Strategic Management Analysis Report: MacVille Case Study

This report presents a comprehensive strategic management analysis of MacVille, a company operating in the Australian espresso machine market. The report begins with an assessment of MacVille's current mission, vision, and organizational values, followed by proposed revisions to better align with market demands and competitive pressures. A PEST analysis is conducted to evaluate the political, economic, social, and technological factors influencing MacVille's business environment. The internal environment is examined, identifying strengths, weaknesses, opportunities, and threats (SWOT). The report then analyzes MacVille's key competitors in Australia, including Vittoria Coffee and Australian Coffee Distributors. Finally, the report discusses the formation of strategies, progress toward goals, and potential improvements for the organization, providing a holistic view of MacVille's strategic position and recommendations for future development.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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STRATEGIC MANAGEMENT ANALYSIS
Table of Contents
Assessment Task 1...........................................................................................2
Current mission and vision................................................................................2
Current organizational values............................................................................2
Revised mission and vision...............................................................................2
Revised organizational values...........................................................................3
Assessment Task 2...........................................................................................3
PEST analysis....................................................................................................3
Determination of the internal environment........................................................6
Competitors of MacVille in Australia..............................................................7
Tender submissions of potential allies...........................................................9
Assessment Task 3...........................................................................................9
Information related to the formation of strategies........................................10
Assessment Task 4.........................................................................................11
Progress in the achievement of goals..........................................................12
Overall progress in the achievement of goals..............................................12
Improvements in the organization................................................................12
References.......................................................................................................14

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Assessment Task 1
Current mission and vision
As per the case study given, MacVille is having clear mission and vision.
According to the case study, the mission statement of MacVille states that they targe
to offer espresso coffee machines to their clients that will be sustainable and will be
more valuable for them. Thus, their mission statement states that they want to
enhance the value for their clients (Williams, Morrell & Mullane, 2014). On the other
hand, their current vision statement states that they aim to be the market leader in
the national scenario and wants to be synonymous with the hospitality industry.
Thus, this state their future aims to increase their market share and business
revenue.
Current organizational values
In relation to their organizational value, MacVille maintains relatively
sustainable approach with having the major concentration on enhancing the value for
their customers. Moreover, it is also identified that internal management in the
organization is also being given a major concentration as it is stated in the case
study that leadership approaches and safety and commitment of the employees are
given the major focuses (Gehman, Trevino & Garud, 2013). However, it is also
identified that their existing organizational values are not synchronized with the
business strategies. This is due to the reason that there is no statement in their
organizational values regarding the how their values will act as competitive
advantages.
Revised mission and vision
There are few limitations being identified in both of the current missions and
vision of MacVille. Thus, the revised mission statement of MacVille will more
concentrate on offering differentiated and distinctive offerings to the customers. This
is will help to communicate the competitiveness of the organization through the
mission statement (Teeratansirikool et al., 2013). The official mission statement will
be “MacVille will strive to offer distinctive offerings in the market that will increase the
value for the customers. The organization will also provide espresso machines that

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will offer more diverse utilities and latest technologies in order to enhance the
customer convenience.”
On the other hand, the current vision statement will also be revised in order to
enhance the effectiveness. One of the major limitations of the current vision
statement of MacVille is not having any specific orientation of their approach. This is
due to the fact that according to the current vision statement, MacVille aims to be an
integral part of the hospitality industry. Thus, they do not state the exact positioning
of their brand in the market. The new and revised vision statement of MacVille will
state “MacVille aims to be the market leader in its business sector within the next 5
years and they also target to capture the major market share of the espresso
machines in the market. Moreover, the organization aims to provide the maximum
benefits to the customers as compared to other rivals in the industry.” This vision
statement is communicating the exact target that they aim to achieve in the next 5
years.
Revised organizational values
In relation to the revised mission and vision statements, the current
organizational values and approaches will also be revised. The revised
organizational approaches will be more linked between internal management and
competitive advantages. The new organizational values will be more concentrated
on generating innovative ideas. This will help in having more sources of generation
of innovative ideas, which will in turn help in enhancing the competitive advantages
for MacVille (Urbancova, 2013). In addition, the new organizational values will also
be designed in such a way that it will provide the employees more opportunities to
get aligned with the market trend and demand. Thus, the more will be the alignment
between the employees and the customers, the more will be the effective
determination of the customer expectation. This will also help in enhancing the
competitive advantages of the organization. In addition, having effective
organizational value will also help MacVille to have more utility in the long term. With
the increase in the competition in the industry, having effective and positive
organizational values and approaches is important.

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Assessment Task 2
PEST analysis
Political factors  One of the major political factors to be faced by
MacVille is the political system in Australia.
 Australia is having favorable and stable political
system n place and thus MacVille will have favorable
operating environment (Besley, 2015).
 However, MacVille has to adhere to the business
regulations and standards set by the government of
Australia.
 Any change in the regulations will have negative
impact on MacVille.
 Moreover, the change in the ruling party in the
government will also bring change to the political
environment of MacVille.
 This is due to the reason that different political
parties are having different ideologies. Thus change
in the political system will also lead to the change in
ideologies, which may have negative impact on
MacVille (Scherer, Palazzo & Matten, 2014).
 It is also important for MacVille to adhere to the food
standards being set in order to offer the espresso
machines.
Economical factors  With the entry of the global competitors in the
Australian market, the competition is also increasing.
 The more will be the intensity of the competition, the
less will be the profitability of MacVille.
 However, the economy of Australia is growing and
thus, the purchasing power of the average
customers is also increasing. This will help MacVille
to have more market opportunity and potentiality in
the Australian market.
 Global competitors are having more updated and

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latest technologies in terms of the espresso
machines. Moreover, number of distribution centers
deal with more updated machines (Stadtler, 2015).
Thus, it is difficult for MacVille to get matched with
the global standards.
Social factors  Australian market is familiar with the concept of
espresso. Thus, it is easy for MacVille to operate
and penetrate in the market.
 According to the reports (Chartsbin.com, 2018),
majority of the population in Australia consumes
coffee over tea. Thus, the market potentiality for
MacVille is more in Australian market.
 Coffee is treated as complementary drink rather than
optional to luxury items. Thus, the demand for coffee
is more in the Australian market that will also help in
having more market opportunity for MacVille. The
more will be the demand for coffee, the more will be
the demand for espresso machines.
 However, with the rapid change in the social
environment in the Australian scenario, the taste and
preference pattern of the customers are changing.
This is important for MacVille to effectively cope up
with the market change and offer products
accordingly.
Technological
factors
 Technology is one of the major areas for
consideration for MacVille due to the fact that the
effectiveness of the espresso machines is depending
on the technological advancements.
 It is important for MacVille to stay ahead in terms of
using technologies to compete with the global
competitors.
 However, it should also be noted that huge
investment is required in order to have advantages

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in terms of technologies in the industry.
Determination of the internal environment
Strengths  MacVille is having the benefit of the Australian borne
compnay. Thus, they are having the psychological
benefits over their global competitors (Loi et al.,
2014).
 MacVille being an Australian borne company is
having more market knowledge compared to the
global rivals.
 MacVille is having marketing oriented organizational
values. Thus, it helps them to effectively cater to the
market demand and requirements.
Weaknesses  MacVille is having lower brand value compared to
their global competitors.
 They are only operating in the Australian region.
Thus, they are trailing behind their major competitors
in terms of exporting and importing in the different
regions around the world.
 They deal mainly with only the espresso machines.
Thus, they are having less diverse market compared
to the diversified offerings of their major competitors
(Rabetino et al., 2015).
 Being a relatively new entrant in the market,
MacVille is having less access to finance and capital.

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Opportunities  The market opportunity for them will get increased if
MacVille can enter in the foreign countries. This will
increase the market area for them.
 Business opportunity will further get increased for
MacVille if they can diversify their business
potentiality. This will increase their customer share to
a large extent.
 Corporate culture is increasing in the Australian
region and thus the more will be the popularity of the
corporate culture, the more will be the demand for
espresso machine (Schwartz, 2013). This will help to
increase the market potential for MacVille.
Threats  Emergence of more number of competitors in the
market will further increase the threat of competition.
This will also reduce the profitability of them.
 Emergence of international trade issues and
challenges such as global economic recession will
affect the trade potential for MacVille.
 International politics are fluctuating in nature. Thus,
emergence of negative diplomatic relationship with
ay countries will pose threat for MacVille. This is due
to the reason that negative diplomatic relationship
with the importing countries will pose challenge in
sourcing the materials (Nye & Welch, 2014).
Competitors of MacVille in Australia
MacVille Distributors Australia Pty. Ltd. has a successful import or export
business in Sydney. The organization has been planning to further expand its
operations in the coming years by reviewing the vision and mission and setting new
objectives for its growth. The values of MacVille has remained same from the start of

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its operations in Australia. The growth plan thereby requires changes in the mission
and values so that the various objectives can be achieved easily. The organization
has some major competitors in the country who have provided a tough time to
MacVille which has led to the changes in the mission and values.
The major competitors of MacVille in Australia are, Vittoria Coffee, Coffee
Distributors Australia, Australian Café Supplier and Fine Food Wholesalers.
Vittoria Coffee Shop is a premium coffee retailer in Australia which is known
for exporting products like, coffee beans, ground coffee, Espressotoria Coffee
Capsules, compatible capsules and many more. Vittoria is a family owned coffee
producing organization which has pioneered in the development of coffee industry of
Australia. The rich history of the organization and the commitment that has been
showed towards the quality of products has been made them the number coffee
brand in Australia. The company has 60 years of experience in coffee roasting in a
technological manner in entire Australian coffee industry. The roasting facilities that
are operated by Vittoria in Australia are sophisticated in nature and have specialised
in the art and science of coffee roasting.
Australian Coffee Distributors is considered to be a fastest coffee company in
the Australian industry. The organization has partnered with some of the best brands
in the coffee industry. The organization also uses world class machinery for the
purpose of manufacturing high qualities of coffee. The goal of the organization is to
help in the growth of the business organization which are its partners. The various
beverage solutions that are provided to the café based businesses are made to suit
their needs in a perfect manner.
Green Bean Coffee Australia also supplies its special coffee products to
various locations in the world. The organization offers a wide variety of products to
the various business organizations.
Off Grid Coffee Roasters are focussed on the production of coffee and other
coffee base products in a sustainable manner. The organization supplies to products
to more than 10 countries in the world. The company is dedicated towards providing
the best quality fresh coffee to the huge range of customers that it has all over the
world.

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The competitors of the company namely, Vittoria Coffee, Australian Coffee
Distributors, Australian Café Culture and Fine Food Wholesalers occupy, 30%, 20%,
15% and 15% share of the Australian coffee market respectively. On the other hand,
MacVille coffee occupies around 30% of the total share in the market in Australia.
The organization has been providing tough competition to the other players in the
market, however, the competition is becoming fierce by the passing time and
MacVille thereby needs to devise strategies so that it is able to maintain the position
that it has held in the Australian market.
Tender submissions of potential allies
Tender relates to the process by which the governments invite bids for various
projects. This is a process of making offers, proposals or bids to the different
organizations in the industry. The tender documentation includes the construction
based projects. The submission of tender is made to the potential suppliers of the
company so that they are able to supply the services or the goods. The tender
documents are further prepared by the organizations to seek the tenders
successfully.
The potential allies or suppliers of MacVille need to supply the tender
documents to the organization regarding the prices and the raw materials that they
will supply to the organizations. The tender documents need to carry the entire
documents that are related to the prices of materials and the various other attributes
that are required by the company to consider before it is able to enter into an
agreement with the various suppliers or allies. The tender submissions are thereby
related to the information that needs to be provided to the organization for the
purpose of understanding the requirements of the production and various other
information is also provided in the documents in a detailed manner.
Assessment Task 3
Strategic objective is the term which denotes the highest levels of goals that
are set by an organization or individuals of the organization. The strategic objectives
are used by the organizations for strategic management of the different processes
that can further lead to the achievement of organizational goals. The strategic
objectives are set by the management of the organization according to the mission
and vision that has been established at the start of its operations. The objectives are

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always aligned to the values and the long-term vision of the organization regarding
the operating processes and goals that they wish to achieve in the future. The
strategic objectives are considered to be fundamental building blocks of the strategic
business plan formulated by the various organizations. The strategic objectives that
can be set for the purpose of achieving the goals and improving the market position
of MacVille are as follows,
The 4 strategic objectives that have been stated for the organization are as
follows,
Strategy 1 – The organization has been facing a lack of innovation in the
products and the process of production as well. The purchase of new and improved
machines and adding items to the existing product line of MacVille will be a major
objective of MacVille and its future growth plans as well.
Strategy 2- MacVille has also faced a huge lack of financial backup for the
purpose if increasing the operations in other major areas of Australia and the world.
The organization thereby needs to arrange for the huge amounts of financial strength
by increasing its assets and creating a unique position in the market.
Strategy 3 – The lack of diverse types of machines in the factories of
MacVille has caused issues for the increase of revenues of MacVille in the industry.
The increase of high levels of competition further increases the need to
implementing changes in the strategy that is formed by the organization previously.
Strategy 4 – MacVille lacks brand value in the coffee industry. The main
reason being the lack of experience of the organization in the market. This had
caused issues in the increase of its revenues and growth in the coffee based
industry of Australia. The fourth objective is thereby related to the increase of
promotional activities of MacVille so that the organization is able to gain a greater
space in the market.
Information related to the formation of strategies
Strategy 1a – The first objective is related to the increase in the innovation
levels of the organization so that it is able to compete with the other coffee
distributors like, Vittoria Coffee who are known in the market for producing high
quality products with the help of innovative machines.

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Strategy 1b – The increase in the innovation capabilities will further help in
the increase of revenues of the company as the demand for its products will increase
to the highest levels.
Strategy 1c – The implementation of innovation can cause increase of the
capability of the organization to provide the best products to the various
organizations. This will increase the customer base of the organization and it will be
able to operate in the country in a profitable manner.
Strategy 2a – The second objective is based on the increase of the financial
capabilities of the firm which will help in increasing the revenues of the organization
to the highest levels. The financial capabilities will increase the resources of the
organization which will help it in the achievement of goals easily.
Strategy 2b – The financial backup will be helpful for the company in the
future expansion related plans that have been framed by the management to reach a
specific goal.
Strategy 3a – The third objective is related to the increase in the diversity of
the organization related to the products that it offers to the various customers in
different areas of the world.
Strategy 3b – The increase in diversity will lead to the implementation of new
and improved machinery in the organization and production of better products to
offer to the customers. This will further help in increasing the product line of the
organization and improve its position in the market in an effective manner.
Strategy 4a – The lack of brand value of MacVille in the industry has been
addressed by the fourth objective. The brand value of MacVille can be increased by
improving the promotional activities that are conducted by the company in the
market.
Strategy 4b – The brand value of the organization will be increased with the
help of high levels of promotion and this will lead to the expansion of the organization
in the other areas of the world.

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Assessment Task 4
Objective 1 – The first objective is related to the improvement of the
innovation levels of MacVille. The increase of innovation can be analysed with the
help of the products that are added to the existing product line of the organization.
Objective 2 – The increase in the financial backup of the organization can be
measured by the assets that are already owned by the company and the increase in
assets that has been seen.
Objective 3 – The increase in diversity of the organization can be measured
by the improvement of the product line of MacVille that is offers to the customers.
Objective 4 – The improvement of the brand value of the company can be
measured or detected with the help of the levels of brand awareness that has been
created by the organization in the market.
Progress in the achievement of goals
Objective 1 – The organization can progress with the achievement of the
goals with the help of its employees within 1 year of the implementation of the
strategic objectives.
Objective 2 – The progress of the organization is related to the increase of
the financial strength and backup which has been gained in the recent times.
Objective 3 – The progress of the third objective can be detected by
analysing the products that are the company has been able to offer to the customers
after the implementation of new strategies.
Objective 4 – The increase of brand awareness can be measured by
analysing the number of people who have information about the progress of MacVile.
Overall progress in the achievement of goals
Objective 1 – The overall progress of MacVille can be analysed with the help
of the analysis of the innovation levels that are experienced in the organization.
Objective 2 – The overall progress related to the fourth objective can be
analysed by the detailed examination of the financial strength that has been derived
by the company.

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STRATEGIC MANAGEMENT ANALYSIS
Objective 3 – The overall progress of the third objective can be measured by
analysing the diversity of product lines of the company.
Objective 4 – The overall progress of the fourth objective can be measured
with the help of the analysis of the number of people or business organizations which
have the knowledge about the products of MacVille.
Improvements in the organization
Objective 1 – The achievement of the first objective that is related to the
increase of innovation related capabilities will help in the increasing the revenues of
the company in the coffee industry within the next five years.
Objective 2 – The achievement of the second objective which is related to
the increase of the financial backup will increase the chances of sustainable
operations of the organization in the Australian coffee industry.
Objective 3 – The achievement of the third objective is related to the increase
of diversity of the organization in the coffee industry. This will help the company to
create a position in the industry against the rivals who are operating in this area for
many years.
Objective 4 – The achievement of the fourth objective will further increase the
opportunities of growth of MacVille with the increase of the awareness of its brand as
compared to the other organizations in the same industry.

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