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environmental factors that could impact on MacVille’s goals and objectives. To help you with this assessment, you are provided with an industry consultant’s report that contains a recent and comprehensive review of the industry and general operating environment.Industry consultant’s reportYou have noted the following points from the report:●New commercial espresso machines are being developed that use 30% less energy to run, with an innovative and more efficient heat exchanger.●Planned changes in trade where all tariffs on imported goods, including espresso coffee machines, will be removed in line with the Government’s free trade policy.●The development of the home consumer market for consumer espresso machines is experiencing high growth.●The lifestyle trend towards eating out more frequently as the population ages and becomes more affluent.●The prediction of a steady population growth rate for Australia from 22 million in 2010 to 36 million in 2050.●The prediction of a strengthening Australian dollar against all our major trading partners over the next few years is also a concern.●The prediction of higher-than-expected growth in the economy, as a result of a resources boom.●The strong possibility of a carbon tax being introduced on all energy intensive products used in a commercial enterprise.Senior manager’s meetingAt a meeting with the CEO and other senior managers, the following points were noted in regard to the operations of MacVille. In response to your question about how effectively MacVille adds value toits products and services, the following responses were agreed by all.●Inbound logistics is a problem, due to the lack of experienced personnel in importation and customs operations. The lack of solutions from Human Resources Management has meant thatdelivery timelines are sometimes delayed because the proper procedure was not followed.●The operations of MacVille is an area of strong value-add, with the state of the art Management Information System (MIS) forming part of MacVille’s infrastructure. The MIS has allowed for sound corporate/strategic planning, along with strong internal controls in accounting and finance.
●Outbound logistics is an area that could be improved. Currently, MacVille relies on a three year contract with a delivery firm to deliver its goods to customers. Sometimes there is a delay in getting the appropriate vehicle to deliver the espresso coffee machines, which is causing some issues with customers. The contract delivery firm seems to be struggling to deliver the promised quality with their fast expansion.●All managers agreed that marketing and sales is a strong point for MacVille. The marketing communications and promotions mix seems to be working well, particularly with the social marketing that MacVille has introduced in the past year. Technology developments are helping MacVille to reduce costs, yet expand the message via internet marketing activities.