Case 21 Freemark Abbey Winery Freemark Abbey Winery was established by the members of partnership. William Jaeger is one of the member own the company. It is located in St. Helena‚ California in the northern Napa Valley where the winery can produce the best grape quality. Each year Freemark Abbey can produce 25‚000 cases of wine bottled and there is 1000 cases of Riesling. (12 bottles of wine in each case) Jaeger needs to make a decision to maximize the profit and minimize the loss depending
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The Valley Winery-Case 1.1 Is the management of Valley Winery doing an acceptable job of hiring and training qualified employees? Management is the foundation of a company. They are the ones that make decisions which could make or break a company. They personify how the company and employees should act. If one is driven towards perfection in sales‚ many other important areas of the business could be overlooked. For example‚ maintenance of long term relationships with buyers would be overlooked
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Case 1 The Valley Winery The Valley Winery is an example of management malfunction because some top-managers are promoting unethical behavior and lack of credibility. High sales force turnover is the main problem this company is facing; however‚ high turnovers lead to employee dissatisfaction and unethical behavior. In addition‚ the company is putting on risk many of its relationships with their customers. Pat Waller was recently promoted to sales manager of the San Francisco chain division
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Grape growing : Grapes are the major material for making wine. so assume something happens to the vineyards. it will cause big loss. For example‚ ’’the phylloxera epidemic’’ will make the winery suffer at least five years none of grape supply. Simply put‚ no grape‚ no wine. and no revenue. In addition‚ although Mondavi owns lots of vineyards‚ it still needs to purchase more grapes from other independent growers. This costs a great amount of money. so‚ we think Mondavi is supposed to revise its
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In the case of the Benziger Family Winery‚ is being faced with the decision of whether or not Chris Benziger should invest in an ISO 14000 certification. The answer is yes‚ he should pursue the certification in an attempt to strengthen his knowledge that his company already has about being environmentally friendly. This will strengthen his position on the market as a leader in wine industry. In pursuing the certification‚ he will also educate other growers on the importance of a strong environmental
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Freemark Abbey Winery 1. Assuming Mr. Jaeger chooses to harvest the Riesling grapes before the storm arrives‚ how much money will he make? Harvesting before the storm arrives will bring $2.85 per bottle per case of revenue for the Riesling product. EMV = $2.85 c 12‚000 = $34‚200 2. Assuming Mr. Jaeger chooses to leave the grapes on the vine‚ what is the probability that the grapes will end up with botrytis‚ and how much money will he make if that occurs? EMV Botrytis = 12‚000 x .70
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1. What are the problems facing Pat Waller? The problems facing Pat Waller are the high turnover rate‚ using unsuccessful push strategy‚ and a commission structure that does not reward evenly across all sales levels. Also the unrealistic quotas that are too high creating unethical behavior with the front line sales force. Mangers are hired from one specific group‚ the chain group leading to lack of cross training. Lack of gender diversity is apparent in the different sales areas and most
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Freemark Abbey Winery Group ZZZ 1. Construct the decision tree for William Jaeger. 2. What should he do? Jaeger should choose to harvest later and wait for the storm. If the storm does come but destroys the grapes‚ he can decide whether to bottle wine or not to protect winery’s reputation. In either way‚ he will gain higher revenues from harvesting later than harvesting immediately: EV of “Do not harvest & Bottling”: $39240 EV of “Do not harvest & Not bottling”: $39240-$12000*0.6*0.5=$35640
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Jug wine consumption is nearly 38% of case sale but only 13% of the retail sales. The economics of the particular wine‚ the gross margin from the wholesaler and retailer is 41% and 9% compared to 12% from wine producer. Five forces analysis to Winery Industry: Threat of the new entry: Low The wine making industry is a capital intensive business‚ which requires a large amount of investment to get the working capital and acquire of the land‚ especially the land in the better geographic location
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UNIVERSIDAD TÉCNOLOGICA CENTROAMERICANA FACULTAD DE POSTGRADO MAESTRIA EN ADMINISTRACIÓN DE PROYECTOS GESTIÓN DE RIESGOS E INTEGRACIÓN DE PROYECTOS CASO No. 3 FREEMARK ABBEY WINERY PRESENTADO POR KARLA ALVARENGA – 10943107 ING. NANCY M. PEREZ DE PINEDA TEGUCIGALPA‚ M.D.C. 02 DE JUNIO DEL 2010. 1. ARBOLES DE DECISIÓN Gran parte del proceso de gestionar riesgos tiene que ver con mirar al futuro e intentar
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