Risk Management Plan for MacVille Cafe: Toowoomba Store Expansion

This report provides a comprehensive risk management plan for MacVille Cafe's expansion to Toowoomba, focusing on leadership and management principles. It begins with an introduction to risk management and its importance for business success, followed by an analysis of the external and internal environments using PEST and SWOT analyses. The report also details the roles of various stakeholders in the risk management process and identifies potential risks, such as cash handling and lack of written policies. The analysis includes the application of the AS/NZS ISO 31000:2009 risk management standard to develop a robust framework, ensuring the new venture aligns with the parent company's goals. The research methodology includes qualitative and quantitative methods like interviews and secondary data analysis. The report concludes with a discussion on strategies to mitigate identified risks and achieve long-term business success.

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Leadership and management
Name
Course
Institution
Professor
Date

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Leadership and management
Every firm seeks to manage risks associated with its business operations. Risk
management ensures that an organization can progress in its business activities by having prior
preparation on uncertainties that may affect its performance. The management of the MacVille
Café must understand the new environment of venturing before embarking on the journey. The
new location, Toowoomba store might have different requirements when compared to the home
company thus making it necessary to understand the operating and business environment. To
ensure that the new venture becomes successful, the management of MacVille will have to make
a research and perform an analysis that will make it easy to identify the main challenges thus
designing methods to mitigate them (Chee, 2014, p. 35). The risk management process will only
become successful where the parent company will work with the new venture to ensure that
business operations focus on the achievement of similar goals and objectives.
The MacVille Company focuses on expanding its business operations by broadening its
customer base. The risk management department in the company should ensure that it has an
analysis of the challenges facing the new venture and implement measures and strategies that
will have a long-term impact. Based on the principles and guidelines provided by the risk
management standard AS/NZS ISO 31000:2009, the MacVille Company will have an
opportunity to develop its risk management framework which will make the new venture
successful. The company has a risk management policy which aims at achieving success which
will also facilitate improvement in performance in its industry of operations (Bosch, 2001, p.
168). The application of the risk management standard will have a positive impact on the
business risk management framework which the organization will develop. The standard will
also ensure that there is the application of its principles in the development of the risk

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management framework. Some of the elements that will facilitate the introduction of a successful
risk management framework will include the principles outlined, attributes and objectives of a
risk management plan. The principles will aid in developing the right risk management plan
which will make the new venture success. Some of the principles will include creating and
protecting value, integration of the risk management plan with the organizational goals and
objectives, considering the cultural factors and embracing transparency and inclusion. The
consideration of the strategic objectives will also play a vital role in the development of the risk
management platform.
In the role of risk management in the new venture, the scope of the activity will revolve
around the business operations. The internal and external factors surrounding the business
operations will also become vital in determining the nature of the risk management. The risk
management framework will cover areas including the working environment, internal business
operations, customer service, form of business and the legal requirements of the government.
The risk management plan will, however, have to align with the overall goals and objectives of
the corporation. The strengths, weaknesses, threats, and opportunities of the business will also
fall under part of the determining factors for the business risk management plan.
The factors that will contribute to the success of the business risk management plan will
include the availability of resources, support by the management and the cooperation of the staff
members of the company. The application of these critical factors will ensure that there is a
success in the delivery of the required risk management plan that will see to it that the firm
becomes successful in the long term (Pidgeon, 1991, p.136). Focusing on objectives that aim at
improving the success of the business operations and achievement of long-term goals will also
ensure that the risk management activity will become successful in the future of business

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operations. Where the risk management plan receives the required support from the management
and other stakeholders, it will become essential in eliminating cases of failure. Alignment of the
risk management plan goals and objectives with those of the company will also ensure that there
is the long-term success of the risk management plan as well as the business activities.
For the success of the risk management plan, the involvement of both internal and
external stakeholders will have an opportunity to contribute. The internal stakeholders will
include the employees of the company, shareholders, and the management. The external
stakeholders will include the customers, suppliers and the community within which the business
operates. The table below indicates the stakeholders and their role in the process of risk
management;
Stakeholder Internal/ External Role in process Stake in process
Employees Internal Assisting in
performing various
activities that would
make the process
successful
Using their skills in
developing the right
and effective
strategies for success
of the risk
management plan
Skills and expertise
Customers External Express their Complaints,

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dissatisfaction and
ways through which
they expect the
business to meet their
needs
Identify business
processes that have a
positive impact on
their lives
comments, and
reviews
Shareholders Internal Express their
satisfaction or
dissatisfaction on the
returns they receive
Participate in the
decision-making
process of the
company
Express their
expectations from the
new business venture
Rating the returns and
statement of
expectations in future
Opinions in the
decision-making
process
Suppliers External Stating their
challenges in
delivering to the
Complaints
Expectations in future

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corporation
Expressing their
expectations when
performing business
operations with the
company
Management
(Directors and
managers)
Internal Providing resources
required for the risk
management activity
Providing support to
the risk management
team
Giving guidelines to
risk management plan
Managerial skills
Resources
Community External Complaining about
business operations
which affect their
lives
Commending the
company for the
activities with a
positive impact
Expressing their
Complains
Compliments

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expectations from the
business in future
PEST and SWOT analysis
MacVille Company will have to consider the external and internal environment that will
have an impact on its new venture. Below is the PEST analysis which the company will have to
consider when developing the risk management plan;
Political- The location of the new venture will not present challenges in its business
operations (Stoneburner, Goguen and Feringa, 2002). There is political stability in the region
which implies that there will be the achievement of long-term success in the new venture.
Economic- The business environment presents challenges associated with competition
and changes in tastes and preferences of the customers. Also, the tough times in the economy
will have an impact on the decisions made in the management of business operations
(Rasmussen, 1997, p.197). The risk management plan will have to consider the economic
instabilities and apply the right measures to secure the company and its business operations.
Sociocultural- The Company will have to embrace the new culture and social norms of
the people in the region of the new venture. The products and services delivered will also have to
align with the sociocultural needs of the society (Zsidisin, Panelli and Upton, 2000, p. 190). The
sociocultural environment determines the acceptability of a company by the people in a new
region of venturing. The company will thus have to consider the sociocultural needs of the new
location.

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Technology- The use of technology has become highly dynamic in the business
environment. Keeping updated with the new technology requires an organization to move with
the trend and to ensure that all its systems apply the most efficient technology (Miller, 1992,
p.320). The changes in technology will require the company to implement strategies and
measures that will have an alignment with the overall goals and objectives. The use of
technology also contributes to the success of business operations.
SWOT analysis
Strengths
 The company has a well-known brand
 The location in different parts will contribute to its success in the long-term
 Availability of resources to support the new business venture
 Adaptability to new environments and changes in the business environment
Weaknesses
 Poor management in the new venture
 New requirements for creating efficiency in the new business venture
 Increased expenses to fully establish the new venture
 Poor management of the business venture
Opportunities
 Renovating the venture in the region to succeed in attracting more customers

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 Marketing its products to broaden its customer base
 Application of cultural competence to meet the demands of the customers
Threats
 Adhering to the new legal regulations by the council of the city
 Competition from the rivals in the industry
 Support of family businesses by the Toowoomba community
The methods of research applied in acquiring the information presented in the SWOT and
PEST analysis include both qualitative and quantitative. For instance, through interviewing the
employees in the business premises at Toowoomba and the community, it became possible to
identify the strengths and the weaknesses as well as the threats and opportunities of the
corporation. Also, through interviewing the customers and the suppliers, it became possible to
have an overview of the business environment within which the firm operates (Power, 2007).
The use of other secondary sources of information including the social media and some financial
records from the bank, it was possible to analyze the external environment which affects
business operations. Other research on the risks that would affect the business operations came
from studying the trends in the market and the way in which competitors have managed to
conquer the market despite the challenges.
Based on the scenario, MacVille will have a task of ensuring that its business operations
in the new venture will yield success in the long term. Identification of some of the risks
including the new business environment and the unpredictable customer base, the management

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will have to design the right measures and strategies to implement to enhance business success
(Hallikas, 2004, p. 50). Some of the risks that the project will have to look into include;
Cash handling risks- In the current business operations, cash handling shows a loophole
that may have caused poor performance in the business. Loss and theft may take place in the
business and there is the need to devise a new method of handling cash to ensure that instances
of loss or theft do not take place (Glendon, Clarke and McKenna, 2016, p.45).
Written policy risks- The use of unwritten policies in the Hurley Café makes it hard to
identify the limits and ways through which the employees should act in their operations. The lack
of the written policies makes it hard to identify the extent to which business operations should
take place (Sadgrove, 2016, p.78). The employees may also act in different ways which may not
be acceptable but since there exists no written policy, it might become hard to identify the wrong
and the right acts.
Risks associated with handling business with more professionalism- The way in which
the business operates makes it hard to maintain professionalism and this affects the performance
of business operations (Kerzner and Kerzner, 2017, p. 108). The employees may not qualify for
the roles which they play since they may not have acquired the education levels required. The
lack of professionalism may also act as a contributing factor to the poor performance of the
corporation.
Risks related to the promotional strategy to apply in the corporation- The promotional
strategy applied by the corporation may not meet the requirements of the company (Lam, 2014,
p. 41). The strategy also does not focus on the contribution of the employees to the success of the
company.

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Email to the stakeholders
To: The CEO MacVille Pty Ltd
Cc: Shareholders, employees, customers, suppliers, community.
From: Branch Head Toowoomba venture
RE: RISK ASSOCIATED WITH THE NEW VENTURE
First of all, I would like to express my gratitude for the assistance accorded to my team in
the risk analysis process of the new venture. As a company working towards meeting the
demands of the customers and achievement of goals and objectives, MacVille Corporation
requires every stakeholder to put their efforts towards solving the challenges experienced
through its operations. The journey towards succeeding in making the new venture operational
would require each of your individual assistance (Haimes, 2015, p. 63). The project to open the
new venture grants every individual an opportunity to contribute by stating your fears,
expectations, and opinions on how to go about the process. Every comment, complaint or
compliment will be appreciated by my department in designing the appropriate risk management
framework.
Secondly, I would like to bring on board some of the risks that I have identified together
with my team. These risks require a mitigation plan that would make it possible to achieve
success using the best risk management framework (Brindley, 2017, p.52). The risks that already
identified include;
Poor handling of cash- The café does not have a proper way of handling cash which may
lead to challenges in the way in which it performs business operations.

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Lack of an operations policy- The café does not have a policy which employees follow in
the course of performing their daily operations. Every person acts in a way which they feel right
and acceptable to the community.
Failure to implement professionalism in operations- The café has employees who do not
hold the qualifications related to their roles. This may have a negative impact on the performance
of the firm if not rectified.
Promotional strategies- The café does not have a defined way in which it promotes its
employees. Some who do not deserve promotion receive it and those who deserve do not get
promoted. The challenge may affect the morale of the employees and it may also make it hard to
achieve organizational goals and objectives.
The above risks require a mitigation plan and there is the need to have a framework that
will aid in reducing or eliminating their impact. The café requires a plan that will have a long-
term impact on business operations (World Health Organization, 2017, p. 2). With your help as
the stakeholders in the company, it will become possible to have an operational branch and one
that will work towards the achievement of the goals and objectives of the MacVille Company.
Your assistance will be highly regarded and will contribute to the breakthrough of the company
in opening the new venture.
Regards,
Head of the New Toowoomba venture
Summary from the meeting with the CEO
After meeting with the CEO, these were the main points addressed;