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Journal ArticleDOI

Wine business performance benchmarking: a comparison of German and Ukrainian wineries

25 Jul 2018-Benchmarking: An International Journal (Emerald Publishing Limited)-Vol. 25, Iss: 6, pp 1864-1882
TL;DR: In this paper, the authors evaluate and compare the efficiency of wine making in Germany and Ukraine in order to find the controllable factors of wine business performance using benchmarking tools.
Abstract: Purpose The purpose of this paper is to evaluate and compare the efficiency of wine making in Germany and Ukraine in order to find the controllable factors of wine business performance using benchmarking tools. Design/methodology/approach The models of data envelopment analysis and other benchmarking tools are used to analyse the efficiency of wineries in two countries. Returns to scale, scale efficiency, super-efficiency and some other indicators are examined. The research is based on the sample of 36 German and Ukrainian wineries. Findings The hypothesis of higher wine making relative efficiency in Germany was compared with Ukrainian wine making, then analytically and statistically verified. A relatively high average scale efficiency score indicates good potential (above 30 per cent) for efficiency growth, due to the optimisation of a scale of production and sales. Generally, wine making in Germany and Ukraine has increasing returns to scale. The high-efficient wine business cannot bring great losses. It was found that the most efficient combinations of size and legal form of business organisation for wine business are presented in Germany. Research limitations/implications The research is limited by a single industry of only the two countries. Practical implications This study provides useful information for researchers, investors and policy makers, enabling them to understand the current state, basic problems, controllable factors and efficiency levels of wine making in Germany and Ukraine. It may be useful to wine producers in these countries for improving their business performance. Originality/value This is the first paper that compares wine business performance and discloses its factors for Germany and Ukraine.
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Journal ArticleDOI
TL;DR: In this article, a derived typology of brand strategy types deals with social profiling and sheds light on brand strategy internalization of two current managerial paradigms (sustainability and co-creation).
Abstract: The article explores SME (Small and Medium Sized Enterprises) brand strategies as a means to position and successfully engage in competitive markets. A derived typology of brand strategy types deals with social profiling and sheds light on brand strategy internalization of two current managerial paradigms—sustainability and co-creation. N = 895 German SME wineries were examined, leaning on a netnographic analysis of predominantly websites and social media interactions. A two-step clustering method thereby identified eight winery SME brand strategy types. The importance of sustainability across the identified eight brand strategy types is significant. Co-creation turned out to be a key profiling trait characterizing one brand strategy type. The typology illustrates strategic richness, with brand strategies leaning predominantly on traditional values, on sustainability, on external reputation, or on more innovative customer centric concepts such as co-creation. Hereby, the typology and the identified brand levers invite to strategically design brand management, governance, and sustainability. Wineries which focus on traditional positioning and legitimacy were found to be cautious in deploying co-creation through social media. Winery brands that are characterized by engagement in digital co-creation apparently either tend to expand their scope or partially combine it with traditional values, making them the most diverse type identified. Sustainability obviously needs to be addressed by all brand strategies. Despite industry and country focus, the analyses illustrate the relevance of socially-oriented profiling and highlights that sustainability has reached a status of a fundamental business approach still allowing to differentiate thereon. Furthermore, the business models of the SMEs need to deliver communicated values.

24 citations

Journal ArticleDOI
TL;DR: In this paper, a survey was conducted with representatives from 123 wineries located in the following Brazilian states: 78.86 per cent in Rio Grande do Sul; 13.01 percent in Santa Catarina, 2.44 percent in Parana; 2.63 percent in Bahia; and 1.63 per percent in Pernambuco.
Abstract: The purpose of this study is to verify whether managers’ strategic orientation influences decision-making related to differentiation and whether these two factors impact on the performance of the firms in the Brazilian wine industry.,A survey was conducted with representatives from 123 wineries located in the following Brazilian states: 78.86 per cent in Rio Grande do Sul; 13.01 per cent in Santa Catarina; 2.44 per cent in Parana; 2.44 per cent in Sao Paulo; 1.63 per cent in Bahia; and 1.63 per cent in Pernambuco. The data were analyzed using multivariate statistical techniques, resulting in a structural equations model of the constructs.,The research findings show that there is a positive association between prospector orientation and differentiation. Analyst positioning was negatively associated with differentiation of winery companies. It was also possible to show that differentiation has a positive relationship with performance.,While a previous study attempted to identify wineries’ strategic orientation using other theoretical constructs, this study makes a contribution to consolidating reflections on strategic orientation focused on differentiation and performance. The results contribute to expanding the scientific debate by filling a gap in existing theory and also provide information of use to decision-makers, demonstrating, which approaches improve differentiation, and hence, performance.

10 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the equilibrium and capital, financial, economic and income dynamics of Italian wine producers, during and after the international economic crisis (2008-2017) by analyzing the balance sheets of a medium-large companies sample.
Abstract: This study aims to investigate, by means of a balance sheet analysis, the equilibrium and capital, financial, economic and income dynamics of Italian wine producers, during and after the international economic crisis (2008-2017). Therefore, three research questions arise: What was the evolution of the main financial indicators and margins? Did the companies that survived the crisis increased their profitability? Have these companies changed their financial and economic balance sheets?,It was analyzed the balance sheets of a medium–large companies sample. The study describes the evolution of three income indices (return on equity compared to the average interest rate on government bonds, return on investment compared to the average rate on loans, return on sales), three asset margins (structural margin, net working capital and treasury margin) and four financial ratios (acid ratio, current ratio, leverage and index of financial dependence). The results were graphically represented, also with the use of interpolation curves.,After the crisis, the sector shows increasing profitability. However, from the balance sheet analysis and the trend of the financial indices, there is a strong imbalance and excessive levels of stocks. Furthermore, the debt situation is excessive: the predominant presence of third-party financing would require enormous recapitalizations and probably an increase in self-financing, which is possible thanks to the constantly growing profitability.,The study takes into consideration only the companies that survived the crisis, therefore, presumably the stronger ones. Moreover, more ratios should be considered to have a more complete picture. It is a uniquely quantitative study based exclusively on the balance sheets data that neglect other important economic factors.,Public policies could use this study for better intervention decisions in support of agricultural and agro-industrial activities. Credit policy above all should consider the results of this research, requesting urgent consideration of possible capitalization warranting the access to regulated financial markets. Besides, internal management may compare company outcomes with average sector outcomes to identify improvement prospects. These kinds of studies are advisable for education and training.,The careful economic and financial analysis of the sector favors the relaunching strategies of the Italian wineries in which many employees work. Supporting companies favors employment, constant incomes for workers’ families along the entire supply chain, from the production of grapes to consumption. A solid sector guarantees development and social and economic well-being.,The study contributes to the literature by providing a quantitative method of analysis of the sector, through the comparative information taken from the balance sheets. Therefore, it expands managerial and accounting knowledge on an important sector for the Italian and world economy.

10 citations

Journal ArticleDOI
TL;DR: In this paper, a systematic literature review (SLR) was conducted to identify the main firm-level performance indicators and group them in dimensions that support decision-making in the wine industry.
Abstract: The purpose of this paper is to conduct a systematic literature review (SLR) to identify the main firm-level performance indicators and group them in dimensions that support decision-making in the wine industry.,To achieve this goal, an SLR approach was conducted in the Scopus database from 2009 to 2019. From a set of 607 articles, only 25 studies related to firm-level performance indicators were considered and, following an inductive thematic analysis and an interpretative synthesis, separated into different specific foci that include social, economic and environmental dimensions.,There is a limited number of papers identifying indicators regarding the firm-level performance of wine firms, and even fewer studies including indicators on an integrated approach to measure the different dimensions of firm performance. This paper documents that economic and environmental indicators cover 78.2% of all SLR indicators analyzed. As this group of indicators is limited to a set of sub-dimensions, this paper found that several groups of indicators are misrepresented, such as product portfolio or certifications related to marketing activities and indicators covering purchasing and supply chain activities, which play a crucial role in the competitiveness of the wine industry.,For practitioners, it discloses the most pertinent indicators they need to improve to craft their business strategies. This framework is of added value for policymakers to customize their support programs for specific producers to develop their competitive strategies. It could be deployed in teaching programs as a tool to address the importance of aligning different types of indicators to achieve firm-level performance in the wine industry.,This study contributes to the literature identifying a framework of analysis that includes indicators of four dimensions, namely, economic, social, territorial and environmental. This framework aims to relate performance measures to corporate strategy as a management control tool. The framework intends to improve the fit between firms’ activities and their competitive context and to be flexibly adapted to various products/firms in the wine industry.

6 citations

Journal ArticleDOI
TL;DR: In this paper, the authors applied a three-stage approach to explore productivity, efficiency, and profitability changes in winemaking in the recent decade, and found that despite the efficiency crisis in Ukrainian wine making, the positive contribution of technological progress provided its productivity growth.
Abstract: The purpose of this paper is to find how much the efficiency of winemaking has changed since the crisis of 2008 and what are the main determinants of winemaking performance in the recent decade.,This study applied a three-stage approach to explore productivity, efficiency and profitability changes. At the first stage of the empirical study, the Malmquist Total Factor Productivity indexes based on the data envelopment analysis are used to reveal tendencies of wineries’ productivity and the reasons for its changes. At the second stage, productivity indexes were used to find out the main exogenous and endogenous factors. At the final stage, the profitability change after the crisis in the context of the wine types and a size of wineries is explored.,The main trends and factors of winemaking performance after 2008 were defined. It was found that a crisis in winemaking in Ukraine has been going on for almost decade with the greatest failure in 2014 that led to the falling overall efficiency. This failure was caused mainly by the military and political factors regarding the annexation of Crimea by Russia, the changes in consumer behaviour with a tendency to reduce overall alcohol consumption, and the government regulation increased excise duties on wines. Despite the efficiency crisis in Ukrainian winemaking, the positive contribution of technological progress provides its productivity growth. The small- and medium-sized enterprises in winemaking have a high resistance to the crisis and fiscal pressure. Despite it losing a half of value-added and being unprofitable, the small wine business has managed to increase the labour and capital productivities and overtake big wine business on these indicators.,This study is limited to one country and the relatively small sample of the wineries. However, it can be a starting point for a series of research on the development of anti-crisis winemaking strategy.,The findings of the study can be helpful for the Ukrainian Government to prevent crisis continuation in the winemaking sector. This case may be instructive for other countries, faced with a protracted crisis of efficiency in winemaking.,This is the first study that examines the winemaking performance and its factors after the world financial crisis, based on the case of Ukraine.

6 citations

References
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Journal ArticleDOI
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Journal ArticleDOI
TL;DR: In this paper, a modified version of DEA based upon comparison of efficient DMUs relative to a reference technology spanned by all other units is developed, which provides a framework for ranking efficient units and facilitates comparison with rankings based on parametric methods.
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Posted Content
01 Jan 2007

1,195 citations