SECOND DECISION TO MAKE

International issues; US sales: obsolete wine and China low demand.

PROBLEM 2

	OPTIONS TO SELECT	OPTION CHOSEN
1)	Discard all obsolete wine in the US (estimated at a significant value!) and reduce the price of our premium wines, at least in the short term.
2)	Increase marketing activity in both locations to drive sales volumes, lobby governments and industry for more favorable tax treatments on entertainment spending.
3)	Cut wine production and sell-off vineyards to match the reduced demand.
4)	Increase discounting to wholesalers and retailers in all locations.

2. What is your recommendation? Why?