Risk Review for MacVille's Expansion Plans

Assessment Task 1: Risk review
1. Introduction To Macville:
MacVille Proprietary Limited is a beverage chain based in Queensland, Australia which
embarked on a strategy to expand its business into other states of Australia. The café in order
to expand its market uses the strategies of acquisition and merger by taking over smaller
cafes located in either developed or emerging local markets. MacVille being a proprietary
limited company has a well structure organisational leadership structure with the present
CEO, Paula Kinski as its head. The organisational structure of the company also consisted of
board of directors which took decisions in crucial matters like taking over new subsidiaries to
expand business. The restaurant chain had a very strong risk management strategy in place
which was divided into three steps namely, review, analysis and risk management planning
and monitoring of the risk management plans. The company was financially very strong
which was evident from its strong market position and well layered organisational structure.
The company expanded its policies like the risk management policies to the newly acquired
subsidiaries as well. The company had a very strong occupational health and safety policies
which ensured that the employees of the company suffered minimum injuries. The company
due to its strong employee centric organisational culture and reduced operational disruptions
due to reduced accidents, was able to provide high level services to the customers which
resulted in satisfaction to the latter. The management of the company extended its risk and
OHS policies to subsidiaries as well. This was evident from of the fact the company sent the
assistant manager of Brisbane Queen Store to carry out a research on the current operations
of the Hurley’s café in Toowoomba. The assistant manager gained information about the
operations in place at the Hurley’s café and its present risk management policies.

2. MacVille’s Expansion Plans:
MacVille applied the strategy of acquisition and merger to expand its business to new
markets with Australia. The company was eyeing to take over Hurley’s Café in Toowoomba
also in Australia to take the advantage of the growing restaurant market in the town. The
management of MacVille followed a stringent risk management policy both for its own stores
and future subsidiaries. The management assign the assistant manager of the Brisbane Queen
store to carry out a risk management analysis of the Toowoomba store.
3. Goals for Expansion Plans
a. To appropriately manage the risks involved with the operation of the Toowoomba store.
The aim of the risk management plan was to carry out a strict risk analysis of the
Toowoomba store to recognise the operational risks. The assistant manager of the
Toowoomba store was assigned with the responsibility of analysing the actual operations
which were in place in the Hurley’s café and pointing out those methods which could attract
risks to the company post acquisition of the café.
b. To give the new manager significant insights into the store’s operations:
The management of the store assigned the assistant manager of the Brisbane Queen
store the responsibility of visiting the Hurley’s café. The manager was supposed to meet the
present in-charge of the café to get insights into the present operations of the store. The
assistant manager was than supposed to communicate the findings to the CEO and the
manager. The CEO and management board of the café was then supposed to take decisions
regarding the measures which have to be taken to improve the risk management operations in
place in the Hurley’s Café in Toowoomba.

c. To ensure there is a smooth transition to the MacVille systems.
The management body of MacVille Pty Limited under the leadership of Paula Kinski,
CEO aimed to undertake an analysis of the actual risk management policies in place at the
Hurley in order to ensure that the business does not face any issues pertaining to risk
management post acquisition of the Hurley’s.
d. To encourage the new manager to give ongoing support for risk management.
The management of MacVille Pty Limited wanted to gain participation and support of
the newly promoted assistant manager in risk management. This is why the firm assigned the
new assist manager of visiting the manager to conduct risk analysis of the store at
Toowoomba which MacVille was aiming to acquire.
4. Stakeholder Feedback Table
Stakeholder Internal/external Role in process Issue/concerns
The board Internal Responsible for
the overall risk
management.
Potential asset loss
both tangible and
intangible.
Paula Kinski Internal Chief Executive
Officer.
Potential loss of
reputation and
promotion
prospects.
Queensland
management team
Internal Management team
to assist in the
transition and
Potential loss of
reputation and
promotion

ongoing
management.
prospects.
Ron Langford External Councillor and
landlord.
Potential loss of a
tenant.
James Mansfield Internal Hurley’s store
supervisor.
Potential loss of
promotion.
Hurley’s staff Internal Employees. Potential loss of
employment.
Goldsmith
Partners
External Legal and
compliance
advice.
Potential loss of a
client & potential
for being sued for
advice given.
4. PEST Analysis.
i. Political –
The Government of Australia is a stable government both the central and state level.
The government bodies make laws and policies for the business organisations to comply with
as well as incorporate in their strategies. For example, as mentioned by Ron in the case study,
the Government of Australia was launching a new law which mandated the industries to
reduce amount of waste water which means that companies were required to take measures to
ensure water spillage. Similarly, the Government also passed a law to strengthen the