Venture Strengths and weaknesses Strength covers the consumer market for

Venture strengths and weaknesses strength covers the

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Venture: Strengths and weaknesses – Strength: covers the consumer market for espresso machines (that compliments the commercial espresso machines) to make a full range offer to clients. Weakness: in 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 our customer base. 3. Partner access to MacVille’s trade secrets. Venture: Cost-benefit analysis – Costs of the shows is $2,500 each. Four shows costing $10,000, selling 10 machines per show at $500. Profit for each would see a profit of $10,000 for the year and a breakeven after two shows. Venture: Financials – BSBMGT616 Assessment 2 Version: v18.0 Page 7 of 12 Developed by: Nortwest Pty Ltd Approved by: AM Issued: March 2018 Review: March 2019
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Venture: Trend analysis – Sales 2007 – $1.0m 2008 – $1.3m 2009 – $1.5m 2010 – $1.6m 2011 – $1.6m BSBMGT616 Assessment 2 Version: v18.0 Page 8 of 12 Developed by: Nortwest Pty Ltd Approved by: AM Issued: March 2018 Review: March 2019
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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 Business name – Ambrosia Coffee Roast Description 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 – Supplier is committed to the coffee bean industry, with some sharing of the client base. Product image is not quality but more commodity-based. Venture: Risks – 1. Risks with poor brand association. 2. Long-term commitment in signage. Venture: Cost-benefit analysis – 50 cafes per year, at $200 per cafe cost for each partner. 50 machines sold at $500 profit is $15,000 profit return for the year. Break-even after 20 cafes. Venture: Financials – Not available. Venture: Trend analysis – BSBMGT616 Assessment 2 Version: v18.0 Page 9 of 12 Developed by: Nortwest Pty Ltd Approved by: AM Issued: March 2018 Review: March 2019
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2007 – $3.2m 2008 – $3.0m 2009 – $2.9m 2010 – $3.0m 2011 – $3.3m 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 Business name – Java Estate Description of business (include vision, etc) – To sell quality Arabica roasted coffee beans to all states of Australia.
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