Intercultural Management - case of Bodega Torres

Thèmes abordés

Bodegas Torres, case study, intercultural management, diversity, cross cultural values, sociology

Résumé du document

Intercultural Management covers a very large sample of activities related to companies. Its tools can be used in all areas of management, including Communication, Human Resources, Marketing, Negotiation and Top Management. It allows us to easily recognize the different cultures surrounding us inside a company, as well as to integrate some important values. These values will help creating a synergy between the company and the cultural aspects around its activity, which represents a decisive aspect of any strategy.

In an international context, including intercultural management provides creativity but also flexibility and awareness to the company strategy. With globalization and research of performance as main concerns nowadays, intercultural management is a necessity to valorize assets. Cultural diversity then becomes a real strength that company can capitalize on.

Actually, not implementing multicultural management can be dangerous nowadays. A few issues can be avoided through diversification, for instance, turnover, interpersonal conflicts, total absence of communication. As the share of knowledge becomes more
and more important, companies might want to invest and re-orient strategy on a multi-cultural model, as a proof of great reactivity and modernity.

Bodegas Torres, the company that I will study in this case, is a Spanish company started in 1870 as a traditional and familial business. Today, Bodegas Torres is still active, but the world and the market of their activity have extremely changed. Wine production is a very globalized market, where they need to adapt and merchandise their family values in order to grow.

We will explore Bodegas Torres' management and strategy, and try to get more into multicultural management, in order to analyze its success.

Extraits

[...] who transitioned smoothly from a traditional organization to a modern advanced organization, has kept this state of mind. He used his knowledge in modern sciences while considering the traditional values, and never turned his back on them. By operating without drastic changes, he shaped the company the way he wanted, and the changes happened effectively. Change in Model: Evolution Through Strategy After Miguel A. Torres took over his dad in 1993, Bodegas Torres changed its management. These changes occurred in policies, strategy, structure and organization. From now on, the 3 children would share the companies. [...]

[...] CEO a Model for Multicultural Management Earlier we saw that Multicultural Management often needs a model, especially in a country like Spain, where uncertainty avoidance is high and people need a model to identify to in order to feel comfortable. The CEO is often a strong model, especially in this culture. He represents authority, which means responsibility, but also acquired power. In a country that values traditional policies, a CEO who is the heir of the founder is a very good symbol. Miguel Augustin Torres, actual CEO since 1991, is named after his father, Don Miguel Torres, and is the fourth generation heir of the founders. [...]

[...] The knowledge comes from Bodegas Torres but also implements American techniques. Chile wine is produced on the land bought buy don Miguel Torres in 1979. The wine produced there is high quality with middle range price, thanks to effective cost savings relative to production in Chile. The production is cheapest there, and the products are sold at high prices, making the company rentable. Chinese wine is one of the new acquisitions. It concerns low quality and prices, responding to a Chinese demand. However the production is meant to be massive. [...]

[...] The company only hires 55 employees, but the production in 1993 was over 600 million bottles. Since 1993, the company is run by Juan Campas, who is an executive external from the family, and represents the new generation of qualified executives who are now in Bodegas Torres. Marimar Estate is owned by Marimar Torres, the sister of Miguel A. Created in 1986, Marimar Estate consists in a vineyard in California that possesses a very important density. The vines production are there 4 times bigger than the usual Californian density. [...]

[...] Away from the traditional and classic customers, these targets are significant incomes for consumption goods retailers. As a modern company, Bodegas Torres increased its commercialization and distribution channels, in order to develop to a new bigger scale. As an internal development, Bodegas Torres chose an integrative approach, significant of risk taking and seizing opportunities to grow. They invested in many lands to get rid of third parties and produce their own grapes. A last major change was the growth of the Research & Development. [...]