INTL 728: Developing an International Business Plan - Ice Wine

This project presents a business plan for Canadian Ice Wine, focusing on launching its products in Thailand. It includes a starting balance sheet, financial projections based on sales estimates, interviews, and industry data, and assumptions regarding sales growth, cost of goods sold, variable and fixed costs, and cash sales. The plan forecasts an income statement, cash flow statement, and balance sheet for the first three years, considering a 30% corporate tax rate in Thailand. A break-even analysis is conducted to assess the viability of the business, considering gross profit, overheads, and turnover. The evaluation suggests that the company has high prospects in the Thailand market due to growing demand and limited competition.

Running head: DEVELOPING INTERNATIONAL BUSINESS PLAN
Developing International Business Plan
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1DEVELOPING INTERNATIONAL BUSINESS PLAN
Table of Contents
Background of the business plan:....................................................................................................2
Part 1:...............................................................................................................................................3
Question 1:...................................................................................................................................3
Question 2:...................................................................................................................................3
Question 3:...................................................................................................................................5
Part 2:...............................................................................................................................................7
Question 1a:.................................................................................................................................7
Question 1b:.................................................................................................................................8
Question 1c:.................................................................................................................................8
Question 1d:.................................................................................................................................8
Question 1e:.................................................................................................................................9
Question 1f:.................................................................................................................................9
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

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Background of the business plan:
The current assignment aims to formulate a business plan for launching Canadian ice
wine products in Thailand. The organisation is Canadian Ice Wine and it would be involved in
selling various types of ice wine products in the nation. The demand for ice wine has been
growing in the Thailand market and as a result, it would help the organisation to increase its sales
and profit margins. The main products that the organisation would sell in the market comprise of
Kittling Ridge Ice Wine and Brandy, Reif Estate Vidal Ice Wine, Angels Gate Snow Angel
Riesling Ice Wine and Lakeview Cellars Vidal Ice Wine (Barrow, Barrow & Brown, 2015).
The first section of the business plan would focus on preparing the starting balance sheet
of the organisation before the business operations are initiated in Thailand. In addition, the
assumptions made for carrying out the financial projections are depicted in this assignment as
well. Furthermore, the balance sheet statement of the organisation has been forecasted after the
income statement and cash flow forecast are made effectively.
The second section of the assignment mainly discusses about the break-even analysis in
the context of Canadian Ice Wine. Hence, the assignment would focus on dealing with the
feasibility of the business plan with the help of various financial tools and techniques.

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Part 1:
Question 1:
Question 2:
In order to conduct financial projections, the following assumptions are made:
 The sales projections of Canadian Ice Wine are based on estimated sales, interviews with
the owners and managers of the liquor stores, industry and government trade statistics
and population demographics. The sales volumes of Kittling Ridge Ice Wine and Brandy,
and Reif Estate Vidal Ice Wine are expected to rise by 20% and 15% respectively. On the

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other hand, the sales volume of Angels Gate Snow Angel Riesling Ice Wine and
Lakeview Cellars Vidal Ice Wine would rise by 10% and 25% per annum.
 For computing the cost of goods sold, the two items that have been taken into
consideration include direct materials and direct labour (Hastings, 2015).
 The variable costs that have been considered for this specific business constitute of direct
materials and direct labour, commissions and freight outwards. The variable cost per unit
is calculated by the total variable costs with the annual units produced (Slingerland &
Teng, 2017).
 It is further assumed that the units produced would be sold at the end of the year and
hence, the closing inventory for the first three years would be nil.
 The fixed costs that would be considered in this case include rent, depreciation, utilities,
insurance, lease, vehicle expense and advertising. These costs would remain fixed over
the year irrespective of the production level (Phillips, 2017).
 Canadian Ice Wine Company would mainly rely on cash sales in the initial three years of
operation, since 90% of the sales made to the customers would be made in terms of cash.
The remaining percentage of sales would be made in credit and it would be shown in the
current asset section in the balance sheet statement (Russell & Kellershohn, 2017).
 The corporate tax rate in Thailand is 30% and hence, the amount is deducted from the net
profit before tax to arrive at the profit for the year. However, the organisation is not
needed to incur any interest expense in the initial three years of business operations of the
organisation (Seccia, Santeramo & Nardone, 2016).
 The organisation would increase its investment in various fixed assets like building, land,
leasehold improvements along with machinery and equipment.

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Question 3:
Income statement for three years:
Cash flow statement for three years:

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Balance sheet statement for three years:

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Part 2:
Question 1a:

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Question 1b:
Question 1c:
Question 1d:

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Question 1e:
Question 1f:
Conclusion:
From the above evaluation, it could be found out that Canadian Ice Wine Company
would be involved in selling various types of ice wine products in the nation. The demand for ice
wine has been growing in the Thailand market and as a result, it would help the organisation to
increase its sales and profit margins. Therefore, various financial projections have been carried
out for assessing the viability of the proposed business plan. The sales projections of Canadian
Ice Wine are based on estimated sales, interviews with the owners and managers of the liquor
stores, industry and government trade statistics and population demographics. The prospect of
the organisation is estimated to be high in the market of Thailand due to the lack of availability
of competitors and growing demand of the products in the market.

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References:
Barrow, C., Barrow, P., & Brown, R. (2015). The business plan workbook: A practical guide to
new venture creation and development. Kogan Page Publishers
Hastings, N. A. J. (2015). Developing a Business Case. In Physical Asset Management (pp. 113-
124). Springer, Cham.
Phillips, R. (2017). The wines of Canada. Infinite Ideas.
Russell, I., & Kellershohn, J. (2017). Marketing Beer, Wine, Spirits, and Vinegar: Who Are the
Consumers? What Do They Want? How to Talk to Them so They Hear You. In Post-
Fermentation and-Distillation Technology (pp. 263-274). CRC Press.
Seccia, A., Santeramo, F. G., & Nardone, G. (2016). Risk management in wine industry: A
review of the literature. In BIO Web of Conferences (Vol. 7, p. 03014). EDP Sciences.
Slingerland, J., & Teng, L. (2017). Icewine, Appassimento and Canadian Wine Sales in Asia.
.