Evaluation of Growth Strategies

This report is Part 1 of assignment for Marketing MBA 565-MBOL1 to Dr. Stephen Baglione

Rapid growth seems to be a blessing. However, it depends on the company’s ability how they deal with it. The holiday season of 2009 showed the company’s inability to handle the orders that it received. Orders were not sent on time. Moreover, it delivered wrong order at times. To make the matters worse, the company was totally unable to fill some orders at all. This customer dissatisfaction might adversely

5) In late December 1995, sell-side analysts were forecasting long-term growth of 25-40% for the craft-brewing segment. How achievable are these growth targets? What factors are likely to influence analysts’ growth

The range that we chose to use for growth rates was 1%, 1.5%, 2%, and 2.5%. We believe that Calaveras will continue to produce a high quality wine upholding a strong brand name and position in the market. Along with this, we believe that the wine industry as a whole will be growing into the future because of a growing economy. These rates represent indefinite growth; therefore, we are positioning your company to be growing slightly above the industry average.

5) In late December 1995, sell-side analysts were forecasting long-term growth of 25-40% for the craft-brewing segment. How achievable are these growth targets? What factors are likely to influence analysts’ growth

marketing, store and field for growth investment” (“Growth Investment”). The company plans to continue with their transition into digital retailing, which will enhance their customer base.

It is the first year of the venture’s existence and the goal is to prove there is sufficient demand for Calambra olive oil to continue business. Because it has been only three months since the venture was launched, it is impossible to know if a viable market segment actually exists. Unfortunately the decision about next year has to be made now. If Calambra is able to sell all of the 1993 oil before the 1994 shipment arrives, the 1993 test will have been a success and everything will be as planned. If the 1993 sales fail to materialize then it will be unlikely demand would increase in 1994 and Frank will be out of business and left with thousands of dollars in losses (Appendix A).

Continuing to grow through acquisitions, once leverage has been reduced, to remain a dynamic player in the consolidation of Wines & Spirit sector.

1. In the last five years the growth in sales for the company has been around 10% per annum, except for the 1997, the growth was 18.78%. In the case, nothing is mentioned that company has made any drastic changes in its strategy to grow faster. In such a scenario, projected a consistent growth of 20% per annum for the next 5 years is too optimistic.

In recent years, the company experienced a rapid growth and expects a substantial increase in sales in the spring of

|the industry and its challenges it is important to understand its various phases of growth so far. |

Armstrong, G. Brown, L. Burton, S. Deans, K., & Kotler, P. (2010). Marketing (pp. 4-40). New South Wales: Pearson

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

Despite the fact that the company could grow by doing more and more acquisitions, it was vital for the company to invest in its own organic growth. The company aims to grow organically two to three times higher than the global GDP of 80% (Immelt, 2005).

3. What is your evaluation of the growth strategy (a strategy for a giant global conglomerate with a portfolio of mature industrial businesses) Immelt has articulated? Is he betting on the right things to drive growth?