Freemark produces 1, cases per year of Riesling wine, which equates to 12, bottles. Jaeger has to decide on whether to harvest the grapes right now or let the grapes get caught in the rainstorm. Each decision comes with a certain level of risk. If he harvests the grapes now, he will avoid the rainstorm altogether, and have a respectable type of grape that would get him a good return on his decision. However, if he allows the grapes to remain in the storm, he has the opportunity to more than triple his return if the rainstorm produces a certain type of mold that allows the grapes to retain more sugar, thereby producing a much higher quality wine.
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Please Sign Up to get full document. William Jaeger. Freemark produces 1. Each determination comes with a certain degree of hazard. If he harvests the grapes now. On the other manus. In add-on. Jaeger has 3 more possibilities open to him. With so many options.
Jaeger come to a determination? It will be helpful to use the flow chart diagram attached to the terminal of the analysis. Harvest Immediately Get down with the option with the least sum of hazard. This is the least hazardous of the options because he knows what he can acquire if he harvested the grapes right now. If he harvested the grapes instantly in their current province. There are no other options. Do Not Harvest. No Storm Now to detect the options available to Mr.
Jaeger if he decides to non reap the grapes. There is a opportunity that the storm will really look. So for now. With the storm non coming. Jaeger to go forth the grapes on the vine to maturate longer. Jaeger if he decides non to reap and the storm does come down on his vinery.
Addressing the possibilities available to Mr. Jaeger if the storm does non incorporate the cast. Each choice is no more likely than the other Storm Comes.
Mold Present Now. This is the most optimistic scenario. Now that all the possible net incomes have been found for the storm really go oning. Remember that the opportunities that the storm would hit were The determination does come with higher hazard. It is hence. Mentions Bodily. Frey Jr. Quantitative Business Analysis: Text and Cases. New York. New york: McGraw-Hill Publication. Author: Brandon Johnson.
Freemark Abbey Winery Case Study Memo
Posted by By Joseph April 1, No Comments 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, cases per year of Riesling wine, which equates to 12, bottles. Jaeger has to decide on whether to harvest the grapes right now or let the grapes get caught in the rainstorm. Each decision comes with a certain level of risk. If he harvests the grapes now, he will avoid the rainstorm altogether, and have a respectable type of grape that would get him a good return on his decision.
Freemark Abbey Winery Case Study
Freemark Abbey: The following are short possible answers to the questions posed in the case. Obviously your answers may differ from these and hopefully discuss the case more fully than just to answer the questions. The payoffs are revenues associated with various decisons and eventualities --since if storm hits and mold forms there is a loss of yield. The payoffs are calculated based on cases of wine.
Group 3 - Freemark Abbey Winery Case Analysis
Krasker Freemark Abbey must decide whether to harvest in view of the possibility of rain. Rain could damage the crop but delaying the harvest would be risky. On the other hand, rain could be beneficial and greatly increase the value of the resulting wine. This decision is further complicated by the fact that ripe Riesling grapes can be vinified in two ways, resulting in two different styles of wine. Their relative prices would depend on the uncertain preference of consumers two years later, when the wine is bottled and sold.
A Napa Valley Original
Freemark produces 1, cases per year of Riesling wine, which equates to 12, bottles. Jaeger has to decide on whether to harvest the grapes right now or let the 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.