The Importance of Non-Financial Performance Measures in Wine Business Strategy

Linda Nowak, Assistant Professor of Marketing

Sherri Anderson, Professor of Accounting

ABSTRACT: This article explores the importance, measurement, and use of non-financial performance measures in the wine industry. Results are compared to a similar study done on U.S. Fortune 500 and Canadian Post 300 companies. Findings indicate that a large percentage of U.S. wineries believe in the importance of non-financial performance measures, especially in the areas of process/product quality and overall customer satisfaction. On average, less than half the wineries are actually measuring for these factors. Also, while some wineries measure non-financial performance, they then do not use the results of their findings in making strategic business decisions.The wineries differed from the Fortune 500 and Post 300 companies in that they ranked the measurement of employee involvement much higher in importance and market performance measurement much lower in importance.

Note: This article will be published in the upcoming issue of the International Journal of Wine Marketing. Due to the journal’s copyright protection agreement with the authors, the complete article cannot be published on this website.For a copy of the article, contact either Sherri Anderson (Sherri.Anderson@sonoma.edu) or Linda Nowak (Linda.Nowak@sonoma.edu) or the journal.