Task 1: Summarize the strategic position of Schultz Wines Limited
a. What type of organization is Schultz Wines Limited?
Schultz Wines is a listed Australia company. It was established in 1840s by one of the founding winemaking families of Barossa Valley in South Australia who had immigrated from Germany. It has been run by the fifth generation, Frederich Schultz, since 1983 when his father retired. The company was listed on the Australia Stock Exchange in 1996.
b. What industry, product segments/markets does Schultz Wines operate in?
Schultz Wines ranked 7th among the Australian wine producing companies. Core activities cover harvesting, crushing, fermentation, ...view middle of the document...
) The total sales revenue per litre also experience a medium growth for table wine and sparkling wine (5.5% and 6.9% respectively), and a slow grow for fortified and other wine (1%). An oversupply of export market red wine results the price of red wine declined on the export market. By 2009, the consumption of wine in Australia had increase to an average of 23.3 litres per person per year which represents an average of 1.4% per annum over the last 10 years. However this is still low compare to UK and US. Over recent years, the Australian industry is now experiencing slowing export and domestic consumption growth, increasing numbers of wine brands and industry consolidation through a number of mergers and acquisitions. This is evidence of a low growth environment, wherein the industry is at the mature stage of its life cycle.
| |Average % growth per annum |
| |Table wine |Sparkling wine |Fortified and other wine |
|Total production |21.0% |6.5% |2.9% |
|Total sales |14.6% |3.9% |-1.0% |
| - Domestic sales |4.2% |2.3% |-1.9% |
| - Export sales |42.0% |15.0% |20.0% |
| - Import sales |-4.1% |6.7% |5.0% |
|Total sales $ per litre |5.5% |6.9% |1.0% |
| - Red wine |2.4% |not available |not available |
| - White wine |8.1% |not available |not available |
d. What have been the key issues affecting historical industry growth? What was their impact?
The growth in winemaking industry has been low to medium over the period from 2000 to2009. While table wine and sparkling wine domestic sales has grown by an average of 4.2% and 2.3% per annum respectively, indicating low growth, the fortified and other wine has even decreased by an average of 1% per annum. In addition the total sales $ per litre for table wine and sparkling wine have grown 5.5% and 6.9% per annum respectively, indicating medium growth, the fortified and other wine has grown only 1%, indicating low growth.
Using the remote environment analysis model, these historical growth rates to date have been affected by the following issues given in...