Strategic Objectives for MacVille

This document discusses the strategic objectives for MacVille as discussed in the board meeting. The objectives include expanding sales nationwide and increasing profit margins.

Running head: ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT
Advanced Diploma of Leadership and Management
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Task 1
From: General Manager
To: The Stakeholders
Subject: Mission/ Vision Review
Dear Stakeholders,
Macville has been one of successful import/ export business centre in Sydney in last two years.
The company has been known for providing espresso coffee machines that is known to meet
reliability, sustainability and the efficiency needs of the clients. The existing vision and mission
of the company lay in its stewardship and about its adherence to the moral and professional
standards in whatever the company does. Besides, the company is also committed towards
encouragement of self directed teams through cultivation of leadership and maintaining higher
safety levels. The company is also committed toward wiser environmental practices and offering
of meaningful value to the customers.
After having conversation with one of the board members, it is well understood that the company
not have a bright future but also have the capability of becoming the national brand. With the
ability of serving the entire nation with sophisticated and classy coffee machines, the company
has steered clear that the success is not difficult to achieve. The review of the records and the
statements of the previous year show that MacVille acts as one of the potential market holders
having immense business prosperity since it considers that generating revenue is not the sole
concern but it is also vital in providing required services to all the customers. The large chain of
customers of MacVille is believed to be given best service with best products.

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As far as the current approaches are concerned, MacVille has been maintaining the top values.
Till the time, employers and the stakeholders has been working under same management with
higher standards and have remained aligned with the existing vision and mission. The
stakeholders have always been nurtured by morale of MacVille and have therefore learnt in
adhering to policy and compliance. The values of the company have enabled the stakeholders in
cultivating their talents that have encouraged them with the opportunity of having self directed
teams while maintaining higher standards. In other words, Macville tried to offer the customers
best possible values and service. There was hardly any change in the vision and mission of the
business flow of company for closer to two years although there has been formulation of fewer
strategic changes. These changes have been vital in bringing about a change in total system. The
vision and the mission of company should reflect change in strategy for carrying on best services
brought to customers.
Adding newer systematic changes along with incorporation of newer trends in serving customers
have been essential. As stakeholders are provided the opportunity of running self directed team
they are therefore believed to incorporate innovation into the system. Having served the older
ways the customers would remain glad in welcoming newer changes. Evaluation of the newer
processes would provide rooms for not only better thinking and improvement but also planning
and better customer service. There have been instances when an incorporation of newer idea and
proper planning has been expected. In other words, it was long lasting expectations of customers
who have been eagerly waiting for changing the system. There it became long lasting
expectation of customers who have been eagerly waiting for bringing about a change in system.
Therefore, it became necessary in raising the standards by striving towards better and drive
towards the best achievement. Here comes in the need for innovating newer ideas and planning

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with the alliances and partnerships that would be eager in promoting the thoughts and raising the
standards over time.
The actual need for incorporating innovation let to the revised vision and mission of the
company towards innovation and searching for newer means for improving the efficiency of the
process and the effectiveness of the customer solution. The mission has also been to constantly
challenge the methods and ask for ways that would not only improve but simplify the business
and try newer concepts and ideas. Mac Ville also had the mission of embracing the strategic
alliance and seeking out the newer partnerships that promoted and supported the desired
outcome, mission and the strategies.
Given, the current need of Mac Ville to identify more closely with community served, it became
necessary for the revised vision and mission to incorporate the aspect of corporate social
responsibility that closely identified the community it served. Corporate social responsibility
(CSR) represented a self-regulatory business model that aided the company to remain
accountable socially not only to itself but to the public and the stakeholders. Implementation of
CSR policies as a part of the company’s mission would not only help the company in becoming
active participants within local communities and donate percentage of their profits for the
betterment of the community.
The organizational values required for supporting the vision and mission of the company would
include recognition of the crowd that the company is working with. This implies anticipation of
surrounded people. The management can also promote a favorable culture of innovation by
bringing about a change in leading and interacting with the employees. The ways of defining
leadership responsibilities, different systems of management and the ways of coordinating and

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integrating the management practice can be adopted for supporting the revised vision and
mission. Besides, the company should engage itself in the customer and customer research and
development and improvement of quality and product. MacVille could also support the revised
vision and mission statements through expansion of the operations across the Queensland and the
New South Wales and thereby create a higher performing organization. As far as the corporate
social responsibility is concerned, it is a voluntary commitment of the business organizations for
taking account and aligning the interest with the customers, employers, environment,
community, shareholders and all the relevant parties. The organizational values of Macville in
supporting this vision might range from donating substantial amount of money to the nonprofits
and implementation of the environment friendly policy within workplace. Corporate social
responsibility is not only important for the employees and the companies alike.
Your’s sincerely,

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Task 2:
MacVille has been operating as one of the leading espresso coffee machine providers to
the hospitality industry in Sydney. The company has revised its mission, vision and objectives to
gain a competitive advantage in the industry. In order to fulfill this purpose, the company must
analyze the internal and external environment and review the existing and potential competitors
and based on the analysis, new strategies should be developed.
PEST analysis
This framework is used to analyze the external factors, that is, political, economic, social
and technological, which cannot be controlled by the company.
Political  Australian government is focusing on carbon tax to ensure
sustainability and that enables the company to use energy
efficient products, which is aimed to increase profitability.
 There will be planned changes in trade, in which tariffs on
imported goods, including espresso coffee machines will be
removed as per free trade policy
Economic  Due to resource boom, higher-than-expected economic growth is
expected in coming years
 Strengthening of AUD against the international trading partners
is a concern as that would make their imports costlier and hence,
could affect the exports
Social  Australia will experience a steady population growth, from 22

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million in 2010 to 36 million in 2050.
 There is steady growth in the home market for espresso coffee
machines
 The lifestyle trend of eating out is increasing among consumers
Technological  New espresso machines are being developed, which consume
30% less energy for operating and also include more innovative
and efficient heat exchanger
SWOT analysis
This analytical framework is used to examine the internal environment, that is, strength
and weaknesses of the business along with its opportunities and threat in the market.
Strengths  High quality customer service
 Strong brand image in the market
 State-of-the-art Management information system (MIS) under
infrastructure
 Strong internal control in finance and accounting
 High quality marketing and sales
Weaknesses  Inbound logistics is a weak point due to lack of experienced personnel
in the importation and customs operations
 Inefficient human resource management causing delay in services
 Outbound logistics is also not adequately efficient, with frequent
delays in delivery of goods to the customers due to lack of appropriate

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vehicles
Opportunities  The market for espresso coffee machines are expanding in Sydney and
a major but ineffective competitor has withdrawn.
 Strategic alliance with coffee bean suppliers across the world increases
opportunities for easy market penetration with shared costs of services
and advertising
Threats  Increasing value of AUD
 Increasing global competition and disposal in the company
 Entry of Bean Ex Company in the espresso market
 Nufix Inc. is shifting from instant coffee to espresso coffee machines
 Prediction of higher-than-expected growth in the economy
Existing/ potential competitors and Allies:
1. Bean Ex
This competitor of MacVille will be importing espresso machines for the wholesaler clients.
2. Nufix Inc.
This company is shifting its business from instant coffee making and selling to supplying
espresso machines
Nufix Inc. Bean Ex
Company profile Global corporation that deals
with espresso coffee beans for
Large coffee bean supplier in
the market

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the customers
Strength New business started from
instant coffee supplies and
they moved to coffee beans
Large bean supplier venturing
into the business of importing
espresso machines for
wholesaler customers
Weakness It has no established service
arm to help the wholesaler
clients.
It is unable to maintain the
machines purchased by them.
It is struggling to gain a
foothold in the market where
there is already strong
buyer/supplier allegiance.
It is also facing difficulties in
adapting to the needs of the
niche market buyers.
MacVille’s position The possible strategic alliance with the above companies:
Nufix: this company deals with both the coffee beans as well as
espresso machine marketing
Bean Ex: this company is unable to maintain the wholesale
business and marketing but could be probable alliance as it is
venturing into the business of importing new espresso machines
Review of the potential Allies
Home Espresso Trades
This company sells home espresso machines in the domestic market of Sydney for
individual consumers and not for commercial purpose and also incorporating other digital home

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entertainment products. The strength of the company lies in the fact that it covers the espresso
machine market, complementing the commercial market and the weakness is it works with a
strategic partner which is not solely focused on the hospitality industry.
Ambrosia coffee Roast
This company sells all grades of coffee beans to retail consumers, hospitality outlets and
supermarkets in Australia. It shares the cost of outdoor advertising for restaurants and cafes with
shared branding of umbrellas and barriers. The company operates in the coffee bean industry but
it is apprehensive about sharing information by citing intellection property protection. Product
image is more commodity based and not quality based.
Java estate
The above mentioned company sells high quality Arabica roasted coffee beans in all over
Australia. It provides MacVille espresso machines to the clients at no extra cost. It pays
MacVille the cost price for the delivery and installation of the machine and pays the reminder of
the purchase price on 12-month repayment program. It is a nation-wide partner for MacVille
which is totally committed to the hospitality and the coffee bean market, however, this strategic
alliance is not encouraged in the market by other competitors.
Summary
From the meeting with the supervisors, it has been noted that in case of MacVille,
inbound and outbound logistics are two major problems. Not only the supply system of raw
materials is inefficient, but the delivery of final products also faces problems. Final agreement
was made with the contract delivery firms to deliver the raw as well as final products to the
customers efficiently. More effective Management information system should be incorporated as

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a part of their infrastructure. For more efficient strategic or corporate planning, strong internal
controls in the finance and accounting must be maintained. Along with that, the company should
focus on innovation on the product range and implementing improved CSR policies in their
revised mission and vision. It should also focus on its strengths such as technological
developments that help to reduce costs, digital marketing techniques and high quality customer
service which helped MacVille to earn its reputation in this field of business.

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Task 3:
1. Strategic objectives based on Board minutes
As per the minutes of the Board meeting, MacVille should follow four objectives. CEO
of the company, Patricia Mees, announced these four objectives that could help the company
achieve sustainable growth in the next 5 years. The objectives include:
1) To sell and serve the MacVille espresso coffee machines in all states of the nation. This is
the top priority of MacVille as that would imply the acceptance of the Java Estates
tender. The Sydney warehouse is established and hence, MacVille should focus on
developing warehouses in other high-volume states. The operations and warehouses in
other states can be managed by agent networks and outsourcing the maintenance.
2) To increase the profit margins by 5% in the coming 5 years. It is expected to occur
naturally as sales will be increased and that would allow for improved price negotiations
with the suppliers and getting all the departments for making optimum use of the human
resources.
3) To establish brand recognition in the major markets of the untapped geographical regions
in the next 5 years through new technologies, and co-branding with the strategic partner.
4) To reduce the wastes and energy usage by 10% within the next 5 years by adopting
various sustainable technology and equipment. Different awareness and education
programs and the incentive rewards for the innovation activities or ventures will be
encouraged to exploit the growth opportunities in this market.

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2. Strategies for each objective
The management of MacVille has set short and long term business objectives to achieve
sustainable growth for the company. To achieve these objectives, various strengths of the
company are required to be united together. Along with that, the company also needs to assess
the external market opportunities carefully and utilize those to the maximum capacity. To
achieve business success, the company needs efficient synchronization among all the operational
departments, such as, human resources, research and development, finance and accounting, sales
and marketing etc. Strategic plans are those that bring together various resources and capabilities
to their maximum potential which leads to increased production and profit of the company in the
long run. These are very critical for any organization. Hence, by analyzing the objectives of the
company, it can be said that MacVille should adopt different strategies that would address each
of the objectives in a precise manner. It should address the need for an effective supply chain for
expanding the business of spreading the product across each state of Australia. It should also
adopt rigorous and extensive marketing techniques to reach out to the target customers across the
nation. Digital marketing should be adopted for effective marketing in all states. It has made
strategic alliance with Java Estate to provide high quality coffee beans along with highly
efficient espresso machines to the household as well as commercial users which will help the
company increase its revenue in the next 5 years which is a strategic objective of the company.
MacVille should develop strategies by reviewing the strengths and weaknesses of the
organization and by aligning those with the competitors in the market. The strategic decision is
taken in the core aspect of the investment portfolios, human resource management, market risk,
and implement effective changes. The strategies will be prepared as per the internal business
position and the external environment.

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As per the generic strategies by Porter, a company can enter a new untapped market or develop
its business in an existing market by penetrating into the competitive scenario. In the given
scenario, MacVille will expand its business in the new markets across geographic segments and
they will try to increase the revenue 5% in the next 5 years. The company will also introduce
energy efficient equipment that reduces the energy consumption by 10%. Thus, the company will
not only take expansion strategy in the new markets through innovation, but they will also focus
on the implementing more effective CSR activities in their new strategies.
In the table below, the list of strategies, time frame for achievement of the objectives,
responsible authority for each strategy and performance indicators are listed.
Business
objectives
Prioritised list of
strategies
Timeframe
for
achievement
of objectives
Responsible
authority
for each
strategy
Performance
indicators
1. Expand in
untapped
new
markets
across all
states in
Australia
 Increase in the
marketing
approaches
5 years Marketing
and research
and
development
head
Raise in the
revenue over
the time
period in
particular
markets of
Australia
2. Increase
the overall
revenue
by 5 %
 Motivation of
the employees
for effective
increase in
sales
 Introduce
newly
designed or
innovative
products
offered to the
target market
5 years Marketing
and research
head, human
resource
department
head
Increase in
customer base
and upcoming
orders.
3. Build  Process 5 years Human Increase in

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brand
value of
business
engineering
skills
 Build
competitive
advantage
through
effective
promotion
 Building the
new product
line
resource
department,
responsible
for hiring of
effective
expertise for
relevant
activities
and
objectives
the demand
of the
products
4. Reduction
in the total
wastes by
10 %
 Prioritising
and division of
work base.
 Monitoring
and
supervising the
areas where
major defaults
exists
 Limiting those
areas to
maximum
extent
5 years Quality
control
management
head
Substantial
fall in the
total wastes
by the
company
4. Briefing materials
 Marketing and research and development head should be given a clear idea about the
company objectives regarding increasing brand value through marketing activities and
market research.
 Human resource department head should be given an idea about the training and
development of the employees aligned with the new revised objectives of MacVille and
recruiting proper experts to cater to the revised needs.

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 Quality control management head should be briefed about what areas should be checked
to reduce the overall wastes of the company and how to control wastes by implementing
energy efficient equipment.
5. Cover statement with key objectives and description of research process for plan
development
MacVille
Key objectives:
1. To expand the business of espresso coffee machine among the domestic market across all the
states of the country through innovation
2. To increase company revenue by 5% in the next 5 years
3. To increase the brand recognition and awareness among the new target customer base through
marketing activities
4. To reduce the overall wastes by 10% in the next 5 years by implementing sustainable
measures
Research process and plan:
MacVille will need to conduct a market research to know the precise market needs and
that will take around 3 months. Based on the market research, innovation will be introduced in
the product offerings and accordingly marketing activities will be designed as per the
demographic differences of different regions. The digital and in-store marketing activities will
take place for the next 4 months to enter the new market and create brand awareness. It should

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also invest in research and development activities to innovate energy efficient products and
technologies to reduce total wastes by the company by 10% in the next 5 years.

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Task 4
KPI progress Plan
The business of MacVille is engaged in providing beverages to the customers and the
business is looking to expand the operations of the business in different regions of Australia. In
order to achieve this objective, the management of the company has formulated a strategic plan
for key performance indicators have been identified for measuring the actual performance of the
business (Killing 2013). The management has identified different objectives along with different
KPI of these objectives. The progress of the business in terms of the strategic plan is discussed
below:
Objective 1: Selling of MacVille Expresso Coffee Machines in Every Region of Australia in
next five years
Strategy a
The strategy focused on installing 200 machines per annum so that the objectives of
selling expresso machines can be implemented. The progress shows that the business has been
able to sell 180 machines in the year which can be regarded as an efficient progress. The only lag
which has been identified is in Northern Territory and North Queensland. In these region, the
progress is slow but the business is still doing well in the area.
Strategy b
The strategy of the business was to open a Melbourne Warehouse for further assisting the
operations of the business (Harbour 2017). The plan of the business was to establish the
warehouse and make it fully functional in 2 years which has not been achieved by the business.

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The progress in this strategy is slow and the agency model which is followed is also very
expensive which should be a serious consideration for the business (Serra and Kunc 2015).
Strategy c
The strategy aimed to set up agreements with the agents which can help in sales of the
products and also in expansion of the operations of the business. The KPI which was recognized
stated that the business would set up agents in different regions of Australia and also maintain
contracts with them (Parmenter 2015). The management of the company has achieved 80% of
this strategy but is unable to set up an agreement in Northern Australia region. In addition to this,
the cost of such agents is also very high which would affect the revenue of the business.
Objective 2: To increase profit margins by 5% from our benchmark in the next five years.
Strategy d
The management of the company aimed to purchase 100% of the container load so that
supplier’s price can be reduced and the business successfully achieved this target. The business
has successfully implemented this strategy and that too at a record timeline which is an
achievement for the business.
Strategy e
The management of the company aims to ensure that there is optimum utilization of
resources and thereby aims to ensure that wages to turnover ratio is 12.5%. The actual estimate is
13.8% which shows that the process is a bit expensive but productivity is being maintained.
Some of the areas are underperforming which needs to corrected.

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Objective 3: To establish the MacVille brand recognition in our key markets over the next five
years
Strategy f
The objective of the business is to spread the name of the business in the market and the
management is utilizing social media and internet for this purpose. The strategy was to click
10,000 pictures and post the same in social media (Shen and Bissell 2013). The management has
been able to achieve this strategy in half time and achieve 12,000 clicks. This objective has been
achieved by the business.
Strategy g
The management of the company aims to establish an agreement with Java Estate for
appropriate branding of the product. The business has not been able to achieve this objective and
whatever has been achieved is not appropriate as colour and design are not suitable (Wheeler
2017).
Objective 4: To reduce our waste and energy use by 10% from our benchmark within the next
five years
Strategy h
The strategy aimed to bring about innovation and efficient utilization of resources for the
purpose of managing the waste of the business. The business has achieved this objective
efficiently and contributed more then it was expected by the management of MacVille.

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Strategy i
The KPI in this strategy was to drop the usage of energy per person to 10 kW but the plan
was implemented late and therefore the effectiveness of the strategy cannot be judged. The
management would be required to properly implement the strategy.
Milestone progress
Milestone: Action and/or objective
(to achieve strategic aims of physical or
human resourcing)
Period Person
responsible
Status
(where applicable)
Installing 200 machines per annum 1 years (5
years
period
considered)
Operational
Manager
Partially
Achieved
Set up a Melbourne Warehouse Within 2
years
Operational
Manager
Not Achieved.
Set up Agents in different States No time
limit
Sales
Manager
Partially Achieved
Set up an Agreement for Bulk buying
negotiation.
No time
limit
Operational
Manager
Successfully
Achieved
Operate all departments at optimum
capacity
No time
limit
Sales and
different
Departments
Achieved but
Requires some
work.
Social and internet Marketing No time
limit
Sales
Manager
Successfully
Achieved
Branding Agreement with Java Estate No time Sale Partially Achieved

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limit Manager
Reduction of Waste No time
limit
Operation
Manager
Successfully
Achieved
Efficient use of Energy No time
limit
Operation
Manager
Not fully
Implemented.
Overall Progress
The strategic plan which is formulated by the management of MacVille is appropriate
and the same would also assist the business to achieve its goals and objectives. The
implementation of the strategic plans needs to be done efficiently and ensure all the areas of the
business are covered. As per recent progress, the management has been able to implement a
sustainable practice in the business by focusing on waste reduction and energy utilization (Kotas
2014). The operational area of business is a concern where most of the plans have not been
implemented.
Improvements Required
The following improvements are suggested to the management of MacVille for bringing
about more refinement in their approach:
 The business needs to reduce the costs as the agency model which is followed by the
business is expensive in nature.
 The tie up agreement with different agents needs to be covered and implemented so that
efficiency can be maintained in the business.
 The business can implement budgetary practices for controlling the activities of the
business and also the expenses (Barr and McClellan 2018).

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