A Case Study on Treasury Wines Estates Limited.

Running head: A CASE STUDY ON TREASURY WINES ESTATES LIMITED
A CASE STUDY ON TREASURY WINES ESTATES LIMITED
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A CASE STUDY ON TREASURY WINES ESTATES LIMITED1
Executive Summary
The objective of this report is to analyse the market structure and several factors affecting the
growth and expansion of the Treasury Wine Estates Limited. The paper initially presents a
brief overview of the location, nature and factors of the company. Additionally, it includes
the market share as well as various competitors of the company in the wine industry of
Australia. Afterward, the paper incorporates the cost structure and macroeconomic business
factors of the company. It includes the Australian economic activity that can affect the
development of the company. Lastly, the paper includes the externalities associated with the
market and the company. Apart from all these, it indicates the government to reduce tax rates
because of the several benefits rendered by the product.

A CASE STUDY ON TREASURY WINES ESTATES LIMITED2
Table of Contents
Introduction................................................................................................................................3
Overview of the business environment......................................................................................4
Cost of producing wine..............................................................................................................6
Macro-environment for the wine business.................................................................................7
Government intervention in the market.................................................................................7
Macroeconomic environment of Australia for business........................................................8
Exchange rate factor in business............................................................................................9
Nature of the product...........................................................................................................10
Externalities generated by the Treasury Wine Business..........................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13

A CASE STUDY ON TREASURY WINES ESTATES LIMITED3
Introduction
The wine industry in Australia is famous for its high-quality vineyards and freshly
produced wines. Australia is the fifth largest producer and exporter of wine in the world. The
most demanded wine of Australia is Penfolds Grange (Chong, 2014). The wine
manufacturing sector provides a substantial amount of revenue to the government. As a
result, the GDP of the Australian economy depends on the wine industry.
Additionally, this industry derives a significant amount of support from the Australian
agricultural department as well as the government of Australia. Several producers and
growers are present in the market (agriculture.gov.au, 2020). They can be either privately
owned or government-supported. However, most of the winegrowers are small and have a
family-owned business. Among all these wine producers, the Treasury Wine Estates is a
renowned winemaking and distributor company that has extended its business operations in
several economies in the world. This wine company has developed under the brand name of
Foster’s Group, which is an Australian based beer group organisation. This agro-based
company is widely expanding and has made a significant mark in the Australian as well as
the global wine market. The reason behind its continuous development is its strategic merger
and partnership with specific renowned organisations.
This report is prepared to provide a brief introduction and knowledge about the global
brand wine of the Treasury Wine Estates. This report provides an analysis of its cost structure
and the market share of the company. Additionally, the report incorporates competitors’
analysis along with the analysis of the support that the company derives from the
macroeconomic environment of Australia. Lastly, the study tries to highlight the possible
externalities generated by the company.