Read the scenario below and answer the questions1.1, 1.2 and 1.3. MCB Wineries is a large privately owned grapes farming and processing firm based in Stellenbosch, Western Cape. Since 2012, the organization is facing viability problems. Thuli, a business graduate from Stellenbosch University, recently joined the company as a new General Manager and is pushing the company to develop a customer-oriented strategic plan. However, the shareholders do not see the reason for that since MCB has been operating without one for more than 60 years now. Your company has been invited to mediate this debate. 1.1. Provide a balanced debate on the two viewpoints (Thuli versus the shareholders) on the role of strategy for MCB`S viability. [ 6+6=12 marks]
1.2. Thumi intends to develop a customer-oriented vision while shareholders prefer a profit-oriented (shareholder-oriented) vision. Evaluate the two perspectives (customer-oriented versus shareholder-oriented) and suggest the best type of vision for MCB Wineries. Justify your choice. [6+6=12 Marks]
1.3. Explain how the following environmental factors may affect MCB Wineries; a. South Africa International trade protocols b. Global warming- climate change c. Trade unions d. Business culture [4*4=16 Marks]
1.1. Customer oriented view keeps in mind the benefits of the customer. It lays emphasis on good quality product available to customers at a reasonable price. Customers taste, preferences and benefits to be kept on top priority On the other hand, shareholder oriented view lays emphasis on increasing the profits earned by the company. Their main focus is on increasing the profit margin either by increasing the sales revenue or by reducing the cost of operations. The product quality can be compromised in lieu of the high profits earned by the company.
1.2. Customer oriented focus is very important in the competitive world. As the customers are the ultimate revenue generator for any organization, so they should be kept on priority. Shareholder oriented view keeps the shareholders satisfied by earning high profit margin and distributing amongst the shareholders. As MCB refineries is facing dip in the sales and declining demand due to high level of competition, so customer oriented view would be much helpful to keep the customers satisfied and attracting new customers.
1.3. South Africa International trade protocols create a duty free trade area over a period of time and protects the international trade in the areas of agriculture. So it will have a positive impact on MCB Wineries.
Global Warming creates a negative impact on agriculture and reduces the agricultural output.
Trade Unions will support the trade and enhances the agriculture and trade amongst the member nations.
Business culture will have a positive impact on MCB Wineries to create better business opportunities and enhanced sales revenue.
Read the scenario below and answer the questions1.1, 1.2 and 1.3. MCB Wineries is a large...