obert Mondavi Corporation: Strategic Analysis
obert Mondavi Corporation has dealt in wine making since 1966 and is one of the leading wine companies in the U.S. The Company is organized around three operating units: obert Mondavi, Woodbridge and joint ventures, and other brands. Its operations are based in Napa Valley, California but have expanded to several other parts of the world such as Chile, Italy and Australia. ("obert Modavi," 2003-Company website- About Company) This Case Study presents a summary / strategic analysis of the Company's management and financial positions.
Management Summary
obert Mondavi Winery was founded by obert G. Mondavi and his eldest son, . Michael Mondavi in 1966. . Michael Mondavi is the present Chairman of the Company, while the elder Mondavi at the ripe old age of 90 continues to provide guidance and inspiration to the enterprise that is his own brain-child.
Mission Statement: Producing outstanding wines to become the pre-eminent fine…...
mlaReferences
MONDAVI ROBERT CORP (MOND)-Quarterly Report (SEC form 10-Q)" (May 15, 2003)
Yahoo Finance. Retrieved on July 25, 2003 at http://biz.yahoo.com/e/l/m/mond.html
First Call Earnings Estimates - Robert Mondavi Corp. (MOND)" Yahoo Finance. Retrieved on July 25, 2003 at http://biz.yahoo.com/z/a/m/mond.html
Robert Mondavi: About the Company, Introduction. (2003) The Robert Mondavi Corp Official Website. Retrieved on July 25, 2003 at http://www.robertmondavi.com/AboutCompany/
Robert Mondavi Corporation (RMC) is a company whose strategy has expanded overtime. The company began operations by pursuing a strategy of being the first wine company in Napa Valley to make wines that rivaled those from the great winemaking centers in Europe. To meet this objective it implemented best practices in the production of premium wines by assembling industry experts developing a new technology to permit gentle handling of wine grapes and cord fermentation of white wines and introducing process innovations such as steel fermentation tanks, vacuum corking of bottles and aging of wines in new French oak barrels. Although RMC's initial business plan called for producing super- to ultra premium wines, the company later began to explore additional price points and niches in the domestic wine market that it could sell in high volume. RMC obtains eighty-eight percent of its grape supply from non-company owned vineyards. n the 1980s,…...
mlaIt would be foolish for RMC to pursue the acquisition on international wineries and vineyards. With less than $400 million in revenues, the company lacks the resources and competence to run international operations. Employees are already concerned that the company has neglected its core domestic brands in favor of pursuing international ventures. Not mentioned in this case is the failed attempt for RMC to acquire $7.5 million worth of land on prime-grape growing land in southern France in a town called Aniane.
In July, 2000, Aniane's town council voted to give Mondavi a 99-year lease on the land. However, a violent backlash ensued by a coalition of local farmers, ecologists, hunters, and communists. The feat that the invading Anglo-Saxons would destroy the village's social cohesion and deform traditional winemaking methods aborted RMC's purchase. This story illustrates the slew of barriers to international expansion and reinforces the recommendation for global partnerships.
Echikson. W. (2001 September 3). How Mondavi's French Venture Went Sour. Retrieved March 15, 2003 from BusinessWeek Online Web Site: http://yahoo.businessweek.com/magazine/content/01_36/b3747009.htm
In the 1990s Mondavi explored other joint venture options including one with the Italian vintner Luce della Vite. Their joint La Famiglia di obert Mondavi uses Italian grape varietals grown in California to produce a line of high-end wines. More recently, Mondavi acquired Arrowood, marking the firm's first entry into Sonoma wines. Mondavi owns and leases a total of almost 10,000 acres of vineyard land in California. Their joint ventures in Italy, Chile, and California add another 1600 acres and account for about 7% of their total grape supplies (oberto p. 7). Most of Mondavi's grapes are sourced internally, and many growers receive long-term contracts to ensure consistency and quality (oberto p. 7). Currently the six California wineries that are operated by the Mondavi firm include the following. The obert Mondavi Winery (MW) offers their flagship wines, which are produced at the original to Kalon winery in Oakville, California.…...
mlaReferences
Roberto, Michael a. Robert Mondavi and the Wine Industry. Harvard Business School, 2005.
HBR Page |
Robert Mondavi and the wine industry
Case Study- Harvard Business Review
Evaluate the structure of the global wine industry. How is it that the structure is changing?
Historical perspective of wine production starts in around 6,000 BC when Mesopotamians initially began to produce wine. Wine has been important part of ancient lifestyle; Egyptians use to bury it in pharaohs for the comfortable living in life after. Greeks consider Dionysus as the god of wine. Wine production and consumption expanded throughout Europe through Roman Empire. From Europe the techniques and innovation in the wine production expanded to America, Australia and South Africa. The global wine industry during 21st century was estimated to be $130 billion and to $120 billion in terms of retail sales.
Global consumption of wine was increasing with compounded rate. Demand for premium wine was increasing; however the consumption for inexpensive, lower quality wine has decreased. Industry specialist are…...
The main advantage Mondavi possesses over Allied Domecq is the fact that it has a series of well established brands, brands which have become well-known to the market through marketing campaigns that ensure that the brand has a distinct identity and unique image. Additionally, in my opinion, until the synergies begin producing results, the tactics of simply buying players on the market needs time to sediment and to become cohesive. From this point-of-view, Mondavi, as a family business first of all, has always being united around a common idea and figure.
4. Morandi basically has two strategic options in 2002: growth through acquisitions, a method that one of the most important competitors has employed, as we have previously seen, and growth through organic development. Morandi has already picked the latter, but we need to go through each of them to point out why this is naturally the best option for…...
Constellation Brands is an alcoholic beverage company, traded under the symbol STZ on the New York Stock Exchange. The company had revenues of just over $6 billion in the 2014 fiscal year and a net income of $839 million (MSN Moneycentral, 2015). While revenues were up significantly over the prior year, profits were down by more than 50%. Until recently, Constellation was an importer/marketer of alcoholic beverages, but the company has recently entered into the production side of the business. As an example, Constellation has built its beer business as the importer of mainstream global brands such as Corona, Tsingtao and several smaller Mexican brands. The company did not own any beer production facilities, but recently announced the purchase of Ballast Point, a microbrewery in San Diego (Kaplan, 2015). This purchases official makes Constellation a brewing company for the first time. The deal is reported to be in the $1…...
mlaReferences
2015 Annual Report for Constellation Brands. Retrieved November 21, 2015 from http://www.cbrands.com/investors/financial-information
Bain Capital (2015). How merging companies can beat the synergy odds. Forbes. Retrieved November 21, 2015 from http://www.forbes.com/sites/baininsights/2015/01/09/how-merging-companies-can-beat-the-synergy-odds/
Ballast Point, Form S-1 (2015). Retrieved November 20, 2015 from https://www.sec.gov/Archives/edgar/data/1648798/000119312515346618/d87353ds1.htm
Brewer's Association (2015). Top 50 breweries of 2014. Breewr's Association. Retrieved November 21, 2015 from https://www.brewersassociation.org/press-releases/brewers-association-lists-top-50-breweries-of-2014/
Computer Games esearch
When considering the short history of computers, video and PC gaming are very recent on the timeline of technology. This is one of the reasons why there have not been many conclusive studies on the negative and/or positive effects of electronic games on children and young adults -- the most formative years. With the ever-increasing interest and involvement of children in this activity, much concern has been expressed about the impact of these games, especially ones of a more violent nature, on physical and psychological development. At the crux of the debate is the question of whether they are detrimental to a young person's health. There are specific concerns about such factors as aggression, addiction, criminal activity, obesity and reduced academic achievement.
Studies thus far show both positive and negative results from playing video and PC games. Some research finds that the playing or observing of violent games does…...
mlaReferences Cited
Anderson, C.A., and K.E. Dill "Video Games and Aggressive Thoughts, Feelings, and Behavior in the Laboratory and in Life. Journal of Personality and Social Psychology, 2000, 78, 772-790.
Ask, A., Autoustinos, M., and A.H. Winefield, "To kill or not to kill: Competitive aggression in Australian adolescent males during videogame play." Children in the New Media Landscape. C. van Feilitzen and U. Carlsson (Eds.). Goteborg, Sweden: UNESCO International Clearinghouse on Children and Violence on the Screen, 2000.
Bowman, R.P. And J.C. Rotter. "Computer games: Friend or foe?" Elementary School Guidance and Counselling, 1983, 18, 25 -- 34
Calvert, S.L., and S. Tan, (1994). "Impact of Virtual Reality on Young Adults' Physiological Arousal and Aggressive Thoughts." Journal of Applied Developmental Psychology, 1994, 15, 125-139.
The article does not set for itself the objective of tackling cultural differences as a wider concept, but points out to specific challenges of cultural differences.
The second textbook excerpt makes reference to distinctive aspects of free trade agreements, including here protectionism, however, contrary to the article, it does not address the aspect of jobs protectionism or the challenges of outsourcing for different countries.
Question 3: There are several things presented as truisms in the first article, however, there are important points that raise questions as well. One of these aspects is the idea that the author proposes of identifying local citizens to help in better understanding local cultures. If by identifying the author refers to actually hiring them, in some cases this is not possible. In some countries, the local citizens do not have the right business approach and sufficiently training them often takes time and may imply higher costs…...
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