Australian Wine Industry Report

————————————————- ————————————————- Global and International Business Contexts Australian Wine Industry Report Word court: 2690 TABLE OF CONTENTS Chapters 1. Introduction 1. 1 Company background and brand concept 1. 2 Importance of Diversity and cultural different between European & Australia 1. 3 Develop a model and factors of buying behavior between European & Australia 2. Porter’s National Diamond model 2. 1 Factor Conditions 2. Home Demand Conditions 2. 3 Related and Supporting Industries 2. 4 Firm Strategy, Structure, and Rivalry 3. Strategic evaluation between European & Australia 3. 1. Measurable 3. 2. Accessible 3. 3. Substantial 3. 4. Actionable 4. SWOT analysis between European & Australia 4. 1. Product & packaging 4. 2. Price level 4. 3. Place (d istribution) 4. 4. Communication 4. 5. Opportunities and threats 4. 6 Economic conditions 4. 7 Political condition 4. 8 Socio-cultural conditions. 4. 9 Summary of survey Findings . Conclusion and financial recommendation 6. Reference 1. Introduction: After the discussion that related to managing globalization, diversity, globalization for business studies, the following can be the consolidation of my view that could be addressed. Globalization presents the free flow of technology and human resources across the world and national boundaries and spends of information technology, media as well as changing the world economic, training practices, competitive business environment. An increasing newcomers to the Australia workforce, globalization makes national culture strategic more complete, and need to be managed that came from populations that have been under-served in the past because of racial, ethnic, gender, or cultural differences. Social trends in Australia indicate that today's minority groups demand respect and equal treatment in mainstream institutions. I have indicated that business in the world organization, which can adjust their business strategies in our company for the changing demographic trend in Australia, should be successful firms in the future with increasing globalization. When firms in the world are seeking for the adjustable capability, as well as great globalization practice and training practice skills of HRM, they may look for the concept –managing diversity, culture, globalization, investment skills which is brought by Kandola and Fullerton (1998). In practicing managing diversity, spending aspects of HRM organizations strategic and investment are not using the traditional ones anymore. They should be cooperating with others such as sex, balancing of the global trends in human resource management, challenges arising from globalization, human resources management practice in the 21st century, to create organizational more effectiveness in wine industrialized. In our organization, it must manage and train this increasingly diverse workforce. HRM includes organization behavior activities are successful across cultures will depend on the manager’s abilities to understand the value on practice human resource management such as motivation, job satisfaction, the important of work. It also depends on working effectively with other people. They also learn by understanding and appreciating differences in values in different national borders. Individuals and globalization tend to develop cross-cultural communication skills and stronger leadership abilities in diverse situations. Thus, it is also promoted to achieve the organization goals. In general, l agree with Kandola (1995) summarize that similar demographic changes in Australia. Globalization requires attention to more than conducting business across national borders but also entails expending competition for almost every type of organization presenting management with the diverse cultural settings (Edwards, 2006) The change is related to the workforce such as sex, ethnic minorities, and age thinking global, decentralization, planned, differentiation, change, delegation, competition. Therefore, demographic and globalization trends have created to expand the labor power and increased international of markets. He points out that, all around the world‘s organizations will have to deal with managing diversity globalization not just in their countries. America’s workforce has highly concern over how cooperation can best manage their human resources such as motivation, training in increasing diversity environment. Therefore, this paper is direct toward what is the different between equal opportunities and managing Diversity, what is globalization’s consequence for industries, HRM in international’s values and organization behavior. Besides, it reflects that how it can link to change between European and australia. This paper not only direct toward how an organization can expand its international business opportunity and globalization, but also get the analysis how an company create new environment to richer solute their problem which with the advent of globalization between European and Australia. 1. 1 Company background and brand concept Chateau Lafite, On 8 August 1868, which was under public sale as part of the Ignace-Joseph Vanlerberghe succession Chateau Lafite Rothschild for the preceding period. Just 3 months after the purchase, Baron James passed away, and Lafite became the joint property of his three sons: Alphonse, Gustave and Edmond. The estate then included 74 hectares of vineyards Nowadays, the company believes that Australia is the important market target and wants to expend their market share. 1. 2 Importance of Diversity and cultural different between European and Australia While Chateau Lafite adds diversity and facing cultural different in their market when it want to expand to Australia, they will found the skills and potential of their products and employees. Managing diversity and cultural different is said to contribute to organizational success (Gardenswartz & Rowe, 1998). It is also contended that it enables the best talent to be retained clients (Ross & Schneider, 1992) and enables more creativity to giving our fresh clients (McNerney, 1994). In addition it is suggested that a managing diversity and cultural different approach ensures business survival through resilience and flexibility (Gardenswartz & Rowe, 1998), reducing costs and increasing profit (Kandola, 1995) and improving customer service and sales to fresh clients (Kandola, 1995). Some benefits models that are associated with a managing diversity and different cultural approach, such as increased morale of our customers, having a competitive edge are difficult to prove (Kandola & Fullerton, 1994). Moreover, the emphasis placed on the role of line managers, and the practicability of such responsibility has been questioned (McDougall, 1998). In addition, the potential disparity between espoused organizational rhetoric on managing diversity and different cultural and the reality of organizational practices in key marketing segmentations areas (McKay & Maxwell, 1998) has been highlighted. Anderson and Metcalf (2003) examined ‘the evidence and analyzed a range of academic studies on the business benefits of diversity and different cultural and their conclusions indicate that narrow studies on the business benefits definition, organizational goal and operational contexts make it difficult to draw reliable conclusion from these studies’. The point to the complexity of the evidence of business enefits, contending that there are many types of diversity- social category: age, race, and gender, and argue that more satisfaction products are needed to identify causal links between the management of diversity and the outcomes for the profit of the Chateau Lafite. The external business environment is changing and organizations need to maximize the contribution of market target clients of Chateau Lafite in the product lines to retain competitive advantage. Customer focus In general, customer focus is about age-neutral polices at Aberdeen City Council, it encouraged a pplication from all age groups, dive positive feeling to customers. Chateau Lafite extend the customers base because it provided employment opportunities for more that 100 disabled people for training and improving store access. Business process improvements It is business process improvements. Chateau Lafite changed their approach to retain old clients, they can produce flexible product such as party box, they can have support clients awareness and increased development product-lines opportunity, resulting in an increase in the over 40s who choose to remain. Innovation and learning It is innovation and learning. It is innovation and learning. BP implemented a Mutual Mentoring Programme which paired senior executive with junior executives who are different to them. Murray(2004) explained: the pairings are designed to foster understanding between people of different gender and backgrounds so, she goes on to state that BP reports that ‘it has proved motivating for both junior and senior staff but the sharing is improved communications and decision asking. ’ Those give the many difficulties develop of business case for diversity, it could be the clanked scorecard framework may be the way to move the debate forward. 1. Develop a model and factors of buying behavior between European and Australia One form of factors is the division between market and business marketing. Chateau Lafite can be grouped in many ways based on geographic factors which are countries, regions, cities; Behavioral factors which are purchase occasions, benefits market share. Chateau Lafite using Market segmentation may therefore be defined as the process of dividing of a market into distinct and increasingly homogeneous subgroups of customers in the several zones, where any subgroup can be selected as a target market to be met with a distinct marketing mix. Chateau Lafite can use Market segmentation based on the recognition that every market has potential buyers in china with different needs and different buying behavior. It may be grouped into segment and a different marketing approach will be taken by an organization for each market segment In business market, no one will satisfy all customers of theirs want and needs and taste. Each segment of the market offers a somewhat different opportunity. So, the marketers is need to attend to the needs of different clients of different market segment is in a better position to spot and compare the marketing opportunities. Chateau Lafite‘s market consists of widely different groups of consumers, but each group consists of people or organizations with common needs. 2. Segmentation buyer The total cost has several ways to segment a market. Firm Chateau Lafite has to think different segmentation variables, alone or combine. The major segment ways are geographic the locations, demographic, psychographic, and behavioral variables. Firstly, the locations geographic segmentation means that the market was divided into different geographical units for example, nations, states, cities, neighborhood, and regions. Chateau Lafite may make decision to operate in one or more geographical areas. They also need to operate in all areas and pay attention to culture, needs, wants, demands of the different geographical. In world region, Chateau Lafite has always made excellent winemaking and savoir-vivre an integral part of their legacy. Several generations of exceptional individuals have, over the centuries, worked toward a high principle: discovering soils with strong potential, and then producing the finest product possible. Secondly, psychographic segmentation which divides buyers into different based, such as social class, lifestyle, or personality characteristics. Marketer need to often segment their markets by customer lifestyles. Secondly, psychographic segmentation which divides buyers into different based, such as social class, lifestyle, or personality characteristics. Marketer need to often segment their markets by customer lifestyles. Social class. Company analysis of customers into socio-economic grouping. These grouping appear to provide reliable indicators of different consumer attitudes and needs for wide range of production. Life styles. Differences in personality, activities, interest, and opinions may be condensed. Company will be dividing the lifestyle dimensions into four parts. Lifestyle dimensions activitiesinterestopinionsdemographics workfamilythemselvesage entertainmentrecreationeconomicFamily size Social eventscommunitybusinessoccupation Personality, this includes the usage rate of the product by the buyers, whether purchase the service will be on impulse, customer loyalty, the sensitivity of the consumer to marketing mix factors, price, quality, sales promotion. Skin Food always has much promotion on showroom. Chateau Lafite’s innovative value-added services and marketing strategies have become the favorites of the young and young at heart. Besides, behavioral segmentation meant that it divides buyers into group based on their knowledge, attitudes, uses, or responses. This includes the usage rate of the product by the buyers, whether purchase the service will be on impulse, customer loyalty, the sensitivity of the consumer to marketing mix factors, price, quality, sales promotion. Occasion. Customers can be group when they want to purchased the product, they can get the product near themselves. So, Chateau Lafite’s firm needs to have regular occasion. Benefit. Benefit segmentation need to find the major benefits people look for in the product class, those people look for each benefit, and the major brand that deliver each benefit. So, Chateau Lafite’s product is selling the economic price fee of the makeup. Their product has good quality. In good service after the buyer buy it. They have personal customer service department. Is the customer has problems, there is a website and have customer service to help the consumers. Loyalty. A market also cab be segment by consumer’s loyalty. By studying loyal buyer, we need to know the buyer‘s interest, needs, behavior. So, Chateau Lafite’s product promotes the size are light-weight and to help to attract tourists Advertising strategy for Chateau Lafite Advertising and direct marketing are the two elements of a firm’s promotional mix with which consumers are most familiar. Advertising consists of messages paid for by an identified sponsor and transmitted through a mass-communication medium such as television, radio, or newspapers. Direct marketing is defined by the Direct Marketing Association as distributing promotional materials directly to a consumer or business recipient for the purpose of generating (1) a response in the form of an order, (2) a request for further information, or (3) a visit to a store or other place of business for purchase of a specific product or service. All forms of advertising and direct marketing have three objectives: to create product awareness, to create and maintain the image of a product, and to stimulate consumer demand. Advertising and direct marketing are also the promotional approaches that best reach mass audiences quickly at a relatively low per-person cost. But, to be effective, your messages must be persuasive, stand out from the competition’s, and motivate your target audience—a lofty goal considering that the average china resident is exposed to roughly 250 ads every day. Sales promotion for Chateau Lafite It includes a wide range of events and activities designed to stimulate immediate interest in and encourage the purchase of your product or service, is the fourth element of the promotional mix. The impact of sales promotion activities is often short term; thus, sales promotions are not as effective as advertising or personal selling in building long-term brand preference. Sales promotion consists of two basic categories: consumer promotion and trade promotion. We will use trade promotion Public relation strategy for Chateau Lafite Public relations encompasses all the non-sales communications that businesses have with their many stakeholders—communities, investors, industry analysts, government agencies and officials, and the news media. Chateau Lafite rely on public relations to build a favorable corporate image and foster positive relations with these groups. Two standard public relations tools are the news release and the news conference. A news release is a short memo sent to the media covering topics that are of potential news interest; a video news release is a brief video clip sent to television stations. Companies use news releases to get favorable news coverage about themselves and their products. When a business has significant news to announce, it will often arrange a news conference. Both tools are used when the company’s news is of widespread interest, when products need to be demonstrated, or when company officials want to be available to answer questions from the media. Personal selling strategy for Chateau Lafite Personal selling is the interpersonal aspect of the promotional mix. It involves person-to-person presentation—face-to-face, by phone, or by interactive media such as Web TV’s video conferencing or customized websites—for the purpose of making sales and building customer relationships. Many salespeople follow a carefully planned seven-step process from start to finish: 1. Prospecting. Finding and qualifying potential buyers of the product or service. 2. Preparing. Considering various options for approaching the prospect and preparing for the sales call. 3. Approaching. Contacting the prospect, getting his or her attention, and building interest in the product or service. 4. Presenting. Communicating a message that persuades a prospect to buy. 5. Handling objections. Countering the buyer’s objections to purchasing a product or service with convincing claims. . Closing. Asking the prospect to buy the product. 7. Following up. Checking customer satisfaction following the sale and building goodwill. All the DBR teams: Humbleness in learning: it takes time to make the soil excellent. Fine wines are the fruit of years of toil High quality standards: the meticulous respect of quality by using best practices, and the constant desire to improve these practices. Direc t marketing strategy for Chateau Lafite The most popular direct marketing vehicles are direct mail, targeted e-mail, telemarketing, and the Internet. †¢Direct mail. This form of direct marketing includes catalogs, brochures, videotapes, disks, and other promotional materials delivered through the china Postal Service and private carriers. †¢Target e-mail. Increasingly, companies are sending e-mails to highly targeted lists of prospects. This technique works much the same way as offline direct marketing campaigns. †¢Telemarketing. Telemarketing is a low-cost way to efficiently reach many people. But because it can be intrusive, several states have enacted legislation to restrict telemarketing activities. 2. Porter’s National Diamond model 2. 1 Factor Conditions These factors can be grouped into labor power, cost of labor, commitment, qualification level, knowledge resources, capital resources, and infrastructure. They also include factors like quality of research on universities, deregulation of labor markets, or liquidity of national stock markets. These national factors often provide main advantages, which are subsequently built upon. Each country has its own particular set of factor conditions; hence, in European will develop those industries for which the particular set of factor conditions is optimal. Porter points out that these factors are not necessarily nature-made or inherited. They may develop and change. Political initiatives, technological progress or socio-cultural changes, for instance, Technology replacement, technology change rapidly in recent years, Chateau Lafite must need to be constantly in touch with latest technology to help them provide best service possible. New challenge, European company can enter into market by cooperate with licensed company. Recently, it had developed a new brand, it is an important threat created in the market. 2. 2 Home Demand Conditions The factors are the state of home demand for products and services produced in European. Home demand conditions influence the shaping of particular factor conditions. They have impact on the pace and direction of innovation and product development. According to Porter, home demand is determined by three major characteristics: their mixture (the mix of customers needs and wants), their scope and growth rate, and the mechanisms that transmit domestic preferences to foreign markets. Porter states that a European can achieve national advantages in an industry or market segment, if home demand provides clearer and earlier signals of demand trends to domestic suppliers than to foreign competitors. Foreign customer, the amount of business visitor and tourist are continues increase in European. They need service to take local or international call, if they use service for each contract, it is too expensive. Therefore, Chateau Lafite can provide them a local service package. 2. 3 Related and Supporting Industries These factors competitive is supplying industries and supporting industries. One internationally successful industry may lead to advantages in other related or supporting industries. Competitive supplying industries will reinforce innovation and internationalization in industries at later stages in the value system. Service, Chateau Lafite identify customers introduction flexible service plan and various service to meet customers’ needs Customers also can create their own wine. A typical example is the shoe and leather industry in Italy. Italy is not only successful with shoes and leather, but with related products and services such as leather working machinery, design, etc. 2. 4 Firm Strategy, Structure, and Rivalry The conditions in European that determine how Chateau Lafite are established, are organized and are managed, and that determine the characteristics of domestic competition Here, cultural aspects play an important role. In different nations, factors like management structures, working morale, or interactions between companies are shaped differently. This will provide advantages and disadvantages for particular industries. Chateau Lafite ‘strategy, the marketing strategy restrict to expand customer group above 35 year old, because it will create duplicate target under group, because Chateau Lafite has another brand focus on marketing segment above 33 years regarding business person. Undifferentiated service, Chateau Lafite provide service similar to other competitors in the market in Australia. Therefore, it is difficult to attract more customers change their service. It fails to delivery addition value and satisfaction to the customers. 3. Strategic evaluation between European & Australia Although it is true that marketing effectiveness is a vital component of organizational Chateau Lafite effectiveness, it is not easy to measure, especially as marketing assets are hard to measure and value and accountants are suspicious of them. There are various ways to segment of this total, but not all segmentation has great effective. There are five approaches to quantifying marketing effectiveness and its impact on corporate performance. . 1 Measurable It is based on the size, purchasing power, and profiles of the segments. Those can be measured. Many segmentation variables are very difficult to measure. In demographics segmentation, the size variable, Chateau Lafite firm always force on the 1st September at l’Evangile, 5th at Duhart, 8th at Lafite, sweet whites from the 17th and after a superb month of September, harvesting ended on 1st October. The 2003 harvest will go down in history! The wines from this atypical vintage stand out with their richness, depth and smoothness with very rounded tannins. So this segmentation can helpful to know the great purchasing power here. In behavior segmentation, also show that student have the great purchasing power. 3. 2 Accessible Market segments can be effectively reached and served. In the segmentation find that, women who have children users are tourists and local people. Therefore, the firm will plan more showrooms in the four areas. The market segments can be effectively reached and served. The turn of the century went over smoothly, given the fine vintages that are currently aging in DBR cellars. Among them, 1990, 1995, 1996, and 2000 and some of the others will mature into renowned vintages In the segmentation find that heavy users of the attractive are younger, student, business women/ men. Therefore, the firm will plan more student promotion, customer’s service, and e-mail on the phone to clients for new products, seeing the artiste to using their product. 3. 3 Substantial Market segments are big or profit enough to serve. A segment should be big or profit enough to serve. A segment should be the largest homogenous group worth pursuing with a marketing program. It would not pay, for the product functions can see the other people, especially the women travel to the other places. 3. 4 Actionable Effective program can be designed for attracting and serving the segment. For example, Chateau Lafite makes use of the effective program can be designed for attracting and serving the segment. For example, Chateau Lafite can make use of artiste at china to attract younger users and business women to use The firm also makes many plan. So this can attract the segment as DBR (Lafite) has decided to develop a quality vineyard in China with the CITIC group. Out of the many regions visited, the peninsula of Penglai, province of Shandong, proved to be the most promising area for producing a great wine, in terms of its climatic and geological conditions. This region also possesses an ancient tradition in viticulture. The top quality soils enable planting of just over 25 hectares of vines on the slopes 4. 4P and SWOT analysis between European & Australia 4P stands for promotion, place (distribution), product & packaging, price. 4P and others environment analysis is a management tool which you can use in a wide variety of situations. 4. 1 Promotion We need to consider the success or failure of advertising campaigns. Is the organization using advertising to good effect? Did the product have successfully communicated to the potential customers? At market share and market size, is the organization in a strong or weak position? Has the company achieved a superior customer service? Product, we need to consider the sales by market, area, product group. Profit margin and overall profit contribution, are profits for each product good or bad? Does the company place sufficient emphasis on the quality of its work, both in terns of the goods it sells progress? At age and future life of product, did the company have a good balance between old and new product, and rising, mature? Raw material, we need to consider is there a single supplier or can supplies be obtained from numerous sources? No major new product has been derived from Chateau Lafite for two years. It will become too dependent on acquisition additions to product range. There is also little control over R budget. There are can not be low productivity on all lines at one plant. There are new development firm could threaten ability to compete. 4. 2 Price We need to consider the short-term and long term funds or cash flow. Is the organization in a strong or weak position for future cash flow? Does the company have returns on investment? Rapid changes have occurred in economic. We are living in the place china where continuous have increasing price change. Such as, the human genetic code has been cracked. Company also can sell the high price product. 4. 3Place (Distribution) We need to consider the service standards, what are delivery lead times, and how do they compare? We need to consider are research and development relevant to future marketing plan? Are the costs of research and development spending too much? How good for this research and development? In European, at 2008, there are the economic inflation. The economic environment will affect the general business cycle. Interest rate, inflation, changes in the income and stock market. Many things if they all decline, this will also affect the business cycle. When customers’ income fall, they will postpone purchasing anything that isn’t a necessity. At company, when the economic downturn in one place, our manager try to think many ways to attract more customers to buy things. It may be good service, good service for after buying the product. It also is to turn the price down. We will buy little from the store. 4. 4Communication (business management) Organization structure, is the properly suited to the organization’s needs? Are the communication links adequate? This is the values, customers, trend, taste preferences. Many managers must adapt their practices to changing expectations of the society in which they operate. As societal values, customers, and taste change, managers also must change. Such as, workers began seek more balance in their lives, organization have had to adjust by offering family leave policies, more flexible work hours. In each trend, it may have a potential constraint to managers’ decision and action. 4. 5Opportunities and threats An external environment is required to identify profit-making opportunities which can be exploited by the company’s strengths and also to anticipate environmental threats against which the company must project itself. For opportunities it is necessary to decide such as what opportunities exist in the business environment? What is their inherent profit-making potential? Is it given the internal strengths or weaknesses of the organization? Is it capable of exploiting the worthwhile opportunities? The opportunity may involve product development, market development, market penetration. Opportunities and threats may relate to SWOT items. At Economic, nowadays, general investment level, well market behavior for product, total high customer demands, so, there are many ways to have get profit. We need to consider more international level, world production, the volume of international trade, demand, recessions, import control, exchange rate. . 6Economic conditions Inflation part, in European, at 2008, there are the economic inflation. The economic environment will affect the general business cycle. Interest rate, inflation, changes in the income and stock market. Many things if they all decline, this will also affect the business cycle. When customers’ income fall, they will postpone purchasing anything that isn’t a necessity. At company, when the economic downturn, our manager will try to think many ways to attract more customers to buy things. It may be good service, good service for after buying the product. It also is to turn the price down. We will buy little from the book store and piano company. 4. 7Political condition many local governments will affect what organizations can and cannot do. Some federal legislation has affect implications. Such as, American’s company designed to make job more accessible to people with disabilities. Firm spend a great deal of time and money to meet government regulations. However, the effect of these regulations is not just money. Legislation may also affect a company prospects. We need to consider the ban on certain product. At Company, we also affect by the regulation of the government. For example, the contract, MPF. This also is affect by the regulation. We need to give 5% to each of staff to have MPF. 4. 8 Sociocultural conditions. This is the values, customers, trend, taste preferences. Many managers must adapt their practices to changing expectations of the society in which they operate. As societal values, customers, and taste change, managers also must change. Such as, workers began seek more balance in their lives, organization have had to adjust by offering family leave policies, more flexible work hours. In each trend, it may have a potential constraint to managers’ decision and action. 4. 9 summary of finding This paper studies on the findings the meant of diversity and adds to the managing diversity in to debate to provide the information of adding managing diversity on an organization’s benefits. This paper analysis indicates that in theory, managing diversity represents a positive progression of equality, in practice; globalization’s is consequence for industries, HRM in international’s values and organization behavior. Besides, it reflects that how it can link to change between European and Australia. This paper not only direct toward how an organization can expand its international business opportunity and globalization, but also get the analysis how an company create new environment to richer solute their problem which with the advent of globalization between European and Australia. 5. Conclusion and financial recommendation Based on the findings of this study, the researcher concludes the following: The respondents who took part in this study are already mature in age, responsible and reliable. They are also aware of what’s happening in the Chateau Lafite particularly to the strategies management (4 P and Porter’s National Diamond model) for their personnel and are deeply concerned about the improvement motivation and international marketing improvements practices. Majority of the respondents believes that although compensation technique has something to do in their motivation it is still very important to consider the â€Å"nature of work† variable. Most of the respondents accepted the fact that the levels of their performance in the job are highly related to compensation. This shows that respondents knew the importance of proper compensation to the progress of their organisation. For them long-term return should be the first thing to consider instead of short-term compensation. With respect to the overall perception of the respondents regarding job satisfaction and motivation impact on job performance, most of them responded agree. 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