Bonny Doon Case Analysis Essay

Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.

David Jones’ gross profit margin for the past three years has remained stable with minimal fluctuations. The following calculated figures are for the year 2010, 2011, 2012, and 2013; 39.73%, 39.10%, 37.50% and 37.8% respectively. Such an observation is desirable as it is indicative that the company is financially stable as it is generating enough income to cover its operating expenses and make savings. It suggests that the industry in which the company operates has not experienced drastic economic fluctuations that can affect the company’s cost of goods sold. However,

Ceja vineyards passage into the distribution market of the winery may be confronted with a few forces from rivalry. The principal is a danger as another entrant. As another entrant focusing on the U.S. Hispanic purchaser fragment, they may require Ceja to revamp their premium wine Ceja is known for. They may acquire considerable incremental promotional costs, and they may lose their quickly developing sales channel of their wine buying club. Ceja access to distribution channels can be a boundary to section additionally, in view of the new entrants ' have to get distribution for its item. As another entrant they may need to influence the distribution channels to acknowledge its item by giving

As the owner of a fast growing health food products business, I have developed a resilient relationship with one of my distributors, a produce company which provides Muscadine grapes to my company. The

In 2007 and 2008, Dannon, the #2 yogurt provider, was losing valuable market share to its top competitor Yoplait. Despite the growth opportunity in the domestic U.S. yogurt market, Dannon’s growth had surprisingly slowed. At the end of 2008 Yoplait was the U.S. yogurt market leader with 35.4% of the market dollar share while Dannon only held 28.9% of the market. Yoplait held a competitive advantage over Dannon

This is bringing about a glut of cheap, decent wine into the market at a time when Napa real estate is pricey and our wines expensive as a result. Economically, we have a price sensitive market and our sales as a result can be expected to decline in the event of a difficult economy. The Congressional Budget Office is expecting slow growth for another two years. We face a couple of key domestic risks as well. The first is that some of the best retail outlets for our audience (like Trader Joe's and Whole Foods) are driving costs down with their own budget lines. In addition, we still face challenges in developing a direct-to-consumer business across state borders.

The analysis of the changes in the net margin shows that the profitability of Dunkin’ Brands has reduced over the three-year period. The net profit margin rises from 42.69% in 2013 to 45.26% in 2014 only to reduce to 39.41 in 2015. This shows that the company generates lower net incomes than it did in the previous years. This could be a result of an increase in costs and could account for the decrease in net income even as the revenue of the company

Taylor wines is a family owned Australian premium winery that has been the best named winery in San Francisco and in the New York international wine competitions. Since they established they have bagged many critical acclaims including many international awards with the recent 19 gold medals with the 22 wines in San Francisco and their Jaraman Shiraz which hah been named shiraz of the year recently at the New York wine competition. The total awards sum up to about 3800 medals, 47 trophies, 418 gold medals and 984 silver medals in just over 30 years. With their vision of being “Australia’s best wine company and proudly family owned” they believe that they have to work extremely hard in order to achieve financial targets and strategic goals

Economies of scale are critical for low-priced wine production, but not essential for premium-priced wine production,making the premium wine product segmentation a well-suited niche for Canada’s wine industry. Ice Wine is produced from grapes that were left to freeze on the vine so Canada’s climate is an ideal environment for wine producers to capture the Ice Wine market. Given Canada’s susceptibility to bad weather, favourable conditions for Ice Wine grape production, and high cost/low production winery economic model, it is no wonder that the wine industry in Canada has grown steadily around the Ice Wine high-end product segmentation international niche market. Canadian wine exports totaled 42 million litres in 2013, valued at $54 million; of which 2.2 million litres was premium wine, valued at $36.3 million.

A higher profit margin indicates a more profitable company, which has better control over its costs compared to its competitors. (Investopedia, 2014) The gross profit and net profit margin for the Grace Kennedy Company has remained fairly stable over the five years. There is only a 1% changes in the margins, it increased by 1% for the years 2010/12 but decrease by the same percentage in 2013. There were major fluctuations in Grace Kennedy net profit over the period reviewed and the margin has fallen by approximately 13% in 2013 since 2009. This shows that although they are making a profit the group may need to lower their expenses and increase their sales to get an higher net profit

Grace Creek Vineyard and Farm endeavors to attain customer intimacy as a competitive advantage by maintaining a constant focus on building and sustaining close long term relationships with customers; providing quality customer service is essential. GCVF understands that consumers have a choice and a voice therefore consumer input on products is actively sought out. The company pursues strategic alliances with the distributors and retailers in an effort to provide excellence in customer service. Additionally, GCVF owner’s thorough understanding of Brazilian business customs and law, background international business law, fluency in the language, and a comprehensive understanding of the needs and culture of the Brazilian consumers provides

In the wine industry, it is said that, “In order to make a small fortune you need to start out with a large one” (C-392). When Mr. John Williams rolled into the Napa Valley, he had never heard of this before, but began to understand when his loans accumulated to $22 million over the last 27 years. Before he began his business known as Frog’s Leap Winery in Rutherford, California, Mr. Williams returned to Napa Valley straight after college breaking into the wine industry by becoming head winemaker at Spring Mountain in 1980. Later that year, he married his wife, Julie Johnson. Another year later, John Williams and Larry Turley form what is now known as Frog’s Leap Winery in Napa, and in 1984 Frog’s Leap hires Julie as their first employee.

Large-scale wine suppliers from New World countries (US, SAm, SAf, Australia) were exploiting modern viticulture and more scientific winemaking practices to produce more consistent “high-quality wines”.

The Gallo Winery plant tour was an awesome experience for me. I have always been curious about how a product was made from start to finish, and after the Gallo tour I have many questions answered. In this paper you will learn many different things about how a production plant runs and what they continually do to make improvements in all aspects of their business. Some focal points of this paper will be on the Gallo Winery operational strategy, what type of processes are utilized in the plant, and whether this company uses a lean production process or not.

By the late 1990’s, more than 1500 wineries were in business, yet the top 20 produced approximately 90 percent of all American wine, by volume, and 85 percent, by value, at wholesale. Of these larger firms, a few were publicly held, with readily recognizable names: Robert Mondavi, Beringer, and Canadaigua. Probably the most well-known large firm was the privately owned and operated E & J Gallo Wine Company. Best known for its large production of less expensive wine labels, the firm had been expanding into the premium varietial market segment with it’s widely acclaimed winery, Gallo of Sonoma.