The demand eventually grew and so Jan decided to operate her own winery. Eventually, Jan became a proud winery owner as what she dreamed about. The business continued to operate and since then Jan was able to encounter expansion of her business at the local wine markets such as wholesalers, retailers, restaurants and caterers. Schoolhouse Lane’s products resulted in net growing revenues. Along with its growth comes the increase on expenses such as on sales and marketing and eventually the spiralling growth of inventories considering that red wines and red wine blends would need a long period of time for ageing in oak barrels. Eventually, Schoolhouse Lane Estates winery is a growing company and is considering rapid expansion as far as there is continued support for its products in the local markets.
The case starts with the company history. There is substantial evidence presented about the winery and its evolution which was primarily dated back to Long Island’s Wine Industry in the 1970s. There are also substantial data on Schoolhouse Lane Estates in line with its income statements, balance sheets, and statement of cash flow from 1999 to 2003. The case also cited the information on recent development and industry maturation of winery, the wine production in the United States, the changing dynamics of the US wine market, the competition involved and specific courses of actions made by Jan in order to continue to operate and expand its business.
It is clear that the level of analyses that must be involved in the case are combined Level 1 (Industry Issues) and Level 2 (Organization Issues) considering that the demand for wines decreases across California while selling high and eventually more acres of land were converted into fruit trees. This resulted in several wineries gone bankrupt. On the other hand, Jan planned to purchase a new acre of land for her winery .expansion yet considering the Industry’s current trend. it would be a problem on her part to look for sources of working capital as far as her financial options are concerned. .