Solution to Case Study " SONOMA VALLEY WINES"
Sonoma Valley Wines
Accountant turned entrepreneur and B-school graduate George Clark wants to venture into the "Wine Making" business as he is familiar with it. George will start with five acres of land he has already brought in Sonoma Valley, California. Winery, where capital equipment cost is high, George is expecting a loan from the bank. To convince the manager that his business will have good profits. George decides to get an idea of the business by running the show with his own capital of $10,000
George has ideas about the advertisement costs. He has fixed up the selling price for both years, has collected the grape costs he will need for both wines, which he wants to manufacture.
The cost of grapes and advertisement costs are to be taken into effect. The final condition George can think of, is that both types should be between 70% and 40% of the total production
Should George go ahead or should he quit trying to be an entrepreneur? He needs your advice