Coffeeville's Expansion: A Report on Risk Management Strategies

This report assesses Coffeeville's risk management framework as it expands operations through the Lakes Entrance store. It highlights the importance of risk communication and stakeholder engagement, analyzing the effectiveness of current risk management strategies. The report identifies critical success factors, internal and external stakeholders, and conducts SWOT and PEST analyses to evaluate the business environment. It enumerates potential risks like banking, travel, by-law compliance, and brand recognition risks. The report also includes email communications to stakeholders and the CEO, seeking their input on risk identification. Finally, it reviews Coffeeville's business, strategic directions, and potential risks, emphasizing the need for effective risk management during expansion. Desklib provides access to similar solved assignments and past papers for students.

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the student
Name of the university
Author note

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Assessment 1
1. Introduction
The Coffeeville business is undertaking steps to expand their operations through the
Lakes Entrance store. The depiction of the risks and the proper management of the same are the
major elements that are focused by the higher authorities of the organization. The differences in
the strategies and the manner in which the manager, Ash, communicated the different risks with
the stakeholders are the major standpoint for the report. The assessment of the different risks that
might be faced by the enterprise while making its expansion in the international markets will be
helping the same to formulate strategies. The report will be focusing on the different approaches
that might be undertaken by the business while undertaking the expansion.
2. Effectiveness of the risk management framework
The risk management framework that is framed by the organization is based on the
proper communication of the assessed risks and thereby the different strategies that might be
designed by the organization to mitigate the issues that might restrain the activities of the
business. The different policies and regulations that are created by the organization relating to
the staff satisfactions and the different internal and external audits on risk assessment will be
helping the organization to build on different strategies to avoid the different unfortunate
circumstances related to lower staff turnover and productivity of the business. On the other hand,
the monthly reporting systems of the organization will be helping the same to keep themselves
updated with the situation of the organization in the market.
The risk management framework that is created by the organization will be helping the
same to assess the risks that might be faced by the same while considering the current expansion

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through the new store. The evaluation of the monthly budget and the reporting systems will be
helping the management of the organization to assess the risks and thereby bring in changes in
the systems of the business.
3. Scope of the risk management strategies
The scope of the risk management strategies that are undertaken by the business has
helped in maintaining the different levels of changes in the systems of the business. The risk
assessment will be based on the evaluation of the market and the different preference of the
consumers.
4. Critical success factors
The success factors of the risk assessment will be based on the identification of the
different levels of risk that might be faced by the organization while undertaking the expansion.
The critical success factors of the risk management systems that are imposed by the organization
is dependent on the efficiency of the assessment that are undertaken by the evaluators. the
evaluation will e helping the risk management systems of the organization to strengthen the3ir
grounds while operating in the international markets.
5. Identification of internal and external stakeholders
Stakeholders Internal/ External Role in the process Stakes in the process
The employees Internal Identification of the
change that is
implemented by the
organization and
thereby working on the
objectives of the
Employability of the
employees are
dependent on the
profitability of the
business

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business.
The investors External Making wholesome
investments for
undertaking the smooth
functioning of the
business as per the
objectives of the
expansion
The investments that are
made by the investors
and the faire returns to
the same depends on the
smooth performance
and profitability of the
business.
The management Internal The involve3mrent of
the management and the
strategies in which the
expansion can be
undertaken has helped
the organization in
bringing forth changes.
The involvement of the
management of the
organization helps in
enhancing the functions
of the organizations.
The profitability of the
organization helps in
flourishing the
management systems.
6. SWOT and PEST
Strengths
 Premium quality and fair trade coffee bean
is used
 The easily accessible store and outlets
helps in attracting the attention of the
Weaknesses
 Lack of knowledge on consumer
preferences
 Lack of integration between the
different departments of the
organization

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customers
 Reputation and brand name
 Smooth functioning risk assessment and
management teams of the organization
which helps in maintaining the proper
functioning of the business
Opportunities
 The expansion in the different
international markets through the
offerings of the best quality coffee
 Flexible policies which helps in the
future expansions of the organization in
the different legislations
Threats
 The threat of new entrants is faced by
the organization while operating in the
international markets
PEST analysis of the organizational expansion
Political Stability of the political climate in Australia
contributes to the significant growth of the
organizations over the last two decades. An
expected representation of 32% in total value of the
consumer food service is expected by 2017. On the
other hand, the establishment of the Australian
Competition and Consumer Commission (ACCC)
has facilitated in providing a fair ground where

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business and consumer rights are equally
considered.
Economic Australia economy demonstrates an annual average
GDP growth rate of 2.9%. Apart from the financial
fluctuations the country has better accomplishment
compared to the other developed nations due to
appropriate positioning of government funds. The
expansion of the economy of the nation has helped
in the expansion of the organizations, which resides
within the economy. It has also helped in bringing
forth developments in the position of the nation
among the world units.
Social Diversity in the regions of the nation has affected
the understanding of the organizations of the
preferences of the consumers while operating in the
concerned markets. Australia comprises of an
organized social movement relating to ethnic and
racial priorities. The growth of the organizations in
the market of the nation is dependent on the
identification of the preferences of the consumers
and the manner in which the needs of the same can
be satisfied.
Technological The implementation of the different technological
implication has helped in maintaining the cost
reduction, high quality and wider connectivity to
the international market. The advancement in the

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technology has helped in maintaining the different
levels of changes in the system of the business
while operating in the international markets.
7. Risk analysis
The analysis of the risks that might be faced by the organization while undertaking the
expansion of the business will be helping the business to make the important assumptions and
thereby formulate strategies for the proper functioning of the business per the objectives of the
same. The different risks that are recognized by the organization while undertaking the
expansion are Banking risk, Travel risk, By-law compliance risk and Brand recognition risk. The
enumeration of the different risk factors will be helping the business in conducting a safe
processing of the business operations.
8. Email to the stakeholders
Dear Sir/Madam,
It is to bring to your notice that the Coffeeville is willing to expand through the Lakes
Entrance store. In this regards the team of risk assessors of the organization has put forward
different risks that the organization might encounter while undertaking the activities. The risks
that might be encountered by the organization while undertaking the expansion are Banking risk,
Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to
come up with any other risks that we might face while undertaking the expansion of the business.

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The organization requests its stakeholders to contribute to the establishment of the organization
and thereby contribute to the goals of expansion of the business.
Thanking you for your time.
Yours sincerely,
Ash
Manager at Coffeeville
9. Email to the CEO
To the CEO
Coffeeville Limited,
Dear Sir,
The following email has been sent to the stakeholders of the organization asking them for
extending their contribution in identifying the different risks that might be faced by the
organization while undertaking the expansion through the Lakes Entrance store. Here the
message is being forwarded to you for evaluation.
Dear Sir/Madam,
It is to bring to your notice that the Coffeeville is willing to expand through the Lakes
Entrance store. In this regards the team of risk assessors of the organization has put forward

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different risks that the organization might encounter while undertaking the activities. The risks
that might be encountered by the organization while undertaking the expansion are Banking risk,
Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to
come up with any other risks that we might face while undertaking the expansion of the business.
The organization requests its stakeholders to contribute to the establishment of the organization
and thereby contribute to the goals of expansion of the business.
Thanking you for your time.
Yours sincerely,
Ash
Manager at Coffeeville
10. Summary of the events
 The assessment of the risks that might be faced by the organization while undertaking the
expansion
 The risks being communicated to the stakeholders via email and thereby asked for their
assistance
 Forwarded the email to the CEO of the organization for further evaluation and thereby
undertake complete communication

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Assessment 2
Part 1
Coffeeville business review
The Coffeeville Company is highly famous in the Australian market because of providing
high quality coffee with customer satisfaction. The company has chain of cafes across Australia
mainly in the Central Business Districts of Brisbane, Queensland, Sydney and NSW. It can be
seen that the company operates in the major cities of Australia. The mission of the Coffeeville
Company is to serve competitively priced and high quality coffee as well as maintaining a good
image by keeping focus on the food safety and the comfortable cafe style environment. The
vision and values of the company are also intertwined with the mission statement of the
Coffeeville Company and set their values primarily on the Customer satisfaction, safety and
performance excellence. In this regards, the strategic directions of the company is stapled with
the mission and vision statement of the company by putting emphasis on the improvement of the
quality of food and creating high performance in organizational activities. As a matter of fact, it
is important for Coffeeville to maintain proper management in order to protect the employees
and the customers from possible risks. Recently the Coffeeville Company is going to expand its
business operation by opening a new outlet in the Lakes Entrance. Therefore, it requires proper
understanding of the risk factors and at the same time implementing risk management plan is
essential for business operations of the Company further.
Report of risk management
Possible risks

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There are four risks that the Coffeeville Company has to deal with in order to retain its
business activities in the competitive market of Australia. The possible risks are as follows:
 Banking risk- It can be argued that theft of money is considered to be a high risk in
business. In this regards, to protect the money it is important for the company to keep a
check on the daily business transactions. In case of the Coffeeville Company this will be
a detrimental factor in order to continue its business. Ethical factors are also lingered with
this issue.
 Travel risk- There are a number of physical injuries can be happened in course of doing
jobs. Death while working can fosters a negative image of the Coffeeville Company.
 By-law compliance risk- Australia has an intense competitive market and the coffee
industry can be identified one of the mostly competitive. Market fluctuations and the loss
of reputation or brand imagery will lead towards devastation to the business of
Coffeeville Company. Violation of business laws is also included in this regard.
 Brand recognition risk- In the intense competitive market in Australia, the Coffeeville
Company has to put focus on its recognition. Besides setting up effective plan it is also
imperative to maintain proper environment inside the outlets. Not wearing MacVille
uniforms indicates lack of organizational efficiency and awkward for the customers.
Moreover, the quality of food and services has to be maintained to continue business
effectively.
Risk matrix