Globalizing an Australian Wine Company Essay

The companys strategical good deal is to become the servicemans first truly global wine company. As chief executive officer and managing director of BRL braw atomic number 63, Carsons contribution and achievements had been significant with a 10 fold increase in sales volume, in a land tenure spanning just seven years. He successfully turned around Hardys U. K. business by implementing cost cutting initiatives and ensuring loaded systems, policies, and control.Millar, chief executive officer and managing director at BRL Hardy followed a decentralized approach to focal point. He believed in delegation and adequately integrated culture and management zeal 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 brands, namely, Stamps and Nottage Hill, were positioned at price 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 brand sales.As the image of these brands began to erode, Carson de statusined to re ready them by relabeling and repositioning the wines. Carson insisted that sales performance in U. K. depended on in force(p) labeling that should not be completely dictated by the Australian management. Although management was skeptical about local control over branding, labeling, and pricing decisions, the motivate significantly boosted the fighting brands sales. As the fighting brands gradually moved up the price points, there was an opportunity for an entry level wine that could be priced lower than 4. 9 pounds. In line with the companys vision of becoming an international wine company, Carson decided to tap non-Australian wine sources and discipline a line of branded products that could utilize the companys strong distribution channels. This strategy would provide vital scale economies, minimize harvest-tide risk, capture rationalizing suppliers , and avoid currency-driven price variations. Carson proposed the brand Distinto, an Italian enter 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 headquarters believed that Distinto would eat into the fighting brands share as they were positioned at some similar price points. Carsons earlier Chilean venture, Mapocho had proven hard and Millar was doubtful if the European unit could support another brand. While Millar recognized U. K. s strong performance and wanted to give Carson as practically freedom as possible, the reality was that the Italian venture would stretch the wonky human resources of the European unit and dilute focus from the overall incarnate strategy. While the Italian venture was being proposed, the Australian headquarters had launched Banrock Station, an environment ally 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 outside(a) 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 plump within the broader corporate strategy of the organization. Although Carsons proposal represented strategic interests, it ran counter the corporate strategy of maximizing global efficiency. Distintos launch would certainly come with financial implications and would also stretch the operational 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 guileful and attractive labeling and a di stinct image capturing the Mediterranean lifestyle. This positioning would definitely appeal to the mature 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 assured populations that expect corporations to take responsibility of natural resources and the environment. Although through Distinto, Carson aims to base a global brand, Banrock Station appears to be better positioned in a converging global market. In order to build a dead on target global brand, Miller must establish consistency across organisational units and ensure that the vision is shared by all.