case described that there is a growth potential for brew industry and it makes more attractive to international brewers to China. LN China can also have high bargaining power of buyer because there are many other beer producers in the country and customers will have more choices to buy. For bargaining power of supplier, there will be medium threat to LN. As LN is a large company in China, they will have strong supply...
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...There are many factors that affect the success or failure of an organization. One is the strength of management within the organization. A manager that incorporates the primary functions of management is one who will be successful. Another factor is the company’s response to competition. With such strong competition in virtually every industry of business, a company must have a strategic plan that is carried out by organization leaders that demonstrate strong management. A manager that can incorporate Porter’s Five-Force Model is one that recognizes the threats to the company’s profitability and ultimate position in the industry. This paper will explore the management functions of Kudler Fine foods using the Porter’s Five-Forces Model. This paper will also exam the use of technology and the internet and how it affects management. Kudler Fine Foods is a gourmet foods shop founded by Kathy Kudler, a woman who was tired of having to travel all over town to get fresh ingredients for simple meals. She decided to open a one-stop shop where people could buy a wide variety of the freshest foods as well as the necessary tools to prepare the meals. Kudler Fine Foods is divided into the following departments: fresh bakery and pastries, fresh produce, fresh meat and seafood, condiments and packaged foods and cheeses and specialty dairy products. There are three locations in San Diego metropolitan area (Kudler Fine Foods, 2007). There are four management functions: planning and strategizing...
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...Robert Mondavi and the Wine Industry Analysis EXECUTIVE SUMMARY The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local region, which makes it harder to compete with its substitutes. In the strategic analysis portion of this case analysis, we discuss Porter’s Five Forces and how they affect the Robert Mondavi Winery. We conclude that in order for the winery to stay competitive and gain economies of scale, they should develop new joint ventures and reform their company structure into a decentralized federation. PROBLEM IDENTIFICATION After analyzing Robert Mondavi Winery the biggest problem they face being in the wine industry is the threat of substitution of their product. There is a range of different products in the alcohol industry. Wine is not the most consumed alcoholic drink in the world, making it a treat to having sustained and effective substitute products. Robert Mondavi Winery’s second biggest problem they must overcome is being able to sustain a competitive advantage over rival companies in different areas. Such areas include the Winery staying local and not being able to compete in...
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...Global Wine Wars Perform a STEEP analysis to understand the general environment facing the global wine industry. How will the wine-producing countries/companies be affected by external factors? Social: There is a 20% drop in worldwide wine consumption but consumers demand more on premium wine (10 liters to 15 liters in EU) and less on basic wine (31 liters to 18 liters in EU). There is a decline in wine drinking culture, rise in importing countries, and growing demand in Asia markets. Figure [ 1 ]: Wine Consumption Per Capita Figure [ 2 ] World Wine Consumption 2002-2006 hectoliters (000) Technological: Change in the grape growing and wine making process from labor to specialize machinery and equipment. Other practices such as night harvesting, reverse osmosis, and trellis system also increase the quality and quantity of the grapes. Environmental: Environmental factors can greatly affect traditional grape growing and wine making because the quality and quantity of the wine can be affected by climate such as temperature, rainfall, humidity, and such. While the new practice of wine making can divert such effects by sourcing grapes and wines from the unaffected regions. Economic: While the economic downturn can make the basic wine consumers look for cheaper wine, it has little effects on the premium wine and upper segment. Political: One of the biggest factors that affects the global wine industry. Rules and Regulations in EU caused the region more problems...
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...Country Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented...
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...BLUE OCEAN STRATEGY With Supply outpacing Demand in more and more industries each day, today companies find themselves competing for a share of the contracting markets. The question looming large is whether businesses ought to address competition as their main issue or direct their focus elsewhere? While the “five forces” analysis lays emphasis on outperforming competition in order to capture greater share of the existing demand, Blue Ocean Strategy belies competition and believes in creating uncontested market space. The recent pace of innovation and change has only paved way for a strategy that is more dynamic than the classical theories of five forces. Porter’s five forces aimed at beating the existing competition, denoted as Red Ocean, in a known market space where the rules of the game are known and boundaries are defined and accepted. But as the market gets crowded, profits and growth take a dive, and competition turns cutthroat making the red ocean bloody. Contrarily, Blue oceans denote uncharted, untapped and unknown market space, demanding innovation and providing opportunity for highly profitable growth. Though some blue oceans are created beyond existing industry boundaries, most blue oceans take shape from within red oceans by expanding existing boundaries. Looking at businesses, past and present, we find that blue oceans have always existed, only the term is new. A hundred years ago, many industries that are quintessential today, such as, health care, automobiles...
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...Firm’s mission statement, vision and strategies are inherently tied, and constitute the key concepts that allow a firm to obligate such objectives. Along with this, the firm strategy has to be immediately fixed and improved to move in conjunction with the needs of the external environment (Stead et al., 2004). Understanding the importance of strategic management, the report’s purpose is to exploit supplied information from the case study “Global forces and the European brewing industry” to carry out the external environment analysis which uses PESTEL and Five Forces Models. Basing on the achievements from the industry analysis, a further analysis called strategic groups which based from strengths and weaknesses of four brewing firms is made to categorize each kind of firms. References from books, journal articles were used to providing proper prove for supporting the trend in the case. INTRODUCTION The case study reflects how international forces have influence on European brewing industry as well as how such breweries firms has tried to overcome the difficulties. Despite of the fact that the European governments have enforced some restrictions and carried out a campaign against alcohol, these firms still tried their best in order to increase growth rate via alliances, acquisitions and closures within the brewing market. Firms are focusing on broadening their appearances in other marketplaces while several of firms are mustering on innovating...
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...Kudler Fine Foods Misty Robinson MMPBL/502-Managing the Business Enterprise Abstract Kudler Fine Foods is an upscale food store in the San Diego metropolitan area, specializing in fine foods and wines. This paper will explore the primary functions of management and who is responsible for each function. Also, how Kudler Fine Foods is utilizing the use of technology and the internet within the organization. Table of Contents Introduction…………………………………………………………………………………….. 4 Primary Functions of Management at Kudler Fine Foods……………………………………... 4 The Use of Technology and the Internet……………………………………………………….. 5 Five Forces – Porter’s Model……………………………………………………………………6 Conclusion……………………………………………………………………………………….7 References……………………………………………………………………………………….8 Kudler Fine Foods Introduction Kathy Kudler, founder of Kudler Fine Foods, has a passion for gourmet cooking, which requires the use of gourmet ingredients. She was often tasked in finding the ingredients she needed to prepare the gourmet meals she desired. While out shopping one day she realized there was a great demand for a fine food store, one that could offer the finest ingredients and other specialty items at a reasonable price. Kathy had a vision; it was then that the first Kudler Fine Foods was opened in 1998. The store is driven by its mission statement – “our selections, coupled with our experienced, helpful and knowledgeable staff, merge to offer each customer a delightful and pleasing shopping...
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...INTRODUCTION: Samsung Group of companies was found in 1938 and major leading company to provide financial and manufacturing services. Since 1980 it has made vast development in semiconductor and electronics industry. Samsung has made remarkable growth in net profits since last two decades. This is regarded as the ways of Samsung conducts the business and strategic INFORMATION MANAGEMENT is the pillars of the entire business at Samsung. For a long period relationships between corporate strategy and information systems; Top management of the firms were not much interested. Information management systems are to be thought as same to corporate data processing and support the daily routine functions (Rockart, 1979). Information management systems based on computer based response to any type of interaction whether at transaction level and supply levels etc. Although Samsung is a much consolidated company but it requires more strategic development planning system to identify more future projects to compete its sister companies in the world. Shipping of products and the best use of strategic information management can enhance the capabilities of the managers to identify the achievable targets of selling of new products of fashionable mobiles by installing the new information management systems. Supply Chain Operations need more development to improve Samsung’s global business operations. OBJECTIVES: The main objective of the Samsung company...
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