●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.Partner 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 –ASSETSCurrent AssetsCash at bank10,000Accounts Receivable15,000Stock8,000Prepaid expenses2,500Total Current Assets35,500Non Current AssetsBuildings0Less Accumulated depreciation0Equipment356,000Less Accumulated depreciation(24,998)Goodwill10,000Total Non Current Assets341,002Total Assets376,502Represented byLIABILITIESAccounts Payable25,000Long term loan251,500Total Liabilities276,500OWNERS EQUITYInitial Capital2Current earnings100,000Total Owners Equity100,002Home Espresso TradersStatement of Financial Positionas at 31 December 201X