Strategic Plan Report for MacVille: Analysis, Implementation, Review

This report provides a comprehensive strategic plan for MacVille, encompassing an organizational review, environmental analysis (PEST and SWOT), and the identification of competitors and allies. It includes a revised mission and vision, strategic objectives, and corresponding strategies. The report further analyzes implementation progress, detailing KPI achievements, milestone completions, and overall effectiveness. Finally, it offers recommendations for improvements to ensure the continued success of the strategic plan. The analysis considers factors like political, economic, social, and technological influences, as well as competitor and ally dynamics. The report evaluates the progress of key performance indicators (KPIs), milestones, and overall effectiveness, and suggests necessary refinements to the implementation process. This analysis is based on case study information and aims to provide a clear path forward for MacVille's strategic objectives.

Develop and implement strategic plans

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Contents
Assessment Task 1 - Organisational review..............................................................................2
Assessment Task 2: Environmental analysis.............................................................................5
1. PEST Analysis....................................................................................................................5
2. SWOT Analysis..................................................................................................................5
3. Existing and potential competitors and allies:....................................................................7
4. Potential allies tender submissions show...........................................................................9
Task-3: Strategic planning -MacVille......................................................................................11
Strategic objectives for MacVille.........................................................................................11
Task - 4: Reviewing Implementation.......................................................................................14
I. KPI Progress......................................................................................................................14
II. Milestone Progress:..........................................................................................................16
III. Overall Progress:............................................................................................................18
IV. Improvements.................................................................................................................19
References................................................................................................................................21
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Assessment Task 1 - Organisational review
To,
The key stakeholders for review,
Subject: Mission and Vision Review of MacVille
1. Existing vision and mission:
The Macville existing mission as per the case study is to improve the business by delivering
the espresso coffee machines that can meet up the sustainability, reliability and efficiency
needs of the customers related to hospitality who can result into generating more profits to
the business. The existing mission statement of Macville is also written while considering
the community or the stakeholders who can help in the environment of Macville in which it
currently operates.
The Macville existing vision as per the case study is to become a reputed and well-known
brand in Australia within the next five years while providing best cafe going experience to
the customers and this can be accepted as a core element of the hospitality industry and
prominent element in the attainment process of establishments of hospitality sector, both in
small as well as large scale.
2. Current approaches
The current understanding of the organization and the enactment of the vision and mission
statements are:
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Strategic Alliances: It is required by the Macville organization to follow the strategic
alliances and aim to strive at building long term business partnership that promote and
support the mission of Macville, its desired results in terms of profit generation while
aligning effective strategies.
Incorporate Innovation: It is required to adapt innovation into the mission statement of
Macville because from the mission statement the desired outcome can be get from the self-
directed team.
Community: The Macville is required to have good corporate citizen that lead to have more
recognized responsibility to take active participation in the local communities, and motivate
them to fund some profit percentage to the non –profit organizations or the communities
annually.
3. Revised vision and mission:
Business review of the MacVille assists in getting the insights on the revised vision and
mission statements. The modifications have been made to the mission and vision statement
depending upon the result of review. Thus, depending upon the outcomes of the review, it can
be stated that at the revised statement implement the requirement for determination of the
society and the community that the company serves. Further, the modifications in the mission
and vision statements of MacVille have been made by taking into consideration the
requirement of the business to become good corporate citizens. This assisted in the
recognition process of distinct responsibilities to become an active participant in the society.
The revised statements comprise of the prominence of implementation of Sustainable
practices for taking into responsibility the corporate citizens that can assist in the
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improvement of community and its people. The creation of growth potential of the
organisation along with the society helps in increasing the profitability of the business as well
as can assist in distinct community as well as non-funding organizations.
4. Organisational values: The MacVille review provided the insights that the business value
has not been improved over time and the concerns has remained still for very long time.
However, the company's stewardship and adherence to different regulations as well as
standard in performing the different business activities is considered as prominent for the
stakeholders of the organisation. The company is committed towards the different self
directed team encouragement, maintenance of top level, and motivate the eco friendly
business practices as well as managing their distinct customers value.
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Assessment Task 2: Environmental analysis
1. PEST Analysis
a. Political: There is a planning to eliminate the changes in the tariffs, trade plans on imported
products so as to align the free trade policy aspects with the government.
b. Economic: It has been anticipated that the Macville business has increased growth than the
expected value. Therefore, the Macville resources may lead to regular boom. Further, it has
been determined that the Australian currency or dollar strength against the trading partners of
the Macville can be considered as a concern for the next few years.
c. Social: It has been analyzed that the Australian Government has imposed the carbon taxes
for society welfare and therefore, there is a probability that the introduction of such taxes may
lead to launch the products related to the intensive energy. This is because such product types
are mostly used in the commercial industries. Also, it has been analyzed that the population
growth in Australia might increase by 14 million by 2050 as the population in 2010.
d. Technology: The new commercial espresso machines, has led to approx 30 percent less
energy consumption per the case study. Thus, the era of technology can be considered as
much more efficient and innovative thing in the market. Therefore, the new technology
implementation within the MacVille may lead to impact the market as well as the country in a
positive way.
2. SWOT Analysis
a. Strengths: As per the case study, it can be said that the Macville operations, marketing and
sales and after sales service are the strengths of the company. The main intention of the
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company is to cover the potential market for espresso machines. It has also been analysed that
the espresso machines provide a full range to the target audience especially in the commercial
market.
b. Weaknesses: The main weaknesses of the Macville are the logistics related to the inbound
and outbound strategies. Further, the company is presently working with strategic partners
who are not solely emphasized on the hospitality market. Therefore, it can be considered as a
core weakness for the company.
c. Opportunities: The main opportunities which have been studied through the case study for
the Macville are the strategic alliances and the new Sydney market. The modifications made
by the management and directors of Macville on the vision and mission statements as per the
demand and requirements of the customers can be considered as the opportunity for the
Macville business. Further, it has also been analysed that Macville pays attention to the
potential target market and the customer in Sydney and sells the home espresso machines
while implementing the home entertainment products. Therefore, the Macville has varied
opportunities as the company provide different services and products, have large customer
base, and large targeted and potential market (Mintzberg, 2013).
d. Threats: The entrance of global Corporation to the market and rise in the Australian Dollar
can be considered as the potential threats to the Macville business. There are the threats or the
risks which are regarded to the company because of the specified business partner who are
not committed related to the financials. Furthermore, the link of non industry partner can be
considered as putting negative influence on the target users of Macville espresso machines.
The other risk or threats to the regulations and the operations of the Maxwell are the access to
the secrets of the trade of Maxwell business.
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3. Existing and potential competitors and allies:
a. Competitor 1: NewFix Inc.
i. Strengths: The main strength of the New Fix Incorporation is the access to the
resources. The company has shifted from selling the coffees to the coffee and
espresso machines and possess strong human resources, finance, and marketing
skills.
ii. Weakness: The weakness of New Fix Incorporation is the lack of client
allegiances and complexity in implementing the requirement of niche market
b. Competitor 2: BeanEx
i. Strengths: The main strength of BeanEx is the ease to market entry and sales of freshly
imported espresso machines to distinct customer base.
ii. Weakness: The main weakness of BeanEx is failure to establish the maintenance
department in order to offer after sales services to their wholesale customers.
c. Ally 1: Home Espresso Traders
Strength: The strength of home Espresso traders comprises of the consumer market that
covers the range of customers for espresso machines that require commercial machines to be
implemented in their company. The joint business with home Espresso trade with MacVille
helps in sharing the space in four different trade fairs.
Weakness: The weakness of the alliance with Home Espresso Trade is the company does
not emphasize on the hospitality industry. This includes the risk of making the alliance with
the company that is partnering with the Home Espresso Trade. It does not fulfil the financial
commitment and comprise of the risk related to the trade secret as link with non hospitality
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sector partner may negatively influence on the target consumer base (Eden & Ackermann,
2011).
d. Ally 2: Ambrosia Coffee Roast
Strengths: The Ambrosia coffee roast sells all types of coffee beans and the joint venture of
the Ambrosia Coffee Roast with Macville business helps in sharing the advertising cost at
different outlets of Cafe in Australia
Strength: The strength of making an ally with Ambrosia coffee roast is, it helps in sharing
the customer base.
Weaknesses: The weakness comprises of the image of the product which is especially based
on commodity and not on the quality. That is, there is a risk behind the ally which is the
linked with poor quality brand and the long term contract of the business partnership with the
company.
e. Ally 3: Java Estate
The Java estate sells the Arabica coffee beans of high quality in almost all states of Australia.
The joint venture of MacVille with Java estate helps in providing the espresso machines to
the customer base at minimal or no charge
Strength: The strength of making an ally with Java estate is that it helps with 100%
commitment to the hospitality industry as well as The Coffee Bean market. That is, it helps in
providing the MacVille with more exploration to the customer base
Weaknesses: The weakness with this is that the other suppliers of coffee beans may not
suggest or recommend the implementation of MacVille coffee espresso machines with this
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strong partnership. This leads to the issues related to the outstanding amount (Ackermann,
2011).
4. Potential allies tender submissions show
a. ALLY 1: Home Espresso Traders
The alignment of the business values and the mission/vision statement is too narrow because
of its existence in Sydney only rather than the entire Australia. Also, it is too diverse as it
implements and provides services and products like home entertainment. The financials of
home espresso traders are fine and provide a positive net worth buy fairly minimal equity.
The home espresso traders are prepared to supply diligence materials to their customers or
existing client but is not over all good because it comprises of the association with the brands
which possess risk and also the partners of espresso traders are not financially that strong
which can help in making great profits. The tender needs which are demonstrated in the joint
venture of Macville with the home espresso traders can assist in targeting the entire market
for espresso machines and can assist in partnering with related strategic partners that are not
certainly focused on the hospitality sector. The trend analysis related to the venture provide
the insights on the sales that can help in increasing the profit margins.
b. ALLY 2: Ambrosia Coffee Roast
The alignment of the organisation values, vision and mission statements are fine as they are
in the same business domain but are more diverse towards the different market, Industries as
well as selling the products to the supermarket with different product qualities. The trends in
financials of Ambrosia coffee roast are not provided and the company is not prepared to
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deliver due diligence material. It can be concluded that the company is overall poor fit as an
ally because of the bad brand Association risk and lack of information provided. The venture
with the Ambrosia coffee roast assisted in outdoor advertising and the trend analysis
demonstrates that the company was able to increase the sales profit by $ 3.3 million in the
five years calculated from year 2007 to year 2011 (Silver, Harel, Weizman, & Thomas,
2016).
c. ALLY 3: Java Estate
The ally with the Java estate is positive as the alignment of the organisation values, vision,
and mission statement are perfectly incorporated. There is wide outlook of the company in
Australia and the company focus on quality products only. The trends in financials are mostly
supplied and thus, it provides significance to the net asset to the company which further leads
to strong sales growth continually coupled with strengthened cost benefit analysis. The Java
estate is also prepared to supply all diligence materials and thus is overall good fit because of
the association with the quality, sales strength, and brand and financial position of the
company in Australia wide Outlook. The venture with the Java estate can assist in meeting
the entire hospitality market and the trend analysis helps in evaluating the sales of the
company which has been increased in 5 years from $8.2 million to $16.3 million calculated
from the year 2007 to year 2011.
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Task-3: Strategic planning -MacVille
Strategic objectives for MacVille
Objective 1: The first objective of the company is to sell the MacVille espresso machines
and provide the services in every state of Australia. For this, the company has decided to
follow the following strategies:
a) Opening operations in every state: The first strategy is to expand the territory by
setting the warehouse in other states of Australia.
b) Establishing Agents’ Network: The second strategy is to implement joint venture
program by accepting the tender notice from Java estate.
c) Outsourcing Maintenance: The third strategy is to outsource the maintenance by
making the agreement for maintenance and agent contract
Objective 2: The second objective of the company is to increase the sales profit by 5% from
the 2010 benchmark and setting it for the next 5 years. For this, the company has opted for
the following strategies:
a) Bulk Buying: The first strategy is for the bulk buying which will help in negotiating
the price of the purchase and providing the discount on the purchase in order to
decrease the cost of the operations. The key performance indicator in this strategy is
to make the load of container 100% within the three months.
b) Operate at optimum capacity: The second strategy is to operate at optimum capacity
in order to improve the productivity and the key performance indicator in this strategy
is to turn over the wage ratio of 12. 5% within one month (ICMA, 2017).
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Objective 3: The third objective of the company is to create the Macville brand recognition
for next 5 years in the key markets. For this, the company has opted to follow the following
two strategies
a) Creating Brand Recognition: The first strategy is the use of technology in order to market
the product of the company through social interactions, networking and the internet. There
will be the responsibility of Social Engine optimization specialist contractor to review the key
performance indicator of 10, 000 web visits on the Macville website/ social accounts per day.
b) Strategic co-branding with partner: The second strategy is co-branding with partner which
will utilise the logo of the company on the cups which are required to be sell to the customers
along with the espresso machines. The key performance indicator in this strategy is to review
if all the companies implemented the Macville machines are using the company cups and it is
the responsibility of the marketing department to monitor this strategy and must implement it
within the time frame of four months.
Objective 4: The fourth objective is to reduce the energy and waste by 10% for the year 2010
benchmark within the next 5 years. The strategies which can be followed by the MacVille
company are the following:
a) Innovation and reward program: This strategy will help in motivating the ideas for
submission on continual or regular improvements and rewarding initiatives. The key
performance indicator in this area will be implementing six innovations and
approximately 25 suggestions and the responsibility of the operations or the HR
manager will be there in order to monitor the program per year.
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b) Implement and create energy use program: This second strategy is to implement and
create the energy use awareness program in order to drop the consumption of energy
to Kilowatt per person. This is again the responsibility of the HR manager to monitor
the performance indicator within six months (Rumelt, 2011).
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Task - 4: Reviewing Implementation
I. KPI Progress
Objective 1 - To sell and service MacVille espresso coffee machines in every state
of Australia in the next 5 years.
i. Strategy (a) – Underachievement in Key Performance Indicator by 10 percent.
Because of the strength of the Australian dollar, the company failed to meet the
target of selling 200 machines and thus met the target of 180.
ii. Strategy (b) –There was a failure to the implementation of new warehouse
project.
iii. Strategy (c) – There are the own agents for every state of Australia accept the
northern territory
Objective 2 - To increase profit margins by 5% from our 2010 benchmark in the next
5 years.
iv. Strategy (d) – This objective has been met following the key performance
indicator as the company was able to fill the container to its 100% volume.
v. Strategy (e) – There was a failure to achieve the turnover of the wages. There was
an achievement of 12.5% which has to be 13.8 percent. Therefore, this object ve
is still in line with the strategy
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Objective 3 - To establish the MacVille brand recognition in our key markets in the next 5
years.
vi. Strategy (f) – There has been an over achievement of this objective as the target
set by the company of 1, 00, 000 clicks per day has been rolled over by 12, 000
clicks.
vii. Strategy (g) – A confirmation has been provided by the report that only half of all
coffee was distributed using the new Macville cups. That is, there was an
achievement of only 50 percent Key Performance Indicator (Nag, Hambrick , &
Chen , 2016).
Objective 4 - To reduce our waste and energy use by 10% from our 2010 benchmark within
the next 5 years
viii. Strategy (h) – There has been an over achievement of this key performance
indicator by approximately 30 submissions of latest projects and its
incorporations and implementations of latest innovations.
ix. Strategy (i)– This strategy has not yet been achieved as there was a target of the
company to drop the kilowatt usage per individual to 10 kilowatts while it still
stays at 12 the kilowatt usage per individual.
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II. Milestone Progress:
Objective 1 - To sell and service MacVille espresso coffee machines in every state
of Australia in the next 5 years.
i. Strategy (a) – An agreement has been signed with Java Estate and both the
companies agreed and paid attention to the development and establishment of
effective action plan for further undertakings. However, the establishments of
action plan are not yet secured
ii. Strategy (b) – This milestone has been missed, which was to create a store.
iii. Strategy (c) – There has been a failure to meet the milestone target of Northern
territory. Further, all other milestones have been achieved by the company by 90
percent.
Objective 2 - To Increase profit margins by 5% from our 2010 benchmark in the next 5
years.
This objective is still within timeline.
iv. Strategy (d) – This strategy has been achieved by the company within time frame.
v. Strategy (e)– This strategy has not yet been achieved and still within time frame
Objective 3 - To establish the MacVille brand recognition in our key markets in the
next 5 years.
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After 2 years, 50% of Macville target market recognize the brand and 87% of those
responding to the market of Macville provided the positive feedback to the company.
vi. Strategy (f) – This strategy has been over achieved by Macville by 20%
vii. Strategy (g) – The company was able to meet only 50% of Key Performance
Indicator (Hambrick, 2017).
Objective 4 - To reduce our waste and energy use by 10% from our 2010 benchmark within
the next 5 years
The company was able to lower the waste by 8% which was set to 10 % as per 2010
benchmarks.
viii. Strategy (h) – The company was able to overachieve this strategy in terms of
implementation and suggestions of latest innovations.
ix. Strategy (i) – The company still failed to meet the target of lowering the
consumption to 10KW as is still 12kW per individual.
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III. Overall Progress:
Objective 1 – To sell and service MacVille espresso coffee machines in every state of
Australia in the next 5 years.
 The company was able to achieve the target over 80% and the opening of the store in
Melbourne not influenced the overall growth of the organization. It is required to
make one appointment in Northern territory. It has also been studied that the sales of
the company is short by 10% when compared with the estimated or targeted sales.
 The company was able to sell 180 machines which was Targeted to 200.
Objective 2 – To Increase profit margins by 5% from our 2010 benchmark in the next
5 years.
The company was able to meet the target up to 80% achieved. The Buying target of Macville
has been achieved, which will help to meet the strategy of wages to sales ratio that will
further result in improved sales growth. The company has achieved approximately 50 percent
as is inline towards margin target (Narikae & Lewa, 2017).
Objective 3 – To establish the MacVille brand recognition in our key markets in the
next 5 years.
 The company was able to meet the plan over 80% of plan achieved. Approximately
50% of the customer base was not aware about the brand and the strategy behind
implementing the internet marketing or Social Engine optimization is also
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overachieving. The concerns related to colour and design of the cup has not been
solved yet.
Objective 4 – To reduce our waste and energy use by 10% from our 2010 benchmark within
the next 5 years
The company was able to meet the target by 70% but the company can put more emphasis on
the Waste management which will help them to make effective use of the energy.
IV. Improvements
Objective 1 – To sell and service MacVille espresso coffee machines in every state of
Australia in the next 5 years.
o The company can put forward the strategy to launch new warehouse in Melbourne.
The CEO or the top level of the company can take the voluntary steps toward opening
the new store in Melbourne and must assign the responsibilities to some of the key
people of the company to drive this strategy toward success.
o The company can carry forward the strategy by making the appointment in Northern
Territory for service contractor. The company can implement the strategies of digital
marketing and must put the subscription or referral features and functionalities from
appointed agent.
o The company must work with strategic partner in order to improve the sales of the
machines to 200 annually (Nag, et al., 2016).
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Objective 2 – To Increase profit margins by 5% from our 2010 benchmark in the next 5
years.
The company must set the strategies to keep increasing the sales in order to meet the target
levels of the sales ratio. The company can also determine or monitor the usage of casual and
must determine the resources transfer from low performing areas to performing areas or must
encourage them to utilize their skills and expertise to improve the sales.
Objective 3 – To establish the MacVille brand recognition in our key markets in the
next 5 years
 The company is required to get the reputation of sales in order to make the audience
recognise the brand. The agents of the company are required to put forward the steps
in order to drive the recognition through regular visits or updates to the customers.
 The company must solve the issue of colour and cup design and must get the effective
feedback regularly from the cafes that did not opt to buy the Macville cups.
Objective 4 – To reduce our waste and energy use by 10% from our 2010 benchmark within
the next 5 years
The company can implement the effective strategies in order to make better utilization of the
energy program and the top level or the CEO of the company is required to take the initiative
in order to sell the energy use program to the entire organisation (Silver, et al., 2016).
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References
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https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.615
ICMA (2017) Strategic Planning for Local Government, Available at:
https://icma.org/publications/strategic-planning-local-government-2nd-edition-pdf
Mintzberg, H. (2013) The strategy process : concepts, contexts, cases: Trove, Available at:
https://trove.nla.gov.au/work/6653064
Nag, R., Hambrick , D. & Chen , M. (2016) What Is Strategic Management, Really? -
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https://pdfs.semanticscholar.org/1442/81c4f72e4b35fb46a5f41e7e5a1b881749c3.pdf
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“knowledge”: a historical perspective. European Journal of Business and Strategic
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Rumelt, R. (2011) Good Strategy and the Bad Strategy: Difference and why it matters,
Available at: http://www.anzishaprize.org/wp-content/uploads/2016/04/Richard-Rumelt-
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Silver, S., Harel, Z., Weizman, A. & Thomas, A. (2016) How to Begin a Quality
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