BSBINM601- Business Issues Assignment

Added on - 19 Feb 2021

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BSBINM601- Business issues
Table of ContentsASSESSMENT 1.............................................................................................................................1ASSESSMENT 2.............................................................................................................................6ASSESSMENT 3..........................................................................................................................17REFERENCES..............................................................................................................................21
ASSESSMENT 1INTRODUCTIONCoffeeVille Company, located in Melbourne CBD, has been supplying coffee withextremely superior quality and provides hot as well as cold beverages and food to its customerssince the year 2009. In the due course of years, the company has expanded itself and theiroperations 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 diversifiedtheir operations, their expenses have been regularly increasing since past three months andadditionally the sales of the company has been decreasing. Keeping the current scenario in pointof view, the present report will evaluate the external as well as internal environment of thecompany by examining their operational status as well as financial status. Additionally, thisreport will also, explore the potential reasons behind the regular decline in the sales that thecompany is experiencing. Lastly, in this report, various issues that the business is facing havebeen identified and analysed and the additional information required to conduct the analysis hasben gathered.Identification of IssueSales DecliningIt is one of the biggest issue which is faced by the organization in the last 5 financial years as thesales of the company is falling on the regular basis across all the three product unit of thecompany. The data of the last five financial year shows that the Food sales of the company hasseen the good amount of the fall, At the same time External catering has seen the minimumdownfall in their sales. Their is inconsistency in the sales of beverage for the company.Not able to understand the customer and trendIt is the another big issue which is faced by the organization that the organization is not able tounderstand 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 theorganization is declining on the continuous basis. Another reason for declining customer isincrease in the price of company product and financial problem.Cost of the Production1
This is the another big issue which is faced by the organization as the cost of the raw materialprocurement has been increased for the organization as a result the cost of the company producthas been increased which has affected the performance of the business in negative way.CompetitionIt is one of the biggest issue which is faced byCoffeeville in the market as the number ofcompetition in the market is very high as there are many companies in the country who is dealingin the food and beverage Industry. As a result organization has to compromise at some level tobe competitive in the market.Human resource and other ExpensesCost of retaining the Human resource in the organization has increased very rapidly in last fivefinancial year which has resulted in increasing the cost of the company. Also there is increase inthe utility cost of the company as the cost of good production has increased for organization inthe last five years.Location of the companyOrganization has shifted their operation to the city fringes and the sub urban area to reduce thecost of the company but it has resulted in loosing the existing customer of the company.Types and Sources of InformationThe source through which the issue of the business is identified is from the data and financialstatement of the business, Also with the help of the analysis of the survey result which wasconducted by the organization. Also the information is gather with the help of the customerfeedback.Also the issue has been identified with the help of the continued decline sales of the business andcancellation 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 whichis forcing them to ignore the company product and look for the another best alternative. At thesame time the customer of the company was happy about the quality of the product which isoffered by the company in the market.Decision in the organization are always taken on the basis of the information gather and analysisin such a way that it gives the suitable solution for the same. The sources which can be used bythe organization to make the decision in the organization is as follow:Different Publication whether Private or from the Public authority2
Financial statement of the company and CompetitorMarket Research and the survey dataCustomer feedback formTrade journal and PublicationCollection InformationThe business generally uses the both type of data collection source i.e. informal source andinformal source of information collection. Also the organization used to take the help of thesurvey to have a better knowledge of the market. Organization has conducted the customerfeedback survey as the active market survey.The discussion of the survey has provided the information that more and more customer arelooking to move to the Suburban location of the country as the cost of living in the urban area isto high that all the consumer are not able to survive in the same. This is one of the alarmingnotification for the business.As per the summary of the above point the organization has to make sure that they used to takethe decision in the organization on the basis of seeing the demographic or the population whichis near by the location of the store. Also the organization has to make sure that the organizationused 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 datawhich has been collected are collected from the reliable source. Hence before collecting the datait 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 informationwere discussed against the trend analysis and unusual fluctuation were discussed with the seniorauthority.Organization generally uses both the formal and informal sources to collect the data in theorganization and on the basis of the same the organization used to make the decision to solve theproblem and issue of the organization but organization do not uses both the sources together tofind out the solution for the problem as all the data are not ambiguity and contradictorycompared to the formal source.It was analyzed that the sales of the company may rise in coming future as there is newresidential building construction is going on near to the store 4 this may help the store in seeingthe larger number of the consumer as compare to the past.3
Formal and Informal networkFormal and Informal network of the information are two type of the information gatheringnetwork which is in front of the business by the use of the which the organization can gather theinformation. Formal information source will be better source of the information as compare tothe 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 ofthe decision making will also be improving in the organization.Business can gather the formal information with the help of the Financial statement of thecompany and CompetitorDifferent Publication whether Private or from the Public authority,Financial statement of the company and Competitor,Trade journal and Publication organizationmay use the same with the purpose of gathering the information regarding the market and alsoregarding 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, internetblogs, internet professional group may help to identify the issue of the business that is affectingthe business in the negative ways. Sometime Information which is collected with the help of theinformal network can also help the business in solving the issue which is faced by theorganization as informal network help the business in getting the customer insight, consumerbehavior knowledge and the performance of the competitor in the business. The main importanceof using the informal network is that it also include the inf0omation from the social media whichmay show the customer feedback and survey result.Some of the common source of the formal information network areManagement communityGovernment AuthorityTrade Union and trade associationBusiness forumCustomer feedbackSome of the common Informal information network areInternet blogSocial mediaBusiness LunchesStaff gathering4
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