Analyses Of The Organisational Environment To Develop An Understanding Of Potential Competitors And Allies

Mission

The main mission as to why MacVille is doing business is to offer espresso coffee machines that meet the needs of our clients so that we obtain profits that allow our stakeholders may prosper. The machines need to be efficient and reliable.

Our main mission is that in five years’ time, MacVille should be a nationally recognized brand that is performing well in the hospitality industry².It should be an important component that will lead to building small and large  in the country.

At MacVille, we try to ensure that needs of clients are satisfied efficiently. The needs include the following:

• Ensuring high standard goods and services are provided
• Ensure that the staff’s employment safety and health is assured by complying with the Work health and safety requirements are met³.
• An encouraging team working that leads to efficiency and increased production
• Ensure environment-friendly-operations 

The current practices aimed at achieving the goals and objectives of the company.

The practices have been creative and innovative over the last few years since it is a teamwork effort. The employees in the company have to be committed and motivated to make sure they push forward the practices of the company. This ensures that there is the development of new ideas as well improving the product standards and quality.

The company’s strategic plans should include the following:

• Innovativeness and creativeness should be addressed in the strategic plan that ensures the employees work together in achieving the company goals and objectives.
• Corporate social responsibility should also be incorporated into the strategic plans. This helps ensure the processes/ operations or the products have a socially positive effect on the consumers. In the company’s missions and vision, social responsibility should be addressed. The company should ensure there is a positive impact of its products on the stakeholders.

To:  Chief Executive Officer, Board, and the Staff

Subject: Reviewing of MacVille’s mission and vision

Date:

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Dear stakeholders

This email addresses the MacVille Strategic plans and the following areas have been addressed.

Mission

To offer espresso coffee machines that meet the needs of our clients so that we obtain profits that allow our stakeholders may prosper. The machines need to be efficient and reliable.

Vision

In five years’ time, MacVille should be a nationally recognized brand that is doing well in the hospitality industry. It should be an important component that will lead to building small and large hospital establishments in the country.

The current approach

At MacVille, we try to ensure that needs of clients are satisfied efficiently. The needs include the following:

• Ensuring high standard goods and services are provided
• Ensure that the staff’s employment safety and health are assured by complying with the Work health and safety requirements are met.
• The encouraging team working that leads to efficiency and increased production
• Ensure environment-friendly operations

The current practices aimed at achieving the goals and objectives of the company.

The practices have been creative and innovative over the last few years since it is a teamwork effort. The employees in the company have to be committed and motivated to make sure they push forward the practices of the company. This ensures that there is the development of new ideas as well improving the product standards and quality.

We value our customers and thus aim at delivering the best. We have committed ourselves to ensure that there is honesty, efficient, innovative, flexible and socially responsible practices. We also want to ensure that all our operations are excellent and professional.

Vision

Vision

In five years’ time, MacVille should be a nationally recognized brand that is doing well in the hospitality industry. It should be an important component that will lead to building small and large hospital establishments in the country. ² We plan to be a socially responsible company that cares and serves consumers in a responsible way. We plan to provide machines that have less environmental effects. Our plan is to also work hand in hand with other companies in ensuring customer needs are met.  

We are committed to ensuring fair and professional business practices that will help maintain excellent services. We also want to have a positive impact on the community and the environment as well.

Concerns,

Nisreen haji-ar-were 

Summary of the meeting

• We agreed to add information on the vision of the company.
• We agreed to address the email to the Chief executive officer, Boards, and the staff. The date was also supposed to be included in the email.

Political

• The introduction of free trade policies has reduced prices of imported products since no tariffs are imposed. Importation of espresso coffee machines becomes easy.
• There is a possibility that Carbon tax is going to be introduced on products especially in the commercial enterprises.

Economic

• It is anticipated that the value of the Australian Dollar is likely to increase in the next few years.
• Adequate resources in the country may lead to economic growth since materials can easily be found.
• There is a growing domestic market for the espresso machines.

Social

• The demographic composition is changing in the country leading to an increase in the demand for the machines. For instance, it is predicted that population in 2050 will be thirty-six million people.
• The population in most cities of the country is growing more wealth and thus there is a change in their lifestyles. More people have changed their eating habits.

Technology

• There is the development of new, improved and advanced espresso machines. The coffee machines being developed will consume less energy, 30 percent less.

Political changes in the operations of MacVille.

If their operations are efficient in energy consumption then they will pay fewer taxes. Just as in other companies, MacVille is under stress right now since the cost of production is high. To avoid this situation then it has to look for more effective ways to produce their products. 

There is a sudden change in the trade policies, the government is planning to remove tariffs on imported goods. The new changes will lead to high competition in the market since even espresso machines will be imported.

Strengths · The company has excellent services, that is, installation, handling complaints, after sales, and training. · There is a sound operating system that enables adequate planning of strategies · Proper planning in the finance and accounting departments. · There are good marketing strategies and techniques.

Weaknesses · Inexperienced employees in customer relations services and importation · Poor strategic plans from the Human resource department leading to inefficient business operations especially delivery of goods. · Delays in delivering products. · Delivering low standard products.

Opportunities · Falling out of the market by competitors creating a larger market for the goods. · Form alliances with suppliers of coffee seeds which will easily create market penetration.

Threats · Value of the Australian dollar, leading to low tourism activities that provide a significant market. 3 · Increased rates of interest in the near future will negatively impact on the incomes of coffee drinkers. ·  Nufix inc. which is a global company is now in the market and poses a stiff competition since it has enough resources. · There are some suppliers that have started importing coffee machines.

Competitors in the Australian Espresso machine market

• Nufix Inc

This is a globally recognized brand that has shifted from production of instant coffee to selling of coffee machines and coffee beans. This company has a strong marketing and finance departments as well as resources required thus poses stiff competition. With the above factors, the company does not yet have the capability to penetrate into the market since MacVille already has efficient suppliers and loyalty from buyers. The company does not yet understand the market gaps.

• Wes BeanEx

This company has just started importing coffee machines for buyers. They are advantaged since they have a strong customer loyalty and hence they will access customers easily to sell their machines. ² The only problem they have is that they are still new in the market with no established base to help maintain their espresso machines.

In its strategic plan, MacVille plans to form alliances with other companies to help improve their services.

The following are some of the potential partners MacVille can form alliances with:

Description: This Company sells coffee beans of all grades to hospitals and supermarkets. Description of joint venture: The Company will be an aid in sharing the costs of the advertising in the restaurants and cafes. The strength of the company is that it is committed to the coffee industry and thus have contact with some clients. The weakness of this company is that it does not adequately share information of its operations adequately. Their quality is not that good enough.

Current practices

Risks: This Company does not also associate its brand very well and takes longer to sign its agreements.

Trend: This company started off very well at 3.2 million Dollars, dropped and again picked up its pace to 3.3 million dollars in the year 2011.

This company submitted a tender that was not good enough since its statement did not go in line with the values MacVille prefers.

I personally believe that the values and objectives of this company do not line with the values and objectives of MacVille.

Ambrosia did not provide the following vital information in its tender:

• Financial statement.
• The contacts of Board of directors.

Description: This Company sells quality Arabica coffee in the entire parts of Australia.  

Description of their venture: They provide MacVille coffee machines to customers free of charge. They pay the prices of delivery and installing the machines then pay the price of the machines by 12-month installments. Strengths: This is a good partner with a huge market in Australia and it is focused on the hospital and supply markets. ² The only weakness with this company is that most of the machines are not recommended by other suppliers. This company still has an outstanding balance that it has to complete. Some of the benefits in their costs indicated that only 200 machines were installed during the 1^st year. The cost of interest was 400,000 dollars per year and the profit was 100,000 just after 80 machines were sold.

Java was able to submit all the documents that were required. Java states that the main aim is to provide high standard services to their clients which is exactly part of the vision of the MacVille. MacVille needs to provide efficient and reliable services.

Brief description: They sell espresso machines for clients at home. Their main market is in Sydney where many homeowners are need of the products. This company also deals with other entertainment equipment. Venture: They just need a small space where they can hold four trade exhibitions and shows each year. Strength: They have a variety of products and thus have an adequate market for the espresso machines. Weakness: This company is not focused on the hospitality industry and hence not effective. There are several risks with this organization since they are not able to fulfill their commitments and associating with it may create a negative influence on its customer. They may also access secrets of MacVille trading activities. Each show costs 2,500 dollars so four shows will cost 10,000 dollars. Selling a machine in each show will be 500 dollars. This would make a profit of 10,000 dollars per week and a break-even analysis after 2 shows.

Goals and objectives

This company was able to submit all the required documents.  This was still not a good partner since their missions are not in line with the goals and objectives of MacVille. Their major focus is on sharing spaces in the shows they host quite different from them.

The most appropriate company to make alliances with would be Java Estate since they are good partners in Australia and their objectives are similar to that of MacVille. MacVille will become a nationally recognized brand since this company is very innovative and creative. From the trend analysis, it can be clearly seen that Java Estate is improving and making huge sums of money each year. Their goals to provide excellent services is what we also need. 

The first objective

To sell espresso machines and service them in every part of Australia. This was the main issue to be addressed and would require that MacVille should accept the services of Java Estate. Such an alliance was very vital and required top-level management. It was necessary that we acquire more warehouses in the different regions of Australia to add up on the Warehouse in Sydney. In these other regions, the warehouses could be managed by a network of agents and acquire other external maintenance service providers.

MacVille must ensure that they efficiently cooperate with its partner. Both partners should agree on the way forward. ³They should agree on their objectives and goals, such as providing high-quality services to their customers.

It will also be a good strategy to build warehouses in every industrial part of Australia. They should then build a good network system that will coordinate all the various networks in the different areas. This will make them feel positive to work with MacVille. 

Mission	Priority List	Duration	Person responsible	Performance indicator
Meet with Java Estate company to talk over some issues and confirm their contract	1	one month	Operations General Manager	The signing of the contract
Make researches on the various opportunities of warehouses that may exist in the different areas	2	two months	Warehouse and store Manager	Create a list of all the warehouses in those areas
Make researches on how maintenance of external sources will be done	3	two months	Operations General Manager	Create a list of the companies that will be appropriate for maintenance in those areas.

Objective 2

In the next five years, the profit margins should be increased by 5 percent. This is going to happen naturally since there will be increased sales that will enable negotiating with suppliers and improve departmental operations.

The best strategy will be to focus on the objectives and goals of the organization. This entails improving quality of services offered. ²Additionally, there should be a quick delivery of the machines.

Strategies that will help improve services with the inadequate number of employees.

• Evaluating and reviewing performance on regular basis.
• Analyzing the skills of employees and identifying possible gaps.
• Providing adequate training. 

Mission	Priority List	Timeframe	Person responsible	Performance indicator
Committing the management and employees to MacVille’s set goals and objectives	1	Ongoing	All Staffs	There was an increase in the sales.
Evaluating and reviewing performance	2	Still in progress	HR Manager	The managers meet with the employees regularly for performance evaluations The employees were given adequate support.
Analysing skills of employees	3	Ongoing	HR	The employees were able to complete assessments of their skills
Training of the employees	4	Ongoing	HR	Training is done

Objective 3

Establish the brand of MacVille in the next few years, especially by the use of the new technologies and also by our partner through co-branding. This is also vital in ensuring there is the success.  

Strategic plans

The company needs to develop advanced strategies for promotion so that the product’s image is be improved. There is need to update and if possible redesign the websites of the company. This should incorporate all the goals of the company.  Updating of the website helps create a good presence in the media as well as help sponsor events. 

Task	Priority List	Duration	Person responsible	Performance indicator
Website updating	1	Two months	IT specialist	This should be done in line with the company goals
Creating social media networks	2	Two months	IT specialist	Facebook pages and Twitter handles created.
Public event sponsoring	3	In progress	Marketing manager	Create a list of events that can be sponsored.

Objective 4

In the next few years, our waste and energy consumption should be reduced by 10 percent. Organizing programs that help educate on the importance of energy. If possible, the company should create rewards for innovations in this area that will help achieve objectives.

A good strategy will be creating awareness to the staff on the importance of energy conservation. Another effective approach will be to offer a reward to those innovative employees that create new ways of energy conservation. 

Task	Priority List	Timeframe	Person responsible	Performance indicator
Develop a policy to conserve energy and resources	1	Two weeks	Human Resource Manager	The policy is developed and later on implemented
Develop a policy that will reward those innovative employees	2	Four weeks	Human Resource Manager	The policy is developed and later on implemented

Minutes 

To: Chief Executive officer, Board, staff

Subject: strategic planning

Date:

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Dear stakeholders,

I was able to review the organizational goals and objectives that were represented at the last meeting.

This is big ideas that need developing and implementing strategic plans that will make sure achieve these goals. My plans include the tasks, durations and the performance indicators.

In this report, I have attached our strategic plans so that you may evaluate and review it. I hope that you provide feedback or comments that will help improve these plans.

Some of the major objectives include the following:

1. To ensure that we sell and service the espresso machines in all Australian states.
2. Establishing the brand of MacVille within five years.
3. Ensure there is a 5 percent increase in the profit margins within five years.
4. Ensure there is a 10m percent decrease in energy consumption within five years.

First objective

To sell espresso machines and service them in every part of Australia. This was the main issue to be addressed and would require that MacVille should accept the services of Java Estate. ⁴Such an alliance was very vital and required top-level management. It was necessary that we acquire more warehouses in the different regions of Australia to add up on the Warehouse in Sydney. In these other regions, the warehouses could be managed by a network of agents and acquire other external maintenance service providers. 

Strategy	KPI	Review
a) Signing and establishing the alliance with Java Estate.	They installed over 200 espresso machines per year.	The contract was eventually signed by Java estate. It was, later on, found that only a hundred and eighty machines had been installed in the one year of operation. This was because of the increased value of the Australian currency that affected the tourism industry which led to low sales in the North Queensland and Northern Territory.
b)Establishing a warehouse in Melbourne	The warehouse in Melbourne will be opened after two years of operations in Sydney	The warehouse in Melbourne has not yet been opened. This is currently run on the expensive model.
c) Setting agents in the various parts of Australia then look for ways that help in outsourcing contracts for maintenance.	Make agent agreements then outsource contracts for maintenance from Western Australia, Tasmania, Northern Territory and the other parts. 3	All the contracts of agents are approved except those of Northern Territory

Objective 2

To ensure the profit margins are increased by 5 percent within five years. This is going to happen naturally since there will be increased sales that will enable negotiating with suppliers and improve departmental operations.

d) Initiate negotiations to buy in bulk so as to reduce the prices of supply.	There is 100 percent container load purchasing	All orders fill the container since there is 100 percent increase of sales volume
e) Ensure optimum operational productivity and capacity	There is a 12.5 percent ratio of wages to turnover	There still underperformance in some states and thus strategy still needs to be done.

Objective 3

Establish the brand of MacVille in the next few years, especially by the use of the new technologies and also by our partner through co-branding. This is also vital in ensuring there is the success.  

F) Establish an online marketing plan	There are over 10,000 clicks each day on the website	There are over 12,000 clicks per day and this is done in half the time allocated.
G) Joining with Java Estate in the branding of cups and café banners.	All cafes with our machines have to use our cups	Only half of the cafes use our cups. This is because of the unattractive colors and designs.

In the next few years, our waste and energy consumption should be reduced by 10 percent. Organizing programs that help educate on the importance of energy. If possible, the company should create rewards for innovations in this area that will help achieve objectives. ²

H) Setting up programs that reward those employees with innovative approaches to waste reduction.	There should be 25 recommendations each year and 6 advances or innovations should be introduced each year.	30 recommendations are raised and 8 improved innovations created.
I) Developing and implementing campaigns that create energy conservation awareness.	There should be a drop of power to 10kW for each person.	The power was 12kW per person.

Strategy	Key Performance Indicator	Progress Done or not done KPI attained Yes or No	Comments  and recommendations
Strategy A Finalising the contract and make sure 200 coffee machines are supplied each year.	The contract was approved and signed	Done KPI attained: Yes
Strategy B Open a new warehouse in Melbourne	A warehouse should be opened in Melbourne and commence operations	Not done KPI attained: No	They are running on a very expensive Agency.
Strategy C Setting agents in the various parts of Australia then look for ways that help in outsourcing contracts for maintenance.	Approving of agent agreements and outsourcing contracts.	Partly done KPI attained: Partly attained	All agreements approved and signed Except those of the North Territory
Strategy D Initiate negotiations to buy in bulk so as to reduce the prices of supply.	100% of purchase by the container load	Done on time KPI achieved: Yes	KPI was attained in such a short span
Strategy E Operate all departments to Establish an online marketing plan	Wages to turnover ratio of 12.5%	Not done KPI achieved: No	There is still underperformance in some departments

Strategy	Performance Indicator	Progress: Done /Not done KPI attained Yes/No	Comments
Strategy F Establishing social, Internet and networking marketing	10,000 clicks each  day on the media	Done on time KPI achieved: Yes	KPI achieved in quicker time
Strategy G Joining with Java Estate in the branding of cups and café banners.	All cafes using our machines have our cups	Not done KPI achieved: No	Only half of the cafes using our machines use our designer cups.
Strategy H Setting up programs that reward those employees with innovative approaches to waste reduction.	25 recommendations from employees each  year, 6 new creations introduced each year to help in waste reduction	Done on time KPI achieved: Yes	Significant reduction waste in the company
Strategy I Developing and implementing campaigns that create energy conservation awareness.	kW should drop to 10kW	Not done KPI attained: No	Introduce the campaign in the Entire organization

Strategy	Timeframe	Progress / complete within the timeframe	Comments
Strategy A · Finalise contract/agreement with Java Estate and · Have at least 200 machines installed p.a.	1 Month 1 Year	Yes   No	Contracted signed within the time limit and actioned In the past 12 months, only 180 machines were installed. The reason being a slower uptake in Northern Territory and North Queensland due to strong Australian dollar that affects the tourism industry.
Strategy B · Open a Melbourne warehouse	2 Year	No	At the moment a warehouse in Melbourne still not open and currently run on the more expensive agency model.
Strategy C · Research on outsourcing the maintenance	6 Months	Partly completed	Agreements are signed for all states except for NT
Strategy D · Instigate bulk buying negotiations to reduce supply price	1 Year	Yes	KPI achieved in quicker time due to the initial increase in demand
Strategy E · Operate all departments at optimum capacity and productivity	1 Year	No	Some departments still underperforming, however, the strategy still in line with the timetable
Strategy F · Establishing social, Internet and networking marketing	6 Months	Yes	KPI achieved in half the time allocated
Strategy G · Join with Java Estate in co-branding cups and café banners.	6 Months	No	Only 50% of the cafes with our machines using our cups due to the unattractive design of cups
Strategy H · Set up reward programs for reducing waste	1 Year	Yes	Significant reduction waste in the company
Strategy I · Develop and implement energy use awareness campaign ·	kW per use per person drops by 10 kW	No	Introduced the campaign later on in the year and it didn’t roll out across the whole company

Even though we did not achieve some KPIs the plan was effective.

Objective 1

We signed an agreement with Java Estate, which was a good alliance strategy.

We signed agent agreements in every part except North territory

We need to address the expensive costs of the agents in Tasmania and Western Australia.

Though we were not able to reach our target of 200 machines per year, we still made a good progress.

We are planning to open a warehouse in Melbourne. ⁵ 

Objective 2

Our sells were quite good since we were able to achieve 100 percent volumes have increased and orders fill the containers on time. Strategy E, indicates that not all departments are doing well but the deadline is not yet.

Objective 3

The contractor is experienced and tries to achieve recognition of our brands. In a day we are able to achieve 12,000 clicks a day. Strategy E, on the other hand, was not attained.

Objective 4

Employees assist in waste reduction and are more innovative. The strategy was not attained since the power dropped to 12kW and not 10kW.

Objective 1

Increase sales by implementing advanced market strategies by employing experts in marketing.

Build more networks in Melbourne and continue searching for warehouses.

Search for outsource maintenance in Northern Territory. ⁵

Objective 2

There is need to perform employee reviews. Every department must do that. Also, develop work-life balance program and provide support to the employees.

Objective 3

Redesign the cups and make proper colors on the cups to help improve their sales.

Objective 4

Create campaigns and increase awareness to the people.

Communication topics	Audience	Resources	Date	Specified time	Frequence
Contractual agreement between Java estate and MacVille.	Board	Big screen TV Contract copies Stationery   Meeting room Powerpoint	1st Nov	0900hrs	One-off
Progress on implement marketing strategies in other states (rather than Northern Territory and North Queensland) to increase sales.	Board General Manager Marketing and Sales Manager	Big screen TV Marketing plan report Whiteboard Stationery Meeting space PowerPoint	5th Nov	1300hrs	Fortnightly
Warehouse opening in Melbourne	Board Director General Manager Warehouse Manager	Big screen TV Report on the warehouse in other states and Melbourne Whiteboard Stationery Meeting room PowerPoint	10th Nov	1000hrs	Weekly
Setting agents in Northern Territory	Board Director General Manager	TV Report on agents in Northern Territory Whiteboard Stationery Meeting room PowerPoint	13th Nov	1130hrs	Fortnightly
Bulk buying	Board Director General Manager	PowerPoint Big screen TV Sales report   Whiteboard Stationery Meeting room	20th Nov	0900hrs	Fortnightly
Review on employee performance	Board Operations General Manager HR Manager Department Managers	PowerPoint Big screen TV Staff performance report Whiteboard Stationery Meeting room	4/12/16	1500hrs	Weekly
developing and maintaining brand recognition	Board Operations General Manager Marketing Manager	PowerPoint Big screen TV Sales report Whiteboard Stationery Meeting room	10th Nov	3.00 p.m.	Weekly
Cup redesigning	Board Operations General Manager Marketing Manager	PowerPoint Big screen TV New design cups Whiteboard Stationery Meeting room	17th Nov	0930hrs	Weekly
Innovative	Board Operation General Manager Marketing Manager Department Managers	Big screen TV Reduce Waste and Energy Proposal Whiteboard Stationery Meeting room PowerPoint. 4	20th Nov	1600hrs	Fortnightly

References

Khalifa, Azaddin Salem. “Mission, purpose, and ambition: redefining the mission statement.” Journal of Strategy and Management (2012): 237-245. Document.

Kiganka, Dennis N. Mugambi. Strategic Plan Implementation Challenges at the United Nations High Commissioner for Refugees: A Case Study of the Regional Support Hub. Project. Nairobi: University of Nairobi, 2016. Document.

Ribickis, ArtursZeps & Leonids. “Strategy Development and Implementation – Process and Factors Influencing the Result: Case Study of Latvian Organizations.” Procedia – Social and Behavioral Sciences (2015): 934-940. Document.