This assignment requires you to provide a report that provides three concise deliverables. Each should have an allocationof 1000 words, approximately one third, of the total report.

Part 1. A summary, in your own words, of the submitted 2009 Report and the project on which it was based with aparticular emphasis on the Value Chain Analysis.

Part 2. The identification and analysis of the changes to the external environment that may, or have, influenced the valuechain for Australian wine producers over the last six (6) years. Your research does not need to be limited to SouthAustralian wine producers.

Part 3. As the Chief Executive of an Australian wine production company, use your knowledge of value chain managementand the information from Parts 1 and 2 to propose strategies for the next five (5) years that would ensure not only survivalof your enterprise but also increased market share and overall profitability.

The use of value chain costing would be highlyregarded. The report must be written with full academic rigour using Harvard Referencing and with a layout and style appropriate to aprofessional report. 

There is an expectation that a minimum of 10-20 References will be used as a basis for this report.These will include texts, journal articles, industry publications and websites and any other valid academically soundmaterial.

For this particular assignment no Executive Summary is required. The word count starts at an Introduction and concludesat the start of the Reference List. The incorporation of any extra information in Appendices is acceptable if it directly addsto the value of the report. 

The dramatic increase in global competition, growing uncertainty over environmental resource availability and the fragility of the global economy have conspired to draw the attention of international governments, businesses, consumers and citizens to the complex challenge of sustainability. Nowhere is this challenge more evident than in Australia: one of the major wine growing regions of the world, furthest removed from its major markets in Europe and North America, consumed by the worst drought in living memory, yet no less exposed to the growing demands from around the world for more sustainable production systems, more efficient distribution systems and continued innovation in winemaking, to delight wine consumers who have become accustomed to Australian wines that represent great value for money.

Many people within the Australian wine industry recognise the need for change - for greater attention to market requirements (customer needs and consumer wants), more effective sharing of information from grape to glass (to facilitate more accurate forecasting of supply and demand), more efficient distribution (from vineyard to winery to store), and more sustainable use of resources, some of which (i.e. water, labour) are in critically short supply. However, many more are blissfully ignorant or in denial. Yet, time is running out for the Australian wine industry to embrace the challenge of sustainable competitive advantage - this project seeks to provide a much needed catalyst for change.

The primary objective of this project is to explore the value of sustainable value chain analysis (SVCA) as a tool for achieving better alignment between the allocation of resources in the Australian wine industry and consumer preferences in the UK, one of the most important export markets for Australian wine, and environmental management throughout the chain. In so doing, we seek answers to the following questions:

• What is it that UK consumers value in the wine they purchase from supermarkets?
• How efficient is the flow of materials in the wine value chain?
• Which operations create the greatest emissions?
• How effectively does information flow up and down the wine value chain?
• How robust are relationships between the different stakeholders in the wine value chain?
• What opportunities exist for improving the competitiveness and sustainability of the Australian wine value chain?
• What lessons can we learn about sustainable value chain analysis that might benefit other sectors?

The focus on sustainability is motivated, in part, by the increasing demand from South Australia's major export markets for carbon labelling, especially from European food and wine retailers, including Tesco. In addition, the imminent carbon reduction initiatives by global, national and state governments, including taxes, emissions trading, standards, voluntary incentives and related regulations, have far reaching economic and market access implications for all stakeholders in food and wine value chains. Many firms are also interested in the scope for using sustainable production as a source of competitive advantage.