哈佛商学院-管理案例研究

[e-mail]617-783-7860.9-300-018REV:OCTOBER6,2003________________________________________________________________________________________________________________ProfessorChristopherA.Bartlettpreparedthiscase.Somenamesanddatahavebeendisguised.HBScasesaredevelopedsolelyasthebasisforclassdiscussion.Casesarenotintendedtoserveasendorsements,sourcesofprimarydata,orillustrationsofeffectiveorineffectivemanagement.Copyright©1999PresidentandFellowsofHarvardCollege.Toordercopiesorrequestpermissiontoreproducematerials,call1-800-545-7685,writeHarvardBusinessSchoolPublishing,Boston,MA02163,orgoto—electronic,mechanical,photocopying,recording,orotherwise—withoutthepermissionofHarvardBusinessSchool.CHRISTOPHERA.BARTLETTBRLHardy:GlobalizinganAustralianWineCompanyInJanuary1998,ChristopherCarsonsmiledashereviewedtheNielsenmarketsurveyresultsthatshowedHardywasthetop-sellingAustralianwinebrandinGreatBritainandheldtheoverallnumbertwoposition(toGallo)amongallwinebrandssoldinBritain’soff-trade(retailers,excludinghotelsandrestaurants).AsmanagingdirectorofBRLHardyEurope,Carsonfeltproudofthisachievementthatreflecteda10-foldincreaseinvolumesincehisfirstyearwithHardyin1991.Buthismentalcelebrationwasshort-lived.Infrontofhimweretwofiles,eachinvolvingmajordecisionsthatwouldnotonlyshapethefuturesuccessofthecompanyinEuropebutalsohavemajorimplicationsforBRLHardy’soverallinternationalstrategy:!ThefirstfilecontaineddetailsoftheproposedlaunchofD’istinto,anewlineofItalianwinesdevelopedincollaborationwithaSicilianwinery.CarsonandhisU.K.teamweredeeplycommittedtothisproject,butseveralquestionshadbeenraisedbyAustralianmanagement.NotleastwastheirconcernaboutMapocho,anotherjoint-venturesourcingagreementCarsonhadinitiatedthatwasnowstrugglingtocorrectadisappointingmarketlaunchanddeterioratingrelationswiththeChileansourcingpartner.!Thesecondissuehehadtodecideconcernedtwocompetingproposalsforanewentry-levelAustralianwine.HisU.K.-basedmanagementhaddevelopedconsiderablecommitmenttoKelly’sRevenge,abrandtheyhadcreatedspecificallyinresponsetoaU.K.marketopportunity.ButtheparentcompanywaspromotingBanrockStation,aproductithadlaunchedsuccessfullyinAustraliawhichitnowwantedtorolloutasaglobalbrandatthesamepricepoint.WatchingoverthesedevelopmentswasSteveMillar,managingdirectoroftheSouthAustralia-basedparentcompanythathadexperiencedaperiodofextraordinarygrowth,dueinlargeparttoBRLHardy’ssuccessfuloverseasexpansion(Exhibit1).Agreatbelieverindecentralizedresponsi-bility,hewantedCarsontobedeeplyinvolvedinthedecisions.ButhealsowantedtoensurethattheEuropeanunit’sactionsfitwiththecompany’sboldnewstrategytobecomeoneoftheworld’sfirsttrulyglobalwinecompanies.NeitherdidhewanttojeopardizeBRLHardy’spositioninthecriticallyimportantU.K.marketthataccountedfortwo-thirdsofitsexportsales.ForbothMillarandCarson,thesewerecrucialdecisions.[e-mail]617-783-7860.300-018BRLHardy:GlobalizinganAustralianWineCompany2IndustryBackground1VineswerefirstintroducedintoAustraliain1788byCaptainArthurPhillip,leaderofthegroupofconvictsandsettlerswhocomprisedthefirstfleetofmigrantstoinhabitthenewBritishcolony.AwaveofEuropeansettlersattractedbythegoldrushofthemid-nineteenthcenturyprovidedaboosttotheyoungindustry,bothinupgradingtheavailabilityofvintnerskillsandinincreasingprimarydemandforitsoutput.Still,theindustrygrewslowly,andaslateas1969annualpercapitawineconsumptioninthisbeer-drinkingcountrywasonly8.2liters—mostlyportsandfortifiedwines—comparedwithover100litersperpersonperannuminFranceandItaly.Inthefollowing25years,theAustralianwineindustryunderwentahugetransformation.First,demandforfortifiedwinesdeclinedandvineyardswerereplantedwithtablewinevarieties.Then,asconsumersbecamemoresophisticated,genericbulkwinesales—oftensoldinthetwo-liter“baginabox”developedinAustralia—werereplacedbybottledvarietalssuchascabernetsauvignon,chardonnay,andshiraz,theclassicgrapetypeincreasinglyassociatedwithAustralia.Bythemid-1990s,domesticconsumptionstoodat181/2literspercapita,eighteenthintheworld.Overthistwo-centuryhistory,morethan1,000winerieswereestablishedinAustralia.By1996,however,the10largestaccountedfor84%ofthegrapecrushand4controlledover75%ofdomesticbrandedsales.Mostofthesewerepubliccorporations,thelargestofwhichwasSouthcorpwhosebrandsincludedPenfolds,Lindeman,andSeppelt.ThenumbertwocompanywasBRLHardyLtd.(BRLH),sellingundertheHardy,Houghton,Leasingham,andotherlabels.Duringthe1980sand1990schangesintheglobalwineindustryhadamajorimpactontheseemergingAustraliancompanies.Arationalizationandconsolidationamongwinewholesalersandretailerswasincreasingthepowerofhistoricallyfragmenteddistributionchannels.Atthesametime,however,large-scalewinesuppliersfromNewWorldcountriessuchasUnitedStates,SouthAmerica,SouthAfrica,andAustraliawereexploitingmodern