Executive summary Majestic wine company is one of the largest and the best retailer of wine especially when it pertains to mixed cases. The company has over 160 stores spread throughout the country. Majestic wine company later on became a public company and it never ceased to grow and expand. There was new production of incredible ranges of wine. Not only was the company based in the United Kingdom but also it has a branch in France.
Introduction The history of the Majestic wine company dates back to 1981. The company initially was located in Wood Green London were it began as a single wine store. The number of the wine store later on increased from one to thirty. The growth and development of the company was attributed to change of management in 1990s. Change of management not only propelled it growth and expansion but also transforming the company to become a public company in 1996. Since its inception, the Majestic wine company has opened up approximately 150 stores throughout the United Kingdom and three more stores in France.
The efforts of the Majestic wine company of introducing a wide range of incredible wine did not go unnoticed as they were rewarded with the wine merchant of the year award. In 2000, the company launched its website so as to establish its online presence (Majestic Wine Company History, 2011, par 1). Findings Technology as a pestle factor Technology is the hot topic in the modern world as it has been embraced in both the business and social world. Enhancements of technology in both the communication and business industry have enabled sales people to work effectively in both urban and remote areas. Most of the time technology has had a major impact in than the rest of the pestle factors.
Incorporation of technology in the Majestic wine company has enabled the company to expand its market globally. Staff members of the Majestic wine company do not actually need to physically work together to achieve the company’s goals as they can be connected from different locations using the advanced technology of internet (Elearn Limited and Pergamon Flexible Learning, 2005, p. 14) Introducing new technology in the Majestic wine company will assist in developing and production of new products that will be used to elevate the company high above its competitors. In addition to this, the management team of the Majestic wine company may also use the ever-advancing technology to market the already existing products to new markets. By use of technology, the company will not only be expanding its market but also getting customer response on their products (Elearn Limited and Pergamon Flexible Learning, 2005, p.
15). According to Borgmann, technologically transformed wine is described as a wine whose taste is “pleasantly grapey, smooth, light, fruity, and soft.” In terms of appearance Borgmann, goes on to say that technologically transformedwine should not only be clear and clean but sediment free. Technologically transformed wine is said to offer pleasant surprises, its commodious and less fatiguing while drinking. In addition to this kind of wine is easily affordable and one of its major qualities is that it blends with raw materials from various places.
In comparison to the traditional wine, the technological wine is said to offer more assurance than the traditional wine (Borgmann, 1984, p. 49). Modern science is one of the essential ingredients in the advancement of technology. This applies also in the case of wines. Science plays a great role in the insight of chemical substances effects and physical processes that pertains to appearance and taste of the wine (Borgmann, 1984, p.
50). Stakeholder’s treatment In the website of the Majestic wine company, shareholders are offered professional advice on matters relating to their investments in the company. In a case example, the company advises its shareholders not accept dubious deals from overseas brokers, which are worthless in terms of investments. These brokers have been described as persistent as which leads loss of thousands of dollars by the shareholders as indicated by the Financial Service Authority report. In regards to these solicitations of the shareholders the advice their shareholders to be cautious while trading their shares (Investor information, n.d, par 1).
According to the interim report of 2010-2011, the company announced a 17.9% increase on the interim dividend. Increase of dividend to the shareholders indicates the high regards the shareholders are upheld with and the ever-continuing growth of the company. Increase in dividends also indicates a brighter future to the company as more and more investors will be willing to invest in the company (Interim Report and Accounts 2010, 2010, p. 5).According to Weiss, stakeholders of a business provide a means of achieving a win-win situation.
Collaborative measures and communication are the attributes used in achieving the win- win situation. As a stakeholder the relationship may be complex thus learning from past mistakes is of essence in order to achieve a more collaborative and responsible future outcome within the business (Weiss, 2009, p. 23). As multinational company the Majestic wine company must achieve monitoring and certification which means that the company will be communicating to its stakeholders annually about the progress of its operations. In complying with these codes, Majestic wine company will undertake inspections, audits, and surveys (Dooley and Garcia, p.
376). Training and education are also some of the measures undertaken by the by multinational companies in order to attain minimum social standards. In addition to this, the successful initiatives initiated in the company will ensure environmental standards are met (Dooley and Garcia, p. 376). Competition The wine industry in the UK has faced stiff competition from other alcoholic beverages e.g.
the spirits. This increased competition has resulted to a shift from wine drinking to single served beverages by the marginal wine drinkers especially in public places. Increase in competition has been is also high in the targeting of the female market as more women have acquired jobs thus having a large amount of disposable income (Anderson, 2004, p. 138). In the London Evening Standard of 2008, it was indicated that the Majestic wine company faced its fierce competition rivalry from the supermarkets (London Evening Standard, 2008, par 1).
Off-license retailers are also some of the main rivals of the Majestic wine company. Over the years, the supermarkets have continuously being increasing their stock market of wine. This increase is attributed to decrease in numbers of their competitors the off-license chains. The trends of strength and weakness of the supermarkets has enabled them to become the main rivalry in terms of competition. The national supermarket chains are one of the main rival competitors of the Majestic wine company.
Its competition strategies have been enhanced by the fact that they are strategically located in all High streets and within smaller towns. Not only do the national supermarkets stock wine, but also food stuff that rhyme together with the wine hence giving them a better competitive edge. Majestic wine company on the other hand is operational and dedicated to the selling of wine. This results to inner growth of strength by the company, which results to dedicated stocking, and retailing of wine. In addition to this, the employees are trained in the various sectors of wine retailing and the company stocks different types of wine to keep up with the competition.
Despite the measures undertaken, competition from supermarkets and lack of strategically placed outlets results to less footfalls and high overheads (Majestic wine PLC, N.d). Conclusion Majestic wine company is one of the biggest chain store company that started a single chain store and later on spread throughout the United Kingdom to reach approximately 150 stores. The company later on became a public company in 1996 and launched its website in 2000. In 2007, it achieved 15 million pounds in terms of sales and three years later, it was awarded with High street chain of the year and Merchant of the year awards.
The company faces stiff competition from supermarkets that stock both the wine and foodstuffs that complement each other hence increasing the levels of competition. Recommendations The company should use its weaknesses to its advantage. In case of the strategically placed supermarkets, the company can counter this by using its financial muscles in purchasing and investing intensively. In addition to this, the company should take its products closer to its consumer by enhancing the already initiative of product delivery to customers and the friendly measures of building customer loyalty.