Strategic Management: Case Study Analysis

This assignment requires you to analyze a strategic management case study. You will need to apply relevant frameworks and theories from the field of strategic management to understand the challenges faced by the organization in the case. Based on your analysis, develop well-supported recommendations for addressing these challenges and improving the organization's strategic position.

Running Head: Strategic Plan
macVille
Strategic Plan

Strategic Plan 1
Table of Contents
Introduction......................................................................................................................................2
Objectives of the MacVille..............................................................................................................3
Timeframe, priority and responsible party of the Strategies........................................................5
Role of Responsible parties.............................................................................................................6
Cover Statement and Conclusion.....................................................................................................7
References........................................................................................................................................8

Strategic Plan 2
Introduction
Strategic planning is the procedure through which organization could develop plans in order to
operate the activities in an appropriate manner for attainment of the organizational goals and the
objectives. Available resources of the organization should also be analysed as well as the
allocated in the appropriate departments of the organization. Strategic planning is the crucial
procedure mainly comes in the action before launching of the new product or new business
within the workplace. In order to the attainment of the desired goals and the objectives, this
planning is being made. It also involves the crucial activities of the mission, visions, and the
targets of the organization. The strategies used to reach to those goals and for the attainment of
those objectives; this type of planning is done. Under this report, strategic planning in relevance
with the MacVille espresso coffee machines will be done. Organization is planning to set up
these coffee machines in Australia. Their main aim is to develop these coffee machines at all
states of Australia within the next five years. MacVille has planned to set up the coffee machines
except the Northern Territory because organization is not able to find an appropriate repairing
agent over there. For the attainment of the adequate place in the dynamic business environment,
organization has developed certain objectives and to attain those objectives, KPIs and the
strategies will be covered under this report. Apart from this, the strategic plan will be developed
in order to discuss the plan’s outcomes with the CEO of the organization.

Strategic Plan 3
Objectives of the MacVille
Objective 1: The first objective of the organization to set up espresso coffee machines in every
famous and most visited places. This will help the public to get the coffee easily and
conveniently as per their requirements and this will be a vending type of machine. MacVille has
developed this objective reviewing the demand of the coffee in the Australian states. MacVille
has developed this objective with the view to enhance their market presence in the target market
(Huang, 2011). Apart from this, organization has the objective to set up these vending coffee
machines in whole Australia within next five years. This will raise the organizations revenues as
well as it will also be helpful for the consumers to get the coffee at cheap fares. To attain this
objective, organization has developed certain strategies such as:
 The first strategy was developed in relevance with the objective of the organization to
set up 200 coffee machines in a year across the Australia in the first phase. But due to
certain issues in the Northern Territory and in the north Queensland, organization was
not able to match up with their set targets as only 180 machines were installed in the last
year (Hoskisson, et. al., 2013).
 Apart from this, organization was willing to set up a warehouse in the Melbourne within
2 years of setting up a warehouse in the Sydney. But the actual outcomes did not
matched with the expected outcomes and Melbourne’s warehouse is still under
construction process.
 The next strategy was outsourcing for the maintenance of the machines in the major
parts of the Australia in order to attain the desired goals and the objectives. The target
was set up for the South Australia, Western Australia, Northern Territory, Tasmania and

Strategic Plan 4
ACT but as expected organization was not able to find the agents for outsourcing of the
machines in the Northern territory of the Australia and in those areas, they got the
outsourcing agents, they were also very expensive. Due to this issue, organization was
not able to match up with its requirements as well as the organization’s motive of
controlling the cost was also meeting with the expectations (Hill, Jones & Schilling,
2014).
Objective 2: The next objective was to enhance the profits rate of the organization in next five
years. Organization has decided to enhance its profit margins with 5% hike from the last profits
recorded in 2010. In order to attain these targets, organization has developed various KPIs and
strategies for attaining those.
 Organization decided to buy the whole container load in the initial phase with the
objective to fulfil the demand of the consumers. The same results were obtained as
expected and the volume which was purchased in order to fulfil the demand, the same
objective was achieved.
 Management of MacVille espresso coffee decided to adopt some effective and efficient
strategies through which appropriate goals could be attained. In order to attain the goals,
they developed the policy in which workers’ basic needs will be fulfilled at the optimum
level for influencing them towards the work and to attain efficient results. For the same,
they set the target of 12.5% wages to the turnover ratio (Greckhamer & Gur, 2015). But
due to certain concerns, all the states of the organization was not able to perform as per
the standards set up, a slightly increase was recorded in the turnover ratio i.e. 13.8%.
With the effect of this, organization fell too short to attain the adequate growth in the

Strategic Plan 5
profits as the actual rate of profit increased with 2% only which was too short from the
expectations were set.
Objective 3: The further objectives were enhancing the market value of the MacVille brand in
the target market in the particular period of time. With regards to this, organization has
developed certain polices and the strategies to enhance their brand value till 50% in the
Australian market. For attaining the particular ratio of the brand value, organization has adopted
various strategies such as promotion of the company and its newly launched coffee machines
will be promoted through digital as well print medium of advertisement and the promotion
(Grant, 2016).
 Organization has used various strategies in relevance with the objective of enhancing the
brand promotion; organization has adopted the strategy of social media platforms’
marketing strategy. With the implementation of this strategy, organization will be able
to promote its brand and the new products launched in the target market effectively and
efficiently.
 With the effect of adequate promotional techniques, organization expected that
approximately 10, 000 clicks will easily be achieved on the website of the organization
but the outcomes which were actually achieved was 12, 000 clicks. Due to this,
organizational management’s and its employee’s confidence towards the
accomplishment of the task of setting up coffee machines was boosts up (Gandhi & Jain,
2011).
 Apart from this, MacVille decided to promote its brand and the product through printed
cups with their brand name and by providing adequate margins to the cafes for installing

Strategic Plan 6
their coffee machines at their workplace. This will enhance the demand of the MacVille
espresso coffee amongst the consumers across the whole Australia. But due to non-
attractive designs and the colours of the cups, organization was failed to attain the
expected outcomes from this strategy (Bond & Saggi, 2014).
 After evaluating the overall outcomes, it was observed that organization gets the extra
benefits from the branding promotional techniques used. As the organization was
expecting 50% increase in the demand of the brand while they got 86% enhancement in
the same (Freeman, 2010).
Objective 4: Apart from the above objectives, organization decided to control its waste
production from the functionalities of the organization as well as enhancement of the energy
resources was also expected. These objectives were developed with the perceptive of enhancing
the growth of the organization as well as to enhance the demand of the coffee machines set up by
the organization in the target market (Forstmann, et. al., 2010).
 Organization has developed a benchmark of the 10% reduction in the waste production
and enhancement in the energy resources for the organization in relation with the rate of
waste and energy was attained in 2010. To attain this target, organization has adopted the
strategy of setting up innovations and the reward programs for attaining the desired
objectives.
For attaining this objective in the workplace, organization has developed the strategy of
working upon the 25 suggestions received from the consumers per year. Addition to this
plan, 6 new innovations should also be implemented within the workplace in order to
attain the organizational goals and the objectives. The results were exceptional because

Strategic Plan 7
30 suggestions were implemented with the 8 innovations for enhancing the demand of the
organizational products and to reduce the waste production (Finkle, 2012).
 In terms of increasing the rate of the energy resources, organization planned to decrease
the usage of the power to 10kW per person but due to late adaptation and the
implementation of this strategy within the workplace, organization was failed to attain
this objective and the outcome was attained 12kW per person (Carroll & Shabana, 2010).
Timeframe, priority and responsible party of the Strategies
Strategies Timeframe Responsible Party KPIs
Brand promotion and
marketing
Before launching the
product in the target
market
Marketing Team and
the management
Internet- social media
Spreading information
regarding the newly
launched product
1-2 weeks from the
date of launching of
the product
Marketing team and
the management
Display promotion of
the coffee machines in
the favourite places I
the target market
Agreement with Java
Estate
2-4 weeks Production team and
the management
Setting up 200
machines per year in
the target market

Strategic Plan 8
Outsourcing of the
machine maintenance
contracts
4-6 weeks Head of
administration team
For every part of the
Australia, separate
outsourcing contract
will be signed to
maintain the
machine’s
performance.
Bulk purchase 6-8 weeks Purchasing team Purchasing of 100%
volume container
loads
Productivity and
consistency in every
department’s
performance
8-10 weeks Production
department,
management team
Wage ratio to the
labour turnover
should be decreased
to 12.5%
Adaptation of
innovation
10-12 weeks Research &
Development team
Taking suggestions
from the consumers
and adaptation of
adequate innovative
techniques in order to
enhance the
organizational
performance.
Energy awareness and 12-14 weeks Management team Per person usage

Strategic Plan 9
reduction in the waste should be 10kW
Establishment of
second warehouse
2 years after
establishment of
warehouse in Sydney
Management team Within 2 years after
the development of
the Sydney’s
warehouse
Role of Responsible parties
While identifying the roles of the organizational parties in the performance of the organization of
introduction of the coffee machines in the Australian market, certain parties have crucial roles in
attainment of the organizational goals and the objectives (Eteokleous, Leonidou & Katsikeas,
2016).
 Management Team: It is the department which is responsible for performing various
activities of the organization. In the performance of the MacVille, strategies of brand
promotion, spreading information in relevance with the introduction of coffee machines,
setting up machines in the various places of the target market, introducing energy
awareness and the reduction in the waste production and the establishment of the second
warehouse in the target market will be performed by the management of the MacVille.
From the 9 strategies, 6 strategies were under the control of the MacVille management
team and only 2 strategies’ outcome was attained as per the expectations or more than the
expectations. Hence, organization needs to amend its strategies in order to enhance the
organizational performance (Connolly, Connolly & Feinstein, 2016).
 Marketing Team: Marketing team of the organization has major responsibilities of the
successful implementation of the two crucial strategies. Brand promotion and spreading

Strategic Plan 10
awareness amongst the audience of the target market depends upon the marketing team of
the MacVille. Outcome of these strategies’ outcome was attained as per the expectations.
 Production Team: They are responsible for developing adequate quantity of the coffee
machines to deliver the products in the target market as per the demand of the consumers
(Dimaano, Suthiwongsunthorn & Yang, 2015).
 Administration: One of the major responsibilities i.e. outsourcing of the contracts for the
maintenance of the coffee machines at the various parts of the target market.
 Purchasing team: They are responsible for purchasing adequate quantity of the raw
material required for the production of the coffee machines (Cummings & Worley 2014).
 Research & development: They are responsible for adopting adequate innovative
technologies in order to enhance the performance of the coffee machines which will lead
to enhancement in the growth rate of the organization (Demil & Lecocq, 2010).

Strategic Plan 11
Cover Statement and Conclusion
The overall objective of the organization is to set up various coffee machines in all states of
Australia and in order to attain the organizational goals, various strategies has been developed
with the appropriate KPIs (Key Performance Indicators). To complete the process and to enhance
the organizational goal of setting up coffee machines in the Australian market in next five years,
various research and the processes were conducted. For the purpose of attainment of the
organizational objectives such as reduction in the waste production, enhancement in the
profitability, etc. various key performance indicators have been developed.

Strategic Plan 12
References
Bond, E. W., & Saggi, K. (2014). Compulsory licensing, price controls, and access to
patented foreign products. Journal of Development Economics, 109, 217-228.
Carroll, A.B. & Shabana, K.M. (2010). “The business case for corporate social
responsibility: A review of concepts, research and practice”. International journal of
management reviews, vol. 12 (1), pp.85-105.
Connolly Jr, W.B., Connolly, M.J. & Feinstein, J. (2016). Law Journal Press”. A Practical
Guide to Equal Employment Opportunity.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Demil, B. & Lecocq, X. (2010). “Business model evolution: in search of dynamic
consistency”. Long range planning. vol. 43 (2), pp.227-246.
Dimaano, A. B., Suthiwongsunthorn, N., & Yang, Y. B. (2015). U.S. Patent No. 9,023,690.
Washington, DC: U.S. Patent and Trademark Office.
Eteokleous, P. P., Leonidou, L. C., & Katsikeas, C. S. (2016). Corporate social responsibility
in international marketing: review, assessment, and future research. International Marketing
Review, 33(4), 580-624.
Finkle, T. A. (2012). Corporate entrepreneurship and innovation in Silicon Valley: The case
of Google, Inc. Entrepreneurship Theory and Practice, 36(4), 863-884.

Strategic Plan 13
Forstmann, B. U., Anwander, A., Schäfer, A., Neumann, J., Brown, S., Wagenmakers, E. J.,
& Turner, R. (2010). Cortico-striatal connections predict control over speed and accuracy in
perceptual decision making. Proceedings of the National Academy of Sciences, 107(36),
15916-15920.
Freeman, R.E. (2010). “Cambridge University Press”. Strategic management: A stakeholder
approach
Gandhi, V.P. & Jain, D. (2011). “Indian Institute of Management”. Institutional Innovations
and Models in the Development of Agro-food Industries in India: Strengths, Weakness, and
Lessons.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Greckhamer, T., & Gur, F. A. (2015). A Set Theoretic Study of Generic Strategies and Firm
Performance Differences. In Academy of Management Proceedings (Vol. 2015, No. 1, p.
15849). Academy of Management.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Hoskisson, R.E., Wright, M., Filatotchev, I. & Peng, M.W. (2013). “Emerging multinationals
from mid‐range economies: The influence of institutions and factor markets”. Journal of
Management Studies, vol. 50 (7), pp.1295-1321.