BRL Hardy: Globalizing an Australian Wine Company
Figure 1: Position of BRL Hardy Europe in “Roles for national subsidiaries” Matrix Given that the UK market accounted for two-thirds of BRL Hardy’s export sales, it is a strategically important market. BRL Hardy Europe was highly competent subsidiary, too. The managing director, Christopher Carson had 20 years’ experience in the wine business with particular expertise in Italian wines. He had a sharp eye to detect subsidiary’s weak financial position and implemented cost cutting initiatives effectively enough to turn the subsidiary from incurring losses to generating profits, within a year (Exhibit 4). He also worked in close contact with Davies and was constantly engaged in improving relationship with HQ, despite certain disagreements over decentralization. Steve Millar, the CEO, didn’t see this as a threat as he was satisfied with the growth figures. Therefore, BRL Hardy Europe serves as a Strategic Leader to the parent BRL Hardy Co.
Should Mr. Millar approve Carson’s proposal to launch D’istinto? Defend your response with strong evidence and arguments. Ans. YES, Mr. Millar should approve Carlson’s proposal to launch D’istino. As a strategic leader, BRL Hardy Europe is well-equipped to analyse the local demand and consumer preferences. Throughout the case, there are instances of Carson explaining the differences between European market and Australian market. There was an “anti-branding” mentality amongst wine consumers. This kept the wine producing companies on their toes and eager to release new products. They liked to know about the wine that they were consuming. D’istino (instinctively) was positioned as value, Mediterranean lifestyle, relaxing, quality, food-friendly, warm, mass appealing and romantic. It had a small booklet with information about the wine. The product would also create a database of wine-and-food-loving consumers to whom future promotions could be...
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