Management Essay

4055 Words Jul 7th, 2016 17 Pages
BRL Hardy: The Post Merger Success

Perhaps the main drive for BRL Hardy’s post-merger success was the fact that the two merged companies were so distinct from each other. BRL was a company that sold fortified wines and took a bulk and volume approach, and thus had as one of its main assets its grape resources. Hardy’s on the other hand was a recognized, traditional award-winning brand wine that had marketing expertise and brand recognition. This essentially meant that Hardy had the know-how and innovation while BRL had the funds and resources to implement the ideas.

Another reason for the success was the appointment of Steve Millar as CEO of the newly merged companies. Millar’s management placed an emphasis on turning BRL
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As a result of the goal to become a global company, the company’s strategy of strengthening international distribution, investing in the improvement and acquisition of new properties and facilities related to wine-producing, as well as the positioning and labeling of global brands also stimulated the success of the company. The company was able to take a “minimum risk” global approach by sourcing their wines from multiple regions. The approach to decentralize while maintaining central accountability was also solid in that it planned to place the responsibility of labeling, pricing and branding in Australia while entrusting to foreign branch managers the responsibility of distribution, promotion and sales.

Decentralization vs. Centralization: Power Struggles between Davies and Carson

The main source of tension that existed between Stephen Davies and Christopher Carson was the simple conflict of centralized management vs. foreign branch autonomy. This seemed to be an issue that arose in a post-merger context due to the fact that Carson was initially part of the Hardy Co. before the merger with BRL and was previously used to operating under a decentralized structure whereas after the acquisition, his previous experience and accomplishments would be ignored as a result of new management and he’d lose autonomy over his operations in the UK by being forced to answer to Stephen Davies. Another area of conflict stemmed from

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