Performance Measurement Analysis

Performance Measurement Analysis
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Institution
Changyu Pioneer Wine Company
Changyu Pioneer Wine Company is China’s biggest and oldest wine producer Inc. located in Shandong Province, Northern China. Zhang Bishi founded Changyu winery business in 1892. Changyu Pioneer Wine Co. is named after Zhang (Chang) the founder symbolizing Chinese trait of prosperity. Changyu Pioneer Wine Co. ranks 10th among the largest wine producing companies in the world with an annual average wine production of 9 million tones. Changyu has grown immensely in the production and marketing of sparkling and brandy wines, all aligned to the company’s goal of expanding its wine product range (Campbel & Lane, 2013).
While the position of China as a wine producing country is associated to Changyu Pioneer Co., the history of Chinese grape vines goes back to more than 4000 years ago. Archaeological studies carried by joint American-Chinese research institutes in 1995, revealed remains, and artifacts that alluded to the presence of winery activities in ancient years. The resources recovered included ancient pot artifacts and remnants of alcoholic drinks that included more grape related products than any other beverage. From that simple background of personal brewing when it came to the winery, China now boasts of massive export revenue when it comes to this business of wines.
China’s total wine production in 2004 was 370, 000 tonnes, a 15% increase from 2003 a year earlier. The total wine market grew by 58% between 1998 and 2004, and 68% between 2006 and 2013. Notable wine-producing regions in China include Yantai, Yibin Sichuan, Zhangjiakou Hebei, Taiyuan Shanxi, Beijing, Tonghua Jilin and Ningxia. The largest wine producing region among these regions is Yantai-Penglai, with over 145 wineries producing 40% of the total wine production in China. With reference to the ‘China Alcoholic Drinks Industry Association’, four domestic wineries represent 52.5 % of total wine production in China (Barney and Hesterly 2009) with Changyu, Great Wall, and Dynast being the top three respectively.
Changyu Wine operates in a mature environment with competition coming from Great Wall and Dynast wineries. This is an implication that modern marketing strategies have to be adopted to ensure success. Traditionally, Wine production companies in China focused on short-term productivity and the domestic market which has always been commendable to the high consumption level of wine in China. However, as competition became more intense with new entrants in the wine industry increasing rapidly new strategies in marketing, brand name and customer service became a necessity for the wine companies in China (Campbel & Lane, 2013). Under this context, this paper seeks to analyse Changyu Wine Company performance measures strategic choices, the performance measures alignment, quality tools, techniques, and standards used by the company in the in ...