New World Vineyards and Winery

• Main Author: Chua Tanuan, Imelda Y.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Wine and wine making > Philippines; New World Vineyards and Winery
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3903
• Institution: De La Salle University

New World Vineyards & Winery (NW) is a family business, owned and operated by two brothers, Fred and Matt Fischer, and their wives, Gabriella and Monica. The purpose of this report is to analyze the strategic direction and growth potential of this company and provide recommendations and an implementation schedule. The mission and strategy of New World Vineyards and Winery is to grow world-class grapes for making world-class wine. However, not all activities and decisions are aligned with this strategy. The vineyard and winery divisions tend to focus on making decisions that are in the best interest of their own operations, without considering the impact on the entire company. Communications is lacking and tension among the principals is increasing. To support the mission statement, NW must concentrate on producing premium quality wines. The vineyard supports this strategy by ensuring a continuing supply of world-class grapes to the winery. Growing Concord grapes does not fir in this strategy and does not provide an optional financial return on the vineyard acreage. The company needs to expand its winemaking facility to meet the expanding demand in its current and future markets and to avoid stock-outs at the LCBO. It should also expand its product line to include a few premium quality wines, including Ice-wine. Based on the research and analysis conducted for the issues identified for the New World Vineyards and Winery, the following recommendations are proposed to the management team. (1) Replace 50 of the 60 acres of Concord grapes with wine grapes immediately. The remaining 10 acres will be replaced sometime in the future (2) Double the capacity of the winery facilities and retail store (3) During the replanting initiative, grapes should be outsourced to increase wine production up to the newly expanded winery capacity immediately. The amount of grapes purchased will decline in proportion to the increase in supply from the vineyard until the newly replanted grapes achieve full yield, at which time no further outsourcing will be required (4) Use all of the Vidal grapes currently being grown to start producing Ice-wine immediately (5) Hire a controller to create and implement accounting and information systems and (6) Export wines produces by the New World to the European and Asian markets.