To begin with, Paul Sr. contends that making his own grapes is the genesis to quality wine and also to business success. This is the core reason 70% of all grapes crushed at the winery is grown under the supervision of the company. Another belief held by Paul Sr. is that customers should always pay relative to the quality of wine they purchase. Hence, the company would never charge exponentially for wine that does not match the price. The Boscs also view wine making as a lifestyle and hence strive to form close ties with clients.
This approach to business is very influential when it comes to making the decision since it might be the same approach adopted if the chateau is built. In this regard, it is appropriate to assess whether CdC’s business strategy is applicable in such a setup. Having CdC’s business strategy applicable in a chateau means that the construction of the new premises is supported by the business strategy in use.
The external environment for CdC is very influential to the overall performance of the winery. The Liquor Control Board of Ontario (LCBO) is one of the political influences that impact the operation of the company. The board is responsible for distributing most of the wine in the region and which all makers fall below. In many ways, the board is a controller of alcohol consumption in the region. Its lack of vulnerability from manipulation by wineries such as CdC means that the quest to upscale by the organisation is impeded.
Although the revenues amassed in the wine business were surging, the amount of wine consumption was lessening over the last year. This is partly attributed to the economic recession that is being experienced in the region. This means that fewer people were taking wine and that the efforts by CdC to double its capacity may have come at an inappropriate timing. This is the economics bit of the external environment. However, it does not back the views of Paul Sr. However, the venture is aimed at amassing revenues from different sources.