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YU Ranch Case Write Up

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YU Ranch Case Write Up

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YU Ranch Case Write Up

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, YU Ranch Case Write Up

1. What is YU Ranch’s situation, and what decisions need to be made?

YU Ranch has a favorable situation that might be of interest to many business owners.

The Ranch experiences a larger demand for grass-fed products and it has great public relations.

However, it is simultaneously faced with a production increment problem and making the

business profitable from its efforts. YU Ranch products currently are very popular within the

local community and receive firm support from fellow farmers, butcher shops, and the local

groceries which are the major customers of the Ranch. Gilvesy has recently received much

interest from Ryerson catering as they required a sustainable distribution of beef products. This

is great for the family but challenged by the fact that Ryerson and other customers need a

continuous and reliable supply of GSFR beef. There is a belief by Gilvesy that even though the

local market is developing and increasing, entering into larger markets such as London or

Toronto would increase their profits. Therefore, there are various decisions needed in the YU

Ranch moving forward such as they should be investing more in the products and the company

to increase the distribution rate to many customers. Rather, they can choose to stay within the

locals and continue supplying quality products to the local market.

2. Which option best balances the financial risk and return?

Various options are available for the Ranch to choose from to grow, although, among the

options, they have to be more specific on cost-effectiveness and potential returns. YU Ranch can

choose to increase the number of cattle in the firm by acquiring more land. Since the acreage

price has increased from $12,000 to $15,000, buying 100 acres would 50 pairs of herd size or

100 maturing calves near the market could increase therefore rising the distribution to customers.

The option enables the Ranch to acquire a loan but would also see the Ranch production rate

Document information

Uploaded on
May 10, 2026
Number of pages
6
Written in
2025/2026
Type
Case
Professor(s)
Samprof
Grade
A+
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