Risk Management For MacVille Café: Expansion To Toowoomba

Fair Value in Accounting and Economics

1. Scope:

At present, I am working as Assistant manager of their flag ship store in Queen Street, Brisbane MacVille Pty. Ltd. P. Kinski given me the responsibility to assess the risk associated with the acquisition of the new café that is Hurley’s Café in Toowoomba. For that I went to Toowoomba and met John and Ron their and discussed the problems relating to Hurley’s and found the ways to resolve those issues.

1. Goals:

As a member of the finance, audit and risk management (FARM) committee, aim to follow the MacVille Risk Management Policy. To satisfy MacVille aims, to deliver our valued customer the very best café- going experience.

Stakeholder	Internal/external	Role in process Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Stake in process
MacVille Pty. Ltd. As Organisation	Internal	1. Private limited company in Australian beverage market 2. Identify, evaluate, control and manage risks	Company may lose its brand name
Paula Kinski	Internal	CEO of MacVille ‘s cafes in Queensland 1. To assign a task of managing risk to assistant  manager 2. To have a feedback report from the manager.	Re- branding of Hurley’s cafe and current chain of MacVille’s cafes in Queensland may suffer her job loss
James Mansfield	Internal	Current senior supervisor, who will assist manager in all his queries	He was engaged to supervise the store operations and control the workings.
Directors	Internal	1. Determining what type of risk is acceptable and which are not. 2. Setting standards and expectations of staff with respect to conduct. 3. Approving major decisions affecting MacVille’s risk profile or exposure.	Annual review of MacVille’s approach to risk management and approval of changes or improvements to key elements of its processes and procedures.
Senior Management Team and Stores Managers	Internal	Identify and evaluate areas of significant risks potentially faced by MacVille for consideration by the directors.	Review and update the Risk Management Strategy.

1. Analysis:

To identify thoroughly risks and examining the external environment surrounding an organisation, I have included the PEST Political, Economic, Social and Technological factors affecting the business. As well as I did the SWOT analysis that is identifying the Strengths, Weakness, Opportunity and Threats attached with this takeover:

Political: proposed laws that may affect the organisation

Due to the Federal Government legislation about efficient water usage for industries, current by- law has fines of up to $50000 for excessive water breaches.

Economic:

Opportunities for opening more cafes in the surrounding shop centre like Wilson ton, Clifford gardens and K- Mart plaza

Social:

Toowoomba was a place for retirees, opportunity for population growing

Technological:

Due to Federal Government’s National Broadband network in Toowoomba, allow efficient and effective video streaming and teleconferencing.

Strengths:

Strengths are key elements that allow organisation advantage over its competitors.

Due to corner location, store is easily accessible for local customer and highly visible for tourists.

Weaknesses:

Weaknesses are the limitations faces by the business in achieving its objectives.

Due to long drive location, it’s quite difficult to attend weekly managers meeting at Brisbane as well as training sessions.

Opportunities:

Opportunities are the conditions of the environment in which the business operate which could benefit the organisation if acted upon.

More opportunities for opening more cafes in the surrounding shopping centres like Wilson ton Clifford gardens and K- mart plaza.

Threats:

Threats are barriers that prevent business from achieving its objectives.

Same staff members completed the cash register and often $4000 was kept on the premises overnight in the cash register, there was not always time to do the banking.

Research:

The strategic context in which MacVille will achieve its mission and vision is through both internal and external research. This may be in the form of:

Inflation Targeting as a Method to Control Inflation

Past records

Primary data collection techniques:

It includes interviews with current employees, current supervisor James. During site visit, I have an interview with focus group, site observation including questionnaire with customer.

Engaging with customer and customer research

Secondary data collection techniques:

It can be sourced from existing survey results, databases and statistical research organizations, published reports, case studies and published texts.

By sharing information weekly with FARM committee at head office concerning the marketing, finance and store management functions that for investigation.

1. James Mansfield

There is lack of internal controls in particular with handling cash, monitoring and recording the ins and outs of financial concerns of the store.

1. Ron Lanford

Ron Lanford gave some insights on external environment (by-laws, government legislation, economic, expansion options, competition, technology plans).

Key problems identified in the report were as follows:

Lack of internal control, particularly over cash handling, monitoring and recording.

Extract from MacVille NSW problems with acquiring and re-branding existing stores

The long drive from Toowoomba to Brisbane would make attending the weekly managers meeting difficult considering many meetings did not finish until into the evening after refreshments.

Summary:

Internal controls of MacVille Café in Toowoomba as well as the corporate governance arrangements have created policies related to risk management intended to:

1. Human Resource risk in MacVille

There is no specific person authorised for deliveries, there is high possibility of theft of goods.

1. Financial operations risk

The same person doing the cash register, balancing, writing bank deposit form, and do the banking as well which has a high risk of cash theft.

1. WHS- Work Health Safety

The manager has a potential chance to be involved in accident due to very long hours of driving in going Toowoomba, it will require total of 4 hours travel in going back and forth.

1. Supply chain:

Chance of losing customer because pastry products delivered by the supplier are always delivered late and so products are not sold on time.

1. Overall compliance issues

High possibility of non- compliance of Governments law concerning efficient water usage that will cost $50000 fines for excessive water beaches. Café have the existing water usage that will cost $50000 fines for excessive water breaches. Café have the existing water use 41500 L a week.

MEETING MINUTES

Meeting/Project Name:	MacVille cafés expansion to Toowoomba
Date of meeting:	7/08/2013	Start time:	10am
Location:	Brisbane	End Time	2pm
Stakeholder:	XXXXXXXX	Minutes taker:	xxxxxxxxx

Meeting Objective(s):

To mitigate the risk involved.

To make an action plan for the risk evaluated.

 The expansion of business

Present	Apologies
Paula Kinski James Mansfield	Present Present		– –
Directors	Present		–
Managers	Present		–

Agenda, Decisions, Issues

Topic/ Discussion notes	Discussion led by
1. Scope of the study To reduce the risk involved in the expansion	Directors
2. Stakeholders of the Macville café shop, their role and stake in process They need to know about the expansion of the business the risks involved in these expansions.	Management Team
3. The research made during the site visit and the source of primary and secondary information The manger personally visited the store and found the risk areas and suggested out the ways to mitigate the action plan	Manager

1. Action Items

Action                                                                                                  Responsible          Due date                          

1. Make a report that scope of study is done	Manager	Within 14 days of meeting
2. Communicate to all stakeholders	Secretary	Within 21 days of meeting
3. Make a lay out report that the research is already done and the result of the risk review.	Manager	14/09/2013
Management	14/09/2013

Next Meeting

Date:	14/09/2013	Time:	10:00 am	Location:	Brisbane
Objective(s): To discuss about the action plan that has been accomplished: The Business risk can be mitigated by changing the cash handling system and by daily banking. By law compliance risk can be mitigated by ensuring efficient water usage and installation of water treatment plant. Manager’s Travel Risk can be mitigated by scheduling the meetings in such a way that they will be ended by 3pm.

Summary Notes

The identified risks from the case study presented are the following:

• Banking Risk: Theft of cash left on the premises and Day to day handling of cash.
• Manager’s Travel Risk: Physical injury due to accident as the meetings continue after 3 PM and it is risky for managers to travel after 3pm.  
• By-law Compliance Risk: Over usage of water and installation of water treatment plant.
• Employees WHS: The manager has a potential chance to be involved in accident due to very long hours of driving in going Toowoomba.

Target audience: Who do we want to inform?	Key message: What do we want to tell them?	Communication methods: How are we going to tell them?	Who is responsible for doing it?	Deadline: By when does This need to happen?	Date completed	Feedback suggested by respective stakeholders
The Board of Directors, Stakeholders, Mangers	To determine acceptability for types of risk involves and their solutions.	Letter to CEO to represent risk report in Board meeting	1. CEO 2. Senior management team	1. 07/08/2013 2. 07/08/2013	1.14/09/2013 2.14/09/2013	Agree to implement new risk management policies

The above table outlines a plan for communicating the key message about my risk management policy.

1. The expansion of business.
2. The assessment of the risk involved in the takeover
3. Action plans to mitigate those risk involved in the takeover.
4. Persons responsible to access the implementation of risk management plan.