BSBMGT616: Strategic Plan Development Case Study Analysis

This assignment presents a detailed analysis of strategic plans for two companies: Bounce Fitness and MacVille Coffee. The Bounce Fitness section includes an environmental scan with SWOT and PEST analyses, a cost-benefit analysis, vision and mission statements, critical success factors, and an implementation schedule. The MacVille Coffee section focuses on analyzing the external and internal environments using PEST and SWOT analyses, evaluating existing and potential competitors and allies, and developing new strategies. The case study also requires a review of the potential allies for MacVille, providing insights into their strengths and weaknesses. The analysis aims to identify opportunities for competitive advantage and strategic development for both companies, offering a comprehensive overview of strategic planning and implementation in a business context.

Running head: DEVELOP AND IMPLEMENT STRATEGIC PLANS
Develop and implement strategic plans: Case study analysis
Name of the Student:
Name of the University:
Author note:

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Task 1: Strategic plan for Bounce Fitness
Bounce Fitness is the corporate healthcare provider operating in Brisbane, Sydney and
Melbourne with an aim to help the corporate worker to be more productive while reducing the
total costs of the corporate organizations by offering innovative wellness strategies and
programs. For developing a strategic plan for Bounce Fitness, environment analysis, vision and
mission, critical success factors, actions and strategies for the objectives will be examined and an
implementation schedule will be provided.
1. Environmental scan
This includes internal and external environment and cost benefit analysis for Bounce
Fitness.
SWOT analysis
Strengths  Ties the employee productivity directly with good health
 Helps the employees to choose healthier lifestyle for having good
health, be more productive, reduce absenteeism and reduce
treatment cost for the companies
Weaknesses  Lack of adequate number of healthcare counselors and trainers for
providing personalized service
Opportunities  Increased usage of fitness facilities in individual lifestyle
 Fitness membership is being provided as a part of the
compensation package by organizations
Threats  Number of skilled workers available to fill new jobs is decreasing
 Increasing competition in this market from rivals, such as,

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Forever Fit Gym services, Better Bodies and various community
fitness programs and school facilities.
PEST analysis
Political  Political environment in Australia is quite stable and liberal which
is beneficial for all types of business growth
Economic  Australia has been experiencing uninterrupted economic growth
for more than two decades, resulting in more disposable income
to the customers and over the decades investments in the fitness
industry has increased, which have improved the equipment and
services.
Social  Market for fitness industry has been expanding due to rising
awareness about healthcare, benefits of good heath, impact on
daily life and lifestyle changes which have increased the demand
for fitness regime
Technological  Similar to other industries, the fitness industry is also
incorporating latest technology to provide more precise and
advanced fitness equipment.
 R&D investments are being made for producing advanced
equipment in the home market, so that import of equipment can
be reduced.

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Cost benefit analysis
Revenue sources (In AUD million) Year 1 Year 2 Year 3
Corporate membership 10 12 15
Private training subscription 0.5 0.6 0.75
Franchise 1.2 1.4 1.8
Total revenue 11.7 14 17.55Cost (In AUD million) Year 1 Year 2 Year 3
Rent 0.75 0.52 0.58
Salaries of employees and trainers 2 1.2 1.6
Equipment cost 1.5 0.7 0.6
Marketing cost 0.6 0.65 0.55
Total cost 4.85 3.07 3.33Profit margin (Revenue - Cost) (In
AUD million)
6.85 10.93 14.22
Table 1: Cost Benefit analysis for Bounce Fitness for the next three years
It can be seen from the above table for cost benefit analysis for Bounce Fitness, that the business
will be profitable in the next years.
2. Vision of Bounce Fitness
Vision of Bounce Fitness is to establish itself as a fitness service and plan provider to the
corporate employees in the regions of Brisbane, Sydney and Melbourne by promoting the

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necessity of good health for a better lifestyle and higher productivity for the individual
employees and reduce healthcare cost for the corporate organizations.
3. Mission
The mission of Bounce Fitness is to increase the health and fitness of the corporate
employees in the areas of Sydney, Melbourne and Brisbane by promoting the positive impact of
good health and healthy lifestyle on the productivity of the employees and by reducing the
healthcare package costs of the organizations and thus, by increasing profitability.
4. Critical success factors
The critical success factors for Bounce Fitness are:
 In Bounce Fitness, approach towards healthcare and related services is different which
attracts the customers. Unlike conventional methods, this enterprise emphasizes on
changing behavior pattern and lifestyle of the employees as that they promote the concept
that healthier employees are more productive than the chronically ill employees.
 They also promote that the illness prevention cost is much less than the cost of treatment
and hence, by implementing their business idea, the corporate organizations can reduce
their cost of operation and increase profitability as their employees would be more
productive due to maintenance of good health and healthier lifestyle.
 Bounce Fitness also advertises that good health of the employees reduce absenteeism and
employee turnover, decreases healthcare compensation claims by the workers, and
healthier and motivated pool of employees would result in higher production and this

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promotion idea has helped the company to earn reputation in the corporate fitness
industry.
 The rapid growth of population and increasing unhealthy lifestyle of people opens up
opportunities for an unconventional healthcare and awareness initiative by Bounce
Fitness
5. Strategies and actions for objectives
Bounce fitness can develop the following strategies and actions for fulfilling its mission and
vision:
 It should expand its market by approaching more and more corporate houses and public
sector organizations with seminars and free trial sessions. This will increase people’s
awareness about their wellness programs.
 It should also reach out to the target market with flexible and customized personal
wellness plans and programs as individual attention makes people interested in such
healthcare programs.
 Bounce Fitness should go for partnerships with fitness clubs and gyms in respective
regions to provide some basic gym facilities in the offices for the employees. This will
not only make the employees avail the fitness equipment during their office timing,
which is convenient for them, but the partnerships will also help the corporate houses,
gym companies and Bounce Fitness to fulfill their respective business goals in a cost
effective manner.
 The company should develop a result oriented strategy and improve the bottom line for
the companies so as to convince them to go for partnerships to achieve better health for

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the employees and higher productivity and earn higher profits in the long run and thus
expand their market share.
6. Implementation schedule
Task Name Duration Start Finish Predecessors
Health and Wellness
programs for
corporate employees
70 days Mon 9/2/19 Fri 12/6/19
Planning 10 days Mon 9/2/19 Fri 9/13/19
Program designing 20 days Mon
9/16/19 Fri 10/11/19 2
Arranging seminars
and workshops in
different corporate
offices
15 days Mon
10/14/19 Fri 11/1/19 3
Free trials for
employees 15 days Mon
11/4/19 Fri 11/22/19 4
Collecting feedback on
the effectiveness 10 days Mon
11/25/19 Fri 12/6/19 5
Table 2: Strategy implementation schedule

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Figure 1: Strategy implementation schedule

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Task 2: MacVille Coffee
MacVille Coffee is one of the primary espresso coffee machine suppliers in Sydney’s
hospitality industry. MacVille must improvise its vision, mission and business objectives for
gaining competitive advantage in the hospitality industry. For this purpose, MacVille should
analyze its external as well as internal environment and evaluate the existing and potential
competitors as well. On the basis of the analytical findings, new strategies can be developed and
implemented.
PEST analysis
PEST analysis framework is applied to examine the external factors that influence the
business performance, and PEST stands for political, economic, social and technological factors.
Political  Australian government is emphasizing on the carbon tax for
ensuring sustainability. It enables MacVille using energy
efficient products that is meant to boost profitability.
 Planned changes in trade will be made, and as per the free trade
policy, the tariffs on imported goods, including espresso coffee
machines will be removed
Economic  Resource boom is leading to greater-than-expected economic
growth in coming years
 AUD is strengthening against the international trading partners
and this is a matter of concern as that would result in costlier
imports and could also affect the exports

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Social  It is forecasted that the country will be experiencing a stable
population growth, from 22 million in 2010 to 36 million in 2050
and hence market size will be increased.
 There is stable growth in the domestic market for the espresso
coffee machines
 The trend of eating out is growing among the consumers
Technological  Advanced espresso machines are being manufactured, which use
30% less energy for operations and these also include more
efficient and innovative heat exchanger
SWOT analysis
SWOT analytical framework is used for examining the internal factors that affect the
business performance of a company and SWOT stands for strengths, weaknesses, opportunities
and threats.
Strengths  Excellence in customer service
 Prominent brand image in the industry
 Implementation of state-of-the-art management information system
(MIS)
 Strong in-house control in accounting and finance operations
 Excellent performance in marketing and sales
Weaknesses  Inbound logistics operation is weak due to inexperienced personnel in
the customs and importation operations
 Incompetent human resource management cause delay and setbacks in

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the services
 Outbound logistics is also not sufficiently proficient, with recurrent
delays in the goods delivery to the customers due to short of suitable
vehicles
Opportunities  Market for the espresso coffee machines are getting bigger in Sydney
and a significant but inefficient rival has withdrawn.
 Strategic association with the coffee bean suppliers around the world
grows opportunities for straightforward market penetration along with
shared costs of advertising and services
Threats  Rising value of AUD
 Increasing international competition and disposal within the company
 Entry of a rival, Bean Ex Company in the espresso market
 Nufix Inc. is shifting to the supply of espresso coffee machines from
manufacturing instant coffee
 Forecast of greater-than-expected economic growth
Existing and potential competitors and the allies:
1. Nufix Inc.: This company is shifting its business operations to supplying espresso coffee
machines from the manufacturing and selling of instant coffee
2. Bean Ex: It will be importing the espresso coffee machines for wholesaler customers
Nufix Inc. Bean Ex
Company profile Global company dealing with Large coffee bean supplier in

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espresso coffee beans the domestic market
Strength Business started from instant
coffee making and supplying
and it has shifted to coffee
beans
It is large coffee bean supplier
which will venture into the
business of importing espresso
coffee machines for the
wholesaler consumers
Weakness There is no established service
arm to help the wholesaler
clients.
It is also unable to provide
proper maintenance to the
machines purchased by them.
The company is struggling to
get a foothold in the domestic
market where there is already
strong buyer/supplier
adherence.
It is also facing challenges in
adapting to the needs of the
niche consumers
MacVille’s position The potential strategic alliance with the above mentioned
companies:
Nufix: it deals with both coffee beans and espresso machine
marketing
Bean Ex: it is unable to continue the wholesale business as well
as marketing but could be a potential partner as it is entering the
business of importing the new espresso machines
Review of the potential allies:
1. Home Espresso Trades