BSBMGT61 Develop Organizational Strategies
Assessment task 2
1) PEST analysis
Political factors of MacVille’s espresso machines
The determining factors that are influenced by the government towards the economy of the Espresso machines. For example, the government can impose a new duty and tax on the company by which there can be a change in the entire structure for generating revenues. The fiscal policy and trade tariffs, in the political factors the tax policies are included, in the fiscal year the government can levy around and the environment of the business can be affected to the great extent.
Economic factors of MacVille’s espresso machines
These are the economic performance determinant factors that impact the company directly and have effects for the long term. For example, the highest inflation rate in the economy will impact the price of MacVille’s espresso machines services and products. The purchasing power of the consumer and change in models of demand and supply of the economy. The economic growth patterns, foreign exchange rates, interest rates, and inflation rates are included in the Economic factors (Sammut-Bonnici & Galea.,2014).
Social factors of MacVille’s espresso machines
The scrutinizing of markets social environment factors, and determining the gauge like population analytics, demographics, cultural trends, etc. the western countries buying trends are its example like in the US there is the highest demand on the holiday seasons.
Technological factors of MacVille’s espresso machines
There are external and internal sides. The environment of the business is affected by some laws in different countries and some policies are maintained by the company for itself. Technological awareness, development and research, and automation are possessed by the market.
| Political Factors | Politically motivated and political factors can affect the organization. |
| Economic factors | On the success, there can be impact by the economic forces. |
| Social factors | Social trends, behaviors, and attitudes can impact the target market of the organization. |
| Technological factors | There can be the effect of technology by marketing, distributing, and making your services and products (Ho, 2014). |
2) SWOT Analysis
Strengths
Strengths are positive attributes and internal of the company. This consists of the things that are in the company’s control. The strength describes the competitors and the advantages are discussed in the organization for the organization. The motivation can be in the manufacturing process, accessing materials and staff of the organization. The important part of the organization is your strengths.
Weakness
Weakness is the inherent feature of the organization, the main focus should be on procedures, systems, resources, and people of the organization. what can be improved in the company should be noticed and what type of practices can be avoided.
Opportunities
For happening something positive, the opportunities are the chances for the openings, but the claiming should be done by yourself. It can arise from the outside of the organization, and ensure future happenings. Good opportunities can be taken immediately for the growth of the organization.
Threats
Threats are the negative effect on the business from external sources, like market requirements change, problems of supply-chain, or the recruit shortage. Anticipating threats are vital and action can be taken against them before they increase. There can be obstacles in the product selling in the market (GURL, 2017).
| Strengths
1) Strong management – There is disciplined work by the team with expertise in the business area. 2) Uniqueness – We sold high-quality machines with automatic functions in them. 3) Strong sales and marketing – Proven marketing promotion and communication mix, with social marketing and the introduction is done by the MacVilles in the past year. |
Weakness
1) Lack of reputation – In the business of coffee beans we haven’t established a reputation yet. 2) Lack of capital – All funds for the startup came from investors and loans. 3) no complimentary service – the complimentary and the reward should be provided to the customers, but by the MacVille these services are not provided.
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| Opportunities
1) Working with popular cafeterias – It will increase the opportunity of making profit and selling machines. 2) Growth area –$10,000 per year profit. 3) Population growth – for selling machines there is a good opportunity for the MacVille because if there will be an increment in the growth thenthe demand for the machines will also increase. |
Threats
1) Being unprepared – initial poor product or services quality can discourage the customer from coming back. 2) Competition – There can be competitive with the same business regarding the company’s turnover. 3) Investment in internet marketing – More customers are attracted to the product online(Benzaghta, et al.,2021). |
3) Allies and existing competitors
Competitors
1) The complementary services provided by the other companies – On the wholesale rate the other companies are providing the coffee beans and coffee machines as and complimentary service.
2) On internet marketing the investment is increasing by the companies –there is the potential by other companies to sell more products and to reach the customers.
3) Companies with the department of efficient logic – The system of efficient logistic with the companies help in increasing profits and the selling item.
4) Energy efficient distributors of coffee machines – There will be a direct effect on the sales of Macville’s when the sales are more than 30% by other companies.
Allies
1) Alliance partners – They will provide help in business growth.
2) General public – The outside eating trend will help in selling machines and coffee.
3) Companies of logistic management – The logistics can be outsourced by the MacVilles’s towards the efficient manner by the external company.
4) Domestic and commercial customers – For buying machines the domestic and the commercial customers are best for buying products (Bălău, 2015).
Allies and potential competitors
Competitors
1) Manufacturers of bottled coffee – If they will provide the coffee at a cheaper rate, it will be considered as a treat.
2) Small carbon footprint companies – The carbon tax will be paid less, and on the lower prices, they can [provide the machines.
3) Domestic seller of coffee machines – Coffee machines that are more compact and good for home use.
4) BeanEx – Big supplier of coffee beans by whom the espresso machines are also sold to the customers. The conversation was done about selling the machines as a wholesaler.
Allies
1) Home Espresso traders – In the home market the espresso machines are sold and other products of entertainment are sold in Sydney.
| Strengths
1) Space is shared in the trade shows every year. 2) The consumer market was covered for the espresso machines and for making the offer of the full range to the customers. |
Weakness
1) accessing partners to the trade secrets of MacVille’s. 2) Non-industry partners association can hurt the customer base of MacVille. 3) The financial commitment is not fulfilled by the partners of the company. |
2) Ambrosia coffee roast – all grade coffee beans are sold in the hospitality industries and supermarkets in Australia.
| Strengths
1) There can be more profit in this business. 2) there is the possibility of outdoor advertising costs for the restaurants and cafes. 3) From the industry of coffee beans, the suppliers are committed, by client base sharing.
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Weakness
1) no reliability. 2) Not significant in the sales and by that there is no growth. 3) No financial venture. 4) Signage long-term commitment 5) Risk in associating with poor brands.
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3) Java Estate –Arabica roasted coffee beans are sold with quality in Australia.
| Strengths
1) Sales trend inclining. 2) Continuous and ongoing cash flow. 3) Fewer liabilities. 4) Wide partners in Australia.
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Weakness
1) Outstanding money amount concerning (Bălău, 2015). |
4)Potential allies and a statement of their alignment with organizational values
| 1) There is the development of new espresso machines and for running that machines energy is used less than 30%.
2) In trade there were planned changes on the imported goods tariffs, and it is removed by the free trade policy of the government. 3) Consumer market development for the espresso machines that are provided to the customer and there is the high growth experience. 4) Needs identifying and providing community support. 5) Comply and practice with the standard requirement of WHS. 6) Continuous development of strategies and the business process. 7) Prediction of higher growth in an economy, and it will be a resource boom. 8) Carbon tax possibility and introduced the intensive product energy used by the commercial enterprise. Tender requirements 1) Branding and reputation – There should be a good reputation of the potential allies in the marketplace. 2) Potential growth – The evidence should be provided of the potential growth. 3) Reliability – The partners of the company should be reliable. 4) Diligence materials – Submission of diligence materials that are due and should be considered. 5) Strong financial background – The financial background of the company should be strong (Bourne& Jenkins.,2013). |
5) Summary notes
| The presentation of the SWOT and PEST analysis is done on the based scenario. Who is the final winner?
After considering the tenders that are submitted by the companies, the best candidate is Java estate, and the decision is made for the following reasons: 1) From 3 candidates the best analysis is done of the cost-benefit. 2) There is a wide market in Australia. 3) There is a good alignment of MacVille’s goal with the JV methods. 4) Complies with the 5 main requirements of the tender.
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References
Bălău, M. (2015). The Influence of Market Context on Business Strategy, Competitor Imitation and Operational Effectiveness. Acta Universitatis Danubius. Œconomica, 11(4), 33-40.
Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 55-73.
Bourne, H., & Jenkins, M. (2013). Organizational values: A dynamic perspective. Organization studies, 34(4), 495-514.
GURL, E. (2017). SWOT analysis: A theoretical review.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), 6478-6492.
Sammut-Bonnici, T., & Galea, D. (2014). PEST analysis.