Analysis of Business Issues and Performance of CoffeeVille Company

BSBINM601- Business issues

Table of Contents
ASSESSMENT 1.............................................................................................................................1
ASSESSMENT 2.............................................................................................................................6
Appendix 5................................................................................................................................15
ASSESSMENT 3 ..........................................................................................................................17
Appendix 5................................................................................................................................17
Appendix 6................................................................................................................................21
ASSESSMENT 4...........................................................................................................................23
CONCLUSION .............................................................................................................................26
REFERENCES..............................................................................................................................27

ASSESSMENT 1
INTRODUCTION
CoffeeVille Company, located in Melbourne CBD, has been supplying coffee with
extremely superior quality and provides hot as well as cold beverages and food to its customers
since the year 2009. In the due course of years, the company has expanded itself and their
operations by opening around 4 more coffee shops situated in and around Melbourne CBD.
Although in the past 4 years, the company has regularly expanded themselves and diversified
their operations, their expenses have been regularly increasing since past three months and
additionally the sales of the company has been decreasing. Keeping the current scenario in point
of view, the present report will evaluate the external as well as internal environment of the
company by examining their operational status as well as financial status. Additionally, this
report will also, explore the potential reasons behind the regular decline in the sales that the
company is experiencing. Lastly, in this report, various issues that the business is facing have
been identified and analysed and the additional information required to conduct the analysis has
ben gathered.
Identification of Issue
Sales Declining
It is one of the biggest issue which is faced by the organization in the last 5 financial years as the
sales of the company is falling on the regular basis across all the three product unit of the
company. The data of the last five financial year shows that the Food sales of the company has
seen the good amount of the fall, At the same time External catering has seen the minimum
downfall in their sales. Their is inconsistency in the sales of beverage for the company.
Not able to understand the customer and trend
It is the another big issue which is faced by the organization that the organization is not able to
understand the trend of the market and also not able to understand the customer in the market,
which has created the situation for the business that the number of the customer for the
organization is declining on the continuous basis. Another reason for declining customer is
increase in the price of company product and financial problem.
Cost of the Production
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This is the another big issue which is faced by the organization as the cost of the raw material
procurement has been increased for the organization as a result the cost of the company product
has been increased which has affected the performance of the business in negative way.
Competition
It is one of the biggest issue which is faced by Coffeeville in the market as the number of
competition in the market is very high as there are many companies in the country who is dealing
in the food and beverage Industry. As a result organization has to compromise at some level to
be competitive in the market.
Human resource and other Expenses
Cost of retaining the Human resource in the organization has increased very rapidly in last five
financial year which has resulted in increasing the cost of the company. Also there is increase in
the utility cost of the company as the cost of good production has increased for organization in
the last five years.
Location of the company
Organization has shifted their operation to the city fringes and the sub urban area to reduce the
cost of the company but it has resulted in loosing the existing customer of the company.
Types and Sources of Information
The source through which the issue of the business is identified is from the data and financial
statement of the business, Also with the help of the analysis of the survey result which was
conducted by the organization. Also the information is gather with the help of the customer
feedback.
Also the issue has been identified with the help of the continued decline sales of the business and
cancellation and inactive member of the customer loyalty program.
Summary of the customer feed back was that the price of the product is the biggest reason which
is forcing them to ignore the company product and look for the another best alternative. At the
same time the customer of the company was happy about the quality of the product which is
offered by the company in the market.
Decision in the organization are always taken on the basis of the information gather and analysis
in such a way that it gives the suitable solution for the same. The sources which can be used by
the organization to make the decision in the organization is as follow:
 Different Publication whether Private or from the Public authority
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 Financial statement of the company and Competitor
 Market Research and the survey data
 Customer feedback form
 Trade journal and Publication
Collection Information
The business generally uses the both type of data collection source i.e. informal source and
informal source of information collection. Also the organization used to take the help of the
survey to have a better knowledge of the market. Organization has conducted the customer
feedback survey as the active market survey.
The discussion of the survey has provided the information that more and more customer are
looking to move to the Suburban location of the country as the cost of living in the urban area is
to high that all the consumer are not able to survive in the same. This is one of the alarming
notification for the business.
As per the summary of the above point the organization has to make sure that they used to take
the decision in the organization on the basis of seeing the demographic or the population which
is near by the location of the store. Also the organization has to make sure that the organization
used take the decision in the organization by looking at the financial position of the business.
Prior to making the decision in the organization the organization has to make sure that the data
which has been collected are collected from the reliable source. Hence before collecting the data
it was make sure that the data collected are collected from the official source of the government.
The data related to the performance of the organization i.e. financial and economic information
were discussed against the trend analysis and unusual fluctuation were discussed with the senior
authority.
Organization generally uses both the formal and informal sources to collect the data in the
organization and on the basis of the same the organization used to make the decision to solve the
problem and issue of the organization but organization do not uses both the sources together to
find out the solution for the problem as all the data are not ambiguity and contradictory
compared to the formal source.
It was analyzed that the sales of the company may rise in coming future as there is new
residential building construction is going on near to the store 4 this may help the store in seeing
the larger number of the consumer as compare to the past.
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Formal and Informal network
Formal and Informal network of the information are two type of the information gathering
network which is in front of the business by the use of the which the organization can gather the
information. Formal information source will be better source of the information as compare to
the informal network as informal network are general and vague and subject to ambiguity.
However if the organization will be having better amount of the information then the accuracy of
the decision making will also be improving in the organization.
Business can gather the formal information with the help of the Financial statement of the
company and Competitor Different Publication whether Private or from the Public authority,
Financial statement of the company and Competitor, Trade journal and Publication organization
may use the same with the purpose of gathering the information regarding the market and also
regarding the changing taste and preference of the consumer in the market.
Informal source of the data is by the way of employee get together, business lunches, internet
blogs, internet professional group may help to identify the issue of the business that is affecting
the business in the negative ways. Sometime Information which is collected with the help of the
informal network can also help the business in solving the issue which is faced by the
organization as informal network help the business in getting the customer insight, consumer
behavior knowledge and the performance of the competitor in the business. The main importance
of using the informal network is that it also include the inf0omation from the social media which
may show the customer feedback and survey result.
Some of the common source of the formal information network are
 Management community
 Government Authority
 Trade Union and trade association
 Business forum
 Customer feedback
Some of the common Informal information network are
 Internet blog
 Social media
 Business Lunches
 Staff gathering
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