|Module / ECTS / Path / Specialisation||Module :International Wine Management : 21 ECTS.|
|Open for visitors||yes (5 ECTS)|
|Working language :||English|
|Volume of contact hours :||24 h|
|Workload to be expected by the student :||72 h|
Track : Attendance
|LEARNING GOAL 1 : Students will master state-of-the-art knowledge and tools in management fields in general, as well as in areas specific to the specialized field of management.|
|Students will identify a business organization’s operational and managerial challenges in a complex and evolving environment.|
|Students will understand state-of-the-art management concepts and tools and use them appropriately.|
|LEARNING GOAL 2 : Students will develop advanced-level managerial skills.|
|Students will work collaboratively in a team.|
|Students will participate in a decision-making process in a critical way.|
|Students will communicate ideas effectively, both orally and in writing, in a business context.|
|LEARNING GOAL 4: Students will study and work effectively in a multicultural and international environment.|
|Students will analyze business organizations and problems in a multicultural and international environment|
In the wine business today, companies have to solve new issues created by the competition density among different players and industry global changes. The wine business internationalisation and the wine industry globalisation processes are forcing companies to reshape their strategic positioning and planning. Over the past decades, global wine production has undergone fundamental changes, characterized by the emergence of New World producers and changing consumer behaviors. The new shape of competition has pushed towards the application of strict rules and techniques for wine standardization, processes optimization, certifications and cost reduction in order to increase the international competitiveness. At the same time, credit crunch in 2007, currency depreciations, rising fuel costs and other operative costs in wine production and distribution have generated an exacerbation of preexisting supply/demand imbalances, placing companies under financial stress. On the other side, the new consumers have introduced an overall change in drinking habits and discretionary spending. As a result, the big players have been obliged to leave non-core businesses and run business unit disposals, reinforcing their attention exclusively on the consolidation of their global ownership while many small wine business owners are questioning about their export positions.
This 20 hours course builds on complementary approaches based on both academic frameworks and pragmatic experiences. In fact, participants are required to explore the Uppsala internationalization process model and its limitations through the comparative analysis of the global business strategy of two big players in the wine industry: Castel and Pernod Ricard. At the same time, participants will have a practical grasp of what it is to design a strategic export business plan considering issues related to distribution system and price building. A particular focus will be given to the USA market.
- Identify the export orientation of a company and its internal and external abilities to establish an international market positioning and show how they arrive to the findings
- Describe what are the internationalisation key drivers of a wine business whatever its size and geographical location; and highlight the implications in a global context.
- Discuss and rebut alternative interpretations, and reservations to your findings and recommendations. Address the feasibility of an enhanced global wine business strategy.
- Analyze the options to a further internationalisation of a wine business and explain the key assumptions. Make predictable outcomes
- Value the competitive advantages of a wine company respectively to its main competitors in a peers analysis perspective.
Session 1 4 hoursThe Uppsala model and its limitations - MCQ
- Introduction to the Uppsala model and the international export strategy models applied to the wine business.
- Presentation of the divergences/convergences that exist between an international business strategy approach and a cultural one in the internationalisation process.
- Presentation of the practices developed by the small wineries vs. the global players to become global.
- Historical analysis of the global business strategy developed by Pernod Ricard and Castel in the wine industry.
- MCQ (30’)
Working groups (maximum 4 students) will be set up before the end of the session.
Session 2 5 hours The tools to map an internationalisation strategy
- Elements of strategic management literature helping the entrepreneur/export manager to find the right answer to the pressure of globalization
- How to design a business model for a successful internationalisation strategy. Three fundamental questions to respond: why, where, how to expand?
- How to identify the corporate structure of an international company and to find the way to coordinate the export activities of the company across the globe
- Group presentation - 15 minutes power point
Session 3 5 hours
- The strategic diagnosis and valuation of an internationalisation strategy through a peers analysis
- Elements of peers analysis and corporate finance to valuate the key figures that define the international competitive advantages of a wine company/division
- The best practices to become international when the company is not born global
- How to write recommendations and conclusions regarding a wine business case
- Case study tutoring
Session 4 2 hours - Build wine price structure
- Description of the US market and buying behavior: The US wine market offers a huge potential of development. The consumer base is just getting more and more attracted by the wine product (French paradox works). Comparison: 2 main markets on the East Coast (primary NY) and the West Coast (primary California).
- Price build up: from ExW to consumer price: In a competitive market, the price is a key tool to sell. What is considered the “right price” (Target a price point upon the market)? Notion of QPR (quality price ratio)
Session 5 2 hours -
- MCQ review session 4
- Export: Incoterms, Logistic, Brand registration (TTB, FDA), SLA, and payments terms (international standard trade terms). All these technical points should be understood.
- Understanding the distribution system: It is interesting and instructive to observe closely, how the import and distribution business are set up. The double funnel type made by the “Three-tier system (Alcohol distribution)” is fundamental and therefore important to understand for the consumer approach.
- Analyzing several aspects of sales channel:
- the traditional 3 Tiers-system (with a true independence between each party);
- Semi-direct compliance distribution (pitching a large chain store) ;
- direct sales to consumers for domestic wines mostly: the birth of the mailing/waiting list and allocation system;
- Washington State and Washington DC are the exception of the 3 tiers system. It does not exist in practice. (example: the business model of Garagiste Wine)
- Interview of an USA importer
Session 6 2 hours - Role play
- Role play - Evaluation
J. Johanson, J. Vahlne (2009): “The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership”, Journal of International Business Studies, 40, 1411–1431.
L. Thach, T. Matz (2008): “Wine a global business”, Miranda Press, New York.
M. Porter (1990): “The competitive advantage of nations”, MacMillan Press, London.
M. Porter (1996): “What is strategy?”, HBR Press, Boston.
M. Porter (2008): “The five competitive forces that shape strategy”, HBR Press, Boston.
W. Kim, R. Mauborgne (2015): “Blue ocean strategy: How to create uncontested market space and make the competition irrelevant”, HBR Press, Boston
D.M. Gray (2015) The exporter’s Handbook to the U.S. wine market.
TTB web site; Beverage Trade Network http://www.beveragetradenetwork.com
Such behaviors as...
... may lead to expulsion from classes.