Tuesday, May 5, 2020

Global Business Of Organic Wines Of Sunshine Company †Free Samples

Question: Discuss about the Global Business Of Organic Wines Of Sunshine Company. Answer: Introduction The study focuses on the product profile and its business objectives of Sunshine wine situated in Queensland. The sunshine coast in Queensland is considered as the one of the diverse developing wine regions in Queensland that encompasses boutique wineries as well as vineyards manufacturing award-winning products of wine (Rossi et al. 2012). The microclimate diversity helps to produce huge range of variety of grapes to be grown in Queensland. This attention in Vineyards helps in producing wines that have distinctive character. The report also highlights on the economic, political and business environment of Singapore and Sweden and their market potential for producing wine products. Economic Environment The wine industry in Australia has been ranked fourth in terms of wine exports by an amount of 750 million liters to the international market with approximately 40% of wine production consumed within the nation (Pethig 2013). This industry is a vital contributor to the total productivity, trade and employment of this economy. The wine industry in Australia contributes to $40.2 billion in the total output of the economy. This sector includes direct employment of approximately 68395 people to this economy. Recent statistics reflects that the wine industry has grown over the years in this nation. It has been noted that variation ion business cycles influences the wine industries in Australia. Theeconomic environment refers to the external factors including the broader nation influences the business environment of the wine industry. It includes both microeconomic as well asmacroeconomic environment. Microeconomic environment also influences the decision in business making that includes actions of the entities as well as the consumers whilemacroeconomic environment affects the entire Australian economy and the participants of the business. The macroeconomic factors include interest rates, taxes, currency exchange rates, inflation rate, unemployment rate, Foreign Direct Investment (FDI) and savings rate of the consumers. On the other hand, microeconomic environment factors involve size of the market, demand as well as supply of wine products, rivalries and distribution chain. Therefore, economic environment influences the success as well as failure in this wine industry in this nation. Moreover, the size and features of the Sweden and Singapore economy, FDI inflows and trade barriers influences the business of Sunshine wine in this nation. As recessionary phase affects both these countries, the Sunshine wine faces difficulty in selling their wine products and services to the customers. However, during this period, this firm cut the wages of the workers and hence disposable income of the consumers becomes less. As a result, the consumers purchase fewer products and this leads to decrease in sales and reduction in profitability level in this business. In addition, inflow of FDI plays a crucial role in expansion of wine business and hence increases the exports to these two nations. Inflow of investment improves the capital infrastructure in the business and helps in expanding into foreign markets. Therefore, it can be noted that sales of wine in Sweden and Singapore is affected by the wine market of Australia. Australia has been ranked fifth as accounted by market share as the Aussie wine value that is exported to Sweden increases to 26%. However, Sweden is known worldwide because of organic wine consumption and is aiming to raise its sales in the upcoming years. Australia contributes to 14% in the wine market of Singapore, as this nation is considered as the key wine suppliers in Singapore. Thus, the economic environment in Sweden and Singapore influences Sunshine Wine in Queensland. Political environment and Risk The political environment in Sweden and Singapore wine business involves certain political set of factors and other government activities in the international market. This can either aid or hamper the business activities in the global market (Hannah et al. 2013). However, there is certain uncertainty degree while conducting business in other nations and hence involves risk that is often termed as sovereign risk. Some of the political factors that influence the wine industry in Australia include the economic system, intervention of the government, tariffs, control of trade, tax policies and restrictions of import on product quality (Ferraro and Briody 2017). Adoption of tax policies by the government of these two nations restricts the business activities of wine companies and hence this adversely affects Australia as they are the main exporter of wine in these countries. In addition, there is no such trade barriers for the wine companies of Sweden and Singapore and hence this improves the economic growth of these nations. Hence, this influences the performance of the wine business in these two nations. Moreover, restriction of import of wine products adversely affects the revenue of wine companies owing to decrease in sales. Business Environment Business Environment refers to external as well as internal factors that affect the business activities of the organizations. The internal factors involve the strength and weakness of the wine companies while external factors has been grouped into opportunities and threats (Chong 2014). Singapore wine industry is relatively small with respect to Sweden wine market. The strength of the wine companies in these two nations includes innovative wine products, attaining good reputation by producing good quality wines, brand value, implementation of new technology for increasing productivity. The weakness of the wine companies in these nations includes poor promotional activities in promoting wine products, manufacturing poor quality wine, high cost of wine, poor distribution networks. In addition, opportunities of these companies involve advancement of technologies, ineffective rivalries and variation in social patterns etc improves the wine business of these two countries (Christ 2013). I n addition, new entrants, rising trade barriers and price wars between the companies poses threats to the wine entities in these two nations. Thus, wine companies in Sweden and Singapore poses threats from other countries. Overall the business environment of both the companies helps in expanding their business globally and achieve the highest rank. Market Potential Market potential refers to total market size of the products during a particular period. It is usually determined by volume of sales and value in the market. Australian wines have huge popularity in Sweden and Singapore market. However, Sunshine Wine faces several challenges from other nations in order to maintain its position in the markets of these two nations. The retailers provide wine products to these nations according to their market demands. The wine market in Sweden and Singapore has generated huge investment on the Sunshine exporters of this product. Though the wine market of these two nations are dominated by other nations, Australia holds price advantage over its competitors due to free trade agreements with these two countries. It has been opined by (Cassi 2012) that free trade agreements increase the size of the market for a particular product in the respective nation. Recent study also reflects that the market potential for wine of these two nations improved during the years. Country Choice Wine market in Singapore is considerable smaller as compared to wine market in Sweden. Although the wine sector in Singapore has grown over the years, the size of the wine market expanded in Sweden. The reason behind the expansion in Sweden wine market is the increase in sales of organic wine over the last ten years. In addition, Swedish wine industry has a monopoly market structure and hence the retailers benefits in this market structures by setting the price owing to increase in demand. Sweden wine companies purchases Australias exported wine according to the needs and preferences of the customers. Thus , the total sale of wine in this country increases during the period 2006 to 2016 and thus leading to expansion of wine market in Sweden (Anderson and Nelgen 2015). Moreover, it creates huge opportunities to the entities that includes introduction of internet wine shops. On the contrary, free trade agreements throw little positive effect in the Singaporean wine industry. As stated by (), Singaporean wine sector will expand in upcoming years owing to increase in demand for red wine. Weighted index refers to market value index in which the components are weighted based on the companys market value of their shares. As the wine companies in Sweden has shown huge sales of organic wine for the past few years, their market share value is high as compared to Singaporean wine companies. Thus, Sweden wine market is chosen over the Singaporean market owing to high market value of the shares of their companies. Conclusion From the above assignment it can be concluded that Sunshine Wine in Queensland contributes to Australias GDP growth and reduces the unemployment in the country. Additionally, as they are main exporters of wine in Sweden and Singapore, this company attains huge profit in terms of trade. Moreover, it is recommended that the Sunshine Wine Queensland must focus on their marketing strategies and free trade agreements with other nations in order to expand their business in other nations. As a consultant, it can be suggested that this company must focus on their wine packaging and taste according to the market demand of other nations including Sweden and Singapore. References Anderson, K. and Nelgen, S., 2015.Global wine markets, 1961 to 2009: a statistical compendium(p. 468). University of Adelaide Press. Cassi, L., Morrison, A. and Ter Wal, A.L., 2012. The evolution of trade and scientific collaboration networks in the global wine sector: a longitudinal study using network analysis.Economic geography,88(3), pp.311-334. Chong, S., 2014. Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry.Journal of Information Systems and Small Business,1(1-2), pp.41-58. Christ, K.L. and Burritt, R.L., 2013. Critical environmental concerns in wine production: an integrative review.Journal of Cleaner Production,53, pp.232-242. Duarte Alonso, A., Bressan, A., OShea, M. and Krajsic, V., 2014. Exporting wine in complex times: A study among small and medium wineries.Journal of Small Business and Enterprise Development,21(2), pp.345-364. Ferraro, G.P. and Briody, E.K., 2017.The cultural dimension of global business. Taylor Francis. Hannah, L., Roehrdanz, P.R., Ikegami, M., Shepard, A.V., Shaw, M.R., Tabor, G., Zhi, L., Marquet, P.A. and Hijmans, R.J., 2013. Climate change, wine, and conservation.Proceedings of the National Academy of Sciences,110(17), pp.6907-6912. Jones, G.V. and Alves, F., 2012. Impact of climate change on wine production: a global overview and regional assessment in the Douro Valley of Portugal.International Journal of Global Warming,4(3-4), pp.383-406. Martin, J.S. and Chaney, L.H., 2012.Global Business Etiquette: A Guide to International Communication and Customs: A Guide to International Communication and Customs. ABC-CLIO. Overton, J. and Murray, W.E., 2013. Class in a glass: capital, neoliberalism and social space in the global wine industry.Antipode,45(3), pp.702-718. Pethig, R. ed., 2013.Valuing the environment: methodological and measurement issues(Vol. 2). Springer Science Business Media. Rossi, M., Vrontis, D. and Thrassou, A., 2012. Wine business in a changing competitive environmentstrategic and financial choices of Campania wine firms.International Journal of Business and Globalisation,8(1), pp.112-130.

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