Question: THIRD DECISION TO MAKE Winery (home front) issue; Cost per case of wine is rising, investment in technology (increasing depreciation). PROBLEM 3 OPTIONS TO SELECT

THIRD DECISION TO MAKE

Winery (home front) issue; Cost per case of wine is rising, investment in technology (increasing depreciation).

PROBLEM 3

OPTIONS TO SELECT OPTION CHOSEN
1) Execute a round of staff lay-offs to reduce costs.
2) Increase staff training and attract new people using above-average remuneration practices.
3) Sell off under-performing vineyards and purchase additional fruit from the spot market.
4) Do nothing: wait for technology to deliver efficiency gains within our internal value-chain.

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