MacVille: Strategic Plan Report - Business Development Strategies

This report provides a comprehensive strategic analysis of MacVille, an import and export business specializing in espresso coffee machines. The report begins with an introduction outlining the importance of strategic planning and management, followed by an examination of MacVille's existing vision, mission, and current approaches. It then delves into an assessment of the external environment using PEST, SWOT, and value chain analyses to identify key factors influencing the business. Furthermore, the report explores existing competitors and potential alliances. The strategic planning section details the organization's objectives and strategies to achieve them, including plans for market expansion and brand recognition. The report concludes with a review of implementation, assessing KPI and milestone progress, identifying improvements, and proposing future actions. The analysis includes detailed examinations of political, economic, social, and technological factors affecting the business, as well as an assessment of internal strengths and weaknesses. The report also outlines strategies to increase profit margins, reduce waste, and expand market reach. Finally, the report discusses various potential alliances, along with the associated risks and benefits.

Develop and implement
strategic plans

Table of Contents
INTRODUCTION...........................................................................................................................1
Existing vision and mission.............................................................................................................1
Current approaches .........................................................................................................................1
Revised vision and mission.............................................................................................................2
Organisation values .........................................................................................................................2
ASSESSMENT 2.............................................................................................................................1
External environment analysis.........................................................................................................1
Pest Analysis..........................................................................................................................1
Swot Analysis.........................................................................................................................2
Value chain analysis...............................................................................................................3
Existing competitors...............................................................................................................3
Potential alliances as required in tenders ...............................................................................3
ASSESSMENT 3 – STRATEGIC PLANNING ............................................................................5
Organisation objectives..........................................................................................................5
Strategies to achieve the organisation's objectives.................................................................5
Plan briefing...........................................................................................................................6
ASSESSMENT 4 - REVIEWING IMPLEMENTATION..............................................................8
Objective of report..................................................................................................................8
Scope of report ......................................................................................................................8
KPI progress...........................................................................................................................8
Milestone progress .................................................................................................................9
Overall progress......................................................................................................................9
Improvements.........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic planning and management is an essential part in every business or organisation
that helps in achieving high growth and profit in the competitive market. There are various steps
which are important to be considered while planing and implementing a new strategy in the
organisation(Bryson, 2018). The present report is in context to MacVille, a successful import and
export business centre in Sydney. This study will include a detailed examination of
implementing new strategies in order to achieve certain objectives set by the cited organisation.
Furthermore, it will include analysis of various internal and external factors affecting the
MacVille company while operating its business. The report include a list of strategies, time
frame and responsible area of various strategies which are been implemented in the company.
Existing vision and mission
Mission– In next five years, MacVille will become a national brand and will be accepted as an
integral part of the hospitality industry, detected as a major element in the success of small and
large hospitality establishments.
Vision – MacVille's main aim is to provide espresso coffee machines that meet reliability,
efficiency and sustainability requirement of their customers who reward the company with
profits that will allow their communities and stakeholders to prosper.
Current approaches
The company's values have been the same since it has been established, for the
stakeholders, it has been always about adhering and stewardship to moral and professional
standards of conduct in each and every activity performed by the company(Wolf and Floyd,
2017). MacVille is committed to motivate self directed teams, the company cultivate leadership
and maintain high levels of safety. In the last few years, since the last strategic plan was
developed, the company achieved developments in various new areas that were not clearly
recognised when developing the last plan. The CEO of MacVille understood that there is a high
need of incorporating innovation into the mission of company as it has been an outcome from
self directed team's directive. Identifying new methods to improve efficiency of effectiveness
and processes of customer solutions has become a priority. A need to evaluate the business
functions is constant within MacVille, it helps in continually challenging the methods and ways
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to simply improve the company's business. The company focuses on constantly innovating and
raising their standards as they are not afraid to try new concepts and ideas.
Revised vision and mission
Mission – The new mission for MacVille is to increase its profit margin by 5% in the next five
years by increasing its sales. The company also aims and reducing the waste and use of energy
by 10%. The company will achieve this objectives by education programs and rewards for the
employees.
Vision – The company's vision is to sell its products and services of espresso coffee machines in
each and every state of Australia with the help of its alliance and development of warehouse.
Organisation values
The value of organisation is considered as an essential part of an company or business. IN
order to implement the strategic planning an organisation needs to know the value of the
customers and its employees. There are various approaches MacVille needs to consider in order
to increase its performance and profitability effectively. Though the values of MacVille are same
since its establishment, it constantly tries to improve with their objectives and goals (Van Den
Berg and Russo, 2017). In order to accomplish its new mission and vision the company needs to
identify more close;y with the community it serves. The company need to be good corporate
organisation that recognises its responsibility to be active participants in the local communities.
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ASSESSMENT 2
External environment analysis
In order to identify various external factors that may affect business operations of
MacVille and its performance, various tools can be used such as Pest, SWOT and Value chain
analysis
Pest Analysis
Political factors: Import export business experiences major governmental intervention which
restrict flow of goods and services across the globe. The services of Macville's import and export
business is regulated by unstable political and legal factors like, Tariff, employment law and
trade restriction. The company trades coffee machines to meet the needs of hospitality clients
and therefore firm has complied with legislation. The company owns free trade agreements and
has compelled with the legal requirements of Australian departments of immigration and border
protection (Australian export and import laws, 2018). Compliance with these regulation helps
the business in managing smooth flow of logistics.
Economic factors: These factors controls business activities, investment and profit generation. It
Comprises fluctuation in interest, exchange rates, which hampers overall financial planning of
Macville's import and export business. In accordance with economic fluctuation, it can be
articulates that the factor impacting trade of company comprise exchange rate which is favorable
in sydney. Apart from this the profitable return is depicted by consistent emergence of Australia
as low cost base developed nation.
Social factors: This is the most influential factor for Macville's import and export business
because the company deals with various type of hospitality business for selling espresso coffee
machines and therefore predicting therefor cultural choice and preferences is difficult and b
beyond reach. Therefore, the focus of firm is on meeting customer expectation by focusing on
efficiency, reliability and sustainability needs of hospitality industry as whole. The company
uploads to values and mission which helps the business in managing customer expectation and
establishing control over social factors.
Technological factors: Macville's import and export business ha complied with technological
advancement in order to maintain sustainability in supply chain management. The focus of firm
is on making timely delivery and living up to customer expectations. However, the company own
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wide range of advanced tools which support import and export services like use of transport
services which causes minimum emission as the company is widely committed to environmental
polices and practices (Baumgartner and Rauter, 2017). Further, espresso machines for hospitality
industry are distributed according to changing trends which helps organization in fulfilling
sustainability need of hospitality clients from past two years.
Swot Analysis
Strength: The major strength of Macville's import and export business is strong control of
management over organization values, mission and vision. It enables coordination and
corporation among employee which aid in managing sustainability in services. On the basis of
stakeholder review it is determined that the company is success to adhere with professional,
moral and ethical standards of business. Apart from this, the core strength of company lies in its
encouraging self directed teams which helps the management in cultivating leadership and
maintain high level of safety in work environment.
Weakness: The weakness is the core cone because it can deprive business operation of
Macville's import and export business. The company is experiencing real need of incorporating
innovation in mission of organization. Further, the business lack efficiency in solving customer
query which needs to priority of the enterprise. In addition, the company do not have simplified
functions and task which leads to lack of time management in lack of cost effectiveness in
business process and employee work (Paley, 2017).
Opportunities: Innovation in business practices can be opportunities for Macville's import and
export business in simplifying task and maintaining cost effectiveness. Further, developing
partnership or strategic alliance to improve ability of business is another strategy to establishing
innovation in services in meeting stakeholder expectation. In accordance with analysis, it can be
articulated that it is important for the entity to develop business partnership and strategic alliance
because it will assist the business in providing business solutions. Thus, it can be said that new
partnership can be support to Macville's import and export business for promoting desired
outcomes, strategies and mission.
Threats: Threats is the factors which leads to generation of various problems which do not
enable solution or time to recover from certain situation. As per the analysis, it can be said that
lack of innovation can be threat to Macville's import and export business because the customer of
company is entire hospitality industry. Further, resolving queries of customers is key concern of
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business s ad therefore it can be another threat for the organization because as per assessment
analysis it is derived that the company has self directed team but it lacks solution for concerns of
buyers because which firm can lose its potential customers.
Value chain analysis
Inbound logistic – Lack of experience employees for importation and custom
Operations – State of are management information system provides for strategic planning and
internal control.
Outbound logistics – Contracted delivery partners are not capable of delivering machines in time
due to fast plans of expansions.
Sales – Sales and marketing department are performing well and are strong areas for profit which
can be increased using internet (Schmitt and et.al., 2018).
Service – The company enjoys good reputation by providing effective and impressive services to
customers.
Existing competitors
1. Nufix – It is changing from instant coffee shop to espresso machine and coffee provider.
Strengths – Finance, Marketing and Human resources.
Weakness – Challenges and Difficulties in adopting the need of niche market
2. Bean ex – Coffee bean trader is going to import espresso machine for their wholesaler
customers or agents.
Strengths – Easy market entry
Weakness – No established service department to offer and provide after sales services to
wholesalers
Potential alliances as required in tenders
1. Home espresso trades – To sell espresso machines to home customers in Sydney Description of join venture – It has shared space in four trade fairs Strengths – Its major strength are the home consumer market that compliment
commercial consumer marketplace. Weakness – Alliance also focusses on on-hospitality industry or sector.
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 Risk – Partner can access to trade secrets of MacVille, Collaboration with non-industry
firm may negatively affect on the customer base, partner firm not fulfilling financial
commitments (Feng, Govindan and Li, 2017).
2. Ambrosia coffee roast – This company sell each and every type of coffee beans. Description of joint venture – Share of outdoor marketing and advertising cost at various
cafe outlets. Strengths – Sharing of strong customer base Weakness – The company's product image is based on commodity Risk – Long term signage of alliances, collaboration with brand offering quality product
or services.
3. Java Estate – The organisation aims to sell quality Arabic coffee beans in all states of
Australia. Description of joint venture - It provides espresso machines to customer at no cost or
charge Strengths - Highly committed to coffee bean and hospitality market Weakness – Other suppliers of coffee bean suppliers may not recommend MacVille
machines with strong alliance.
 Risk – Concern over outstanding amount.
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ASSESSMENT 3 – STRATEGIC PLANNING
Organisation objectives
1. To sell its products and service related to espresso machines in each and every state of
Australia by accepting the Java estate tender and to look for opportunity of warehouse in
other various other high volume estates.
2. To develop brand recognition of the company in key markets in next five years.
3. To enhance the profit margin by 5% from benchmark set.
4. To reduce wastage of resources and energy by 10%.
Strategies to achieve the organisation's objectives
Objective 1 –To sell its products and service related to espresso machines in each and every
state of Australia by accepting the Java estate tender and to look for opportunity of warehouse in
other various other high volume estates (Papke-Shields and Boyer-Wright, 2017)
Strategies with respect to priorities - Signing action and developing strategic alliance with Java estate
Kpi Plan – To install 200 machines every year
 Developing MacVille warehouse
Kpi Plan – To open warehouse in Melbourne
 Increasing agents in other states and outsource maintenance contracts
Kpi Plan – Outsource maintenance contracts in south Australia and setting agent in other
states.
Responsible parties – Operation manager and Purchasing manager
Objective 2 - To develop brand recognition of the company in key markets in next five years.
Strategies with respect to priorities
 Developing internet and social media network marketing
Kpi Plan – at-least 1000 clicks per day on the company's website
 Collaborating with Java estate in co-branding banners and cups
Kpi Plan – All the café's utilising the MacVille machines must use the company's cups
Responsible parties - Marketing managers
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Objective 3 - To enhance the profit margin by 5% from benchmark set.
Strategies with respect to priorities Initiating bulk order or purchase in order to reduce the prices of suppliers
Kpi Plan- 100% orders and purchases in bulk
 Operating each and every department at optimum productivity and capacity
Kpi Plan – Wages at turnover ratio on exceeding 12%
Responsible parties – Operation manager and Purchasing manager
Objective 4 - To reduce wastage of resources and energy by 10%.
Strategies with respect to priorities
 Setting up reward and innovation program
Kpi Plan – Ensuring 6 innovations and 25 suggestions introduced every year for reducing
wastage.
 Developing and implementing energy using awareness program
Kpi Plan – KW per person utilise to drop by 10 kw
Responsible parties – Human resource manager and Research & Development manager
Plan briefing
Objectives Prioritised
list of
strategies
Time-
frame for
achieveme
nt of
objectives
Responsible
authority for each
strategy
Performance indicators
Expand in
undeveloped
areas of
Australia
Increase in
marketing
and
promotional
approaches
5 years Marketing and
research head
Addition in the revenue over
the period of time in
particular region of Australia
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Increase the
overall
revenue by 5
%
Motivation of
human
resource to
effectively
increase in
sales
Introduce
newly
designed
products
offered to its
customer base
5 years Marketing and
research head
Increase in customer base of
the customers and upcoming
orders.
Build brand
value of
business
Process
engineering
skills
Build
competitive
advantage by
effective
promotion
Building
product line
5 years Hiring of effective
expertise and offering
products at
comparable lower
price as of rival brand
price
Increase in requirement and
demand of the products
Reduce the
resource and
energy
wastes by 10
%
Prioritising
and division
of work base.
Checking
areas where
major
defaults exists
5 years Quality and control
management head
Witness of future decrement
in the overall wastes
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Curbing those
areas to
maximum
extent
ASSESSMENT 4 - REVIEWING IMPLEMENTATION
Objective of report
To develop are a report describing the implementation of strategic planning as measured
by achievement of KPI's objectives and gross effectiveness of the business (Wheelen and et.al.,
2017).
Scope of report
To measure performance of business against Kpi & Milestone and provide refinements
and recommendations to implement procedure.
KPI progress
KPI Plan KPI Actual
1. To set up 200 machines every year
2. To open Melbourne warehouse
3. To appoint agent and outsource
maintenance contractor for ACT,
Northern territory, South Australia,
Tasmania , Western Australia,.
4. 100% order by container load
5. Wages to turn over ratio 12.5%
6. 1000 clicks per day on company
1. Only 180 machines are installed
2. Melbourne warehouse is still not open
3. Still no service contractors for Northern
territory and agents assigned for other
states like Western Australia are very
expensive.
4. All order was by 100% container load
5. 13.8% wages to turn over ratio
obtained.
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website
7. 100% café using Macville machine to
utilise our cups
8. 25 suggestions and 6 new innovations
to be initiated
9. To reduce energy waste 10kw per
person
6. 12,000 clicks per day. SEO specialist
was very experienced.
7. Survey shows only 50% uptake design
and colour not attractive
8. 30 innovations and 8 new innovations
introduced
9. 12 kw energy consumption per person
reduced
Milestone progress
1. Objective MacVille machines are installed in all states except in northern states because
taking time to hire agents and maintenance contractors.
2. Objective profit margins have only enhanced to 2% in two years. Some contractors and
agents are very costly.
3. Objectives 50%of target market recognise brand and 855 had a positive reaction.
4. Objective reduction in resource and energy wastage is 2% against the set benchmark.
Overall progress
MacVille is performing well as the profit margin has been increased by 2% in the last two
years as bulk purchases were made at initial phase due to increase in demand. The organisation
also achieved its marketing aims and objectives using social media marketing strategy. But these
strategies or marketing methods were not effectively implemented within organisation in
Northern territory as they faced difficulty in hiring maintenance contractors and agents.
Resource and energy reduction plan & strategies working properly although they were applied
very late which lead to the reduction of energy to only 12kw per employee.
Improvements
The company needs to focus on various improvements such as increasing pay rate in
northern region in order to attract experienced agents and machine maintenance contractors.
MacVille should also focus on increasing profit margin warehouse mush be open at Melbourne
as soon as possible because it is running on an highly expensive agency model.
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CONCLUSION
The above report summarised that strategic planning and management can helps an
organisation to achieve its mission or objectives effectively and efficiently. The report discussed
mission and vision of a espresso coffee machine provide, MacVille company. The analysis of
various external factors affecting the cited organisation is also included in the report. Various
tools such as Pest, SWOT and Value chain analysis has been used to identify the external
elements influencing business. Furthermore, the report described strategic planning and its
outcome related to MacVille's mission and vision.
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REFERENCES
Books and Journals
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner
Production. 140. pp.81-92.
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Feng, L., Govindan, K. and Li, C., 2017. Strategic planning: Design and coordination for dual-
recycling channel reverse supply chain considering consumer behavior. European
Journal of Operational Research, 260(2), pp.601-612.
Paley, N., 2017. How to Develop a Strategic Marketing Plan: A step-by-step guide. Routledge.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics applied to
project management. International Journal of Project Management, 35(2), pp.169-179.
Schmitt, R.J., Bizzi, S., Castelletti, A. and Kondolf, G.M., 2018. Improved trade-offs of
hydropower and sand connectivity by strategic dam planning in the Mekong. Nature
Sustainability, 1(2), p.96.
Van Den Berg, L. and Russo, A., 2017. The student city: strategic planning for student
communities in EU cities. Routledge.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven agenda.
Journal of Management, 43(6), pp.1754-1788.
Online
Australian export and import laws. 2018. [Online]. Available through:
<https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-
business/Understanding-Australian-business-regulation/Australian-export-and-import-
laws>.
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