Mondavi Winery Essay

1. Do you agree with the Mondavi familys finale to frequently harken the companys shargons? What are your major concerns with how this could impact the business? What are the major benefits?2. How would you recommend Robert Mondavi respond to the commercializes current opinion of the company? What types of investors are most likely to be interested in the company? How would you best target those investors?3. What do you think could have light-emitting diode to the rapid fall in the make out price?1.Clearly for Mondavi, discharge public is the only way to secure large financing for his business. However, the decision that Mondavi made to increase the scale of business is debatable. While Mondavi can be conservative to stay on the same scale and try to adopt organically, Mondavi can also be risk taking and gather currency from the public.With regard to the wine market prospects, there are two sides of the channel which favour and unfavor the wine market. It is thus difficult to judge from the wine market aspects.Ultimately it is the Mondavis personal preference to take the riskier and higher advantage decision.2.The market assessment of the company seems to shelter MOND to have a demoralised future and worth a lot less than when it is first public offering. Reputable business magazine, Forbes, look down on the prospects of MOND, which provide backbreaking a strong argue for financial reward seeking investors non to invest in MOND. It is likely that investor who ultimately purchases MONDs shares and hold, as illustrious from the low free share turnover after week 7, are people who believes in the MONDs business vision.MOND could release press in respond to convince the public the futureprospects of MOND. For investors who are still worshiper of the company should be informed that the company will continue to scram as what it was promised and will not go through major restructuring to grow a better financial report.3.Mondavis IPO solar day is on June 10 1993. There are two articles released by The Wall road Journal and Forbes, on April 26 and June 7 respectively, both lookdown on the prospects of MOND and the entire wine industry. They played an important role to discourage financial reward seeking investors to buy MONDs shares and makes them feel sceptical more or less the value of MOND.High share turnover on the first day and respectable closing price indicates a successful IPO. However, the market thinks the value of MOND is overpriced and no later investors are willing to pay a price greater than its current market price. This trends continues till week baseball club despite the free share turnover is low. It is still unclear when the share price will stop falling.One other major reason for the continuing falling share price is that the Mondavi management team did not response to their stock price. This result in investors losing their confidence with the company.