BRL HARDY: GLOBALIZING AN AUSTRALIAN WINE COMPANY Harvard Case Solution & Analysis

BRL HARDY: GLOBALIZING AN AUSTRALIAN WINE COMPANY Case Solution

Two Australian wine companies, namely BRL and Thomas Hardy and Sons were consolidated into a single large enterprise named BRL Hardy. Both companies were facing several issues, including financial problems and the consolidation has facilitated both the companies. Each company has some specific expertise, which they bring into a single merged company, which helps the consolidated company to become competitive in the wine market. The driving factors that made BRL hardy expand globally are listed as follows:

  • The company experienced success in exporting abroad, such as in U.K., the company acquired Whiclar and Gordon, a U.K based wine importer and distributor, to expand its foreign business. This creates basis for globalization.
  • There were few international companies and there was less focus on branded wines, this was identified as an opportunity by the company and the objective was set to create a global brand and be a global wine making company.
  • With the best quality wine, The Company has gained customer loyalty, which helps in expanding globally. The award winning company’s brand can probably achieve best results in short time.
  • Appointment of strategic leaders, Stephen Davies and Christopher Carson, provided the required leadership that accelerated the entity’s global objectives.
  • Consolidation that results in merged capabilities made up a pool of resources to be used collectively and more effectively.
  • Three core strengths that provide pillars of success at global level are world-class production facilities, global brands, and international distribution channels.
  • Changing the consumer perception that recognizes imported brands to be of high standard and quality.

 What is the source of tension between Stephen Davies and Christopher Carson? How effectively has Steve Millar handled the differences?

There are various issues where there is conflict between Stephen Davies and Christopher Carson, but was handled effectively by Millar. Carson suggested increasing Sicilian product line, while it was criticized by Davies since it is identified that the expansion of product line will have a cannibalization effect on other products such as Stamps and Nottage Hills. Noth products are in same price range as Sicilian and thus, will be affected, if Sicilian’s product line is expanded.

Two new branded products were initiated to be launched. Davies was in favor of Banrock station while Carson regarded Kelly’s revenge to be better brand. This also creates conflict for them as well as for Millar and the whole undertaking. Carson’s focus was on the Australian market and he focuses on increasing business and launch new brands based on Australian market and consumer taste, while Stephen has more focus on U.K market and he wants to expand the company’s business in U.K.

Carson’s strategy was against erosion of company’s traditional product line that constitutes Stamps and Nottage Hill and argued to re-launch the product with new design and labeling. Stephen argued that such a strategy is against the company’s international strategy and modernization.

There were also other conflicts that, if not handled by Millar, might have affected the business significantly. Millar at first, to avoid any potential conflict, changed the reporting line of Carson, so that giving freedom to him to take initiatives. Millar promoted negotiating on conflict matters and promoted constructive conflict. Millar gives opportunity to each of them in trying out strategy of their own, such as in the case of new brand launch. He had been passive in the conflict and never imposed any resolution instead gave time to both parties to realize themselves as to what is feasible and what is not.......................

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