Sunday, August 18, 2019

Casella wines ? Export success :: essays research papers

1.Identify its international markets   Ã‚  Ã‚  Ã‚  Ã‚  US and North America identified o  Ã‚  Ã‚  Ã‚  Ã‚  Distribution network – 44 states. o  Ã‚  Ã‚  Ã‚  Ã‚  Size – initially estimated 20-30 thousand cartons to 100 thousand cartons, reality was 20 to 200 thousand. o  Ã‚  Ã‚  Ã‚  Ã‚  Annual sales $3 million.   Ã‚  Ã‚  Ã‚  Ã‚  UK o  Ã‚  Ã‚  Ã‚  Ã‚  Some regional supermarkets hoping to expand to majors.   Ã‚  Ã‚  Ã‚  Ã‚  Mainland Europe o  Ã‚  Ã‚  Ã‚  Ã‚  Some beginning sales. 2.Describe and analyse the reason for its international expansion   Ã‚  Ã‚  Ã‚  Ã‚  Increase sales/find new markets – domestic market oversupplied   Ã‚  Ã‚  Ã‚  Ã‚  Minimise competitive risk   Ã‚  Ã‚  Ã‚  Ã‚  Economies of scale   Ã‚  Ã‚  Ã‚  Ã‚  Cushioning economic cycle   Ã‚  Ã‚  Ã‚  Ã‚  Comparative advantage o  Ã‚  Ã‚  Ã‚  Ã‚  High cost of labour and land in US. 3.Explaing the influences on this business in the global market Political Tensions between free trade and protection   Ã‚  Ã‚  Ã‚  Ã‚  Globalisation seeing removal of barriers   Ã‚  Ã‚  Ã‚  Ã‚  Eg. Quotas, tariffs, subsidies – statistics   Ã‚  Ã‚  Ã‚  Ã‚  Exports of wine have increased from 3% of sales to 52% of sales in 2002. this equals $2.3 billion dollars or 414 million litres   Ã‚  Ã‚  Ã‚  Ã‚  US greatest source of export growth   Ã‚  Ã‚  Ã‚  Ã‚  Australia’s export policy has led to major reforms in the Australian wine industry   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬ËœRationalisation of wine production’ leading to overall efficiency giving them cost advantages over their competitors and reshaping of distribution lines.   Ã‚  Ã‚  Ã‚  Ã‚  4th largest wine exported in the world with 5% of global market International organisations and treaties   Ã‚  Ã‚  Ã‚  Ã‚  1994 Uruguay multilateral agreement (WTO)   Ã‚  Ã‚  Ã‚  Ã‚  Agreement to reduce protection on agricultural products (wines/grapes) by 36% by 2000   Ã‚  Ã‚  Ã‚  Ã‚  UK has the largest export market of wine Trade agreements   Ã‚  Ã‚  Ã‚  Ã‚  US and Australia have strong trade relations and trade agreements War in the Middle East Weak economic conditions Social Consumer tastes   Ã‚  Ã‚  Ã‚  Ã‚  Global markets have been increasingly integrated   Ã‚  Ã‚  Ã‚  Ã‚  Growing demand for mass market, high quality wines and a recognisable brand   Ã‚  Ã‚  Ã‚  Ã‚  Marketing of wines ‘other benefits’ has increased consumption globally   Ã‚  Ã‚  Ã‚  Ã‚  Strong economic growth period sees wine viewed as a luxury good, something consumers buy when they feel conditions are good as their incomes are increasing. Also at this particular price range fluctuations do not vary with economic conditions   Ã‚  Ã‚  Ã‚  Ã‚  Strong market for Australian markets taking off in the US Financial   Ã‚  Ã‚  Ã‚  Ã‚  Currency fluctuations   Ã‚  Ã‚  Ã‚  Ã‚  Weak Australian dollar has helped making Yellow Tail a better taste at $7 and a lower price than its Californian counterparts which are hobbled by high cost of land and labour   Ã‚  Ã‚  Ã‚  Ã‚  Currency fluctuations would have to get way about 70 cents for Casella to be unprofitable without a price change Legal   Ã‚  Ã‚  Ã‚  Ã‚  None mentioned 4.Explain the strategies used by the business to achieve its target markets

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