Professional Documents
Culture Documents
Before write SinoDrink’s vision and mission, I would like to share something about my
thought of vision and mission. For me, Vision is about the views of company future, company
vision is a planning for future, employee and management level need to try their best to work on
that and make it more closer until reached the vision, after reached it, it can enhance the
company’s motivation and satisfaction. Vison also tells us where we are heading for, as a leader
we have to look forward and see where our company are headed. This is important in order to
know the right and suitable path for our company before any bad things happens, Vision also
helps a leader prepare for the coming future, it led us go for the future planning that we want to
be. Having a plan or vision in company is one of the most important and valuable things you
have to do, because once when we face any challenge, based on the vision that we have, we can
For the company I pick, it called SinoDrink, they are the Italian wine specialist, last summer,
I met their founder in China, we had a dinner together, we both share our vision and mission for
our company, however his company’s vision really touch my heart. He said, when he was young,
he learnt that the world is circle, but since the globalization, he think the world is “flat” now, his
company vision is to shorten the distance between China and Italy and make Authentic Italian
wine in front of Chinese people and let Chinese market discover the taste of Italian wine.
SinoDrink have the vision to communicate and spread Italian lifestyle instead of selling wine to
Chinese market. We sincerely hope that Chinese could be able to slow down their pace, pause for
a moment, raise glass, and enjoy some fine wine and cuisine.
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Mission
Mission is about company’s core value, what is the company purpose, company need to set
up a mission that need to be completed by all people from company, it allows company to
survive. Mission we can divide it into different section that we need to conquer it by setting up
the right strategy. Mission also give us a micro-focus. With all the difficult that we might face in
company, we need to have a clear focus on the problem that we have base on the mission that we
provided. As a leader, acting on your mission will provide you with the focus needed to
accomplish your goals or vision. Mission also helps leaders work on what is important to achieve
Through the mission that SinoDrink have, they start to sourcing their wine from Italy, they
went to all the state of Italy to sourcing the most affordable and suitable for Chinese market.
Before they went to Italy, they analyze the Chinese market data and base on their own point of
sales, they discover what Chinese taste is, refine it on paper and set it as their mission to find the
most suitable wine for Chinese. Beside analyze the market, they pay a lot of attention on
sourcing in Italy by find the right winery and talk with their owner. Through talking, they also
also part of their mission, once they standardize their sourcing process, sourcing become more
2. Assumptions
Executive Summary
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SinoDrink is a Chinese agent company that specializes in spreading the Italian culture
and lifestyle to Asian countries through Italian wines. The company's primary aim has been to
spread Italian wines to China and beyond and thus transform the lifestyle of its consumers
(SinoDrink, n.d).
Strategic sourcing plans are an organization's procurement processes that are meant to
continuously improve over time by reevaluating the purchasing activities and operations of a
company (Bruel, 2016). In most cases, sourcing involves getting into partnerships with
companies and other organizations that can adequately provide the services or products one is
interested in. Strategic sourcing is different from procurement in several ways, although all are
closely with suppliers while strategic sourcing consists of getting to plan, develop relationships
with suppliers, negotiate terms of engagement, create dependable supply chain infrastructure and
streamline outsourcing models (Bruel, 2016). A strategic sourcing plan aims at meeting the
needs of the client in a customized way through pre-arranged terms and conditions. Strategic
sourcing plans are, in most instances, set for the long run, but exceptional cases warrant a
separate agreement.
A strategic sourcing plan for SinoDrink would involve getting into contractual
agreements with the different Italian winemakers. According to de Zegher, Iancu, and Lee
(2017), contractual agreements are meant to set out the terms of engagement and at the same
time, streamline the processes and infrastructure to support the sourcing process. The sourcing
plans will also outline the specific requirements, specifications of all products as well as the costs
implications involved. This nature of the agreement will give SinoDrink the confidence required
GLOBAL SOURCING IN THE FOOD INDUSTRY 4
to sell the different wind brands in China and beyond. Since SinoDrink is working by
distributing the products to other wholesalers and retailers, there will be no to establish a
commercial agreement that will see them act on behalf of the winemakers. de Zegher, Iancu, and
Lee (2017) posit that sourcing plans are better as compared to normal procurement processes.
Despite this, there still exist risks and assumptions that SinoDrink cannot overlook, mainly
Assumptions
Changing business environments have in recent years, pushed enterprises to the wall,
especially when it comes to developing and implementing their sourcing plans (Bruel, 2016).
SinoDrink is no exception since they are dealing with products that are manufactured overseas
and are not owned or embraced by the local consumers. SinoDrink is focused on strengthening
partnerships with Italian winemakers based on mutual benefit and shared value. The strategic
sourcing plan for SinoDrink must, therefore, have an aspect of giving them a competitive
advantage over other agents, while at the same time being reliable all year round.
The main drive for the development of strategic sourcing plans is for SinoDrink to enjoy
business continuity, especially by bringing Italian wines closer to the people and its market.
Achieving this is no mean feat as it involves working with a different wine, who have different
terms of trade and engagement. Kim & Chai (2017) observe that the market is also not static
since many factors highly influence it. SinoDrink is too faced by several risks that can only be
managed at different stages during the entire sourcing plan. All these parameters should be
SinoDrink should develop their strategic sourcing plans with the idea in mind that market
forces are prone to change, which might either work for them or against them. These market
forces include; changes in demand, and supply of Italian wines, changes in the prices of wines as
well as the quantities for the same products (Kim & Chai, 2017). These factors are essential
because they will dictate the business model to be used by SinoDrink. Additionally, the
government of China and that of Italy might change their commerce and trade laws, which might
further change or alter the sourcing partnerships and agreements between the two countries.
Customers are continually changing their tastes and preferences, especially with the introduction
of new products in the market; this might either be an opportunity or a risk spot for SinoDrink.
advantageous in different ways. In the words of de Zegher, Iancu, and Lee (2017), these multiple
players and partners help to bring the right blend of value, brand, and other aspects that
customers are always looking for in a product. However, there is a need for SinoDrink to
establish a robust infrastructure that will work around the clock to ensure that all partners are
carrying their mandates as per the agreements. SinoDrink will, therefore, be required not to
assume that seamless sourcing will work without their interventions. Additionally, the entry of a
new agent in the Chinese market should also be something that SinoDrink should consider. New
players in the market might reduce the influence of SinoDrink, at the same time, lead to a change
in the relationship between SinoDrink and the Italian winemakers. The assumption that
SinoDrink will remain the only player in the market should be looked into since it can affect the
Strategic sourcing plans are only beneficial as long as the conditions, market dynamics,
regulations, and other aspects that affect commerce as long as they are at ceteris paribus (Bruel,
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2016). SinoDrink is therefore required to continuously review, enhance, and improve their
strategic sourcing plans with changes in the factors as mentioned above. Entrepreneurs engage in
business with the hopes that gains will surpass losses. However, this is usually not the case at all
times. Therefore, SinoDrink should expect the best to come from their strategic sourcing plans,
while at the same time get ready to in case the opposite happens. SinoDrink will, therefore, be
required to develop robust contingency plans that will ensure business continuity should these
3. Environmental Analysis
Business entities are vulnerable, especially as a result of external forces that might be out
technological, environmental, financial, and social-cultural forces (de Zegher, Iancu and Lee,
2017). These forces might not always work for the processes, procedures, operations, or the
activities of an entity. Concerning strategic sourcing, these factors have an impact on the entire
process from negotiations of prices to conduct of trade and to the management of all aspects
involved in the sourcing process. There is a need for SinoDrink to consider analyzing what the
Creating strategic sourcing plans requires the partnering organizations to assess what
risks are there in the industry as well as how the future might look like as Kim & Chai (2017)
discuss in their works on the global supply chain. Government policies and legislation that might
affect the businesses should be considered since no commerce can take place without the
government getting involved. Additionally, SinoDrink should consider tying their business
objectives with the current but conditions but at the same time, leave chances for revising the
perspectives and therefore reduce the likelihood of risks emanating from the various
environmental factors.
Technological and social-cultural factors are also believed to have an enormous influence
on the development of strategic sourcing plans. SinoDrink should, therefore, consider developing
a plan that will easily accommodate changes in these two sectors. Strategic sourcing is made
more accessible by integrating technology, while the created sourcing and procurement are
sustained through strong social-cultural ties that are not only universal but also have the human
aspect in them (Kim & Chai, 2017). In finality, global sourcing and procurement are quickly
becoming unsustainable because of the many threats it poses to the physical environment.
Adopting logistical approaches that harm water, air, and the physical environment could destroy
the reputation of SinoDrink, and its partner companies. There is, therefore, a huge need to look
into all the aspects of the external environment of SinoDrink, because failing to monitor these
4. Objectives
Introduction
The operation of a specific business is laid upon its objectives. Before a company or a
business is started, the leaders first develop a strategic objective, which provides an apparent
reason as to why the company is being launched. Define objectives are responsible for guiding
and controlling the operations of the business. They are the goals that a specific organization
seeks to accomplish during its operation periods. In my research, I will elaborate on the objects
of the SinoDrink company. SinoDrink is an Italian company that supplies professional wines in
Italy. It is the largest importer of wine from China. The main objectives of SinoDink are;
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According to a note from the manager of SinoDrink company, the company is stimulated to
ensure the spread as well as the communication of the Italian lifestyle across the country as well
as globally. This has been achieved through the production of different wines, a liquor that fit
different Italian lifestyles (Company Specialist Homepage Sinodrink Italian Wine Specialist.
2019). The company provides professional wines that fit different social classes, including those
SinoDrink company is the leading Chinese importer of wine in Italy. In the past years, the
relationship between China and Italy was at a minimal level. The cooperation between the two
companies has led to a regional relationship and expanded the market of the two countries.
Italian fashion brands are now prevailing in the Chinese market. In addition to this, many
Chinese now enjoy the Italian lifestyle, including the sportscars, foods, and yacht from Italy. The
China is a prominent distributor of wine across the world. SinoDrink is objected to becoming
the number one customer of Chinese wine. To achieve this level, the SinoDrink company is
specializing in events holding and collections of wine tours in Italy (Company Specialist
Homepage Sinodrink Italian Wine Specialist. 2019). In addition to this, the company engages in
wine investments by allowing shareholders to invest in the company. By doing this, the company
can import large quantities of wine from China, hence becomes the leading importer in China.
When SinoDrink was started, it was objected to becoming the official wine supplier in Italy.
Continued effort by the company made it be granted the priority of becoming the official
supplier of wine in Italy in the year 2010. It became the official supplier of wine in the
government offices, in the intercontinental hotels in the country, and it also became an official
partner in the Italian Embassy during the national day ceremonies in the country.
5. To support the programs that are associated with the expansion of both the micro as
Apart from promoting their own company, SinoDrink is objected in ensuring that even the
other small-scale business in Italy also grow in their production. The company is opposed to
supporting the livelihood of small companies by offering them the opportunity of minor
distribution events in the country (Barberis, 2017). In addition to this, the company also provides
subsidized wholesale prices to the entities that are associating themselves with retail selling of
wine. Furthermore, the company is objected to creating more job opportunities for the citizens of
Italy.
articulative its objectives are in its operation. The ability to follow these objectives also matters a
lot in its success. SinoDrink is objected to promoting regional relationships, becoming the most
professional wine importer in Italy, and promoting the growth of medium businesses in the
region.
5. Strategy
Organizations should develop sourcing strategies that address issues arising from the
supply chain and resonates with their objectives. SinoDrink trading commodities are sourced
GLOBAL SOURCING IN THE FOOD INDUSTRY 10
from Italy, with several producers being involved. It is, therefore, important for the company to
come up with a sourcing strategy that helps them deliver their mandate to its customers.
need to build a team that will help the company in harmonizing all these activities. In building
the team, SinoDrink will be developing a plan, consolidating tools and resources, and unveiling
the work plan. All these have to be developed within the scope of the company's missions and
objectives. The company must also consider creating a liaison division to enable them to follow
Market Research
Formentini et al. (2019) observe that failing to conduct market research increases risks for
marketing plans to fail. Adequately conducting market research equips organizations with the
data that is required to make strategic decisions. SinoDrink will conduct the market research to
understand the supply market, while at the same time be able to capture supply trends, issues to
do with the capacity and pricing of products. Based on the product portfolio of SinoDrink,
Strategy Development
The strategy development process in the sourcing process is the most critical aspect
because it involves coming up with a strategy that can stand the test of time. The main aim of
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strategy development is to classify suppliers and also define the sourcing approach. According to
Formentini et al. (2019), organizations must be keen on this step because it involves making
financial commitments as well as reevaluating the goals of the company. SinoDrink will, in this
case, be required to understand the amount of resources they are willing to commit without fail.
Companies must also conduct a supplier evaluation based on the feedback given by suppliers. In
case the supplier does not meet the expectations, then there is a need to consider changing the
strategy used or formulating the supply strategy again. The strategy development phase is
regarded as the most intensive phase because critical decisions must be made.
Contract Negotiation
company with a huge market for its commodities. According to Formentini et al. (2019),
companies should negotiate contracts to attain a win-win situation for both parties involved. In
coming up with the negotiations, SinoDrink will be required to come up with a negotiation plan
that outlines how the winemakers will ensure business continuity. In essence, organizations must
ensure that the contract negotiation works in tandem with the goals of the organization.
According to Formentini et al. (2019), organizations reap the most benefits by negotiating
way to source products. According to Formentini et al. (2019), organizations should focus on
creating a robust and firm relationship with suppliers, especially when they are outsourcing
GLOBAL SOURCING IN THE FOOD INDUSTRY 12
different commodities. The goal of the SRM process is to continuously improve performance and
enhance the relationship between the two organizations. Supplier Relationship Management
Formentini et al. (2019) believes that organizations largely depending on suppliers are required
to update their sourcing strategies to ensure that they are following the market needs and
dynamics. Consumers might also change their tastes and preferences, and trade laws might also
change, which might have an impact on the sourcing plan of SinoDrink. There is, therefore, the
need for procurement managers to develop a strategy with all these aspects in mind.
Asia region (SinoDrink, n.d). The strategy to bring these drinks closer to people encompasses a
sourcing plan that needs to stand the test of time through an analysis of Strengths, Weaknesses,
Strengths
The biggest strength for SinoDrink in the development of its sourcing plan is the
availability of enough financial resources. This is an advantage because it can enable them to
support the vital activities and processes in a sourcing plan and also enable them to get into
contractual agreements with suppliers. The availability of financial resources for SinoDrink will
guarantee them an advantage over their competitors since they will have a robust process. The
other strength of SinoDrink is in its understanding of the Asian market, which is vital in the
development of sourcing plans. Available networks of retailers and wholesalers are also
something that SinoDrink can take advantage of in their sourcing plan. Finally, China and Italy
GLOBAL SOURCING IN THE FOOD INDUSTRY 13
have warm trade relations that can be used by SinoDrink to work to their advantage. This means
that they can be able to import and outsource at friendly conditions and terms.
Weaknesses
The Chinese market is huge, and consumers have different tastes and preferences. The
needs of the market should guide the outsourcing process for SinoDrink. In essence, SinoDrink
might feel that Chinese consumers cannot choose, and this would negatively affect their plans.
SinoDrink is also working with different winemakers, which means that they will be required to
get into individual agreements and contracts which might be sophisticated for the company. The
assumption that the Italian wines will be embraced in China is also an issue that would weaken
the sourcing plan of the company. It is also not easy to customize the Italian wines for
SinoDrink, which therefore means that SinoDrink will be doing more in promoting the Italian
brands as opposed to their brand. This means might transform them into a mere distributor.
According to Bruel (2016), the best form of outsourcing is collaborative sourcing since it aims at
cultivating long term relationships. SinoDrink cannot achieve collaborative sourcing because of
Opportunity
China boasts of one of the biggest populations in the world, which directly translates to a
wide market. SinoDrink could develop a sourcing plan with this idea in mind because they will
be assured of benefits in the long run. Italy is a renowned winemaker in the world, an aspect
which would be an opportunity for SinoDrink to venture into winemaking. According to Bruel
(2016), strategic sourcing plans help a company to identify opportunities for them to save on
costs. This is an opportunity for SinoDrink both in the short run and in the long run. Consumers
GLOBAL SOURCING IN THE FOOD INDUSTRY 14
are continuously finding new tastes and preferences; therefore, the outsourcing plan by
SinoDrink would position them in understanding the needs of the Chinese market.
Threats
SinoDrink has had several competitors in the recent past who are taking advantage of the
huge preference for Italian wines in China. These competitors could get into better agreements
with the Italian winemakers, thus choking out SinoDrink. The sourcing plans could also be
affected by threats from international trade policies and laws involving the two countries. The
other threat to the sourcing plan is in the case of Italian winemakers shift their production
facilities to China, denying SinoDrink the agency work. Bruel observes that business continuity
could also be affected by changes in the tastes and preferences of consumers, thus affecting and
invalidating sourcing plans of companies. Finally, the sourcing plan from SinoDrink involves
acquiring products from multiple producers, which means that an elaborate plan should be put in
Strengths Weaknesses
Financial Resources Changes in Tastes and Preferences
Opportunities Threats
Large Market Competition
7. Implementation Element
Every company’s primary goal is to make profits by providing its customers with need-
satisfying goods and services. With the ever-changing conditions concerning business
environments and technological advancements, among other factors, companies are always
forced to increase their operations. They are also often obliged into searching for more
productive processes to increase their profitability. As such, most companies always end up
using different strategies for their day-to-day activities as they aim to gain a competitive
advantage over their key rivals (Chaffey, Hemphill, & Edmundson-Bird, 2015). This necessity
always drives companies to adopt strategic sourcing. However, the method does not delve into
the details of tactical methods, which is already evident from the discussion above to be a critical
requirement for a company to succeed. This paper, therefore, conducts an operation analysis on
SinoDrink Company to bridge the gap between its strategic plan and operational tactical plan.
Background Information
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SinoDrink ranks among the best selling and leading importer of wine in China, thus
earning it larger market share, more so among the dignitaries. The company has been
maintaining relevance by targeting high-end groups and events. For instance, it holds the official
contract for supplying wine to the Italian Center for Shanghai Expo and the Intercontinental
Hotel Expo, a contract it has been holding since 2009. Some of its key products include Italian
fine wines, mineral water, liqueur, coffee, and glassware. Additionally, the company also
engages in specialized wine investment, organization of wine events, collection of fine wine, and
also the winery tour. The company has maintained high quality operations, thus enabling it to
achieve the feats mentioned above. However, there is still need for implementing more strategies
and using more tactics to meet the ever-changing business dynamics in the contemporary world.
Current Strategy
One significant factor the company relies on is the continuous building of its brand
through high profile partnerships. The main advantage that comes with partnerships is that it
increases the market base of the company. That is, the individuals associating with the partners
also come to know about SinoDrink, thus also starting their association with the latter. However,
this illustration also highlights some loopholes that the company has not yet tapped in yet. For
instance, the customer base of SinoDrink currently revolves around high-end dignitaries and
individuals associating with its partners. However, there are also individuals who do not fall into
any of these categories. These groups or individuals also hold potentials of becoming
As earlier mentioned, technological advancements are shaping the businesses today and
companies are advancing their operations to adapt new operational strategies that can maximize
on the newly introduced techniques. The first strategy that the company should implement is
targeting the markets it has not ventured in before. That is, the general public. The company
should change its approach from being more corporate and dignitary-oriented to a more
accommodative approach that targets the larger market. This method will be appropriate since
there are some individuals who can afford or would have associated with the company but
After implementing this strategy, SinoDrink will also need to change its operations
through a second strategy, which involves taking advantage of ecommerce. Ecommerce refers to
the buying and selling of goods electronically through the internet (Laudon & Traver, 2016).
This form of trade has gained prevalence in the contemporary world, with many companies
joining in to reach out to more consumers. Therefore, SinoDrink should also take the initiative
and join the leading brands in the online business. The company should not have any problems
implementing this strategy because it already engages in the distribution of goods and services
and, therefore, understands the logistics that characterize the business. This understanding will
specifically help in pricing and choosing more partners that can help the company achieve its
objectives.
Upon setting of the strategic plan as mentioned above, SinoDrink will also need to review
its operation tactic plans. The first measure that the company will have to take is to adopt new
tactics that allow for the achievement of the new strategy goals; that is, venturing in ecommerce.
One tactic that the company can use is to start social media marketing. Research has revealed
GLOBAL SOURCING IN THE FOOD INDUSTRY 18
that social media has become a significant tool in selling business ideas to target markets (Felix,
Rauschnabel, & Hinsch, 2017). Various platforms, including Facebook, Twitter, and Instagram,
among others have millions of followers and subscribers. Yet, SinoDrink does not have any
platform listed on its website. This situation can only mean that the company has not yet set up a
social media account, which then means that they are missing a great deal on the opportunities
The next tactic that the company will need to adopt is hierarchical leadership that will see
power spread down the leadership channel. This plan can be achieved by setting different
departments and teams to handle different issues in the company (Erogul et al., 2019). For
instance, a team can be in charge of social media marketing while another one handles the
distribution and so on. Power will then stream down from the general manager to departmental
heads and finally team leaders depending on the levels that the company will set. By
implementing this tactic, the company will not have managed hierarchical leadership alone but
also increased teamwork in its operations. These steps will have also helped to bridge the gap
Assumptions
These proposals are subject to several assumptions made on the company. The first
assumption is whatever information displayed in the company’s website is all about its
operations. Therefore, it is assumed that the lack of some key factors like social media handles
on the website means that the company does not have any. Secondly, the assumption made
throughout this paper is that the company will maintain its massive influence in the corporate
and dignitary sector such that the new strategies will be additions to blend with the existing ones
GLOBAL SOURCING IN THE FOOD INDUSTRY 19
to earn more market share. Finally, this discussion has assumed that the company is currently
Conclusion
It is evident from the discussion above that companies need appropriate strategies to
maneuver through the ever-changing business environment. The recent developments that
characterize the contemporary society have made it even easier for companies to maximize their
operations and earn high profitability. These are benefits that SinoDrink can take advantage of to
blend its operations and reduce the gap between its strategic plan and operational tactical plan.