Table of Contents
Synopsis / Executive Summary Introduction
World economic activity is becoming more focused in
ï¿¼Asia and the associated expansion of Asian middle
ï¿¼classes with this heightened economic activity, has
ï¿¼seen a significant increase in the demand for premium
ï¿¼and luxury goods and services. Most recently, wine
ï¿¼consumption and sales have been stimulated by this
ï¿¼trend, which has resulted in increased demand for
ï¿¼wine products in the Asian region generally.
Resultantly, Australia has enjoyed a significant
increase in wine exports to Asia â€“ particularly in the
higher quality and higher value segments â€“ and looks
set to continue to benefit from this increased demand.
China will continue to dominate this emergence in
demand along with Japan, Singapore and South Korea
and also, India, Thailand and Vietnam. The potential of
these markets offers significant opportunities to
Australian wine exporters whilst also presenting
substantial barriers to success.
ï¿¼For the following Case Study of the Hunter Wine
ï¿¼Company (HWC) â€“ an hypothetical wine company â€“
ï¿¼develop a Strategic Plan that addresses this
ï¿¼Your Report should consider, but not be restricted to,
ï¿¼the following â€“
- Consider the history of the HWC and its strategic development.
- The resources, capabilities and core competencies of the HWC.
- Identify any competitive advantages the HWC may have and consider their sustainability.
- The internal and external environments of HWC.
- Relevant economic market drivers and wine consumption patterns.
- International market entry strategies, entry barriers and Trade Agreements.
- The potential for mergers and acquisitions.
- Blue Ocean strategic opportunities that may exist for the HWC.
- The relevance of strategic leadership and entrepreneurship.
- Organisational structure, controls and corporate governance.
ï¿¼Importantly, the Report should include sources
that differentiate strategically
ï¿¼between short term opportunistic wine trading
ï¿¼opportunities and longer term substantive wine market
ï¿¼ï¿¼ï¿¼ï¿¼ï¿¼ï¿¼ï¿¼ï¿¼Case Study â€“ The Hunter Wine Company
ï¿¼The Hunter Wine Company (HWC), located in the
ï¿¼picturesque Hunter Valley of New South Wales, was
ï¿¼founded by the Smith family in 1990 with a vineyard of
ï¿¼25 hectares comprised of mostly Semillon,
ï¿¼Chardonnay, Shiraz and Cabernet Sauvignon vines.
ï¿¼Since that time they have expanded their winery
ï¿¼through the acquisition of a neighbouring vineyard,
ï¿¼which has not only increased their grape production
ï¿¼potential, but also provided additional wine making
ï¿¼equipment resources that have significantly increased
ï¿¼their wine production capacity. Further, they have
ï¿¼developed strong relationships with other Hunter
ï¿¼Valley grape producers that now supply additional
ï¿¼grape resources to the winery.
ï¿¼Initial vintages where modest and in both quality and
ï¿¼quantity however, a determination to improve both
ï¿¼viticulture and viniculture techniques payed off and
ï¿¼saw a marked improvement in both the yield and
ï¿¼quality of grape production by 2000. Since that time,
ï¿¼HWC has further improved yield and quality outcomes
ï¿¼and incorporated high quality grape production from
ï¿¼other producers, which have increased the wineryâ€™s
ï¿¼production capacity and quality. They are now
ï¿¼recognised as an established producer of medium to
ï¿¼high quality wines.
ï¿¼The winery has the capacity to produce 10,000 cases
ï¿¼annually for each of its four main varieties of Semillon,
ï¿¼Chardonnay, Shiraz and Cabernet Sauvignon.
ï¿¼Since 2000 HWC wines have been exhibited
ï¿¼successfully in all major Australian wine shows and
ï¿¼have won an impressive array of gold, silver and
ï¿¼bronze medals for all four varieties that they produce.
ï¿¼Recognition for the quality of HWC wines has steadily
ï¿¼improved over the last 15 years and increased demand
ï¿¼in the Australian domestic market has followed.
Sales and Distribution:ï¿¼ï¿¼
For the first decade sales were initially made through
ï¿¼the cellar door directly to winery visitors and then
ï¿¼through independent liquor outlets predominantly
ï¿¼located in NSW. However, following exhibition
ï¿¼successes at major Australian wine shows since 2000,
ï¿¼domestic demand has increased to the extent that
HWC now has an exclusive agreement in place with
ï¿¼Dan Murphyâ€™s to distribute their full range of wine
ï¿¼products through 174 nationwide stores. This
ï¿¼relationship is supported through national marketing in
ï¿¼traditional media and through the Dan Murphyâ€™s
ï¿¼HWC sells its wines to Dan Murphyâ€™s at AUD$8.50 per
ï¿¼bottle (AUD$102.00 per case) and Dan Murphyâ€™s
ï¿¼retails them for AUD$14.99 per bottle.
ï¿¼Current production costs for HWC across its range of
ï¿¼wine products, including delivery to Dan Murphyâ€™s, are
ï¿¼AUD$5.50 per bottle (AUD$66.00 per case).
ï¿¼Given the most recent success of HWC in growing its
ï¿¼business and the increased demand that now exists for
ï¿¼quality Australian wine in Asia, what Strategic Plan
ï¿¼should the next generation of the Smith family develop
Attached is the marking criteria for the assessment. Please follow the guidelines as much as possible
Include in-text referencing as well as a reference list at the end of the assessment.