The Robert Mondavi Corporation

Topics: Wine, Robert Mondavi, California wine Pages: 19 (5579 words) Published: November 26, 2007
The Robert Mondavi Corporation

Table of Contents
1. Organizational Mission and Vision3
2. Corporate Objectives3
A. Financial Objectives3
B. Strategic Objectives3
3. Corporate level Strategies3
4. Business level Strategy4
5. External Analyses – Opportunities and Threats5
A. Opportunities5
6. Competitive Analysis6
A. New Entrants6
B. Substitutes7
C. Rivalry within the Industry8
E. Customers9
7. Industry Key Success Factors9
Home markets…………………………………………………………..……………..9 Brand name..10
Access to Resources When Needed10
8. Internal Analysis10
A. Strengths10
B. Weaknesses11
9. Financial Analysis11
A. Leverage11
B. Liquidity12
C. Activity12
D. Profitability13
E. Other Ratios14
10. Major Issues Facing Corporation14

1. Organizational Mission and Vision

The Robert Mondavi Corporation's mission is to do whatever it takes to make great wines and to put Napa Valley on the map, right alongside the great winemaking centers of Europe.
The Mondavi Corporation set out to be the first in California to produce premium wines that were intended to compete with premium European brands.

2. Corporate Objectives

A. Financial Objectives
Growth in revenue
Mondavi wants to increase the selling of its products in all its markets. The company recorded revenues of $468 million during the fiscal year ended June 2004, an increase of 3.5% over 2003. (1) Having strong financial objectives help companies can mean the difference in a successful company and an unsuccessful one. Setting obtainable goal and standards are necessary for any growing company.

Selling non profitable wines
Selling off or eliminating segments of non profitable parts of a company is a smart thing to do as long as the segment margin is negative. While profits for a particular segment may be negative, if the cost associated with the segment doesn't outweigh the loss, then losing the segment makes sense.

B. Strategic Objectives
To focus on their premium wines segment: Focusing on premium wines in the industry is something that Mondavi is starting to do. Their belief is that if they can make few fine wines then various medium grade wines, the preference for quality should take precedence. Mondavi is planning to divest one of its brand wines in order to focus on its "lifestyle" wines, generally those wines that are under $15 a bottle (2)(10). This will allow Mondavi to focus its resources on brands of wines that result in better quality. Having a higher quality in taste could lead of an increase in profits and impact market share for the company. Our combined customer base will enjoy the same quality products and services they've come to expect from both Robert Mondavi and Constellation. And the combined companies unequalled international distribution will enhance consumer access to the Robert Mondavi worldwide. (3) To be at the top of the list in the industry: The Robert Mondavi Corporation is a leading producer and marketer of premium table wines. (1) Like a lot of other companies in other industries, The Mondavi Corporation wants to be a major competitor in the wine industry. Even thought Mondavi is doing well in the US markets, global markets are still being entered and resources are being used to create new opportunities for the company to grow worldwide.

3. Corporate Level Strategies
Market Development
The wine industry is pounded with rules and regulations on how they can sell and distribute wine. A lot of the wine producers in the industry want to insert channel to direct sell to consumers. Robert Mondavi is known for producing hand-crafted wines of distinct style. (19) This implementation could in turn increase profits by eliminating distributors and lower the cost of wine for consumers.

Market Penetration
The Mondavi Corporation is set to focus its attention on its premium and super premium...
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