BSBRSK501 Risk Management Plan for Mac Ville Pty Expansion Project

This assignment presents a comprehensive risk management and communication plan for Mac Ville Pty as it plans to expand its business operations. It identifies key stakeholders and potential risks associated with expansion, including underdeveloped operational infrastructure and legal compliance issues. The plan includes a PEST and SWOT analysis to assess the business environment, a communication plan to keep stakeholders informed, and a detailed risk analysis report with mitigation strategies. The assignment also provides an action plan outlining specific steps, timelines, and responsible parties for managing identified risks, ensuring the business expansion aligns with organizational goals and maintains operational efficacy.

MANAGE RISK

Introduction
The term strategic planning has often been termed as an activity related to organizational
management. The activity is used for setting priorities and focusing resources. In case of the
current assignment, Mac Ville Pty is chosen for understanding the efficacy of operational
management. The stakeholders are informed about the potential risks associated with business or
finance. The focus on resources and energy on analysis of risks can help in strengthening the
business operations such as expansion in new markets while meeting the financial demands. The
following work makes use of risk management and communication plan. The stakeholders are
properly identified and informed of the possible threats ensuring positive business outcome.
Part 1
Task 1: RISK REVIEW
a) Written report as per case scenario
i) Scope of report
The scope of current report is to determine the network of risk management, control and
governance as designed and represented by Mac Ville Pty. as designed by the management is
enough to ensure smooth function. The scope of proposed risk management is as follows:
 Risk management process is effective and important as risks are rightly identified
 Ethics and values are rightly promoted
 Operational and financial management are on time and highly reliable with abundant
accuracy
 The actions of employees are in compliance to company policies

 Resources are gained economically used efficiently and protected with care
 Plans of attracting customers to the coffee shop and even opening new branches are
achieved within stipulated time
 The quality of food and coffee served, along with the customer service are set at high
standards
 Information technology security practices are adequately implemented
ii) Goals:
The goal for risk management can be termed as follows:
Targets the geographies and market in which Mac Ville Pty is doing business in order to tap
more resources from the market
The plan additionally specifies the services and types of beverages Mac Ville Pty provides in the
mentioned market. The channels used by Mac Ville Pty to enter those markets and the
characteristics such as quality product at premium price is what differentiates Mac Ville Pty
coffee from others
The goal is built on important elements on the process, through which entity converts labour and
material into services and products.
iii) Stakeholders
Internal
stakeholders
Issues External
stakeholders
Issues
Employees The employees often
get tired due to
Consumers Lack of efficient
ethical practises

increase in work
pressure and fail to
provide optimum
work results
coupled with increase
in the coffee prices
Managers Shifting their mindset
along new roles and
communicating with
the employees
Suppliers Consistency among
the supplies made and
staying up to date
with the range of
supplies
Investors Insufficient economic
growth of the
company coupled
with increasing
pressure of debt
Government The Australian laws
demands increasing
compliance to ethical
and legal standards, a
failure to do so may
lead to cancellation of
license in business
Table 1: Issues faced by the Stakeholders
(Source: Created by the author)
iv) PEST and SWOT for the risks
Factors Impact
Political The Australian laws demands increasing compliance to
ethical and legal standards, a failure to do so may lead to

cancellation of license in business. For example, the sugar tax
in Australia can cause potential problems for Mac Ville Pty.
as they need to change their coffee recipes and adjust their
sugar content respectively. The shift of concentration from the
core competencies can cause problem in business
Economic The rate of disposable income is increasing and Mac Ville
Pty. can take advantage of the mentioned situation decreasing
the rates of debt on the company. Mac Ville Pty can
additionally enhance the level of financial input with the rise
in income reducing risks of debts
Social Coffee shops gained immense importance in the recent time
due to change in lifestyle. The increase in rates of coffee
consumption, can prove useful to the Mac Ville Pty.
Technological Technology such as software for bill payment and
maintaining business records can seem useful. However,
during the initial stage the purchase of the software can be
costly, so is the training. In order to train the employees,
investors need to spend significant amount of money. This
may lead to financial loss
Table 2: PEST analysis
(Source: Created by the author)

Strength
High product quality with better taste
Premium customer services
Weakness
High price of the coffee
Rigid policies certain outlets
Threats
High price can create a scope for competitors
to provide products at low price
Homegrown brands dominate the retail market
Opportunity
Young population
Increase in disposable income
Table 3: SWOT analysis
(Source: Created by the author)
v and vi) The overall strategy of the business proposition of Mac Ville Pty is based on the
proposition that plans to expand the existing business to Queensland. Underdeveloped
operational infrastructure is one such risk in business expansion. As stated by Sadgrove (2016),
most growing companies are concentrated on the ability to produce now that they spend limited
efforts on building operational efficacy for sustaining growth over an extended period of time.
However, the gap can be easily filled by smooth communication channels. Similarly, majority of
mergers often fail to meet the expectations associated with performance. Hence, reasonable
development with continuity to learn can be of immense use
b) Meeting details
EMAIL:
To

The stakeholders,
Mac Ville Pty, Queensland
The email is to bring your kind attention to a matter of concern. Mac Ville Pty plans to expand
business to nearby areas with increasing concentration to enhance operational efficacy in
business. The details of meeting for addressing the issues are attached below. Your presence is of
high importance for the company’s growth
Thanking you,
Financial analyst
Mac Ville Pty
Meeting or project
name
Mac Ville expansion
Meeting date 10th June 2019 Start time 11AM
Location Toowoomba End time 12.30PM
Stakeholder Employees
Investors
Managers
Minutes taken 90 Minutes
Meeting objectives:
 To expand the business to Toowoomba and ensure immense internal controls over
monitoring and even cash handling
 To capture a wide range of consumers within the market

 To make standards to meet organizational compliance and ensure professional culture in
business
Agenda and issues
Topic Discussion led by
Expanding the business Manager and investors
Limiting the financial risks Financial Manager
Enhancing the business operations Operations Manager
Table 4: Agenda and issues
(Source: Created by the author)
Action Responsible person Time
To increase financial efficacy Financial Manager 2 months
To streamline business operations Operations Manager 1 month
To ensure business expansion Marketing Manager 3 month
Communication plan
Target
audience
Key message Communication
method
Responsib
le person
Deadline
Employees Work hard to
enhance the
customer services
Face to face
communication
HR
manager
In 10 days
Customers Increase the Social media Marketing In 20 to 30 days

frequency of visits posts manager
Investors Invest in business
expansion plans
Written
communication
Operations
manager
1 week
Table 5: Communication plan
(Source: Created by the author)

PART 2:
TASK 1:
Risk analysis report:
Introduction:
The business expansion into the new areas can be termed as a risky venture. However, it can be
termed as an effective way to leverage core business growth. Nevertheless, it should be taken
into consideration it often makes use of disciplined process to assess the growth of company.
Investigation of the appropriate level of resources in alignment to the market analysis can create
a foundation for success in the chosen business
Findings and analysis
Defining the target market, often seem as a simple step. However, it becomes increasingly
difficult to understand the needs of the customers become increasingly difficult. Thus,
considering the demographics is of immense importance, coupled with the needs of target
customers. In similar regards, it can be easily stated expanding into the new markets makes use
of market research. The chosen business organization needs to develop in-depth market research.
As pointed out by Hess & Cottrell (2016), enhancing the expansion of market and associated
research can help in coping with possible financial risks. It should be taken into consideration;
much of business expansion is widely driven by the internal capabilities
Thus, it can be clearly analysed the increasing wish to expand business is often coupled with
financial risks. The lack of legal compliance is a major issue. The Australian laws demands
increasing compliance to ethical and legal standards, a failure to do so may lead to cancellation

of license in business. For example, the sugar tax in Australia can cause potential problems for
Mac Ville Pty. as they need to change their coffee recipes and adjust their sugar content
respectively. The shift of concentration from the core competencies can cause problem in
business. To ensure that the business run in accordance to legal and social compliance, it
becomes important to find the risks and analyse the level of same for better business operations.
The table given below summarizes the list of possible risks that can be observed during the
course of business expansion
Risk Level of risk Control Monitoring Timeline Responsible
person
Lack of
corporate
culture
High Training to
the newly
recruited
employees
Increase rates
of customer
visits,
satisfied due
to good
customer
services
2 to 3 months Corporate
trainer
Allocation of
resources
Medium Making
proper
planning of
resources to
meet the
organizational
Making charts
for the
resources and
the person
responsible
should be
1 month Resource
manager

needs taken care of
Legal
compliance
Low The business
organization
needs to
maintain the
level of
ethical and
legal
compliance
Decreasing
legal risks
2 months Advocate
Table 6: Risk management plan
(Source: Created by the author)
The risk management plan provides a clear idea about the possible risks. The plan additionally
specifies the services and types of beverages Mac Ville Pty provides in the mentioned market.
The channels used by Mac Ville Pty to enter those markets and the characteristics such as quality
products at premium price are what differentiate Mac Ville Pty coffee from others. The overall
strategy of the business proposition of Mac Ville Pty is based on the proposition that plans to
expand the existing business to Queensland. Underdeveloped operational infrastructure is one
such risk in business expansion. As stated by Hillson & Murray-Webster (2017), most growing
companies are concentrated on the ability to produce now that they spend limited efforts on
building operational efficacy for sustaining growth over an extended period of time. However,
the gap can be easily filled by smooth communication channels. Similarly, majority of mergers
often fail to meet the expectations associated with performance. Hence, reasonable development
with continuity to learn can be of immense use