The concerns of the group were centred on a global corporation Nufix Inc

The concerns of the group were centred on a global

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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. Another competitor of note was BeanEx, a large coffee bean supplier that had recently started importing espresso machines for their customers. There was talk of them selling the espresso machines as wholesalers. They certainly had easy access to markets with their coffee bean trade, but they had no established service arm to help wholesale clients maintain the machines that they purchased. 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. Tender submissions Three submissions are attached to this case study.
Assessment Task 2 BSBMGT616 Develop and implement strategic plans RTO: 22332 Version: 2 CRICOS: 03234B Page 5 of 10 Business name Home Espresso Traders Description of business (include vision, etc.) Selling consumer home espresso machines to the home market, only in Sydney, and incorporating other digital home entertainment products. Description of joint venture Shared space in four trade shows per year. Venture: Strengths and weaknesses Strength: covers the consumer market for espresso machines (which complements the commercial market for espresso machines) to make a full range offer to clients. Weakness: working with a strategic partner who is not solely focused on the hospitality industry. Venture: Risks 1. Partner not fulfilling their financial commitment. 2. Association with a non-industry partner may have a negative effect on MacVille customer base. 3. P artner access to MacVille’s trade secrets. Venture: Cost-benefit analysis Costs of the shows are $2,500 each. Four shows costing $10,000, selling 10 machines per show at $500. Each would see a profit of $10,000 for the year and a break-even after two shows.
Assessment Task 2 BSBMGT616 Develop and implement strategic plans RTO: 22332 Version: 2 CRICOS: 03234B Page 6 of 10 Venture: Financials ASSETS Current Assets Cash at bank 10,000 Accounts Receivable 15,000 Stock 8,000 Prepaid expenses 2,500 Total Current Assets 35,500 Non Current Assets Buildings 0 Less Accumulated depreciation 0 Equipment 356,000 Less Accumulated depreciation (24,998) Goodwill 10,000 Total Non Current Assets 341,002 Total Assets 376,502 Represented by LIABILITIES Accounts Payable 25,000 Long term loan 251,500 Total Liabilities 276,500 OWNERS EQUITY Initial Capital 2 Current earnings 100,000 Total Owners Equity 100,002 Home Espresso Traders Statement of Financial Position as at 31 December 201X

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