Solving Rental and Lease Issues in Business

The assignment discusses the issue of rental and lease expenses in business, particularly in the context of a cafe in Sydney. It proposes two optional solutions: framing rules and regulations for rental and lease prices by the government, and reducing the expense of attesting agreements through minimum charges. The document concludes that CATWOE analysis and Rich Picture models can help businesses in the hospitality sector solve problems affecting their profit margins and reputation.

SYSTEMS THINKING

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
RICH PICTURE..........................................................................................................................1
ROOT DEFINITION REPORT WITH THE HELP OF CATWOE...........................................2
TWO OPTIONAL SOLUTIONS................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Systems thinking is being referred to one of leading system tools that can help an
individual to view systems from a broad orientation. This mainly includes whole artefact, cycle
or pattern within the systems, instead of looking at a specific event. Present assignment is going
to be enclosed with rich picture, root definition report (C.A.T.W.O.E.) and two major solutions
to overcome from problems which is being faced while doing assessment one.
MAIN BODY
RICH PICTURE
Rich picture refers to a strategy of soft systems methodology which helps in drawing a
complex situation in concise form of an overall issue. In present context, Botannix Studio Café
which is a small café and located in Botany NSW 2019, Australia. Major problem which was
being faced by this cafe is that it was rented. It is being analysed that in Australia, The Rental
Affordability Index (RAI) which is an indicator shows overall price of rents nationwide relative
to incomes which stays supported by a rental agreement. On the basis of a report, it is being
computed that rented cafes' or restaurants that are doing business in Australia where most of
them are spending wages around 27 per cent.
On the other hand, it is being analysed that this problem which was being faced by
Botannix Studio Café, it was also faced by all most every rented cafe because rental or leasing
prices were pushing middle-income earners out. In this context, one of author within a report
mentioned that business people in hospitality industry with a moderate income in Australia
mainly gets pushed out to outskirts of cities like Sydney, City of Adelaide and so on. This may
lead cafe to get in a situation related to forfeit.
Here, this problem is faced by the Botannix Studio Café because it is doing business in
Sydney which comes under one of wealthiest cities in all over world. On the other hand, it has
also been found that Australian government should develop a proper national rental strategy
now where local, state and national authorities must invest among hospitality industry so that
rented cafes like Botannix Studio Café can easily perform well and they also need to give some
rebate as well in rental or lease percentage.
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ROOT DEFINITION REPORT WITH THE HELP OF CATWOE
Root Definition report is being considered as a structured analysis which can help an
individual in investigating the system in much more effective and efficient way. In present
context, CATWOE (C- Customers/clients, A – Actors, T – Transformation Process, W-
Weltanschauung / Worldview, O – Owners and E- Environment) analysis is being done in order
to understand overall problem and stakeholders and factors that are linked with the business.
Since, Botannix Studio Café have been on lease, therefore, it is required for the owner of
cafe to keep on renewing the agreements so that it may perform its operations in much effective
and efficient way. But, as cafe is small in nature and do generates only a moderate revenue
which may leads to perform well in much effective and efficient manner. In present context,
CATWOE tool is being used for developing root definition report and its elements are mentioned
below:
Customers : It is being found that clients mainly are being considered as stakeholders
which plays a crucial role for system existence. Here, these may suffer from different situations
as Botannix Studio Café is doing business in Sydney, Australia but are generating low revenue.
Because of heavy rent, Botannix Studio Café is not performing and this have impacted on their
performance level which led them to deliver poor services. It is needed for this cafe to improve
so that they may perform well because if quality of services will get destructed it may impact
upon their own image in front of society.
Actors : In present context, it is being found that employees plays a crucial role and they
can be considered as top most stakeholders that mainly fits in this element of CATWOE analysis.
As Botannix Studio Café is doing business in Sydney, which comes under wealthiest cities.
Therefore, employees may ask for high wages which this small Cafe cannot afford. Reason
behind this can also be rent because it mainly stays high in Australia and this may lead cafe to
put most of amount of profit for paying their rent.
Transformation Process : Transformation means bringing change among different
system which may directly impact upon over all business. On the basis of analysis, it is being
computed that agreement related policies and laws which is being developed by government of
Australia needs to be properly understood at the time of agreeing over a deed. This can help both
agreers to know on what they are agreeing on. Reason behind this, is that no fraudulent activity
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may take place. Since, Botannix Studio Café rented a place to do its operations. It is required for
company to focus on different situations so that maximum benefits
World view : In present context, this step entails placing the process or system under
analysis in its wider context to highlight the consequences or relevance of such process to the
overall system.
Owners : It is being found that mainly entrepreneurs or investors do comes under this
element of analysis, which may majorly take decisions related to making changes among
agreements with lender and so on.
Environment : This is mainly enclosed with external constraints under a proper system
woks, this could hamper or restrict the changes among systems. Since, Botannix Studio Café was
performing in Sydney's business market, they go through dynamic situations where tax or
agreement related policies also gets changes. Therefore, it is required for this cafe to focus on
these changes as well so that it do not impact upon firm's reputation and may aid them in
performing business in Sydney.
TWO OPTIONAL SOLUTIONS
Rental and lease is the major problem which is solve by the implementation of two
models these are CATWOE that is based on Root definition report and another is RICH
PITURE. Below mention are two solution of the issue which result in deducting rental and lease
expensiveness :-
 Government of Australia have to frame some rule and regulation for rental and lease
price which must be included size of house, shop of anything else. According to size of
space and location amount of rent should be decided. Because there are several people
who are not from high class society and can't afford high rent for them this become major
issue.
 First step of rental and lease involve agreement in which detail related to both the parties
are included such as name, age, duration of rent or lease, amount to be paid and on which
date as well as several more. After this it is attested by the government for this some
amount is charge which is also included in rental and lease process and result in
expensive. Thus, solution of this issue is that government have to charge minimum
amount on agreement as much as they can because this may resolve this problem.
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CONCLUSION
With the help of above mentioned report, it is being concluded that both Rich picture and
CATWOE analysis can easily help business organisations of hospitality sector to bring solutions
for them problems which is mainly causing their profit margins or reputation to get decrease.
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REFERENCES
Books and Journals
Al-Ghamdi, S. G. and Bilec, M. M., 2015. Life-cycle thinking and the LEED rating system:
global perspective on building energy use and environmental impacts. Environmental
Science & Technology. 49(7). pp.4048-4056.
Ambrose, A., 2018. An introduction to transitional thinking. In The transitional approach to
change (pp. 1-28). Routledge.
Bruner, J., 2017. A study of thinking. Routledge.
Liu, S., Forrest, J. and Yang, Y., 2015. Grey system: thinking, methods, and models with
applications. Contemporary Issues in Systems Science and Engineering. 888.
Newton, A. and Harris, G., 2015. Leadership and system thinking in the modern ambulance
service. In Ambulance Services (pp. 81-93). Springer, Cham.
Wasson, C. S., 2015. System engineering analysis, design, and development: Concepts,
principles, and practices. John Wiley & Sons.
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