Issues for Management to Address
There are a number of issues that the management group needs to address in light of the Kington family vineyard case. In this situation, it is crucial to employ both SWOT analysis and the Porter 5 forces. The management team will also find it essential to use 6-PEST analysis. The management team must first deal with problems in the fields of politics, social concerns, the economics, and technology. The team must also take into account the consumer and supplier's negotiation strength.
The Best Approach
Increasing Output
An increase in handcrafted wine production will work to solidify the vineyard's reputation for excellence. These highly rated products will in effect pursue sufficient scale for turning a profit on the winery.
Focusing on Vineyard
Another strategy is to focus more on the vineyard. They should utilize their strength in the expertise of farming as already planned by the company.
Investing in the Burgeoning Tourism Market of Chile
Investing in the Burgeoning tourism market of Chile will help the company open more boutique hotels wine country of Casablanca. Practically, these strategies possibilities impact positively on the economy.
Reason for the Recommended Strategies
These strategies help in highlighting some of the challenges that the Kingston family vineyard faces. In effect, they provide better solutions by dealing with the pricing dynamics at each of the supply chain's tiers. Even though the production of these wines occurs in the growing regions, they are exported to the United States.
Ethical Issues
Some of the issues this case addresses include one of pricing dynamics and the need for business expansion. The strategy of increasing production will result in the business expansion. However, price dynamics will be affected by investing in the Burgeoning tourism market of Chile.
Conclusion
Overall, the Kington family vineyard has to use some strategies to expand and maintain their business operations. There are issues to be addressed that include the competitive rivalry and the substitutes/new entrants threat. Also, the company has to consider the ethical problems.
Reference
Rapp, A., & Malloy, K. (2016). Kingston Family Vineyards, 1-30. Retrieved from https://www.thecasecentre.org/educators/products/view&&id=140898
