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Written Analysis and Communication


Group Assignment No 1-Research Proposal Comparative study of customer satisfaction in private and public sector banks

Submitted by Name: 1.Malhar Patel (121328) 2. Monik Patel (121332) 3. Vivek Shah (121361)

Section: C

Institute of Management, Nirma University

November 5, 2012

EXECUTIVE SUMMARY
Freemark Abbey is a winery located in St. Helena California in the northern Napa Valley. The winery produced only premium wines from the best grapes. William Jaeger is a member of the partnership that owned by Freemark Abbey Winery. He had to take a decision whether he should harvest the Riesling grapes immediately or leave them on the vines despite the approaching storm. He had to keep in mind the reputation of the winery while getting maximum possible revenues. He has options of either to harvest the grapes now or to harvest after the rainstorm. He should wait for the rainstorm and sell botrytised Riesling. If rain doesnt come he should harvest the grapes( 25% Sugar).

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MAIN REPORT
SITUATION ANALYSIS
This is a case about a winery named Freemark Abbey located in St. Helena California in the northern Napa Valley. The winery produced only premium wines from the best grapes varieties. William Jaeger, a member of the partnership that owned Freemark Abbey winery. Winey produced different types of wines at different concentration of sugar and alchohol.This winery produces 25,000 cases of wine every year. Most of them are Cabernet Sauvignon and Chardonnay. It also produces 1000 cases of Riesling and 500 cases of Petite Syrah.( 1case= 12 bottles of wine). A storm is approaching the Napa Valley. William had to make a decision whether he should harvest the Riesling grapes immediately or leave them on the vines despite the approaching storm. Distribution of different types of wines and their concentration is given in the exhibit (2). Freemark Abbey winery got their grapes from ideal climate in the central & southern parts of the Napa Valley.Freemark Abbey produces only premium wines made from the best grapes varieties.Freemark Abbey does not sell a wine which does not suite its reputation. When there is a botrytis developed, quantity of the production reduces by 30% since water is evaporated from the grapes. There are 50-50 chances that the rainstorm will hit the Napa Valley. Probability of dropping of acidity below 0.7% in the grapes is very low(p= 0.2).At the production stage of wine winery can get different kind of wines by using various types of wooden barrels.Botrytised Riesling wine is very respected wine because of its awesome taste and white colour. Here from the given information we can conclude that there are 50-50 chances of getting rainstorm. So, William Jaeger has to decide as per his objectives and options that which decision to make.

PROBLEM STATEMENT
Here, the main problem is whether William Jaeger should harvest before the rainstorm comes or let the rainstorm pass and then harvest.

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OBJECTIVES
(1) To provide premium wines to the customers to maintain and enhance companys reputation.
(2) To get more revenue via producing good quality of wine.

OPTIONS
(1)Harvest immediately and sell at $2.85 per bottle. (2)Sell the wine( botrytised Riesling,35% or more Sugar) at $8.00 per bottle. (3)Sell thin wine at $2.00 per bottle. (4)Sell wine( 25% Sugar,10%Alchohol + 5 % residual Sugar) at $3.50 per bottle. (5)Sell wine( 20% Sugar,10% Alchohol,dry) at $3.00 per bottle. (6)Sell wine (acidity below 0.7%) at $2.50 per bottle. (7)Sell wine/grapes in a bulk at $1.00 per bottle. This is shown in exhibit(2).

EVALUATION OF OPTIONS
Here Freemark Abbey sold 1000 cases= 12000 bottles.(1 case=12 bottles) of Riesling wine. So, for our calculations we are taking 12000 bottles of production into account. (1) If rain comes, we have following options: Wine (botrytised Riesling): Winery could produce 8400 bottles of this wine. So, revenue generated from these wine bottles will be $ 67200( $ 8.00 per bottle). Wine (thin):Winery could sell 12000 bottles of thin wine at $ 2.00 per bottle. So, revenue generated will be $ 24000. Wine/Grapes (bulk): Winery if sell this thin wine or grapes in bulk it could get the half price per bottle than thin wines price. So, revenue generated will be $12000. (2)If rain doesnt come, we have following options:

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Wine (25% Sugar): Winery could sell this wine at $3.50 per bottle and revenue generated will be $42000. Wine (20% Sugar):Winery could sell this wine at $3.00 per bottle and revenue generated will be $36000. Wine (below 0.7% acidity): Winery could sell this wine at $2.50 per bottle and so revenue generated will be $30000. (3)If winery harvests the crop immediately it could be sold at $2.85 per bottle. So, revenue generated will be $ 34200.

These calculations are shown in exhibit (1).

DECISION
Here Winery can go for option 2.So; winery should wait for the rainstorm. Since revenue generated by wine ( botrytised Riesling) could be $67200 which is a maximum revenue we can get from different wine options they have. And by taking this decision winery could maintain its reputation since this wine is one of the best quality wines.

ACTION PLAN
(1) William should wait for the rainstorm to come.

(2) When botrytis is developed, winery should harvest the grapes and should start processing the wine. (3) Winey should sell it at $8.00 per bottle and could generate revenue of $ 67200.

CONTINGENCY PLAN
(1)If winery fails to get botrytis Riesling from current crop it should wait until grapes get 25% of sugar level. (2)Winery should sell this wine at $3.50 per bottle and should gain revenue of 42000.
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(3) With this option winery can save its reputation by providing quality wine to its customers and can also earn good revenues.

TYPES OF WINES NUMBER OF BOTTLES


Botrytised Riesling Thin wine Harvest now 25% Sugar,10%Alchohol + 5 % residual Sugar 20% Sugar,10% Alchohol,dry Acidity below 0.7% Bulk 12000 12000 12000 8400 12000 12000 12000

WHOLESALE PRICE PER BOTTLE


$8.00 $2.00 $2.85 $3.50

REVENUE

$67200 $24000 $34200 $42000

$3.00 $2.50 $1.00

$36000 $30000 $12000

EXHIBIT(1)

EXHIBIT (2)
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To Whom It May Concern Page 7 of 7

I, Malhar Manubhai Patel hereby declare that this assignment is my original work and is not copied from anyone/anywhere. If found similar with sources, I take complete responsibility of action taken thereof by WAC Team.

Signature Name: Malhar Manubhai Patel Roll no: 121328 Section: C

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