Case Study Assignment 5

Case Study Assignment 5 - Running head: Case Study...

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1 Dustin Taylor Thomas Edison State College BUS-421 Business Policy
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2 Abstract E. & J. Gallo Winery has been in business for over 75 years. It is the largest family-owned winery in the world, producing over 60 brands of assorted alcoholic beverages, and employing over 5,000 people worldwide ("Company fact sheet,"). This case study takes a look at some of the reasons for their success, along with some of the reasons they face harsh criticisms from people that believe some of their products have are socially irresponsible and have no redeeming features. It also offers some recommendations that would allow E. & J. Gallo Winery to continue their current success.
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3 Introduction Do you enjoy an occasional glass of wine? If so, you have something in common with about 1/3 of the United States. Nearly 33 percent of Americans say they drink wine at least once every three months (Penn, 2006). Worldwide, wine consumption was over 26.2 billion liters in 2010 ("Wine consumption to,"). E. & J. Gallo Winery, the second largest winery in the world, plays a big part in supplying products for wine drinkers worldwide. With success also comes criticisms. Many people believe their line of cheap and fortified wines and malt beverages are marketed towards alcoholics. Some believe this contributes to the cycle of alcohol addiction and Importance of Dessert Wines Dessert wines are an extremely important segment to the wine industry. In the 1980's, dessert wines accounted for about 10 percent of wine sales. That number has decreased to about 7 percent in 2005, but that is still a large amount of dessert wine sold annually (Thompson Jr., Strickland III, & Gamble). The products sold in the dessert wine segment don't necessarily conform to Gallo's position of quality, but I don't think that is an important issue. Most people
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This note was uploaded on 08/07/2011 for the course BUS 421 taught by Professor Ness during the Spring '11 term at Edison State College.

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Case Study Assignment 5 - Running head: Case Study...

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