Financial Accounting

Financial statements and interpretation of data included in it is very important for decision making. In
financial statements there are information regarding the company’s economic activities, stream of
transactions, reporting and accounting policies and other important information for shareholders. For
example if the bank wants to give credit, then bankers will check past information of the company – for
example how liquid it was, if it was able to fulfill suppliers requirements, if the company was able to
generate sufficient cash to finance its operation, what is the company’s main operation and how much
were generated from those sources. These are important for bankers or investors to have general
understanding of the company. Employers might be interested if the company will be able to pay their
salaries. Customers might find useful information regarding credit terms other customers were granted.
Past information is always important for decision makers and financial statements give a good view of
these data to analyze and compare those figures with other companies or industry averages or even
managers have possibility to better manage how to use and allocate resources.

Investments and Finance

First of all, in order to purchase their stocks in a good price, young company needs to be known. For this
reason, respective marketing campaign should be planned in order to acquire public awareness. Good
marketing campaign, especially in USA or UK (where the most known stock markets are placed) is not
cheap, especially for the companies based in foreign countries. After increased public awareness, they
should fulfill requirements of stock markets. For example, their financial statements should be prepared
in accordance with applicable reporting frameworks, information of past several years should be
available and etc. for preparing this information is also expensive. After that usually investment banks
are hired for advices, which is also costly and after that, there might be the risk that company will be
unable to gain desirable funds from IPO. Thus, where there are other good sources of funds such as
venture capitalists, business angels, crowdfunding or even loans, which are relatively cheap, companies
prefer to save money and time and refuse IPO.

Other source of “cheap IPO” is special-purpose acquisition companies, which are the companies with no
commercial operations and their main purpose is to raise capital through and IPO to buy existing
companies. This method is attractive for smaller companies because selling adds price to their company
and is able to make fast IPO as spacs provides guidance and experience. This method might be not so
desirable for investment banks, as they lose new customers due to the spacs, which have similar
experience and are able to provide guidance and experience to young or small companies. For regulators,
control of these kind of entities and confirmation of their compliance with ethical requirements might be
hard.

Marketing

1. As Vinomania is Georgian brand and want to gain international awareness, the company should
offer something which relates to Georgia. For example the company may offer Kvevri wine,
which is typical only for Georgia, they might add little glasses with Kvevri form in package,
which will take customers attention, or add Kantsi – Georgian national glass for wine. The
company also should take care of packaging as the first impression about the product comes from
packaging and it’s the first thing, which catches the customer eyes. They might add scenery of
 Georgian places on etiquettes. As the company is 30 years old, there might be risk that their
brand appearance is old, thus it would be good to hire a good designer in order to design new
logo, where Georgian values will be expressed. It will be good if the company will take
participation in international wine competitions. In that way, they will gain more awareness and
find new customers around the world. Also, at the beginning they might offer good discounts for
international counterparties. They should invest in marketing campaign through their
distributors. For example, they can pay to distributors to conduct good marketing campaign in
their own countries. They might have degustation stands in airports, where lot of tourists are
gathered and, in that way, introduce their own brand to the world.

2. USPs:
a. Exceptionally good taste of Georgian national wine
b. Georgian taste and heritage of 8000 years wine making history
c. Each bottle of wine made with quality and care
d. Diversity of different types of wine (red, white, rose, dry, sweet, semi-dry, Kvevri)
e. Competitive good price in relation with the quality
f. Exceptional packaging

Tamar Pkhakadze