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 inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing transportation and logistics costs, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy, cloud computing is disrupting traditional business models, wage bills are increasing,
increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private 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 -
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.
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.
Learning organization
- Caliterra Mondavi is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Caliterra Mondavi is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Robert Mondavi Corp.: Caliterra (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Strong track record of project management
– Caliterra Mondavi is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
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.
Successful track record of launching new products
– Caliterra Mondavi has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Caliterra Mondavi has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
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.
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.
Operational resilience
– The operational resilience strategy in the Robert Mondavi Corp.: Caliterra (A) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
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.
Low bargaining power of suppliers
– Suppliers of Caliterra Mondavi in the sector have low bargaining power. Robert Mondavi Corp.: Caliterra (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Caliterra Mondavi to manage not only supply disruptions but also source products at highly competitive prices.
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.
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 -
High operating costs
– Compare to the competitors, firm in the HBR case study Robert Mondavi Corp.: Caliterra (A) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Caliterra Mondavi 's lucrative customers.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Robert Mondavi Corp.: Caliterra (A) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Caliterra Mondavi has relatively successful track record of launching new products.
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.
High cash cycle compare to competitors
Caliterra Mondavi has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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.
Need for greater diversity
– Caliterra Mondavi has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Capital Spending Reduction
– Even during the low interest decade, Caliterra Mondavi has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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.
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 -
Learning at scale
– Online learning technologies has now opened space for Caliterra Mondavi to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Building a culture of innovation
– managers at Caliterra Mondavi can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Communication segment.
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.
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.
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.
Buying journey improvements
– Caliterra Mondavi can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Robert Mondavi Corp.: Caliterra (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Caliterra Mondavi can use these opportunities to build new business models that can help the communities that Caliterra Mondavi operates in. Secondly it can use opportunities from government spending in Communication sector.
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.
Developing new processes and practices
– Caliterra Mondavi can develop new processes and procedures in Communication industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Better consumer reach
– The expansion of the 5G network will help Caliterra Mondavi to increase its market reach. Caliterra Mondavi will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
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.
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 -
Environmental challenges
– Caliterra Mondavi needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Caliterra Mondavi can take advantage of this fund but it will also bring new competitors in the Communication industry.
Technology acceleration in Forth Industrial Revolution
– Caliterra Mondavi has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Caliterra Mondavi needs to keep up with the evolution of technology in the Communication sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High dependence on third party suppliers
– Caliterra Mondavi high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Caliterra Mondavi in the Communication industry. The Communication industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
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.
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.
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.
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.
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.
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) .
Stagnating economy with rate increase
– Caliterra Mondavi can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
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.