The Scope of Risk Management - Doc
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Added on 2021-05-31
The Scope of Risk Management - Doc
Added on 2021-05-31
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Running head: RISKS OF TAKEOVERSRisks of TakeoversName of the Student:Name of the University:Author Note:
1RISKS OF TAKEOVERSTask 1:Answer 1:MacVille was an Australian café serving high quality coffee and gourmet food based inQueensland. The layout of the restaurant was that of café style environment where its staffmembers served the customers. The vision of the café was to provide high uqlaity food productsand superior services to its customers to enhance their satisfaction. This focus on customers infact, formed a part of the values of the café alongside safety, teamwork and excellentperformance. The firm was expanding in Queensland and New South Wales. Paula Kinski wasthe CEO of the firm. The firm had a very stringent risk management policy which functionedunder the supervision of the directors and senior managers (McNeil, Frey and Embrechts, 2015).Answer 2:Part a:The risk management policy of MacVille Café was designed, managed and operated therisks the café could encounter. The risk management policy of the firm functioned according tothe guidelines ISO 31000:2018 which replaced ISO 31000:2009. The policy embraced the apexmanagement, the store managers and the subordinate employees of the café. The riskmanagement policy of MacVille included WHS Policy, Harassment Policy and Return to WorkPolicy. The purpose of the ISO 31000:2009 was to ensure risk management among organizationsfunctioning in Australia (iso.org 2018).
2RISKS OF TAKEOVERSPart b:The scope of risk management in the role of assistant manager consisted of assessment ofthe risk concerning newly acquired subsidiaries like the Hurley’s Café. The scope of riskmanagement of store managers then expanded to meeting and discussing the present riskmanagement standards in those subsidiaries with the finance, audit and risk management(FARM) team. It also involved Goldsmith Partners in the capacity of legal advisors to MacVillepertaining to risk management (Chance and Brooks 2015).Part c: The critical success factors of the risk management at MacVille Proprietary Limitedstood on two pillars. The first pillar consisted of strong support the junior managers and the storemanagers received from the senior managers. Moreover, the firm had a FARM committee whichlooked after the risk management both within the present business operations of the MacVilleand in the future acquisitions like Hurley’s Cafe. The second pillar of success of riskmanagement of MacVille was its strong communication network which allowed smoothcommunication of risk related between superior and subordinate employees (Bromiley et al.2015). The support and involvement of Paula Kinski provided a more profound base to riskmanagement of the company. The goals of the risk management of MacVille consisted ofminimizing of risks within its present business operations and also in case of future businessoperations like Hurley’s Café.
3RISKS OF TAKEOVERSPart d:StakeholderInternal/externalRole in processStake in processManagementInternalForms riskmanagementpoliciesHighEmployeesInternalExecutes thestrategies formed bythe managementHighGovernment bodiesExternalForms the risksmanagement lawsand policies whichare applicable on allbusinessorganisations HighSubsidiariesExternalContributes to therevenue generationof the company MediumCustomersExternalPurchase foodproducts from thecafé and generaterevenue HighSuppliersExternalProvides rawmaterials to the caféHigh
4RISKS OF TAKEOVERSfor production offinished goods(food products)Part e:PEST analysis of Australia:Political:1.The government of Australia ispolitically stable and makes laws forthe industries like food industry, towhich MacVille belongs.2.The government forms laws pertainingto areas like risk management andacquisition of subsidiary companieswhich provides guidelines to all thebusiness organisations.3.The government provides support forexpansion of business by providingfacilities like footpath dining andinternet connection.Social:1. Australia has a large population ofaged and retired people who enjoydining at expensive café stylerestaurants.2.The Australian society is experiencingincrease awareness for environmentalaspects like wastage of water inrestaurants which in turn isencouraging the government to formlaws to curb the practices.Economical:1.Australia is economical strong whichmeans the Australians people,including the retired people havesufficient disposable income to afforddining in café style restaurants.2.The economy of Australia provide richnetwork of banks which providesfinancial support to the businessoperations of companies.3.The country provides sufficientbusiness expansion opportunities tothe business organisations byacquiring other firms which increasesthe assets in turn. Technological:1.The market of Australia istechnologically advanced which inturn support the risk managementoperations in the businessorganisations.2.The country provides the businessorganisations with internet facilitieswhich enable them to develop a stronginformation and communicationnetwork to hold conferences betweenthe geographically distant locations.3.The country provides scopes forinnovations even in the smallrestaurants like Hurley’s Café.
5RISKS OF TAKEOVERSSWOT analysis of MacVille:Strengths:1.MacVille has operations inQueensland and New South Waleswhich means the restaurant serves ahuge customer base which contributedit with high revenue generation.2.Its acquisitions of Hurley’s Caféproved its strong capital base.3.The company had strong riskmanagement system.Weaknesses:1.Its subsidiaries like Hurley’s did notmaintain high risk managementpractices and their acquisition wouldrequire huge investment onMacVille’s part to beef up the riskmanagement of the former.Opportunities:1.MacVille can expand into new areas.2.Introduce innovative food products tosuit the preferences of the differentcustomer segments like Australianretired customers and tourists.3.The restaurant firm can enforce itsown high risk management standardson its subsidiaries as well.Threats:1.New laws like environmental laws tocheck wastage of water in restaurantsenacted by the Toowoomba Councilwould require the subsidiaries ofMacVille like Hurley’s Café to reducetheir wastage promptly. Non-compliance of the subsidiaries wouldultimately attract penal charges forMacVille since it is the holdingcompany (tr.qld.gov.au 2018).2.New restaurants includinginternational chains are seeking toenter its markets. They wouldchallenge the revenue generation andcustomer share of the subsidiaries likeHurley’s Café.Part f:The research method to gain information on the SWOT and PEST analysis wassecondary research. It involved study of legislations, regulations and business environmentalfactors including risks. The researcher has consulted a wide range of books, articles and officialwebsites of the Government of Australia to gain substantial information pertaining to thementioned areas (CODE 2014).
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