Last four digits of student ID #: 9347
Name of the business: More Vino Ltd.
Nature of the business: Wine Retailer, Bar and Restaurant, Wholesale, and Delivery
Marketing Analysis: More Vino Ltd. is a wine retailer located in Trinidad and Tobago and is the newest local hot spot for food, drink, and entertainment. The Stone brothers, Christian and David, started More Vino Ltd. with the help of an investor and his partner, Arthur Greenway. Trinidad and Tobago is a hub for tourists to vacation all year round. The driving growth is mainly dependent on the tourism. With traditions that have lasted over 150 years, the island is a popular vacation spot for both tourists and natives alike. There is a cyclical demand for this product due to the
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The average collection period for 2007 was .46, which is an excellent decrease in days compared to the ACP from 2006, which stood at 2.146. Receivables are now being converted to cash much quicker. The Stone brothers took a good approach in depleting their inventory for 2006-2007, but relying so heavily on inventory to drive their sales will not yield good results in the long run. They should look into continuing to lower their COGS as well as increasing their prices as the market dictates. Because they offer service and ambiance not like any of their competitors, they have good reason to up their prices without losing valuable customers. The huge increase in fixed assets is alarming but being kept under control due to the high sales. Furniture and fixtures saw a tremendous increase but is justified by the customers it brings in. The brothers will need to keep their growth in fixed assets under control with this upcoming expansion if they want to not hinder their continuing growth. Inventory days, as the driver in sales, took a huge decline while days payable saw over a double increase. The FAT for 2006 and 2007 show almost no difference, concluding that More Vino is heavily invested, but not tied up in fixed assets.
Financial analysis: More Vino Ltd. was funded primarily by the Stone brothers mother, as well as Arthur Greenway and his