BSBMGT616 Develop And Implement Strategic Plans Sample Assignment

REVIEW COMPETITORS / ALLIES

NUFIX Inc.

The company is shifting from instant coffee into bean machine market. The resources they would have at their disposal in marketing, finance and human resources could be a serious threat to MacVille’s plans. However, they would still struggle to gain a foothold in a market that already has a strong supplier/buyer allegiance, with most stretching over many years. Global player’s like Nufix Inc. would have difficulty to adapt to the needs of niche market buyers.

BeanEx

BeanEx is a large coffee bean supplier that has recently started importing espresso machines for their customers. There is talk of them selling the espresso machines as wholesalers. They recently have easy access to markets with their coffee bean trade, but they have no established service arm to help wholesale clients maintain the machines that they purchased

Review of existing potential allies

Home Espresso Traders

Selling consumer home espresso machines to the home market, only in Sydney, and incorporating other digital home entertainment products.

Ambrosia Coffee Roast

Sell all grades of coffee bean to supermarkets and hospitality outlets around Australia

Java Estate

To sell quality Arabica roasted coffee beans to all state of Australia

Summary Notes

Summary statement of potential allies and a statement of their alignment with organisational values  

Summary statement: MacVille’s vision is to become a national brand, be accepted as an integral part of the hospitality industry and perceived as a key component in the success of hospitality establishments, both large and small. Their mission is to provide espresso coffee machines that is efficient, reliable and sustainable to the customers, who in return reward the company with profits. Their organisational values for stakeholders are about stewardship and professionalism. For people, encouraging self-directed teams, cultivate leadership, and maintain high levels of safety. Externally, they are committed to wise environment practices and offering meaningful value to customers.

MacVille’s is seeking alliance and partnership for cooperative venture that is aligned with their vision, mission, values. The company has received three tender submissions from these companies, Home Espresso Traders, Ambrosia Coffee Roast and Java estate.

Home Espresso Traders sells consumer home espresso machines only in Sydney, not solely focused on the hospitality market, association with non-industry partner may have a negative effect on MacVille’s customer base with a Cost benefit analysis showing $10,000 profit for the year and break even after two shows.

Ambrosia Coffee Roast sells all grades of coffee bean to supermarkets and hospitality outlets around Australia, besides that it is committed to the coffee bean industry. However, it has some concerns with sharing information. Risk with poor brand association. Cost benefit analysis shows profit is $15,000 return for the year, and it breaks even after 20 cafes.

Java Estate vison is to sell quality Arabica roasted coffee beans to all states in Australia, the company is 100% committed to hospitality and coffee bean market. They will provide MacVille’s espresso machines to client at no charge. MacVille’s cost price for delivery and installation of the machine then pays the remainder of the purchase on a 12-month repayment scheme. Cost benefit analysis shows profit is $100,000, break even after 80 machines sold. 

Among the three companies who have submitted tender, Java Estate is in alignment with MacVille’s.  MacVille’s vision is to be an integral part of the hospitality industry. To achieve this vison, they need a partner who is focused in the industry, Java Estate is 100% committed. Java Estate sells quality Arabica roasted coffee which is in alignment with MacVille’s. Both companies are aware of the importance of good quality product for their consumers.

Summary notes from the meeting with supervisor

During the meeting, I had with my supervisor, it was confirmed the above Analysis of the organisational environment and potential competitors and allies is complete. Also, both my Supervisor and I have concluded on which company MacVille’s will have alliance and partnership with.

Assessment 3

Executive summary

The main purpose of this report is to develop a strategic plan for MacVille’s to achieve its organisational objectives, mission and vision whilst also demonstrate its values. The company is currently embracing strategic alliance and partnership with Java Estate Company that supports and promote MacVille’s mission, desired outcomes and strategies.

The recently conducted PEST analysis draws attention to the fact that there is a lifestyle trend towards eating out more frequently as the population ages and becomes more affluent, and higher-than-expected growth in the economy is predicted, because of a resource boom, these environmental factors will allow MacVille’s to increase its sales and profits and eventually become a successful business entity.

MacVille’s organisational objective is to become a national brand and integral part of the hospitality industry. MacVille plans to achieve this within the next five years.

Introduction

MacVille’s is in the business of providing espresso machines that meet the efficiency, reliability and sustainability needs of the client. Their vision is to become an integral part of the hospitality industry.

The operation of MacVille is an area of a strong value-add, with the state of the art Management Information System, forming part of MacVille’s infrastructure. The company has excellent marketing and sales strategies.  MacVille’s customer service is also a strong point for them. The company has a formidable reputation in the hospitality field.

However, outbound logistics is an area that needs to be improved.  The company relies on a three-year contract with a delivery firm to deliver its goods to customers. This is a major setback for MacVille’s.

MacVille’s is very much concerned about its competitors which post a serious threat to MacVille’s in achieving its objectives. However, a strategic alliance and partnership can help MacVille to achieve these objectives.

Vision

Within the next five years, MacVille plans to become a national brand, and will be accepted as an integral part of the hospitality industry, perceived as a key component in the success of hospitality establishment, both large and small.

Mission

MacVille’s mission is to sell and service espresso coffee machines that are efficient, reliable and sustainable to the hospitality clients, in every state of Australia.

Organisational values

MacVille’s values have been the same for as long as the organisation has existed. For their stakeholders, it has always been about stewardship and about adhering to professional and moral standards of conduct in all that they do, for their people, the company is committed to encouraging self-directed teams, cultivating leadership and maintaining high levels of safety. Externally, MacVille’s is committed to wise environmental practices and offering meaningful value to their customers.

Strategic objectives

• To sell and service MacVille espresso coffee machine in every state of Australia
• To increase profit margins by 5% in the next five years
• To establish the MacVille brand recognition with their strategic partner in the key markets within the next five years
• To reduce waste and energy use by 10% within the next five years.

Market analysis

Maxville’s aims to provide and deliver espresso coffee machine to both small and large businesses, and is currently looking at expanding the market through the partnership with Java Estate.

The company has identified two competitors in the market. MacVille has also completed an analysis of these two competitors, and believes that it has a competitive edge in the form of a product that will challenge current market share.

Competitors

NUFIX Inc. - The Company is shifting from instant coffee into bean machine market. The resources they would have at their disposal in marketing, finance and human resources could be serious threat to MacVille’s plans. However, they would still struggle to gain a foothold in a market that already has a strong supplier/buyer allegiance, with most stretching over many years. Global player’s like Nufix Inc. has difficulty adapting to the needs of niche market buyers.

BeanEx- A large coffee bean supplier that had already recently started importing espresso machines for their customers. There was talk of them selling the espresso machines as wholesalers. They recently had easy access to markets with their coffee bean trade, but they had no established service arm to help wholesale clients maintain the machines that they purchased.

A PEST analysis has been conducted to inform MacVille’s both the internal and external factors that affects the company’s failure and success. It also gives an overview of the businesses current position and evaluates the business environment that allows the company to make a strategic decision.

Trends

There is a lifestyle towards eating out more frequently as the population ages and become more affluent.

PEST ANALYSIS

Product and services

MacVille sells and services espresso machines. MacVille supplies its products to its customers through a contracted delivery firm. The company is currently looking at alliances and partnership that support and promote their mission and vision.

MacVille’s strengths of product/service

• Provide espresso machines that meet the efficiency, reliability and sustainability needs of the customer

Adhere to professional and moral standards of conducts in all that they do. Committed to encouraging self-directed team, cultivate leadership and maintain high levels of safety. Committed to wise environmental practices and offering meaningful value to the customers

• Never afraid to try new ideas and concepts
• State of the art Management Information System (MIS)
• Excellent marketing and sales strategies
• Good reputation on customer service

Weaknesses of product/service

• Lack of experienced personnel in import and customer operations
• Relies on a three-year contract with a delivery firm to deliver goods to customers.

Threats on product/service

• Rising interest rate that are predicted for the coming years could impact negatively on the disposal income of coffee-drinking patrons
• Competition such as Global Corporation Nufix Inc. and BeanEx.

Opportunities

• Moving into the new Sydney market, where a bulk of espresso machines are sold each year
• Strategic alliances with coffee bean suppliers, where market penetration could easily be achieved and cost of advertising and services could be shared.
• Keen to pursue strategic alliances as part of its objectives
• Alliance and partnership with Java estate

Risk analysis

Strategies to achieve objectives

Objective 1.

To sell and service MacVille espresso coffee machine in every state of Australia

• Through alliance and partnership with Java Estate
• Excellent marketing plan that illustrate a product and service that is innovative.
• Gain stakeholders support to achieve objectives

Provide training and development for staff to ensure excellent customer service resulting to customer retention and gain potential customer interest across Australia.

Objective 2.

To increase profit margins by 5% in the next five years

• Increase productivity of the staff - recognise and reward staff contributions with staff performance reviews, and teach those sales skills and how to upsell products so customers make multiple purchases at one time.
• Survey customers about the product and services
• Use market research to determine how likely you can achieve the objective
• Customer service - improve your customer service and develop a staff training program
• Sell product and services through social media

Objective 3.

To establish the MacVille brand recognition with our strategic partner in the key markets in the next five years

• Provide great customer service
• Build an excellent marketing alliance with Java Estate

Objective 4.

To reduce waste and energy use by 10% within the next five years.

Reducing waste:

• Reduce—Avoid waste-look for ways to produce and use goods that stop waste being generated, choose products that can be used productively, recycled locally, and have minimal packaging.
• Re-use—Re-use containers, packaging or waste products.
• Recycle—Recycle waste material into useable products.
• Train staff about the above strategies.

Reducing energy consumption:

• Swift off light in empty room and use daylight where possible.
• Switch computers off when not required
• Purchase energy efficiency rated equipment when replacing items.
• Educate staff the importance of saving energy and ways to reduce energy use.

Action plan

Monitoring and evaluation

A good performance management system works towards the improvement of the overall organizational performance by managing the performances of teams and individuals for ensuring the achievement of MacVille objectives.

Performance management methods allows managers and the organisation to identify good and bad performance of an individual or a team. An individual or team that is performing well must be given a recognition such as, certificate of employee/team of the month, and or a voucher to inspire them to maintain good working performance. Individual or a team that is under performing must be provided with appropriate training, a buddy system or mentoring. Managers must motivate them and assist them in their performance development

Conclusion

MacVille is a company that sells and service espresso coffee machine to consumers and be known as a national brand across Australia and an integral part of hospitality industry soon, the company has four strategic objectives which are achievable with the right strategic plans on how to achieve them.

One of the strategies is to embrace strategic alliance and seek out partnership that support and promote the company’s vision, mission and organisational values, with this partnership, MacVille will have a better chance of being successful and achieve their vision. Alliance with Java Estate will be beneficial both financially and customer in service aspects of the company. Java Estate commitment to hospitality industry will ensure that MacVille objective to be a national brand will be achieving.

MacVille will also succeed through efficient and effective marketing strategy, the use of social and local media will allow the company to be known and recognise easily to the public and market. Effective and appropriate communication methods must be implemented to ensure everyone understand their role and responsibilities in achieving the organisational objectives. Staff training and development are recommended to ensure their skills and knowledge is up to date and ensure they can meet their KPI.

Meeting notes

It is to be noted the Strategic plan for MacVille was formulated and completed accordingly. The plan was further discussed with the CEO and have gained endorsement from the Board

Assessment 4

Objective 1 – To sell and service MacVille espresso coffee machines in every state of Australia within the next five years.

Objective 2 – To increase profit margins by 5% within the next five years.

Objective 3 – To establish MacVille brand recognition in our key markets within the next five years.

Objective 4 – To reduce company waste and energy use by 10% from benchmark within the next five years