Written Case Assignments

Case analysis comes closest to business practice without having students run an actual
organization or do consulting to one. I expect students to keep up with theoretical readings
and apply the concepts in written case analysis papers and in class discussions. Four written
case papers will be required. I will assign a specific question or questions for you to answer for
the assignment. I may give you some other questions to reflect upon or consider for your own
edification while reading the case, but only write about the assigned question(s).

Written Case Papers should be a single page in length max, with single line spacing (one-
inch margins, 10 or 12 pitch fonts). They should be uploaded to the Assignment feature under
the appropriate weekly leaning module by the start of our class time in the week in which it is
assigned. The due date is listed in the assignment feature. Some late penalty will be applied
to late submissions.

I advise you to be very direct in answering the assigned question. I don’t need background
information, fancy introductions, or coverage of other issues in a case not directly related to
the question. These take up space and prevent you from answering the question in depth. Be
sure to apply appropriate course theory. The progression of theory in the text somewhat
corresponds with the assignments, but there is not necessarily a direct correspondence between
the chapters assigned in a particular week with the case assigned for that same week. Also,
some theories covered in the text may not apply to the particular focus question that I have
assigned. Your job is to recognize when a particular theory, model, framework, or tool is
appropriate and to use it correctly. Again, make sure you clearly answer the question, or
questions if there is more than one. Put as much depth on topic as is necessary to thoroughly
answer the question.

Please do not bring in outside sources for the written case papers. Cases need to be dealt with
in the time frame of the case and with the facts of the case; bringing in data from years later
can confuse the issue. In addition, case analysis is not about establishing absolute reality; it is
about learning to apply concepts, models, tools, etc., correctly. I have seen cases by different
authors on the same company give very different impressions of reality because of differences
in information included. I will be grading your case assignments based on the information of
the case. Extra sources would be more appropriate for our discussion of the case.

Study the Mondavi Wine case and write a paper on the following question: Comparing the
old-world wine industry with the new-world wine industry, which is economically and
structurally the healthier industry to be in? Why?
.
You should review what I wrote about written case assignments in the "Get Started Here"
menu item. For your own edification (but not for written assignment), please consider: What
is causing consolidation in the wine industry?
Please note the question for written assignment takes the view of the OW (old wine industry)
and NW (new wine industry) being somewhat separate industries. While this is not exactly
true, and less so today, the author does give us lots on information on each as if they were
somewhat separate. Please look at it as comparing the structure of two industries.
Chatrthira Michas
MGT609
Mondavi Wine Case
The new-world wine industry is economically and structurally the healthier industry to
be in. The New World manufacturers invested more in technology and automation. These
investments and innovations provide benefits in improving production efficiency and quality
while reducing errors and waste, increasing safety and flexibility in the production process.
Also, these techniques allowed them to significantly enhance the stability and quality of the
wines and reduce operating costs. For instance, the New World producers relied more on
machines to harvest grapes in their vineyards, while most European wineries continued to
handpick their entire supply of grapes which is slower and making long process. The New
World also had more comprehensive and well-developed markets for grapes, making it easier
for winemakers to find a variety of ways to find the most important inputs. Moreover, there are
major institutional differences between these geographic markets. An institutional framework
is made up of formal and informal institutions governing individual and firm behavior. In
Europe, formal institution or strict regulations controlled many aspects of winemaking
including planting, irrigation, classification, and labeling. The France government are very
strict regulations that constrain producer behavior. For instance, wineries only can identify
sparkling wines as "champagne" if produced using three varieties of grapes grown in the region
of the same name. On the other hand, there is limited production control in many countries
such as the United States, Chile, and South Africa. The Australian industry has a very loose
regulatory control. For example, manufacturers can label wine on the basis of procuring grapes
from an extensive geographical region within the country, while France has clear and very
strict rules regarding the appeal and naming related.
Wineries in Europe rarely participate in consumer branding. Instead, wines were well-
known by the region name. However, branding is important since it helps distinguish producer
or company from the competitors and clarifying what the companies have offer that makes
them the better choice. The New world producers tended to categorize wines based on the
variety of grapes used to make wines which make inexperienced consumers find it easier to
associate the wine's flavors with various grape varieties. Moreover, the New World wines
invest heavily in activities designed to educate consumers about wine and to build awareness
on the consumers. They hoped to increase per capita consumption by increasing product
knowledge levels among new world consumers. They also spend more money on advertising
and sales promotion to create branding through television and radio advertisements to promote
their brands. Advertising is a good strategy to generate brand loyalty, it allows for companies
to target their customers and create lasting connections with them. This strategy builds a sense
of familiarity and trust in consumers, ensuring that they are still loyal to your business. Ads
use images, words, and ideals that target the demographic company want and encourage them
to focus on your business.
Wine industry consolidation happened over different types of acquisitions, when a
transfer of operational control and management from one company (target) to another
(acquirer). First of all, the premium wineries purchased or merged with direct competitors. For
example, Southcorp and Rosemount merged to become the main Australian wine producer to
maximize they profit and stand out from other rivals. Secondly, jar wine producers began to
acquire premium wineries in order to keep pace with changing consumer tastes. For example,
Constellation Brands, a leading jug wine supplier, currently purchased small premium wineries
such as Franciscan Estates and Turner Road. Finally, other alcoholic beverage industry such as
beer and spirits firms had begun to extend operations into the premium wine businesses because
their own markets are in the maturing stage.