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BSBMGT616 Develop and implement strategic plans v1.2 150217Page 11of 47
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: Risks– 1.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 12of 47
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.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.BSBMGT616 Develop and implement strategic plans v1.2 150217Page 14of 47
Venture: Trend analysis – 2013 – $3.2m2014 – $3.0m2015 – $2.9m2016 – $3.0m2017 – $3.3mAble 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 EstateDescription of business(include vision, etc.) – To sell quality Arabica roasted coffee beans to all states