Decision Analysis for Coffeeville

This assignment, titled 'Decision Analysis Report', presents a case study for Coffeeville, a café chain facing declining profits. It requires students to analyze the situation using various analytical tools like correlation analysis and decision information systems. The report outlines potential solutions such as reducing prices, offering home delivery, or maintaining the status quo, along with their implications. Ultimately, the assignment recommends expanding the business through take-home and delivery services for improved financial performance.

Appendix 4
Decision Analysis Report
Part 1 – Decision/Issue Name
Make Decisions on business issues
Decision required
The decision that must be made includes construction of an effective plan with the help
of which the issues that can be identified can be rectified and in that manner the profit
level of the company can be maintained.
History
The main factor that has led to this situation has been the economic concerns, the
political changes and taste and preferences of the consumers. The shortage of trained
and experienced employees has even had an impact on the operations of the firm. The
company has therefore faced decline in their profits that has led to undertake changes
in the decision making process. Emma and Rufus need the decision for Coffeeville and
should be within the next accounting year within all of their four stores.
Part 2 – Analysis
Summarise the analytical processes used, the results of the analysis and their
implications – do they support or disprove the issue or problem, what further questions
were raised as a result of the analysis.
Analysis Results Implications
Decision Information System Processing of the
data
Within the four shops
Correlation Analysis Fall in the net profit
and sales from 2011
to 2015
Improve the financial
scenario of the
company and
maintain competitive
edge in the economy.
Manage knowledge and information - BSBINM601
Issue Date: 19/10/2017 Page 1 of 3
ABN: 57 169 281 501
E: [e-mail]
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

Part 3 – Decision options
List all viable, genuine courses of action that address
the issue. Briefly list actions to be taken, any costs
associated with the option and potential positive and
negative outcomes.
Option 1:
Positive outcomes /
benefits
Reduce the prices of the
food
Negative
outcomes / Risks
Number of sales
required under the
new pricing system
to achieve current
daily revenue
figures
Option 2:
Positive outcomes /
benefits
Provide home packaged
and meal delivery systems
Negative
outcomes / Risks
Cost related to the
venture remains
unknown
Option 3:
Positive outcomes /
benefits
Do Nothing
Negative
outcomes / Risks
The current trend
Manage knowledge and information - BSBINM601
Issue Date: 19/10/2017 Page 2 of 3
ABN: 57 169 281 501
E: [e-mail]
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758

will continue,
resulting in
financial difficulties
for the business
and the potential
closure of non-
profitable stores.
Part 4 – Recommendation/action taken
Expansion of the business with the help of
introduction of the take home service and home
delivery facilities is recommended as it would
improve the operations of the firm in an economic
manner.
Confirmation/approval
Names, titles, signatures and date of decision or
granting of approval
Name
Emma
Belcastran
Title
Ms
Signature Date
24/11/2017
Name
Rufus
Belcastran
Title
Ms
Signature Date
24/11/2017
Name Title Signature Date
Manage knowledge and information - BSBINM601
Issue Date: 19/10/2017 Page 3 of 3
ABN: 57 169 281 501
E: [e-mail]
W: www.sydneymetrocollege.edu.au
Sydney (Head Office): Level 2, 16-22 Wentworth Avenue
Surry Hills NSW 2010
T: 02 8937 0991
Melbourne: Level 1 &2, 213-215 Lonsdale Street
Melbourne VIC 3000
T: 03 0 9077 0758