Macville Expansion: Risk Analysis, Stakeholder Communication

This report assesses the risk management framework employed by Macville, a cafe chain in Australia, as it plans to expand its business through acquisition. It evaluates the effectiveness and scope of the risk management strategies, identifies critical success factors, and outlines internal and external stakeholders and their roles. A SWOT and PEST analysis provides context for the expansion, followed by a risk analysis identifying banking, travel, by-law compliance, and brand recognition risks. The report includes email communications to stakeholders and the CEO, seeking their input on potential risks. The second part includes a business review and risk matrix for the Macville business. Desklib offers this document and many other resources like past papers and solved assignments for students.

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the student
Name of the university
Author note

1RISK MANAGEMENT
Assessment 1
1. Introduction
The Macville has chain of cafes across Australia mainly in the Central Business Districts
of Brisbane, Queensland, Sydney and NSW. The identification of the different risks that are
indulged with the undertakings of the organizations helps in the proper management of the
business concern. The different strategies that were applied and the manner in which the
manager of the business communicated the different risks with the stakeholders and the CEO is
the major concern for undertaking the report. The assessment of specific risk factors that might
be faced by the organization while undertaking its expansion in the international markets helped
the same in formulating the strategies. The report will focus on different managerial approaches
that might be undertaken by the business while making the business expansion.
2. Effectiveness of the risk management framework
The risk management framework that is confirmed by the organization is dependent on
the establishment if sound communication strategies for the assessed risks and thereby facilitate
the modifications in the systems. The strategies that are designed by the organization helped to
mitigate the issues that the business might face while undertaking the specific activities. The
policies and regulations that are created by the business relating to staff satisfactions will be
helping the organization to build on the enterprise. On the other hand, the different internal and
external audits on risk assessment helped the organization to create different strategies for
avoiding varied unfortunate circumstances related to lower staff turnover and productivity of the
business. The monthly reporting systems of the organization helped the same to keep their
strategies updated with the situation of the organization in the market.

2RISK MANAGEMENT
The risk management framework, which is created by the business, will be helping the
same to assess the levels of risk while considering the current expansion through acquisition of
the new store. Evaluation of the monthly budget and reporting systems will be helping the
management of the business to assess the risks and thereby bring forth changes in the methods of
the business.
3. Scope of the risk management strategies
The scope of the risk management strategies that are undertaken by the business is
limited to the identification of the different levels of changes in the systems of the business. The
assessment of risk will be dependent on the evaluation of the market and the different
preferences of the consumers.
4. Critical success factors
The success factors of the risk assessment will be dependent on the identification of the
levels of risk that might be faced by the organization while undertaking the expansion. The
critical success factors are dependent on the efficiency of the assessment that are undertaken by
the evaluators of the risk management systems that are imposed by the organization. The
evaluation will be helping the risk management systems of the business to undertake the smooth
functioning of the business while operating in the markets.
5. Identification of internal and external stakeholders
Stakeholders Internal/ External Role in the process Stakes in the process
The employees Internal Identification of the
change that is
implemented by the
organization and
Employability of the
employees are
dependent on the
profitability of the

3RISK MANAGEMENT
making continuous
efforts to achieve the
target of the
organization
business
The investors External Making investments for
facilitating the smooth
functioning of the
business as per the
objectives of the
expansion
The investments that are
made by the investors
and rate of returns to the
same depend on smooth
performance and
profitability of the
business.
The management Internal The involvement of the
management and the
strategies in which the
expansion can be
undertaken helped the
organization in bringing
forth changes
The involvement of the
management of the
business enterprise
helped in enhancing the
functions of the
organizations.
6. SWOT and PEST
SWOT analysis
Strengths
 Premium quality of the products
 Easily accessible store and outlets
Weaknesses
 Lack of knowledge on consumer
preferences which affects the

4RISK MANAGEMENT
 Reputation and brand name
 Smooth functioning of risk assessment and
management teams
satisfaction of the same
 Lack of integration between the
different departments
Opportunities
 Expansion in the different international
markets
 Flexible policies of the organization
which helps in the sustenance of the
business in the different economies
Threats
 The threat of new entrants in the market
PEST analysis of the organizational expansion
Political The establishment of the Australian Competition
and Consumer Commission (ACCC) has facilitated
in providing a fair ground where business and
consumer rights are equally considered. Stability of
the political scenario in Australia has helped in the
significant growth of organizations.
Economic The expansion of the economy of the nation has
helped in the expansion of the organizations, which
resides within the economy. It has also helped in
bringing forth developments in the position of the
nation among the world units. The financial
fluctuations of the world have affected the
functioning of the organizations in the country.

5RISK MANAGEMENT
However, the nation faces better accomplishment
compared to the other developed nations due to
appropriate positioning of government funds.
Social Diversity in the regions of the nation has affected
the organizational capabilities of identifying the
preferences of the customers while operating in the
markets.
Technological The implementation of the different technological
systems helped in maintaining the cost reduction,
high quality and wider connectivity to the
operational market. Technological innovation has
enabled changes in the systems of the business. .
7. Risk analysis
The analysis of the risks that the organization might face while undertaking the expansion
of the operations helped the same in making important assumptions and formulating strategies
for the proper functioning of the business. The risks that are recognized by the organization
while undertaking the expansion are Banking risk, Travel risk, By-law compliance risk and
Brand recognition risk. The enumeration of the different risk factors helped the business in
conducting a safe processing of the business operations.
8. Email to the stakeholders
Dear Sir/Madam,

6RISK MANAGEMENT
It is to bring to your notice that the MacVille is willing to expand its business through an
acquisition. In this regards the team of risk assessors has put forward different risks that the
organization might encounter while undertaking the activities. The risks that might be
encountered by the business while undertaking the expansion are Banking risk, Travel risk, By-
law compliance risk and Brand recognition risk. However, we request you all to come up with
any other risks that we might face while undertaking the expansion of the business through the
acquisition. The organization requests its stakeholders to contribute to the establishment of the
organization and thereby contribute to the goals of expansion of the business.
Thanking you
Yours sincerely,
Manager at MacVille
9. Email to the CEO
To the CEO
MacVille Limited,
Dear Sir,
The following email has been sent to the stakeholders of the organization asking them to extend
their contribution in identifying the different risks which our organization might face while
undertaking the expansion. Here the message is being forwarded to you for evaluation.

7RISK MANAGEMENT
Dear Sir/Madam,
It is to bring to your notice that the MacVille is willing to expand through the Lakes
Entrance store. In this regards the team of risk assessors of the organization has put forward
different risks that the organization might encounter while undertaking the activities. The risks
that might be encountered by the organization while undertaking the expansion are Banking risk,
Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to
come up with any other risks that we might face while undertaking the expansion of the business.
The organization requests its stakeholders to contribute to the establishment of the organization
and thereby contribute to the goals of expansion of the business.
Thanking you
Yours sincerely,
Manager at MacVille
10. Summary of the events
 The assessment of the risks that might be faced by the organization while undertaking the
expansion
 The risks being communicated to the stakeholders via email and thereby asked for their
assistance

8RISK MANAGEMENT
 Forwarded the email to the CEO of the organization for further evaluation and thereby
undertake complete communication

9RISK MANAGEMENT
Assessment 2
Part 1
Macville business review
The Macville Company is highly famous in the Australian market because of providing
high quality coffee with customer satisfaction. The company has chain of cafes across Australia
mainly in the Central Business Districts of Brisbane, Queensland, Sydney and NSW. It can be
seen that the company operates in the major cities of Australia. The mission of the Macville
Company is to serve competitively priced and high quality coffee as well as maintaining a good
image by keeping focus on the food safety and the comfortable cafe style environment. The
vision and values of the company are also intertwined with the mission statement of the Macville
Company and set their values primarily on the Customer satisfaction, safety and performance
excellence. In this regards, the strategic directions of the company is stapled with the mission
and vision statement of the company by putting emphasis on the improvement of the quality of
food and creating high performance in organisational activities. As a matter of fact, it is
important for Macville to maintain proper management in order to protect the employees and the
customers from possible risks. Recently the Macville Company is going to expand its business
operation by purchasing and rebranding the existing Hurley’s Cafe at Toowoomba in Brisbane.
Therefore, it requires proper understanding of the risk factors and at the same time implementing
risk management plan is essential for business operations of the Company further.
Report of risk management
Possible risks

10RISK MANAGEMENT
There are four risks that the Macville Company has to deal with in order to retain
its business activities in the competitive market of Australia. The possible risks are as follows:
 Banking risk- It can be argued that theft of money is considered to be a high risk in
business. In this regards, to protect the money it is important for the company to keep a
check on the daily business transactions. In case of the Macville Company this will be a
detrimental factor in order to continue its business. Ethical factors are also lingered with
this issue.
 Travel risk- There are a number of physical injuries can be happened in course of doing
jobs. Death while working can fosters a negative image of the Macville Company.
 By-law compliance risk- Australia has an intense competitive market and the coffee
industry can be identified one of the mostly competitive. Market fluctuations and the loss
of reputation or brand imagery will lead towards devastation to the business of Macville
Company. Violation of business laws is also included in this regard.
 Brand recognition risk- In the intense competitive market in Australia, the Macville
Company has to put focus on its recognition. Besides setting up effective plan it is also
imperative to maintain proper environment inside the outlets. Not wearing MacVille
uniforms indicates lack of organisational efficiency and awkward for the customers.
Moreover, the quality of food and services has to be maintained to continue business
effectively.
Risk matrix

11RISK MANAGEMENT
Catastrophi
c
5 10 15 20 25
Significant 4 8 12 16 20
Moderate 3 6 9 12 15
Low 2 4 6 8 10
Negligible 1 2 3 4 5
Improbable Remote Occasional Probable Frequent
Treatment
Based on the understanding regarding the intensity of the risk factors it can be
argued that a series of necessary measures have to be implemented in order to mitigate the
organisational risks in Macville Company. The first treatment can be identified as the business
rules and regulations for the Macville Company employees. In other words, to keep the
organisational activities flawless the Macville management has to implement some code of
conducts that the staff are compelled to follow. The next treatment is referred as the measures
regarding brand recognition. Both the marketing and the organisation tools are required in order
to build strong brand recognition.
Explanation
For identifying the risks and implementing an effective plan, the management
must have proper risk management strategies. It can be estimated that the first step will be
identifying the risks and then taking a deep investigation on the degree of risks. Based on this