Brh Case Study

1.How do you account for BRL Hardy’s remarkable post merger success?

There were a lot of factors associated with the success to the post merger; some operational factors include the initial management focus on restructuring of domestic operations by capturing the economies and repositioning the product portfolio in line with the new strategy. This emphasized quality branded bottle sales which led to an impressive profitability increase and restructuring of international operations by cleaning up the operating problems. By building up the export strategy, a strong quality brand image was made, and lastly, the appointment of Christopher Carson and subsequently his successful implementation of cost cutting plans, controls, strong systems and policies helped the company to breakeven operation in 1991.

There was some technological success factors involved as well. BRLH's excellent production facilities and management's commitment to quality supported its brands. Most importantly, there were some changes done to the organization. The management changed the company's culture and management style by creating a more decentralized approach, but to hold management accountable was one of the important factors behind the success of BRLH particularly in its domestic operations. The management followed the “earn your stripes” model. The core-competencies of both BRL and Hardy were perfect complements; BRL had the raw materials (fruit), cash and the leadership, while Hardy had the marketing expertise, brand recognition, and the wine making know how. The industry itself was becoming increasingly fashion-driven and Australian wine was becoming a “hot trend” There was an important strategic shift of projecting BRL Hardy not as just a “quality exporter” but as an “international wine company” with worldwide product access backed by the marketing capability and distribution muscle to create global brands.

2. What is the source of the tension between Stephen Davies and Christopher...