ASSIGNME

NT
BSB60407 ADVANCE DIPLOMA OF BUSINESS
MANAGEMENT

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 selfdirecting teams.

> To participate in community.

> Develop strategic alliance and partnerships.

PART B ENVIRONMENTAL ANALYSIS

PEST ANALYS|S:lt consists of analysis of political,
economic, social and
technological environmentoforganisation.

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 |ogistic: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

> Good reputation after sale > Poor

performance of
Services contracted delivery> Excellent advertising and company.
marketing mix. > Lack of experience> State of art
Management personnel to deal withinformation system. import and
custom.

Opportunities

could

> Use of internet for > Raising interest rates

advertisement. decrease disposable income> Withdraw of competitor >

Nufix.inc a globalfrom new Sydney market. corporation entering in> Increase in
population espresso machines and

growth rate. bean market.> Bean ex

coffee supplier is
ntering in espresso
machine market.

Existing / potential competitor

1. Nufix inc.
coffee

It is shifting from instant coffee to espresso machine and

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 ofjoint business:Shared space in four trade fairs.

Strengths
market.

Home consumer market compliment commercial consumer

Weakness

Alliance also focuses on nonhospita|ity 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 ofjoint venture business: Share of outdoor
advertising cost at Cafe
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 ofjoint 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 sTRATEG|c PLANING (PROJECT PLAN

BREIFING)

Organisation Objectives
1.To sell and service espresso machines in all states of
Australia by acceptingjava estate tenderand to look for warehouse
opportunity in other high volume
estates

2010.

2.To increase profit margin by 10% from benchmark set in

3.To establish Macville brand recognition in key markets in next

five years.
2010.

4.To reduce energy wastage by 1090 from benchmark set in

Organisation objectives and strategies to

achieve objectives

ObjectiVel.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
P|an:To install 200 machines per annum.

b. Establish Macville warehouse.> KPI Plan:To

open warehouse in Melbourne after Sydney opens
forbusiness.

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

KPI planzset 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
0bjective3.To estab|ishMacvi||ebrand 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

cups.

> KPI p|an100% caf using our machines use our

0bjective4.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

Only 198 machines are

KPI ActualTo install 200 machines >

per annum installedTo open Melbourne

> Melbourne warehouse is
no service

warehouse still not open.To assign agent and > Still

outsource maintenance contractors for Northern

territory and
contractor forNorthernterritory,
SouthAustralia, ACT,
agents

WesternAustra|ia are

WesternAustralia, Tasmania.100% order by containerloadWages to turn

over ratio125%1000 clicks per day on
assigned for other stateslike

ery expensive.All order was by 100%

was very
experienced.Survey
shows
only
50%
ontainer
load.13.8%
wages to turn over
uptakedesign
and colour

atio achieved12000 clicks per day. sEo

website100% caf using Macville

machine to use our cups25 suggestions and 6

newinnovations to beintroduced.To reduce energy waste10kw per person
not attractive.30 innovations and 8
newinnovations introduced.12 kw energy

onsumption per persondropped

Milestone Progress

1. Objective Macville machines are installed in all

states except in northern
territory because taking time to hire agents and maintenance
contractors.

2.0bjective Profit margins have only increased to 2% in two

years. Some

agents and contractors are very costly.

3.0bjective50% 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.