The Devils Own Wine Shoppe
|Case 3: The Devil’s Own Wine Shoppe |
|Business Strategy: Spring 2013—April 8, 2013 |
|Tamara M. Yancy |
Case Analysis: The Devil’s Own Wine Shoppe
Introduction
The article, “The Devil’s Own Wine Shoppe” revolves around the wine store owned by Bruce Nelson and his wife, Mary Lee. Being a business owner has been a life-long dream of Bruce. They opened the wine store in August 1974 with initial capital of $22,000 and an initial outlay of $17,258. In addition to owning the wine store, Bruce works fulltime as a car salesman while Mary Lee divides her time between working at the wine store and running the household. Bruce and Mary Lee have been placed in a position where they must decide if they should close the wine store, Bruce quit his fulltime job and devote his time completely to the wine store, hire additional help so that Mary Lee no longer has to work at the wine store, or continue as they are—Bruce dividing his time between the dealership and wine store and Mary Lee dividing her time between the wine store and home. The decision is contingent on Bruce and Mary Lee being able to transform the financial position of the wine store at it is currently operating at a loss.
Analysis
The wine store was positioned in Pensacola, FL in the Pensacola Standard Metropolitan Statistical Area (SMSA) which offered the store a viable economy with growing incoming levels because of the manufacturing, governmental, and oil drilling/refining industries operating in the area as well as will the high tourism potential relating to the beaches of the Gulf of Mexico. The area also provided a population of 245,000 in the SMSA. The Nelson’s positioned their wine store in an established shopping plaza that provided the potential for high visibility due to it be
|Business Strategy: Spring 2013—April 8, 2013 |
|Tamara M. Yancy |
Case Analysis: The Devil’s Own Wine Shoppe
Introduction
The article, “The Devil’s Own Wine Shoppe” revolves around the wine store owned by Bruce Nelson and his wife, Mary Lee. Being a business owner has been a life-long dream of Bruce. They opened the wine store in August 1974 with initial capital of $22,000 and an initial outlay of $17,258. In addition to owning the wine store, Bruce works fulltime as a car salesman while Mary Lee divides her time between working at the wine store and running the household. Bruce and Mary Lee have been placed in a position where they must decide if they should close the wine store, Bruce quit his fulltime job and devote his time completely to the wine store, hire additional help so that Mary Lee no longer has to work at the wine store, or continue as they are—Bruce dividing his time between the dealership and wine store and Mary Lee dividing her time between the wine store and home. The decision is contingent on Bruce and Mary Lee being able to transform the financial position of the wine store at it is currently operating at a loss.
Analysis
The wine store was positioned in Pensacola, FL in the Pensacola Standard Metropolitan Statistical Area (SMSA) which offered the store a viable economy with growing incoming levels because of the manufacturing, governmental, and oil drilling/refining industries operating in the area as well as will the high tourism potential relating to the beaches of the Gulf of Mexico. The area also provided a population of 245,000 in the SMSA. The Nelson’s positioned their wine store in an established shopping plaza that provided the potential for high visibility due to it be