Case Study Description of Robert Mondavi Corp.: Caliterra (A)
The senior vice president of the Robert Mondavi Corp. (one of the world's leading producers of premium wine) and head of Mondavi's Chilean joint venture, faces a series of quality problems with the Caliterra brand. At the same time, he has the unprecedented task of building a state of the art winery in Chile in less than 10 months or losing the entire harvest. The case traces the process of entering into a joint venture with Vina Errazuriz, a much smaller, but well respected, Chilean company, and presents the cross-cultural communication challenges faced by the joint venture partners. Communication and trust are central issues in the case.
Authors :: Brian R. Golden, Henry W. Lane, David T.A. Wesley
Swot Analysis of "Robert Mondavi Corp.: Caliterra (A)" written by Brian R. Golden, Henry W. Lane, David T.A. Wesley includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Caliterra Mondavi facing as an external strategic factors. Some of the topics covered in Robert Mondavi Corp.: Caliterra (A) case study are - Strategic Management Strategies, Joint ventures, Managing people, Product development and Communication.
Some of the macro environment factors that can be used to understand the Robert Mondavi Corp.: Caliterra (A) casestudy better are - – increasing commodity prices, technology disruption, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, talent flight as more people leaving formal jobs, increasing household debt because of falling income levels, central banks are concerned over increasing inflation,
wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Robert Mondavi Corp.: Caliterra (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Robert Mondavi Corp.: Caliterra (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Caliterra Mondavi, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Caliterra Mondavi operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Robert Mondavi Corp.: Caliterra (A) can be done for the following purposes –
1. Strategic planning using facts provided in Robert Mondavi Corp.: Caliterra (A) case study
2. Improving business portfolio management of Caliterra Mondavi
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Caliterra Mondavi
Strengths Robert Mondavi Corp.: Caliterra (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Caliterra Mondavi in Robert Mondavi Corp.: Caliterra (A) Harvard Business Review case study are -
Organizational Resilience of Caliterra Mondavi
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Caliterra Mondavi does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Caliterra Mondavi is present in almost all the verticals within the industry. This has provided firm in Robert Mondavi Corp.: Caliterra (A) case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Caliterra Mondavi are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Caliterra Mondavi has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Caliterra Mondavi has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Robert Mondavi Corp.: Caliterra (A) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Caliterra Mondavi is one of the leading recruiters in the industry. Managers in the Robert Mondavi Corp.: Caliterra (A) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Caliterra Mondavi in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Effective Research and Development (R&D)
– Caliterra Mondavi has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Robert Mondavi Corp.: Caliterra (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Analytics focus
– Caliterra Mondavi is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Brian R. Golden, Henry W. Lane, David T.A. Wesley can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Communication segment
- digital transformation varies from industry to industry. For Caliterra Mondavi digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Caliterra Mondavi has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Highly skilled collaborators
– Caliterra Mondavi has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Robert Mondavi Corp.: Caliterra (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Sustainable margins compare to other players in Communication industry
– Robert Mondavi Corp.: Caliterra (A) firm has clearly differentiated products in the market place. This has enabled Caliterra Mondavi to fetch slight price premium compare to the competitors in the Communication industry. The sustainable margins have also helped Caliterra Mondavi to invest into research and development (R&D) and innovation.
Weaknesses Robert Mondavi Corp.: Caliterra (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Robert Mondavi Corp.: Caliterra (A) are -
No frontier risks strategy
– After analyzing the HBR case study Robert Mondavi Corp.: Caliterra (A), it seems that company is thinking about the frontier risks that can impact Communication strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Robert Mondavi Corp.: Caliterra (A), in the dynamic environment Caliterra Mondavi has struggled to respond to the nimble upstart competition. Caliterra Mondavi has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Caliterra Mondavi, firm in the HBR case study Robert Mondavi Corp.: Caliterra (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Increasing silos among functional specialists
– The organizational structure of Caliterra Mondavi is dominated by functional specialists. It is not different from other players in the Communication segment. Caliterra Mondavi needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Caliterra Mondavi to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Caliterra Mondavi has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Robert Mondavi Corp.: Caliterra (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Caliterra Mondavi has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Caliterra Mondavi has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Caliterra Mondavi even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Caliterra Mondavi has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Caliterra Mondavi is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Robert Mondavi Corp.: Caliterra (A) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Caliterra Mondavi supply chain. Even after few cautionary changes mentioned in the HBR case study - Robert Mondavi Corp.: Caliterra (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Caliterra Mondavi vulnerable to further global disruptions in South East Asia.
High bargaining power of channel partners
– Because of the regulatory requirements, Brian R. Golden, Henry W. Lane, David T.A. Wesley suggests that, Caliterra Mondavi is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Robert Mondavi Corp.: Caliterra (A) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Robert Mondavi Corp.: Caliterra (A) are -
Manufacturing automation
– Caliterra Mondavi can use the latest technology developments to improve its manufacturing and designing process in Communication segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Caliterra Mondavi can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Communication industry, but it has also influenced the consumer preferences. Caliterra Mondavi can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Caliterra Mondavi can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Caliterra Mondavi can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Leveraging digital technologies
– Caliterra Mondavi can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Caliterra Mondavi in the consumer business. Now Caliterra Mondavi can target international markets with far fewer capital restrictions requirements than the existing system.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Caliterra Mondavi in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Caliterra Mondavi is facing challenges because of the dominance of functional experts in the organization. Robert Mondavi Corp.: Caliterra (A) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Creating value in data economy
– The success of analytics program of Caliterra Mondavi has opened avenues for new revenue streams for the organization in the industry. This can help Caliterra Mondavi to build a more holistic ecosystem as suggested in the Robert Mondavi Corp.: Caliterra (A) case study. Caliterra Mondavi can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Using analytics as competitive advantage
– Caliterra Mondavi has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Robert Mondavi Corp.: Caliterra (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Caliterra Mondavi to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Caliterra Mondavi can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Robert Mondavi Corp.: Caliterra (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Caliterra Mondavi to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Caliterra Mondavi to hire the very best people irrespective of their geographical location.
Low interest rates
– Even though inflation is raising its head in most developed economies, Caliterra Mondavi can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats Robert Mondavi Corp.: Caliterra (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Robert Mondavi Corp.: Caliterra (A) are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Caliterra Mondavi.
Increasing wage structure of Caliterra Mondavi
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Caliterra Mondavi.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Caliterra Mondavi can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Robert Mondavi Corp.: Caliterra (A) .
Consumer confidence and its impact on Caliterra Mondavi demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Caliterra Mondavi in the Communication sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Caliterra Mondavi will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Caliterra Mondavi needs to understand the core reasons impacting the Communication industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Caliterra Mondavi with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Caliterra Mondavi business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Robert Mondavi Corp.: Caliterra (A), Caliterra Mondavi may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Caliterra Mondavi is facing in Communication sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Robert Mondavi Corp.: Caliterra (A) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Robert Mondavi Corp.: Caliterra (A) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Robert Mondavi Corp.: Caliterra (A) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Robert Mondavi Corp.: Caliterra (A) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Robert Mondavi Corp.: Caliterra (A) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Caliterra Mondavi needs to make to build a sustainable competitive advantage.
