Fusion Wine Craft
A viable business I would like to create would be a winery named Fusion Wine Craft, specializing in unique varietal blends and having an on-site restaurant. Located in the Okanagan Valley it would produce high quality wines and have a world class dining facility. A small winery with a wine production/ restaurant facility capable of seating 50 people and having 15 full time and 10 part-time employees .
Visitors to the Okanagan Valley would enjoy our restaurant and shop for goods in the facilities wine boutique. Hand crafted wines would be shipped and then sold at selected liquor stores across the country and internationally. The Restaurant would focus on the enjoyment of the experience and would acquire a tour operator service. Exceptional food in a scenic atmosphere would describe the dining room.
A winery is a monopolistic competition. Fusion Wine Crafts products and services would be marketed to people who appreciate good wine with an extra promotional emphasis on the baby boomer market. Wines would be sold in more niche market stores catering to more refined wine drinkers.
Long-run costs would include a plan using Minimum Efficiency Scale to ensure the winery's size and output capabilities are set to achieve economic capacity. Short run costs would include utilities, grapes, supplies and labour. Fixed costs would include insurance, rent and business license renewal.
An example of a business with a similar style operation is the Summerhill Pyramid Winery : http://www.summerhill.bc.ca/Wines
Firms Strengths: An established brand with a good reputation Summerhill Pryamid Winery has a great location and adequate size. It has Canadian and U.S. markets for its organic artisan style wine. An economy of scope is displayed with included restaurant and a scenic visitor area with unique architecture inspired by Egyptian Pyramids.
Firms Weakness: winery costs would be dependent on the quality of crops. A competitive wine market will lead to the firm being a price taker which could result in a lower price for their high end product. Production capabilities would be limited by the fixed amount of land and diminishing rate of return on increasing other factors of production.
An example of a business with a similar style operation is the Summerhill Pyramid Winery : http://www.summerhill.bc.ca/Wines
Firms Strengths: An established brand with a good reputation Summerhill Pryamid Winery has a great location and adequate size. It has Canadian and U.S. markets for its organic artisan style wine. An economy of scope is displayed with included restaurant and a scenic visitor area with unique architecture inspired by Egyptian Pyramids.
Firms Weakness: winery costs would be dependent on the quality of crops. A competitive wine market will lead to the firm being a price taker which could result in a lower price for their high end product. Production capabilities would be limited by the fixed amount of land and diminishing rate of return on increasing other factors of production.
No comments:
Post a Comment