Strategic Audit of Coppers Creek

CONTENTS

1. Executive Summary

2. Introduction

3. External Environmental Scanning

3.1. Life Cycle

3.2. PESTEL analysis

4. Inter-Industry Environment Scanning

4.1. Potter's 5-force analysis

4.2. Stakeholders Analysis

5. Intra-Industry Analysis

5.1. Competitor Analysis

5.2. Key Success Factors

6. Internal Environment Scanning

6.1. Structure and Culture

6.2. Capabilities & Competencies

7. Situational Summary

7.1. SWOT Analysis

7.2. Directional Policy Matrix

8. International Strategy

8.1. International Value Chain Analysis

9. Strategy Formulation and Selection

9.1. Porter's Generic Competitive Strategies

9.2. Bowman's Strategy Clock

10. Development of Strategy

11. Strategy Evaluation

12. Scenario Analysis

13. Conclusion

14. Bibliography

15. Appendices

New Zealand Wine Industry

1. Executive Summary

Like many other industries, the New Zealand Wine Industry (NZWI) is a dynamic one. It is a fact, however, that consumption of alcohol as a whole has fallen. Therefore, we can conclude that the changes facing the industry may not necessarily be beneficial for it. Competing for market share in such a mature environment is without doubt an extremely delicate and difficult affair. However, one such company that is attempting to do so is Coopers Creek (henceforth referred to as Coopers).

Our report aims to provide a clear and concise snapshot of the global as well as NZWI at this juncture, as well as analyse how the industry might change over time. In addition, an integral part of the report will focus on how Coopers might deal with these changes, and the way in which they can incorporate these changes into the company's corporate roadmap.

The report takes into account a few of the macro (external) and micro (internal) factors that had, and will continue to have, significant impact on the industry and the company in general, and suggest alternatives or solutions that our group feels may be feasible.

Certain models have been used in support of our analysis, and the group critically evaluates the use and effectiveness of these models in determining Coopers success factors as well as core competences. From this analysis we then try to identify certain weaknesses in the Coopers value proposition, as well as take note of the areas that Coopers may be able to exploit.

On a whole the management at Coopers has steered the company in the correct direction. However, more emphasis might be needed in terms of differentiating itself from the other New Zealand (NZ) brands. It would have to build on its brand equity, and continue leverage its founder Andrew Hendry's contact network. Succession planning would also have to be included in future strategic plans so that the company will continue to prosper should Andrew decide to depart or retire.

2. Introduction

2.1. Wine Industry and its market studies

The Wine Industry (WI) is filled with many players and there is a huge supply of wine from all over the world, with approximately 70 main wine producing countries. To a certain extent, this industry is at its early maturity stage and wine-producing firms are vying hard for market share. There is a danger of industry capacity exceeding demand basing on the alcohol consumption based on per capita consumption. Since the early 1960's there has not been much growth in wine consumption. The growth was mainly in beer consumption . On the whole, Europe is the highest alcohol consumption region coupled with being the largest wine-producing region as seen in the graph below. However, from studies done by World Health Organization has found that there has not been not much increase in consumption level in