gross profit

PART A: ESTABLISH RISK CONTEXT: Overall 20 Marks
Your CEO advised you to go through your current workplace vision, mission, goals and/or values and various departmental objectives and tactics. Review your observation €“

Name: S Bread
Location: Townhall Station
Mission:
€¢    Sell fresh bread and coffee
€¢    To create value and make a difference.

Vision:
€¢    To be the best bread shop in Sydney
€¢    More branches in Australia
€¢    Be a great place to work where staffs are inspired to be the best they can be.

Goals:
€¢    The gross profit reaches at 3000 AUD every day
€¢    Decrease the amount of the wasted bread every day, making good budget decision
€¢    Working hours shift satisfied for every staff

Operation department:
Objective:
High quality but low costs.
Tactics:
€¢    The kitchen has to compare different suppliers and choose the suitable supplier with the lowest cost
€¢    Select the high quality raw material in the lower price
€¢    Increase the work efficiency within the operating hours
€¢    Control the quality of single bread. E.g., weight, shape and ingredients
€¢    Make sure to meet machine and equipment requirement

Sales department:
Objective:
Increase the sales revenue.
Tactics:
€¢    Check and adjust the price quarterly
€¢    Pay attention to customer’s feedbacks, complaints and demands
€¢    Write down the volume sale in order to adjust the production

Marketing department:
Objective:
Make the shop well-known.
Tactics:
€¢    Post attractive ads on the internet
€¢    Colorful images board on the newspaper or street

Human Resource department:
Objective:
Choose the most efficient employees.
Tactics:
€¢    Select CVs carefully and looking for some related experience
€¢    Asking new employees to work one or half hour to have a try and have a look whether she is good to undertake the job
€¢    Make sure the new staff can use the equipment efficiently and friendly

Financial department:
Objective:
Make as much profit as possible.
Tactics:
€¢    Control the expense of each department and make detailed overhead plan
€¢    Making financial budget and operational budget quarterly
€¢    Cooperation with sales department to adjust the sales volume in order to minimize the waste amount
€¢    Compare the expense of gas and electricity and choose the effective one

1.1    Use ANY ONE of the above issues €“ review organizational processes, procedures and requirements for undertaking risk management. Identify whether your business has any relevant risk management plan to tackle this situation. Record your comments.

For sales department, the sales volume is different from everyday and even every hour, the manager in charge should adjust the production amount for each categories of bread every 3 hours and every day. Otherwise, wasted bread at the end of the day can be hundreds of thousands.

According to the changes of the raw material, the price of the single product should be adjusted, too.

As the retail store, the sales are directly communicate with customers, thus, sales manager can help the operational department to develop new products according to the market demands.

1.2 Examine Slide 18 for determining scope for your risk management process and justify your response with 1.1.

Every three hours, the experienced manager will look around and check which kind of bread is sold out and which is still too many, then they will talk to the kitchen hand in charge to reduce some while increase production of the popular one.

The single price adjusted due to the raw material price changed, For example, if the bananas’ price increase because of the bad weather condition, the price of banana cake should be increasing at least 20 cents each. After one month, the price should be changed the same with before.
If the customers asked why we only have curry chicken but no curry beef, the sales manager should also think about whether we need to do so. Do we have market? Do we need to buy beefs of can we use the same beef with beef onion buns? Which curry do we need to choose? In this circumstance, the new product is not the responsibility of operational department.

1.3 and 1.8 Identify internal/primary and external/secondary stakeholders and their issues. (Slide 22 €“ 26) Express how you communicate (organizational communication channel such as email, newsletter, intranet, social sites, LinkedIn, mobile etc) and discuss with those relevant parties about the risk management process? (Slide 27 €“ 30)
Internal     Preferred Communication Channel    External    Preferred Communication Channel
Staffs

Face to face
Mobile
Facebook
Banks    Newsletter
E-mail

Managers
Email
face to face.
Competitors
Social sites

Customers

Internet
Face to face
Advertisements

Media    Internet
Social sites
Newsletter

Owners

Face to face

Charity groups    Face to face
e-mail

*Organizational Communication methods

1.4 Construct a PEST/PESTLE analysis based on that chosen issue in 1.1 and 1.2
Political    €¢    All the cooking process should be under the environmental regulation.
€¢    All the staffs should be protected by the employment law and obey the law as well.
€¢    All the financial issues should be accountability and transparent and under the taxation law.
Economic    Compare the suppliers’ price with the same rate and objectively.
Social    €¢    No discrimination of people who can speak English well or not.
€¢    No discrimination about the age of status.
€¢    No discrimination of the payment and experience.
Technological    €¢    Make sure all the equipment is friendly used.
€¢    More effective and efficient innovation can be introduced to the shop.
€¢    Make sure some staffs have related permits or certification.

Legal    €¢    Make sure every staffs have valid visa.
€¢    Under the student visa, they cannot work more than 20 hours per week. Checking the visa condition every 3 months.
€¢    Make sure the shop have ABN and legally registered in Australia food and safety authority website and up to date.
Ecological/Natural    €¢    Make sure all the materials are Eco-friendly.
€¢    Make sure all the rubbish are divided by categories.
*Slide 31

1.5 Based on your response in 1.4, complete a SWOT analysis. (Slide 32 and 33)
Strength (Internal)
Experienced chef
Experienced department managers
Passion staffs
Good location
High quality goods and service
Variety kinds of food
Kindly service    Weakness  (Internal)
More well-known for Asian people than local
Not to many full time staffs
No financial risk managers
Cannot dine in

Opportunities  (External)
New shop in Cabrammatta, more well-know
Many charity groups are willing to accept the bread at the end of the day
Ask the cinema to cooperate, for example, if you buy 10 AUD bread, you can get 15% discount for any ticket at any time.
An Asian want to in SA which the good opportunities to make the shop more well-known around AU
Threats (External)
Too many bread shops in city centre
Too many food choice other than bread
Too many coffee shops in the city
Some raw material prices are not stable

*Slide 32 and 33

1.6 Examine your response in 1.4 and 4.5; document at least two critical success factors, goals or objectives for area included in scope. (Slide 35 €“ 38)

Effective and efficient communication
Managers give performance feedback for new staffs every 2 months and 4 months for junior staffs. Friendly consultation to let we know where we need to improve and how we need to do. For example, more smile when we talk to the customers. Speak loudly and slower to the older people.
Trust
Trust among staffs, owners and managers. You cannot see the trust by your eyes, but it is definitely important for the whole shop. For example, if the cashier find 10 dollars or even 100 dollars short at the end of the day, they would think they just count wrongly, or put 100 dollars less at the beginning of the day. The cashier will never think the staff stole the money; this is just small things, but the trust in the working environment.

1.7 Propose a way to obtain support for risk management activities (Slide 39-41)
Making an overall risk management direction and integrated into the whole shop. For our S Bread, let every employees know the importance of risk management and they are also responsible for the whole business profit.

Improving control and governance, keep the risk at an acceptable level while making up to data communication.

PART A: ESTABLISH RISK CONTEXT: Overall 20 Marks
Your CEO advised you to go through your current workplace vision, mission, goals and/or values and various departmental objectives and tactics. Review your observation as per Part A;

Use the similar context to answer following TWO parts:

Part B: TASK 1: IDENTIFY RISKS AND ANALYSE RISKS

2.1, 2.2, 2.3 €“ Examine slides 42 €“ 44 and your response in 1.1, identify the relevant parties from three levels of management and define appropriate risk. You further analyse slide 45 €“ 48, explain which specific tools and techniques you recommend is the most suitable for consultation engagement with relevant parties.

Risk    Relevant Parties    Levels of Management    Tools and Techniques for Risk Management

*Slide 42 €“ 44 & 45 €“ 48

3.1, 3.2, 3.3 €“ Evaluate your response in 1.1  and 1.2 to answer following questions: (Slide 65 to 68)
Various Risks
(1.1, 1.2)    Likelihood
3.1    Consequences
3.2    Risk Priority as per matrix
3.3

PART B: TASK 2: SELECT AND IMPLEMENT TREATMENTS

4.1, 4.2: Once again, use your 1.1 and 1.2 response, determine and select most appropriate options for treating risks (Slide 69 €“ 72) and further create an action plan for implementation.

4.2: Explain the importance of risk documentation and storing of risk information? (Slide 73 €“ 75)

4.3, 4.4: Evaluate one example of your workplace risk context, analyse the use of specific legislative framework during communication to relevant parties, risk documentation and storing of risk information? Justify your judgment. (Slide 49 €“ 62)

4.5, 4.6: Analyse slide 76 €“ 77, examine why we require analysing monitor and evaluation of risk management process? Justify your question using logic.

4.5: Analyse slide 78 €“ 84 and then prepare a list of most appropriate insurance. ? Justify your question using logic.