DR. WEHRHEIM WINERY: TO GROW OR NOT TO GROW?

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Dr. Wehrheim Winery, a family business located in the Palatinate region of Germany faced a critical decision. While the business was controlled by the third-generation owner, Karl-Heinz, his son, Franz, had come up with a plan of launching a secondary line of wines exclusively for the retail channel. Because of the winery's limited supply of grapes from its vineyard, Franz wanted to source grapes from the market for the proposed new line. While Karl-Heinz was reluctant to support the idea because of the risks involved, Franz saw this as the opportunity to showcase his leadership skills as a prelude to becoming the fourth-generation owner of the business. Franz had a month to come up with a sound rationale to get his father's support for the secondary line.
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