Strathfield College Pyt Ltd

Project Topic:
Develop and implement a business plan

Assessment 2
MacVille’s coffee

Submitted to:
Your Professor’s good name

Submitted by:
Your good name

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Objective of report:
Review organisations vision and mission by reviewing case study and describe
organisation planning process by providing inputs wherever possible.
Scope of report:
Vision and mission of organisation, current approaches to obtain the objectives of
organisation and organisational values.
Existing Vision and Mission
Vision
To provide customer best café going experience
Mission
To open additional café in NSW and Queensland and to become national brand and
be recognized as an integral part of hospitality industry.
Current Approaches
 Engaging customer and customer research
 Developing and improving product and services
Revised vision and mission
Vision
To be more innovative and find new ways to increase efficiency of processes and
effectiveness of customer solutions.
Mission
To embrace strategic alliance and seek out new partnerships.
Organisational values
 To identify community needs.
 Participate in local community.
 Donate certain % profit to community.

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Notes on meeting with Stakeholder
 Development of new areas which were not recognised at the time of
previous planning.
 To be innovative and motivate self-directing teams.
 To participate in community.
 Develop strategic alliance and partnerships.

ENVIRONMENTAL ANALYSIS
PEST ANALYSIS:
It consists of analysis of political, economic, social and technological environment
of organisation.

Political:
 Tariff on import of espresso machines will be removed.
 Strong possibility of introduction to impose carbon tax on all energy
intensive products used for commercial use.
Economic:
 Strengthen of Australian dollar against trading partners in coming years.

Social:
 Lifestyle trend to eat out is becoming more affluent and frequent.
 Steady population growth rate.

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Technological
 New espresso machines are developed which use 30% less energy.
 Home market for espresso machines is experiencing high growth.

SWOT ANALYSIS

Strengths Weaknesses

 Good reputation after sale  Poor performance of contracted

services
 Excellent advertising and
marketing mix.
 State of art Management
information system.
delivery company.
 Lack of experience personnel to
deal with import and custom.

Opportunities Threats

 Use of internet for  Raising interest rates could

advertisement.
 Withdraw of competitor from
new Sydney market.
 Increase in population growth
rate.
decrease disposable income
 Nufix.inc a global corporation
entering in espresso machines
and bean market.
 Bean ex coffee supplier is
entering in espresso machine
market.

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VALUE CHAIN ANALYSIS:
Inbound logistic:
Lack of experience personnel for custom and importation.
Operations:
State of art Management information system provides for internal control and
strategic planning.
Outbound logistic:
Contracted Delivery Company is not able to deliver machines on time due to fast
expansion plans.
Sales:
Marketing and sales department are doing quite well and are strong points for
profit well massage can be expanded using internet.
Service:
Macville enjoys good reputation for after sales services to customers.

Existing / potential competitors:

1. Nufix Inc.
It is shifting from instant coffee to espresso machine and coffee.
Strengths: Marketing, Finance and Human resources.
Weakness: Difficulty in adopting to need of niche market.
2. Bean ex
Coffee bean trader is going to import expresso machine for their wholesaler clients.
Strengths: Easy entry to market.
Weakness: No established service department to provide after sale services to
wholesale clients.

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Potential alliances:
As required in tenders

1. Business name: Home espresso trades

Description of business (includes vision of Macville):
To sell espresso machines to home customers in Sydney.
Description of joint business: Shared space in four trade fairs.
Strengths: Home consumer market compliment commercial consumer market.
Weakness: Alliance also focuses on non-hospitality sector.
Risk:
 Partner not fulfilling financial commitments.
 Partner access to Macville trade secrets.
 Association with non-industry partner may impact negatively on customer
base.
2. Business name: Ambrosia coffee roast
Description of business: Sell all grades of coffee beans.
Description of joint venture business: Share of outdoor advertising cost at café
outlets.
Strengths: Sharing of client base Weakness Product image is commodity based.
Risk:
 Association with poor quality brand.
 Long term signage of alliance.
3. Business name: Java Estate
Description of business: To sell quality Arabica coffee beans in all states of
Australia.
Description of joint venture business: provides espresso machines to clients at no
charge.
Strengths: 100% committed to hospitality and coffee bean market.

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Weakness: Other coffee bean supplier may not recommend Macville coffee
machines with this strong alliance.
Risk: Concern over outstanding amount

STRATEGIC PLANING (PROJECT PLAN BREIFING)

Organisation Objectives
 To sell and service espresso machines in all states of Australia by accepting
java estate tender and to look for warehouse opportunity in other high
volume estates.
 To increase profit margin by 10% from benchmark set in 2010.
 To establish Macville brand recognition in key markets in next five years.
 To reduce energy wastage by 10% from benchmark set in 2010.
Organisation objectives and strategies to achieve objectives

Objective1.
To sell and service espresso machines in all states of Australia by accepting java
estate tender and to look for warehouse opportunity in other high volume estates.
Strategies (In priority order)
1- Sign action and establish strategic alliance with Java estate.
 KPI Plan: To install 200 machines per annum.
2- Establish Macville warehouse.
 KPI Plan: To open warehouse in Melbourne after Sydney opens for
business.
3- Set agents in other states and outsource maintenance contracts.
 KPI plan: Set agents in other states and outsource maintenance
contracts in South Australia.
Parties responsible:
 Project manager

Objective 2
To increase profit margin by 10% from benchmark set in 2010.
Strategies (In priority order)
1- Instigate bulk buying negotiations to reduce prices of suppliers.
 KPI Plan 100% purchases by bulk load.
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 2- Operate all departments at optimum capacity and productivity.
 KPI plan wages to turnover ratio of 12.5%
Parties responsible:
 Purchasing manager
 Operation manager

Objective 3
To establish Macville brand recognition in key markets in next five years
Strategies (In priority order)
1- Establish social and internet network marketing.
 KPI plan 1000 clicks on the website per day.
2- Join with java estate in cobranding cups and banners
 KPI plan100% café using our machines use our cups.
Objective 4
To reduce energy wastage by 10% from benchmark set in 2010.
Strategies (In priority order)
1- Set up innovation and reward program.
 KPI plan 25 suggestions and 6 innovations introduced every year to
reduce wastage.
2- Develop and implement energy use awareness program.
 KPI plan kW per person use to drop by 10 kw.
Parties responsible:
 Research and development manager
 Human resource manager

Overall progress
Organisation is performing well profit margins have already increased by 2% in
last two years as bulk buying’s were instigated at earlier stage due to initial
increase in demand. Marketing objectives set are already achieved using, social
internet and networking marketing strategies. However strategies are not
implemented properly in Northern Territory organisation is facing difficulty in
hiring agents and maintenance contractors. Energy reduction strategy working well
however it was implemented too late which resulted reduction in energy to only 12
kw per person.

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Improvements
Increase pay rate in Northern territory to attract experienced agents and machine
maintenance contractor. To increase profit margin warehouse should be open at
Melbourne at earliest because it is running at expensive agency model.