calitera v 4
TRANSCRIPT
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Corporate Communication, Spring 2010 (Northern hemisphere)
Robert Mondavi Corporation: Caliterra (A, B and C)
Professor: Frank Jaster
Students: Javier Zapata, Philipp Smol, Luis Alee, Rodrigo Buccioni
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Agenda Introduction
Main Problems (Change Management) Short term plan
Long term plan
Risk and benefits Conclusions
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Main Problems
1. Lack of change management process fromthe joint venture Mondavi/Caliterra
2. Cultural differences in both companies
3. Mondavi mistrust from Chilean operations
4. Mondavis lack of knowledge about the Chilean localmarket / Caliterras lack of knowledge about US market
5. Independency of Chilean management operation(freedom of act)
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Lack of the change management process
from the joint venture Mondavi/Caliterra
Causes
Change management was not taken in consideration from
the beginning
Lack of stakeholders expectations from the venture
Lack of New venture culture / Company identity
Lack of Fit/Gap analysis (All levels)
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Different culture (both companies)
Causes
Language (Spanish vs. English)
Developed vs. emerging country
Family owned vs. large U.S. corporation.
Teams from different countries and far away from each
other. (Communication)
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Mondavis mistrust from Chilean
management
Causes
Many errors in the past => Loss of confidence
Working twice / operation losses
Lack of planning in Caliterra (Not comparable)
Lack of reporting procedures to US
Errzuriz is not at the same technical level as Mondavi
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Mondavi knowledge of Chilean market &
Caliterra knowledge of US marketCauses
Lack of knowledge
Americans are demanding in quality and standards. Local market is not as sophisticated as the USs.
Two Marketing teams / two approaches for themarkets
Companies working independently and not as a team
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Action plans(Alternatives)
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Short term plan
1. Send a mixed team from both companies to
each production facility.
Production
Vineyard operations Oenologists
Marketing
Objective: Interexchange standards and
experiences from all levels. Team building
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Short term plan
2. Controls & coordination
1. Conference calls twice a week between McKay
and Schnur, and the teams to coordinate
operations and Business as usual
2. Formalize the agreements and milestones in
formal documents. CONTROL
3. Weekly status reports from the teams on the
advance
Objective: Keep record of the changes and
status updates
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Short term plan
3. Marketing
1. Unify process and procedures for both
companies. (Branding)
2. Exchange reports of market trends, bi-weekly3. Weekly status reports from the teams on the
advance
Objective: Unify marketing operations and
keep track of the market trends
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Short term plan
4. Quality and shipments
1. Improve quality controls (to US standards) on
shipments from Chile.
2. Hire the services of a surveyor for the dispatchprocess, to meet Mondavi standards
Objective: Avoid future shipment rejections,
and unify the end quality of the product.
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Long Term Plan
Change management process
Driven by an external company
(consultant)
Asses all the existing gaps
Set an action plan to fit
Control and monitoring
Constant improvement See exhibits 1 & 2
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Short term plan
Risks
Relays on the English /
Spanish level from
employees. Long term effectiveness
Punctual solutions
Does not prevent future
issues
Benefits
Fastest solution available
Fast implementation
Low Cost
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Long term plan
Risks
Lead / Execution times
Cost
Depends on a third party
Requires a retention plan
for employees
Training times
Affects all the employees
Benefits
Long term solution
Constant feedback
Handles cultural
differences / changes
Attacks bottom line
problems
Employee improvementplan
Avoid future costs
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Conclusions
Owners must be clear from the beginning about what they expect ofthe new company. This statement must avoid any chance to havesecond readings or interpretations.
Companies cultures and styles are different, being the mayor cause of
many misunderstanding between both companies, in the past.
Companies cannot assume nothing as granted, especially if they aredealing with partners from other countries. Set policies andprocedures, as clear as possible for every member of the organizationin order to avoid assumptions.
Caliterra was a running business before the joint venture with its ownculture. Unfortunately it didnt meet Mondavi standards.