Marketing Strategies Report: MacVille Business Venture Analysis

This report analyzes MacVille's business venture, focusing on the development and implementation of marketing strategies. It begins with a PEST analysis, examining the political, economic, social-cultural, and technological factors influencing the external environment. The report then conducts a SWOT analysis to assess MacVille's internal strengths and weaknesses, as well as external opportunities and threats. Furthermore, it reviews existing and potential competitors and allies, providing a summary statement for each. The report concludes by offering insights into how MacVille can leverage its strengths, address its weaknesses, capitalize on opportunities, and mitigate threats to achieve its marketing objectives in the competitive market. This comprehensive analysis aims to provide a strategic roadmap for MacVille's success.

Running head: DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 1
Develop and Implement Marketing Strategies-MacVille Business Venture
Name
Institution Affiliation

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 2
PEST Analysis
PEST Analysis is an abbreviation that stands for political, economic, and social and technology.
The four factors affect the external environment of any business. For the companies to overcome
this environment, have to strategize effectively or else they will be kicked out of the business.
This is mainly because businesses do not have control of the PEST factors. For the MacVille’s
Company, their major PEST aspects attributable to its external environment are as discussed
below;
Political: The political factor is exhibited by the government regulations laws and regulations
that either affect the business positively or negatively (Gupta, 2013). Businesses should take
advantage of the positive political impacts and plan how to prevent or eradicate negative political
factors (Rastogi & Trivedi, 2016). Similarly, MacVille should optimize the removal of the tariffs
on the espresso coffee machines. However, there a few critical factors facing MacVille. For
example, the company must make sure it conforms to the government business laws and
regulations in the new areas where it wants to expand its operations. This will help the company
to avoid conflicts with the government. Secondly, there is a possibility of introducing a carbon
tax that may see MacVille profits being diluted.
Economic: Economic factor is one of the major PEST factors that businesses have to put into
consideration (Koumparoulis, 2013). It will not matter whether the company is at kick-off stage
or how long it has been in operation. If the company is faced by the economic constraint that
falls beyond its ability there is a high probability of the company to suffer loss and eventually
end up closing (Issa, 2010). On the other side, if the business is experiencing favorable economic
environment there is a likelihood to enjoy higher profits, experience growth and development
and expands to other regions (Yüksel, 2012). MacVille appears to face both favorable,
unfavorable economic business environment. Favorably, there are huge expectations that the
economy will grow as result of the resources boom. Secondly, there are monetary and fiscal
plans to strengthen the Australian dollar against that its trading partners. Recently, there has
been a trend of the rising Australian dollar. This has had a negative impact on the tourism
industry, a sector that the MacVille relies on to thrive in the market. Finally, the anticipated
interest rates increase are likely to affect the disposable income available for the company
customers.

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 3
Social-cultural: The social culture of the target customers largely determines the nature and the
type of the customer that the company will sell in the market. If the product appears to interfere,
mock or against the culture or religion of the target customers, then it becomes useless
introducing it in the market (Koumparoulis, 2013). It will be easy for the MacVille to introduce
its product in the new market because Australians and majority of the international tourists in
Sydney likes having an evening coffee. Therefore, the coffee culture in Sydney seems to favor
MacVille business operations in the region. Secondly, there is growing culture where people tend
to eat out more frequently as they age. Third, there is a predicted steady growth of the Australian
population up to 36 million people by 2050. The social set up in the Australia business
environment offers MacVille with a lucrative opportunity to enter in the coffee industry.
Technology: In the modern business world, companies are thriving in technology. If the
company is unable to adopt the latest technology, it might find itself being kicked out of the
business (Rastogi & Trivedi, 2016). Technology is a changing factor and therefore what was
termed as the best technology in the industry two years ago it may be an obsolete technology
today. MacVille has taken advantage of the latest technology in two ways. First, the company
has taken advantage of home espresso machine that will help it ease its business operations.
Secondly, the company will integrate Management Information System (MIS) to help its
management and staff in executing all company business operations effectively. For example, the
planned Management Information System will assist the company to carry out corporate and
strategic planning that are aligned with strong internal controls in the department of accounting
and finance.
SWOT Analysis
SWOT analysis which is an abbreviation for business strengths, weaknesses, opportunities and
threats involves the evaluation of the company or industry’s internal and external environment.
Strengths and weakness are attributable to the internal environment of the business while
opportunities and threats fall in the external environment of the business. The MacVille internal
and external environment based on the SWOT analysis will appear as follows;

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 4
Strengths: Ideally, the strength aspect comprises of the competitive advantages that the
company can use to establish and maintain its operations in the market. The company will
maximize its strengths to grow and develop and expand its business operations (Osita,
Onyebuchi, & Justina, 2014). MacVille is endowed with some strengths. First, the company
enjoys strong strategies of marketing its sales. The application of the social marketing has largely
helped MacVille in the development of the company marketing communication and promotion
mix. Additionally, the company has taken advantage of the modern technology to reduce its
marketing costs by largely relying on the internet. Secondly, the company enjoys a strong
reputation in the field of service marketing. In the past, the company has been appropriately
dealing with the customers’ complaint effectively. Besides, the after sale services have earned
the company the strong image in the eyes of the general public.
Weaknesses: This aspect involves the problems that can hamper the progress of the company
(Valentin, 2015). The MacVille business operations face significant problems. First. The
inbound logistics are underperforming due to lack of the experienced and qualified personnel. As
a result, the delivery times have sometimes been violated, and the human resource management
of the company appears to lack the solution. Secondly, the outbound logistics of the company
calls for improvement. Currently, MacVille depends on the delivery firm to transport goods to
their customers. It is noted that most of the times there are delays in the delivery of products and
hence compromising the customers’ expected quality.
Opportunities: These are the areas which the company pursues to grow and develop its business
operations (Valentin, 2015). MacVille has an opportunity to expand its business to the new
Sydney market. This region has a huge market of espresso machines, and again the major
competitor of MacVille has withdrawn from the Sydney market. Secondly, MacVille can enter
into strategic alliances with the bean suppliers to ease market penetration and reduce the costs of
advertising. Finally, MacVille can obtain its objectives by entering into strategic alliances with
the tenders providing and building home espresso machines.
Threats: These are the risks that are likely to hinder the company business operations in the
event of their occurrence (Valentin, 2015). The greatest threat is offered by Nufix Inc. The Nufix
Inc. is shifting from instant coffees to the espresso bean and machine market. The Nufix Inc.
action is expected to offer fierce competition to MacVille. Secondly, BeanEx is also a threat to

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 5
MacVille. BeanEx is a major coffee supplier, but recently it has started importing espresso
machines for their customers. Besides, BeanEx has penetrated the marketing through its coffee
bean trade. The entry in the market by BeanEx is expected to offer the greatest challenge to
MacVille espresso machine business. There is also the threat that can be availed by the rising
Australian dollar that can have a negative impact on tourism.
Review of Existing and Potential Competitors and Allies
Nufix Inc.: This is a MacVille potential competitor. It has had an experience in the coffee bean
market (strength) but not an espresso machines market (weakness)
BeanEx: It is a MacVille potential competitor. The company has had a penetration of the coffee
bean market before (strength) but lacks experience on the espresso machines market (weakness).
Home Espresso Machines: Concentrates its espresso machine market in Sydney only (strength).
It is working with the strategic partner who is not largely focused on hospitality industry
(weakness).
Ambrosia Coffee Roast: Largely committed to the coffee bean industry (strength). The
company is unable to protect its intellectual property, and it does not put more emphasis on
product quality (weakness).
Java Estate: Solely committed to hospitality and coffee bean market (strength). There is a
likelihood for other coffee suppliers to advice MacVille against entering into strategic alliance
with this strong strategic alliance (weakness).
Potential Allies Summary Statement
Home Espresso Machines
 Sells consumer espresso machines in Sydney only. In addition, it incorporates other
digital home entertainment products.
 Carries out four trade shows per year. The company can sell ten machines per show and
arrive at break even after selling only two shows.

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 6
 Each show will contribute to the profit $10,000 per year.
 The partner is not meeting its financial commitment.
Ambrosia Coffee Roast
 Sell all the coffee bean grades to supermarkets in Australia as well as hospitality outlets
around the country.
 Shares the cost of outdoor advertising.
 Can serve fifty cafes per year and reach break-even after 20 cafes.
 Profit for the year is $15,000.
Java Estate
 To sell quality Arabica roasted coffee beans to all states of Australia.
 Provides espresso machines to their customers for free.
 It pays for the MacVille’s delivery, and installation of the machines cost price. The
remainder of the purchase price is paid on 12-month repayment program.
 200 machines can be installed in the first year and reach the break-even point after 80
machines.
 Profit per year is $100,000.

DEVELOP AND IMPLEMENT MARKETING STRATEGIES-MACVILLE BUSINESS VENTURE 7
References
Gupta, A. (2013). Environment & PEST Analysis: An Approach to External Business
Environment. International Journal of Modern Social Sciences, 2, 34-43.
Issa, T. (2010). Sustainable Business Strategies and PESTEL Framework. International Journal
on Computing, 1(1), 73-79.
Koumparoulis, D. N. (2013). PEST Analysis: The case of E-shop. International Journal of
Economy, Management, and Social Sciences, 2(2), 31-36.
Osita, I. C., Onyebuchi, I., & Justina, N. (2014). Organization's stability and productivity: the
role of SWOT analysis an acronym for strength, weakness, opportunities, and threat.
International Journal of Innovative and Applied Research, 2(9), 23- 32.
Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique – A Tool to Identify External Risks in
Construction Projects. International Research Journal of Engineering and Technology
(IRJET), 3(1), 384-388.
Valentin, E. K. (2015). Away With SWOT Analysis: Use Defensive/Offensive Evaluation
Instead. The Journal of Applied Business Research – Spring, 21(2), 91-105.
Yüksel, İ. (2012). Developing a Multi-Criteria Decision Making Model for PESTLE Analysis.
International Journal of Business and Management, 7(24), 52-66.