Case Study Bodegas Torres Commerce Essay

Case Study Bodegas Torres Commerce evidenceBodegas Torres is a Spanish booze factory relieve oneselfd in 1870 by devil br separates, Jaime and Miguel Torres. The vagabond gave priority to character reference and innovation. by and by the twain brothers died, it was the turn of Miguels son, Juan, to hang the gild. He started to product brandies which was the first innovation of the association. In 1932, Miguel, Juans son, succeeded to his father aft(prenominal) his death. With the help of his wife Margarita, Miguel progress toed hard to reduce his overlook of experience regarding wine.Since 1870, tailfin contemporariess of the Torres family were able to make a place among the wine world. The first d proclaimhearted operation, located near the Vilafrance Peneds appellation Peneds in Catalonia, has upright a government agency made a name and re rollation despite heavy events (phylloxera crisis, civic struggle). Subsequently, the Bodegua Torres took possession of oth er vineyards in the appellations of Conca de Barbera, Toro, Jumilla, Ribera del Duero, Priorat and to a greater extent modernly in Rioja. However, it was non until 1979 that Miguel Torres decides to acquire a mild atomic number 18a of 100 hect atomic number 18s in the Curico v bothey in Chile. Descendant of Jaime Torres, so he moved amidst the valleys of Colchagua and Maule, southeastern of Santiago, becoming the first investor in Chiles wine indus pass judgment. Since then, the ara has flourished and is now 445 hect atomic number 18s. Miguel Torres has in either case tradeed its wine to the linked States, California, where he founded in 1986 Marimar Estates.. Marimar Torres, his sister, about her adventure in California where she partaged the first Marimar Estate Vineyard in 1986. eitherplace time, the small family task has turned into an empire, while free retaining its prestigious reputation and the extraordinary quality of its products. Over the divisions, th e caller was honored at many times for its products corresponding in 1979 (winner of the Great Wine Marathon) or in 1991 (gold medal authentic for the Milmanda Wine). E real year, the partnership gets a medal for single of its products. The most recent one is in 2011 (Gold medal received for the De Casta 2010 at Mondial du Ros 2011).The Strategy of the societyThe first strategy of the high society was to sell high quality cost at a high price beca implement quite a little associate quality with price. But over the years, the company tried to convert this image and offered to its customers refreshing quality wine at a moderate price. It is obvious that Bodegas Torres is still producing high quality wine but you rear find all the type of wine you want according to your budget. After having strengthen its amaze in Spain, the company went abroad and started to export its products in several countries. Products are characterized by a commitment to the family, the love of the vine and its fruit that has passed from generation to generation to cash in ones chips one of the most historic wineries, which meant it became a company export represented in more than 140 countries. The first exports of the company run across back to the 40s, and ware continued to grow since then. The group closed the year 2010 with a C. A. EUR 205 million, an increase of 11.5% compared to 2009. This result is mainly due to the increase in exports, which ranks the top wine producers exporting Spanish sparkling wine non alone in AOC. Torres exports represent 72% of sales. The latter increased to countries such(prenominal)(prenominal) as Finland, Canada, Norway and Russia. But the real breakthrough for the group occurred in China. After 30 years of commercial, wine sales to that country rose 40% in 2010. The group became the first company that distributes wine directly. China Torres aerated in the last year 16.16 million EUR. As an example, the group change under their br and of wine Mas La Plana, 1000 cases of 12 bottles in China, with a ware of 10,000 cases.In 1997, the company signed for the establishment of a Joint-Venture in China with the Zhangjiakou Great Wall Torres Winery Co. Ltd.Torres group is withal known for its innovations. The alcohol-free wine is one of its flagship products that perfectly matches the brand- unseasoned fashion commercialise for aesthetic and health, according to the Chairman of the group. The research surgical incision of the company is very active and successful. The company always tries to find better ways of production or new products that may be a good start for new customers.The expression of the companyThe company Bodegas Torres has always tried to change its structure according to the food market, the trend and changing environment. Managers always thought that from each one department had to be run by an expert in his area. many a(prenominal) of the decision makers brace started their career within the company which al outset them to acquire a good experience of the products and the market. But the competition of the market is fierce and the company had to hire a more master copy staff with university degrees. In baseball club to adapt its forethought strategy, the company was restructured in 1991 with the aim of setting up responsibilities and level of hierarchy. But according to employees and executives, this restructuration was too confusing. After a coming together with all the executives, the company found out that on that point was a lack of communicating between several departments and that some responsibilities were not clearly unsexd. To mystify the situation, Bodegas Torres defined very clearly the antithetic department which are the spare-time activity onesThe production department wine production and in charge of the vineyard. The wine and the brandy are divided by sections of the production process. Each member of the group has a clear task.The administ rative and financial department divided into little divisions similar accounting, treasury and dread control, this department is responsible for the control of investments, payments and more.The benignant resources department very serious for the company, this department is in charge of instruct as comfortably as payroll. This department aims at keeping the employee updated to new processes or more.The organization and system department created in 1993, this department has a role of control regarding processes and internal auditing.The marketing department divided into little divisions like sales, exports and public relations, this department is taking care of the companys customers wherever they are in the world.We buttocks easily tell apart that the company has been able to define a clear structure in ramble to ensure a better communication between departments.The merged refinementThe company benefits from a unattackable corporate nicety based on family value and h as been contagious from generation to generation and is very of the essence(p) for the well-being of the company. The corporate culture of the company sens be summarize in several pointsA strong history the company has been created in 1870 and is producing wine since then. So it has been more than two centuries that the Torres family has been on the job(p) on the alike products. Each member of the family has been an executive or a manager. Bodegas Torres went through many difficulties like the civil war but the company is still operating.A culture of authenticity like we said in the previous point, the company produces wine for the past two centuries. They dope be called expert in wine producing. They developed their own process of production and care about the quality of their products. Everyone in the company share values of knowledge and quality.The family experience the Torres family is running the company since its creation. The guidance is based on these values. Everyth ing is done to keep the family business on. Even if the company sets up objectives, communication and comply are two values that black marketers father to remember each day.The friendly responsibility respecting the environment is very important especially because their raw materials are seeds and earth. The company has developed its own check in order to show its customers that the family cares about the environment as well as its employees.Bodegas key challengesThis part of the paper is about identifying the challenges or problems that the company may or exit face in the future. With the increasing globalization of economic activities and the introduction of the European single market for the free endeavor of goods and services, employees and shareholders, business leaders, whether multinationals or exporters are increasingly faced with the demands of international management, which is ineluctably accompanied inter cultural management.Multicultural Management and diversity Bodegas Torres knows very well the flightiness of exportation and deals with it in a very efficient way. Usually speaking, when a company wants to develop its international business, it is often necessary to relocate its production, management and marketing. To do this, the company develops foreign subsidiaries, and the problem of cultural differences appear between the employees of the subsidiary, which are mostly native and parent, which is managed by nationals. The main difficulty encountered by these multinational companies is the harmonization of the various business practices. A subsidiary found abroad together different personalities, different language. It is essential to understand how management organizes in a subsidiary. The company has an entity in California, in China and in Chile which implies specificities in terms of values. In order to identify the differences, we depart use the Hofstede model based of 4 criteria which arePower out outdo When it is high, it pr omoter, for H, the main characteristics take oning the power is a social base, and the economic and social relations are marked by in embodyity and dependence.Individualism versus fabianism Individualism, in contrast to the sense of community is marked by the richness of personal responsibility, individual initiative and respect for privacy, strictly distinguished professional life. Individual interests are privileged in the functioning of organizations.Masculinity versus womanhood Masculinity is characterized by the following self-assertiveness, lack of modesty, the emphasis on success, cash and external image, ambition and the desire for personal fulfillment. In opposition, femininity mover in particular the emphasis on the relational harmony, rather than assertiveness femininity is the search for consensus and harmony, the importance of human relationships. suspicion Avoidance It essence the pull up stakesingness to risk guarantee, which disregard be expressed by the ele ments following anxiety of the future, fear of change and difference, preference for stable and rigid structures, and possibly for the gerontocracy, the occupy establish procedures clear, precise and detailed to avoid hazards.This criteria will be use to Spain, United States and China in order to better understand the cultural differences which may help us to highlight management threats but to a fault opportunities.SpainPower Distance with a pass water of 57 points, the power distance is relatively high. It mean that the hierarchy is respected by pull iners and that it is permitted to get advantages if you have a high position. It is important for employees to get feedback from their boss in order to keep their motivation high.Individualism versus collectivism with a score of 51 points, it means that, contrary to its European colleagues, Spain is based on collectivism. Teamwork is really important for Spanish workers and almost natural. It is easier for them to be remindd when they work with other people as a team.Masculinity versus femininity the score of 42 points means that companies and employees are not make by competition, achievement and success1. Children are taught to care about others and to always search for a consensus. It is important for Spanish managers to get feedback from its subordinates in order to make decisions and to improve the work environment.Uncertainty avoidance the score of 86 means that the country doesnt like uncertainty. pack like to have rules, and the changes lead to stress. It is important for Spanish people to respect rules because they work as a reference for every type of situation.United States of AmericaPower Distance with a score of 40 which faeces be considered as low, United States is based on equal rights and freedom. Unlike Europe, the hierachy is the the same. Even if managers are weel-defined in the organization, they are always accessible. Feedbacks from retire managers and employees are important.Individ ualism versus collectivism with a high score of 91, we can easily say that the United States is an individualist country. It means that people have to work for themselves, care for themselves and to a fault for relatives. There is no we in the American society but mainly I. In business, employees have to be veritable and autonomous.Masculinity versus femininity with a score of 62, the country can be seen as masculine. The main value that is taught in school and appreciated in business is always go for the best or always try your best. American people live to work because their life depend on it.Uncertainty avoidance with a score of 46, we can say that American people are not afraid of changes and may consider them as challenges. American workers like new idea and are opened to changes in their work environment.ChinaPower Distance with a score of 80, we can say that in China, inequalities are acceptable. Also, the notion of hierarchy is very strong which imply an important respect o f superiors. Everyone should stay at is place and in that location is no room for initiatives.Individualism versus collectivism with a low score of 20, we can say that China is a strong state-controlled country. sight think a lot about others like colleagues or relatives and aft(prenominal) they think about themselves. But the score also mean a weak commitment to the company they work for.Masculinity versus femininity with a score of 66, we can say that China is a masculine society. plump and success is really important and many people may ritual killing their families to get advancement in their work.Uncertainty avoidance with a low score of 30, Chinese people are used to uncertainty. One of the biggest one is the language which is full of ambiguities. Moreover, Chinese workers are very entrepreneurial which is a good asset for their country.Bodegas Torres has entities in these countries are will face difficulties in the management. It is difficult to deal with different empl oyees expectations, rules and feelings. Managers have to adapt their management strategies in order to get the best of their employees. The relationship between the employees and the company has to be strong in order to be successful. Each entities must follow Bodegas Torres values but adjust its way of doing things to the country.Corporate culture and globalizationAs we said before, Bodegas Torres benefits from a strong corporate culture. Basically, a corporate culture can be defined as the specific elements that rationalize the basics of how an entity works. It is, in a sense, a by-product of national culture and therefore a set of values, myths, rituals, taboos and symbols shared by the legal age of employees. Corporate culture is a key variable to explain the everyday life and the strategic choices made by business.The key challenge for the company here is whether staying a family business or going global.A Family short letterBodegas Torres has always been a family business. In terms of ownership it means that there is a focus on the interest of the company which is owned by the family. People are really passionate for the company and want to work hard to make it more successful. It implies, obviously, a high level of motivation. As a family business, the knowledge and secret know-hows can be highlighted and promoted in order to keep the brand image strong. being a family business also means that profits are re-invested in the company and not presumptuousness to shareholders or other stakeholders.In terms of HR Management, we can say that a family business is focused on a good communication system and a higher level of motivation. Communication is very important and if people talk to the other as family members, it is easier to communication without fear of cause to be perceived someone or more. Moreover, people working for the family business have a better understanding of the background which generate a higher commitment. To hold back with HR, a family business may serve well several of the Maslows strikes theory.Being a family business is also a benefit in terms of positioning. Bodegas Torres products are high quality and the brand image is strong because the family owns the vineyard. Over the years, the company won many awards and medals for its products and it may seem difficult for new employees to understand this culture. Regarding the finance, the situation of the company is good as it is and both in operating and financial activities. Moreover, expansion is compatible with a family management strategy. The company has all the key to keep its success up but there is also an opportunity to go global.Going GlobalThere are a lot opportunities to go global for a business such as Bodegas Torres. If we analyze the strengths of the company we can see that its return strategy was a success so far and that it financing situation in good. The company also created a marketing department which will permit the company to bette r understand the market and offer an appropriate answer to customers postulate.In terms of opportunities, the wine market is changing. In 2011, the United States has become the largest consumer of wine in the world ahead of Italy and France, according to a reflect conducted for Vinexpo Asia Pacific, the exhibition of wine and spirits to be held from May 29 to 31 in Hong Kong. The United States is in first place in the batch consumed (28 million hectoliters to 311.3 million cases of 12 bottles), with an expected growth of around 10% between 2011 and 2015, according to the study conducted in partnership with ISWR the British cabinet. The market is changing a people tend to see wine in a different way and not as a cut specificity anymore.The companys new structure enables an internationalization because other companies like competitors are working the same way. The efficiency is higher because all tasks and responsibilities are well defined. Moreover, the RD department is a competi tive advantage that the company must use in order to launch new products on the market on a regular basis.Bodegas Torres is facing a choice that will affect its structure and future. The company has to analyze both opportunities in order to make the right decision. We can consider that both choices are opportunities.Intercultural Management and wantMotivation is the set of factors determining the action and behavior of an individual to achieve a goal or perform an activity. It is the combination of all the reasons conscious or unconscious, collective and individual, that encourage the individual to act in a team. This is one of the challenges of the managerial function. In our case, the problem is how to motivation people if they dont have the same drivers. It is important first to analyze the call for of employees wherever they are from. For that we can use the Maslows theory. It offers a systematic approach to the needs of the working man and prioritizes different levels in a py ramid. Maslow believed that human behavior is dictated by the needs, man is instinctive, biological and fundamental. Five groups of needs are distinguished physiologic needs, the need for safety, ,the need for social, the need for esteem, the need of self-actualization. According to the country, people will give a different priority to the needs.It is the role of managers to understand this dimension.Beside Maslows work, we can find that Herzberg also worked on the motivation. He connects the motivation and satisfaction at work and uses a viridity assumption in all theories of need the uncarry through need is motivation. Herzberg distinguish two kinds of needs those that are communal to all living beings and those that are specific to humans. Only the latter are a source of motivation, hygiene needs, as soon they are fulfilled they reduce dissatisfaction and are therefore more motivating. Some examples of hygiene needs would be supervision, inter-personal relations, money, status or security. According to this theory,Bodegas Torres should be design a specific management strategy for overseas in order to create a safe and good work environment.Another important point, which is common to all countries is how the work is issueed. The same revenges do not seem to motivate the same way. Everyone has a clear idea of what constitutes a just reward for his work. It determines what is right by comparing it brings (qualification, effort, experience) and it receives (status, salary) that others provide and receive. When he feels inequality (more or less) between the contributions from its rewards and of those to whom he compares himself, he tries to reduce because it produces a feeling of defeat or guilt either.Every country has its own system of reward and managers should be careful to equity.For example in the united states which is an individualist society, the reward wont be the same as in Spain which is a collectivist country.RecommendationsRegarding our analysi s, we have few recommendations for Bodegas Torres in order to deal with the globalization and its effects.Analyzing every culture they work with.The Hofstede model is really useful to understand the different cultures around the world. Understanding a culture helps to understand people you work with. It is important to for managers to understand a culture so he can behave in a proper way and dont do any mistake that could lead to a conflict. People dont react the same way depending on the country and a new management strategy has to be designed in order to lead teams in an efficient way. guardianship the family businessMany companies try to go global because they see opportunities of growth and reduced costs. But higher costs are not systemically bad. The family business of the Torres family is profitable and its financial situation is healthy contrary to many other firms who rely on debts. Moreover, the brand image which is highly appreciated and well-known will suffer from an ove r-internationalization.Creating a motivating work environment by analyzing needs in every countryA motivating work environment is a competitive advantage over competitors. If employees are motivated and committed to the company, their work will be better and the company will benefit from it. In order to do so, managers and executives must analyze the needs of employees and try to link them to the companys objectives.Gathering people around ethic and valuesThe better way to gather people is to make them share specific values or even a corporate culture. Employees must put their differences aside and focus on the common culture. The company may use the history of the Torres family as an example.Conclusion