Management of Risk in the Expansion of MacVille Coffee Chain

Running head: MANAGEMENT OF RISK
MANAGEMENT OF RISK
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Task 1:.........................................................................................................................................2
Task 2:.......................................................................................................................................14
Task 3:.......................................................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................25

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Introduction
Risk in the project is defined as the raise of the sudden unexpected change in the flow of
the development. The risk can be positive or negative. The success of the project management is
largely dependent on the managing of the risks associated with the project. The project managers
use different project management tools and techniques in order to evaluate the risks associated
with the project. There is no way to eliminate the risks from the project in a complete way
(Cagliano, Grimaldi and Rafele 2015). However, the risk management is concerned about the
identification of the risks and planning the mitigation of those identified risks. It has been seen
that most of the project managers are not concerned about the managing of the risks in the
project. This leads to the failure of the project. The main objective of this paper is to evaluate the
different aspects of the risks associated with the project. The project is concerned about the
expansion of the business of the coffee chain named MacVille Pty Ltd. MacVille Pty Ltd runs a
coffee chain and has cafés in the Central Business District (CBD) of Brisbane, Queensland and
the CBD of Sydney, NSW. Now, the organization is planning to expand the business by
purchasing and renovate one existing cafe Hurley’s cafe. In order to carry out these plans in the
business certain blueprint is needed to be carried out by the project managers of the MacVille
Pty Ltd. The managing of the risks associated with the project of redeveloping and expansion of
the business of this organization is needed to be evaluated from the different aspects. The
planning of entire project is the responsibility of the assistance manager of the store.

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Discussion
Task 1:
Risk review report:
The risk review report is associated with the identification of the risks associated with the
project. The project is associated with the expansion of the business regarding the coffee chain.
Business scenario of MacVille:
MacVille Pvt Lty of Australia is trying to expand the business in the beverage market. In
order to do this the company is acquiring Hurley’s Café in Toowoomba, 130km west of
Brisbane. The successful acquiring of the cafe needs the proper evaluation of the risks associated
with the project. The evaluation also discusses about the negative risks those can be harmful for
the expansion of the business, apart from that the positive risks associated with the project will
help to provide some of the opportunities for the organization (Bruins et al. 2014). The risks are
evaluated based on the current business status of the project. Currently, the policies and the
procedures are set up by Mr. Hurley, the head of the cafe. The cafe is owned by the family. Most
of the staffs are the members of the family. James Mansfiled is appointed by the Hurley family
as the senior operation manager.
Review of the ongoing operation of the Hurley’s cafe:
The Hurley’s cafe is situated away from the two hours of drive time from Brisbane. The
cafe is operating on its own currently. As, the project manager, the assistance manager of the
MacVille is going to conduct a meeting with the officials of the Hurley’s cafe. The organization
is going to conduct a meeting with James Mansfield , the current operation manager of the cafe

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regarding the process of the acquiring. The meeting results the raising of the few points
regarding the Hurley’s cafe. Theses identified points are regarded as the possible risks. Some of
these issues are making the opportunities for the expansion of the business. Other issues may
become constraint in the business. The differentiation is done between the positive constraint
and negative constraint.
Negative risks associated with the program:
1. The distance of the Hurley’s cafe needs to cover two hour long drive from Brisbane. This
will become the constraint in the monthly meetings between the managers. Apart from
that it will also become problematic during the six months training of the managers.
Moreover, there is a chance of accident at road.
2. The two hours long drive from Brisbane to Hurley’s cafe will make the possibility of
delivering the fresh pastries to the Hurley’s cafe from the MacVille’s impractical.
3. The CBD store at Brisbane get the easy access of the suppliers and the brand. However,
the Hurley’s store may face problem for getting the goods from the branded supplier as
the two hours long driving distance will count.
4. Hurley’s cafe is run by the family members. This can be a problem as it has been seen
that there is a lack of professionalism in the conduction of the business process in the
Hurley’s cafe.
5. There is no written policy or manual for the running of the business for Hurley’s cafe.
6. There is no security for the storage of the cash.
7. No concern is taken in case of accidental injuries during the working hours of the cafe.
8. Te record regarding the information about the employees are stored in the computer are
not password protected.

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9. There is no practice of sales promotion is present for the marketing of the Hurley’s cafe.
These are the main risks associated with the acquiring of the Hurley’s cafe. In order to
improvise the business and expansion of the business MacVille needs to solve these problems so
that the risks associated with it can be mitigated.
Some of these opportunities are-
 Toowoomba , where Hurley’s cafe is situated has growing numbers of the retirees. Apart
from that the population is growing in a rapid speed. Those are the great opportunities for
the newly modified cafe.
 The Hurkley’s cafe is far away from the mainland. However, the unique positioning of
the cafe will attract the tourists and the locals.
MacVille Risk Management Framework:
MacVille Risk Management Framework has several steps that identifies the risks
associated with the project. The mitigation techniques of the risks are based on the identifies
risks. There are several steps in MacVille Risk Management Framework which are based on
principal process of the risk management:
Categorization of the risk: The risks are categorized on the basis of the consequences and
the effectiveness of the risks. In this project the risks are categorized in two sections . Positive
risk and negative risk. The positive risk will enhance the opportunities to the modification and
the running of the Hurley’s cafe acquired by the MacVille. On the other hand the negative risks
will become the possible constraints for the development of the business in Hurley’s cafe.