Pohutu Wines Ltd: Case Study (DOC)

Running head: POHUTU WINES LTD CASE STUDY
Critical Analysis of the Pohutu Wines Ltd Case Study
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POHUTU WINES LTD CASE STUDY
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Critical Analysis of 3 Different Tools of Strategic Management for Supporting
Decision Making for the Leaders of Pohutu Wines Ltd........................................................2
2.1.1 SWOT Analysis........................................................................................................2
2.1.2 PEST Analysis..........................................................................................................4
2.1.3 Porter’s Five Forces Analysis...................................................................................5
2.2 Analysis of the Core Values that underpin Pohutu Wines and Explanation of the
Reasons for Core Values important for Long Term and Short Term with Evaluation of
Values affecting Employee Motivation and Customer Relations..........................................6
3. Conclusion..............................................................................................................................9
References................................................................................................................................10

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POHUTU WINES LTD CASE STUDY
1. Introduction
Strategic management can provide proper direction to the organization and it is
needed to ensure that the organization would be able to develop proper policies and plans for
better effectiveness in the business (Conger, 2015). The respective people, with stronger
leadership skills within the organization could eventually increase to different executive
position such as CFO, chairman, president, COO and CEO (Daft, 2014). This report outlines
a detailed discussion on the case study of Pohutu Wines Limited with analysis of different
strategic management tools and core values underpinning the business properly. Pohutu
Wines is a popular wine company in New Zealand that has been doing business for several
years and have involved numerous external and internal aspects. The organization of Pohutu
Wines was founded in the year of 1996 by Antonio Caprini with major borrowings and
savings from his family as well as a heavy mortgage. The organization got success in the year
of 2002 after consideration of the Maori culture. Antonio with his son, Tane have involved
new techniques and aspects in the company for reducing the issues that were common in their
business.
2. Discussion
2.1 Critical Analysis of 3 Different Tools of Strategic Management for Supporting
Decision Making for the Leaders of Pohutu Wines Ltd
Strategic management could be eventually referred to as an constant planning,
observation, analyses and even evaluation of all features, which are required for a business,
so that it becomes easier to fulfil each and every objective and goal (Rothaermel, 2016). The
respective changes within a business environment require the companies to continuously
assess the strategies for gaining success. It also provides proper direction to the companu
after involvement of specifications of the organizational goals, expansion of policy and plan
for achievement of these objectives and many more. 3 significant tools of strategic
management for supporting decision making in Pohutu Wines Ltd are as follows:
2.1.1 SWOT Analysis
The first significant and important strategic tool that can provide subsequent analysis
of strengths, weaknesses, opportunities and threats of any particular organization. It is being
designed for better utilization in the preliminary phases of the decision making procedures
and could even be utilized as a specific tool for proper evaluation of the strategic position in
the most effective manner (Ansoff, Kipley, Lewis, Helm-Stevens & Ansoff, 2018). SWOT

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POHUTU WINES LTD CASE STUDY
analysis is intended in specification of the goals of the respective business venture and
recognition of different external as well as internal factors that are both unfavourable and
favourable for achievement of the objectives. The detailed analysis of SWOT of Pohutu
Wines Ltd is as follows:
i) Strengths: The organization of Pohutu Wines Ltd consists of few significant
strengths. The main purpose of the organization is to offer a major experience for all the
clients to understand their choices (David & David, 2016). The main strengths of this
particular organization include excellence in their work, major integrity, honesty as well as
socially responsible business related practice, connection of Wairuatanga and the Maori
people to the land and also enhancing scope for better effectiveness and efficiency in the
business growth. They are using the land harmoniously as well as sustainably for their future
generations. The products of this particular organization are widely being utilized in the
entire New Zealand and Air New Zealand as well as Thai Airways are their new and
important customers. They have been able to increase their sales to high level and have been
gaining success majorly (Hill, Jones & Schilling, 2014). Another distinct strength of this
particular organization is that they have a desirable reputation as the long term manufacturer
of the best quality wines and have involved diversified activities as well as Maori cultural
perspective within the business. Different impressive facilities are also provided by them
without much complexity.
ii) Weaknesses: In spite of having such distinct strengths and advantages, few
weaknesses are also present for the business of Pohutu Wines Ltd. Every aspect of the
business requires to be considered on top priority. The first and the foremost weakness is that
the production costs of this particular organization is quite high (Moutinho & Vargas-
Sanchez, 2018). As a result, the costs of their products are also increased to a high level. One
of the major reasons of such cost increase was that the plantation cost of wine is quite high
and should be lowered eventually. There is a shortage of value benchmarking for the core
purpose of improving the image of their brand. The second important and significant
weakness of this specific organization of Pohutu Wines Ltd is that they do not focus on
advertising or marketing. It is extremely vital for any business to involve effective methods
of marketing, so that all the customers are able to gain knowledge about their distinct
products and services (Lasserre, 2017). Moreover, the restaurant of Hinemoa Heights was
absolutely new and is doing operation for only one year. There had been global recession and