The Devils Own Wine Shoppe
1709 words 7 pages|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
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 …show more content…
Each option presents a selected set of strengths (advantages) and weakness (disadvantages).
Should they pursue option #1, Bruce will be positioned to fulfill is life-long dream of being a business owner, the Nelsons will no longer incur childcare expenses because Mary Lee will be able to go back to being a stay-at-home mother, and the Nelsons have the potential to have a more stable home life as both Bruce and Mary Lee will have structure in their workdays and set work schedules. However, consideration must be given to the level of income stability and security. As a self-employed business owner, there are no guarantees of a steady and reliable income. Often times business owners are forced to funnel their salaries back into the business to cover expenditures. Being employed as a salesman guarantees Bruce a steady and reliable base salary plus the potential to earn sales commissions. With this option the Nelson face the possibility that the business may be forced to close because financially it cannot meet its expenses, breakeven, or make a profit.
With option #2, closing the wine store, Bruce is positioned to either lose the ability to pursue his dream or delaying the pursuing of his dream because it is not financially feasible for him to maintain the wine store at this stage in his life and under these