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Critical evaluation of Steve Millar's approach - Essay Example

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Case study Analysis Part A Answer 1 Introduction: Steve Millar, the Managing director of the South Australia Based of wine company, i.e. BRL Hardy, used to have vision of making the company as one of the world’s first truly global wine companies. In order to accomplish this vision, Miller had propagated some new strategic as well as functional changes within the existing business disposition of the company…
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Download file to see previous pages overseas business expansion, and decentralization of authority. Critical evaluation of Steve Millar’s approach: The above mentioned approaches of Miller had been reflected quite intensively in the decisions and strategies formulated by him. In order to be international, Miller had undertaken the route of merger and acquisition. For instance, in order to get entered within the market of France, the company acquired a century old Domaine de la Baume, which is well reputed winery brand with French market. Along with this, there are a number of different other important established domestic and exports French brand was acquired BRL Hardy for the purpose of expanding within France, in the year 1990. Six months later, the company acquired Italy’s oldest winery, named as Brolio de Riscoli for the purpose of clearing the way to get entered within the market of Italy. Along with this, UK is also one of the most prominent markets of the company in which the company earned quite intensive amount of profits. In this regard, the company established its direct subsidiary within the country. Moreover, the company undertook several crucial mergers and acquisition across Asian and American regions for the purpose of supporting it overseas diversification approach of Miller (Johnson, Scholes and Whittington 2011). This approach of Miller can be supported on the ground of growth related corporate level strategic orientation for the organization. As per this approach, business diversification at global level is one of the most efficient ways to reduce the impact of external business environment. This approach of Miller supported him to make an efficient portfolio for its business operations, which had proved quite helpful for the organization to diversify the external environmental risk (House et al 2004). For the long term perspective this strategy of Miller can be appraised. The concept of systematic risk mitigation also advocates the approach of Miller regarding business expansion at international level. However, the case reflects that in order to be international, the disposition of the company in the domestic market was weakened due to international business expansion. This is one of the most critical issues associated with the international business expansion approach of Miller (Hill 2011). In addition to this, the second approach of Miller, for the purpose of making BRL Hardy as an international brand, was related to the decentralization of the management structure of the organization within its international business strategy of the organization. As per this approach Miller was the strong believer of providing some intensive power and authority to the local administration and management of its different business location. In the context of this strategy, he handed over all the power of making decisions and planning to Christopher Carson for the purpose of managing all the operations and business activities of its UK subsidiary. This strategy of Miller was proved quite successful as UK subsidiary of the company made some intensive profits for the company in the year 1998. Miller wanted to have some intensive and deep involvement of Carson in the corporate planning and decision making for the company. However, the approach of Miller toward this decentralization was directed to align its European ...Download file to see next pagesRead More
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Steve Millar's approach to the challenge of leading BRL Hardy in 1998
Millar has first of all focused on the home market before focusing on brand introduction in the international market. Millar is critical of regional differences and tastes of wines. During the period prior to 1998, the global wine industry experienced numerous changes including the invention of scientific wine-making practices and production of high quality wines in countries such as South America and United States.
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