Task: 3

PEST analysis of Mackville

Political factor Economic factor

 Tariff relived on Imported goods  Australian dollars go up in next
by Government’s free trade few years
policy  Prediction of booming economy
 Possibilities of introducing as a result of resource boom.
Carbon tax
 Popltical instability in a foreign
partner country.

Social factor Technological factor

 Population growth  New expresso machine has been
 Lifestyle trend is increasing developed that uses less energy
 Growth in home consumer  Consumer market has been raised.
market

SWOT analysis of Mackville

Strengths Weaknesses
Good reputation after sales services Poor performance of contracted deliver company.
Excellent advertising and marketing mix. Lack of experience personnel to deal with import
State of art Management information system and custom.
Lack of solutions from human resources
management
Opportunities Threats
Use of internet for advertisement. Raising interest rates could decrease disposable
Withdraw of competitors from new Sydney market income.
Increase in population growth rate Raising AUS dollar might have long term effect on
tourisim.
Global competition in espresso market.
Bean ex and Nufix.inc is entering in espresso
market.

Potential competitors/Allies and their strengths and weaknesses

Competitors Strengths Weaknesses

Home expresso Trader Covers consumer Only sell consumer
market for espresso home espresso
machines to make a machines to home

Java Estate
Ambrosia coffee Roast
full range to clients market in Sydney
Company’s strategic
partner is not focused
on hospitality industry
Australia wide Other coffee bean
partner supplier may not
Fully committed to recommend MacVille
hospitality and coffee coffee machines with
bean market this strong alliances.
Sharing of client base Product image is
Sell products widely commodity based not
to supermarket and qualitative.
hospitality sectors.

Summary statement of each competitors/allies

Home expresso Trader:

 You need to discuss the Vision, Mission and Values of Home expresso trader and
Identify whether it matches with the vision of mackcille of not.
 You need to analyses total market share, Financial statement and sales of the
company.
Main vision of this company is “to sell customer home espresso machines to home
market, only in Sydney, and incorporating other digital home entertainment
products.”
Home espresso Trader covers all the consumer market for espresso machines to
make full range to clients. This company also incorporates other digital home
entertainment products and shared space in four trade shows per year. Each
shows costs $2500 each and sells worth $20000 machines while its total profit of
$10000 incur for a year and a breakeven after two shows.

Ambrosia Coffee Roast:

Vision: “to sell all grades of coffee beans to supermarkets and hospitality outlets all over
Australia.”

Java Estate:

Meeting notes:

Recommendation for strategic alliances