Strategic Development and Success of Hunter Wine Company Strategic development
Question
Task: How did the Hunter Wine Company Strategic development its business to achieve global success in the competitive wine industry?
Answer
Consider the History of the How and Its Strategic Development
Established in 1990 by the Smith Family, the Hunter Wine Company Strategic development was classified as a high-risk investment due to the high competitions among wine brewers across Europe, the USA, and Australia. The company was established on a 25 Hector vine yard which comprised of 4 varieties of grape namely Semillon, Chardonnay, Shiraz and Cabernet Sauvignon grape vines.
The four varieties were spread across most vineyards in hunter valley which added to the competition. To turn the investment into a success the Smith family would need to dedicate their full effort towards culturing new grape verities from their existing stock. The new hybrids would produce good wines that developed popularity among consumers across the Australia then the globe.
Gradually HWC would begin contracting neighbouring farmers to produce and supply their grapes to the Hunter Wine Company Strategic development winery which allowed the company expand its production without needing to invest on purchasing additional vine yards or need to manage the vine yards. HWC would also begin modifying the existing grape vines to develop a high-quality hybrid which they would culture and distribute to the contracted vine yards under the condition all the grape production would only be supplied to HWC (Porter, 1996).
This would allow HWC to turn its attention towards marketing their new product globally while vine yards in the hunter valley produced the crop required to produce the vast number of wine demanded by consumers across the globe.
Relevant Economic Market Drivers and Wine Consumption Patterns
The main factors linked to the Hunter Wine Company Strategic development success was mainly associated with evenly distributing its focus on both quality and quantity. Many companies today focus on one of the two which results in hampering their expansion efforts. HWC would focus their attention on both quality and quantity but develop new hybrid grapes from the existing culture which would also wine consumer interest.
The rising consumer demand for HWC wines would find the company entering into a contract with Dan Murphy who took ownership of market and distributes the entire wine stock produced by HWC. This would turn the Smiths Family focus one again from marketing and back to maintaining the organization operations thus allowing them to maintain focus on bulk productions of high-quality wine at affordable prices.
Affordable good quality wine in something many wine consumers look for since wine is usually consumed alongside meals thus many people are looking for a high-quality wine at an affordable price for their daily consumption. Dan Murphy would also turn his attention towards marketing the wine brand in Asian countries and emerging markets where wine is registering an increasing demand among consumers (Mark & Parker, 2014). This has allowed the Hunter Wine Company Strategic development to also establish its brands in the Asian market thus increasing the demand for high-quality wine production at affordable prices.
Organizational Structure, Controls and Corporate Governance
The Hunter Wine Company Strategic development is a family owned business but this does not mean the organization is only controlled by the family’s decisions. HWC involved all stake holders towards its development and operations plans since it depends heavily on neighbouring hunter valley vine yards to produce their grape crop to produce wine. This has resulted in HWC adopting a hierarchy leadership approach but also maintaining open communication lines between all stake holders who can raise queries directly with the Smith Family.
This promotes stake owner ownership of the business despite it being a private company and encourages stake holders to focus e their attention towards the businesses development and growth. The Hunter Wine Company Strategic development has also adopted a corporate governance policy which highlights and addresses each of its stake holder’s needs. This is simply due to the company relying on all its stake holders heavily to ensure smooth business operations and offering them the opportunity to participate in policy development and expansion allows all stake holders focus more of their attention towards the organization's development (Wright, Siegel, Keasey, & Filatotchev, 2013).
Limiting or excluding stake holder from business operation and development planning results in alienating them which results in them observing the organization as a different entity as opposed to viewing the Hunter Wine Company Strategic development as their own company.
Bibliography
Mark, K., & Parker, S. (2014). The Entrepreneur at Twitter: Building a Brand, A Social Tool or a Tech Powerhouse? Melbourne: Cengage Learning.
Porter, M. (1996). What is Strategy. Harverd Business Review.
Wright, M., Siegel, D., Keasey, K., & Filatotchev, I. (2013). The Oxford Handbook of Corporate Governance. Cloydon: OUP Oxford. Hunter Wine Company Strategic development
