Diploma of Leadership and Management: MacVille Cafe Risk Report

This report presents a comprehensive risk assessment for MacVille Cafe, encompassing various aspects of its operations, including financial, operational, and compliance risks. The report begins with an executive summary, followed by an introduction outlining the scope and objectives of the assessment. It identifies key stakeholders and analyzes the business environment using PEST and SWOT analyses. Detailed descriptions of potential risks related to occupational health and safety, government compliance, financial operations, and human resources are provided. Furthermore, the report includes risk matrices, management plans, and evaluation strategies. The report also addresses specific risks such as banking, manager travel, compliance, and operational risks, offering planning and implementation strategies for each. The conclusion summarizes the key findings and recommendations for mitigating identified risks. This document is a valuable resource for students studying leadership and management, offering insights into risk assessment and management practices.

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Diploma of Leadership and Management
[Type the document subtitle]
8/21/2019
Student name

Diploma of Leadership and Management 1
Contents
Assessment 1 – case study & role-play...........................................................................................3
Executive summary.....................................................................................................................3
Introduction..................................................................................................................................3
Stakeholders.................................................................................................................................3
Pest analysis.................................................................................................................................4
Swot analysis...............................................................................................................................4
Strength....................................................................................................................................5
Weaknesses..............................................................................................................................5
Opportunities...........................................................................................................................5
Threats.....................................................................................................................................5
Description...................................................................................................................................5
Occupational health and safety (ohs).......................................................................................5
Government compliances........................................................................................................6
Financial operations.................................................................................................................6
Human resources.....................................................................................................................6
Email............................................................................................................................................6
Summary notes to CEO of meeting.............................................................................................6
Conclusion...................................................................................................................................7
Assessment 2 – risk analysis............................................................................................................8
Executive summary.....................................................................................................................8
Introduction..................................................................................................................................8
Risk identification........................................................................................................................8
Risk matrix...............................................................................................................................8
Banking risk.............................................................................................................................9
Manager traveling risk.............................................................................................................9
Risk compliance by law.........................................................................................................10
Operational risk.....................................................................................................................10
Risk management plan...............................................................................................................10
Conclusion.................................................................................................................................11

Diploma of Leadership and Management 2
Assessment 3 – risk management and plan...................................................................................12
Executive summary...................................................................................................................12
Introduction................................................................................................................................12
Banking risk...............................................................................................................................12
Planning.................................................................................................................................12
Implementation......................................................................................................................12
Manager traveling risk...............................................................................................................12
Planning.................................................................................................................................12
Implementation......................................................................................................................12
Compliance by law risk.............................................................................................................13
Planning.................................................................................................................................13
Implementation......................................................................................................................13
Operational risk.........................................................................................................................13
Planning.................................................................................................................................13
Implementation......................................................................................................................13
Outcomes...................................................................................................................................13
Evaluation..................................................................................................................................13
Conclusion.................................................................................................................................14
References......................................................................................................................................15

Diploma of Leadership and Management 3
Assessment 1 – case study & role-play
Executive summary
MacVille has various café chains developed in Brisbane and Sydney. The purpose of risk review
is to accomplish the objective of rebranding Hurley café in Toowoomba. The political factor
includes elements like import tariff, which could be a risk or responsible for increase in raw
material is for the company like import of espresso machine for the cafe. Changing consumer
preferences, this could decrease the consumption of coffee or change in culture of going out and
having coffee with friends and family. The risk identified are associated with government
compliances, financial operations, human resources, and occupational health and safety
Introduction
The instruction provided by the CEO to investigate the operations of MacVille café at
Toowoomba. Through investigation, the key purpose is to understand the internal and external
environment, through which the positive and negative aspects of the business will be identified,
to assess the requirement for change and area of improvement while understanding the risk
involved in the business operations that could be minimized. As per the case, MacVille has
various café chains developed in Brisbane and Sydney. The purpose of risk review is to
accomplish the objective of rebranding Hurley café in Toowoomba.
The major goal from this expansion of business is the growth of the business that is increasing
the profit margin for the company and increase the brand of awareness so as to increase the
number of customers for the business. Another goal is to search for possible risk that could affect
new store opening and the actions could be planned before the actual happening of the risk
identified. The risk discuss in the report will be the internal and external risks (Ipsen & Nielsen,
2017).
Stakeholders
Either stakeholders of the company are people associated with the business that are getting
affected and are influencing the conduct of business positively or negatively, they will also
influence the expansion project of the company (Bailey, 2018).
Stakeholders Internal/external Role in process Stake in process
Customers External None Enjoy similar quality
or improved food
and coffee.
Board of directors
and shareholders
Internal  Decision-
making.
Supportive
and
Macville’s
commercial
performance

Diploma of Leadership and Management 4
appraising
CEO’s
performance
 Liable to
stakeholder
for the
corporate
performance
The assistant
manager
Internal Managing the risks
and operations
A smooth shift of
Toowoomba store.
CEO
(Paula Kinski )
Internal Manage every day
operations. Account
to the board of
directors
Macville’s corporate
performance
Current supervisor
(James Mansfield )
External Second incharge by
MacVille
Stayed accessible for
the second incharge
All existing staff External Hurley’s café
existing employee
Secure employment.
Legal firm
(goldsmith partners)
External Legal advice It will support with
legal or compliance
problems.
Pest analysis
Pest analysis is one of the strategical tools that include four factors of a nation that will affect the
business of the organization, which could also reflect the threat or potential risk for the company.
The political factor includes elements like import tariff, which could be risk or responsible for
increase in raw material is for the company like import of espresso machine for the cafe. The
threat of possible imposed carbon taxes that are used by commercial organizations on energy
intensive products. Considering the economic factors the risk includes for the company is
Australian dollar strength in exchange for trading partners in future (Read, 2013). Considering
social factor the lifestyle trend could increase the opportunity for the company instead of being
risk that is increasing coffee culture that is to have coffee and snacks inner please more
frequently. Moreover, population growth of the nation could be another opportunity factor.
Considering technological factors could be opportunity for the company as with the use of
technology 30% energy will be used lesser in case of new espresso machines. For this home
market is found to be experiencing high growth (Ho, 2014).
Swot analysis
Swot analysis is one of the strategic tools to assess internal risk of the company this will include
strength, weakness, threats, and opportunities for the company while investing in business
expansion.

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Strength
 Store location of the cafe that is a corner point of two popular streets, which make the
accessibility and visibility for tourist easier
 Store central location and access to public transport that is bus would attract a large
number of customers.
 Human resource of the cafe that is chef at the priority is the one who is responsible for
various popular and innovative varieties of rice wraps that are likable by the customers in
the terms of health, taste and quality which was one of the competitive advantages as
other cafes within the location were not offering the same (Hunt & Bicen, 2017)
Weaknesses
 Lack of use of technology in the procedure is that is manual procedures were done in the
store
 Not all the takings by family staff members from the cash to disturb were recorded for the
accounting purpose, which reflects wrong financial outcomes.
 Lack of sales promotion, which could be one of the major strategies for attracting
customers (Baker & Bowen, 2015)
Opportunities
 New booking system which could be an innovative frozen system for pastries and bakery
items to be cooked fresh in 30 minutes
 Store expansion that is opening of more café chains at the centers like k mart plaza (Bull
& Sitas, 2016)
Threats
 Changing consumer preferences, this could decrease the consumption of coffee or change
in the culture of going out and having coffee with friends and family (Trivedi, 2016).
Description
The following list of risk involved issues that are a pre-existing or potential risk that may occur
while new store opening of the cafe.
Occupational health and safety (ohs)
Considering safety and health it has been identified that the furniture used are unstable and good
potentially act as though hazardous to customers or staff. The dealing process is not established
with injuries that may occur within the organization. It has been identified that there were lack of
compliance standards on occupational health and safety and lack of internal control, safety, and
privacy, professional business culture was lacking and the business was not monitoring the
threats and opportunities to the business, which could also include various external risk
(Abdulraheem Sal, 2016)

Diploma of Leadership and Management 6
Government compliances
The risk associated with government compliances include fine for use of excessive water
breaches, where the potential fine is around $50,000 (Ayers, 2017)
Financial operations
The risk associated with financial operations includes the logistic time in procuring supplies,
which could be one of the risks. Another risk identified is the store lack of safe for monetary
purpose, which could increase the risk of theft. The company like shutters, alarm system within
the cafeteria considered no additional security measures (Birasnav, 2014)
Human resources
Considering risk associated with the human resource is lack of enough competencies to retain the
customers as cafe is service business where human resource is the major resources used to attract
customer while offering special services like happy staff. Lack of human resource recording is
another risk associated as the amount of employee that was based on number of hours worked by
an employee. Lack of technological uses, which do not include all the employee details protected
and use of right payment procedures were also a major risk for the company (Kaplan, 2015).
Email
Summary notes to CEO of meeting
 Key issues identified in business
 Explanation of issues to CEO and get the acceptance
 Stages to manage the issues
 Authority granted by CEO to new manager
 Sanctioning of further investigation and go with original plan.
The stakeholders
Sub : understanding of various stakes at work
Dear Sir
This is to inform you that the new store of MacVille is going to be establishing at
Toowoomba and some issue through the processing has been identified considering conduct
of business of the company, for which the solutions have been assessed. Please contact
MacVille management for the further details and whole situation analysis.
Thanking you
The manager
MacVille café

Diploma of Leadership and Management 7
 Critical success factors – brand recognition, increase in sale of café, and customer
satisfaction
 The risk identified is associated with government compliances, financial operations,
human resources, and occupational health and safety
 Risk management plan will include risk identification, looking for various risk
management options, and risk managing action plan.
 Input on risk by CEO includes financial and brand reputation al risk.
Conclusion
From risk review report, it can be concluded that the risk identified is associated with
government compliances, financial operations, human resources, and occupational health and
safety, which must be considered for evaluation and analysis and mitigated through managing
plan.

Diploma of Leadership and Management 8
Assessment 2 – risk analysis
Executive summary
The potential risk for the café or new store strategy, risk will be analysed and the risk
management plan would be prepared in the report further. The risk will be analysed by defining
them based on likelihood, consequence, priority and options. For each risk on the priority basis
will outline the possible options for managing or mitigating the risk. The manager’s travel risk is
high, banking risk is medium and by-law compliance risk is low.
Introduction
After assessing the internal and external factors of the company that are associated with the
potential risk for the café or new store strategy, risk will be analysed and the risk management
plan would be prepared in the report further. Therefore, the purpose of the report for this section
is understanding the consequences priority of the risk identified in the previous section in order
to prepare a risk management plan for the same (Veron et al., 2019).
Risk identification
The risk will be analysed by defining them based on likelihood, consequence, priority, and
options. For each identified risk the likelihood of the occurrence of the rest will assist that full
score on one as low, to as medium, three as high, four as extreme. Consequences for each
identified risk will be analysed through the occurrence of risk on the scoring of insignificant, a
minor, major, catastrophic. After assisting the consequence and likelihood of the risk this will be
integrated to define the priority rating which will be rated as very low priority to extreme
priority. For each risk on the priority basis will outline the possible options for managing or
mitigating the risk (Pappas, 2016).
Risk matrix
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant
[1]
1 2 3 4
Minor [2] 2 4 (Risk
compliance by
law)
6 (Operational
risk)
8
Major [3] 3 6 (Banking risk) 9 12
Catastrophic
[4]
4 8 (Manager
traveling risk)
12 16

Diploma of Leadership and Management 9
Banking risk
The first risk identified as the banking risk, which could arise from the lack of monitoring and
controlling process of financial records of the store and the improper methods of cash keeping
within the organization. The rules and regulations are not implemented properly considering cash
deposit every day, sales records and cash payout, prevention and detection and control are also
identified to be fraudulence (oxfam, 2019).
Considering likelihood factor the possibility of cash theft is the medium, which could not happen
every day, and usually some amount was placed in the organization in the cash register
overnight.
As per the consequences, there are chances of theft of more assistance and considering to break-
in attempt by the robbers. Moreover, a consequence also includes fraud activities with the staff
of the company can steal money as the consequence of lack of proper financial record keeping.
The financial risk involved could be minor as per the classification. However, it may influence
the employees largely that could possibly cause injuries (Amicelle, 2016).
Considering the priority list, it is said that the consequence of the risk is major with six ratings
and risk priority is classified as medium.
The possible options for this risk assessed are ensuring cash holdings overnight, switching to the
nearest bank in order to diminish the traveling risk and distance while carrying a large amount of
money. Lastly, setting the regulations and rules for financial purposes like every day sales and
elimination of requirement for carrying cash overnight and considering minimum amount to
carry.
Manager traveling risk
This risk is associated with the geographical location of the branch that is Toowoomba that is the
regional location. The risk associated is related to safeties while traveling in unsuitable light
conditions especially in night or during evening.
The possibility of the rest considering likelihood is the medium which is majorly included the
rest from driving between two Toowoomba branch and headquarter in Brisbane for every week
conference which is usually ended in late night or in evening.
As per the analysis since the consequence includes hazardous of injury and life the classification
of consequence is catastrophic. Moreover, the priority for the risk identified with the rating of the
integration of consequence in likelihood is eight and the priority is classified as high.
The possible options for the risk assessed are finishing the meeting on time maybe in daytime,
use of teleconferencing system, switching evening time to morning session (Lawrence, 2015)

Diploma of Leadership and Management 10
Risk compliance by law
The risk associated with the compliance by law is re-formation of council legislation considering
the water used as classy found not to be compliant to this legislation declared by the local
council. There is a medium risk as per the likelihood of the occurrence of risk because moderate
threats are present to the society and penalty imposed on the company by local council in case of
exceeded what is useful.
Consequence assess is classified as a minor which arise from damage in brand reputation,
insufficient resource allocation and penalty imposed by the local council.
From the integration of consequence in likelihood rating is four for which the priority is
classified as medium.
Options for risk management include installing a water tank for rain water conservation,
installation of native plant for controlled use of water consumption, use better technology to
become more water efficient (london, 2019).
Operational risk
The risk associated with operations, include all the work that is to be conducted in every day
management. Moreover, from the previous analysis it can be said that the human resources and
the available competencies was one of the issues that may affect the operations, and processing
at new location.
The likehood of this risk is quite high, however it can be managed immediately, which reflect
that the consequence is 6. It is classified as consequence as it affects operational process of the
business.
Some of the options for the risk identified include technological up gradation that is use of better
technology. Another option would include training and development program, in order to assure
that the employees are competent enough to control the everyday work effectively. Another
option include recruitment and selection, that is recruiting people for café at new location in
order to fill the competencies gap.
Risk management plan
Risk Assess risk
(l, m, h, e)
Controls Monitoring Timelines Responsible
Manager’s
travel risk
High Activities should be
completed afore 3 pm,
so doesn’t have to
travel at uttermost
hours
By scrutiny
the
conference
times
Opening
week
CEO, the new
policy
Banking
risk
Medium Depositing the cash in
the bank each day
By
attainment
Opening
week
Financial
controller

Diploma of Leadership and Management 11
the weekly
bank report
By-law
complianc
e risk
Low Teaching the
personnel about the
operative use of water
By inspection
of the water
use bills
regularly
Within 3
month
Goldsmith
partners
Operation
al risk
High Training and
development
Performance
appraisal
Within
next 2
months
Human resource
manager
Conclusion
From the risk assessment task, it can be concluded that the risk was analysed by defining them
based on likelihood, consequence, priority and options. The manager’s travel risk is high;
banking risk is medium and by-law compliance risk is low; and operational risk is high.