100%(9)9 out of 9 people found this document helpful
This preview shows page 5 - 9 out of 18 pages.
Financials:Total current assets: $35,500Total non-current assets: $341,002
6Total liabilities: $276,500Total owner’s equity: $100,002Trend sales: Increased steadily.Due diligence: Fully provided.Overall Potential Assessment: lowRisk:Risks with poor brand association.Long term commitment in signage.Cost benefit analysis: 50 cafes per year, at $200 per café cost for each partner. 50 machinessold at $500 profit is $15,000 profit return for the year. Break-even after 20 cafes.Trend sales: 2007 - 2008: Decreased2008 - 2009: Decreased2009 - 2010: Increased2010 – 2011: IncreasedUnstable.Financials: Not provided.Due diligence: Copies of other strategic alliance agreements have been provided.No statement of Financial Position from last tax return.No full personal contact details of all directors.Supporting data for trends, and cost benefit analysis have been provided.Overall Potential Assessment: lowCost-benefit analysis: Potentially 200 machines installed in the first year. Interest costs $40,000p.a. profit $100,000. Break-even after 80 machines sold.Financials:Total Current Assets: $313,00
7Total Current Non-Assets: $308,500Total Liabilities: $176,500Total Owners Equity: $445,000Trend sales: Increasing constantly.Due diligence: Fully provided.TASK 4PART 2Task 1 a) A draft strategic plan A Strategic objectives for MacVille’s import /export business Patricia Mees gave a presentation concerning the objectives that would form part of the strategic plan for the next five years. Objective 1- To sell and service MacVille espresso coffee machines in every state of Australia. This was a Top priority that would involve the acceptance of Java Estates tender. This was an important alliance and one that should be managed at the highest level. With the Sydney warehouse now established, it was important to look for other warehouse opportunities in high volume states. The other states could be managed with an agent’s network and by outsourcing the maintenance.Objective 2-to increase profit marginse by 5% from our 2010 benchmark in the next five years. This should occur naturally, with increased sales allowing for better price negotiations with suppliers, and getting all departments to make optimum use of their staff.Objective 3; To establish the MacVille brand recognition in key markets in the next five years, mostly via a new technologies but also co-branding with our strategic partner. This isalso a high priority if the successful rollout is to be achieved.Objective 4-To reduce our waste and energy use by 10% from our 2010 benchmark within the next five years. Education programs and incentive rewards for innovations in this area should see the organization achieve its objectives.
8Strategies that could be used to meet the objectives in the future. Objective 1-To sell and service MacVille espresso coffee machines in every state ofAustralia in the next five years. All states have a Macville machine, apart from the NorthernTerritory where it took some time to get an agent, and an experienced espresso machinerepairer has not yet been found to take on the job due to the attractiveness of mining industrypay rates.