Notts Derby Wine School business
This assignment is being submitted on July 16, 2015
Introduction
The modern day businesses use environmental analysis as a tool to evaluate the persisting status of realized factors in business environment, their relative impact on business and consequent strategies to either mitigate their impact or exploit them in favor of business (Farrel 2015, pp.1). In case of wine tasting business, as undertaken by Notts Derby wine tasting school, the key implications of business environmental analysis can be done in terms of identifying the environmental factors (by using renowned frameworks like PESTEL or SWOT) and then developing a strategic position (in sync with set business goals) to tackle the most relevant ones. In following segments, we will analyze the environment for wine tasting school, based on the above mentioned methodology.
SWOT analysis
The four aspects of SWOT analysis will individually collaborate to highlight the internal and external factors that may affect the business.
Internal factors: Key strengths of the wine tasting business, in case of the school are as follows:
Tangible resource management- This refers to the current management of wine resources and adjoining facilities which need to aid in glib flow of tasting business (like inward presentation of price, specific glasses and taste mapping scorecards and product range).
Intangible resources- These resources are those features which add to the customer relish in wine tasting like soothing ambiance, prompt service and keen insight over preferences and assortment.
Internal Factors-Key weaknesses of the wine tasting business, for the business are as follows:
Internal Value chain- The value chain in case of wine business is blended form of wine handling to delivery phases like storage, sorting, serving and facilitating taste reviews. This needs an ongoing improvement, as an internal weakness for entire wine taste industry (Aruvian’s research, 2014).
Internal pricing- Since the wine tasting preferences are researched and ratified for getting affected as per pricing of the wines, an optimum pricing policy needs to be adopted to encourage better influx of tasters and for their consequent taste evaluations.
External factors- Prime opportunities for the business are:
Rising size of industry with parallel growth in more demand and supply (Brij and Hugo 2008, pp. 3).
Growing inclination of people towards tasting before buying wine
Suppliers are not potent enough to bargain their prices due to multiple suppliers.
External factors- Prime threats for the business are:
Rising number of new entrants in the industry, due to low startup costs
Stiff rivalry and range offered by established players in Nottingham and Derby
High power of buyers due to multiple options in service, range and prices
Rising entry of foreign players, from Argentina, US etc (Brij and Hugo 2008, pp. 2).
Strategic position over environmental factors
After analyzing the prominent factors of internal and external environment, the following marketing strategies can be deduced for Notts Derby Wine tasting:
Precisely priced and correspondingly assorted wine ranges to be deployed in marketing communications and also to be offered to buyers (Jackson 2012, pp.72).
Strategic tie-ups with leading manufacturers to aid in prompt supplies at affordable costs
Tie-ups with event management companies to add to the current pool of core wine tasting events and schemes.
Vertical integration of leading supply/value chain management experts to ensure better offering of taste quality and pricing specifications(Jackson 2012, pp.72).
Augmenting currently deployed strategies for soothing environment and detailed taste experience.
Conclusion
The British culture has an entrenched proclivity towards wine and its specific classifications in terms of prices and taste (Matthews 2008, pp.1). The detailed analysis of environmental factors of business has given enough background to enact and implement the suggested strategies for the wine tasting business (Kerrison 2011, pp.1). Organized studies in field of tasting have concluded that even experts and connoisseurs get drifted away from estimating wine classification based on prices, rather than tastes. Hence the pricing policies adopted in the wine tasting business should be such well schematized that all genres of customers get sufficed. Rest being highly conducive for the wine tasting business as UK’s wine industry is already growing at a pace of 9% by volume (EUROMONITOR, 2015).
Bibliography
Aruvian’s research 2014 , Analyzing the Wine Industry in UK.[online] Available at: http://www.reportlinker.com/p0200051/UK-Wine-Industry-SWOT-Framework-Analysis.html .[Accessed 16 July 2015]
Briz, J and Hugo, C. 2008, Wine Argentinean Export Chain: A Case Study in the UK Market. EAAE Seminar ‘System Dynamics and Innovation in Food Networks’. pp 2-4.
Euromonitor International 2015, Wine in United Kingdom. Country report. Available at: http://www.euromonitor.com/wine-in-the-united-kingdom/report .[Accessed 16 July 2015]
Farrel, R. 2015, Environmental business analysis. The Houston Chronicle. Available at: http://smallbusiness.chron.com/environmental-business-analysis-43238.html .[Accessed 16 July 2015]
Jackson, N. 2012, The marketing of Jacob’s wine in the UK: a case Study. Saimaa-University of applied sciences. pp. 71-74.
Kerriosn, R 2011, Sustainable Wine – Balancing Environmental, Social and Economic Issues. . Available at: http://ecoopportunity.net/2011/04/sustainable-wine/ .[Accessed 16 July 2015]
Mattehws, V 2008, Grape expectations: How to get into the wine industry .[online] Available at: http://www.independent.co.uk/student/career-planning/getting-job/grape-expectations-how-to-get-into-the-wine-industry-831815.html .[Accessed 16 July 2015]
