Subject Small and Medium Enterprise (SME)

Presentation Topic
Case study of a successful SME

Presented to

Sir Yasir Aftab Farooqi

Presented By
Name Waqas Ahmed Umme-e-Hani Hina Sobia Murtaza Shehzada Kashif Roll No. 08010626-045 08010626-001 08010626-020 08010626-015

Name of Enterprise

Robert Mondavi Corporation

Waqas Ahmed 08010626-045

Company History
Robert Mondavi Corporation was founded by Robert Mondavi in 1966. Robert Mondavi Corporation, with its family of Robert Mondavi wineries, is one of the United States' premier winemakers and has done much to bring the Napa Valley region to the forefront of international winemaking.

Company History
Company is producing premium wines, includes the brands Robert Mondavi, Woodbridge by Robert Mondavi, Vichon, Robert Mondavi Coastal, etc. Company has a joint venture with Australian winery Estates and with the Baron Philippe de Rothschild wine family, Since 1979. The Corporation went public in 1993, Mondavi family controls 92 percent of voting stock.

Company History
Robert Mondavi's oldest son, Michael, is president and CEO, and his youngest son, Tim, is managing director and winemaker. The company sells about 10 million cases of wine per year, with Woodbridge as its topselling label. In 2001, the company earned $481 million in revenues and distributed wine in more than 80 countries.

Umme-e-Hani Hina 08010626-001

History of Robert Mondani

Robert Mondavi was born in June 18, 1913, to poor parents who had emigrated from Italy. Roberts mother was an especially talented cook, and wine was part of daily meals. In 1921, Robert's father decided to get into the grape business, and two years later the family moved to California which was the grape capital at the time.

History of Robert Mondani

After working for his father, Mondavi graduated from Stanford University in 1937 with a degree in economics and business administration. By the 1930s, Robert became more interested in fine wines from Napa Valley, and he eventually worked at Sunny St. Helena Winery. In 1943, he learned that the famous Krug Winery in St. Helena was for sale and convinced his father to buy it.

History of Robert Mondani

As Mondavis moved to Napa, and Cesare, Robert and Robert's younger brother, Peter, ran the winery. But there were disagreements about how the winery should be run, and after Cesare's death, Robert and Peter clashed. One day, they ended up in a fistfight, and Robert was asked to leave the family business.

History of Robert Mondani

In 1966, at the age of 53, he started Robert Mondavi Winery, building the first new winery in Napa. Mondavi was born into the wine business and by genes or training developed an intensity to compete and succeed in that business. His education and training helped him apply business thinking. He was married in 1955 in Palm Springs, California.

Sobia Murtaza 08010626-020

How he Began His Own Business

As he was the son of poor parents it was very difficult for him to manage resources to start his own business but his vision was to create wine in California that could successfully compete with the greatest wine of the world He used his personal savings and loans from friends to start his own business

How he Began His Own Business

So Robert Mondavi started his business in 1966 with his eldest son Micheal Mondavi. In order to achieve his objective he believed that he needed to build a Robert Mondavi Brand in the premium market segment. This resulted in the initial production of the limited quantity of the premium wines using the best grapes.

How he Began His Own Business

Robert Mondavis this strategy resulted in the highest price in the market and had the highest profit margins too. He soon realized that his this strategy , while establishing the brands, did not allow the company to generate enough cash flows to expand the business.

How he Began His Own Business

In order to solve this problem Robert decided to produce less expensive wines that he could sell in higher volume. He dedicated time and effort to finding the best vineyards in Napa valley for the companys production of grapes. He also signed long-term contracts with growers in Napa Valley and worked closely with each grower to improve grape quality.

How he Began His Own Business

Robert Mondavi built a state-of-the-art winery that became a premium wine-making facility as well as conveying a unique sense of Mondavi wines to the visitors. After establishing the standard in the wine industry, new winery became a place where the company established the best production of premium.

Shehzada Kashif
08010626-015

Mondavi Wines Gain Success

Mondavis company created process innovations such as steel fermentations tanks, vacuum corking of bottles etc.
He worked very hard and travelled to reputed five star restaurants, and top wine shops across the country.

Mondavi Wines Gain Success

Mondavi's reputation grew, the stylish Mondavi winery became important for visitors to Napa. Its educational tours and tastings, art shows and summer concert series became a focal point for many tourists. Mondavi "understood the need for education about wine, Napa Valley wine and California wine.

Mondavi Wines Gain Success

He added, "The programs comparative tastings, harvest seminars, summer concerts, the mission program, all had the sole purpose of explaining wine's positive values to the public and to the industry he served. Mondavi's wine enjoyed considerable success during the 1970s. In 1972 when Mondavi wines were distributed nationwide. Two years later, Mondavi began exporting.

Financial Difficulties Faced

In the early 1990s he faced financial difficulties as a result of rapid expansion and increased competition. So he decided to raise enough capital to continue expansion of his company while maintaining family control of the company. On June 10,1993, Robert Mondavi issued 3.7 million shares of stock at $13.50 a share and began smooth trading.

Company Today
Today, the company continue to pursue its goals around the world with its unique culture, innovative spirit and its consistent growth strategy, reaching revenue of $481 million in 2001 and distributed wine in more than 80 countries. Robert Mondavi has been a major force in leading the U.S. wine industry and has devoted his life to creating a fine wine culture in America

Mondavis lifetime achievements

1966 Founded the Robert Mondavi Winery; 1982 Winemaker of the Year American Wine Society; 1986 Man of the Year Wines and Vines magazine; 1993 Honorary Master of Wine Institute of Masters of Wine;

Mondavis lifetime achievements

1996 Torch Bearer International Olympic Committee; 1997 Recipient of the first ever California State Fair Lifetime Achievement Award, and the Business Leader of the Year award from the Harvard Business School Association of Northern California; 1998 European Wine Council's Lifetime Achievement Award;