Another competitor of note was beanex a large coffee

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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.BSBMGT616 Develop and implement strategic plans v1.2 150217Page 16of 38
Tender submissionsThree submissions are attached to this case study.Business name – Home Espresso TradersDescription 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: Risks1.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.BSBMGT616 Develop and implement strategic plans v1.2 150217Page 17of 38
Venture: Financials – BSBMGT616 Develop and implement strategic plans v1.2 150217Page 18of 38
Venture: Trend analysis – Sales2013 – $1.0m2014– $1.3m2015 – $1.5m2016 – $1.6m2017 – $1.6mAble to provide access to due diligence materials?Copies of other strategic alliance agreements? YES NO Statement of Financial Position from last tax return? YES NO Full personal contact details of all directors? YES NO Supporting data for trends, and cost-benefit analysis? YES NO Business name – Ambrosia Coffee RoastDescription of business(include vision, etc.) – Sell all grades of coffee bean to supermarkets and hospitality outlets around Australia.Description of joint venture– Share in the cost of outdoor advertising for cafes and restaurants, with shared branding of umbrellas and barriers.Venture: Strengths and weaknesses– Strength: Supplier is committed to the coffee bean industry, with some sharing of the client base. Weaknesses: Has concerns with sharing information, citing intellectual property. Product image is not quality but more commodity-based.

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