Transforming Wine Production: Outsourcing Strategies PPT

This PPT slide, part of the 106-slide Corporate Performance Measurement PowerPoint presentation, presents a comparative analysis of traditional and modern wine production processes, highlighting the shift in operational strategies among New World wine producers. It emphasizes that the traditional wine-making approach is capital intensive, which poses challenges for producers. The text indicates that through selective outsourcing, New World wine producers have managed to streamline their operations and significantly lower their asset requirements.

The slide is structured around 3 categories of wine producer activities: Traditional Old World, Vertically Integrated New World (exemplified by Robert Mondavi), and Non-Vertically Integrated (represented by Glen Ellen). Each category is mapped against key stages of the wine production process, including vineyard activities, vinification, and aging.

The checkmarks indicate which activities are performed in each category. Traditional producers engage in all stages from grape culture to distribution. In contrast, vertically integrated New World producers selectively handle certain processes while outsourcing others, particularly in the vinification and aging stages. Non-vertically integrated producers further emphasize outsourcing, performing only essential activities and relying on external partners for the rest.

This analysis reveals strategic choices that can lead to operational efficiency and reduced capital investment. For potential customers, understanding these distinctions can inform decisions about partnerships and investment in wine production, as well as highlight the evolving nature of the industry in response to economic pressures. The slide effectively illustrates how modern practices can reshape traditional industries, providing a framework for evaluating operational strategies.

This slide is part of the Corporate Performance Measurement PowerPoint presentation.

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