Calaveras Vineyards Case Solution
- Does Dr. Martinez have any particular competitive advantage in running Calaveras relative to others, including the current owners?
Dr.Martinez has been working in the company since 1987 as well as he has good knowledge about the company and understands its structure and operating style. He is the one who makes and implements many strategies in order for the firm to grow. He is the one who brought the company in a premium market at a competitive level. He has successfully made the product mix to find its way to the high price categories and boost the company’s sales.
He has been the general manager and the vice president of the company, thus as he is working since many years he has the abilities to run the company in a successfully. Moreover, he knows the direction where to lead the company. In addition to this, he knows the weaknesses of the company and company’s potential. All loop holes are identified by him. He has at many occasions saved the company from bad circumstances and difficult situations by taking major decisions. It could be said that he has run the business very well. Apart from that, he has been involved actively in the management of the business especially in making and implementation for the policy therefore; he has greater and broader view of the entire organization and its procedures. Thus, he has got competitive advantage over others in the management and in running the business.
- If Dr. Martinez buys the company, how would her incentives change? Does that impact your answer to c) above?
If Dr. Martinez buys the company, then he would become the owner in the sense he is the major shareholder in the company with 85% holdings. With this the incentives will be changed significantly. However,since the beginning of his career he has always formulated policies and always strived to make the company a success. He identified the problems and took every major step in order to to lead the company to a competitive level. It is thought that since when he bought the company, the primary objective remained the same and after all he became the owner due to which the successfulness of the company became more important for him. There might some adverse effects such as he wpi;dtry to make major decisions by himself and may only think about making higher profit and may start taking major prospective for the overall benefit of the company with its all stakeholders. The above answer will not have any change, however as said he might become a dominant personality and take all major decisions by him and give more importance to profit rather than anything else……………..
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