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The Warsaw Voice » Business » February 23, 2010
Business & Economy
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Successful Strategic Alliances
February 23, 2010   
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Bartosz BoŠko, president of Toorank Polska S.A. talks to Bo┐enna Osucha.

What is the main business of your company?
The distilling industry is a strategic sector for the economy. It generates profits for the national budget in the form of excise tax and value-added tax, especially as Poland ranks fourth in the world in terms of alcohol consumption. It is a sector with tradition. The strength of production plants that have been in business for years and the strong position of international corporations explain why newcomers find it difficult to gain a competitive position on the market.

What is the essence of your innovative approach to management in the distilling business?
In 2010, we implemented our DOM strategy, whose components were used in previous periods of the company's operations to determine an optimal choice of management tools and to gain suitable partners for strategic alliances. DOM stands for Dominuj▒ce Obszary MyÂlenia, or key areas of thinking.

The DOM strategy is concerned with organizational solutions and market activities targeted at management, commerce, marketing, production, quality control and accountancy services.

On the basis of observations of the market environment as well as organizational behaviors, the DOM strategy indicates areas on which the company's individual services focus. In the case of management, the strategy clearly defines the rules of cooperation with strategic alliance partners as well as the method for assessing the achieved results. Marketing and commercial services are focused on precisely defined areas of markets, products and services. Production and quality control services involve activities that give priority treatment to goods/products covered by the strategy.

How were these priority areas defined and what do they involve?
During our 10 years on the market, the company's sales have soared from zero to 10 million euros without any significant marketing expenditure. Over this period of time, we have created the strong premium brand Miodula and have established successful strategic alliances with strong foreign partners such as Hardenberg Wilthen AG, Whyte&Mackay Ltd and STROH Austria.

The DOM strategy is based on an efficient management of strategic ties through the right choice of individual business solutions for each agreement. There are no standard rules of action, so each organization establishing a strategic alliance should work out its own set of operational tools. In the case of Toorank, the priorities cover three areas: (1) profit margin; (2) market development; and (3) brand building for foreign partners in Poland. After a period of dynamic development, the aim of management is to improve the profit margin through the development of selected products on individual markets.

When will you be able to say if the DOM strategy has produced the expected results?
In the first financial year we will be able to assess the profit margin, and the first projects based on the DOM strategy have already been carried out on the domestic market.

Bartosz BoŠko President, Toorank Polska S.A.
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