The focus on this case is to evaluate the Opportunity (as in POCD):
Is this a business on the verge of rapid growth and with a huge potential, or is it a doomed venture that should never have started, or is it destined to remain a small entity for many years to come?
Keeping in mind the above, please answer the following: 1. Why do you think Jim is leaving? Jim’s departure was most likely due to the following facts: 1. First Jim had family and a job waiting for him in Canada, where he had an apparently more secure and stable future. 2. Second as stated by Greg, Jim’s job, that majorly consisted of establishing a system capable of managing the financial affairs of the company was mostly and mainly done and he felt that he was perhaps more of a burden than of a contributing partner to the VID, and noticed that the company couldn’t financially withstand four partners. (since the venture was facing a lot of trouble in gathering the money needed, unable to cover their salaries.)
3. And thirdly there is also the matter of compensation ever since Jim’s work at the company didn’t seem to outweigh the potential returns he could be making if he was working in canada.
2. Is the Opportunity Limited or Large? ( at least 3 reasons for any choice you make)
When studied from most aspects it seems like the opportunity of entering the market is large: 1. The competition in the market is weak, 19 of the 700+ wineries are experts in DM. So the company will try to prevent competitors from entering by building brand equity. 2. A market of $533M of revenue is large enough for Vintage Directions to want to go into and the market can even go on growing if the law allows for them to sell wine by direct mail to even more states (beyond the 8 states that they are planning to sell into).
3. The profile of