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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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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| Written Analysis and Communication Individual Assignment No 1 Case Analysis Report on ‘Freemark Abbey Winery’ Submitted by Name : Jyot N Patel Roll No : 121127 Section : A Institute of Management‚ Nirma University July 12‚ 2012 Executive Summary: This report encircles the problem faced by William Jaeger‚ co-owner of Freemark Abbey Winery. The firm produces premium quality wines made from high quality grapes. To produce quality
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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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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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Decision Analysis Case Study FREEMARK ABBEY WINERY Khurram Masood’s section HLCC Consulting Inc. Julian Hong Nicolas Liao Alan Chen Cheng-Chieh Chao Decision Basis Information Probability of rain‚ mold formation‚ acidity‚ sugar level‚ wine price‚ reputation value‚ detector accuracy‚ spores effectiveness‚ immigration law Mr. Jaeger’s Alternatives Harvest now or later Use detector or not Buy spores or not Sell in bottle or bulk Mr. Jaeger’s Preferences Prefers more money than less
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Case 21: Freemark Abbey Winery Executive Summary: Wine making is a process dependent upon many different variables. A lot of decisions are made which can affect the overall quality of the wine being produced. It is important that each decision is made to optimize the overall quality of the wine‚ thus optimizing the market price. In 1976‚ a business partner of Freemark Abbey Winery‚ William Jaeger‚ had to make an important decision that could affect the company’s bottom line. A storm was heading
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Freemark Abbey Winery Case Study Quantitative Business Analysis Dallas Baptist University Case Analysis – Case 21 (Bodily‚ Carraway‚ Frey Jr.‚ and Pfeifer‚ 1998) William Jaeger‚ partner and owner of Freemark Abbey Winery‚ has a crop of Riesling grapes that are close to ripening with a possible rainstorm approaching. Freemark produces 1‚000 cases per year of Riesling wine‚ which equates to 12‚000 bottles. Mr. Jaeger has to decide on whether to harvest the grapes right now or let the grapes
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Case 21 - Freemark Abbey Winery MANA 6302: N1 Professor: David Jones Mrunalini Patel November 15‚ 2015 Executive Summary The Freemark Abbey Winery is a company that grows grapes in St. Helena‚ California‚ in northern Napa Valley‚ for wine production. Wine taste and market value are greatly affected by the sugar and acidity level of the grapes during the harvest. Grapes for Freemark Abbey Winery come from central and southern part of the valley which has an ideal climate. Only the best
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main objective is to maximize net cash flow while preventing a loss of reputation to his winery. The decision tree (see attached exhibit) offers two options for Mr. Jaeger. Option 1 is to harvest immediately. If Mr. Jaeger does decide to harvest immediately‚ his per bottle revenue will come out to $2.85 wholesale. With 12‚000 bottles sold‚ Mr. Jaeger will generate a revenue of $34‚200 to Freemark Abbey Winery. Option 2‚ is much more
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