BSBMGT616A DEVELOP AND IMPLEMENT STRATEGIC PLAN

The Assessment Task is divided into 4 distinct sections

Task-1: Organizational Review
Task-2: Environmental Analysis
Task-3: Strategic Planning
Task-4: Reviewing Implementation

Assessment Task 1 :Organisational review

Objective of report:
Review organizations vision and mission by reviewing case study and describe organization
planning process by providing inputs wherever possible.
In order to successfully confirm the organizations Vision and Mission we must

Demonstrate the strategic planning process

Refine the vision and mission
Review organizational values
Gain stakeholder support

The Vision and Mission statement of my project is to what my organization would

like to achieve or accomplish in the long term future
Vision Statement - To provide customer best caf going experience
Mission statement To open additional caf in NSW and Queensland and to become
national branded be recognized as an integral part of hospitality industry
This is the agreed-upon statement by the organization and explains the reason for its
survival.
It is essentially broad to include the diversity within the organization. The statement is not
Precise but it does need to be periodically reviewed by the organization to see whether it
still encompasses all of the relevant activities of the organization
Current Approaches and practice

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

To reach targets and sustainable growth, we have established a vision with clear
goals.
Profit: Increasing and maximizing return to shareowners while being following all
responsibilities
People: people will love to work and are inspired
Portfolio: Bringing to the world a portfolio of beverages brands and satisfies
customers needs.
Partners: build network of partners and gain loyalty

Organizational 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 recognized at the time of previous
planning.
To be innovative and motivate self-directing teams.

To participate in community.

Develop strategic alliance and partnerships

Email to Stakeholders / consultant

Mission/Vision review
To
Respected
Stakeholders /Consultants
I hereby submit my mission and vision review and focusing on below objectives and notes
from the meeting
Profit: Increasing and maximizing return to shareowners while being following all
responsibilities
People: people will love to work and are inspired
Portfolio: Bringing to the world a portfolio of beverages brands and satisfies
customers needs.
Partners: build network of partners and gain loyalty
Development of new areas which were not recognized at the time of previous
planning.
To be innovative and motivate self-directing teams.
To participate in community.
Develop strategic alliance and partnerships

Thanks and Regards

ABC

Assessment Task 2 : Environmental Analysis

Environmental analysis is one of the 1st steps in strategic management

Environment has affected business in a variety of matters. Environmental factors
influence has captured the attention of companies and consumers across the world and
on how the products and services are delivered, and to work with the natural
environment.
Business that ignores environmental influence will slowly fail in time. Organizations must
continuously monitor, and adapt to survive the environmental threats as well as identify,
appraise and respond to various opportunities.
An organisations success is influenced by factors operating in its internal and external
environment, an organisation can increase its success by adopting strategies which
manipulate these factors to its advantage.

Business decisions are influenced by set of factors such as PEST

PEST ANALYSIS PEST analysis is used to identify the external forces affecting an
organization. This is a simple analysis of an organizations Political, Economical, Social, and
Technological Is the framework to understand environmental influences. Pest stands for
POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL factors. It consists of analysis of political,
economic, social and technological environment of organization.
1. POLITICAL: Political factors are influenced by
Anti- discriminatory laws and minimum wages
Market regulations
Voluntary codes and practices
Tax levis and tax breaks
Type of government example : communist , labor , democratic , dictatorship
Political factors affecting my organization and the steps we will be following

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
2. ECONOMIC: Political factors are influenced by

Economic situation and trends

Global economies and trends
Market distribution
Interest and exchange rates

International trades

Economic factors we will be focusing on are

Strengthen of Australian dollar against trading partners in coming years

3. SOCIAL: Social factors include

Demographics
Consumer attitudes and opinions
Brand , company , technology
Advertising and publicity
My organization will control the social influence factors such as

Lifestyle trend to eat out is becoming more affluent and frequent.

Steady population growth rate

4. TECHNOLOGICAL:

New espresso machines are developed which use 30% less energy.
Home market for espresso machines is experiencing high growth.

Other Analysis
Value chain analysis
Is used to identify sources of competitive advantage. It helps in opportunities to secure cost
advantages and to create product service differentiation. It also includes the value creating
activities of all industry participants.
Inbound logistic: Lack of experience personnel for custom and importation. Inbound
logistics is concerned with receiving, storing, distributing inputs ( e.g. handling of raw
materials , warehousing , inventory control)
.
Operations: State of art Management information system provides for internal control and
strategic planning. Comprises the transformation of the inputs into the final product form
(Example: Production, Assembly, and packaging)
Outbound logistic: Contracted Delivery Company is not able to deliver machines on time
due to fast expansion plans. Outbound logistics involves the collecting, storing and
distributing the product to buyers (Example: Processing of orders, delivery)
Sales: Marketing and sales department are doing quite well and are strong points for profit
well massage can be expanded using internet. It identifies the customer needs and
generation of sales (Example: Advertising, Promotion, and Distribution)
Service: Macville enjoys good reputation for after sales services to customers. It involves
how to maintain the value of the product after it is purchased (Example: Installation, repair,
maintenance and training)

VALUE CHAIN MODEL

SWOT Analysis
A SWOT is a tool utilized to know the strengths, weakness, opportunities and threats
entailed in a company or in a project. It entails identifying the aim of the project or business
and recognizing the external and internal aspects that are encouraging in realizing the goal.
SWOT is a short form for Strengths, Weakness, opportunities and Threats. There are a
number of methods of graphically characterizing the SWOT analysis matrix.
Objective of SWOT Analysis is to

Disclose your competitive advantages.

Explore your hopes for sales, productivity and product development.
Organize your company for setbacks
Permit for the development of emergency arrangements.

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 espresso machine for their wholesale
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. Business name: 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. Business name: 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 Macville coffee machines with this strong
alliance.
Risk
Concern over outstanding amount

Task-3: Strategic Planning

Strategic planning: It is the managerial process of developing and maintaining a strong fit
between the organizations objectives and resources and its changing market opportunities.

Organization Objectives
1. 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
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.

Organization 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 negotiations to reduce prices of suppliers.
KPI Plan100% 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 establish Macville brand 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 estate in co branding cups and banners
KPI plan: 100% 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

Task-4: Reviewing Implementation

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 organization.
Scope of report
To measure performance of organization 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
contractor for Northern territory,
South Australia, ACT, Western
Australia, Tasmania.
100% order by container load
Wages to turn over ratio12.5%
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 waste10kw per
person

KPI Actual
Only 198 machines are installed
Melbourne warehouse is still not open.
Still no service contractors for
Northern
Territory and agents assigned for
other states like Western Australia 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% uptake design
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 recognize brand and 855 had a positivereaction.4. Objectives reduction in
energy wastage is 2% against 2010 set benchmark
Overall progress
Organization 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
organization is facing difficulty in hiring agents and maintenance contractors. Energy
reduction strategy working well however it was implemented too late which resulted
reduction 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.