Question

This is for Business Ethics

17-8a Questions for Discussion

1. Analyze the strengths and weaknesses of the Belle Meade strategy and implementation of its nonprofit winery.

2. Given the success of the current Belle Meade Winery, how can Belle Meade effectively address the challenges facing the winery for future growth?

3. Understanding the success of the Belle Meade Winery, what could other nonprofit organizations learn to create social entrepreneurship ventures to sustain their operations?

Answer 1

Ans 1: Belle Meade strives to maintain its historical and educational heritage. Through themed tours of the home, stables, root cellar, creamery, and other buildings, Belle Meade supplements and intertwines other aspects of money making a possibility. In addition to wines, the plantation offers a restaurant experience and confections to complement a tasting. Culinary experiences abound with curated wine selections for higher-paying guests. Through a knowledgeable staff, Belle Meade bottles wine and educates its patrons at the same time. Event hosting, such as Jazz on the Lawn, gives Belle Meade the opportunity to showcase their wines without extra marketing efforts. To date, their advertising efforts include only their website, tourists, local media, social media, and word of mouth. Two Groupon and LivingSocial promotions together sold over 2,300 tickets, bringing over 4,600 patrons through Belle Meade. Partnerships with local restaurants to sell Belle Meade wine exclusively spread the winery’s name further than the property lines. In addition, online sales are available in over 15 states. With revenues coming in through ticket sales, event hosting, donations, gift shop sales, and other food items, Belle Meade is on track to sustain a very successful social entrepreneurship. However, Belle Meade isn’t fully utilizing all of its avenues for profitability and growth. For example, Belle Meade’s restaurant isn’t wholly owned and isn’t required to serve Belle Meade wines as their exclusive alcoholic beverage. The same practice could be used for other things like festivals and weddings on the property. With proper management of Belle Meade’s features, inquiries after hosting events will continue to grow despite the restriction. Though BelleMeade faces growth issues in the future, it is not yet available online in all states. It is possible that logistics don’t yet allow this to be profitable, but it is an avenue Belle Meade could adopt in the future. With mobile bottling equipment, they could produce more wine faster. The limitations on storage affect their ability to grow; however, creating avenues for further distribution can reduce warehousing costs and require less backstock to remain viable. Finally, Belle Meade’s staffing issues may be at the heart of some of their struggles. With a well-led team, it’s possible that a creative solution for growth issues may arise. Volunteers are difficult to lead, though, so Belle Meade must either attempt to restructure their employment structure or make their employment offers more tempting.

Ans 2: With current liquor laws requiring production and selling in one place, Belle Meade is faced with a tough challenge. With enough charisma, it is possible Belle Meade could lobby politicians to change the law, but this would take time, money, effort, and luck Belle Meade may not possess. The most effective way to change it would be by overwhelming opposition, usually in the form of industry petitioning. To do this, Belle Meade would have to reduce barriers to entry for competitors, which is not in its best interest in the long run. For now, Belle Meade will have to create another innovative solution to on-site storage such as underground cellars, new building construction, or renovation of existing buildings. New entry rivals bear a challenge to Belle Meade. By establishing a sound business plan, a stellar image, profitability, and continuously improving both value chain and marketing avenues, Belle Meade will be considered Nashville’s most respected and sought-after winery. With that growing popularity, Belle Meade must keep up staffing abilities. The turnover reduction should become a top priority, allowing employees space to blossom in their personal careers and room for advancement. With these changes, increases in corporate and individual donations, grants, and government funding should follow, since Belle Meade could be considered the most well-established non-profit of its kind in the area.

Finally, Belle Meade must cut costs and maximize the potential of everything and everyone it already has. Creating more fruit wines may save land space. Eliminating waste and underwriting fewer free trips can help push Belle Meade over the edge to reaching its growth goals. There is certainly a trade-off, however. Belle Meade will have to decide what manageable growth or exponential growth fits its company values and mission best.

Ans 3: Nonprofit organizations could focus on cost-cutting by eliminating waste. These organizations could also focus on developing a better fundraising setup. For example, hosting special event and promoting the benefits of the organizations. Developing a way to generate funds internally. Focusing on the social value of a company in order to engulf the organization in the social entrepreneurship. These are just a few options that could help non-profit organizations advance.