Case Analysis: RJM Enterprises, Inc. – Romancing the Vine Brief Background The case is introduced in late 1998 with Ron McManisat a crossroads of sorts regarding his family owned business. Currently, McManisenjoys moderate success as a mid-sized, Central Valley grower of grapes who sells his product to valley based wineries. His particular plot of land affords the added benefit of being able to produce high quality grapes in an area that is largely thought to produce grapes found in cheaper wines. In an effort to rid himself of this stigma and strategically position his company for growth, McManishired consultants to present options for expanding his current operations. The case closes with a presentation of various options with …show more content…
The analysisassumes that the bank will finance the entirety of each scenario and does not account for high interest rates (they only list interest at 9%) that the bank will likely charge for the additional risk associated with the bigger projects. Another cost that the consultants conveniently left out of their financial analysis is the cost of having consultants spendtime and energy on a project like this. Depending on the amount of time involved, this cost could be somewhere in the $10,000 - $25,000 range. *Question 3: If you were McManis*, what would you do? If I were in McManis’ position, I would purchase the mobile/field press as stated in option 2. A mobile field press allows for conservative growth in the Northern California market while allowing RJM to gain knowledge of the juicing/storage process. It will allow the company to continue to focus on the quality of its grapes without a massive capital expenditure. Unfortunately, a downside to this plan is the inability to capture the vigorish which is valued by some customers. McManisis currently in a pretty good situation from a strategy standpoint. Although overall wine consumption is dropping across the board, label laws are making it possible for Northern California wineries to add up to 25% of total grapes from regions outside of their own. By extension, this allows these wineries to charge a higher price, while having a lower overall cost. McManis’
Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.
1) Evaluate the structure of the global wine industry? How and why is that structure changing? What threats do these changes present for Robert Mondavi?
The Rose Company is building a new plant to reduce cost, improve the quality of products, and maintain competitive leadership by gaining a slight production advantage. The main obstacles to be overcome are the commissioning of a new plant, new methods and process, and administrative reporting issues. As the newly hired General Plant Manager, I plan to resolve these issues by insisting that all plant communications flow through me, instituting training for plant personnel and setting operational expectations.
Since the late 1960’s, California wine-maker Robert Mondavi has been perceived by its stakeholders as one of the world’s most innovative and high-quality producers of fine wine. It is therefore not surprising that the company has endured great financial success; in fact, it has secured an impressive annual growth in earnings per share of ~28% over the last 8 years. Recently however, there have been many external forces that may serve to threaten the long-term profitability of the firm: sales have been decreasing over the last 6 months due to a staggering economy, Australian imports are on the rise, shrinking the size of the pie for domestic firms, and there has been an industry wide trend to consolidate; existing firms are merging and
The intent of this mediation memo is to explain the breach of contract by the Muscadine grape producer, with whom l had entered into an agreement with to supply Muscadine grapes for my business. The agreement was supposed to account for a fixed price schedule, and I will delve into the facts of the case to clarify the breach of contract. I will explain the legal issues of the contract breach, request possible restitution, and appeal to conditions under which we can arrange a settlement.
The purpose of seeking mediation with Alexis Fairchild is that the Grape Producer of the Muscadine product line and I can come to a meeting of the minds resulting with mutual resolution. This memorandum will provide the facts of the case, contract at issue, legal issues, suggested remedies, and conditions to achieve settlement resolution.
Bonny Doon currently has an enviable position in the 1990’s Californian wine-producing industry. The company has successfully differentiated itself from its competition and achieved a first mover advantage in terms of selling “undervalued” wines. However, due to increased rivalry and a changing and increasingly challenging market,
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
This case analysis commences by explaining the type of accounting officer needed to execute the job functions for the client, Big Spenders Inc. The next objective will be to examine the income statements of the two prospective business entities that the client intends to choose from concerning investment – in order to diversify its portfolio. The strategies that will be explored in terms of the analysis of the income statements includes the computation of (i) operation profit margin, (ii) gross margin, (iii) net profit margin, and (iv) return on equity – for both companies of interest. The results of examinations will put the accountant in a position to make sounds recommendation to his superior at BUSI 1043 LLP, so that Big Spenders Inc. can be properly guided.
“Only one reporting entity, if any, is expected to be identified as the primary beneficiary of a VIE. Although more than one reporting entity could have the characteristic in (b) of this paragraph, only one reporting entity if any, will have the power to direct the activities of a VIE that most significantly impact the VIE’s economic
Looking back to the day I met Marshall Petersen; I feel I should have gotten to know him better before offering him a chance to promote the Muscadine grapes or seed products. The day I met him, I was trying to reach out in hopes that he would continue to come to church with his wife, Gloria. When he started placing regular orders, I should have set up a meeting with him and created a contract at that time, along with explaining that our invoices require payments within 30 days.
I met Ms. Raines while attending her Sunday school class several months ago. While becoming acquainted, Ms. Raines revealed that she was a Muscadine grape purveyor and producer. This very much intrigued me as I own a local health food store. After some discussion, it was decided that I would purchase a small amount of the grapes for a trial run in my store. Much to my surprise, these grapes proved to be very attractive to my customer base. Therefore, I began to place small orders, and with the increasing popularity of the Muscadines, I decided to showcase them by setting the products up on prime shelf space.
Donaldson Enterprises, Inc. (DEI) is a small unexploded ordnance (UXO) clearance company based on the island of Oahu that employs fewer than 20 full-time workers. DEI was leased and used the magazine located at Waikele Self Storage in Waipahu, Hawaii, for seized fireworks storage and disposal-related activities. According to a federal seized property management contract with the Treasury Executive Office for Asset Forfeiture (TEOAF), in early 2010, federal government contractor VSE Corporation (VSE) awarded DEI a subcontract to dispose of imported fireworks seized in Honolulu, Hawaii, by federal law enforcement
7.0 Budget Estimate and Financial AnalysisA preliminary estimate of the cost for the entire project is $200,000. This includes the hire of a temporary project manager, and the hours used by current employees to work on the project. Project savings comes in the form of reduced health insurance cost due to a healthier workforce that makes fewer claims.
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San