Written Analysis and Communication

WRITTEN ANALYSIS AND COMMUNICATION

ASSIGNMENT NO- 01

FREEMARK ABBEY WINERY

EXECUTIVE SUMMARY

The report highlights the problem of William Jaeger who is a member of the partnership company "FREEMARK ABBEY WINERY" has to make an effective decision on whether harvest the grapes immediately or leave them on the vines

Analysing the above, the objectives is to keep reputation of the company and earn the profit in the process

The alternatives is that he could harvest the grapes immediately and eliminate the risk

The decision is that he should harvest the grapes after the rains .

WORD COUNT - 83

SITUATIONAL ANALYSIS

Freemark Abbey Winery is a wine making company. William Jaeger, a member of the partnership that owned Freemark Abbey Winery. This company was located in St. Helena California, in the northern Napa valley. It produced only premium wines. Cabernet Sauvignon and Chardonnay were mostly the wines that were bottled each year out of the 25,000 cases. About 1,000 cases of Riesling and 500 cases of Petite syrah were bottled( 1 case= 12 bottles of wine). Freeway Abbey's grapes came from an ideal climate in the central and southern parts of valley.

Wine is produced from the fruit sugar of the grape juice; it is then converted by yeast, through fermentation, into approximately equal molecular quantities of alcohol & carbon dioxide. Various decisions are taken while vilification like the type of wooden barrel used for aging. The wine maker tries to harvest the grapes when they have proper balance of sugar and acidity level.

Several different styles of Riesling are on the market. If the grapes are harvested at 20% sugar, the wine is fermented "dry" or "near dry". At 25% of sugar, the winemaker can produced wine with the same 10% alcohol but with residual sugar as 5%.

Riesling grapes that are attacked by the botrytis mold is another rare style of making wine. Allowing the water to evaporate from the grape while the sugar remains. Thus the sugar concentration increases to 35% or more having 11% of alcohol and 13% residual sugar & botrytis itself adds to the wines complexity.

As William Jaegers has to make a decision that depends mainly upon the prediction rain(exhibit) . Whether the rains would be favourable or not. From the weather reports it seems that there will be 50%-50% chances rain. If it rains and botrytis mold is formed he would get the maximum revenue and if the botrytis is not formed than berries would swell by 5-10% resulting in less concentration and the wine would be sold in $2.00 per bottle or he should go directly for harvesting minimizing the risk involved and also keeping the standards of the company

If it does not rain than there is a 20% probability with luck. The grapes would reach 25% sugar, resulting in selling it for $3.50 per bottle which has equal probability of having grapes with 20% sugar and selling it for $3.00 per bottle. The remaining 10% probability is to wait for the sugar levels to rise and as