Description of joint venture– Java Estate provides MacVille espresso machines to client for no-charge. Java Estate pays MacVille cost price for the delivery and installation of the machine, then paysthe remainder of the purchase price on a 12 month repayment program. Venture: Strengths and weaknesses– Australia wide partner – 100% committed to hospitality and coffee bean market. Other coffee bean suppliers may not recommend MacVille machines with this strong strategic alliance.
Venture: Risks– Concern over the amount of money outstanding.Venture: Cost-benefit analysis– Potentially 200 machines installed in the first year. Interest costs $40,000 p.a. profit $100,000. Break-even after 80 machines sold.Venture: Financials – Venture: Trend analysis – 2007 – $8.2m2008 – $9.1m2009 – $12.2m2010 – $14.6m2011 – $16.3m
Able 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 Task 2 Instructions You are now required to review the competitors/allies to Mac Ville, as described in the case study andrequired to complete for your organization: 1.PEST analysis (including a review of legislation impacting on MacVille).2.SWOT analysis (including an evaluation of the value-chain).3.You are also required to review competitors/allies to MacVille, as described in the case study, and: Identify and describe existing and potential competitors/allies, then summarise the strengths and weaknesses of each.Develop a separate summary statement for each potential ally for a co-operative venture that describes their alignment with MacVille’s vision, mission, values and attributes, as identified on the tender document.
Answer - Task 2 PEST ANALYSIS - Factors that affect Mac Ville’s CompanyPOLITICAL: (Laws, regulations, codes, taxes, government, etc.)Tariffs on imported goods, including espresso coffee machines, will be removed in line with the Government’s free trade policy.Strong possibility of a carbon tax being introduced on all energy intensive products used in a commercial enterprise.ECONOMIC: (Trends, Market, Interest and exchanges rates, etc.)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.SOCIAL: (Demographics, advertising, consumer trends, brand, etc.)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.