BSBINM601: CoffeeVille's Strategic Information and Knowledge Report

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This report provides a comprehensive analysis of CoffeeVille's business issues, focusing on information and knowledge management strategies. It examines various aspects of the business, including its internal and external environment, financial performance, marketing information, and operational policies. The report identifies key challenges such as high market competition, fluctuating sales, rising expenses, and declining footfall. It assesses the accuracy and reliability of the information used for decision-making and explores the role of formal and informal networks in identifying business problems. The report also evaluates the effectiveness of current strategies and proposes recommendations for improvement, including cost reduction, enhanced training, and strategic marketing campaigns. Furthermore, it emphasizes the importance of utilizing decision support systems and SMART objectives to drive business development and achieve sustainable growth. Desklib offers a wealth of similar solved assignments and past papers for students.
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Running Head: Manage Information and Knowledge
Manage Information and Knowledge
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Running Head: Manage Information and Knowledge
Table of Contents
Assessment 1.........................................................................................................................................3
Assessment 2.........................................................................................................................................6
Assessment 3.......................................................................................................................................11
Assessment 4.......................................................................................................................................16
Title: Dissemination of information.....................................................................................................18
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Assessment 1
1) CoffeeVille is a newly developed brand but all its stores are closing due to improper
management and operational policies. In order to resolve this issue, the owners of
CoffeeVille tried to offer highest attention towards the external and internal environment.
This would be useful for the higher authority of the firm to determine its weaknesses and
intensify its strengths considerably. The business data also need to be analysed effectively
and then its declining sales might go higher and it would performance might get enhanced.
Failure to do so, might prove extremely detrimental for the organization in this scenario
among others. And the quality and cost of the products also need to be improved so as to
create an attention of the customers towards the products and only then its command might
get higher in the contending market place. To do so, proper training need to be introduced
and this may be effectual for the employees of CoffeeVille in this competitive position since
it would increase their skills. The eminence of the products would also get advanced.
2) CoffeeVille is owned by Emma Belcastran and Rufus and the business was expanding
steadily for last four years. CoffeeVille offers supreme quality fair trade coffee, cold gourmet
food, superior hot and beverages to the local citizen of Melbourne’s central business district.
The management of CoffeeVille has targeted marketing campaigns for increasing revenue.
They also want to maintain superior service standards and product quality. The management
of CoffeeVille is committed to appoint highly trained and motivated employees.
3) The performance of store 4 is the best while the performance of store 3 is worst because
external catering sales in November (21%) and December (23%) for last 18 months with
steady increasing speed. A new competitor is about to open besides the store 4 in coming
February 2016. Within last 12 months several promotional and advertising campaigns in the
local area.
4) The marketing information of CoffeeVille includes great service and coffee. The menu of
CoffeeVille includes Richmond including healthy salads. Service quality of CoffeeVille is
committed to make the customer happy. According to summary customer comments
Facebook Jan-Dec 2015.
5) Operation manager of CoffeeVille is Rufus who operate bookings for corporate Christmas
parties between November and December. Emma as marketing manager usually make phone
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Running Head: Manage Information and Knowledge
calls to the clients or sometimes personally visit with previous clients for rebooking. Sarah as
a store manager appointed 20-30 skilled employees for formal Christmas party. The diner
trade is raised due to higher residential occupancy near store. Meeting process includes hot
food sales down that inspire higher wastage. The management has a preference for salads and
sandwich bar. Received queries about getting several options added to the menu.
6) Sales manager at department store said retail sales are sluggish compared to this time last
year. Lots of the people view the products but buying rate is very less. Hoping it will pick up
soon. Besides that, lots of general chatter about economic concerns, terrorism, home interest
loan rates possibly going up after Christmas. All these issues inspire general feel of the
customers is negative. High competition around the local area. Another issue is high
employee turnover of few stores.
7) The information is accurate as the average spending in the year 2011 and 2014 remained
higher and i.e. $3.35 and $3.85 and the variance becomes 15% and this shows that the
expenditure of the company is rising. But, unfortunately the purchasing power is not
increasing and so the reliability is not uplifting accordingly. Therefore, these issues need to
be sorted in order to lift the income of the concern in the following years.
8) One of the critical issues of CoffeeVille is rapid competition that can reduce the
competitive advantages. In this way, feedback of the customers is one of the main source by
which CoffeeVille can gather essential information to formulate effective decision.
9) Both formal and informal networks are helping to analyse the business of CoffeeVille. In
this way, business problems are mainly determined by informal networks. Social networks
are one of the effective media that can help to determine personal thoughts and opinions. This
would be the most advantageous method to increase the growth of the business in the coming
era. If not, then CoffeeVille would not be able to prosper in the world and its expenditure rate
might go on increasing day by day. Therefore, in order to attain a good place, the
management and employees need to act uniformly so as to develop a strong foothold in the
market.
10)
Introduction
According to the report, few business problems are identified in the case scenario of
CoffeeVille, for example, high market competition and high price of the food products.
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Discussion
After conducting a survey, most of the respondents agreed that CoffeeVille offers high
quality products with high price tag. Conclusively, Rufus and Emma should consider this
issue for long-term sustainability. In order to formulate effective decisions, both Emma and
Rufus need to reduce the price of products to minimise this business issue.
Conclusion
To test the reliability and validity of the information, CoffeeVille should apply a qualitative
marker survey. In this way, qualitative or secondary data is collected and primary data was
rejected due to contradictory method.
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Assessment 2
1) In order to increase the profitability and revenue of the firm, the owners approached. This
is done in order to reduce the rise of extra expenses so as to enhance the prosperity. However,
to do so, the issues aroused within the last three months need to be minimized so as to create
a separate position for the company itself in the market as compared to others. Failure to do
so, might prove troublesome for the organization to retain itself in this competitive scenario
among many others. Apart from this, the external and internal environment need to be
evaluated effectively so as to increase the presence of the firm in the market. Only then, the
weaknesses may be evaluated and the strengths might be improved considerably. This would
be worthy for the organization in the coming era.
2) The owners of Coffeeville have expanded their business. Therefore, the company has
profitable business and also gradually increasing their business for last following 4 years. The
business expenditure has started to increase and annual sale has been fluctuated. Coffeeville
has started to different issues of the rising expenses through their developed and evaluating
procedure as well as work preparation within an effort for reducing cost in the last 3 years.
The efforts of Coffeeville have not consumed the noteworthy impact over the expenditure
and also their sales revenue has been increased gradually. The leader have enquired to assist
them to breakdown their business action and furthermore the external environment for
identifying the budding reason for their declining turnover.
3) The financial condition of Coffeeville situated at superior states that means in every year,
the income growth has been increased. Therefore, the productivity of Coffeeville has
enlarged with the workforce capability to help the customer and the growth of production
have increased. As a result, the payroll expenses has been increased in last 6 years and cost of
goods has been balanced by the increasing wages and food price. As per mentioned chart in
appendix 2, comparison with the month of December, the total income raised at $119, 791 in
July, and also net profit has been increased at $10,832. According to the budget, in 2015,
from January to July, total income of Coffeeville has been fluctuating at -16% and also total
expenses have been fluctuated at 2.10%. Besides that, total sales includes food sale, beverage
sell and external catering, which has been increased in July, 2015 compare to last 5 years.
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4) By analyzing research review, the business and general detailed information is available
over the website of Melbourne. Therefore, two main areas are mainly placed at website.
According to Reserve Bank of India, the interest rate is constant in last 12 months of the year
2014 as well as in 2015, the interest rate also same in 2015. Moreover, the rental rates per
square meter or gross average rent has increased at $7000, compare to last year of 2013 to
2015 at Melbourne CBD. Therefore, the researcher showed that property investor and
developers are usually facing the reduced returns and the unreliable future while commercial
property market stall. In addition, many small and medium business is leaving of CBD
toward its suburbs and fringes. The annual research report showed that there are many factors
against the business movement including the cost changes and saving in the manner people
are also working. Besides that, the researcher also stated that 85% of the business that leaving
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Aug
Sept
Oct
Nov
Dec-14
Jan-15
Feb
Mar
April
May
June
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Store 2 Forecasted sales 2015-16
Food sales
Beverage sales
External catering
July Aug Sept Oct Nov Dec-
14 Jan-
15 Feb Mar April May June
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Store 2 - Forecasted net profi t 2015-
16
Net profit
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of CBD in this last financial years and has relocated to the properties within the area of the
company. Doing So, might prove effective in improving the professional position and brand
image as compared to many others.
5) In order to, Coffeeville should working on the plan for hitting their business development
goals as well as their smart objective for conduct their profitable business. Therefore, the
distinct sale based over smart objectives increased the annual income and succeed business
development. After deciding which thing to measure, improve and monitor, an efficient
things are to complete the quality objective actual within addressing that what requires to
improve. In this way, the business objective of Coffeevile should plan to be SMART that
define as specific, measurable, achievable, realistic and time based. Those elements should
have significance on entire level of the company, which means that every employee must
realize how their work support gathering the quality objective. The major step needed while
executing those smart objective of Coffeevile is to conform that the management is not only
connected to the applicable individual, but every employees understand his or her own
involvement. Moreover, the leader of coffeevile would also require to utilize the social media
for promoting their blogs and also lead the generation offer. The management of Coffevile is
perhaps getting the image of business procedure and the business objective that the business
authority can set the financial budget and tactics. In addition, the efficient objective that the
company set for their business where the leader have to be at the end of the upcoming
financial year.
6.
TRENDS CAUSES EFFECTS
New companies
moving in.
CBD predicts real estate
growth.
Increase in demand of foods and
beverages.
Decrease in food
sales.
Declining footfall across all
stores. Decline in revenue.
New cafes opening.
Increase in demand for quality
products. Decline in market share.
Rise in residential
vacancies.
Low return for residential
projects. Decline in residential market.
7. The owner of Coffeville is Rufus and Emma. Therefore, this company has four stores. The
company earn efficient annual profit for their business procedure.
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Running Head: Manage Information and Knowledge
July Aug Sept Oct Nov Dec
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
Chart Title
Food sales Beverage sales External catering
Total income Total expenses Net profit/loss
8. Decision Support Systems or management information is the computer-based data system
which help an organizations create the better decisions through providing the flexible tools
for an analysis of their information and also identifying business pattern and trends. As well,
this directly helps to business professional and managers by providing the interactive
information support in the decision making procedure, from problem recognition toward the
implementing decision of Coffeeville.
There are different approaches, technologies and techniques for the development and design
of management information system. The impact of decision support systems are applied on
the decision making and planning strategies.
Coffeeville is enhancing their ability to survive in competitions of new global market. The
leader of Coffeeville is attempting toward advance their agility level through improving a
decision making processes to more highly effective and efficient to meet consecutive market
instabilities. The management has concerned with the progressive cycle investments by
analysis of proposed course of action through management information system. High fraction
of the company often used the Management Information Systems to help and support the
services provision and adoption speed is probable for growing their business and also
technology expands.
Decision making system states the process of the decision making by the end result of
decision being of the secondary concern. Therefore, it is basically the two types of
adjustments that the management of coffeevile have to make management information
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system for meeting their desired business objective. As well, the first step is to communicate
and select the accurate principles to which the decisions must be followed. In addition, the
second step needs the decision maker for applying the appropriate principles. Because of,
decision making is simple to comprehend and are easy to connect to other organization.
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Assessment 3
1. To create the place of CoffeeVille in this scenario, the prices of the products need to be
introduced as per the demand of the customers. Only then, the issues may be resolved and
this may prove effectual for the company in the coming era. At the same time, varied types of
strategies also need to be developed in order to improve the performance and productivity of
the company. In addition varied types of new products such as home-packaged meals etc
need to be introduced so as to create a separate place for itself.
2. CoffeeVille is a chain of coffee shops situated in Melbourne. It is owned by Emma and
Rufus. They follow a very simple and pyramidal structure in which the lower staffs like
cooks, baristas and attendants report to store managers who report to the owners. This is a
very effective structure and lots of big corporations follow similar structure. This structure is
adequate and no rectification is required right now. But, it need to be maintained and
managed accurately. Then it would surely present positive results for the organization in the
coming future. Otherwise, the company might result in vain. Along with this, teamwork is
extremely essential to intensify the total revenue and productivity of the concern in the long
run.
3. According to the CBD report the real estate sector is predicting growth and most of the
buyers are corporates which means that new offices will come up which will employ lots of
people and will increase lots of employees will be hired who will create a demand for foods
and beverages. Coffeeville already maintains a high quality for their products. But recent data
shows that food sales are down by 10%, beverage sales by 12% and catering by 17%. Profits
have dropped by 19% and payroll expenses have risen by 10.5%. So the company must focus
on starting home packaged and meal delivery systems which will bring in much needed
revenue and will scale the business until the real estate boom kicks in and can reduce the
waste which is wasted1.
4. The biggest risks that the company is facing are in the form of complaints of food
poisoning and changes in local customer and economic demographics. The first risk can be
averted by monitoring the products closely and making sure that the quality of the products
1Fuller, S. (2015). Knowledge Management Foundations. Usa: Sage.
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Running Head: Manage Information and Knowledge
are maintained. To counter the other two risks customer demographics has sign of
improvement as CBD has predicted growth. In case of economic change the economic
development of the area is about to increase as lots of offices are about to hire a lot of
employees which is going to boost the economy of the area.
5. The residents are forecasted to grow at around 3.2% annually for the next 16 years.
Municipality of Melbourne predicts that in the year 2013 there were 116,000 residents in
Melbourne and 382,000 workers in Melbourne. This is done to increase the demand of the
products sales in the regions thereby amplifying its profit margin among many others.
However, to do so, their preferences and likings need to be identified and then the products
need to be developed. Then, it would be preferred and the sale would increase at a constant
hike in spite of other brands.
6.
12
Rufus and Emma
Belcastran Owner/
Managers
Store Managers
Baristas Food service
attendants Cooks
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Running Head: Manage Information and Knowledge
Breakfast options
Hot items
Hot beverages
Packaged drinks
$0.00 $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 $1,800.00
Estimated Growth rate
Average spend Average No. of sales per day per store
Current average revenue per day per store Proposed price reduction
7. As per the report in assessment 2 it can be inferred that the company can increase it sales
volume by offering temporary discounts and as customer demographics is changing the offers
will attract more customers and help in increasing the sales volume. Moreover the company
is facing a deficit in profit and that can be managed by launching the food delivery service
which will enable the company to tap into a new sector and generate revenue. It will also
minimise the losses faced by the company in the form of foods wasted which are not
consumed by clients who physically visit the store.
8. The negative effects that can be faced by the company is that if the company provides
discounts then the company might not be able to achieve its estimated growth of 5% to 15%.
The positive side of this is that it will generate a lot of new customers who will help in
increasing the sales volume. Another negative effect is that when the company makes
changes in its operations it must also adopt new technology into their systems for which they
need to hire tech specialists and buy hardware which can increase the operational cost. The
positive effect associated with this is that this can make the data collection method more
relevant and can help the business identify and eliminate issues that were not known earlier.
9. The decisions within an organization are entirely based as per the requirements of the
situation. At the same time, the employees and customers also need to be aware of the
verdicts of the management so as to remain a part of it. Therefore, prior making the final
decision, each and every pillars such as employee, customer and market need to be taken into
consideration. Only then, it would be fruitful for the firm to remain in the top-most position
in the market rather than others. Otherwise, it would not remain in the market and its
competing brands might take over its renownedness2.
2 Raman, (2014). Knowledge Management. Usa: Sage
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10.
12.1 Cbd report states that there will be growth in the real estate sector and most of this
growth will be from the corporate sector which will drive the food and beverage requirement
in that area. Municupality of Melbourne stated that there is predicted growth of residents in
that area so if the company launches food delivery service then they can raise extra capital
which will help them survive until the real estate boom kicks in.other than this the company
should also focus on maintaining the highest quality of their product so that they can reduce
the number of unsatisfied clients and establish a brand value.
12.3 The final authority to take decisions related to operation lies with Emma Belcastran
while the authority to take decisions regarding marketing and management issues lies with
Rufus Belcastran as they head the respective teams. If during the registration of the company
both of their roles were specified then they are legally bound to their respective departments
but if their roles are not specified then they can take decisions in all the matters. The
registration of the company gives them the legal authority to take decisions in business
related issues.
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12.4 while implementing policies which are going to change the business operations then it
should be taken care that none of the following company policies get violated in the process:
ď‚· Anti-discrimination, Anti-harassment and Anti bullying Policy.
ď‚· Equal Employment Opportunity policy.
ď‚· Performance Management policy.
ď‚· Health and safety policy.
12.5 Coffeeville strives to maintain a stronghold over the market and at the same time
increase and expand the business. They also focus very strictly on quality of their products.
Our recommendations will help them to scale their business the way they want to without
sacrificing core ethical values of the company.
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Assessment 4
2. Information is exchanged in Coffeeville in both ways. When new directives are to be
implemented then meetings are arranged between the managers and the owner who explain
the directives and how to implement them then the store managers hold meetings with the
junior staffs in respective stores to discuss the new directives. Similarly when an issue arises
or when the performance of an individual is to be analysed then information is shared by the
store manager to the managers who pass the information to the owner. So an effective way of
information already exists and employees are trained and retraining’s are also organized so as
to maintain company policies and procedures.
3. Research management information and decision support both are interrelated in the case of
CoffeeVille. In this way, the management of CoffeeVille can measure the information
management by adopting new technologies and innovations. However, cloud computing is
one of the effective technology by which, CoffeeVille can store data. Aside from that,
dissemination of information is another critical part of an organization. CoffeeVille can
implement Big data application to out souring the data. However, sharing the information can
be controlled by high trained employees for security purpose. Moreover, CoffeeVille needs to
apply latest technology like cloud computing to measure and disseminate the information.
4. Introduction
They require inventory system for calculating sales figures. The organization also need customer
relationship management system (CRM) to satisfy the customers. Both types of systems includes
many benefits for the organization.
Discussion
The management can calculate cash flow statements with the help of inventory systems. In addition,
the needs of the customers can be determined by CRM system. By following a complete installation
process, these systems can optimised the efficiency and quality of the information. Types of
information like date of sell, point of sale and customers details are needed. The accountant will
need this data to measure sales figures.
Conclusion
Designing and testing both are required to be done for achieving the goals of the organization. The
management can enhance security systems by installing 24 hour based CCTV monitoring system. The
management needs to deploy some mandatory policies and procedures to adopt changes within the
employment system.
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5.
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Title: Dissemination of information.
Date:
Project team:
Situational Analysis: SWOT
Strengths
1. Importance towards providing
quality products to the
customers.
2. Predicted growth in the area.
3. Predicted economic growth in
the area
Weaknesses
1. Competitors eating away the
business.
2. Reduction in footfall in most of the
stores.
3. Reduction in consumption of foods
and beverages.
Opportunities
1. Rise in demand of real estate
and mostly from employees.
2. New delivery companies
launching operations in the
area.
3. Growing workforce which can
create the need for more foods
and beverages.
Threats
1. Competitors launching stores just
100 mt away.
2. Slowdown in growth of customer
demographics.
3. Declining economical conditions.
Objectives
1. Focus on maintaining the highest degree of customer satisfaction.
2. Focus on maintaining the highest quality of products.
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Running Head: Manage Information and Knowledge
3. Ensuring minimum wastage of foods so as to reduce the market cost.
Goals and targets
1. To capture the demand offered by the new offices set up.
2. To maintain the same level of quality.
3. To monitor customer feedback so as to rectify the areas of need.
Communication Action Plan
Action/activity Timeframe Person/s
responsible
Resources, if required
Monitoring for quality of
foods so that food
poisoning can be avoided.
Daily Store Manager None
Monitoring the growth of
real estate in the area.
Monthly Rufus Belcastran
Emma Belcastran
CBD reports are required to
do it
Changing economic
demographics.
Monthly Rufus Belcastran
Emma Belcastran
Melbourne municipal reports
are essential
Monitoring predicted
growth
Weekly Owners and
managers
Business reports and
business data to accomplish
the action succesfully
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