Strategic Management Essay

Strategic Management
Final Exam
BRL Hardy: Globalizing an Australian Wine Company


Table of Content

Executive Summary … Page 3
Factors responsible for the success of the merger … Page 4
The source of tension between Stephen Davies and Christopher Carson … Page 6
Millar’s role … Page 8
Millar’s stand on D’istinto … Page 9
Recommendation to BRL Hardy concerning the conflicting
proposals for Kelly’s Revenge and Banrock Station … Page 11
My Decision as Carson … Page 13
My Decision as Miller … Page 14
Exhibits … Pages 15 - 20
Bibliography … Page 21


Executive Summary

Although BRL and Hardy were in the wine making business in Adelaide, Australia, they were operating in two different styles. Hardy was a traditional company known for its award winning quality wines, while BRL which was formed by the merging of two cooperative wineries specialized in bulk, value wines. Hardy had long history of exporting high value added bottled wine to UK while BRL’s had only a modest success in selling abroad. The acquisition sprees by the Hardy’s management in UK, France and Italy landed the company in a financial crisis while BRL‘s effort to sell abroad was not as successful as they had expected and it was experiencing a financial decline as well. It was in this context that BRL and Hardy decided to merge in June 1992 and form BRL Hardy.

The company has been able to experience business synergy which has resulted in increased market size, strong marketing and distribution capabilities, and a wide range of products made available to customers increasing profits and growing shareholder’s wealth. The merger has enabled the company to redefine its business model from a wine exporting company to global wine company and establish itself as a global brand.

However, along with synergies in merger come challenges. Constant conflict between HQ and powerful subsidiaries indicate inherent weakness in the internal communication and cultural incompatibility of the...