1. Use Porter’s 5 force model, industry life cycle , strategic group , and the S

Question

1. Use Porter’s 5 force model, industry life cycle , strategic group , and the SWOT analysis to understand the opportunities and threats in the industry. Keep in mind that whether each condition is a threat or opportunity will depend on each firm’s unique set of resources and competencies. So, identify the opportunities and threats confronted by each firm, and its key rivals.

2. What are the immediate and long-term growth, product, and pricing trends in your industry?

3. Is market demand for your industry’s offerings growing, shrinking, or holding steady?

4.  Is it easy or difficult for new competitors to enter your industry?

5. How fast are technologies, regulations, or other fundamentals of your industry changing?

6. Has your business adapted to changes in your industry, and how well are you prepared to adapt to the changes you see on the horizon?

7. How serious a competitive threat do you face?

8. Who really drives your industry: customers, distributors, or suppliers?

9. Will you be able to ride the rising tide of an expanding industry, or will you have to find ways to succeed in spite of a general industry slowdown?

10. Do you anticipate major transformations –– in technology, production processes, global influences, or customer buying patterns –– that could affect your competitive position and profitability?

Nan Alon, Jennifer Dugosh and Meredith Lotrwasser wrote this case solely to provide material for class discussion. The autriors ao not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Westen University, London, Ontario, Canada, NOG ONT: (1) 519.661.3208; (0) caseSQivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation version: 2015-02-23 “The recent transformation of China into a wine-drinking nation is an astonishing phenomenon." - Anthony Rose, 2012 Golan Heights Wines wanted to take advantage of the Chinese market. It was 2012 and in recent years, China had demonstrated incredible growth in the wine market (see Exhibit 1). Consumers' growing interest in wine products had made wineries and vineyards like Golan Heights hungry for entry. Anat Levi Rushansky, CEO of Golan Heights Winery, had gone to China with her products in 2009, She had chosen distributorships as the mode of entry because of their knowledge of and experience in the Chinese market, something Rushansky did not possess. Since she had entered the market, however, she had learned of the seemingly disappointing demand for Israeli wines. Given the size of the market, sales were rather limited. Most Chinese consumers who sought imported wines wanted them from Europe, particularly France. Also popular among the Chinese were Australian and Chilean wines. In addition to the disappointing demand, vendors and distributors did a poor job of pushing Israeli products. Rushansky contemplated the conditions of the Chinese beverage market and what her next steps should be. She knew that leaving the market was not a smart business move, given its size and growth potential. She thought of her past efforts in China. Had Rushansky approached the Chinese market correctly? Was distributorships the best way to get Golan wine products in front of the Chinese consumer or was another distribution model more favourable? Were her marketing and advertising efforts, or lack thereof, sufficient and appropriate? Finally, what was the best way to approach the market competitively? Rushansky needed to devise and execute a series of strategies to better take advantage of the impressive Chinese market, establish a brand for Golan Heights Wines and create a platform for future growth. THE GLOBAL WINE INDUSTRY The global wine industry had been characterized by oversupply conditions for most of the past decade. The emergence of New World producers in addition to traditional manufacturers had resulted in a "global glut of wine." As a result, wine prices and profitability had fallen. In 2008, when key wine-consuming countries fell into recession, industry conditions worsened. The wine industry had not improved in 2012 either, as high unemployment, high government debt and government spending cuts held the market

Explanation / Answer

Advantages of Group Decision Making

Group decision building gives two advantages over decisions create by individuals: synergy and sharing of information. Synergy is the idea that the whole is greater than the sum of its parts. When a group reaches a decision collectively, its judgment can be keener than that of any of its members.

Through discussion, questioning, and collaboration, group members can know more complete and robust solutions and character.

The sharing of information among group members is a different advantage of the group decision-making process. Group decisions take into account a full scope of information since each group member may contribute unusual information and expertise. deal information can develop understanding, explain issues, and help movement toward a collective decision.

Disadvantages of Group Decision Making

Diffusion of Responsibility

One possible problem of group decision-making is that it can produce a diffusion of responsibility that occur in a lack of accountability for outcomes. In a sense, if everybody is responsible for a decision, then no one is. furthermore, group decisions can make it carefully for members to deny private responsibility and blame another for effective decisions.

Lower Efficiency

Group decisions can also be mean efficient than those made by an individual. Group decisions can take extra time because there is the element of participation, discussion, and coordination with group members. Without good facilitation and structure, meetings can take bogged down in small details that may mean a lot to one person but not to the others.

Groupthink

One of the high inhibitors of active group decision making is groupthink. Groupthink is a psychological phenomenon that happen within a group of people in which the passion for harmony or conformity results in an irrational or dysfunctional decision-making outcome. By isolating themselves from external influences and actively suppressing dissenting position in the interest of minimizing conflict, group members join a consent decision without critical evaluation of choice viewpoints.

Loyalty to the group want individuals to withdraw raising controversial stocks or alternative solutions, and there is a damage of individual creativity, uniqueness, and independent thinking. The dysfunctional group dynamics of the in-group present an illusion of invulnerability. Thus the in-group significantly overrates its own decision-making abilities and significantly underestimate the abilities of its enemy (the out-group). Furthermore, groupthink can play dehumanizing claim against the out-group.

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