Strategic Plan Review For MacVille: Vision, Mission, And Objectives

Organisational Values

The aim of this strategic plan is to review the organizations vision by reviewing of case study of MacVille and scope is to analyse vision and mission of the organization, current approaches to obtain of strategic objectives of the organization.Our Mission

“MacVille is in business to provide espresso coffee machines that meet the efficiency, reliability and sustainability needs of our hospitality clients who, in turn, reward us with profits that will allow our stakeholders and the communities in which we operate to prosper.”

Core Organisational Competencies

• Engagement of the customers as well as customer research
• Development and improvement of the products as well as services

Organisational Values

Following are the organizational values such as:

• To identify the community requirements
• To participate into the local community
• To donate certain percentage of profit into the community

Highest Priority Goals

• Goal One.

Finding new ways to improve the efficiency of processes and effectiveness of customer solutions has become a priority.

• Goal Two

The organisation needs to embrace strategic alliances and to seek out new partnerships that support and promote our mission, desired outcomes, and strategies.

• Goal Three

MacVille needs to identify more closely with the community it serves.

• Goal Four

There has always been a need to evaluate what we were doing, to continually challenge our methods and ask how we can simplify and improve our business.

• Goal Five

We should never rest on our laurels, but instead constantly innovate and raise our standards, because we are not afraid to try new ideas and concepts.

• Goal six

We need to be a good corporate citizen that recognises our responsibility to be active participants in our local communities, and even donate a percentage of profits every year to a wide variety of community and non-profit organisations.

Performance Objectives

Performance Area	Performance Measures	Target	Time Frame
Financial Performance	To increase of profit margin by 10% from the benchmarking set in the year 2010	Wages to turnover ratio of about 12.5%	5 months
Customer and Market Performance	To install of 250 machines in each year	100% purchase by bulk amount of load	6 months
Internal Efficiency and Effectiveness	To reduce of wastage of energy by 10% from the benchmark set in the year 2010	Set of agents in states and outsourcing of maintenance contracts	1 year
Long Term Development and Innovation	To establish of warehouse after Sydney comes into the business operations	Setting of innovation and reward programs	1 year

 SECTION TWO

Overview of the business

MacVille Pty Ltd is one of coffeehouse chians within Australia. The company is served of priced, higher quality coffee as well as gourmet food into safe as well as comfortable café style restaurant. The location of its store is in Brisbane, Queensland and CBD of Sydney. MacVille has been keen to pursue strategic alliances as part of its strategy to achieve its objectives. It called for tenders from interested parties, who were asked to complete a tender application form that provided information relating to the tender requirements. Some notes have been included by senior managers who assessed some of the information.

SECTION THREE

PEST analysis

External factors	Justification
Political factor	Ø There are planned changes into the trade where all tariffs on the imported goods will remove in line with the free trade policy of the government. Ø The strong possibility of a carbon tax being introduced on all energy intensive products used in a commercial enterprise.
Economic factor	Ø Strengthening of the Australian dollar against major trading partners in the coming years is also a concern.
Social factor	Ø Lifestyle trend to eat is becoming affluent and also frequent. Ø There is growth in population from 22 million in 2010 to 36 million in 2050.
Technological factor	Ø New commercial espresso machines are being developed that use 30% less energy to run, with an innovative and more efficient heat exchanger. Ø The development of the home consumer market for consumer espresso machines is experiencing high growth.

Strengths	Weaknesses
· There is good reputation of MacVille after sales services · Better advertising and marketing strategies of the company · Use of management information system	· Poor performance of the contracted delivery organization · Lack of experiences personnel for dealing with import
Opportunities	Threats
· Use of online techniques for the advertising of products and services · Withdrawn of the competitors from the Sydney market · Strategic alliances with coffee bean suppliers, where market penetration could easily be achieved and costs of advertising and service could be shared	· Raising of the interest rates decrease disposable incomes · Competitors are entering into the same market in espresso machines and also bean market

Existing/potential competitor

Nufix Inc is a competitor of Macville due to its marketing and financial resources. The company has difficulty to adopt for requirement of niche market.

Bean Ex is such a coffee bean trader which is going to import of the espresso machine for the wholesale markets. The company can easily enter into the market and there are no establishment of the service department for providing of after sales services to the wholesale clients.

Potential alliances

1. Home Espresso trades

The company is selling of consumer home espresso machines to the home market, only in Sydney, and incorporating other digital home entertainment products. There is joint venture of the business due to shared space into four trade shows per year. The company covers the consumer market for espresso machines (that compliments the commercial espresso machines) to make a full range offer to clients.

1. Ambrosia coffee roast

The business is selling of grades of the coffee bean to the supermarkets and also hospitality outlets around Australia. There is share into the cost of the outdoor advertising for cafes and restaurants, with shared branding of umbrellas and barriers.

1. Java Estate

Highest Priority Goals

The business is selling of the quality Arabica roasted coffee beans to all states of Australia. Java Estate provides MacVille espresso machines to client for no-charge. Java Estate pays MacVille cost price for the delivery and installation of the machine, then pays the remainder of the purchase price on a 12 month repayment program. 

SECTION FOUR

Current Situation

MacVille’s current approaches in achieving its mission and vision toward its stakeholders are through upholding good and responsible stewardship as well as complying in its professional and moral standards of conducts. Internally, MacVille’s approaches are to encourage self-directed teams in which leadership and maintenance of high levels of safety are of upmost priority. Externally, the company consigns wise environmental practices, putting forward good organisational values to its hospitality customers.

Key Product and Market Issues

1. Lack of internal controls, particularly over cash handling, monitoring and recording.
2. Failure to meet compliance standards in WHS, Privacy and industrial relations law.
3. Lack of written policy and procedures to guide staff in carrying out their duties.
4. Lack of a professional business culture in the family run business.
5. Failure of the business to monitor the external environment and find opportunities and threats to the business.

Key Strategies

Following are the key strategies such as:

• Proceed strategic alliance with Java Estates
• Establishment of MacVille warehouse at higher level volume states

Performance Measures and Targets

Performance Measures	Target
To increase of profit margin by 10% from the benchmarking set in the year 2010	Wages to turnover ratio of about 12.5%
To install of 250 machines in each year	100% purchase by bulk amount of load
To reduce of wastage of energy by 10% from the benchmark set in the year 2010	Set of agents in states and outsourcing of maintenance contracts
To establish of warehouse after Sydney comes into the business operations	Setting of innovation and reward programs

SECTION FIVE

Marketing strategies	Expected budget	Performance target	Timeframe
Set up innovation and reward program	$200	KPI plan 25 suggestions and 6 innovations introduced each year to reduce waste	5 months
Develop and implement of energy use awareness program	$260	Plan kW per person use to drop by 10kW	7 months

SECTION SIX

• Current and planned R&D activities

MacVille is an import/export company that sells and maintains espresso coffee machines in Brisbane. As a part of the business expansion the board has decided to start a new business venture to establish a new business centre in Sydney. The new business is aligned with the overall objective, vision and mission statement of the organisation and is committed to high ethical professional and moral standards in the new ventures operations and activities.

Processes employed for the development and commercialisation of new products and technologies

Macville’s new business venture written plan is introduced stating the company vision mission statement, 3-5 years of objective, company structure, roles and responsibilities of the senior management team and of individual employee. The new KPI’s for each role and performance indicators has been designed. The plan also reveals the commitment of senior management in maintaining the positive work environment through new leadership style, innovations, team building within the organisation.

SECTION SEVEN

MacVille aims to deliver our valued customers the very best cafe-going experience. In three years, the business will have established a presence across the Queensland and NSW, with the opening of additional cafes. Inbound logistics is a problem, due to the lack of experienced personnel in importation and customs operations. The lack of solutions from Human Resources Management has meant that delivery timelines are sometimes delayed because the proper procedure was not followed. The operations of MacVille is an area of strong value-add, with the state of the art Management Information System (MIS) forming part of MacVille’s infrastructure. The MIS has allowed for sound corporate/strategic planning, along with strong internal controls in accounting and finance. Outbound logistics is an area that could be improved. Currently, MacVille relies on a three year contract with a delivery firm to deliver its goods to customers. Sometimes there is a delay in getting the appropriate vehicle to deliver the espresso coffee machines, which is causing some issues with customers. The contract delivery firm seems to be struggling to deliver the promised quality with their fast expansion.

SECTION EIGHT

Current Situation

Inbound logistic: There is lack of experience of the personnel for the custom as well as import of the products and services. It is concerned about receiving, storing and distribution of the inputs.

Performance Objectives

Operations: There is use of state of art management information system for the purpose of internal control of the business functions. It is comprised of transformation of inputs into the final product forms.

Outbound logistic: The contracted delivery company is not able to deliver of machines on time because of faster expansion plans. It is involved with collection, storage and also distribution of the products to the buyers.

Sales: Marketing as well as sales department are gaining of stronger points for the profit by use of the internet. It is identified of the requirements of customer and there is also generation of the sales.

Service: MacVille is enjoying a good reputation after sales services to the customers. It is involved with maintenance of value of the products after it is being purchased.

Key Supply Chain Issues

The concerns of the group were centred on a global corporation Nufix Inc. shifting from instant coffee into the espresso bean and machine market. The resources they would have at their disposal in marketing, finance and human resources could be a serious threat to MacVille’s plans. However, they would still struggle to gain a foothold in a market that already has strong supplier/buyer allegiances, with most stretching over many years. Global players like Nufix Inc. have difficulty being adaptable to the needs of niche market buyers.

Key Strategies

To sell and service MacVille espresso coffee machines in every state of Australia. This was a top priority that would involve the acceptance of Java Estates tender. This was an important alliance and one that should be managed at the highest level. With the Sydney warehouse now established, it was important to look for other warehouse opportunities in high volume states. The other states could be managed with an agent’s network and by outsourcing the maintenance.

Performance Measures and Targets

Agreement signed within the time limit and actioned, but only 180 machines installed in the past 12 months. There was a slower uptake in Northern Territory and North Queensland, due to the tourist slump with the strong Australian dollar.

SECTION NINE

MacVille needs to identify more closely with the community it serves. We need to be a good corporate citizen that recognises our responsibility to be active participants in our local communities, and even donate a % of profits every year to a wide variety of community and non-profit organisations. The operations of MacVille is an area of strong value-add, with the state of the art Management Information System (MIS) forming part of MacVille’s

SECTION 10

MacVille has been keen to pursue strategic alliances as part of its strategy to achieve its objectives. It called for tenders from interested parties, who were asked to complete a tender application form that provided information relating to the tender requirements. Some notes have been included by senior managers who assessed some of the information.

Potential alliances

Home Espresso trades

The company is selling of consumer home espresso machines to the home market, only in Sydney, and incorporating other digital home entertainment products. There is joint venture of the business due to shared space into four trade shows per year. The company covers the consumer market for espresso machines (that compliments the commercial espresso machines) to make a full range offer to clients.

Financial Performance

Ambrosia coffee roast

The business is selling of grades of the coffee bean to the supermarkets and also hospitality outlets around Australia. There is share into the cost of the outdoor advertising for cafes and restaurants, with shared branding of umbrellas and barriers.

Java Estate

The business is selling of the quality Arabica roasted coffee beans to all states of Australia. Java Estate provides MacVille espresso machines to client for no-charge. Java Estate pays MacVille cost price for the delivery and installation of the machine, then pays the remainder of the purchase price on a 12 month repayment program.

SECTION 11

The operation of MacVille is an area of a strong value-add, with the state of the art Management Information System, forming part of MacVille’s infrastructure. The company has excellent marketing and sales strategies. MacVille’s customer service is also a strong point for them. The company has a formidable reputation in the hospitality field. However, outbound logistics is an area that needs to be improved. The company relies on a three-year contract with a delivery firm to deliver its goods to customers. This is a major setback for MacVille’s. MacVille’s is very much concerned about its competitors which post serious threat to MacVille’s in achieving its objectives. However, a strategic alliance and partnership can help MacVille to achieve these objectives.

Objective 1 – To sell and service MacVille espresso coffee machines in every state of Australia. This was a top priority that would involve the acceptance of Java Estates tender. This was an important alliance and one that should be managed at the highest level. With the Sydney warehouse now established, it was important to look for other warehouse opportunities in high volume states. The other states could be managed with an agent’s network and by outsourcing the maintenance.

Objective 2 – To increase profit margins by 5% from our 2010 benchmark in the next five years. This should occur naturally, with increased sales allowing for better price negotiations with suppliers, and getting all departments to make optimum use of their staff.

Objective 3 – To establish the MacVille brand recognition in key markets in the next five years, mostly via new technologies but also co-branding with our strategic partner. This is also a high priority if the successful rollout is to be achieved.

Objective 4 – To reduce our waste and energy use by 10% from our 2010 benchmark within the next five years. Education programs and incentive rewards for innovations in this area should see the organisation achieve its objectives.

SECTION 12

Current Situation

Values are the basis upon which an organisation operates and are embedded within its culture and the people who work there. They underpin how its work is carried out and provide a common sense of purpose and identity, long-term direction and convey what the organisation is all about. Since MacVille’s CEO claims that the company has a real need to incorporate innovation due to the fact that the company has been to self-directed internally, MacVille’s organisation values should include teamwork, solidarity, professionalism, as well as moral values such as honesty, integrity, accountability, fairness, stewardship and ethics

Customer and Market Performance

Key Environmental and Social Issues

The lifestyle trend towards eating out more frequently as the population ages and becomes more affluent.

The prediction of a steady population growth rate for Australia from 22 million in 2010 to 36 million in 2050.

The development of the home consumer market for consumer espresso machines is experiencing high growth.

Key Strategies

Moving into the new Sydney market, where the bulk of espresso machines are sold each year, and from which a major (but ineffective) competitor has withdrawn.

Other opportunities could be found in strategic alliances with coffee bean suppliers, where market penetration could easily be achieved and costs of advertising and service could be shared.

Performance Measures and Targets

Performance Measures	Target
To increase of profit margin by 10% from the benchmarking set in the year 2010	Wages to turnover ratio of about 12.5%
To install of 250 machines in each year	100% purchase by bulk amount of load
To reduce of wastage of energy by 10% from the benchmark set in the year 2010	Set of agents in states and outsourcing of maintenance contracts
To establish of warehouse after Sydney comes into the business operations	Setting of innovation and reward programs

SECTION 13

Risk Management

The risk management assignment of the Macville Pty Ltd involves different types of the elements that helps them to facilitate an efficient and effective operation. Elements of Macville risk management generally include different policies and procedures, business planning and budgeting, review regarding the risk management, different monthly report and external audits so they can understand the current position of the organisation and enable the quick response so they can avoid risks regarding the strategic as well as commercial risk. Different policies regarding the human resources, corporate governance and finance helped them to understand different types of problems they are currently facing so they can develop effective risk management plan to mitigate this.

Regulatory Compliance

It supports the ISO 31000:2009 standards because it is intended to harmonise in the risk management processes in the present as well as the future standards. This standard also provides a common approach for supporting the standards to deal with the specific level of rikss so it cannot replace those standards. This standard provides an effective guideline because it is not intended for promoting the uniformity of the risk management regarding organisation.

SECTION 14

Corporate Structures

Board of Directors – Size and Composition

Duties and Responsibilities of the Board

• Implement policies on risk management and internal control where this is deemed appropriate
• Identify and evaluate areas of significant risks potentially faced by MacVille for consideration by the directors
• Identify areas where risk management is not adequately addressed and advise the directors accordingly
• Review and update the Risk Management Strategy
• Undertake an annual review of the effectiveness of systems of internal control and provide an annual report to the directors, including a summary review and respective recommendations.

Board Performance

Audits of board processes against external benchmarks

Audits of director skills against external benchmarks

Psychometric profiling and 360 feedback to discover strengths and development needs of individual directors and managers

Facilitation of corporate retreats for both strategy and budget planning

Executive coaching and appraisals of executive and non-executive directors to improve individual and group performance

Advisors to the Board

MacVille has been keen to pursue strategic alliances as part of its strategy to achieve its objectives. It called for tenders from interested parties, who were asked to complete a tender application form that provided information relating to the tender requirements. Some notes have been included by senior managers who assessed some of the information.

Shareholder Agreements

The Board will then be in a position to compare the potential  shareholder value that could be created by divestment relative  to that which should be generated by Myer’s retention or de- merger.

SECTION 15

Cash flows

		Year 1	Year 2	Year 3	Year 4	Year 5	Total
Operating activities
	Net income	$64,687	$65,824	$77,570	$76,342	$85,604	$3,70,027
	Depreciation	40,000	40,800	41,600	42,400	43,200	2,08,000
	Accounts receivable	0	0	0	0	0	0
	Inventories	0	0	0	0	0	0
	Accounts payable	0	1,000	0	-1,500	0	-500
	Amortization	0	0	0	0	0	0
	Other liabilities	0	0	0	0	0	0
	Other operating cash flow items	0	0	0	0	0	0
	Total operating activities	$1,04,687	$1,07,624	$1,19,170	$1,17,242	$1,28,804	$5,77,527
Investing activities
	Capital expenditures	$0	$0	$0	$0	$0	$0
	Acquisition of business	0	0	0	0	0	0
	Sale of fixed assets	$0	$0	($1,000)	$0	$0	-1,000
	Other investing cash flow items	0	0	0	0	0	0
	Total investing activities	$0	$0	($1,000)	$0	$0	($1,000)
Financing activities
	Long-term debt/financing	$85,522	($65,202)	$9,038	$33,240	($92,598)	($30,000)
	Preferred stock	0	0	0	0	0	0
	Total cash dividends paid	0	0	0	0	0	0
	Common stock	0	0	0	0	0	0
	Other financing cash flow items	0	0	0	0	0	0
	Total financing activities	$85,522	($65,202)	$9,038	$33,240	($92,598)	($30,000)
Cumulative cash flow	$1,90,209	$42,422	$1,27,208	$1,50,482	$36,206	$5,46,527
Beginning cash balance	$50,000	$2,40,209	$2,82,631	$4,09,840	$5,60,321
Ending cash balance	$2,40,209	$2,82,631	$4,09,840	$5,60,321	$5,96,527

Profit and loss

Year-by-year profit and loss assumptions
			Year 1	Year 2	Year 3	Year 4	Year 5
	Annual cumulative price (revenue) increase	–	2.00%	4.00%	6.00%	8.00%
	Annual cumulative inflation (expense) increase	–	2.00%	4.00%	6.00%	8.00%
	Interest rate on ending cash balance		0.50%	0.50%	0.50%	0.50%	0.50%
			Year 1	Year 2	Year 3	Year 4	Year 5
Revenue
	Gross revenue		$6,06,000	$6,18,120	$6,42,845	$6,81,415	$7,35,929
	Cost of goods sold		2,49,000	2,53,980	2,64,139	2,79,988	3,02,387
	Gross margin		$3,57,000	$3,64,140	$3,78,706	$4,01,428	$4,33,542
	Other revenue [source]		$0	$0	$10,000	$0	$0
	Interest income		$1,000	$0	$0	$0	$0
	Total revenue		$3,58,000	$3,64,140	$3,88,706	$4,01,428	$4,33,542
Operating expenses
	Sales and marketing		$40,000	$40,800	$42,432	$44,978	$48,576
	Payroll and payroll taxes		60,000	$61,200	$63,648	$67,467	$72,864
	Depreciation		40,000	40,800	41,600	42,400	43,200
	Insurance		40,000	$40,800	$42,432	$44,978	$48,576
	Maintenance, repair, and overhaul		15,000	15,300	15,600	15,900	16,200
	Utilities		30,000	$30,600	$31,824	$33,733	$36,432
	Property taxes		15,000	$15,300	$15,912	$16,867	$18,216
	Administrative fees		18,000	$18,360	$19,094	$20,240	$21,859
	Other		4,000	$4,080	$4,243	$4,498	$4,858
	Total operating expenses		$2,62,000	$2,67,240	$2,76,786	$2,91,061	$3,10,782
Operating income		$96,000	$96,900	$1,11,920	$1,10,367	$1,22,761
	Interest expense on long-term debt		3,590	2,866	2,106	1,308	470
Operating income before other items		$92,410	$94,034	$1,09,814	$1,09,060	$1,22,291
	Loss (gain) on sale of assets		0	0	1,000	0	0
	Other unusual expenses (income)		0	0	0	0	0
Earnings before taxes		$92,410	$94,034	$1,10,814	$1,09,060	$1,22,291
Taxes on income	30%	27,723	28,210	33,244	32,718	36,687
Net income (loss)		$64,687	$65,824	$77,570	$76,342	$85,604

Balance sheets

Assets	Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Cash and short-term investments	$50,000	$2,40,209	$2,82,631	$4,09,840	$5,60,321	$5,96,527
	Accounts receivable	3,000	3,000	3,000	3,000	3,000	3,000
	Total inventory	25,000	25,000	25,000	25,000	25,000	25,000
	Prepaid expenses	0	0	0	0	0	0
	Deferred income tax	0	0	0	0	0	0
	Other current assets	5,000	5,000	5,000	5,000	5,000	5,000
	Total current assets	$83,000	$2,73,209	$3,15,631	$4,42,840	$5,93,321	$6,29,527
	Buildings	$1,00,000	$1,00,000	$1,00,000	$1,00,000	$1,00,000	$1,00,000
	Land	1,00,000	1,00,000	1,00,000	1,00,000	1,00,000	1,00,000
	Capital improvements	0	0	0	0	0	0
	Machinery and equipment	1,00,000	1,00,000	1,00,000	1,00,000	1,00,000	1,00,000
	Less: Accumulated depreciation expense	0	40,000	80,800	1,22,400	1,64,800	2,08,000
	Net property/equipment	$3,00,000	$2,60,000	$2,19,200	$1,77,600	$1,35,200	$92,000
	Goodwill	$0	$0	$0	$0	$0	$0
	Deferred income tax	0	0	0	0	0	0
	Long-term investments	0	0	0	0	0	0
	Deposits	0	0	0	0	0	0
	Other long-term assets	0	0	0	0	0	0
	Total assets	$3,83,000	$5,33,209	$5,34,831	$6,20,440	$7,28,521	$7,21,527
Liabilities	Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Accounts payable	$2,000	$2,000	$3,000	$3,000	$1,500	$1,500
	Accrued expenses	0	0	0	0	0	0
	Notes payable/short-term debt	0	0	0	0	0	0
	Capital leases	0	0	0	0	0	0
	Other current liabilities	100	100	100	100	100	100
	Total current liabilities	$2,100	$2,100	$3,100	$3,100	$1,600	$1,600
	Long-term debt from loan payment calculator	$80,000	$65,522	$50,320	$34,358	$17,598	($0)
	Other long-term debt	$1,00,000	$2,00,000	$1,50,000	$1,75,000	$2,25,000	$1,50,000
	Total debt	$1,82,100	$2,67,622	$2,03,420	$2,12,458	$2,44,198	$1,51,600
	Other liabilities	0	0	0	0	0	0
	Total liabilities	$82,100	$67,622	$53,420	$37,458	$19,198	$1,600
Equity	Initial balance	Year 1	Year 2	Year 3	Year 4	Year 5
	Owner’s equity (common)	$50,000	$50,000	$50,000	$50,000	$50,000	$50,000
	Paid-in capital	2,50,000	2,50,000	2,50,000	2,50,000	2,50,000	2,50,000
	Preferred equity	0	0	0	0	0	0
	Retained earnings	0	64,687	1,30,511	2,08,081	2,84,423	3,70,027
	Total equity	$3,00,000	$3,64,687	$4,30,511	$5,08,081	$5,84,423	$6,70,027
	Total liabilities and equity	$3,82,100	$4,32,309	$4,83,931	$5,45,540	$6,03,621	$6,71,627

SECTION 16

Business name – Home Espresso Trades

Venture: Cost-benefit analysis – Costs of the shows is $2,500 each. Four shows costing $10,000, selling 10 machines per show at $500. Profit for each would see a profit of $10,000 for the year and a breakeven after two shows.

Internal Efficiency and Effectiveness

Business name- Ambrosia coffee roast

Venture: Cost-benefit analysis – 50 cafes per year, at $200 per cafe cost for each partner. 50 machines sold at $500 profit is $15,000 profit return for the year. Break-even after 20 cafes.

Business name-Java Estate

Venture: Cost-benefit analysis – Potentially 200 machines installed in the first year. Interest costs $40,000 p.a. profit $100,000. Break-even after 80 machines sold.

SECTION 17

Primary Goals, Objectives and Strategies

Objective 1 – To sell and service MacVille espresso coffee machines in every state of Australia in the next five years. All states have a MacVille machine, apart from the Northern Territory where it took some time to get an agent, and an experienced espresso machine repairer has not yet been found to take on the job due to the attractiveness of mining industry pay rates.

Strategy (a) – Sign, action and establish the strategic alliance agreement with Java Estate.

Strategy (b) – Establish a MacVille Melbourne warehouse.

Strategy (c) – Set up agents in other states and outsource maintenance contracts.

Objective 2 – To increase profit margins by 5% from our 2010 benchmark in the next five years. After two years, profit margins have improved by 2%. Some agent contracts and outsourcing contracts are very expensive.

Strategy (d) – Instigate bulk buying negotiations to reduce supplier price.

Strategy (e) – Operate all departments at optimum capacity and productivity.

Objective 3 – To establish the MacVille brand recognition in our key markets over the next five years. After two years, 50% of our target market recognise the brand and 87% of those responding said the brand reaction was very positive.

Strategy (f) – Establish social, internet and networking marketing.

Strategy (g) – Join with Java Estate in co-branding cups and cafe banners.

Objective 4 – To reduce our waste and energy use by 10% from our 2010 benchmark within the next five years. After two years, the reduction is 8% lower than 2010 benchmarks.

Strategy (h) – Set up innovation and reward programs for reducing waste use.

Strategy (i) – Develop and implement energy use awareness campaign.

KPI plan

KPI actual

– 200 machines installed p.a. MacVille opens in Melbourne within two years after Sydney opens for business Agent agreements and outsource maintenance contracts for South Australia, Western Australia, Northern Territory, Tasmania, ACT

Agreement signed within the time limit and actioned, but only 180 machines installed in the past 12 months. There was a slower uptake in Northern Territory and North Queensland, due to the tourist slump with the strong Australian dollar Melbourne warehouse is still not open. It is currently being run on the more expensive agency model Still no service contractor for Northern Territory. All others met the deadline, although agents in Western Australia, Tasmania and Northern Territory were very expensive.

SECTION 18

Performance Measurement

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 positivereaction.4. Objectives reduction in energy wastage is 2% against 2010 set benchmark. Organisation is performing well profit margins have already increased by 2% in last two years as bulk buying’s 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 inhering 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.

Plan Review and Up Date

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.

References

Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.

Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.

Bryson, J.M., Edwards, L.H. and Van Slyke, D.M., 2018. Getting strategic about strategic planning research.

Carnall, C., 2018. Managing change. Routledge.

Cassidy, A., 2016. A practical guide to information systems strategic planning. Auerbach Publications.

Greiner, K.A., Friedman, D.B., Adams, S.A., Gwede, C.K., Cupertino, P., Engelman, K.K., Meade, C.D. and Hébert, J.R., 2014. Effective recruitment strategies and community-based participatory research: community networks program centers’ recruitment in cancer prevention studies. Cancer Epidemiology and Prevention Biomarkers, 23(3), pp.416-423.

Haines, S., 2016. The systems thinking approach to strategic planning and management. CRC Press.

Hermann, C., 2017. Assessing Historic Places Regarding Risks and Vulnerabilities Associated with Climate Change to Inform Conservation Planning—Development of Assessment Methods in Northern Europe. Journal of Heritage Management, 2(1), pp.32-52.

Kabisch, N., 2015. Ecosystem service implementation and governance challenges in urban green space planning—The case of Berlin, Germany. Land Use Policy, 42, pp.557-567.

Karepova, S.G., Karabulatova, I.S., Novikov, V.S., Klemovitsky, S.V., Stratan, D.I. and Perova, A.E., 2015. New approaches to the development of methodology of strategic community planning. Mediterranean Journal of Social Sciences, 6(3 S6), p.357.

Klochko, E.N., Rybyantseva, M.S. and Oksanich, E.A., 2016. Development of Controlling in Postindustrial Economy: Tools and Techniques. International Journal of Economics and Financial Issues, 6(1S), pp.33-40.

Logan, S., Christensen, T., Barry, T., Price, C. and Lárussoon, K.F., 2018. Circumpolar Biodiversity Monitoring Program Strategic Plan: 2018-2021

McKay, D., Armstrong, D., Sadowski, D., Jones, N., MacNaughton, W. and Sinclair, P., 2016. Canadian Association of Gastroenterology: Strategic Plan 2016–2020. Canadian Journal of Gastroenterology and Hepatology, 2016.

Mukhopadhyay, S., Lin, Y., Mwaba, P., Kachimba, J., Makasa, E., BScHB, M.B., Lishimpi, K., Onc, F.R., Silverstein, A., Afshar, S. and Meara, J.G., 2017. National surgical, obstetric, and anesthesia strategic plan development–the Zambian experience. ACS Bull, 102, p.6.

Nesterenko, M.A., Saliy, O.N., Putilina, I.N., Berezhnoi, A.V. and Rylov, D.V., 2015. Strategic Priorities in Development of the Agro-Industrial Complex of the Krasnodar Region. Mediterranean Journal of Social Sciences, 6(5 S3), p.176.

Pismennaya, E.E., Ryazantsev, S.V., Karabulatova, I.S. and Luk’yanets, A.S., 2015. Socio-economic Situation of Vietnam in the Context of the Development of New Forms of Migration. Mediterranean Journal of Social Sciences, 6(6 S3), p.135.

Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.

Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven agenda. Journal of Management, 43(6), pp.1754-1788.

Zakharova, E.N., Prokhorova, V.V., Shutilov, F.V. and Klochko, E.N., 2015. Modern tendencies of cluster development of regional economic systems. Mediterranean Journal of Social Sciences, 6(5 S3), p.154.

Zenker, S. and Jacobsen, B.P., 2015. Inter-regional place branding. Springer International Publishing, Cham.[https://doi. org/10.1007/978-3-319-15329-2].