Business of Wine

Question 2

3PL

Answer 2

Third–party logistics. Third–party logistics (abbreviated 3PL, or sometimes TPL) in logistics and supply chain management is a company’s use of third–party businesses to outsource elements of the company’s distribution and fulfillment services. Third–party logistics providers typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers’ needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Often, these services go beyond logistics and include value–added services related to the production or procurement of goods, i.e., services that integrate parts of the supply chain. When this integration occurs, the provider is then called a third–party supply chain management provider (3PSCM) or supply chain management service provider (SCMSP). 3PL targets particular functions within supply management, such as warehousing, transportation, or raw material provision.

Question 3

A disposable plastic bag intended for installation in a standard 20ft shipping container and used for shipping bulk wine:

Answer 3

Flexi–Tanks

Question 4

As of 2015, which country is #6 for over–all production in Europe? What is the red/white ratio and % of spirits?

Answer 4

Romania 85% white wine, 15% red wine

Question 5

Automated technology implementation addresses (3) things:

Answer 5

changing customer expectations growing regulatory requirements globalization of the supply chain

Question 6

Brand Management

Answer 6

In marketing, brand management is the analysis and planning on how that brand is perceived in the market. Developing a good relationship with the target market is essential for brand management. Tangible elements of brand management include the product itself; look, price, the packaging, etc.

Question 7

Brand Managers

Answer 7

Brand managers are responsible for ensuring that the products, services and product lines that fall under their domain resonate with current and potential customers. To do so, these professionals continuously monitor marketing trends and keep a close eye on competetive products in the marketplace.

Question 8

CAGR

Answer 8

The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.

Question 9

CIS (Region)

Answer 9

Commonwealth of Independent States (formerly the USSR)

Question 10

Confirmation Bias

Answer 10

The tendancy to interpret new evidence as confirmation of one’s existing beliefs or theories

Question 11

Corporations

Answer 11

a legal entity owned by shareholders with limited liability protection that allows it to be treated as separate and distinct from its owners

Question 12

Detail the essay structure for: 4P Marketing Mix

Answer 12

The 4 p’s of marketing: Product Promotion Place Price

Question 13

Detail the essay structure for: 7P Marketing Mix

Answer 13

The extended 7ps include the 4Ps and: People Process Physical Evidence

Question 14

Detail the essay structure for: Yes But Yet

Answer 14

Thesis point of view First piece of evidence 2nd piece of evidence 3rd piece of evidence 4th piece of evidence Antithesis – consider the alternatives that contradict the evidence Conclude – Nevertheless the evidence above overwhelmingly confirms the thesis

Question 15

Detail the essay structure for: PESTEL Analysis

Answer 15

Political Economic Social Legal Environmental Technilogical

Question 16

Detail the essay structure for: SWOT Analysis

Answer 16

Strengths Weaknesses Opportunities Threats

Question 17

DIFOT

Answer 17

DIFOT (delivery in full, on time) or OTIF (on–time and in–full [delivery]) is a measurement of logistics or delivery performance within a supply chain.

Question 18

Ethical Trading Initiative (ETI)

Answer 18

The ETI Base Code is a code of labor practice, derived from the Conventions of the ILO. The code is generic, meaning that it is applicable for any type of company, in any place in the world. Companies can become members of ETI, and as such they adopt the Base Code and commit to making sure their suppliers work towards full compliance over time.

Question 19

Exploitation costs of the hospitality facility.

Answer 19

the difference in retail price from off– to on–premise mark–ups on wine, and why they are different

Question 20

Family Values

Answer 20

the moral and ethical principles and traditions practiced and communicated by a family throughout its business practices.

Question 21

FSSC 22000

Answer 21

FSSC 22000 contains a complete certification scheme for Food Safety Systems and is fully based on the international, independent standards: ISO 22000, ISO 22003 with sector specific technical specifications for PRP’s and additional scheme requirements. FSSC 2200 is the only ISO based FSMS Certification Scheme that is recognized by the Global Food Safety Initiative (GFSI).

Question 22

GDPR

Answer 22

General Data Protection Regulation EU regulation (May 25, 2018), aimed to protect personal data of anyone in the EU, and by companies that are doing any business within the EU, but not necessarily based in it. Privacy by default, rather than by request. Potential affects – DTC, marketing co’s, news outlets, subscription based entities, etc.

Question 23

HACCP

Answer 23

Hazard Analysis Critical Control Point HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product.

Question 24

How has the drinking age population changed over the past few years?

Answer 24

Millennials (1980–2000) have steadily entered the LDA population (2.5M + in 2015), and the focus of drinks producers has been on this population segment, especially females.

Question 25

How many gallons in 1 hectoliter?

Answer 25

26.41

Question 26

ISO 14000 family

Answer 26

The ISO 14000 family of standards provides practical tools for companies and organizations of all kinds looking to manage their environmental responsibilities. ISO 14001:2015 and its supporting standards such as ISO 14006:2011 focus on environmental systems to achieve this. The other standards in the family focus on specific approaches such as audits, communications, labelling and life cycle analysis, as well as environmental challenges such as climate change.

Question 27

Large Corporations

Answer 27

a legal entity that is separate from its owners and produces in excess of 500,000 cases

Question 28

Reusable steel tanks, used for bulk shipment of wine, and which need to be cleaned between shipments:

Answer 28

ISO tanks – reusable steel tanks, which need to be cleaned between shipments. ISO tanks offer all the advantages of flexi–tanks, but are more polluting and expensive in transport due to higher weight. One advantage of an ISO tank is its reliability; they have a lower risk of defects compared to flexi–tanks.

Question 29

SCM

Answer 29

Supply Chain Management

Question 30

Supply Chain

Answer 30

the sequence of processes involved in the production and distribution of a commodity

Question 31

Supply Chain from top to bottom:

Answer 31

Producer Importer Wholesaler Retailers / Restaurants Consumers

Question 32

Systembolaget

Answer 32

Sweden The name of the government monopoly that controls the sale of off–trade alcohol. Difficult to get listed as the store selections are limited, sales tracking is robust, and can be delisted quickly. On–trade is a robust avenue for many wineries though as there is no local wine production.

Question 33

Taking over (as in one corporation taking over another)

Answer 33

purchasing the business’ brand or assets OR taking over ownership of the brand rights in a specific market

Question 34

Term: Business Consolidation

Answer 34

The consolidation of several business units or several different companies into a larger organization. Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes. It is most often associated with mergers and acquisitions. Business consolidation can result in long–term cost savings, but in the sort term can be expensive and complex.

Question 35

Term: Fragmented Market

Answer 35

A marketplace where there is no one company that can exert enough influence to move the industry in a particular direction. The market consists of several small to medium–sized companies that compete with each other and large enterprises

Question 36

The drive for authenticity in a product drives the need for what?

Answer 36

Transparency Traceabilitythese are attributes that are increasingly in demand by consumers

Question 37

Total European wine production in 2015? % change from 2011 > 2015?

Answer 37

172M hl in 2015 annual increase of 1.6% between 2011 > 2015 As of 2016, there is a 1% allowance to increase acreage across the EU vineyard, mainly in order to meet the growing global demand.

Question 38

Types of Profitability Ratios

Answer 38

Common profitability ratios used in analyzing a company’s performance include: gross profit margin (GPM), operating margin (OM), return on assets (ROA) , return on equity (ROE), return on sales (ROS) and return on investment (ROI).

Question 39

U.S.P.

Answer 39

Unique Selling Proposition a marketing term The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition. This is what your business stands for.

Question 40

Value Chain

Answer 40

the process or activities by which a company adds value to an article, including production, marketing, and the provision of after–sales services

Question 41

Warehouse management software began to be widespread in the early 1990s, and today ____% of the top 100 warehouses are using automated software to manage their warehouses?

Answer 41

90% is the number, but I have got to believe that it is probably closer to 100%, at this point.

Question 42

What are the big four supermarket chains in the UK?

Answer 42

TESCO Asda Sainsbury’s Morrisons with Aldi and Lidl increasingly taking market share

Question 43

What does an aging or older drinking population tend to mean?

Answer 43

Older people tend to drink less but they tend to drink better quality, especially if the economy is doing well or is optimistic often this is with an eye to greater demand for exclusive, high–production–value products (ie: Champagne)

Question 44

Who accounts for nearly 80% of the total European wine production?

Answer 44

Italy France Spain (2015 #’s)

Question 45

Who are the 1,2,3 leading developing countries exporting wine to the EU by volume in 2015?

Answer 45

Chile – 5.2% South Africa – 3.2% Argentina – 1.7%

Question 46

WMS

Answer 46

Warehouse Management Software