Open AccessThe Effects of Wine Regions on the Profitability of the Hungarian Winers
Author(s) -
Boglárka Szerb,
András Bence Szerb
Publication year - 2020
Publication title -
regional and business studies
Language(s) - English
Resource type - Journals
eISSN - 2732-2726
pISSN - 2061-2311
DOI - 10.33568/rbs.2520
Subject(s) - wine , profitability index , winemaking , business , economies of agglomeration , cluster (spacecraft) , balanced scorecard , marketing , industrial organization , economics , computer science , food science , economic growth , chemistry , finance , programming language
The aim of our research is to analyse the profitability and efficiency performance of different Hungarian wine regions. In our study, we make the initial assumption that wine regions function as a separate agglomeration zone, an industry cluster in the life of wineries. Consequently, it makes sense to evaluate profitability and efficiency not at the corporate level but at the wine region level. In the study, we used the DuPont scorecard system, which is now preferred by companies for planning and control purposes. According to the results of the 2017 large wine test, we divided the Hungarian wine regions into four groups, and in the case of wineries that cannot be classified as wine regions, we created two more groups. Our results are consistent with the theory of agglomeration zones and industrial clusters. In winemaking, it can also be demonstrated that wine regions, which can be considered as a special industrial cluster, have a significant impact on the economic performance of wineries.