Assessment 1 manage risks
Assessment 1- Project
Australia is trying to develop their country and start new relationships with countries such as US, Europe and other Asian countries. The country is now on a stable political government and Asian countries will benefit from relationships. Australia has to accept agreements of MacVille to use their coffee and purchase their coffee.
Local exchange rates in Australia will definitely affect the business of MacVille because they fluctuate. Australia is the second biggest exporter of Coffee beans. Australia is starting to open to the world to WTO to invest in the country. Prices must adapt to the Australian market so they will change their price according to the number of sales. The average salaries of Australians in each area is different. The overall population is low due to the farms and villages. The buying power of the customers is quite weak but can still affect the MacVille strategy and prices and of course the level of taxation is a very big factor on the prices and sales of MacVille coffee.
Australia used to be a very agricultural country. Everyone worked in farms and plantations. After opening to the world, Australia became more developed and businesses began to increase. The family patterns in Australia began to change and this can either increased the sales of businesses. Old people like to drink the traditional coffee. Now younger Australian people are buying branded coffees from commercial companies such as Gloria Jeans and MacVille Cafe. Some families like to have breakfast together however some are too busy and buy coffee outside the house. It is then up to the preferences of the Australian people to decide if they are going to buy MacVille or any other coffeehouse coffee. Education levels are important in the coffee house industry this is because people usually start to drink coffee when they go to university. Lifestyles, work patterns and values will change too.
The beverages of MacVille in Australia won’t really change, this is because everything is made from natural products. However the machines that make them, will always increase in speed and efficiency. As a the number 1 coffee house in the world it can get very busy so being fast and efficient is an important factor.
The coffee beans themselves can be produced in a better and more efficient way in their farms and coffee plants. The developments in agriculture can increase the number of beans produced reducing the prices of the coffee beans. Therefore, MacVille can choose a cheaper price to sell their products. MacVille now includes free Wi-Fi which allow for business or recreational activities.
The scope of this report is to identify and explain all the necessary risks factors that should be consider in order to improve the performance of the company. this report will be based around 6 different types of risk management.
The biggest risk that MacVille Cafes has is that competitors are quite strong. Competing with strong café chains such as Starbucks, Gloria Jeans, McCafe, etc. will require strong competitive advantages and good strategies. Making sure that the company faces minimum risks is a great way for the company to perform at its best, to help the café compete the competitors effectively.
The key success factors for this café would be the price, product, place and promotions of the café. Making sure that all these factors are considered will ensure that best performance and success.
This is a very important type of risk that can put a company in danger. Financial risks are risks that relate to the companies money. These could be normal transactions or other financial problems. If a company does have a financial risk, it is important to get assistance from banks or other partners.
A financial risk is referred to more as a financial transaction that the company cannot be sure it will generate profit or loss. This is usually a type of investment or strategy that requires a fair bit of money but has a chance of generating a lot more if the strategy is successful.
These are risks that occur within the operations of the company. These types of risks are very broad and cover a big range of risks that occur in a company. This risks applies the people and processes within the company.
Some categories in the operational risks include:
These are risks that could cause conflicts and problems with the regulators of businesses such as the OH&S committee, ACCC and ASIC. All these organisations were created to make sure that all organisations are operating by certain guidelines and rules that protect everyone including the company, customers and competitors. It is important that all strategies are made sure that they comply with the guidelines set by the government.
These are any other risks that occur on a regular basis but do not come in the categories of the other types of risks. These risks could be uncontrollable such as natural disasters or unique to some industries.
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