Strategic Planning for MacVille - Case Study Example

DЕVЕLОР AND IMРLЕMЕNT STRАTЕGIС РLАNS TASK: STRATEGIC PLAN 1. To Sell and service MacVille espresso coffee machines in every state of Australian. Strategies - Accept Java Estate’s tenderr to become an ally in order to open up to the Australian Market. - Engage in mass production of espresso machines with a view to supply to all the affiliated outlets through the allies in six months. - Engage in a nationwide marketing promotion campaign to popularize the products and brand in 2 months. This will be done through liaison of the operations, human resource and marketing departments to be achieved within the first quarter of the financial year. Performance indicators - The approximate market size will indicate the performance of the alliance with Java Estate. - Statistics of the received machines for all the outlets and allies. - Undertake surveys regarding the popularity of MacVille’s products. 2. Increase profit margins by 5% from the 2010 benchmark in the next five years. Strategies - To reduce operational costs in three years. - Accelerate advertisements and other marketing initiatives in 3 months. - Use of promotional strategies such as customer points and discounts in 7 months. Performance indicators - Assess the values of inputs and expenses that run production and distribution activities. - Undertake surveys regarding the popularity of MacVille’s products. - Take stock of the units purchased due to promotional strategies. 3. To establish the Macville brand recognition in key markets in the next five years Strategies - Build outlets in key market areas n the next one year. - Employ co-branding techniques with strategic partners in order to appeal to customers in key markets bin a span of a year. - Employ technological promotion techniques such as internet search words of MacVille. - Respond to customer needs in brand establishment through product diversification achievable in 2years. - Use market segmentation technique to appeal to targeted customers achievable in the space of six months. Performance indicators - Counting the number of customer service and supply centres and outlets. - Assess the extra customer base attained due to co-branding. - Determination of the number of searchers who use the word MacVille on the internet. - Establish the number of products developed in response to customer needs. - Take note of the consumer factors to determine if the segmentation technique is profitable. The strategies will be prioritised depending on the market behaviour as will be established by market surveys that will be conducted within six months. Priority will be put on building outlets in areas that are determined to be an active customer base. The internet search word promotion technique for brand popularization will be an all time strategy that should be put in fact by the following financial year. 4. Reduce wastes and energy use by 10% from the 2010 benchmark within the next five years. Strategies - Establish a research centre for purposes of encouraging creativity that crack the problem within 2 years. - Initiate creativity and innovation awards targeting any inventions among employees and other stakeholders that come in handy to achieve this in a year’s span of time. - Establish an incubation centre for ideas that can be developed to address wastage and energy use within 3 years. - Purchase technologies that are cost-efficient and help in addressing the problem within 2 years. These strategies are meant to encourage internal innovation and creativity in order to boost an internal problem-solving structure which is the reason as to why creativity and innovation strategies will be prioritized. Performance indicators - Determine the number of visitors to the research centres and creative ideas that are credited to it. - Determine how creativity has helped solve waste and energy issues on a financial value scale. - Statistics of the type ad number of ideas under incubation and their success rates. - Determine the rate of energy use reduction and wastes due to purchased technology. CEO’s Take The CEO noted that the company needed more collaborative approaches to marketing that would help expand the market size. The company was also supposed to adopt strategies of reducing costs and focus on profit maximization. This in spite of efforts the company has to make to ensure the company maintained responsiveness to customer needs through product diversification. Briefing and Information Notes CEO Java Traders - Supply co-branding suggestions - Cost sharing modalities proposals - Provide collaborative promotion and marketing suggestions. Human Resource manager - Draw reward criteria to employees and forms on innovation and creativity. - Propose strategies for improving employee competence on handling products when adding value. Operations Manager - Come up with ways of smoothening transitions of products and services among the departments. - Introduce value creation initiatives on inputs and resources. - Supervise the implementation of changes and strategies by departments and collect feedback. Briefing Statement to Parties To; Subject; Strategic Planning Brief In line with the changes that were proposed for revision on the vision and mission statement, this comes to notify you that there are various strategic planning changes in line with the values of the statements. The strategies focus on profit maximization, expansion of the market share, reduction of wastes and energy consumption as well as motivate creativity. Kindly be aware you have roles to play in the transformation to realize the objectives and expected performance outcomes. Regards TASK: To: SUBJECT: MISSION/VISION REVIEW I hereby wish to give the initial explorative summary of the organization’s vision and mission statements in light of various prevailing conditions and practices that characterize it. This is meant to form a basis for the intended strategic planning proposal. 1. Existing Vision and Mission Reading through the annual report of the previous year it came out that MacVille has it as the mission to become a national brand within the next five years and exert itself to be accepted as an integral part of the hospitality industry to contribute to the success of large and small hospitality establishments. For the vision MacVille conducts its business with a mindset of making profits through customer satisfaction that is a rewards from provision of espresso coffee achiness that meet the efficiency, reliability and sustainability needs of customers. There is in both of these the articulation of a desire to establish a prosperous business grounded on values of and practices that rewards both the customer and the organization. 2. Current Approaches MacVille’s approaches are by and large based on sustenance of professional and conventional ways of doing things that insist on employees to observe codes and operate within established sets of regulations. There has also been a high level application of lees supervisory means that allows employees to be self-directed and to use their knowledge as long as they adhere to the organization’s regulations. This has made the management of the organization to focus o stewardship rather than creativity and innovation that has occasioned stagnancy and slow progress. The organization has also been committed to practices that ca enhance customer satisfaction through delivery of value such as quality and efficiency to them. 3. Revised vision and mission Based on the changes MacVille aspires for, there is a need to remodel the vision and mission statement as proposed below; Mission, To be a dynamic organization that responds to the needs of customers through responsive organizational practices organized around stakeholder satisfaction, reliability, innovation and creativity; adopting community approaches that contribute positively to the business environment. Vision To make a nationally renowned organization that models innovation, stakeholder best-practices and responds to the changing global dynamics of technological advancement, competition and legislations in order to revolutionize the hospitality industry. 4. Organizational Values The achievement of the revised vision and mission will be pegged on the adoption of effective human resource practices that foster talent expression and retention, creativity and development. MacVille will also need to cultivate mentorship practices of supervision, leadership and teamwork that will enable efficiency of policy and strategy implementation. Besides, management practices based on staff empowerment, dynamism and feedback will highly help in achieving inclusion and participatory practices for realization of set business targets. Summary notes of meeting with the CEO The CEO pointed out that the organization had never changed its values since it was established mention that MacVille had always nurtured values of stewardship, professionalism and self-drive among the stakeholders. Besides, the organization was also concerned to adopt wise environmental practices that lead to delivery of value customers. The CEO noted that the vision and mission statements do not capture the recent developments that MacVille has been adopting as part of its practices due to a poorly visualized previous strategic plan. He emphasized the need to nurture innovation, raise standards and be directed towards betterment as challenged through gathering of feedback; the things he thought should be captured in the vision and mission statements. Chain Analysis, PEST and SWOT With the proposed vision and mission statements, various environmental factors could impact on their achievement and implementation. This presents a comprehensive exploration of the environmental underpinning factors to the new vision and mission. PEST Analysis There are various factors that have developed on the political, social and economic frontiers that have an influence on the new mission and vision. One of this is the fact that new technologies that help in achieving efficiency and mass production are being developed. One of such innovative developments is the one that uses 30% les energy yet promises and has an innovative and more efficiency heat exchanger. This can lower operational costs of the company due to energy consumption that current machines use. Besides, there is a planned lift on al tariffs imposed on imported goods as the government passed a free trade policy. This will further cut operational costs and cut expenditure used to deliver inputs from other countries and saving finances that can be used to promote innovation and boost other value chain activities. As an opportunity of trade, the growing home consumer market for consumer espresso machines is a positive thing that will boost sells for more profitability. There is a prospected expansion of the market due to the projected steady population growth from 22million to about 36miilion in 2050. All these are crowned by the fact that the Australian dollar is shown to possibly grow stronger. It is predicted that this will happen in most of the trading partners and hence profits could grow higher and the value of the organization as well as its purchasing power to adopt technology and modern systems. SWOT Analysis Strengths The company ha adopted the art of Management Information system that has allowed stronger and better internal controls, financial and accounting practices. A strong sales and marketing strategy based on social marketing. Service and attractive after-sales services Customer prioritization and 24hr service calls that have increased sales. Weaknesses -Inbound logistical problems due to inexperienced personnel. - Delays in meeting customer delivery timelines due failure to follow proper procedures. - Poor outbound logistics due to contracts with delivery firms that cause delays. Opportunities Moving into the new Sydney Market motivated by the withdrawal of a major but ineffective competitor. Market penetration to be enhanced through alliance with coffee bean suppliers and lead to cost-sharing on advertisement. Threats Raised interest rates that are prospected could reduce the disposable income of coffee-drinking patrons The raising Australian dollar will adversely affect tourism that categorically buys espresso machines thereby undermining business. Tightening competition due to entry of new competitors into the espresso line of business e.g Nufix Inc. 3. Review of Existing and Potential Allies Competitors -Nufix Inc. - BeanEX In the running of the business, MacVille engages in various alliances to complete its supply chain. One of such is the contract delivery firm that livers the organization’s goods to customers. This ally has a weakness since they sometimes lead to delays or do not find appropriate vehicles to deliver espresso machines. -Home Espresso Trades is an ally that could help in widening the customer base of the business but as well divert the attention of customers as the ally does not solely focus o the hospitality industry. The market will be diversified thereby leading to a wider customer catchment. Ambrosia Coffee Roast Sell of grades of coffee bean to supermarkets and hospitality outlets around Australia. Strength Sharing of the client base since the client is more focused on the coffee bean industry. Weakness Associating with a less popular or poor brand This is in line with MacVille’s vision of revolutionizing te industry by helping other businesses grow along with it. Java Estate Sell of roasted coffee beans of the Arabica variety al over Australia. Strengths A strong alliance given the commitment to hospitality and coffee bean business Weakness Poor financial history The ally may undermine MacVille’s reputation to enter an engagement with an ally who has large amounts of money outstanding. Summary Notes from meeting with CEO The CEO noted that the company needed to take advantage of opportunities of expanding the market share through such strategies as alliances and co-branding. He proposed that the company had opportunities to capitalize on through alliances to sell espresso machines in all the states of Australia. He also noted that identified certain competitors had lost ground on key markets that the company needed to move on and gain a mileage in such areas. TASK: KPI Progress There is being realized progress in the implementation of the various Key Performance Indicators as noted below: 1. Market Size Estimation There is noted a marked expansion of the market size due to the sell of espresso machines throughout Australia. This is seen coming through as a result of the alliance with Java estate to access unexploited markets within Australian states. 2. Statistics of received machines for outlets and allies. There has been a marked increase in the production of espresso machines as noted by the 10-15 machines average recorded in most of the outlets within the timeline. However, some allies in fast markets had less than 10 which show a need for more vigorous production of the machines and subsequent fast distribution channels. 3. Undertake surveys regarding popularity of the MacVille brand From the initial surveys, there is a growing awareness about the products produced by MacVille in new markets which is attributed to the reenergized advertisement and marketing campaigns. 4. The value of inputs and operational expenses There still needs to be identified more remote areas of reducing operational costs the value of inputs remains high. This can however be accredited to the fact that there are many initiatives and programs being undertaken due to the implementation of the new strategic plan. 5. Take stock of the units purchased due to promotional strategies. The stock taking strategies remain unsynchronized although the value of sales indicates a marked increase in units purchased. 6. Outlets and customer service centres The customer service centres and outlets have been increased thanks to the co-branding and alliance strategies that have helped in this direction. 7. extra customer base attained due to co-branding There is a vast extra-customer base that co-branding has provided as espresso machines are now being sold in all the states of Australia. The association with other related businesses is bringing about this and this is bound to expand the more. 8. MacVille Searches online There is a lot of searches happening on the internet. The tracer indicates that people search or the profile of the company its products and services which indicates brand recognition. 9. Number of products developed in response to customer needs. There is still is customer needs identification and preferences being collected which may inform future service and product diversification that has not yet happened. 10. Profitability of the segmentation technique It cannot be established which segment of the market account for much of the sales the company has on its espresso machines. This suggests that the market segmentation strategy may not help create value to MacVille’s line of business. 11. Number of visitors to the research centres and creative ideas that are credited to it. The research centre has become part of the daily routine for employees in elite roles to visit on a daily basis. Employees have noted the integration of the research centre as but part of their development activities that the organization has provided for them. 12. Creativity has helped solve waste and energy issues on a financial value scale. Creative solutions have already helped to cut on the wastes emitted by the organization saving expenses that go towards containing and channelling wastes. Creativity however remains something to be nurtured since the finances saved due to wastes and energy saving remain negligible and insignificant. 13. Ideas under incubation There are currently over 20 ideas that under incubation most of which have originated from employees. Only six of them have been successfully tested and rolled out for implementation towards reduction of wastes. This means the implementation of the strategy is well on course. 14. Technology for waste reduction and energy conservation While procurement for the latest technologies remains in the process, various technologies installed previously are already aiding to reduce wastes and save on energy. However, technologies have been identified and procurement channels are being tailored and are expected to e concluded in due time. Milestone’s Progress 1. Objective 1. To Sell and service MacVille espresso coffee machines in every state of Australian. Espresso machines are now distributed in all the states of Australia and can be accessed from selected dealers and allies. However, some states have few outlets. 2. Increase profit margins by 5% from the 2010 benchmark in the next five years. Strategies The company has realized a profit increase of 2% within a year and a quarter pointing to the possibility of attaining the set target within the timeline determined. 3. To establish the Macville brand recognition in key markets in the next five years This is one objective that has marked major milestones as the company continues to penetrate markets courtesy of the co-branding strategy. The company now is searched online for its products and services. This is therefore an objective that can be realized well before the set timeline. 4. Reduce wastes and energy use by 10% from the 2010 benchmark within the next five years. It is not yet possible to establish the milestones margin so far accomplished given that acquisition of technologies is still under procurement and the ideas so far developed to aid in this direction are newly under implementation. However, there is a general cut on the finances used on waste management and channelling so far pointing to positive achievements on the objective. Overall Progress There is a general trend of progression to implement strategies and tailor energies and initiatives towards the accomplishments of set objectives. The objectives can so far be judged as being realistic and attainable. Improvements The process of developing the plan did not directly involve such contribution from quarters such as employees and feedback of customers. There is also lack of borrowing organizational best practices as learned from benchmark organizations which can be infused in later stages of implementation as evaluation and feedback starts coming in. Read More