A Votre' Sonte Case Analysis

The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.

Ms. Quintana CEO of Northern Napa Valley Winery Inc. was considering conducting business with Trans Continental stores to sell excess grapes from the 2008 harvest. Prior to making a decision Quintana must determine how much of the harvest should be retained for the production of Northern Napa’s own red table wine. Quintana realized that the quantity of red table wine produced is closely associated to the sales.

Le Chateau is a leading Canadian specialty retailer that offers contemporary fashion apparel, accessories and footwear. Founded in 1959 by Hershel Segal, the retailer was originally named “Le Chateau Men’s Wear”. The name was

Smaller firms such as the family run operations in Europe may not be able to realize these same cost efficiencies. Furthermore, grapes represent 50 to 70% of a winemakers COGS, thus the competition for sourcing high quality grape growers is quite high. Just as Mondavi does for 75% of its purchases, most premium wine makers enter into long-term contracts with growers to not only ensure that their demand is met but also to make sure that they receive grapes that are consistent in quality.

The most important necessary inputs for the production of wine are grapes, bottles and labor. Concerning the grapes, there is an outstanding difference between the traditional wine producing countries for example in Europe (the south of France, Spain, Italy and Southeastern Europe) and big wine factories that operate as oligopolies like in the US and Australia. Due to the bond to traditions and the higher demand for quality in Europe most of the wineries here still stick to the original way of producing wine, including the growth of the grapes on the land around the winery, a so called vertical integration (which is often considered by producers where the supplier's price is too high or the offer is insufficient, in our case this trend results rather in traditional and cultural values than in financial ones). This eliminates the percentage of dependence on agricultural suppliers significantly, whereas concerning a big wine company the negotiation power of the supplier is quite high. These wine companies tend to have a low sensitivity towards the price they are charged, as grapes are a crucial component of wine production. However, in both cases the price of the grapes is always

Buckley v. Valeo: Buckley v. Valeo was a court case where the judges held limits on how much could be spend on elections. This was unconstitutional to what the count case came out to be

However, Bonny Doon is vulnerable and reliant on its suppliers, as 80% of the firm’s grapes are bought from external growers. Bonny Doon requires unpopular grape varieties and grapes that meet high quality specifications (which decreases agricultural yields and creates a trade-off for growers). They need to develop long-term relationships with the growers to ensure uniformity and high production quality with respect to the firm’s key product input: grapes. On the other side of the value chain, the firm has preferred small-medium sized distributors for their product. This has enabled them to retain higher profits, despite selling wine in smaller quantities.

The supply of grapes, apples, bulk wine and grape juice concentrate for Vincor’s wine products comes from a combination of sources. Privately owned vineyards (Canada, U.S., Australia) provide somewhere between 35% to 57% of the raw products needed to

Rue 21 is one of the many retailers that are geared towards teens, however what set them apart from the rest is their affordability. This company strives to keep all of its merchandise under 35 dollars. Rue 21 has locations in various strip malls with 52 percent, regional mall 31 percent and outlet centers 17 there are pros and cons that affect the company for each of them (Berman, 2009). Having this store in a strip center can be a really great thing for consumers put not such a positive thing for the company as a whole. The positive to a strip mall is that it is easily accessible for customers to find and shop at the location. Strip malls have less congestion when it comes to parking, which makes for a more pleasurable for shoppers like

Jules Kroll is planning to enter into the ratings industry. To determine whether it is a good idea and a good time for him to enter into the new business, we project the 5-year NPV for KBRA and apply SWOT analysis to KBRA. The 5-year projected NPV is $341.1 million, a positive number. It is a good time and a good idea for KBRA to enter the business. However, through our SWOT analysis, it would be difficult for KBRA to become competitive in a short time. Thus we suggest it add a credit rating division into the company to make attempts to it but not start up a

Williams-Sonoma is one retail organization that was successfully launched in 1956, with catalogs issued in 1970, and finally placed on the internet in year 2000 (Alber, 2014). This retail organization umbrellas seven different brands and operates under Williams-Sonoma Home, Williams-Sonoma, Pottery Barn, Pottery Barn for Kids, and West Elm, with 601 retail stores, six catalogs, and six e-commerce web-sites (“Williams-Sonoma”, 2014). Williams-Sonoma reaches an annual revenue of five billion, carries four percent of the home furnishings sales in the United States, and is the twenty-first largest online retailer (Alber, 2014). Williams-Sonoma is a multi-channel retailer that provides home products such as cookware, cookbooks, various kitchen products, as well as personalization of some products, and general home furnishings (Alber, 2014).

This case discusses Cross-Border valuation of projects. This kind of analysis is common for companies that are operating in many countries. Groupe Ariel is one such company that is considering investing in a project in its own subsidiary in Mexico. The company manufactures and sells printers, copiers and other document production equipment in many countries. As far as, expansion into new markets is concerned, company is very slow in taking initiatives as compared to its competitors owing to the recent recession. But the management of the company believes that better durability and lower after-sales service costs of their products enable

To compute the optimal order quantity of each wine we firstly needed to compute the unit cost per bottle and the salvage value of each. From the description of the case we could easily identify that the unit cost of each bottle was 50% (gross margin) of the price plus the 1,25€ per bottle of the transportation costs. With this we computed the unitary cost of each type of wine.

According to the product-market matrix above, and after reading about the industry, it is apparent that Fe’nix del Sur competes in selling authentic

The price of grapes depends based on how the grapes were treated prior to being sold. This has an effect on how much it cost to produce the wine, but it also affects how much the wine will cost to the consumer. There is a price different between fresh grapes and grapes that have been processed. In 2009 the average price for one ton of grapes was around $505. When examining the cost of producing wine there are many factors in which you have to look at. Factors many include but are not limited to, the grapes, the process of fermentation, the storage, the labor and time, the bottling/packaging, and of course the shipping of the products to the customers. The total cost of wine in California in 2009 was around 1.7 billion dollars, which included the production of 3.4 million tons of wine grapes.