8/8/2019 Calitera v 4

1/17

Corporate Communication, Spring 2010 (Northern hemisphere)

Robert Mondavi Corporation: Caliterra (A, B and C)

Professor: Frank Jaster

Students: Javier Zapata, Philipp Smol, Luis Alee, Rodrigo Buccioni

8/8/2019 Calitera v 4

2/17

Agenda Introduction

Main Problems (Change Management) Short term plan

Long term plan

Risk and benefits Conclusions

8/8/2019 Calitera v 4

3/17

Main Problems

1. Lack of change management process fromthe joint venture Mondavi/Caliterra

2. Cultural differences in both companies

3. Mondavi mistrust from Chilean operations

4. Mondavis lack of knowledge about the Chilean localmarket / Caliterras lack of knowledge about US market

5. Independency of Chilean management operation(freedom of act)

8/8/2019 Calitera v 4

4/17

Lack of the change management process

from the joint venture Mondavi/Caliterra

Causes

Change management was not taken in consideration from

the beginning

Lack of stakeholders expectations from the venture

Lack of New venture culture / Company identity

Lack of Fit/Gap analysis (All levels)

8/8/2019 Calitera v 4

5/17

Different culture (both companies)

Causes

Language (Spanish vs. English)

Developed vs. emerging country

Family owned vs. large U.S. corporation.

Teams from different countries and far away from each

other. (Communication)

8/8/2019 Calitera v 4

6/17

Mondavis mistrust from Chilean

management

Causes

Many errors in the past => Loss of confidence

Working twice / operation losses

Lack of planning in Caliterra (Not comparable)

Lack of reporting procedures to US

Errzuriz is not at the same technical level as Mondavi

8/8/2019 Calitera v 4

7/17

Mondavi knowledge of Chilean market &

Caliterra knowledge of US marketCauses

Lack of knowledge

Americans are demanding in quality and standards. Local market is not as sophisticated as the USs.

Two Marketing teams / two approaches for themarkets

Companies working independently and not as a team

8/8/2019 Calitera v 4

8/17

8/8/2019 Calitera v 4

9/17

Action plans(Alternatives)

8/8/2019 Calitera v 4

10/17

Short term plan

1. Send a mixed team from both companies to

each production facility.

Production

Vineyard operations Oenologists

Marketing

Objective: Interexchange standards and

experiences from all levels. Team building

8/8/2019 Calitera v 4

11/17

Short term plan

2. Controls & coordination

1. Conference calls twice a week between McKay

and Schnur, and the teams to coordinate

operations and Business as usual

2. Formalize the agreements and milestones in

formal documents. CONTROL

3. Weekly status reports from the teams on the

advance

Objective: Keep record of the changes and

status updates

8/8/2019 Calitera v 4

12/17

Short term plan

3. Marketing

1. Unify process and procedures for both

companies. (Branding)

2. Exchange reports of market trends, bi-weekly3. Weekly status reports from the teams on the

advance

Objective: Unify marketing operations and

keep track of the market trends

8/8/2019 Calitera v 4

13/17

Short term plan

4. Quality and shipments

1. Improve quality controls (to US standards) on

shipments from Chile.

2. Hire the services of a surveyor for the dispatchprocess, to meet Mondavi standards

Objective: Avoid future shipment rejections,

and unify the end quality of the product.

8/8/2019 Calitera v 4

14/17

Long Term Plan

Change management process

Driven by an external company

(consultant)

Asses all the existing gaps

Set an action plan to fit

Control and monitoring

Constant improvement See exhibits 1 & 2

8/8/2019 Calitera v 4

15/17

Short term plan

Risks

Relays on the English /

Spanish level from

employees. Long term effectiveness

Punctual solutions

Does not prevent future

issues

Benefits

Fastest solution available

Fast implementation

Low Cost

8/8/2019 Calitera v 4

16/17

Long term plan

Risks

Lead / Execution times

Cost

Depends on a third party

Requires a retention plan

for employees

Training times

Affects all the employees

Benefits

Long term solution

Constant feedback

Handles cultural

differences / changes

Attacks bottom line

problems

Employee improvementplan

Avoid future costs

8/8/2019 Calitera v 4

17/17

Conclusions

Owners must be clear from the beginning about what they expect ofthe new company. This statement must avoid any chance to havesecond readings or interpretations.

Companies cultures and styles are different, being the mayor cause of

many misunderstanding between both companies, in the past.

Companies cannot assume nothing as granted, especially if they aredealing with partners from other countries. Set policies andprocedures, as clear as possible for every member of the organizationin order to avoid assumptions.

Caliterra was a running business before the joint venture with its ownculture. Unfortunately it didnt meet Mondavi standards.