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MGMT 205 International Business

2015/2016 Term 1
Cover Page - Case Discussion Note
Name:
Duarte Maria Loureiro Jos de Mello
NRIC: G150899X
Group (i.e. G1 or G2): G1
Case: Israeli Wines in China: Reaching for New Heights
Point
Range
Relevance

Below Standard
0-4

Meets Standard
5-7

Exceeds Standard
8-10

Does not identify the


relevant facts from
the case or
incorrectly identifies
facts

Correctly identifies
relevant facts from
the case

Correctly identifies
most key important
facts from the case.
Able to explain why
some facts are more
important than
others

Theoretica
l
framewor
k

Identifies the wrong


theories or
framework or just
randomly look at the
case

Identifies the right


theoretical tools to
address the question

Identifies the right


theoretical tools and
explains the
significance towards
analysis of the case

Applicatio
n of
theories

Applies theories
incorrectly

Applies the theory


correctly and
attempts to link to
some facts
presented in the
case

Applies the theory


correctly and
provides a full,
logical and concise
explanation of how it
links to facts
presented in the
case

Quality of
discussion

Provides only
conclusions and
outcomes, without
specifying
arguments

Provides a complete
and reasonably
balanced response
with some
arguments in
addition to
conclusions and
outcomes

Provides a
comprehensive and
balanced response,
with full, logical &
concise arguments
in addition to
conclusions and
outcomes.

Quality of
writing

Demonstrates weak
or poor writing skills.

Demonstrates very
good syntax,
grammar and writing
style.

Demonstrates
excellent syntax,
grammar and writing
style.

Duarte Maria Loureiro Jos de Mello

MGMT205 International Business

Evaluation:

1 Evaluate Golden Heights Wines competences using the Resource Based View.

To evaluate Golden Heights Wines (hereon: the GHW) competences, we are using the
Resource Based View, which consists in identifying and testing the companys internal valuable,
unique and in-imitable resources*, tangible or not, and link it to its performance, to identify or create
strategies, not only based on, but also creating sustainable and competitive advantages.
GHW is an Israli winery, which has about thirty years of existence. Since it was founded, it
has grown significantly, and in our days it is one of the biggest wineries in Israel, with 18% of the
domestic market, and it is the biggest wine exporter from this country, representing 38% of the Israeli
wine exports.
Firstly, I analysed and identified the five main key-resources of GHW, the ones who could be the
key factors for its success or failiure in China:

Natural resources (i.e. soil and climate)


High-quality assets standards (i.e. new technology and finest barrels)
New and highly educated team
R&D
Some progress in China, with some established distributorships

These resources were crucial to GHW. However, when evaluating them through VRIN 1
criteria, these resources were not enough to give GHW a sustainable competitive advantage that would
dictate its success.
The natural resources are VRIN. Having this asset, the firm is able to employ a valuecreating strategy, by outperforming competitors in the ingredients quality. The high-quality
standards are also VRIN, in the same way as the team and the R&D department, by bringing quality
to the process, increasing the final quality of the product. The distributorships, besides not being rare,
fulfil the VIN criteria, if properly exploited.
The company capabilities depend on the harmony between the different resources. GHW
specific capabilities depend on the ability to extract and use the natural resources to produce good
wine, using the high-quality assets and the companys and its teams know-how. Then, the ultimate
capability is to reach properly the intended market (i.e. Chinese). This is where GHW is failing.
Having this, GHW has some sustainable competitive advantages regarding the product, but
regarding the market, it is still in disadvantage compared to other competitors, considering it has a
weak capability of exploiting the Chinese market.

Adjunt Faculty Judy Tan

September 15

Duarte Maria Loureiro Jos de Mello

MGMT205 International Business

Valuable, Rare, Inimitable and Non-Substitutable

2 What advice would you have for Anat Levy Rushansky to improve its position in China?
Chinas market was a fast-growing market. However, its cultural peculiarities made it a very
challenging and competitive market. To be able to properly exploit the potential of the fast-growing
Chinese market, GHWs CEO needed to identify and implement a different set of strategies.
The main key to succeed was the distributor. It was crucial to establish a strong brand for
GHW, and until the moment, the distributorships that had been made had not triggered this key factor.
This was a particular difficult task, and probably the failure factor, because neither GHW has any brand
strength in the Chinese market, nor the Israeli wines themselves. However, if the company can turn the
situation around, it may be the key to success. Through a successful partnership with a good distributor,
this objective is more easily achieved, since the wine quality is given.
Chinese people tended to be attracted to strong and high-quality brands, even, and some times
even more, if these were more expensive, since it was a way of demonstrating wealth and success. This
was not a problem by itself, but a characteristic of the market, that if well exploited, might even be an
opportunity.
To create a sustainable plan for future growth, some different strategy had to be elaborated.
Since GHW was the biggest exporter of Israeli wines, the company should consider to use their
dimension, and therefore strength, by the impact on Israels export to China, to make some an
agreement with Israels government, in order to promote this Israel-China trade relation and be able to
easily access the markets in this so characteristic market.
One other option, or advice, that GHW could consider, was to provide themselves a new
marketing strategy together with their distributors. For example, evaluate and revise the places where
the wines are exposed and try to give a different approach to the market. They could place the wines in
a more medium-high end shop, where customers could have access to samples, to read about the Golan
Heights, to analyse its high-quality methods and materials, and even to experience a little of the new
type of production with the newest technology on the market, more sophisticated and elaborate than
most of the traditional wineries in Europe. The main goal was to promote a good image of Israeli wines
and the brand itself, by presenting good image and high quality.
Concluding, the main key of the Chinese market is having a good image and recognition in the
peoples mind. For this, GHW should use its resources, specially the ones mentioned in the first
question, not only to produce quality wine, which was naturally important and was already happening,
but could be a second priority for this specific market, since the China is not yet a mature market and
nor it has the capability to distinguish quality wines, but mostly to promote and develop their brand
recognition.

Adjunt Faculty Judy Tan

September 15