Frog's Leap Winery Case Study

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I. Current Strategic Profile Frog’s Leap Winery’s mission is to produce high quality organic wine in a sustainable and green-friendly environment to a large portfolio of customers including resellers and consumers. Frog’s Leap’s objectives consist of implementing continuous growth through sustainability initiatives while maintaining the same levels of production outputs. The corporate strategy relies on weighing every decision by its social and ecological costs and benefits. From 1999 to 2010, Frog’s Leap recognized ample growth due in large part to the purchase of additional vineyards which resulted in an increase of wine case production of 59,000 to 62,000 cases. Frog’s Leap enjoys a large portfolio of customers, particularly resellers. 80 percent of 2010 net sales in the U.S. come from resellers. Exports, mainly in Japan, result in about 7 to 8 percent of company net sales. The remaining sales derive from consumers visiting Frog’s Leap’s winery (Gilinsky, 150). During the 2009 to 2010 recession, Frog’s Leap faired out well in accordance to historical financial ratios (See Exhibit 3) and similar sized wineries during the FY 2009 to 2010 as illustrated in Exhibit 6 (Gilinsky, 163). Since 1999, premium wineries in the North Coast have increased from 329 to 1250 (Gilinsky 145 – 146). In the past decade, 25 to 44 year olds have emerged as the largest segment of wine consumers, replacing Baby-Boomers who led most of the industry’s growth in the past 30 years (Gilinsky 147). The industry is in a stage of market saturation, causing financial difficulties as wineries are facing downward pressure on prices and margins. Many wineries believe in sustainability as an important part of their production process. II. Identification and Analysis of Strategic Issues An array of strengths characterizes Frog’s Leap Winery (see Exhibit 6). To begin, John Williams,

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