SinoDrinks Different Elements of Your Strategic Sourcing Plan Report Read the attachment and explain your thoughts based on the results you created for the

SinoDrinks Different Elements of Your Strategic Sourcing Plan Report Read the attachment and explain your thoughts based on the results you created for the different elements. Make sure that you explain what the information you discovered means especially when you review all of the elements together. Based on the elements that you crated, what recommendations would you make? Remember, there are no right answers for your analysis. You need to write base on how you synthesize your ideas and findings regarding the different elements of your Strategic Sourcing Plan and how it relates to the organization in question. The analysis section should be 3 to 4 pages long and double spaced. If there are any references that you use for your write up, please make sure those references are listed in APA format. 1. Vision and Mission Element
Vision
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
easily figure out the right path we are going for.
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
the end results.
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
find a lot of potential opportunity to support their mission to be accomplished. Standardize is
also part of their mission, once they standardize their sourcing process, sourcing become more
visible and stable and easy to operate.
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
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
important to an organization. Procurement involves supporting day to day activities by working
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
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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
because of the nature of the goods it is involved in.
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
considered by SinoDrink, working with assumptions and contingency plans.
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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.
Acquiring products from multiple producers or suppliers, just like SinoDrink, is
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 by the company.
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
any of these or all assumptions change.
3. Environmental Analysis
Business entities are vulnerable, especially as a result of external forces that might be out
of control of an organization. The external environment of a business involves; political,
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
external business environment might have for them.
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
objectives. SinoDrink should also consider conducting environmental analysis on different
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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
might interrupt the business processes of the company (sinodrink.com, n.d.).
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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1. To spread the Italian lifestyle
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
people who control the country’s GDP in the big-government profile.
2. To Enhance Promotion of regional relationship
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
company is objected to the continued strengthening of this relationship.
3. To become the most professional and comprehensive wine importer in China
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.
4. To become the official wine supplier in Italy
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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
well as the medium enterprises
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.
In conclusion, the progress of a specific company or business is determined by how
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
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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.
Building the Team
SinoDrink will be required to outsource from several winemakers; therefore, there is a
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
up with the Italian winemakers.
Market Research
Sourcing plans cannot be effective without conducting enough 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,
market research must be comprehensive since it involves different winemakers.
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
Sourcing requires organizations to leverage the power of negotiations. SinoDrink is a big
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
contracts with the future outlook.
Supplier Relationship Manage…
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