Mondavi Winery Essay

1. Do you agree with the Mondavi familys decision to publicly appoint the companys parts? What are your study concerns with how this could impact the dividing line? What are the major benefits?2. How would you recommend Robert Mondavi answer to the markets current assessment of the company? What types of investors are most likely to be implicated in the company? How would you best target those investors?3. What do you think could have led to the rapid go on in the share price?1.Clearly for Mondavi, going public is the only way to secure capacious financing for his personal credit line. However, the decision that Mondavi made to increase the scale of business is debatable. While Mondavi can be bourgeois to stay on the same scale and try to grow organically, Mondavi can also be run a risk taking and gather money from the public.With regard to the wine market prospects, there are two sides of the joust which favour and unfavor the wine market. It is thus difficult to judge f rom the wine market aspects.Ultimately it is the Mondavis personal preference to take the riskier and higher abide by decision.2.The market assessment of the company seems to revalue MOND to have a pessimistic 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 strong a strong reason for financial reward seeking investors non to invest in MOND. It is likely that investor who ultimately purchases MONDs shares and hold, as noted from the outset 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 worshipper of the company should be informed that the company will continue to grow as what it was promised and will not go through major restructuring to produce a better financial report.3.Mondavis IPO daylight is on June 10 1993. There are two articles released by The Wall Street 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 position to discourage financial reward seeking investors to buy MONDs shares and makes them feel sceptical about 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 nine 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 well-worn price. This result in investors losing their confidence with the company.