Type of paper: Report

Topic: Business, Strategy, Company, Firm, Development, Market, Organization, Wine

Pages: 8

Words: 2200

Published: 2021/02/21


HVWC is a fictitious family owned business focused on developing wine production techniques and producing vintage wines. The business is a family owned business and is focused on developing high quality and techniques of wine making. It is extremely important that the business expands its scale of operations to remain competitive and this is possible only through the utilization of strategies of acquisition and merger. This can help the organization develop multiple competencies and gain competitive advantage which would be beneficial to the organization in the long run (Johnson & Scholes, 2002). In this way strategies and strategic development of resources and competencies is essential for the organization. This can help the organization develop better market position. As the Asian middle class is expanding along with increasing purchasing power, HVMC should look at expanding the business in Asia as well. Increased economic activity as well as demand for luxury goods resulting in increased wine consumption makes it a viable and sustainable market.

History of the HVWC and its strategic development
HVWC is a family based wine making company which is focused on developing better techniques of wine making. The organization is focused on making better quality wine and vintage wine, thus carving a niche market for its products. It becomes extremely essential that they focus on strategic development in terms of forming marketing strategies that can help the firm expand its scale of operations. This helps achieve better focus on long term business development. Branding and promotion are essential aspects that the firm should use in order to obtain better levels of growth and ensure better efficiency as well (Hochbaum, et.al., 2011). Australia has experienced an increase in export of wines to Asia, particularly in the high quality and premium wines. There has been a significant increase in the demand for wine in China, Singapore, Hong Kong, India, South Korea and Thailand as well.

The resources, capabilities and core competencies of the HVWC  

The capabilities of HVWC include growing grapes and making wine. These elements require sufficient usage of knowledge and experience and HVWC does have it. Moreover, it is crucial that the firm utilized these capabilities and core competencies to ensure higher levels of benefits for themselves. It can help them build sustainable competitive advantage based on specialization in vintage wine making. It can help them create a niche market and develop its skills to expand the niche market or the demand for the vintage wines that it makes. It is important that there is an effective usage of its capabilities and experience, including raw material, better branding and better focus on building a strong marketing position (Johnson & Scholes, 2002). Thus, it becomes important for HVWC to use two of its capabilities – marketing and knowledge to its best capacity. This can help the firm develop stronger market standing and also expand in the future. It’s essential that HVWC works towards further development of its current capabilities and competencies so that it is possible for them to grow as a business. At the same time it becomes crucial for the firm to ensure the development of these skills in a unique manner so that they can create competencies which cannot be easily emulated (Hochbaum, et.al., 2011).

Competitive advantages the HVWC may have and its sustainability

Based on Porter's generic strategy, the company adopts differentiation strategy. The competitive advantages of HVWC are that it is focused on vintage wines and its production. This helps them use the niche market strategy and the differentiation strategy which helps the firm ensure betterment in all of the aspects of the business. This has helped the firm build stronger market reputation as well as ensuring better focus on developing business skills that are useful for the organization from a strategic point of view (Johnson & Scholes, 2002). In this way, it is possible to ensure that the organization does not focus only on short term goals but also on long term goals.

The internal and external environments of HVWC  

The analysis of internal and external environment of HVWC requires to be analysed in order to achieve better understanding of the strategies that need to be formed. The internal environment of the organization is quite strong with the required resources and manpower. They also have several competencies and competitive advantages which are quite sustainable from a long term perspective. It is essential to consider the different elements of future needs of the business as well as its expansion. The firm should start developing such processes which would be useful for the organization in the long run (Hochbaum, et.al., 2011).
The external environment of HVWC includes factors like political factors, cultural factors, demographic aspects, and social aspects, technological and economical aspects, especially with respect to Aisa (Pearce & Robinson, 2005). An analysis of these elements does indicate that there are positive factors apart from the economic aspects in Asia. Apart from this all other factors are favourable. As the economic factors are unfavourable, it is essential that the firm uses technology, including web marketing and online social medium to market its products globally. This will help the firm ensure that there is a better focus on building a product that can meet global standards. In this way the firm can tackle the problems caused due to instability in the economic problems. It can help create stronger levels of focus on building better strategies, including hedging and other strategies that can help them tackle the economic environment effectively (Kelly, 2009). In this way it forms a stronger impact on the business prospects and stability based on the business environment.

Strategic plan

In case of external environment, technology can help the organization achieve better levels of dynamism and also grow in terms of business process. This can help the firm create strategic competitive advantage and competencies which can help the business grow effectively (Pearce & Robinson, 2005). It can also help the organization build stronger levels of strategic development and resource management. In this way, the firm can prepare it for strategies like mergers and acquisitions, which can help the firm expand in terms of business operations and scale of operations. It helps the organization develop better strategies, and organize its resources accordingly. This helps the firm develop better solutions to its strategic problems in an effective manner (Hunger & Wheelen, 2007).

Relevant economic market drivers and wine consumption patterns

In case of the organization’s economic environment, it is essential that there be better hedging and utilization of diversification in the same industry which will help the firm grow. The demand and wine consumption patterns for vintage wine is not very high as it is a niche product and not a mass product. In case of better and premium quality, it is difficult to sell the product to the mass markets. So, it is important that there are strategies and promotion methods which can reposition the product. It is also possible that the firm looks at diversifying into other wine segments or products. Adding products to the product line will help ensure better policy which helps the firm diversify and this helps increase the rate of success of the firm even in case there be higher risks in the economic environment. This creates possible growth and achievement for the organization. The cohesive formation of the distinct categories to complete the business model is to be based on combining multiple elements of function strategies, including marketing and technology (Pearce & Robinson, 2005).

International market entry strategies, entry barriers and Trade Agreements

In case of international market entry strategies, franchising would be the ideal strategy as there are few entry barriers and simple trade agreements involved to enter the Asian markets. It is extremely essential that the market entry strategy be simple and sustainable in the long term. This will help create better elements of growth for the organization and also help develop better focus on building stronger business development. The trade agreements have to be based on laws of both the countries in case of international business (Kelly, 2009). At the same time it becomes essential to focus on building long term relationships with business partners in case of international trade which would lead to business growth. In case of using the franchising strategy, it is essential that the firm should expand its scale of operations so that it is possible for them to focus on building a stronger market share. It can help the organization build better focus on long term prospects as well as growth. At the same time it can help the firm maintain the same level of quality and use technology to communicate effectively. In this way the franchising model can prove to be very useful (Kelly, 2009).
It basically looks into the streamlining of the business through a specific business model, that includes the core procurement of the raw materials, supply risks, managing the occurrences of the drastic changes in the market and the end consumers’ needs (Buckley & Casson, 1998). This can help the organization develop better focus on long term growth and expansion without having to compromise on quality and increase its market share by entering foreign markets (Kelly, 2009). In this way, it is possible to build better growth and development in the firm and also ensure better improvement in the quality of the products in the organization. It would help increase the levels of market activity and scales of operations of the firm.

The potential for mergers and acquisitions

Mergers and acquisitions are an essential strategy that firms use to expand the scale of operations by getting together with another firm and benefitting out of the synergies created due to combining of resources and manpower (Johnson & Scholes, 2002). This helps develop better prospects for the firm. There is high potential for mergers and acquisitions as it would benefit the firm in international operations. It would also help the firm ensure that there be better support and resources for international business. It would help create strong levels of focus on delivering more through building strengths and competencies which can strategically help the firm create competitive advantages. It is also important that there is an effective balance among the aspects of culture and work environment as though mergers and acquisitions are strategically beneficial, they are also quite risky and difficult to be implemented in the short term (Kelly, 2009).

Blue Ocean strategic opportunities that may exist for the HVWC

Kim and Mauborgne (2005) in their book identified that company can achieve differentiation and low costs at the same time by aligning innovation with price, utility and cost positions. They identified that “value innovations” is the foundation of blue ocean strategy. Through value innovations, companies can generate uncontested position in the market and keep competition at bay. A blue ocean strategic opportunity for HVWC is to create an innovative product which cannot be easily emulated by focusing on value innovation. A different flavoured wine or a different product can help them implement blue ocean strategy in an effective manner. It can help the firm create strong levels of balance among the present demand and future prospects. It can help the firm improve its niche marketing aspects to a great extent. In this way, the blue ocean strategy is an important aspect that can benefit the organization obtain better revenue and profit and it can also grow effectively (Buckley & Casson, 2007).

The relevance of strategic leadership and entrepreneurship

Strategic leadership and entrepreneurship are crucial for the business (Pearce & Robinson, 2005). The transformational style of leadership has several benefits, especially in case of international business. It is extremely important for the business to develop better focus on strategic vision and leadership which will help achieve stronger market position. It will help innovate and adapt better entrepreneurship in the long run. It is crucial that the business is better developed based on all of these elements and also focus on building better growth for the organization (Kotler & Kevin, 2006).

Organizational structure, controls and corporate governance

The organization structure is formed based on the need and functional aspects of the business (Johnson & Scholes, 2002). The controls and corporate governance strategies are not very clear or formal because they are formed within the management. The financial controls are in place, but it is essential that there be effective strategies and controls as well as corporate governance policies when the business plans to expand internationally (Pearce & Robinson, 2005). This will help the organization develop stronger levels of growth and levels of business. It would help achieve better effectiveness in the organization.

Conclusion and Recommendations

It is recommended that the organization focuses on long term growth and strategies. For this HRD, merger and acquisition as well as forming of long term plans are extremely important. This can help the business grow based on its knowledge, competencies and created sustainable competitive advantage (Hochbaum, 2010). It is crucial that the organizational goals are based on strategic aspects and resource management. It helps the business build better strategies as well. It helps develop better levels of teamwork and common understanding of organizational goals. As per this theory, the use of personal power is not influential and effective in managing the team.


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