2. HELMI WINE COMPANY
MAN 4704 – International Entrepreneurship - Spring 2022
STRATEGIC PLAN
Mission Statement:
We put our heart and soul into our products in order to create the best wine in the world for
you...
Helmi Wine Company
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3. NEW BUSINESS STRATEGY PROJECT - MAN 4704
Strategic Planning
• Helmi wine company is an already established company in the
U.S. looking for new target markets, in this case, international
ones. Our company wants to make wines with local products
from Italy to So then we could avoid the situation of
extraordinary exportation of raw materials and help both sides
increase the production and quality of the product.
• Also, we want to distribute our products to local wine stores and
supermarkets. Now we have a critical situation we can use in
our favor to make the company grow.
• Of course, we want to bottle and bring products directly from the
U.S, but we will do it later after the company is already set.
First, we want to put something sure, let us know in this new
country and do our best to let the company succeed. We plan to
be one of the best, or why not the best, wine company from the
United States established in a foreign market and much more
Italy, which is an excellent market for this business after Italy
kept growing in other foreign markets.
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Helmi Wine Company
This is good, maybe be a bit more clear and forceful on the idea: buy land in
Italy, use your US knowledge combined with local Italian grapes and wine
making techniques, to produce a local wine, desirable to Italian consumers.
4. INTRODUCTION OF THE STRATEGY – EXECUTIVE SUMMARY
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Helmi Wine Company
The Strategy for our company is simple but strong and will describe the start-up process in a
foreign market for this new company with expectations for the first year of business.
We want to distribute our product in the whole of Italy. Therefore, we put two places to make our
products—the main principal in the capital, Roma and the second one in Toscana.
Also, we can benefit the country by giving sources of work in different areas, helping the country's
economy and ours.
5. THE NEW BUSINESS DESCRIPTION AND ORIGIN OF THE IDEA
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Helmi Wine Company
Helmi Wine Company has a great track
record timeline of success. We want to
expand their products in the best possible
way. We are keeping the name at the top
even in the foreign markets.
This led me to consider the expansion in
Italy, where we believe we could do it.
Because first, Italy is one of the most
critical countries globally with wine
consumers and incredible land for the
production of wine.
The new business depends upon a clear
idea and set of guidelines for effective
implementation:
• We will work as a bottler company
• Distribution will be by wine shops and
supermarkets
• We will sell the concept of a traditional
wine company that wants to share with
the world their incredible products
• There will be a different type of options
in wine types
• Our employees will be local harvesters
and wine tasters who know the region
and the market
6. 6
The above chart depicts global wine
production, with Italy at the top of the
list with 16% of the world’s volume.
I've included some maps and a cake
chart about global wine production in
2020 as well as why we chose Italy as
an excellent location to grow our
business.
Helmi Wine Company
The graphs show that vineyards within a country with extensive
land for wine production are a plus since production costs do not
increase. In addition, it can be distributed more efficiently to other
places with the original quality coming from the United States.
7. SWOT Analysis
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STRENGTHS: POSITIVE INTERNAL FACTORS
THAT ARE WITHIN OUR CONTROL.
• Prices that are affordable
• New product concepts that are unique
• New market collaborations are being
formed.
• Personnel with specialized knowledge in
several fields
• Track record of success
Weaknesses: Internal elements that
challenge our business or have the
potential to leave us at a disadvantage.
• Resources limitations
• Unclear unique selling preposition
• A similar variety of wine types.
• Slow manufacturing processes
• Lack of technological machinery
Threats: External factors not within our
control with the potential for negatively
impacting our business.
• Political concerns in the new exporting
location.
• Customers have a low tolerance for fresh
ideas.
• There are fewer wine drinkers.
• There are new competitors.
Opportunities: External factors that
have the potential to contribute to our
success.
• Wine demand on a global scale.
• The wines as a product are well-known
all throughout the world.
• Due to consumer habits, markets with
high demand.
• Globalization.
Helmi Wine Company
8. SWOT Summary
• From the SWOT analysis for the company, it is clear that the primary internal
factors are the strengths of years of experience and confidence in the market
and the weaknesses of a new market to explore. However, we must also be
aware and plan for external opportunities created by the excellent acceptance of
the foreign market while seeking ways to ensure the threats of globalisation or
new competitors don't affect our business strategy.
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Helmi Wine Company
9. Competitor Analysis
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Competitor
Markets in
Common Current
and Potential
Products in
Common Current
and Potential
Target Client Base in
Common Current and
Potential
Marketing Approach
Distribution
Approach
How Do They Compete With
Us
1 Masseto Wine company
Merlot and Tuscany
Red
Italy and U.S
Social media
campaings
Wine shops and
online local shop
Different types of wines
(presentation and flavor)
2 Solaia Wine company
Cabernet Sauvignon
and Merlot
Italy (local people and
foreig costumers)
Quality and variety
of products
Online worldwide
shop and local
supermarkets
Also a traditional wine
company with a long timeline
in the wine market and good
acceptance from the
costumers
3 Sassicaia Wine company
Cabernet Sauvignon
and Merlot
Italy (local costumers)
Social Media
campaings
Local shop
Strong flavours and detailed
types of bottles.
4
Giacomo
Conterno
Wine company
Merlot and Tuscany
red
Italy (Middle class)
Quality and variety
of products
Online store and
supermarkets
They offer different type of
experience like wine tours
and also hosting in their
lands.
Helmi Wine Company
10. COMPETITOR SUMMARY
The new business is expected to face competition from established winemakers with certain
factors viewed as challenging to overcome, such as years in the market and various products.
However, the company is expected to compete effectively against known and potential
competition due to the strategic focus on utilizing local grapes and wine making techniques to
reach the Italian market. The effort will leverage y implemented and the knowledge acquired
over the years in the wine industry in the U.S. about the products and the market.
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Helmi Wine Company
11. BUSINESS VIABILITY ASSESSMENT - BASIS FOR THE STRATEGY
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Proof of Commitment, Passion and
Resources, Including Financial for
the Business Idea
What are the Primary Drivers of
the Business?
Idea for Business
• New types of wines like
classic American wine as a
new target market.
• Use raw materials to save
economic resources by
taking advantage of the
currency exchange rate.
• Bottling and distribution
will take place in Toscana,
which we believe is an ideal
location for us to establish
our new vineyards and grow
our business.
Because we want to buy our own
piece of land and build our plant
as quickly as feasible, we will
first take resources from our
primary company in the United
States.
Other Italian stockholders will be
involved in our initiative, but we
will remain under the control of
our American parent business.
We will return the money seized
from the United States as our
profits begin to expand.
• Clientele: Wine connoisseurs and
newcomers to the wine industry.
• Employers: Opportunities to
advance in the firm, a pleasant
working atmosphere, and all of
the benefits that an employer
should have, such as health
insurance, rest days, meals when
necessary, and compensated
overtime.
• Profit: The highest amount of
profit according to the production
number
• Growth: Be one of the most and
best distributors internationally
Additional Commentary on
Proof of Commitment and
Drivers
• We are committed to the
growth of our company and
consumer satisfaction with
new quality products at
affordable prices.
• We will also always see the
growth of our employees
within our company.
Helmi Wine Company
Use the same font
12. ASSESSING THE COUNTRY’S BUSINESS SYSTEM – ITALY
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Governance Description
Ownership System
• The biggest Italian chains like Coop or Conad are cooperatives. Taking Coop as an example, a market leader with a 10% market share in
value, € 12.4 billion in turnover and 1,500 points of sale, it is made up of 10 regional cooperatives, each with multiple members, owners of one
or more stores. This means several complexity pluses, since in many cases we will have to multiply our negotiating efforts, dealing with the
headquarters in Bologna and / or with the regional cooperatives.
• Toscana has family controlled sector the most, what is good for us because we are a family company. Between small companies we can help
each other to keep growing and do strong relationships.
• We will try also to make big distributions to liqueur shops and supermarkets
Networking System:
• Keep working in new fresh ideas and development of technologies.
• Study the land the most and take the best advantage from it.
Management System: • Decisions are participative, we will select a manager and he/she will be in contact with us all the time. Big decisions will be always take by us if
there is situations our manager can control we will allow him/her to do it, but always notifying it.
Social Culture
Rationality
• We will have frequently meetings with out shareholders and employers to know what are the new notices or something they want to
communicate us.
Authority • Everyone should be respectful each other: Bosses with employers and vice versa.
Identity • We offer a good environment non looking for sexual orientation, religion or other type of situations, We want everyone feel good in their own
skin and place.
Helmi Wine Company
The idea here is to assess Italy’s Business Environment according to the
questions in the chart, Google the questions, for example, “what is the
management system in Italy?” That will help you fill this table out.
13. DOING BUSINESS IN: ITALY
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Retrieved from: Doing Business, 2020
Helmi Wine Company
Italy is a developed economy with great potential, but cultural
characteristics and numerous layers of bureaucracy constantly make
companies feel bewildered. That's why proper local support is essential for
doing business in the country. With a strategic location and a vast business network, Italy is considered
ideal for international business expansion. Other factors that are attractive
to foreign companies are its modern infrastructure and developed economy
and its strength in sectors such as life sciences, information and
communication technologies, renewable energies, high-end consumer
goods, high-tech design and engineering products, as shown in the graphs.
14. COUNTRY PROFILE: ITALY
• Viticulture in Italy has ancient roots; not by chance, Italy's old name was Enotria (land of wine),
derived from the name of the Enotrios, who lived in what is now Basilicata and Calabria. Who
discovered and mastered viticulture, winemaking, and wine conservation procedures 500 years
before Christ.
• The Italian economy is divided into two parts: a developed industrial north dominated by private
firms, and a less developed, heavily subsidized agrarian south plagued by unemployment and
underdevelopment. The manufacturing of high-quality consumer goods by small and medium-sized
businesses, many of which are family-owned, is a major driver of the Italian economy. Italy also has
a substantial subterranean economy, which accounts for up to 17% of GDP, according to some
estimates. Agriculture, construction, and service industries are the most prevalent places to find
these activities.
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Helmi Wine Company
15. COUNTRY FIT FOR YOUR BUSINES
• The wine produced in Italy must focus all its attention on high-end consumers, a segment of "good wine" enthusiasts that represents 7% and 12%,
respectively, of the regular customers of this beverage in the United States and China (two markets of great importance for the wine industry).
• In the Asian giant, luxury wines are associated with the label's prestige, the region of origin or critics' scores. At the same time, in the US, the
techniques used from the field to the winery are taken into account to estimate the quality of the product.
• Everything points to the fact that the Premium consumer is primarily male (66%) and willing to spend more than 20 dollars (almost 18 euros) on
average on a bottle. Moreover, this buyer prefers Italian wines (59%, thanks to Valpolicella, Amarone, Chianti, and Prosecco) more than those of
French origin (40%).
• These data are not so surprising when you consider that Italy is the second country in per capita wine consumption (46.6 litres per
• Because Italy is a member of the European Union, wine exports from Spain are duty-free. Aside from the VAT (21%), the wine is not subject to any
other taxes. Liqueur wines, on the other hand, are subject to excise duty as high-alcohol beverages. Italy's wine consumption accounts for 10% of
global consumption.
• Despite a decline in the consumption of low-quality wine in recent years, demand for bottled wines with a designation of origin, primarily from
Spain and France, has increased. The first is modern distribution, which includes everything from budget stores to hypermarkets, as well as
minimarkets, superettes, and supermarkets. This is the main sales channel for bottled wine, with a market share of over 65% and a network of
approximately 30,000 points of sale. With a market share of over 65 percent and a network of almost 30,000 places of sale, this is the most
important sales channel for bottled wine. 15
Helmi Wine Company
The font is too small to read projected on a screen., keep the fonts the same for
similar slides
16. INCORPORATION STRUCTURE, EMPLOYEES,
WORK LOCATION, KEY ASPECTS
Country/Market: Italy/Wine
Industry
Entry Strategy: We want a
totally owned location because
we believe we can develop our
ideas and company much more
effectively, and we may
consider franchising in the
future.
Incorporation Structure: Our
strategy is to hire expert
professionals to come up with
innovative ideas, as well as
locals who are well-versed in
the area. Examine the most
effective methods for managing
and distributing the goods.
Number of Employees: 25
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Helmi Wine Company
17. NEW BUSINESS STRATEGY SUMMARY
Helmi Wine Company is a well-
known winery that wishes to
extend its operations globally. We
chose Italy, namely Toscana, as
the location for this. This is a
great opportunity to expand our
firm and establish ourselves as a
major wine producer. We have
enough experience to allow other
countries to sample our fantastic
products.
We also have no issues with
currency exchange because
euros and dollars are not that
dissimilar; also, the wine sector
has widespread acceptance in
Italy due to the strong demand for
this product.
We have unique and innovative
ideas, such as personalized wine
bottles or introducing new flavors
to the country.
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Helmi Wine Company
This is good, getting there, you do need to say what you are going to do: buy
land, use your US knowledge combined with local Italian grapes and wine
making techniques, to produce a local wine, desirable to Italian consumers.