Sales Management 473 Case Analysis for Valley Winery 1. The External Environment Economic: At the end of 2004 the demand for wine and distilled spirits was growing again, the falling dollar was decreasing the threat from imports and, most importantly, this industry seems to have worked through the oversupply of grapes and bulk wine. As the economy goes, so does the wine business, and executives interviewed by WBM said they see the state of the U.S. economy improving, albeit slowly. If there was one item in particular that seemed to worry them, it was the possibility that the economy could falter, dragging down the wine business with it. Natural: Some large wine companies continue to negotiate their way out of contracts with growers, while others are starting to line up new contracts because of a perception that there may soon be the opposite problem: supply shortages. It has been widely reported that more than 100,000 acres of wine grapes were pulled out of the ground in California during 2002 and 2003, which helped balance grape supplies. Competition: As sales an......

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