Chalice Wine Essay

goblet Wine conclave is a publicly traded company that, by numerous partnerships, owns and/or operates a number of vineyards and wine manufacturing companies in Californias Sonoma valley. Previously, they enjoyed a quantify of profitability. Yet in recent years, expansion has saw a decrease in their level of profitability, followed by a repeating period of net income losses. The goal of the case is to determine whether the operation of a undersized winery can be a profitable venture. Upon reading the Chalice Wine Case, the primary wall socket that I have identified, is that the management of the company has not crafted a clear and identifiable mission.As before long mental synthesisd, Chalice Wine Group is attempting to be a vertically integrated company. In this they are attempting to get ever step in the wine business. They are making their own grapes, souring their own grapes, bottling, and lastly shipping them to various scattering outlets. This is fine, as long as th ey are able to create an extremely efficient model to do so. But unfortunately, as their results indicate, they are not efficient enough to assimilate this current model work.There are a number of possible avenues that Chalice Wine Group needs to research, among those are -Why are they paying a price for grapes(from themselves ) that is so in excess of the grocery store rate? There are currently some transfer issues in place, management needs to explore these costs. -Pressing and manufacturing of the wine The costs of the machinery involved, is extremely expensive. What is Chalice doing with their equipment during the time periods in which there is no proceedsion? How are they utilizing this excess capacity? They can either outsource this to another company, or utilize this capacity to process wine for others.-Shipping and scattering Why are they handling this process themselves? This is easily something that should be handled outside. Secondly, they wish to be a niche wine pr ovider, by manufacturing a high quality, high cost product. The problem is that this narrative essentially contradicts their companys vertical structure. This is illustrated through examination of some of their shipping/bottling practices and part of their distribution chain. -They do not package and bottle their products according to the same quality standards. For example, they are using divers(prenominal) quality bottles and boxes for different products.In this eyes of the consumer, this can be inferred as different levels of wine quality. -Next, the liking to be a small niche provider is a direct contradiction to the thought of distribution through food markets. This alone can allow the consumer to infer a mass marketed, broadly distributed product of lower quality. If they want to be a niche provider, they need to market and distribute themselves as such. Chalice Wine Group needs to decide what kind of company they want to be, and as such, needs to structure themselves in a way that will help best meet that mission and goal in the most efficient manner possible.