Members of each student group will choose a different case assigned to session 6 to do the...

Question

Members of each student group will choose a different case assigned to session 6 to do the individual, written analysis, and to contribute to the group´s global understanding of the wine industry.

You are expected to:

Identify at least 3 strategic issues, evaluate decisions taken, discuss alternative courses of action, and recommend a specific course of action, as if you were not simply an analyst, but a consultant. If you can not recommend a course of action, you should evaluate whether the course of action taken by key players has been the appropriate one, judged from a strategic point of view.

Feel free to approach the instructor to discuss your paper. Your paper has to be submitted at the beginning of the class session we discuss the case. Length: 7-10 pp. double-spaced.

Suggested format:

-1 page summary of key facts and context of the case

-Identification of 3 issues in the case of strategic importance

-Discussion of the 3 key issues you identified. You are expected to take a position (I am interested in your thoughts, not simply a summary of what the case says!)

My case is
Miguel Torres: Ensuring the Family Legacies. You can find in the attached file.

Document Preview:

For the exclusive use of T. Huang, 2017. IMD 02.09.2010 MIGUEL TORRES: ENSURING THE FAMILY LEGACIES VILAFRANCA DEL PENEDÈS, SPAIN, APRIL 2010. The more we care for the earth, the better our wines… With those simple words, Miguel A. Torres, the fourth-generation owner of Miguel Torres S.A., one of the largest and most reputed Spanish wine makers and distributors in the world, summarized his Jan van der Kaaij (EMBA concern for climate change. The man was on a mission. With just two 2005) prepared this case under years to go before stepping down from the direction of the enterprise, the supervision of Professor he had his hands full. Not only did he want to ensure that he would Benoit Leleux, S. Schmidheiny leave his ancestors’ distinguished house in capable hands but also that Professor of Entrepreneurship the values the firm espoused would flourish. The legacies had to go and Finance, as a basis for beyond family and values though: Miguel Torres wanted to convince class discussion rather than to his family, employees and the rest of the wine industry that climate illustrate either effective or change was already impacting the business. Environmental ineffective handling of a responsibility had to become part of the Torres family legacies. business situation. And that was still not obvious to most. When he chose global warming as the topic of his keynote address to Rioja wine producers in 2009, the reception was lukewarm. Winemaking peers questioned his priorities. After all, there was a global crisis going on and wine sales were down more than 10%. Why worry about long-term climate issues when there were more urgent short-term challenges to tackle? Was climate change even real? But Miguel Torres had a long-term perspective: In the wine business one needs to think 15 years ahead. Forget weather statistics: facts are telling. In less than four decades, harvesting of the grapes in the Penedès region had to be brought forward...

005_azo-renfjxwc.pdf

David · Accepted Answer

Case analysis 
Summary
The case scenario is based on one of the largest and most reputed Spanish wine makers and distributors in the world. The case study begins with the fact that it is a family owned company and present owner intends to pass its control successfully to the fourth generation of his family. The owner not only intends to pass control and ownership to the fourth generation, rather, he also wants to ensure that fourth generation should run the family business with defined values and norms. The legacies should go beyond the family and values should be at the top priority in running the business. 
In this process, there are certain challenging factors or issues confronting routine pace and functioning of the company. There prevails conflicting opinion among owner and employees regarding resolving those issues and factors. On superficial level, owner hold long term perspective and asserts that business strategies should be formulated and implemented in manner contributing long term growth and success to the company (Penedes, 2010). 
In this regard, it would be completely justifiable to ignore some short term challenges of declining sales, profits and other statistics. This is so because statistics can be improved upon, in case, company holds long term perspective of preserving environment, fulfilling climate norms, addressing global warming issues adequately, etc. These long term challenges should be paid attention than statistics as these factors are highly crucial in long term sustainability and growth. 
The problem arises when these issues appears quite unreal to employees and other personnel of the company and conflicting situation arise. In this context, case revolves around identifying key strategic issues, evaluating decision, discussing alternative courses of action and recommending course of actions. 
Identification of three strategic issues
The three strategic issues having strategic importance are discussed below:
1) Impact of global crisis on sales and other financial aspects
On account of global warming and other critical factors, there is significant pressure on wine sales. The statistics showed that wine sales were declined by more than 10% posing threat on overall profitability and sustainability position of wine companies. Miguel Torres S.A. is no longer exception to it and experienced pressure on financial aspects acting as warning signal for securing long term profits and growth (Boswell, 2013). 
The main factor behind declining wine sale is the global warming and other climate concerns impacting harvesting process of the grapes and eventually overall quality of finished products. This process of cultivating and harvesting grapes is termed as viticulture, and, it is impacted negatively due to global warming and other climate concerns. The wine companies are required to adjust their viticulture practices as global warming has increased the temperature of grounds. The plantation at higher density and increased temperature grounds affect quality of grapes. Although Miguel Torres S.A. has taken steps for preserving quality of grapes and wines, yet it is affected negatively  (Penedes, 2010). 
2) Long-term climate issues/climate changes
The environmental sustainability is becoming an increasingly high agenda across the globe, and, retailers are asked to plan and conduct business activities in accordance with it. There are several environmental sustainability issues such as global warming, depletion of non-renewable resources, climate change, shortage of water and critical resources, etc. All these environmental issues mandated business firms in conducting trade practices in highly fair and transparent manner (Holbeche, 2012). 
The wine operations of Miguel Torres S.A. is also subjected to high scrutiny and mounted sense of urgency at the concerned firm to take environmental considerations into account and conducting wine operations in a manner creating minimum negative impact on climate conditions, resource availability, and other procurement aspects. 
3) Preservation of family values: 
Miguel A. Torres, the fourth generation owner of company named Miguel Torres S.A. has having significant concern for preserving and enriching his ancestors’ business and transferring it in capable hands in a manner that family values flourish and enrich.

Members of each student group will choose a different case assigned to session 6 to do the individual, written analysis, and to contribute to the group´s global understanding of the wine industry. You...

Answer To: Members of each student group will choose a different case assigned to session 6 to do the...

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment