BSB60407 ADVANCE DIPLOMA OF BUSINESS MANAGEMENT

ASSIGNMENT

ON

BSBMGT616A DEVELOP AND IMPLEMENT STRATEGIC PLAN

Submitted by: Gurkirat Singh

Date 28/11/2014

PART A ORGANISATIONAL REVIEW (REPORT WRITING)

Objective of report: Review organisations vision andmissionby reviewing

case study and describe organisation planning process by providing inputs
wherever possible.

Scope of report: Vision and mission of organisation, current approaches to

obtain the objectives of organisation and organisational values.

Existing Vision and Mission

Vision
To provide customer best caf going experience

Mission
To open additional caf in NSW and Queensland and to become national brand
and be recognised as a integral part of hospitality industry.

Current Approaches
Engaging customer and customer research
Developing and improving product and services

Revised vision and mission

Vision
To be more innovative and find new ways to increase efficiency of processes
and effectiveness of customer solutions
Mission
To embrace strategic alliance and seek out new partnerships

Organisational values
To identify community needs.
Participate in local community.
Donate certain % profit to community.

Notes on meeting with Stakeholder

Development of new areas which were not recognised at the time of
previous planning.
To be innovative and motivate self-directing teams.
To participate in community.
Develop strategic alliance and partnerships.

PART B ENVIRONMENTAL ANALYSIS

PEST ANALYSIS:It consists of analysis of political, economic, social and
technological environment of organisation.
Political
Tariff on import of espresso machines will be removed.
Strong possibility of introduction to impose carbon tax on all energy
intensive products used for commercial use.
Economic
Strengthen of Australian dollar against trading partners in coming years.
Social
Lifestyle trend to eat out is becoming more affluent and frequent.
Steady population growth rate.
Technological
New espresso machines are developed which use 30% less energy.
Home market for espresso machines is experiencing high growth.

Value chain analysis

Inbound logistic:Lack of experience personnel for custom and importation.
Operations: State of art Management information system provides for
internal control and strategic planning.

Outbound logistic: Contracted Delivery Company is not able to deliver

machines on time due to fast expansion plans.
Sales: Marketing and sales department are doing quite well and are strong
points for profit well massage can be expanded using internet.
Service: Macville enjoys good reputation for after sales services to customers.

SWOT ANALYSIS

Strengths
Good reputation after sale
services
Excellent advertising and
marketing mix.
State of art Management
information system.

Opportunities
Use of internet for
advertisement.
Withdraw of competitor
from new Sydney market.
Increase in population
growth rate.

Weakness
Poor performance of
contracted delivery
company.
Lack of experience
personnel to deal with
import and custom.

Threats
Raising interest rates could
decrease disposable income
Nufix.inc a global
corporation entering in
espresso machines and
bean market.
Bean ex coffee supplier is
entering in espresso
machine market.

Existing / potential competitor

1. Nufix inc.
It is shifting from instant coffee to espresso machine and coffee
Strengths
Marketing, Finance and Human resources
Weakness
Difficulty in adopting to need of niche market

2. Bean ex
Coffee bean trader is going to import expresso machine for their wholesaler
clients.
Strengths
Easy entry to market
Weakness
No established service department to provide after sale services to wholesale
clients.

Potential alliances
As required in tenders

1. Businessname: Home espresso trades

Description of business (includes vision of Macville )
To sell espresso machines to home customers in Sydney
Description of joint business:Shared space in four trade fairs.
Strengths
Home consumer market compliment commercial consumer market.

Weakness
Alliance also focuses on non-hospitality sector.
Risk
Partner not fulfilling financial commitments
Partner access to Macville trade secrets
Association with non-industry partner may impact negatively on
customer base

2. Business name: Ambrosia coffee roast

Description of business: Sell all grades of coffee beans.
Description of joint venture business: Share of outdoor advertising cost at caf
outlets.
Strengths
Sharing of client base
Weakness
Product image is commodity based.
Risk
Association with poor quality brand.
Long term signage of alliance.
3. Businessname: Java Estate
Description of business:To sell quality Arabica coffee beans in all states of
Australia.
Description of joint venture business: provides espresso machines to clients at
no charge.
Strengths
100% committed to hospitality and coffee bean market.
Weakness

Other coffee bean supplier may not recommend Mac villecoffee machines with
this strong alliance.
Risk
Concern over outstanding amount

PART C STRATEGIC PLANING (PROJECT PLAN BREIFING)

Organisation Objectives
1.To sell and service espresso machines in all states of Australia by accepting
java estate tenderand to look for warehouse opportunity in other high volume
estates
2.To increase profit margin by 10% from benchmark set in 2010.
3.To establish Macville brand recognition in key markets in next five years.
4.To reduce energy wastage by 10% from benchmark set in 2010.

Organisation objectives and strategies to achieve objectives

Objective1.To sell and service espresso machines in all states of Australia by
accepting java estate tender and to look for warehouse opportunity in other
high volume estates
Strategies (In priority order)
a. Sign action and establish strategic alliance with Java estate.
KPI Plan:To install 200 machines per annum.
b. Establish Macville warehouse.
KPI Plan:To open warehouse in Melbourne after Sydney opens for
business.

c. Set agents in other states and outsource maintenance contracts.

KPI plan:Set agents in other states and outsource maintenance
contracts in South Australia.
Parties responsible
Project manager

Objective 2.To increase profit margin by 10% from benchmark set in 2010.
Strategies (In priority order)
a. Instigate bulk buying negotiationsto reduce prices of suppliers.
KPI Plan 100% purchases by bulk load.
b. Operate all departments at optimum capacity and productivity.
KPI plan wages to turnover ratio of 12.5%
Parties responsible
Purchasing manager
Operation manager
Objective3.To establishMacvillebrand recognition in key markets in next five
years
Strategies (In priority order)
a. Establish social and internet network marketing.
KPI plan 1000 clicks on the website per day.
b.Join with java estatein cobranding cups and banners
KPI plan100% caf using our machines use our cups.
Objective4.To reduce energy wastage by 10% from benchmark set in 2010
Strategies (In priority order)
a. Set up innovation and reward program

 KPI plan 25 suggestions and 6 innovations introduced every year

to reduce wastage.
b. Develop and implement energy use awareness program.
KPI plan kW per person use to drop by 10 kw
Parties responsible
Research and development manager
Human resource manager

Part D Reviewing implementation (Report writing)

Objective of report
To prepare are a report describing the implementation of strategic planning as
measured by achievement of KPI S, milestone and overall effectiveness of
organisation.
Scope of report
To measure performance of organisation against KPI and Milestones and
provide recommendations and refinements for implementation process
KPI Progress
KPI Plan
To install 200 machines
per annum
To open Melbourne
warehouse
To assign agent and
outsource maintenance

KPI Actual
Only 198 machines are
installed
Melbourne warehouse is
still not open.
Still no service
contractors for Northern

contractor for
Northernterritory, South
Australia, ACT, Western
Australia, Tasmania.
100% order by container
load
Wages to turn over ratio
12.5%
1000 clicks per day on
website
100% caf using Macville
machine to use our cups
25 suggestions and 6 new
innovations to be
introduced.
To reduce energy waste
10kw per person

territory and agents

assigned for other states
like WesternAustralia are
very expensive.
All order was by 100%
container load.
13.8% wages to turn over
ratio achieved
12000 clicks per day. SEO
was very experienced.
Survey shows only 50%
uptakedesign and colour
not attractive.
30 innovations and 8 new
innovations introduced.
12 kw energy
consumption per person
dropped

Milestone Progress

1. Objective Macville machines are installed in all states except in northern

territory because taking time to hire agents and maintenance contractors.
2.Objective Profit margins have only increased to 2% in two years. Some
agents and contractors are very costly.
3.Objective50% of target market recognise brand and 855 had a positive
reaction.
4. Objectives reduction in energy wastage is 2% against 2010 set benchmark.

Overall progress
Organisation is performing well profit margins have already increased by 2% in
last two years as bulk buyings were instigated at earlier stage due to initial

increase in demand.Marketing objectives set are already achieved using, social

internet and networking marketing strategies. However strategies are not
implemented properly in Northern Territory organisation is facing difficulty in
hiring agents and maintenance contractors.Energy reduction strategy working
well however it was implemented too late which resultedreduction in energy
to only 12 kw per person.

Improvements
Increase pay rate in Northern territory to attract experienced agents and
machine maintenance contractor.
To increase profit margin warehouse should be open at Melbourne at earliest
because it is running at expensive agency model.