Coffeeville Business Analysis: Sales, Expenses, and Strategies

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BSBINM601
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Contents
Assessment 1...................................................................................................................................3
Assessment 2...................................................................................................................................7
Assessment 3.................................................................................................................................12
Assessment 4.................................................................................................................................18
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Assessment 1
6.
The major issue and problem which is increasing in the environment of Coffeeville is that their
expenses are increasing in comparison of their sales. From the last three month the organization
is facing this issue which is rising the expenses of their organization. In the year of January 2016
the several stores of the organization also got closed for a summer break which became a cause
of loss for them.
7.
The data and information which has chosen for this information is real and based upon the
business performances of Coffeeville. The level of sales was decreased for the organization. As
per the year of 2015 in the first six month in all the stores if Coffeeville. The entire sales of food
of this organization are also decreased with 10% and the sales of beverages also reduced with
12% also the catering decreased with 17% (Sekaran and Boguie, 2016).
8.
The major business problem which is found in the environment of Coffeeville is their increased
cost and decreased sales. The organizational expenses are increasing rapidly and it is making a
higher level of cost for their organization. The potential reasons which are responsible for their
reduced sales could be the quality of their coffee and beverages that which need to be improved
by the management of this organization. The actions which need to be taken by the management
in terms of taking the decisions are:
 The sales performance of last six month
 The potential cause of involved problem
 The solution for reducing the relevant problem
9.
The information that are relevant with the respective organization is in formal and informal
network. The decision makers of this organization can take help from the formal and informal
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networks in order to gain the information regarding the problems which are increasing in
Coffeeville. The following are the networks that can help:
 Industry network: The industry networks are able to provide them better level of
information which can help them to make a perfect comparison within the industry.
 Internal business networks: The internal business networks are refers to the internal
business relation of employees and it can provide the idea to the decision makers about
the potential issues.
 Social media or internet communities: It is having the ability to provide the various
kinds of data and information for reducing the impact of potential issues which are
enlarging in the organization.
10.
Report
Introduction
The below report would provide the information about the potential issues which are rising in
Coffeeville. It will also provide support to understanding about the data and information which
are used for collecting the information about the problems (Marchewka, 2016).
Business issues that were identified
The major issue which is increasing in the organization is their reduced level of sales and
increased expenses. From last 6 month they are facing the issue of increased expenses of the
organization which is not good for them as it is affecting the overall operations of this
organization. The data and information which were used to analyzing the potential problem is
company’s financial statements in which the expenses are increasing rapidly. The sources and
data which are required in order to collect the information about the impact were:
 The financial statement
 The social media
 Internal relationship of the employees
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From the above sources the social media activities and the financial statements of the
organization could be selected for the decision making process. The social media can provide
help to the decision maker to understand the depth of issues and the financial statement of the
organization can provide support to understanding the numerical appearance of the issues
increasing in Coffeeville.
The formal and informal networks were used for the research and social media activities
increased the overall information regarding the issues included in the organization.
The followings are type of formal and informal networks that can provide support in information
gathering
 The interrelationships of employees
 Social needs
Conclusion
The above report analyzed potential problem that is increasing in Coffeeville. The technique
which was used for testing the validity and reliability of data was graphical representation of
data.
11.
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Assessment 2
1. What are your objectives for the analysis process you plan to undertake?
The SMART objectives could be used for analysis the process of the organization. These
objectives can rapidly provide the enlargement in the business strategies of an organization. The
five elements of SMART objectives can help in the analysis process and can help to undertake a
plan or strategy. These elements are as follow:
Specific: The goals must be defined in a well organized way and should be focused as well. It is
important to make a focus on goals for making them achievable for the organization.
Measurable: The goals need to be measurable and its outcomes also need to me measurable for
knowing the level of outcomes for the organization. The numbers are an important part of
business and the outcomes of the goals need to be measured.
Attainable: The goals could be set beyond the reach of an organization. The investors could
become better support for this.
Relevant: The management need to collect relevant data that can provide them support for
achieving the SMART objectives.
Time-based: The objectives must be time based and the management should try to make some
specific goals for a particular time period.
2. Briefly describe how management information or decision support system can assist you
when analyzing information and identifying trends and patterns.
The decision support system can collect and analyze the data and manufactures it to develop
complete report of business. The decision making process can be affected from the decision
support system. The decision making process could become more informed by using the decision
support system. The operation management department of an organization can implement the
DSS in the operations of the organization. For the upcoming revenues of the organization the
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DSS can projects it very well. The information can be present perfectly by using the decision
support system (George, et. al., 2016).
3. Briefly describe how management information or decision support systems can support
the analysis of proposed courses of actions and their impact on business.
The decision support system can collect the necessary data which could be helpful for the
organization. The massive amount of data cans advice the management about the actions that
need to be taking for the organizational enlargements. The beneficial information which can be
gathering by the decision support system is projected revenue, figures of sales and the past
information with various time periods. In the decision making process this information can be
used for taking appropriate actions and decisions (Biswas, et. al., 2016). The DSS can provide
impact on business as the information which was gathered can be used by the management in a
positive way and can influence the organizational target positively.
4. List two types of adjustments you might have to make management information or
decision support system to help you meet your stated objectives.
 Past data: The decision support system can provide better outcomes if the past
information can be collected in an appropriate way. The previous data can provide
effective decision support in the decision making process of the organization.
 Consumer information: It is the essential requirement of a DSS that it should provide a
facility which can easily present the information of consumer in an easy way. It is helpful
because it can generate the information and outcomes graphically (Landy and Konte,
2016).
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6.
The business problem which identified in assessment task one is the increased expenses of the
organization in comparison of their sales. Coffeeville is facing these issues from the last six
month and it is not a small issue for them as it is providing the overall impact on the
organizational practices (Shapiro, et. al., 2016). The trends and patterns which are connected
with the current business problems are following:
 Ineffective management: It is a reason of increasing expenses of the organization. The
lack of better management can enlarges the expenses of the organization. So, effective
management is needed for reducing the expenses of the organization.
 Wastage of resources: if the organization not uses the resources effectively than it can
become a cause of increasing the expenses.
Correlation calculation
It can be used for the numerical calculation of some kind of correlation between two parties. It is
the statistical relation between two variables. Here are two techniques of correlation calculation:
 Scatter diagram method: It is the easier correlation method that can be used by the
organization to identify the correlation between the two variables. The values of two
variables can be draw as a graph by the help of dotes. The number of observation can be
identifying by this method.
 Karl Pearson’s coefficient of correlation: The methodology can be used to devise the
degree of correlation between two variables. The method can be applied by the
researchers based upon the nature of variables (Tremblay, et. al., 2016).
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7.
Part 1- Decision/ issue name
The issue which was found in the organization is their increased expenses and decreased sales. It
is major issue which is running from last six month in Coffeeville.
Decision required
The decision which is required to increasing the sales of the organization is to hiring the
appropriate number of employees who are having the better level of experience also.
History
The issue is running in the organization from last six months. The major reason is lack of
appropriate management which is increasing the expenses of the organization.
Part 2- Analysis
The analysis which was used for the problem is Scatter diagram method which helped to present
the data and information in an easier way.
Analysis Result Implication
Marketing mix It can provide the idea of market
situations and needed steps for
taking the decisions according to
them.
The marketing mix can be
implemented as per the
situations of market and the
organization can use the four
and seven factors of
marketing mix as per the
market circumstances.
Financial Audit The financial report can be analyzed
by using the financial audit for the
organization. The major result which
the financial audit provides to the
manager is that the financial data is
It is an accounting process
which can be implemented by
the accounts department of
the organization. The
financial transactions can be
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totally accurate. evaluated in the financial
audit process of the
organization.
Personal Audit It can provide help to identify the
case study of human resource
department of the organization. It is
a type of audit which can provide an
in depended review about the
situation (Wang, et. al., 2016).
It is personal process which
can be conducted on the
personal level of the
organization. The current
state of human resource can
be identify by this.
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Assessment 3
2. Review the organizational chart
From the organizational chart of Coffeeville it can be understood that Rufus and Emma are the
owners who takes the sales and other information from the store manager and under the store
manager there are three people who report to the store manager. One is Baristas, second the food
attendants and third is cooks. The owners commands on the store managers and the store
managers commands over the staff of stores.
3.
 Do nothing: it will help Coffeeville to maintain the quality of their food services
 Reduced price of food: it will increase the number of foods and beverages services for
the organization.
4. Review risk management and business impact analysis information in appendix 3
Here are the risks which are included in the organization:
 Emergence of a competitor within very close proximity
 Food poisoning complaints from customers
 Changes in local consumers.
 Changes in local economical environment
 Reduced profitability
In the appendix 3 in the business impact analysis the emerge competitor got the rating of 3 which
is a higher risk for the organization. Food poisoning was weighted 2 changes in local consumer
got the rating of 3 which is a medium risk for the organization. changes in local economical
environment is also got the rating of 3 which means that the risk can be increased in future and
reduced profitability got the rating of 1 which means it is the higher level of risk which the
organization is facing currently. The organization need to improve the level of profitability for
making the better revenue for their association (Krishnaswamy and Blanz, 2016).
5. Review and analyze city of Melbourne demographic information in appendix 4.
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