Strategic Planning and Approaches in Business - Taylors Wine - Case Study Example

The great business performance Student’s Name Course: Instructor Institution Submission Date Contents Executive summary 3 Introduction 4 Problem statement of Taylor’s wine 5 Strategic planning and approaches in business 6 Relevant conceptual techniques and tools 7 The analysis of Taylor’s wine 8 Conclusion 10 Recommendation 10 Reference 11 Executive summary The problem of price changes that took place sometimes back in around the year 2000 caused the Australian dollar to rise significantly against other countries currency, thus affecting their local and international markets. As a result, most of the local wine industry performance decreased because most of the customers preferred imported wine products. In addition, the idea of wine industries in Australia being owned by overseas companies, gave Taylor’s wine a stiff competition both locally and internationally because they were able to adjust to changes that resulted due to global financial crisis. Moreover, the low growth rates in the local market and free trade increased the international availability of wines and high interest in international wine products. Based on the strategic theories, it is only the best or smart organization that will compete effectively in the competitive market due to their strategies. As a result of the market or environment changes, the capabilities and resources in the organization need to be revitalized for the competitive advantage to be maintained. However, when the company realized the new opportunities under the new management of Mitchell Taylor, it improved its performance because of the strategic management model that he introduced. Through the commitments of the family, Taylor’s wine was able to produce the great wine that spanned three generations and four decades. The new leadership and management of winery under the coordination of Mitchell Taylor, the family business managed to enhance their performance because of the management strategies formed through brainstorming and maintaining close relationship among themselves. Further, the creation of independent board members and incorporating experienced members from outside improved the company’s performance. However, Taylor’s wine business needs to do more market research in the international market and even local market, to facilitate development of suitable management strategies and models such as balance scorecard frame. Introduction Organizations are able to achieve great outcomes by devising strategies and goals that will ensure effective management, good culture, and friendly environment that will encourage high production in the business. The vision and objective of Taylor’s wine was to achieve great performance both internationally and locally. However, the external forces influenced the business negatively due to an increase in wine prices that resulted due to the rise of Australian dollar in the market. Despite these challenges of external forces, the business needs to be powerful for it to create opportunity and appeal members to be focused and effective. In addition, the commitment among the members that leads to productivity encourages innovativeness and creative strategies. On the other hand, Leadership in the business environment facilitated establishment of good environment and atmosphere, which encouraged effective operation, inclusion and trust among the members in the organization. Trust is an antidote that means confidence towards team vision and leadership. When trust prevails among the members, they are able to go through potential loss, risk, downs, supported through ups, and difficult process. Based on the great achievement of Taylor’s wines, the members have a reason to celebrate. In the late years, the business has won so many international and local awards because of their great performance that are realized through strategic management. The reputation gained by Taylor’s wines has enhanced its performance in the Australian’s wine industry. Taylor’s wine was an entrepreneurial organization whose main mission is to provide quality services and products to their targeted customers. The organization managed to take advantage in the market place due to their strategic position and the quality service that it offered to their customers. As a result of customer satisfaction, customers were willing to buy their wine products. According to Taylor, the quality of services and products was the main factor that positioned the brand of the business in the market. In addition, the time and resources invested in the business contributed greatly to their success because of the relationship build in the market. On the other hand, continuous revisiting of the market will enable the organization to interact with customers, a factor that improves the quality of the wine products by considering the needs of customers during the design stage. However, despite the challenges that exist in the market industry, Taylor’s wine finally managed to perform well due to their strong management and strategies that enhances capabilities and productivities (Kotler & Keller, 2011). Problem statement of Taylor’s wine The performance of Taylor’s wine industry has been affected by many external factors for a long period of time, causing customers to develop strong preferences towards the local products. One of the factors that have greatly affected the performance of Taylor’s wine is the variations in exchange rates, a factor that gives advantage wine industries from different countries (Pearce, J. A., & Robinson, R. B., 2012). For example, during the global financial crisis the industry was disadvantaged because most of the customers preferred wine products from other countries due to the significant price increase in Taylor’s wine. The issue of price changes took place when Australian dollar rose significantly against other countries currency, thus affecting their local and international markets. On the other hand, the low growth rates in the local market and free trade increased the international availability of wines and high interest in international wine products. In addition, the fact that most of the wine industries in Australia were owned overseas, gave Taylor’s wine a stiff competition both locally and internationally. Therefore, an increase in the channels among the global owners eased the distribution of imported products of wine (Farid, M. and Flynn. D., 2000). Moreover, among the developed countries the consumption of wine was considered to be fashionable and sophisticated, hence increasing consumption when the income per capita increases. In addition to changing the consumption, the consumers also changed their grape choice most of the wine from Australia was consumed by New Zealand and other countries. However, the low response of the Australian production of new grapes to conform to the wine fashioning, lowed the performance of Taylor’s wine. The industry made lower sales during these years around 2000s because was unable to produce fashionable and sophisticated wines as demanded by customers in the market. Another problem that Taylor’s wine had was poor plan implementation especially meeting the timelines established during the design or planning stage. As a result of this weakness, the company was not able to achieve its sales budget for many years (Kotler & Keller, 2006). Strategic planning and approaches in business Strategic planning entails decision making among the team members to create value for key stakeholders and customers in the organization. The team members need to be focused and integrate the organization functions to facilitate the realization of long terms goals of the organization. The effective strategies created by the team members should be implemented for the business to outperform its competitors in the market. Therefore, best strategic planning in the organization enables it to perform better than other organizations (Nokelainen T., 2013). For example, Taylor’s wines managed to improve from good to greater performance due their strategy enhancement, which enabled it to compete effectively in the international market. According to most of the strategic theories, the business environment keeps on changing, thus demanding for organizations to change or advance their strategies to ensure that their customers, stakeholders are satisfied with their services or products. Based on the strategic theories, it is only the best or smart organization that will compete effectively in the competitive market due to their strategies (Feig, N., 2012). As a result of the market or environment changes, the capabilities and resources in the organization need to be revitalized for the competitive advantage to be maintained. On the other hand, the management of the organization should be effective by monitoring and considering their communication, culture, employees, leadership, systems structures, capabilities, and resources. These are the factors the management of Taylor’s wine considered for the organization to realize greatness. The effective flow of information and clarity in decision making facilitates execution of strategies in the organization, a factor that enhances great performance (E. E. Bailey, D. R.Graham, and D. P. Kaplan, 1985). Relevant conceptual techniques and tools Based on the past records of Taylor’s wine, the implementation strategy of balance scorecard will effectively help the business improve their operation and implementation of their plans. According to the strategy frame, attending all the seven factors such as subordinate goals, skills, staff, style, systems, structure, and strategy during the implementation enhances the performance of the business. In addition, the strategy requires effective strategy formulation and the creation of the best culture, which facilitates operation in the business. On the other hand, communication among the workers and management is important because it improves the coordination within the company. Therefore, the wine manufacturing company needs to adjust their capabilities and administrative system to stand a better chance of attaining great performance (Bartlett, C.A and Ghoshal, S., 1987). For Taylor’s wine to address the challenges of international market, it is necessary for the management to involve the international experts who are able to analyze the market and devise the best strategy of improving the business competition. The analysis of Taylor’s wine The industry of Taylor’s wine was one of the wine producers in Australia using grapes that are produced locally. Unlike other wine producers that had overseas ownership, Taylor’s wine was a local wine company managed by the family members. Taylor’s wine had so many challenges due to some external factors that reduced their sales in the market. Variations in exchange rates a problem that resulted during the global financial crisis disadvantaged the business because most of the customers preferred wine from other countries (Haverila J., Uusi-Rauva E., Kouri I., Miettinen A., 2009). Most of the Australian wine manufacturers had increased their prices because the dollar of Australia had rose against other countries currency, a factor that gives advantage wine industries from different countries. On the other hand, the fact that Australia was not able to adjust to the production of new grapes deterred the local wine industries from manufacturing fashionable and sophisticated wines. These challenges among many other factors contributed significantly to the low sales of Taylor’s wine (Taylor’s wine organization, 2013). However, when the company realized the new opportunities under the new management of Mitchell Taylor, it improved its performance because of the strategic management model that he introduced. Mitchell Taylor was a B. commerce graduate with great experience from stockbroking and banking industry. Through the commitments of the family, Taylor’s wine was able to produce the great wine that spanned three generations and four decades. Therefore, the firm decision made by the director and other family members’ facilitated production of wine that stood the market test and fulfilled the needs of customers (Hambrick, Donald C. & Fredrickson, James W. 2001). Through the leadership of Mitchell Taylor, the family business managed to enhance their management strategies through brainstorming and maintaining close relationship among themselves. On the other hand, the creation of independent board members and incorporating experienced members from outside boosted the Taylor’s wine performance. Therefore, the business was able to deal with the international market because of the expertise of the newly recruited members who brought ideas on how to improve performance in the market. Taylor’s wine transformed from good performance to great performance due to their focus, determination, and their best strategic management that helped them realizes opportunities (Johson, Gerry & Sholes, Kevan 2002). Working in Taylor’s wine was a great privilege for many workers due to their business friendly culture and the environment that encouraged effectiveness in production. The respectable family culture and the strong environment facilitated the achievement of the business goals and objective hence creating customer satisfaction in the local and international market. After an effective implementation of the strategy, the management needs to evaluate the performance to identify whether the implemented factors are interacting effectively. Conclusion The business also needs to identify the best alternative and opportunities that will facilitate the attainment of the business goal. The fact that business environment keeps on changing, the organizations need to change or advance their strategies to ensure that their customers are satisfied with their services or products. As a result of the market or environment changes, the capabilities and resources in the organization need to be revitalized for the competitive advantage to be maintained. The organization need to establish functional measurable tactics that will help in realizing the capability of staff and improve on their innovative services to achieve the business objective. For the strategic plan to be successful in the business, the implemented factors need to relate effectively and enhance the operation of the business. Focus, determination, and the best strategic management should be implemented to help the organization realize opportunities both in the local and international market. Recommendation I recommend the business of Taylor’s wine to consider the frame balance scorecard during the implementation of strategic management. In addition, it needs more of the international market experts who will help in analyzing the market and devise the best strategies that will facilitate growth and great performance. Setting deadlines and milestones will enable the strategic plan to work well for the wine company to achieve their goals. Therefore, specific deadlines should be set to effectively achieve the established plans within the required time. In addition, the establishment of time framework will facilitate delivery of services and wine products in time, hence creating customer satisfaction. Taylor’s wine management need to do more research in the market to establish what exactly is required for them to compete effectively in the international market. Moreover, more strategies need to be devised to counter changes in the markets, a factor that will stabilize wine business both locally and internationally. Incorporation of more international experts and ensuring effective implementation of strategies using the best framework will add value and facilities or improve the quality of wine products. Reference Pearce, J. A., & Robinson, R. B. 2012. Strategic Management. Formulation, Implementation, and Control (12th ed.). Boston, MA: McGraw-Hill Company. Kotler & Keller. 2006. Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall. Bartlett, C.A and Ghoshal, S. 1987. “Managing across borders: new strategic requirements” Sloan management review, Vol. 28 No. 2, pp. 7-17. Taylor’s wine organization, 2013. Taylor’s wine industry. Retrieved from Securities and Exchange Commission: http://www.sec.gov/cgi-bin/browse. E. E. Bailey, D. R.Graham, and D. P. Kaplan 1985. Deregulating the Airlines. Cambridge, Mass: MIT Press. retrieved: http://www.cato.org/doc-download/sites/cato.org/files/serials/files/cato- journal/1985/11/cj5n2-20.pdf Farid, M. and Flynn. D. 2000. The strategic choice: an examination of the critical factors. Retrieved on April 8, 2012 from www.findarticles.com. Feig, N. 2012. Businesses are creating a new kind of customer intimacy with web 2.0 and social networking. Retrieved on April 9, 2012, from www.banktech.com. Pearce, J. A., II, Robinson, R. B. 2011. Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Taylor’s wine vision and values. 2012. Retrieved on April, 09, 2012, from www.taylor’swine.com. Haverila J., Uusi-Rauva E., Kouri I., Miettinen A. 2009. Teollisuustalous. Infacts Oy, 6th edition, 510 p. Hambrick, Donald C. & Fredrickson, James W. 2001. Are you sure you have a strategy. Academy of Management Executive, vol. 19, no. 4, pp. 51-62. Johson, Gerry & Sholes, Kevan 2002. Exploring Corporate Strategy, pp. 3-10. Harlow: Pearson Education Limited. Nokelainen T. 2013. Lecture slides for course Strategic management. [WWW]. Availability limited. Available: https://moodle2.tut.fi/pluginfile.php/150454/mod_resource/content/1/Lecture2.pdf Kotler & Keller 2011. Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall. Read More