Steve Millar's approach to the challenge of leading BRL Hardy in 1998 - Essay Example

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Name: University: Course: Tutor: Date: Question one: Steve Millar’s approach to the challenge of leading BRL Hardy in 1998 Introduction Steve Millar is using the best approach in leading BRL Hardy in “becoming one of the world’s first truly global wine companies’…
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Download file to see previous pages The Australian industry was increasingly becoming competitive in the global markets with 27 percent of production being exported (Barlett & Beamish 2011). Steve Millar should continue protecting the share of bulk case business while committing resources to growth of bottled wine. Millar should first of all attain merger efficiencies in terms of scale of production and cost control. Millar is also keen at changing the leadership styles and culture of the new organisation. Barlett & Beamish (2011) assert that a decentralized approach is essential for local responsiveness in the global strategy since the regional management will be accountable for their decisions. For instance, Millar has delegated the small risks while keeping a close watch of the high risk decisions that affect the global strategic business. This is a good approach of global strategy since delegated authority will allow the regional management to challenge the authority and admit mistakes. This leadership approach will facilitate creativity and innovation in the fast changing global wine industry. Millar has ensured adequate delegation of authority and responsibility. For instance, he has appointed Stephen Davis, a seasoned strategic thinker as the group marketing and export manager tasked with establishing the international operations. Davies intended to build on the strengths of the company by proving quality wines and repositioning the superior brands in the global markets. At mass market prices, Nottage Hill and Stamps were essential while at the top end market points, Eileen Hardy brand was important (Barlett & Beamish 2011). The local responsiveness has in the global strategy yielded increasing profits for the company. For instance, Millar is critical in resolving disputes between Carson and Davies on the global strategy. For example, he is of the opinion that Carson should report directly to headquarters on profitability measures and work with Davies on the marketing and labeling issues of the wine brands in UK market since Nottage Hill and Stamps are cash cows for the group company in terms of sales value of Hardy brands. Both Millar and Davies are of the idea that the headquarters should be the global brand owners, but local responsiveness is essential in meeting the local needs of the consumers (Barlett & Beamish 2011). The overseas should be not only responsible for promotional strategies, distribution channels and profitability, but should also take up other important decisions pertaining the labeling and branding. In the global strategy, Millar should ensure that important aspects of the wine brands such as labeling, pricing and branding are controlled by the regional managers through delegated authority. However, he will accept proposals on design from the regional management and ensure common decision making in evaluating the proposals (Barlett & Beamish 2011). On the part of suppliers, Millar should minimize the risks of supplier failure due to bad weather, grape disease and other factors that can negatively affect the quality of grape supplies. Millar should source the grapes from multiple reliable suppliers. The regional managers such as the UK based market should be allowed to select their own suppliers depending the expected product quality and taste. Millar should institute more delegation on the brand production. For instance, Carson ...Download file to see next pagesRead More
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