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Assignment on Analyse the internal and external environment- Analysis of MacVille in selling of home espresso machines

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Analyse the internal and external environment

PEST Analysis

The PEST Analysis of MacVille has been discussed below in a detailed manner:

Political Factors The Australian government has introduced the free trade policy that helps the company to function in an authentic manner. However, the government has imposed taxes on the businesses and this could affect the business in a huge manner (Ho, 2014). The combination of these factors has an impact on the overall business operation of the company.

 

Economic Factors

The Australian economy has grown a bit too much over the past few years. The reason is the increase in the resources required for the company that has helped the economy of Australia to grow. The Australian dollar has become strong over the other trading partners and this is major concern for the company.

 

Social Factors

Since the Australian population is ageing and becoming more affluent, there is a tendency amongst the people of eating out more. As a result, the business of the company can grow easily and they have higher chances to meet with their mission and vision.

 

Technological Factors

The development of new espresso coffee machines are being done that consumes 30% less energy and it has a more effective heat exchanger (Gupta, 2013). With the development of such technologies, the company can expect their business to expand on a national level.

 

SWOT Analysis

The SWOT Analysis of MacVille has been done below in a detailed manner:

Strengths

The operation of the company is considered an area of strength, as it has helped the accounting and finance department to function in a proper and effective manner (Smyth, Gable & Pervan, 2016). Besides this, the company has strong marketing and sales department, as compared The operation of the company is considered an area of strength, as it has helped the accounting and finance department to function in a proper and effective manner (Smyth, Gable & Pervan, 2016). Besides this, the company has strong marketing and sales department, as compared to other companies.

Weaknesses

The company faces problem with their inbound logistics, as they do not have the required skilled workforce to handle this. Besides this, the HR department of the company also fails to provide suitable solutions to the issues faced by the company.  

Opportunities

An opportunity for the company is in the outbound logistics department. This department could be improved by training the employees to be efficient with the use of outbound logistics. The company should look to deliver their goods to the customers on time, as it will help them to develop their business.

Threats

In terms of their business operation, the company faces some serious threats from the competitors that are operating in the same market (Chen et al., 2015). They have to ensure that they are working in such a manner that they are able to compete in the market and continue their business in a proper manner.

 

Identify and describe existing and potential competitors/allies, then summarise the strengths and weaknesses of each.

There are three main competitors of MacVille in the market. They are Home Espresso Traders, Ambrosia Coffee Roast and Java Estate.

Home Espresso Traders:

The company mainly specializes in selling of home espresso machines to the home market and it operates from Sydney. Besides this, the company also sells some digital home entertainment products. 

Strengths:

The company aims to cover the entire consumer market for espresso machines and covers the commercial market alongside this. This allows the company to make a wide variety of offers to the clients. 

Weaknesses:

The company has a venture partner that does not entirely focuses on the hospitality industry. This might have an impact on the business operation.

Ambrosia Coffee Roast:

The company sells coffee beans of different grades to various supermarkets as well as hospitality outlets all over Australia. 

Strengths:

The company is completely committed to selling of different grades of coffee beans all over Australia. Besides this, the company also shares some amount of their client base. 

Weaknesses:

The company faces issues with sharing of information and they do not cite their intellectual property. They do not focus on the quality of their products.

Java Estate:

The company mainly aims to sell Arabica roasted coffee beans to all the states of Australia. 

Strengths:

The company has Australia-wide partners. Moreover, they are 100% committed to selling of coffee beans to the Australian market and their focus is on the hospitality industry. 

Weaknesses:

The other companies might not recommend MacVille’s machine, as this company does.

Develop a separate summary statement for potential allies for a cooperative venture that describes their alignment with MacVille’s vision, mission, values and attributes, as identified on the tender document.

Summary statement for Home Espresso Traders:

Home Espresso Traders have shared for trade shows with the company in a span of one year. MacVille might face certain risks in terms of their venture partners. The venture partner is not fulfilling their financial commitment. Besides this, the partner might also have access to the company’s trade secrets.

Summary statement for Ambrosia Coffee Roast:

This venture shares with MacVille the prices of outdoor advertisements and helps them to use barriers and umbrellas. There is high risk of poor brand association with this venture, as a result, MacVille might suffer in terms of their business operation. 

Summary statement for Java Estate:

This venture provides the espresso machines of the company to the clients without any charge. The venture also pays the price of installation and delivery for MacVille’s espresso machine. As a result, it helps the business of the company to grow in a proper manner.

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