DEVELOP

& IMPLEMENT
STRATEGIC PLAN

DEVELOP & IMPLEMENT

STRATEGIC PLAN
Introduction:
The purpose of strategic or long-range planning is to assist the Association in
establishing priorities and to better serve the needs of the membership. A strategic
plan must be flexible and practical and yet serve as a guide to implementing
programs, evaluating how these programs are doing, and making adjustments
when necessary.
A strategic plan must reflect the thoughts, feelings, ideas, and wants of the
developers and mold them along with the Association's purpose, mission, and
regulations into an integrated document. The development of a plan requires much
probing, discussion, and examination of the views of the leaders who are
responsible for the plan's preparation. However, more often than not, the
development of the plan is less complicated than is the implementation.
Implementation, in essence, pulls a plan apart and diffuses it throughout an
organization. Every unit within the organization which is involved must then
accept the plan, agree to its direction, and implement specific actions. In order to
effectively and efficiently implement a plan, all individuals involved in its
implementation must function as a whole or the plan is destined for failure.

Part A
A DEFINITION OF STRATEGIC PLANNING
Strategic planning is a tool for organizing the present on the basis
of the projections of the desired future. That is, a strategic plan is
a road map to lead an organization from where it is now to where
it would like to be in five or ten years.
It is necessary to have a strategic plan for your chapter or
division. In order to develop a comprehensive plan for your
chapter or division which would include both long range and
strategic elements, we suggest the methods and mechanisms
outlined.
The plan must be:
Simple
Written
Clear
Based on the real current situation
- Have enough time allowed to give it a time to settle. It should
not be rushed. Rushing the plan will cause problems.
BENEFITS AND PITFALLS IN STRATEGIC PLANNING
Since the beginning of Special Libraries Association in 1909, it has
experienced phenomenal growth in membership and influence. In
the past ten years, growth has been particularly significant.
Changes in the fields of special librarianship and information
science have been dramatic and fundamental to the very way of
doing business. The advent of on line systems and the computer
age rapidly changed the way librarians/information managers
operate.
The Association recognizes that it can no longer merely react to
issues as they emerge. If it is to continue as a leader in improving
the profession, it must begin to anticipate future change rather
than merely react to change. The Association as well as each
chapter and division needs
to consider this longterm future. Drawing on the resources it
has both human and financial, it needs to continue to grow.

These resources are limited, and careful thought must be given to

the allocation of these resources. To meet obligations to the
profession, the public, and the
membership, it is essential that the Association and its units use
these resources in the most efficient manner by determining
priority areas on which to concentrate. This means the
identification of goals, pursuing those goals, and achieving them.
Strategic planning will help build continuity in the Association's
programs, particularly in the areas of continuing education and
publications. The Association has the gift of a great deal of
diversity among the membership. The Association draws its
strength from this diversity but at the same time, that diversity
lessens the Association's impact in key areas because of a lack of
cohesive focus by the organization. Therefore, it is necessary for
each chapter and division to have a plan that is compatible with
the overall strategic plan of SLA thus concentrating its efforts and
greatly increasing its impact.
There are several pitfalls associated with strategic planning. First,
the plan may not turn out as well as expected because of
changes in the environment in which the plan is supposed to
operate. Also, strategic planning is worthless in getting an
organization out of a major crisis. A crisis is a current problem not
solved by a strategic plan. And, if the planning process itself is
weak, the resulting plan may be weak and not satisfactory to the
organization. George Steinerin his Strategic Planning (see Sources
of Information) lists 50 major common pitfalls in starting,doing,
and using strategic planning.
Objective of report:
Review organizations vision and mission by reviewing case study
and describe organization planning process by providing inputs
wherever possible.
Scope of report:
Vision and mission of organization, current approaches to obtain
the objectives of organisation and organisational values.

Existing Vision and Mission

Vision
To provide customer best caf going experience
Mission
To open additional caf in NSW and Queensland and to become
national brand and be recognised as a integral part of hospitality
industry.

Current Approaches
> Engaging customer and customer research
> Developing and improving product and services

Revised vision and mission

Vision
To be more innovative and find new ways to increase efficiency of
processes and effectiveness of customer solutions
Mission
To embrace strategic alliance and seek out new partnerships
Organisational values
> To identify community needs.
> Participate in local community.
> Donate certain % profit to community.
Notes on meeting with Stakeholder
> Development of new areas which were not recognised at the
time of previous planning.

> To be innovative and motivate self-directing teams.

> To participate in community.
> Develop strategic alliance and partnerships.

PART B ENVIRONMENTAL ANALYSIS

PEST ANALYSIS:
It consists of analysis of political, economic, social and
technological environment of organisation.
Political
> Tariff on import of espresso machines will be removed.
> Strong possibility of introduction to impose carbon tax on all
energy intensive products used for commercial use.
Economic
> Strengthen of Australian dollar against trading partners in
coming years.
Social
> Lifestyle trend to eat out is becoming more affluent and
frequent.
> Steady population growth rate.
Technological

> New espresso machines are developed which use 30% less
energy.
> Home market for espresso machines is experiencing high
growth.
Value chain analysis
Inbound logistic
Lack of experience personnel for custom and importation.
Operations:
State of art Management information system provides for internal
control and strategic planning.

Outbound logistic:
Contracted Delivery Company is not able to deliver machines on
time due to fast expansion plans.
Sales:
Marketing and sales department are doing quite well and are
strong points for profit well massage can be expanded using
internet.
Service:
Macville enjoys good reputation for after sales services to
customers.

Swot Analysis
> Good reputation after sale
> Poor performance of Services contracted delivery

> Excellent advertising and company marketing mix.

> Lack of experience
> State of art Management personnel to deal with information
system import and custom.

Opportunities
> Use of internet for
> Raising interest rates could advertisement. decrease disposable
income
> Withdraw of competitor
> Nufix.inc a globalfrom new Sydney market corporation entering
in
> Increase in population espresso machines and growth rate bean
market.
> Bean ex coffee supplier is entering in espresso machine market.
Existing / potential competitor
1. Nufix inc.
It is shifting from instant coffee to espresso machine and coffee
Strengths
Marketing, Finance and Human resources
Weakness
Difficulty in adopting to need of niche market

2. Bean ex
Coffee bean trader is going to import expresso machine for their
wholesaler clients.
Strengths
Easy entry to market
Weakness
No established service department to provide after sale services
to wholesale clients.
Potential alliances
As required in tenders
1. Business name: Home espresso trades
Description of business (includes Vision of Macville)
To sell espresso machines to home customers in Sydney
Description of joint business:
Shared space in four trade fairs.
Strengths
Home consumer market compliment commercial consumer
market.

Weakness
Alliance also focuses on nonehospitality sector.
Risk
> Partner not fulfilling financial commitments
> Partner access to Macville trade secrets> Association with nonindustry partner may impact negatively on customer base

2. Business name: Ambrosia coffee roast

Description of business: Sell all grades of coffee beans.
Description of joint venture business: Share of outdoor advertising
cost at Caf outlets.
Strengths
Sharing of client base
Weakness
Product image is commodity based.
Risk
> Association with poor quality brand.
> Long term signage of alliance.
3. Business name: Java Estate
Description of business:
To sell quality Arabica coffee beans in all states of Australia.
Description ofjoint venture business: provides espresso machines
to clients at no charge.
Strengths
100% committed to hospitality and coffee bean market.
Weakness
Other coffee bean supplier may not recommend Mac villecoffee
machines with this strong alliance.
Risk
Concern over outstanding amount

PART C Strategic PLANING (PROJECT PLAN

BREIFING)
Organisation Objectives

1.To sell and service espresso machines in all states of Australia

by accepting java estate tender and to look for warehouse
opportunity in other high volume estates
2.To increase profit margin by 10% from benchmark set in 2010.
3.To establish Macville brand recognition in key markets in next
five years.
4.To reduce energy wastage by 1090 from benchmark set in 2010.
Organisation objectives and strategies to achieve
objectives
Objective
l.To sell and service espresso machines in all states of Australia by
accepting java estate tender and to look for warehouse
opportunity in other high volume estates
Strategies (In priority order)
a. Sign action and establish strategic alliance with Java estate.
> KPI P|an:To install 200 machines per annum.
b. Establish Macville warehouse.
> KPI Plan:To open warehouse in Melbourne after Sydney opens
forbusiness.
c. Set agents in other states and outsource maintenance
contracts.> KPI planzset agents in other states and outsource
maintenance contracts in South Australia.

Parties responsible
Project manager
Objective 2
To increase profit margin by 10% from benchmark set in 2010.
Strategies (In priority order)

a. instigate bulk buying negotiations to reduce prices of suppliers.

> KPI Plan 100% purchases by bulk load.
b. Operate all departments at optimum capacity and productivity.
> KPI plan wages to turnover ratio of 12.5%
Parties responsible
Purchasing manager
Operation manager
Objective3
To establish Macville brand recognition in key markets in next five
years
Strategies (In priority order)
a. Establish social and internet network marketing.
> KPI plan 1000 clicks on the website per day.
b.Join with java estatein cobranding cups and banners
> KPI p|an100% caf using our machines use our cups.
Objective4
To reduce energy wastage by 10% from benchmark set in 2010
Strategies (In priority order)
a. Set up innovation and reward program
> KPI plan 25 suggestions and 6 innovations introduced every
year to reduce wastage.
b. Develop and implement energy use awareness program.
> KPI plan kW per person use to drop by 10 kw
Parties responsible
Research and development manager
Human resource manager

Part D Reviewing implementation (Report

writing)
Objective of report
To prepare are a report describing the implementation of strategic
planning as measured by achievement of KPI S, milestone and
overall effectiveness of organisation.
Scope of report
To measure performance of organisation against KPI and
Milestones and provide recommendations and refinements for
implementation process
KPI Progress
KPI Actual To install 200 machines
> Only 198 machines are per annum installed to open Melbourne
> Melbourne warehouse is warehouse still not open. To assign
agent and
> Still no service outsource maintenance contractors for Northern
contractor for Northern territory, South Australia, ACT, Western
Australia, Tasmania.
100% order by container load Wages to turn over ratio125%1000
clicks per day on assigned for other states like Western Austra|ia
are very expensive.All order was by 100% container load.13.8%
wages to turn over ratio achieved12000 clicks per day. SEO
website100% caf using Macville machine to use our cups25
suggestions and 6 new innovations to be introduced. To reduce
energy waste10kw per person not attractive.30 innovations and 8
new innovations introduced.12 kw energy consumption per
person dropped
Milestone Progress
1. Objective

Macville machines are installed in all states except in northern

territory because taking time to hire agents and maintenance
contractors.
2. Objective
Profit margins have only increased to 2% in two years. Some
agents and contractors are very costly.
3. Objective
50% of target market recognize brand and 855 had a positive
reaction.
4. Objectives
Reduction in energy wastage is 2% against 2010 set benchmark.

Overall progress
Organisation is performing well profit margins have already
increased by 2% in last two years as bulk buyings were instigated
at earlier stage due to initial increase in demand.Marketing
objectives set are already achieved using, social internet and
networking marketing strategies. However strategies are not
implemented properly in Northern Territory organisation is facing
difficulty in hiring agents and maintenance contractors.Energy
reduction strategy working well however it was implemented too
late which resulted reduction in energy to only 12 kw per person.
Improvements
Increase pay rate in Northern territory to attract experienced
agents and machine maintenance contractor.
To increase profit margin warehouse should be open at Melbourne
at earliest because it is running at expensive agency model.

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