Tohu Wines Company: Strategic Issues and Recommendations

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Executive summary
The research subject is on Tohu Wines Company a subsidiary branch of Maori Foundation. It
begins with an introduction, the literature review which shows an analysis of the strategic issues
for the company. This is followed by the proposed solutions and recommendations to improve
the current status of the company which are then followed by the conclusion. Finally, there is a
list of references from where the information documented was sourced.

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Contents
INTRODUCTION...........................................................................................................................5
WAKATU CURRENT BUSINESS ACTIVITIES.........................................................................5
CURRENT BUSINESS ACTIVITIES OF TOHU..........................................................................6
VISION AND GOAL OF TOHU....................................................................................................6
7S MODEL FRAMEWORK APPLIED TO (TOHU) ORGANISATION:....................................6
SHARED VALUES AND PRINCIPLES (Maori Values and Principles)......................................7
STRATEGY OF TOHU..................................................................................................................9
CRITICAL ANALYSIS OF THE FACTORS OF THE 7S MODEL.............................................9
PESTLE ANALYSIS AS APPLIED IN TOHU WINES COMPANY.........................................10
Political factors..........................................................................................................................10
Economic factors........................................................................................................................11
Environmental factors................................................................................................................11
STRATEGIC ISSUES OF TOHU.................................................................................................12
UPHOLDING MAORI FOUNDATION CULTURE...................................................................12
Critical analysis of the first strategic issue.................................................................................13
EXPANSION TO NEW TERRITORIES AND BRANDING......................................................14
Critical evaluation of seconds strategic issue using porters five forces.....................................15
USE OF LABOR-INTENSIVE METHODS IN PRODUCTION.................................................16
Critical evaluation of the third strategic issue............................................................................16

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SOLUTIONS, RECOMMENDATIONS, AND CONCLUSIONS...............................................17
Solutions and recommendations for the first strategic issue......................................................17
Solutions and recommendations for the second strategic issue.................................................18
Solutions and recommendations for the third and last strategic issue.......................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

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INTRODUCTION
Innovation and entrepreneurship are very essential in all areas of any major business.
Entrepreneurship is focused on economic amalgamation by identifying upcoming and trending
opportunities and thus enables resources to be redirected to the most viable channels of the
business. Firms need to be creative and innovative so as to ahead of their rivals in the industry.
Innovation is quite crucial as it aids a company keep up with what is trending and come up with
solutions for identified challenges.
Tohu is a Maori Winery company which operates under the umbrella of Kono which is a
food and beverage branch of the larger Wakatu incorporation based in New Zealand. It was the
first winery company owned by Maori Holdings. The corporation was originally founded in 1977
by the original landowners of the Tasman, Golden and Nelson bay regions. (Anderson, R. B.,
Wingham, Giberson, and Gibson, 2014).
WAKATU CURRENT BUSINESS ACTIVITIES
Their business is quite expansive and ranges from office buildings, water space, large
retail developments, marine farms, orchards and vineyards from where Tohu sources grapefruits
to make wine. (Spiller and Nicholson, 2017).
Wakatu’s success is largely attributed to their adaptability and innovation. This simply
means they are quite up to date with the changing needs of their customers and the business
environment.
However, the report will focus on Tohu Wines a subsidiary business of Wakatu
corporation. Tohu is in the beverage industry. The company has a large focus on exports
evidenced by its 86% export volume of production with its largest overseas market being the

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USA followed by Britain. However, it has also identified Asia a large market with potential with
China as their main focus. (Knight, et al., 2018).
CURRENT BUSINESS ACTIVITIES OF TOHU
Tohu wines exclusively deal in production, distribution, and sale of quality wine both
locally and internationally. The wine produced is sustainable in that they focus on Whenua range
which dictates the use of naturally grown grapes red wine production. Recently, they are also
using Manaaki range for their white label wine. (Thomson, 2015).
VISION AND GOAL OF TOHU
Their main vision is all about the sustainable production of their brands and also preserving the
indigenous culture of New Zealand. Manaaki simply translates to showing hospitality, giving and
sharing. On the other hand, Whenua translates to honoring the land which is achieved via
sustainable production, by use of the natural environment in grape growing and preservation of
the environment. (González-Chang, 2016). This means the wine produced by Tohu forms a
connection with its people and also all wine lovers who connect with the environment. They plan
to achieve their goal via collaboration in a bid to achieve a common goal. The company’s
guiding objectives are:
 Innovation and development.
 Integrity and identity.
7S MODEL FRAMEWORK APPLIED TO (TOHU) ORGANISATION: