Noy Wine and brandy Factory was established in 1877 by Nerse

STAKEHOLDERS

Owner:

• "Multi Group" Concern since 2002

Customers:

• 7%-shops, supermarkets, hotels, restaurants, and the like in Armenia
• 93%-exported from which 95% to Russia

Suppliers:

• Farmers: grapes
• France, Italy, Ukraine: bottles, taps, covers, etc.

Competitors:

• Not many competitors in its target market
• Lots of substitutes
• Counterfeits

AMERICAN UNIVERSITY OF ARMENIA

MANAGING PEOPLE AND ORGANIZATIONS

Noy Wine and Brandy Factory

External Environment

and

Organizational Structure

Instructor: Mane Beglaryan

Group Members: Emma Makaryan

Garo Deryeghyayan

Svetlana Avetisyan

Elen Gevorgyan

Marine Khachatryan

ECONOMIC ENVIRONMENT

• In 2010 the share of Armenia in world's exports comprised 2.8%

• The share of brandy in total Armenian exports was 9.4%

• The two biggest areas of concern for Brandy Manufacturing sector are the QUALITY CONTROL and the DISTRIBUTION SALES

POLITICAL - LEGAL ENVIRONMENT

• Yerevan Ararat Brandy-Wine-Vodka Factory is an OJSC
• Armenian tax legislation obliges the company to pay
• 20% value added tax
• 20% profit tax
• 24.4-36% income tax depending on the salary
• The company imports materials for the production and pays import taxes, while 93% of its finished products are exported
• It is anticipated that entering the Customs Union will have a positive impact on company, as its major partners are from Belarus and Russia

• To insure high quality standards Noy Brandy Factory applies international quality standards, such as ISO 9001, ISO 14000, ISO 22000 and Jewish KOSHER quality certification

• 95% of exports of Noy Brandy Factory goes to Russia

SOCIO - CULTURAL ENVIRONMENT

TECHNOLOGICAL ENVIRONMENT

• Technology plays a great role in the production process: preserving the old traditions and

• The demand of the product does not fluctuate, as brandy is not a product of every day consumption

• Noy Wine and Brandy Factory uses new technologies for processing the grapes for the brandy production

• The company takes care of its farmers, providing them with health services and equipment for grape growth

• They have highly equipped laboratory for testing the product quality

To be continued...

• Noy Wine and brandy Factory was established in 1877

by Nerses Tairyan

• In 1898 Nerses Tairyan leased the factory to Nikolay

Shustov

• Nicolay Shustov held 80% of brandy-wine-vodka-liqueur

production in Russian Empire

• "The secret of long life is in Cuban Cigars, Armenian

Brandy and no sport" Winston Churchill

• The company operates in Armenia and Russia