Brl Hardy

1. What are the specific factors that have contributed to the remarkable success of BRL Hardy following its merger?

No success is result of one factor. It's always a combination of factors that result into success. Following are the factors that can be identified as the contributor of the remarkable success of BRL Hardy following its merger:

a. Concentration on Home Market:

At the time of merger both the companies BRL and Hardy were bleeding financially. Top management set itself to consolidate first in financial terms. Australia also happened to be the place form where vast bulk of the profit was originating. This led BRL Hardy to concentrate on the domestic market to set its financial fundaments correct.

b. Protect the Bulk cask and grow with Branded Bottle:

To hit upon the financial distress that both the companies were facing they devised a balanced strategy. As BRL had the specialization in bulk cask selling of wine as compare to Hardy's competency in selling branded wines, Millar decided to vision the company growth in Hardy mold and to just try and protect the BRL mold. They also understood that Quality is the only savior for the support of brands.

c. First getting the merger efficiency and then implementing new strategy:

Merger was between two completely different companies in terms of their product profile and also in terms of their managerial styles. So to work together for a successful venture it was of prime importance that sufficient amount of concentration should be given to make the merger efficient before launching new strategy

d. Change in company's culture and management style:

In ex-Hardy team, mangers' approach towards coordination was HQ centric. Specially the midline managers and subsidiary mangers. They were mere implementer of strategies rather influencer of strategies.

Millar wanted to change it. He wanted to have more decentralized environment were ideas can flow from all sides. Manager's post was envisioned as entrepreneurial. He wanted 20 decisions to be made by 80% success then 1 or 2 decisions with 100% success.

e. Earn your stripes:

Though Millar vouched for a decentralized environment but at the same time he believed in controlled decentralization. Hence for that he gave freedom to those who proved themselves by doing something considerable. This increased the sense of purpose and motivation in mangers to excel in their respective locations

f. International Relaunch:

While the Initial concentration was the cleanup of domestic operation problems to overcome the financial distress, Millar also appointed Davies is see and device a strategy to consolidate its international position.

Davies