Description of joint venture Shared space in four trade shows per year Venture

Description of joint venture shared space in four

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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. © 2015 Innovation and Business Industry Skills Council Ltd / Modified 08May16 1 st edition version: 2 Page 7 of 15
Assessment Task 2 BSBMGT616 Develop and implement strategic plans Venture: Financials – © 2015 Innovation and Business Industry Skills Council Ltd / Modified 08May16 1 st edition version: 2 Page 8 of 15
Assessment Task 2 BSBMGT616 Develop and implement strategic plans Venture: Trend analysis – Sales 2007 – $1.0m 2008 – $1.3m 2009 – $1.5m 2010 – $1.6m 2011 – $1.6m Able to provide access to due diligence 8 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 – Strength: Supplier is committed to the coffee bean industry, with some sharing of the client base. Weaknesses: Has concerns with sharing information, citing/ mentioning 8 Due diligence - Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care. It can be a legal obligation, but the term will more commonly apply to voluntary investigations. © 2015 Innovation and Business Industry Skills Council Ltd / Modified 08May16 1 st edition version: 2 Page 9 of 15
Assessment Task 2 BSBMGT616 Develop and implement strategic plans intellectual property 9 . Product image is not quality but more commodity 10 -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.

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