Strategic Management
Analysis
Treasury Wine Estate Report 2011
Hongyu SU -3317665
Jiabin YI -3318426
Qiu CHANG -3316152
Weihao XIAO -3316427
Yibo ZUO -3287791
Executive Introduction
Treasury Wine Estates Ltd (hereafter referred to as “TWE” or “the company”) is a leading
international wine business with a portfolio of over 50 brands of luxury, premium and commercial
wines. The company is currently a wholly-owned indirectly subsidiary of Foster’s Group. Followed
the Demerger by Foster’s, TWE is a separate legal entity and listed on ASX.
This report is prepared to advise the board and senior management of TWE on their proposed
strategic priorities to achieve profitable growth. In this report, we will use various strategic
frameworks to assess both internal environment and external environment for TWE, as well as
evaluating main strategic initiatives by being aligned with the criteria of stakeholders’ interests. We
aim to draw out the best strategic initiatives for TWE in a longer term.
Part 1 – Evaluating Internal and External Environment for TWE
First of all, to understand TWE’s internal environment by using a resources and capabilities
analysis (Appendix 1) is critical. It can be shown that the company is successful in maintaining a
strong brand portfolio worldwide as well as using technology to increase both its performances and
operations. Additionally, we find that by taking advantages of leveraging the flexible and efficient
production model can keep expanding the market share. The greatest weakness of TWE is that it
only sells wine and the highly reliance on knowledge may lead to high cost of research and
development.
Secondly, outlook for an external environment by using PEST+2 analysis (Appendix 2) is also
important. By evaluating the macro-environment, we find that as a recently sold government entity,
there is a significant political incentive for the transition to a listed entity to be a success.
Additionally, as the...