Module Title Strategic Planning and Foresight

Methods

Module Code 772104

Assessment Element Project Report - Coursework

weightage 100%

Module Leader Farhan Qureshi

Student name

Student ID
Executive Summary
The strategic proposal of Barbera Wine includes the mastery of elements such as the situation
map and stakeholder map to consider problems and activities resulting from its analysis With
PESTEL and porter’s five forces methodologies to consider opportunities and threats. SWOT
analysis, combined with the competitive performance review within the Strategy Canvas
identifies the strengths and the weaknesses. Recommendations under this category deal with
short-term strategies and tactics, middle-term goals and formulate long-term goals for developing
a market position and innovation.
Table of Contents
Executive Summary.........................................................................................................................2

1. Introduction..................................................................................................................................4

2. Methodology................................................................................................................................4

3. Analysis.......................................................................................................................................5

Step 2: Situation Mapping.......................................................................................................5

Step 3: Formal Review of the Environment..........................................................................12

Step 4: Internal Review of the Business................................................................................16

Step 5: Competitive Performance Review.............................................................................22

4. Recommendations......................................................................................................................25

5. Conclusion.................................................................................................................................26

6. Reference...................................................................................................................................26
1. Introduction
Context: Barbera Wine is recognized as a wine maker of high-end wines but it operates in a
rapidly changing environment characterized by fluctuating customer tastes, threat of competition
push by established players and movements in the macroeconomic factors. For Barbera to remain
and grow as a reputable producer of wines in the luxury segment it must therefore balance to the
changing dynamics while at the same time preserving the glamour of its brand (Barney, 2021).

Purpose: The purpose of this research is to carrying out a strategic analysis of Barbera Wine
with the goal to determine it position and potential opportunities for enhancement. The insights
will assist the company to make decisions it can take towards modifying its strategies and going
for profit making opportunities in order to achieve competitive advantage (Borden, 2021).

2. Methodology
Approach: This project was a systematic one which gone through an assessment of the business
environment around Barbera Wine and strengths within the company (Brown, 2022). The
methodology involved the following steps:

1. Inception: Barbera Wine stakeholders provided feedback on a sector to target and/or

project goals throughout the planning stage. This phase included setting goals, identifying
critical challenges, choosing approaches, and organizing time and resources. Thus,
customer and requirement expectations were aligned for the optimal project outlay.
2. Situation Mapping: This stage included drawing a fishbone diagram to provide
information about the market, stakeholders, and risks and opportunities. Threat and effect
assessments identified stakeholders' threats/interests to consumers, suppliers, and rivals.
The following maps showed Barbera wine its working environment (Grant, 2022).
3. Formal Review of the Environment: PESTEL and Porter's Five Forces were used to
analyze the external environment. PEST became Political, Economic, Sociocultural,
Technological, Environmental, and Legal. Porter's Five Force model defines competition
as risks from new players, buyers, replacement, and rivalry (Gupta and Singhal, 2023).
4. Internal Review: This step included evaluating Barbera wine's internal business,
resources, and skills. The company was analyzed from the business model, value chain,
 and Porter's model perspectives to identify its strengths and weaknesses, as well as its
operational and financial strengths and weaknesses.
5. Competitive Performance Review: Using the Strategy Canvas comparison, the
company's hierarchy may be compared against rivals on quality and pricing Turkoglu et
al. Here are some competitive advantages and shortcomings revealed in the research.
6. Recommendations: Based on the conclusions, tactical suggestions were developed to
solve present difficulties, manage middle-term possibilities, and create sustainable
growth conditions. Improved internet performance, product and service diversification,
growth into new markets, research and development, and ecological awareness were
some of these (Hill, Jones, and Schilling, 2022).

Project Diagram: A project diagram outlining the steps involved is provided below:

3. Analysis
Step 2: Situation Mapping
Rich Picture

Rich graphic was created to depict Barbera Wine's present position. This graphic shows the
primary players in the sphere and inside firm elements that might affect the business. Developing
the comprehensive image allowed identification of factor interactions and a broad picture of the
operating environment (Kapferer, 2023). It included elements such as:
The rich picture seem to be a meeting or more likely a mind mapping in regards to the future
vision of Barbera Wine. They include; leadership changes for instance a change in management,
modernizations, and products and brand new development. Possible recommendations may
involve incorporating new technologies into production, producing yet unestablished wine types,
and target foreign countries.
 The rich picture appears to be a visual representation of the organizational structure and
operations of Barbera Wine. Here's a breakdown of the key steps and processes involved:

1. Production:
  Division 1: Vineyards: The process begins with cultivating grapes in vineyards.

 Division 2: Wine Production: Grapes are harvested and processed into two types of
wine: Chardonnay (white) and Cabernet Sauvignon (red).

2. Bottling:

 Division 3: Bottling: The produced wine is bottled and labeled. The image indicates
three different product categories: Prime Label, Blue Label, and Table Wine.

3. Sales and Marketing:

 Division 4: Sales: The bottled wine is distributed to various sales channels.

 Division 5: Retail: A portion of the wine is likely sold directly through retail outlets,
such as wine shops.

 Division 6: Finance: This division oversees the financial aspects of the business,
including revenue, expenses, and budgeting.

4. Management and Leadership:

 Managing Director: Oversees the overall operations of the company.

 Head of Vineyards: Responsible for vineyard management.

 Head of Wine Production: Oversees the winemaking process.

 Head of Bottling: Manages the bottling and labeling operations.

 Head of Sales: Leads the sales team.

 Head of Retail: Manages retail outlets.

 Head of Finance: Heads the finance department.

Stakeholder Analysis:
Some of the activities conducted during the stakeholder analysis included the assessment of
needs, demands, power and responsibilities of entities that have some affiliation with Barbera
Wine. Key stakeholders included:

 Customers: On these customers, their preference, purchasing behavior and feedback was
done to evaluate market pull and satisfaction (Lynch, 2023).
  Suppliers: These included work safety and measurements on reliability, cost structures
as well as the quality of the input materials for evaluating supply chain efficiency of the
competitors.

 Distributors: They assessed their distribution power, their market coverage and their
suitability to meet the objectives of Barbera Wine (Mintzberg, Ahlstrand, and Lampel,
2023).

 Employees: It helped to assess their roles, the skills they possessed, and their
contribution so as to determine the organization’s internal strengths and weak points.

 Competitors: Common strategies and positioning of the competitors and the industry
rate cards were used for comparison to place Barbera Wine (Porter, 2021a).

Step 3: Formal Review of the Environment

PESTEL Analysis

The PESTEL analysis assesses the broader external environment impacting Barbera Wine
through six key factors:

 Political: Some of ways that the Barbera Wine may be impacted include government
regulations, trade policies and taxation concerning the wine business. For example,
 Barbera Wine imports are subject to tariffs or alterations in laws governing alcohol sales
and these affect costs and entry (Porter, 2021b).

 Economic: Some economic factors include the inflation rates, the value of currency and
the purchasing power of consumers, and these affect the purchasing of Barbera Wine
among consumers. This might prove unprofitable since there may be less disposable
income during the economic downtimes hence less sales (Rothaermel, 2022).

 Social: Demand-side considerations include people switching from typical wine brands
to organic and sustainable ones. Other societal issues include demographic shifts and
Barbera Wine consumption patterns (Rothaermel, 2022).

 Technological: Wine production technologies like automated bottling and enhanced

fermentation may boost efficiency and quality. Digital channels give expanded consumer
reach, affecting marketing methods (Rumelt, 2022).

 Environmental: Winemaking considers climate change and sustainability. Authorities

and buyers worry about water consumption, gas emissions, and eco-friendly farming
(Schoemaker, 2023).

 Legal: Labeling, health and safety, and intellectual property laws must be followed.
Legal difficulties and legislative changes may affect corporate plans and market entry.

Porter’s Five Forces Analysis:

Porter’s Five Forces framework evaluates the competitive dynamics within the Barbera Wine:
 Threat of New Entrants: Generally, the Barbera Wine has middle level barriers to entry.
However, as much as starting a wine business may involve buying or leasing of land,
equipment and a lot of expertise, the attractiveness of the market may encourage more
players and thus parity (Stokes and Wilson, 2023).

 Bargaining Power of Suppliers: Buyer negotiating power: Grape and packaging

suppliers have modest bargaining power. The cost and availability of quality inputs
impact production costs and profitability. Business partnerships with fundamental
suppliers determine supply chain stability (Thompson et al., 2022).

 Bargaining Power of Buyers: Consumers have more bargaining power since there are
more wines. Consumer preferences and wallets may push winemakers to make better,
cheaper Barbera Wine (Tovstiga, 2021).
  Threat of Substitutes: The threat of substitutes is moderately high since there are spirits,
beers and nonalcoholic products which can also attract consumer interest. Product
differentiation and point of difference can reduce this threat (Verbeke, 2022).

 Industry Rivalry: Industrial rivalry is stiff within the wine industry, as the market is
flood with new and prominent players. The idea of difference that is branding, quality,
and objetive propositions mark a wakeup call to win the today’s competitions (Walker
and Madsen, 2023).

Opportunities & Threats

Opportunities:

1. Market Rise New markets with rising wine consumption may create money.

2. Sustainable practise According to the aforementioned arguments, Barbera Wine may

create a market niche with sustainable production.

3. New technology, winemaking efficiency, and marketing technology may improve the
company's operations.

Threats
 1. Regulations and laws Operations and compliance costs increase with new or updated
alcohol manufacturing and sale rules.

2. The economy fluctuates Inability to respond to economic swings like consumer pocket
size may hurt sales and profitability.

3. Adverse weather may also reduce grape yields and quality, reducing product quality and
yields.

Step 4: Internal Review of the Business

Resource and capabilities matrix

Category Resource/Competency Strength Sustainability Competitive Advantage

(High/Medium/Low (High/Medium/Low)
)
Tangible Vineyards & Land High High Barbera’s unique terroir
Resources gives the brand
distinctiveness and premium
appeal, which is hard to
replicate.
Production Facilities Medium Medium Modern and high-quality
wine-making facilities that
ensure consistent product
quality.
Financial Resources Medium Medium Strong financial backing
supports growth initiatives
but is comparable to
competitors in the industry.
Distribution Network High Medium Barbera has an established
global distribution network,
allowing its premium wines
to reach exclusive markets.
Intangible Brand Reputation High High The luxury image and
Resources heritage associated with
Barbera give it a strong, rare
positioning in the market.
Heritage & History High High Barbera’s long-standing
history contributes to its
brand uniqueness, a powerful
resource difficult for
competitors to match.
Customer Loyalty Medium Medium Loyal customer base within
the premium segment,
though dependent on
consistent quality and brand
perception.
Sustainability Medium High Emphasis on
 Practices environmentally sustainable
practices aligns with
consumer preferences,
providing differentiation.
Proprietary High High Decades of specialized wine-
Knowledge (Wine- making knowledge and
making Expertise) techniques give Barbera an
advantage over newer
competitors.
Capabilities Innovation in Wine Medium Medium Ability to incorporate
Production modern technology in
production, though not as
innovative as some industry
leaders.
Supply Chain High Medium Efficient logistics and supply
Management chain management ensure
premium product availability
globally.
Marketing & Brand High High Strong marketing campaigns
Positioning reinforce its luxury image
and allow Barbera to
maintain premium pricing.
Customer Medium Medium Strong relationships with key
Relationship buyers and distributors,
Management (CRM) though more data-driven
approaches could be
beneficial.
Sustainability Medium High Barbera’s commitment to
Leadership sustainability can strengthen
its reputation, but continuous
improvements in this area are
 essential.

Business Model Analysis

The Business Model Canvas gives a logical way of evaluating Barbera Wine’s internal strategies
and external positioning. Key components of the business model include:

1. Value Proposition: Barbera Wine deals in excellent wines with accent on regional
difference and flavor. Despite its relatively young age, the brand focuses on traditions in
the making of wines, the highest quality of the product, and its appeal to lovers of wine.

2. Customer Segments: The target and potential clients include Barbera Wine consumers,
occasional and wine collectors and enthusiasts who want quality and niche wines.
Secondary segments may be restaurants, boutique retailers who would sell their products
to the affluent consumers (Walker and Madsen, 2023).

3. Channels: Target markets include online buyers, specialty and fine wine retailers, wine-
producing restaurants, and wine clubs. To boost market share, they may go online or
cooperate with distributors.
 4. Customer Relationships: The goal of cultivating relationships done by Barbera Wine is
achieved via provisions of customer service, loyalty as well as through organization of
events inclusive of wine tasting sessions as well as vine tours. Customer Relationship
Management affect the stability of the company and increases the percentage of the
returning clients.

5. Revenue Streams: Most of the firm’s revenues are from wine sales where it sells the
wines itself, to retailers or by putting a high price for rare or special wines. Like most
current bands, merchandise and wine related activities could be other sources of income.

6. Key Resources: Some of the Critical Resources include wine vineyards, production
facilities, talented winemakers and a good name in the market. Exclusive recipes of wine
blends and winemaking methods are other vital aspects of intellectual property.

7. Key Activities: Key activities include growing of the vines, processing of wine and
conditioning, assuring quality, promotion and selling of the wine. This company also
funds research and development in order to advance and keep high quality in its products.

8. Key Partnerships: They are major elements of production and hence have significant
influence on the quality of grapes purchased, bottling and packaging and the distribution
channel respectively. Partnership with sommeliers, opinion leaders, other industry
professionals can help make the brand more recognizable and credible.

9. Cost Structure: Fixed cost comprises the costs incurred in the maintenance of the
vineyard and other production costs, expenses from human resource, expenses in
promoting the product and getting it to the market among others. Purchasing high quality
resources and keeping operating costs as low as possible are two fundamental principles
to control expenditure and make the business profitable (Wheelen et al., 2023).

Strengths and Weaknesses

Strengths

1. Well-Known Brand Barbera Wine has a high market and consumer acceptance due to its
quality and art.

2. Premium wines made by competent winemakers set the brand apart from the
competition.

3. Good Production In the production cycle, winemakers and workers innovate and produce
well (Whittington, 2023).

Weaknesses:

1. Cost of production Highways of production need costly manufacturing procedures and

materials, raising prices and lowering profitability.

2. Small Market Share The corporation may disregard low-end markets due to high-end
market focus.
 3. Overreliance on vines Vineyards may also be a problem if weather or environmental
factors affect grape production (Wirtz, 2022).

Step 5: Competitive Performance Review

Strategy Canvas Analysis

The Strategy Canvas is a tool that is used to map the competitive forces that Barbera Wine is
facing as well as other rivals.

Factor Barbara Jacob Gall Industry

wine creek o average
Price 60 75 65 55
Brand power 70 90 80 50
Reputation 65 85 75 50
Awards 65 80 70 40
Wine quality 70 80 70 50
Discounts 60 50 70 70
Products 55 80 95 50
availability
Products 70 90 80 60
consistency

It shows touch points that define the nature of interactions between customers and the
organisation through the parameters of price sensitivity, product differentiation, and brand
image.
For Barbera Wine, the canvas highlights:

1. Quality: Barbera Wine has earned a higher quality than many of the competitors in the
market owing to premium quality and the ability to be made by artisans.

2. Price: Located in the higher territory of the market since most of its targeted products are
of high quality and expensive; this does not go well with individuals who have a low
tender for spending much on products.

3. Unique Offerings: It currently stocks wines that are exclusive and only available in
limited quantities to give it a competitive edge in the market.

4. Brand Prestige: Emphasis of heritage and brand name makes it have a competitive edge
to most of its rivals with comparatively unknown brands.

Competitive Performance Assessment

The high-end market group includes Barbera Wine due to its excellent product quality and brand
awareness. However, its high-end pricing approach may hinder its market share as other
companies provide lower items. As the firm specialized in unusual wines, new rivals often
appear, requiring Barbera Wine to constantly develop new goods to compete. The approach
should highlight its market advantage—quality and exclusivity—and identify methods to give
value to customers.

VRIO analysis

Resource/Capability Valuable Rar Costly to Organized to Competitive

e Imitate Capture Implication
Value
Luxury Brand Yes Yes Yes Yes Sustained
Reputation Competitive
Advantage
High-Quality Grape Yes Yes Yes Yes Sustained
Sources Competitive
 Advantage
Expert Winemaking Yes No Yes Yes Temporary
Techniques Competitive
Advantage
Distribution Channels Yes No No Yes Competitive
Parity
Customer Loyalty Yes Yes Yes No Temporary
Competitive
Advantage
Sustainability Yes No No Yes Competitive
Practices Parity
Market Research Yes No No Yes Competitive
Capabilities Parity

4. Recommendations

Horizon 1: brand quality

 Enhance Online Presence: Promote online presence through advertising methods and
transport the business into the online marketplace.
  Improve Distribution Channels: Retailers should increase and diversify their
distribution channels to cover a higher number of consumers.

Horizon 2: exporting to new market

 Product Line Expansion: Come up with new wines to meet new tastes while at the same
time developing additional pricier wines for the market.

 Market Expansion: Expand to new geographic markets that currently exhibit ever
increasing demand for wines of a higher class. Export to US and europe.

Horizon 3: Long-Term Initiatives

 Invest in Innovation: Invest in the establishment of research and productivity

enhancement to improve the product portfolio and introduce the production procedure
changes.

 Sustainable Practices: Embrace environmental best practices in production and

packaging so as to meet the market expectations and standards in vineyard hotel.

5. Conclusion
Analyzing the strategic factors of Barbera Wine Company it can be seen that it has a strong
background with vast development prospects. Therefore the company is in a position to develop
market opportunities, product portfolio and product pricing and distribution strategies that will
help the company gain competitive advantage and sustainable future performance. The proposed
recommendations provide a practical road map for dealing with the issues and with new
opportunities in the wine industry field.

6. Reference
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