Mondavi Corporation

The Robert Mondavi Corporation Today the forces of globalization and consolidation are face to face with the wine industry. The old world producers: France, Spain, and Italy, continue to dominate the market while the new world producers such as the US, Argentina, Australia, Chile, and South Africa have been making inroads into the global and increasingly competitive wine market. The Robert Mondavi Corporation has produced some of the most respected wine labels around the world, gaining a reputation of superior quality. Mondavi is known throughout the world for its quality wines, but the percentage of international sales for the company is actually relatively small. In 1994, only 6 % of the company's $200 million sales were made outside of the United States. However, international operations represent a significant opportunity for the company to grow, especially in countries with markets that do not yet drink significant amounts of wine, for example Asian countries.

Robert Mondavi Winery, Napa Valley, California. Lo...

English: A 2005 Napa Valley Chardonnay from Robert...

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The company also has excellent opportunities in working with some of the new wine producing countries such as South Africa and Argentina. I believe that the key factor to success is to develop an internal commitment to an international relations program and support it with adequate resources.

The Robert Mondavi Corporation has not dedicated a large staff to international development. I urge Mondavi to establish an international division structure creating a division designated to handle all of international operations. This structure takes a great deal of the burden off the chief executive officer, Michael Mondavi, and designates the head of the international division to coordinate and monitor all overseas activities. The vice-president of international operations reports directly to Mr. Mondavi regarding all international matters and this ensures that the international focus receives top management attention. This arrangement is good for the Mondavi Corporation because it is...