...and they are shorthanded on developers. The company is confronted with two major alternatives (1) Stay with their current business model or (2) Create a different business model in order to not only stay on business but to compete and regain the members both individuals and wineries that they have lost to their competitors. Situation Analysis Since Cork’d inception in February 2006, the company was designed for and by wine lovers. Time showed that this industry had such a demand that needed more dedication and that is when Gary Vaynerchuck bought the company. He, then later appointed CEO, Lindsay Ronga to run the company. Under the new administration, individuals could register for free; however, the main source of income came from the $999 winery annual signup fees. There is brief mention of other source of revenue, which are the commissions Cork’d receives for outbound clicks to an external third-party site that sold wines. Being that their business model did not utilized any other type of strategy to attract customers (wineries and individuals) not even through web advertisements, Cork’d was constrain to their sole revenue source. After the re-launched of the new and improved website, 42 wineries signed up, as previously mentioned at $999 each. However, this amount of money ($41,958) was not going to be able to cover for their expenses as follow described: • Labor costs - Lindsay Ronga – CEO - Harvard MBA - Full-time CTO - Five summer interns • Other costs...
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...distribution channels. These developments were occurring in an environment of rapidly growing demand from new consumers in nontraditional markets. BRLH’s roots could be traced back to 1853 when Thomas Hardy, a 23-year-old English vineyard laborer, acquired land and planted it with vines. In 1857 he produced his first vintage, exporting two hogsheads to England, and by 1882 he had won his first international gold medal at Bordeaux. When Hardy died in 1912, his company was Australia’s largest winemaker, but also one of the most respected. After his death his sons took over the company and formed Australia’s first cooperative winery in 1916, naming it the Renmano Wine Cooperative. With the success and the development in the market Hardy felt they need to expand on its UK sales. This move led management to begin talking about the possibility of buying European wineries that could provide their newly acquired distributors with the critical mass and credibility to give Hardy’s wines greater access to Europe. Hardy’s board felt this was an ideal time to invest. Almost immediately, however, problems surfaced in all three of the European acquisitions and millions of dollars. Combined with a recession driven market slowdown at home, these problems plunged Hardy into losses. When one of Hardy’s banks called in a loan and the company was forced to look for a financial partner, BRL was there. BRL management decided to propose a merger. Following the merger, ex-BRL executives assumed the majority...
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...NAME, LOCATION & NATURE Name: Winery Comply Location: Napa, Ca Nature: To provide affordable compliance solutions and services to the wine industry. From tax preparation, inventory and shipping sales tax tracking control with new software programs with first hand technical and training support. SELF-ANALYSIS. Skills, abilities and competencies We provide first rate winery compliance software to better meet the needs of those in the winery business. One of our great strengths is the program was written internally and is owned by that same person. Having a great computer programming background we are able to change the software on the spot to better meet the needs of the individual wineries then having them have to adopt to the software to meet their needs are having to conduct business with more than one software. We provide both installation and training onsite or remotely to better meet the needs of the customer. This is outlined in the contract that I signed before install. Unlike most other companies we are providing a tech support team that has regular office hours for remote work and we can scheduled on site demonstrations for other shareholder in the winery as well as training for those individuals. We are taking the mandated laws on shipping wine for accurate sales tax and partnering it with winery operations. Reports can be pulled to determine amount of money that has to be paid to the shipped to state and you can also pull monthly inventory reports to...
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...Valley Winery Case Study Introduction The San Francisco division of Valley Wine has recently hired a new sales manager named Paul Waller. The company has had consistently good sales despite a turnover of 100% of the sales force in the San Francisco area. Waller is tasked with better planning and organization of the sales force activities of Valley Winery and the operations in the region. Philosophy and Strategy The Valley Winery was founded in 1933 and has grown to the largest domestic producer of wine in the United States. They produce multiple product lines that include both low-price, consistent-quality wines as well as lower quality wines and wine coolers. The Valley Winery has had a difficult time retaining its sales force. Even though they have had short-term growth in sales, they are not able to sustain the growth. The Valley Winery has been recognized as the best managed and most innovative in the market. This is related to two factors: * Producing low-priced wine with consistent quality * Push strategy that is used by the sales force Distribution System Valley Wine has a wide, nationwide distribution system which is primarily located in metropolitan areas. The company owns approximately 50% of these distributors that are mainly larger and more profitable accounts. The company typically does not target smaller accounts, but one of their products do cater to this segment of the market also. Sales representatives’ call on non-company...
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...Delamere Winery Problem Statement Richard Richardson wants to improve the quality of his wine by preventing oxidation, deepen the red color, and determining the best mix to include in the crush. However, he uncertain which initiative will be the most impactful, will be most accepted by his customers, and be the most cost effective. Due to harvest, Richard Richardson only has a few days to decide. Objectives Richard Richardson’s goals are to: • Continue to grow his business and increase profit. • Prevent oxidation of the wine. • Deepen the color of his red wine. • Determine the best mix of whole bunches, stalks, and destemmed grapes in the wine’s crush. Analysis Richard Richardson owns a 21.3 acre winery in Tasmania. 8 acres of the winery are used to produce wine. He has a PhD in agricultural chemistry and has used to his education and passion for winemaking to attempt to continually improve his wine through experiment and express the personality of the winery as well as his own. However there are many risks and conflicts involved with his current business practices. The Tasmania wine region is growing rapidly and experiencing many changes. The region is becoming very competitive and focused on quality, price, and consistency. Advertising is currently limited but will likely change as a more competitive environment emerges. There are many steps to manufacturing wine such as harvesting, crushing, fermentation, and maturing. Currently Richard...
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...Case Analysis – The Valley Winery The Valley Winery is the largest domestic producer of wine in the United States and one this nation’s largest privately held companies. Their recently hired sales manager of the San Francisco region, Pat Waller, has determined that the number one problem in the region, despite favorable sales results, was turnover which is nearly 100% a year with the average sales rep being with the San Francisco region winery for only 7 months before leaving or being terminated. Pat begun to analyze the effects of the turnover the company is experiencing, which consisted of first considering the costs of training and recruiting which was close to $33,000 per representative. Secondly, he believed that decreasing turnover would increase sales due to better customer rapport. Pat then decided to travel with sales representatives to better understand the day to day of the job to get a better sense of what may be happening while out in the field that may be adding to the high turnover. There seems to be many problems with the culture of this company, but not a single one with sales and profits. They’re consistently making high numbers, but the number one problem they seem to have at The Valley Winery is the high turnover problem. As mentioned above, the high turnover rate nears 100% on the year with the average sales rep staying a nearly 7 months. The sales manager of the company oversees two area managers, who collectively oversee 11 district managers, who then...
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...1. What are the main benefits and drawbacks to the Mondavi Winery of becoming a public company? 300 words maximum Once the Mondavi Winery becomes a public company, there will be an immense increase in its equity and it can be used to fund Mondavi’s rapid growth. Despite the fact that family control can be retained by designing the rules of IPO, the uncertainty degree would still be higher than the company used to be. The fluctuation of share price would also affect the company image. Moreover, Mondavi’s historical financial performance, which had previously been a guarded secret, was made available to the public. 2. What types of investors are most likely to be interested in the company? How could you target those investors? 300 words maximum Wine stocks appeal to ‘the hobby stock holder’ who wants to be part of this industry. Investors can be targeted through the following process: 1. Look for wine lovers who know how to appreciate US-made premium wines. Some useful sources may be obtained from wine-related clubs, associations and institutes. 2. Hold social fairs or other events and share stories and visions with these potential investors instead of simply analysing financial data to have them involved in picturing a better future with strong evidences. 3. Emphasize on the expected big leap of Mondavi, which may serve as a growth booster of the whole US wine industry to arouse the need of purchasing Mondavi stock. 3. How would you recommend Robert Mondavi...
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...MacCloud Winery 1). (A) Ok so the first question is asking about whether the building being leased on the 5 acres piece of piece of property. And doing some further research I found that it can be treated one of two ways. Capital Lease: which is a lease treated as an acquisition of the assets financed by a loan OR Operating Lease: which is a lease treated as a rental agreement so there for would not be an asset. BUT a capital lease has to meet one of three criteria and in this case it does. The criteria it meets States: The present value of the minimum lease payments is equal to or greater than 90% of the fair market value of leased property. And if you were to calculate the lease payments out (10,000*5= 50,000) it would equal $50,000 which far exceeds the value of the building being at only $32,000. (B) yes all the payments made towards the lease should be recorded as an expense 2). BANK LOAN: $180,000 3 years $10,000 annual payment (until 3rd when you pay lump sum) 10% Interest rate Journal entry on the day of the loan: Cash 180,000 Notes payable 180,000 Journal entries for the next three annual payments. Note Payable 10,000 Interest Expense 1,000 Cash 11,000 Journal entry on the lump sum pays out at the end of the loan contract Note Payable 150,000 Interest Expense 15,000 Cash 165,000 3). Land: Mike should treat the land as acquiring an asset transaction would be like...
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...Executing Strategy: Concepts and Cases, 14th Edition Benziger Family Winery Case © The McGraw−Hill Companies, 2004 1 case Benziger Family Winery Murray Silverman San Francisco State University 36 Tom Lanphar California Department of Toxic Substances Control had been the primary participants developing the system, the rest of the organization would have to become involved and staff training would be required. In light of the financial investments and time that would be required from management and employees, Matt and Chris had to decide whether to aggressively pursue ISO 14001 certification. The alternative was to continue to develop an EMS as time and resources permitted, leaving open the possibility of eventually pursuing ISO 14001 certification. M att Atkinson, ranch manager at Benziger Family Winery (BFW), was overseeing the development of the winery’s environmental management system (EMS). Matt was working with Chris Benziger, partner and national sales manager, to ensure that development of the EMS was consistent with BFW’s operational and strategic direction. It was February 2003 and Matt and Chris had already invested countless hours in the EMS, which was being developed with assistance from the California Environmental Protection Agency (Cal/EPA). Through its EMS winery pilot project, Cal/EPA hoped to design an EMS template that eventually could be made available to other wineries. Furthermore, Cal/EPA was attempting to develop a template that...
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...Quint winery | Exploring possibilities to enter the Japanese market | | This study aims to give Quint winery a solid advice wether to enter the Japanese market or to look for other ways to expand their market. | | Roderick d’Hont 48632 | 1-1-2011 | | 1 Contents 1 Case discription 3 2 Analysis 3 Uncovering the potential of the Japanese market 3 How to locate potential Japanese purchasers 4 Should Quint winery visit japan or should japan visit quint winery 4 Entering Japan solo or together with other companies 5 Marketing research 5 3 Conclusion 5 1 Case discription Quint winery is a wine producer located at the Mosel River Valley in Germany. As the home market is becoming increasingly saturated and the competition is increasing, Quint Winery is looking for other markets to expand their sales and distribution. The wines produced at Quint Winery are high quality, and honor the traditions in wine making. Once at a ‘wine tasting party’, one of Quint Winery’s German customers brought a Japanese visitor along. She believed that the wines would prove salable in Japan, if marketed properly. 2 Analysis Uncovering the potential of the Japanese market Wine made out of grapes hasn’t been one of the favorite alcoholic beverages in Japan. Rice wine and plum wine were always the way to go. As these wines are made in Japan, they contribute to the Japanese sense of culture and traditions. Only since 1969 when Pieroth, which is an established wine brand from...
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...correct (more on this later), R and C are irrelevant to the problem. Given the information you provided, it seems safe to assume that C < $15, 000.∗ Even assuming the worst, R ≥ $12, 000 and C = $0, the option of waiting has a greater expected value than the decision to harvest now: $35,640 versus $34,200.† If the worst is not true (i.e., R < $12, 000 or C > $0), the the option of waiting is even more valuable. Consequently, unless you strongly dislike risk, you should wait to harvest. Your expected gain from waiting is at least 4% (worst-case scenario). If the very best-case scenario in which the node (labeled as ①) is worth $28,200 (see Technical Appendix for underlying calculations), your expected gain would be at least 18%. Because your winery is a partnership rather than a stock firm, I assume that risk is an issue for you. On the other hand, Riesling represents only 4% of your ∗ Otherwise, you not find it profitable to produce a $2.50 bottle of wine should the storm not occur and the acidity drops below 0.7%. † I provide details in the attached technical appendix. Copyright c 2004...
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...Arkansas State University | Freemark Abbey Winery | Team 1 | | Assignment | 11/28/2012 | | Case Summary Freemark Abbey Winery should make a decision whether to harvest or not, taking into consideration the possibility of rain. Rain may damage the crop but delaying the harvest would be risky too. Keeping in mind rain could be beneficial and will increase the value of the resulting wine. This decision is complicated by the fact that ripe Riesling grapes can be converted to wine in two ways, resulting in two different types of wine. Factors that should be taken into consideration Probability of rain, mold formation, acidity, sugar level, wine price, and reputation. Mr. Jaeger’s possible choices: Harvest now or later. Solution: The payoffs are calculated based on 1000 cases of wine. 1. There are two alternatives: * Waiting (W) for the storm to come. * Harvest (H) now. * If he waited, the storm may or may not hit. * If the storm hits, the mold may or may not form, which greatly affect the revenue. * If the storm hits and no mold form, the sugar level which determines the quality of the wine is uncertain. The quality of wine produced affects the company’s reputation. * If storm hits and mold do not form: Sell the grapes in bulk (B), or make the thin (light) wine and sell it (T). * The best decision: Where the expected value (EV) maximizes current returns. * The blue values represent selling the harvest in bulk (B)...
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...中国投资澳大利亚葡萄酒业分析 锐勤资本集团 www.origincapital.com.au 2012 年 1 月 中国投资澳大利亚葡萄酒业分析 中国投资澳大利亚葡萄酒业分析 内容大纲 一、概要 ........................................................................................................................................................... 2 二、酒业数据概览 ........................................................................................................................................... 2 葡萄生产情况 ........................................................................................................................................... 2 葡萄酒生产情况 ....................................................................................................................................... 4 进口葡萄酒与国内市场 ........................................................................................................................... 4 出口情况 ................................................................................................................................................... 4 三、现在是收购或投资澳大利亚葡萄酒业的最佳时机 ............................................................................... 5 四、澳大利亚葡萄酒庄寻找投资者的原因 ................................................................................................... 6 五、中国投资澳大利亚葡萄业的需要考虑的问题 ....................................................................................... 6 投资方式 ................................................................................................................................................... 6 投资过程中需要考虑的问题...
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...William Jaeger From: Consulting Group Date: January 19, 2013 Subject: Options and Best Practices for Winery From my research, word of mouth and your product itself, I am aware that Freemark Abbey Winery’s reputation is one of its greatest strengths. However, I understand that the weather plays as both a threat and opportunity for the wine industry as a whole. There are reports of a rainstorm in route to Napa Valley with a 50% chance of striking your winery; this is why you have reached out to my firm, Consulting Group. We have carefully analyzed all options and are ready to offer our recommendation. Problem Freemark Abbey Winery is known for producing premium wines; nevertheless, not choosing the best action to take in anticipation of this rainstorm may hinder your ability to even produce a premium wine for sale this quarter. A decision tree was constructed to weigh out Freemark Abbey Winery’s options. The winery has two alternatives: 1. do nothing and wait for the storm to greet the winery or 2. harvest the grapes immediately to avoid the rainstorm’s effects. Both options yield vastly different alternatives that we deem critical to your winery’s profit, revenue and reputation. Evaluation If Freemark Abbey immediately harvests its grapes, it incurs little risk and no further worry at first glance. Conversely, this option allows the winery to harvest “not quite-ripe grapes” resulting in weak revenues. This option contributes $2.85 of profit per bottle...
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...little bit of California traffic, we pull up to the beautiful house around 2:00. We snack a little on the cheese, croissants, fruit and hummus provided in the entryway and then crash into our queen size bed. After a much needed two hour nap for me, and four hour nap for Elijah, we freshen up and head out for our first Sonoma experience for dinnertime. Completely starving and still a little tired, we drive roughly thirty minutes to Rustic restaurant inside the Francis Coppola Winery. We order huge plates of pasta’s and salads, along with their “first flight tastings” for $25, which...
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