Risk Analysis and Action Plan
Chapter One
Preamble of the Study
Macville Pvt Ltd has been able to earn a competitive advantage in the beverage market of Australia by tailoring their absolute strategy to construct a chain of cafes across The Central Business District (CBD) of Brisbane, Queensland towards existence. Moreover, the Board of Directors has expressed a desire to expand their scope of activities by introducing re-branding of their prevalent Hurley’s cafe in Toowoomba. As it is imperative to support their expanded pursuits with a prudent risk management strategy, the Store Assistant Manager and other responsible authorities have been able to discern certain (four to be specific as per the given scenario) potential sources of risks that may be taken into consideration.
CHAPTER TWO
LITERATURE REVIEW
The management is going to set up policy and procedure to guide staff role. Also they will provide the information to all staff. And if there is any breakdown into the policy they will go to investigate. The management is going to help the staff to reduce the wastage in this way the will be going to have more savings Install water tank and training staff to reduce water waste. Then they focus on Pastry delivery they decide to get the delivery after the morning rush. Then they discussed the large percentage of customers who are retries because they can easily access to buses and the stores central location. The more important the banking was not done properly and often $4,000 was kept on the premises overnight in the case register and there was no safe. So they decide to investigate all these factors. Some people were taking case from the register and nobody even keep the records of it. In that way they are going to investigate all these problems and try to increase of Sales Promotions – by encouraging the staff to get involved with these main goal and objective and the senior manager in the risk management procedure is identification of the effectiveness of the current risk management procedure. If there is any problem in the current risk management strategy is identified by them then it is manger responsibility to inform advice board members and they have to apply some strategy by which this problem can be resolved.
Internal and external stakeholders and their role in the risk management process:
There are several internal stakeholders of the cafe such as supplier, customers and employees and the external stakeholders of the cafe are government and many more.
Strength:
- The cafe has planned to open their store in the corner of two streets that can provide them the effective accessibility of the local customers
- One of the staff of the cafe has developed a popular rice wraps that were very much healthy and tasty. It is recognising that not even any single café in this location developed this kind of offer yet.
Weaknesses:
- Lack of concentration on the written policies and processes because all of their policies and processes
- There is no such established process to deal with the injuries that could be happened in the workplace.
- Anyone can easily access computer password
- They don’t have any record about finance
- They waste so much water
- They always do the till in the morning so they increase related to cash
Opportunities:
- The Toowoomba is becoming a place of the retirees and the population of the place is increasing so new business opportunities can be generated.
- The government of Toowoomba from the next month is going to allow more expansions in the footpath dining and allow putting more tables and chairs outside of their premises.
Threats:
- Large international chain of the coffee shop is making enquiries on the Toowoomba so they can open their new branches on the Toowoomba CBD.
- Braches of water usage can create a huge amount of fine on them.
Methods of the research that is utilised in the SWOT and PEST analysis:
There are many methods used to conduct SWOT and PEST analysis research. The risk management framework of the Toowoomba store contains a number of the elements that helped the manger to facilitate effective as well as efficient operations. Along with that, it also helped to generate quick response to different types of the financial, strategic, operation. These different types of elements are monthly report of the organisation, review report of the business planning and the budgeting, different types of organisational policies and the procedures, review of the risk management and the external audits. Therefore, it can be sad that the main source from which the information regarding the SWOT and PEST is conducted is different types of the secondary documents analysis of which can provide an effective scenario regarding the strategic position of the organisation. However, the strategic position of the Toowoomba store can be identified and analysed by different types of survey on the employees as well as the regular customer of the Toowoomba cafe.
Completion of the analysis by summarising the scenario and providing a list of risks:
The cafe is situated in the corner of two main street of the Toowoomba city that helps them to get huge customer base however, their two hours of delivery time of the bakery item to reach from the plant to the store make their strategy to provide fresh pastry items to the customers impossible. From the scenario, it is seen that the Hurley’s cafe is one of the family run business and in this business; maximum staffs are the family member so it can be said there can be a lack in the professionalism in the business. Moreover, another key problem is related to their water utilisation. They waste water unnecessarily, which invites huge amount of extra costs. They use more Water for their dishwater. This cafe does not have any effective and established process to deal with the workplace injury. This store have only one computer in their store that is not protected with the password so there are huge possibility that it is maintained by different staff who can access all of the information regarding employee details and the financial record of the organisation. Along with that, their store also has incomplete record of their wages and there are so many calculations that are handled by multiple employees so it increases the risks related to the disparity on the calculations. Due to their ineffective promotional strategies, they are facing lack of competitive advantage for their organisation. There are several organisations are opening their branch in Toowoomba, so there is huge possibility that the store have to face huge amount of competition from those organisation.
By analysing the scenario there are several risks that have been identified. Key risks related to the cafe are as follows:
- Lack of internal control on the employee, especially on handling the cash as well as recording and monitoring the flow of the cash in different business aspects
- Lack of concentration in the written policies as well as the procedures that can provide an effective guideline to all of the staff
- Lack of professionalism in handling the business because the business is currently run by the family and some of the employees are the family members as well
- Lack of concentration in the promotional strategies
- Failure to monitor the external environment of the business and lack of concentration in finding new business opportunities as well as the potential threats
- Failure to meet the compliance standards of the industrial relationship law, privacy law etc.
- By-law compliance risk because water conservation used by Toowoomba store it is very high which directly cause major issue to the company.
- Loss of brand recognition
- Farm committee member risk because they are commanding high power and take huge interest so it could be a potential risk to loss of expertise and large medical expenses which could be terrible to the company.
- Manager travel risk because manager have to travel from the Toowoomba to Brisbane which is so far to attain the weekly meeting as well as the training which need to be complete within six months’ time period.
- Stock outs risk because of delay in the delivery of its products which is caused by the long distance between the supplier and the branch.
CHAPTER THREE
Conclusion
In the light of the above report, an empirical awareness of risk management along with the certain analytical tools can be obtained along with the perception of how these governing parameters facilitate an enterprise to acquire competitive advantage to sustain in this globalized economy. In this current context of MacVille Pyt Ltd, the learner may earn an insight that why it is imperative to support a scope of expanding venture with its forecasted and prudent risk management strategies. This course of report have successfully identified the potential sources of risks during the execution of a desire to develop a chain of cafes across the core of Brisbane, Queensland and the corresponding index of severity and occurrences has been extensively addressed. Apart from that, this report serves the moral obligation to exhibit the modus operandi of the consecutive frameworks while assessing the risk-propensity of them. Any modification or desired leap in a business venture while consolidating the prevalent reputation needs to overcome the potential sources of legal, ethical and other intangible risks in order to acquire sustainability and bring every further agendas into existence.
References
- Manage risk BSBRSK501. (2015). East Melbourne VIC 3002: Innovation and Business Industry Skills Coiuncils Ltd.
- Manage Risk BSBRSK501, section 1, pp. 10-22
- Manage Risk BSBRSK501, section 2, pp. 39-45
- Manage Risk BSBRSK501, Appendix 1, 2.