Wine company - Essay Example

Without these control mechanisms, their quality, service and even their relationships with the clients are immaterial. While globally operational companies take years to establish an effective and smooth running logistical system, Chateau Direct has to make one quickly since their business is being drastically reduced due to competition which has better tools in place. A supermarket like Wal-Mart often has a logistical system which is the envy of thousands of companies therefore to compete with that might be difficult if not completely out of the question.

While Chateau Direct improves its logistical system it should also look into becoming a supplier of premium wines rather than compete in a situation which is becoming increasingly an uphill battle with corporate giants. The analysis given by the American gentleman is perfectly accurate in many regards but the situation is not as drastic as Mr. Lirac has been led to believe. With property values rising as sharply as they are, the value of his business is considerably more than 7 million pounds.

Even if he were to sell the company along with all its landholdings and assets he should get a reappraisal based on current property values and evaluations of stock before taking such steps. Luckily, with a little elbow grease and some management controls selling the company would be unnecessary. The biggest dog for the company is the bottling plant. From the case study it is obvious that it would take a major investment and restructuring initiative for the company to become a performer in this section and for very obvious reasons it is one of the last bottling plants left in the U.K. while being an exclusive bottler of wines in Britain can be a marketable advantage it would not be as significant as the cost savings which could be achieved with closing the plant, selling the property and using that money to reinvest into the business where money is required desperately.

For instance, the bonded warehouse where a