Current Approaches and Organisational Values of MacVille - Case Study Example

Macville’s Case Study Analysis Student’s Name Course Instructors Name Institutional Affiliation Date Macville’s Case Study Analysis Task 1 organisational review To: email From: email Subject: Mission/Vision review Existing mission and vision MacVille’s current vision is to become a national brand that is acknowledged as an integral constituent of the hospitality industry and viewed as an important component in the success of hospitality setups both large and small. Providing espresso coffee machines that meet sustainability, reliability and efficiency demands of our hospitality customers who will, on the other hand, reward us with profits that will allow for the prosperity of the communities and stakeholders in which we serve stands to be the company mission. Current approaches MacVille is interested in seeking out the new partnership and embracing strategic alliances that will provide a backbone and boost the strategies, desired outcomes, and mission of the organization. The company also needs to include innovation in its mission as innovation has been as a result of the directive of the self-directed team. Also, MacVille needs to identify itself with the community it serves by becoming a good corporate citizen that realizes its social responsibilities of being active in the local community and donate money to the community and the non-profit organizations within the community. Revised mission and vision Due to the changes in the operation of the organization, there is need to revise the vision and mission of MacVille. The revised vision for the company states that in a period of no longer than five years, MacVille together with its allies and partners will be viewed as a major constituent in the success hospitality establishments, both small and large, due to its innovation, it will become a national brand and it will be recognised as an important constituent of the hospitality industry in the community it serves. The revised mission states that MacVille will render espresso coffee machines that meet the sustainability, reliability and efficiency demands of their hospitality customers that will give room to its stakeholders to succeed. Beneficial results for the community it serves and its shares will be reaped out of strategic alliances and innovation. Organisational values Derived from the current approaches and the revised mission and vision statements, the organizational values include: To seek out partnerships and alliances that will provide a backbone and boost its strategies, results, and mission. To include innovation in the organization’s mission and look for ways to improve effectiveness and efficiency of the client solutions and the business itself as well as simplifying the business. To familiarize with the community, it serves by acknowledging its social responsibilities to the society. Task 2 Environmental Analysis PEST analysis Political- in line with the Government free trade policy, there are projected modifications where all tariffs on imported products will be abstracted. Economic- due to boom in resources, the economy is foreseen to grow at a higher rate than it was expected. Social- the Australian population is expected to rise from 22 million to 36 million in 2010 and 2015 respectively. Technology- development of new espresso machines that use thirty percent energy to run and it has more efficient and innovative heat exchanger. SWOT analysis Strengths- high-quality services to its customers. The services include handling of complaints, after-sale services, training and installation. Customer service is guaranteed for twenty fours in a day. Weaknesses- outbound logistics is a major weakness as the organization depends on only one delivery firm that at times fails to deliver goods to the customers on time. Inbound logistics is also another weakness of the organization. Opportunities- Strategic alliances with coffee bean suppliers possess a key opportunity for the organization as entry into the market will be achieved easily as well as sharing the costs incurred during advertisement and service rendering. Threats- globalization is posing a major threat to national organizations as it has eased the entry to market for global organizations. MacVille is experiencing the same threat from international organizations such as Nufix Inc. Existing And Potential Competitors And Allies Ally 1. Home Espresso Trade Strength- provide compliments to espresso machines that provide range offer to consumers. Weakness- its focus is not based on the hospitality industry. Ally 2. Java Estate Strength- the organization bases its commitment to coffee beans and hospitality only. Weakness- coffee bean suppliers may not advocate MacVille machines with Java estate as it is a strong strategic alliance. Ally 3. Ambrosia Coffee Roast Strength- the supplier bases the commitment on coffee beans only. Weakness- product image is commodity-based rather than basing it on quality. Competitor 1. Nufix Inc Strength- easy access to human, finance and marketing resources as it is an international organization. Weakness- Lack of loyal customers due to the existence of strong suppliers and the organization does not meet the demands of the niche market. Competitor 2. BeanEx Strength- the company has easy access to the coffee market. Weakness- the organization lacks an established service arm to assist the customers in the maintenance of the purchased machines. Potential Allies Ally 1. Home Espresso Trade Its mission, vision and values are only based in Sydney making it narrow. The organization is ready to supply due to industry materials. Although the organization’s presented financial statements show a positive trend, it is not a perfect fit as it is not financially strong. The organization’s profits are also not admirable. Ally 2. Java Estate Mission, vision and values show positivity in that they put their focus on a high-quality brand. The organization is ready to supply due to industry materials, and its financial trends are supplied where it shows a strong cost-benefit analysis and increased sales over time. Java Estate stands to be the best fit to be the MacVille ally as it shows a stronghold increased sales and a stable financial position. Its association is also creditable. Ally 3. Ambrosia Coffee Roast Organizational alignment- its mission, vision and values are perfect as it is in the same business line although it engages in selling to industry and supermarkets. Its financial statements are not provided and it is not ready to supply due industry materials. It is a poor match as it does provide all its information and the risk of associating with bad brand. Task 3. Strategic Planning Objective 1. To sell and service MacVille espresso coffee machines in the next five years in all Australian States. Objective 2. Increase the profit margins in the next five years by 5% from the 2010 financial analysis. Objective 3. To launch recognition of MacVille brand in the major markets in the next less than five years. Objective 4. Within a period of five years, be able to minimize waste and use of energy from the previous benchmark by 10%. Strategy 1 A) Open up a MacVille warehouse in Melbourne B) Sign, auction and develop the strategic alliance agreement with its ally Java Estate Strategy 2 A) Outsource maintenance contracts and set up agents in other states to conduct the business. B) Stir up negotiations that will include bulk buying that will help in bringing down the supplier prices. Strategy 3 A) Improve on its marketing strategies by engaging in, networking, the internet and social market. B) Form an ally with Java Estate in co-branding cafe banners and cups. Strategy 4 A) Come up with innovation as well as motivation strategy for reducing waste usage. B) Come up with energy usage awareness campaigns to educate the community it is serving. Strategy 1a is number eight in priority and timetabled to kick off after six months which will be two ears after Sydney opens for business. The company CEO will be responsible for this strategy. Strategy 1b is given the priority and it is timetabled to take place in 18 months where two hundred espresso machines are installed annually. The Bard Chair is responsible for overseeing this strategy. Strategy 2a receives the fifth priority with the organization CEO being responsible for the strategy. It is timetabled to take place in three months with agent agreements and outsource maintenance contracts for ACT, Northern Territory, South Australia, Tasmania and Western Australia. Strategy 2b received the last chance on the priority list and timetabled to take place within two years. The CEO is left to oversee the strategy that is expecting its wages to turnover ratio to be 12.5%. Strategy 3a is number six in the list, and it is timetabled to take place within two years. The Marketing Manager is responsible for making sure that the strategy is well implemented. The expectations are that there will be more than ten thousand people clicking the organization website per day. Strategy 3b the marketing manager is responsible for this second priority strategy. The technique is expected to take charge in the next six months and all the cafes with MacVille espresso machines will be using the organization cups. Strategy 4a is expected to take over within two months and it is number seven in the priority list with Human Resource Manager being responsible for the priority. The organization is expected to make six innovations annually and twenty-five suggestions annually that will help in reducing waste. Strategy 4b estimates that the energy use per person will drop to 10KW with the operations manager being responsible for overseeing the progress of the strategy. The strategy is number four in the list and its timeframe is half a year. Task 4 Reviewing Implementation The following is a progress report for MacVille organization’s objectives and strategies: Objective 1. The first objective was to sell and service MacVille espresso coffee machines in the next five years in all Australian states. The objective is almost fully met as it is only one state where the machine has not yet been delivered due to lack of machine repairer. Strategy a. A warehouse is yet to be opened in Melbourne Strategy b. Out of the planned 200 machines, only 180 machines have been implemented in the past one year. Slow uptake in the North Queensland and the Northern Territory were experienced because of the tourist slump with the strong Australian dollar. Objective 2. The objective had aimed at increasing the profit margin by 5% where it has only made it increase the profit margin by 2%. Strategy a. The strategy was achieved apart from lack f contractor in the Northern Territory. Strategy b. The organisation was able to fully implement the strategy and acquire 100% achievement as all orders are filling the container. Objective 3. The objective was to launch recognition of MacVille brand in the major markets in the next less than five years. There is a positive progress as for the past two years, 50% of the target market has recognized MacVille brand. Strategy a. The strategy is fully achieved as there are 12,000 clicks on a daily basis which is higher than the targeted number of clicks. The strategy has been achieved in half the timetabled time. Strategy b. The strategy was introduced within the time frame but it has only achieved 50% since the colors and designs are not very attractive to customers. Objective 4 The actual objective was within a period of five years, be able to minimize waste and use of energy from the previous benchmark by 10% where only 8% ha been achieved. Strategy a. The strategy was introduced as per the timetable and it has been achieved where eight innovations and thirty suggestions are made annually which is more than the expectations. Strategy b. The plan was introduced late and it has not been accomplished as the energy usage per person is 12KW. Overall progress Objective 1 80% of the objective was achieved where 180 machines were installed. Objective 2 About 80% of the expectations were achieved. Objective 3 More than 80% of the target was achieved with marketing strategy going over the expectations and branding achieving 50% of the target. Objective 4 Around 70% of the objective was met as waste management was doing more than expected and energy use needs a lot of effort to improve it. Improvements Objective 1 The organization CEO should be on the run to appoint someone to oversee the opening of a MacVille warehouse in Melbourne and look for a service contractor for the Northern Territory. Objective 2 The organization should keep on increasing its sales so as to get the sale ratios to the targeted level. Personnel performance should be monitored where the non-performing should be forced to move to the performing sections. Objective 3 Employ sales representatives and agents who will assist in the recognition of the brand while the company demands feedback from the cafes that did not take their cups and improve on color and design of the same. Objective 4 The company CEO should take the opportunity and create awareness of the energy use program to the whole organization. Read More