Case Study, Porter's Diamond Model - Op

OPERATIONS ASSIGMENT
Anna Jessica- 66
Gauree Rajpurkar- 77
Suraj Mishra- 91
Ritika Nayak- 98
Arnav Shetty- 110
Tulsi Wadhwani- 117
FACTOR RATING
S.NO Factors Factor Rating Location Rating (Nashik) Location
Rating (Pune)
1 Labour and Wages 6 8 5
2 Proximity to customers 5 6 8
3 Availability and cost of Land 7 9 6
4 Adequacy of Water 8 9 7
5 Receptivity of Community 5 7 7
6 Quality of Soil for Vineyard 9 9 8
7 Access to rail and road transport 5 6 9
8 Suitability of climate 10 10 9
9 Availability of Power 7 7 9
10 Tax Advantage 3 2 2
Factor Rating (Nashik) Factor Rating (Pune)

48 30
30 40
63 42
72 56
35 35
81 72
30 45
100 90
49 63
6 6
514 479
Since, Factor Rating for Nashik is better as compared to Pune it is better to

have the vineyard location in Nashik.
Break Even Analysis
Nashik Pune
FC (Rs) 20 cr FC (Rs) 19 cr
VC/unit (Rs) 30 VC/unit (Rs) 40
Break Even Analysis – FC + (VC × Q) = SP × Q

Nashik Pune
20,00,00,000+30Q = 400Q 19,00,00,000 + 40Q = 350Q
20,00,00,000 = 370Q 19,00,00,000 = 310Q
Q = 5,40,541 units Q = 6,12,903 units
Since, the number of units required to achieve break even analysis is less in Nashik. Nashik
will become profitable earlier as compared to Pune.
 FC- Factor Cost

 VC - Variable Cost
 SP – Selling Cost
 Q- Quantity
Porter’s Diamond Model
1. Firm’s strategy, structure, and rivalry –

The strategy and organisational design of a firm have a significant impact on
how successful a corporation can be. It is a macro study of how the firm is run.
Understanding the structure and strategies of the sector is crucial. It's also
crucial to analyse competitors. Mr. Zen has identified three areas in India
where wine can be produced: the southern region, which includes Goa, the
Kaveri Hills, and the Nandi Hills; the northern and north-eastern regions, which
include Himachal Pradesh and Champai; and the western region, which
includes Nashik and Pune. After examining these three locales, he discovered
that the other wine producers produce their wine in Nashik and Pune,
therefore he made the decision to choose one of these two locations in order
to compete with the other producers.
2. Demand conditions –
The demand condition, as described by Porter's model, is more drawn to
domestic demand situations than to those in international markets. According
to Mr. Zen's research, India has 485 million users who are older than the legal
drinking age, which varies by state and ranges from 18 to 25 years. Mumbai,
Delhi, Bangalore, Pune, and Hyderabad are the states with the greatest
consumption rates. After conducting this analysis, Mr. Zen made the decision
to establish an industry in India in order to increase competition and meet this
demand.
3. Related and supporting industries –

The production and marketing aspects of this model are highlighted. Within
the previous ten years, this industry has experienced substantial growth, with
major wineries business houses acquiring smaller companies in several states
to reduce taxes and account for state tax disparities. To help the larger
wineries become more commercially viable and to promote the marketing and
branding of their products, the smaller players have also started supplying
them with raw grapes. The wine industry in India is being developed by a
number of well-known businesses, including Sula Vineyards, Grover Zampa
Vineyards, Vallonne Vineyards, and many others. The Indian government has
also undertaken a number of steps to encourage contract farming and
promote the grape, apple, plum, apricot, and wine industries in India, much
like how The National Wine Board encourages growers of grapes, apples,
plums, and apricots as well as producers of raisins, juice, and wine.
4. Factor conditions –
India's varied environment permits the growth of a number of grapes for wine,
including Wine grapes like Syrah, Cabernet Sauvignon, Merlot, Chardonnay,
Sauvignon Blanc, Zinfandel, Shiraz, and Chenin Blanc are imported by
Anabeshahi, Arkavati, and Arkashyam. The state of Maharashtra is situated
between the Arabian Sea on one side and the range of Western Ghats on the
other, and out of the three regions that Mr. Zen identified, he decided to set
up his vineyard in Nashik or Pune because those two areas were offering the
most suitable climatic conditions for the process. After taking into account all
the costs and factors involved, he chose Nashik as the location for setting up
winery and vineyard industry.

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OPERATIONS ASSIGMENT

Factor Rating (Nashik) Factor Rating (Pune)

Since, Factor Rating for Nashik is better as compared to Pune it is better to

Break Even Analysis – FC + (VC × Q) = SP × Q

 FC- Factor Cost

1. Firm’s strategy, structure, and rivalry –

3. Related and supporting industries –

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