Kitsch Wines: Expanding During a Pandemic

The following instructions & questions may be used to guide your case writing report & presentation:

Prepare a thorough industry, competitive, and customer analysis of Kitsch Wines:

a$.$ Identify recent trends in the Canadian and $BC$ wine and restaurant markets. How will these trends affect Kitsch Wines $($KW$)$ and its future performance? What impact will COVID$-19$ have?

b$.$ Who are KW$\text{'}$s competitors? What is KW$\text{'}$s competitive advantage? Is it sustainable?

c$.$ Who are KW$\text{'}$s customers? What do they want?

d$.$ Overall, what are KW$\text{'}$s strengths and weaknesses? While it is not mandatory, consider performing a SWOT analysis.

Prepare a thorough analysis of Kitsch Wines statement of cash flows:

a$.$ From $2019$ to $2020,$ what cash was generated from operations and how was it generated? What are the largest sources and uses of cash? What does the cash flow statement tell you about Kitsch wines financing and investing patterns? What does this mean for the company going forward?

Prepare a thorough analysis of Kitsch Wines' key ratios $($from those provided in the case$)$:

a$.$ How do the ratios compare year over year? How do the ratios compare to the industry and competitors

Calculate and thoroughly analyze other financial ratios $($not provided by the case$)$ for Kitsch Wines:

$($Minimum $2)$

a$.$ Why did you select the ratios calculated over other possible ratios? Why are they of significance to Kitsch Wines?

b$.$ If possible, compare the ratio selected year after year and provide analysis.

c$.$ If possible, perform research to identify industry or competitor benchmarks for these new ratios you calculated.

Identify the qualitative & quantitative pros and cons of the production tasting room expansion with and without a restaurant and propose decision$*$:

a$.$ Does this overall situotion fit with KW$\text{'}$s current operations goals?

b$.$ How should your cash flow and ratio analysis be considered in this decision?

$*$Note: The case goes into significant detail on the various costs associated with the tasting room and