SWOT 3 – Book Report/Review Example
SWOT 3 SWOT 3 Charles Krug Winery This is a good example of a company which did not deal with their weaknesses. Charles Krug Winery was located in Napa Valley. This was a family-owned winery and it had severe disputes over its control. Family members argued over who should take certain managerial positions. Every member of the family had their own interest in running the company (Perry, 2002). One son was obsessed with managing the finances of the company in which he was not qualified for. This was the same case with other members who wanted to manage various operations of the company in which they were not qualified for. There were various attempts to solve these conflicts but the family members could not come to an agreement.
Those who occupied managerial positions in which they were not qualified made poor decisions and this led to poor performance of the business. The family did nothing to solve this key weakness of poor management. Poor decisions sometimes led to signing of contracts with growers who had vineyards that did not produce best grapes (Perry, 2002). Creating wines with these poor quality grapes produced bad wines which eventually led to low prices for their wines.
Charles Krug winery was sometimes known to produce bad tasting wines and their wines were not popular like for their competitors. This made them to face stiff competition and they eventually sold the company to Robert Mondavi (Perry, 2002).
Perry, S. (2002). A Comparison of Failed and Non-Failed Small Businesses in U.S.A. Journal of Developmental Entrepreneurship, 7(4), 415-421.