Post on 19-Jan-2017
transcript
De Tierra Vineyards
Russell DonaldJoseph Goldberg
Erik PriceJames Rinfret
Nicole Saldaña
Agenda
● History and Overview
● External Analysis
● Internal Analysis
● Possibilities & Recommendations
● Conclusion2
History and Overview
● History
● Mission, Vision, Goals
● Organizational Structure
● Industry, Products & Services
● Summary of Findings
3
4
History
Mission, Vision, and Goals
● Best Representation of the Land
● No Compromise
● Unique and High Quality
● Inviting Atmosphere
● Sustainable Management5
6
De Tierra Vineyards
Thomas & Carol[Founders]
Zach Lawrence[Winemaker]
Anna Russell[General Manager]
7 Full-Time Employees
Organizational Structure
7(Source: T, Liz, lizhatch.wordpress.com, February 8, 2015)
Industry Overview
2000 20012002 2003 2004 2005 2006 2007 2008 2009 2010
2011 20122013
2.01 gals 2.01 gals 2.14 gals 2.20 gals 2.26 gals 2.34 gals 2.40 gals 2.46 gals 2.45 gals 2.49 gals 2.53 gals 2.68 gals 2.73 gals 2.82 gals
US Wine Consumption Per CapitaReached 2.82 gallons (10.6 liters) in 2013
● Sustainable, Hand-Crafted Wines
● 12 Selections of Wine
● Price Range: $26-$52
● Vineyards, Tasting Room
● De Tierra Wine Clubs
● Saturated Market 8
Products, Services, and Market
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Strengths• Location
• Sustainability
Weaknesses• Website
• Awareness
Opportunities• Millennial Age Group
• Industry Growth
Threats• Established Wineries
• Lasting Drought
Summary of Findings
External Analysis
● General Environment
● External Stakeholders
● Competitive Environment
● Key Success Factors
● Strategic Group Analysis
● Supply Chain
● Five Forces Analysis
● Summary of Findings
10
General Environment
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• Meeting City RequirementsPolitical
• Increasing Demand For WineEconomic
• Social StigmaSocial
• Social Media UseTechnological
• Agricultural BusinessEnvironmental
• Alcoholic Beverage Control
Legal
12
External Stakeholders
13
Competitive Environment
14
Key Success Factors
● Comparing Scored Wines and Prices
● Out of 100 Point Scale● 89=Very Good● 90+=Outstanding
15Key: DT= De Tierra Vineyards, WO=Windy Oaks Winery, PW= Pessagno Winery
Strategic Group Analysis
DT
WO
PW
$‐
$10
$20
$30
$40
$50
$60
88.5 89 89.5 90 90.5 91 91.5 92 92.5
Wine Scored
Average Pric
es
Wine Scored Rating Average
Strategic Analysis
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Stemming & CrushingGrape Production Fermentation
Packaging
Storage
Aging Clarification
Consumer PhaseDistribution
Source: (“Ecomanagement for Food”, 2015)
Supply Chain
Source: (Ketchen, et. All, Chaptetr 5, Section 5.1) 17
Five Forces Analysis
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Opportunities• Improve Wine Score
• Environmental Sustainability
• Millennial's Switching to Wine
Threats• Substitutes
• Competitive Rivalry
• Economic Uncertainty
Summary of Findings
● Resources & Capabilities
● Value-Adding Activities
● Performance Measures
● Strategies
● Summary of Findings
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Internal Analysis
Resources
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Valuable Rare Non-Imitable
Non-Substitutable
Tangible Blend Properties Blend Properties
Blend Properties
Intangible I. P. of Wine
Corporate Strategy & Culture
I. P. of Wine
Corporate Strategy & Culture
I. P. of Wine I. P. of Wine
Corporate Strategy & Culture
Key: I.P.= Intellectual Property
Capabilities
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Extraordinary Resources Capabilities Value Added
Vatting Machine Utilizes MachineBetter Efficiency & Quality
Production Demands
Winemaster Creates Blends Certain Flavors
General Manager Coordinates Events Increase Customer Relations
Culture “Best
Representation of the Land”
Ensures Quality
FocusGood Inputs = Good Outputs
Primary Value-Adding Activities
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Inbound Logistics
•Grape Acquisition
•Meeting Demand
Operations
•Increased Harvest Season Labor
•Turning Grapes Into Juice
Outbound Logistics
•Fulfilling Orders
•In‐House Packaging
Marketing & Sales
•Brand Building Events
•Ages 35+
•52% Growth In 2014
Service
•Free Tasting Session For Club Members
•Knowledgeable Employees Inform Customers
Support Value-Adding Activities
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Procurement
• Strong Supplier Relationships
• Obtain Lowest Possible Prices
Technology Development
• New P.O.S. System
• Website
Human Resource Management
• Strong Base Of Employees
• Incentives Maximize Potential
Firm Infrastructure
• Accounting, Legal, Administrative
• Maintains Sound Business Operations
Income Overview
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Income 2012 Income 2013 Income 2014 Sales 11,032.69 33,359.02 58,319.84
Gross Profit 15,720.40 14,914.98 8,647.09Net Income (23,681.24) (80,745.01) (3,211.17)
Efficiency Ratios Average Collection Period 414.77Inventory Turnover 0.88
Leverage Ratios Debt Ratio 146%
Financial Ratios
Performance Measures
Other Performance Measures
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Business-Level Strategy
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Alignment
27
Summary of Findings
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Strengths• Quality
• Service
• Management
Weaknesses• Sunk Cost
• Small Staff
• Supply Issues
● Corporate Strategy
● Business-Level Strategy
● Strategic Competitive Advantage
● Operational Efficiency
● Conclusion
Possibilities and Recommendations
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Possibilities: Corporate Strategy
Possibility I
• Keep Current Corporate Strategy
Possibility II
• Change Current Corporate Strategy
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Recommendation: Corporate Strategy
Possibility I
• Keep Current Corporate Strategy
Possibility II
• Change Current Corporate Strategy
31
Possibilties: Business-Level Strategy
Possibility I
• Maintain Current Business-Level Strategy
Possibility II
• Change Current Business-Level Strategy
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Recommendation: Business-Level Strategy
Possibility I
• Maintain Current Business-Level Strategy
Possibility II
• Change Current Business-Level Strategy
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Possibilities: Strategic Competitive Advantage
Possibility I: Expand Product Portfolio
• Alternative A: Eau-De-Vie
• Alternative B: Pinot Noir Brandy
Possibility II: Lower Cost Storage
• Alternative A: American Oak Barrels
• Alternative B: U.K. Oak Barrels
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Recommendation: Strategic Competitive Advantage
$190,000
$76,000
$0
$50,000
$100,000
$150,000
$200,000
French Oak Barrels American Oak Barrels
OAK BARREL SPENDINGOak Barrel Spending
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Possibility II: Lower Cost
Storage
• Alternative A: American Oak Barrels
Possibilities: Operational Efficiency
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Possibility I: Enhance Current Organizational
Structure• Alternative A: Continue with
Current Staff and Duties
• Alternative B: Hire An Assistant Manager
• Alternative C: Hire An Intern
Possibility II: Facilitate Sunk Cost Management
Plan• Alternative A: Maintain
Current Pace
• Alternative B: Increase Pace of Sunk Cost Payments
Recommendation: Operational Efficiency
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Possibility I: Enhance Current
Organizational Structure
• Alternative C: Hire An Intern
Possibility II: Facilitate Sunk Cost Management Plan
• Alternative A: Maintain Current Pace
Conclusion
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Conclusion
DT
WO
PWF DT
$‐
$10
$20
$30
$40
$50
$60
88.5 89 89.5 90 90.5 91 91.5 92 92.5
Wine Scored
Average Pric
es
Wine Scored Rating Average
Strategic Analysis
Key: DT= De Tierra Vineyards, WO=Windy Oaks Winery, PW= Pessagno Winery, F DT= Future De Tierra Wineyards
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Questions