BSBINM601 - Assessment Tasks PDF

Assessment Task 1
BSBINM601 Manage information and knowledge
Obtain information on business issues

Submission details
The assessment task is due on the unit completion date mentioned in your timetable. Any variations to
this arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for details.
Performance objective
You will demonstrate the skills and knowledge required to obtain information to identify and analyse
business issues.
Assessment description
Using the simulated business information provided in this task, and in response to a scenario, you will
source, gather and review data and information and utilise formal and informal networks to identify and
analyse business problems and issues.
Procedure
1. Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
2. Review and familiarise yourself with CoffeeVille’s general business information in Appendix 1.
3. Review and evaluate business performance data and information in Appendix 2.
4. Review and analyse customer and marketing information in Appendix 3.
5. Review and analyse management and staff meeting summaries in Appendix 4.
6. Gather, organise and evaluate the data and information provided in the appendices to identify
and analyse CoffeeVille’s potential business problem/s or issue/s.
7. Test the validity and reliability of data and information you have used to identify and analyse the
potential business problem/s or issue/s in Step 6. Check sources of information provided and
their credibility and reliability. Determine if any are ambiguous or contradictory.
8. Choose one of the business problem/s or issue/s you discovered in Step 6. Identify types and
sources of information required to determine appropriate courses of action and support decision
makers for your selected issue or problem.
9. Access and review information available through formal and informal networks relevant to the
business problems or issue. Networks could include formal and informal industry networks,
internal business networks, social media or internet communities of practice.
10. Prepare a short written report for Rufus and Emma. The report should include the following
information.
RTO: 22332 Version: 2

CRICOS: 03234B Page 1 of 17
Assessment Task 1
● A brief description of all the business problems or issues you have identified.
● An explanation of this conclusion including a description of identification of the data and

information that supports your conclusion?
● A list of the types and sources of data and information required to determine potential causes of
the problem/s or issue/s and to support decision-making for one of the problems or issues you
identified.
● Gather information from at least two sources on your list and briefly describe how they support
decision-making. Attach copies of gathered information to your report.
○ What processes or techniques were used to test the validity and reliability of data and
information you have gathered?
○ What data or information was rejected as it was deemed contradictory or ambiguous?
● Describe the formal and informal networks that:
○ assisted in identifying and analysing the business problem or issue;

○ may help establish the causes of the problem;
○ or can be used to determine and analyse appropriate courses of action.
● Copies of data and information you have researched (other than those provided in the
Appendices) that is relevant to your analysis process and identification of the business problem/s
or issue/s should be attached to the report.
11. Submit the written report and any research information (if applicable) to your assessor as per the
specifications below.
Specifications
You must submit:
● a written report containing all information as specified in Step 10 above (Appendix 5 gives a
sample format of the report).
● any researched information that is relevant to or supports the report’s activities.
Your assessor will be looking for demonstration of your ability to:

● organise, evaluate and critique ideas and information
● build and maintain understanding of a problem of issue
● develop and write complex texts using appropriate conventions and writing styles
● use numeracy skills to interpret complex statistical and researched information
● gather and analyse data and seek feedback to improve organisational plans and processes
● use digital technologies effectively when sourcing, gathering and analysing information to assist
in the management of business operations.

Assessment Task 1

Assessment Task 1
Appendix 1
CoffeeVille – your brief
Rufus and Emma Belcastran, CoffeeVille’s owners, have approached you for assistance. The business
has been profitable and steadily expanding for the last 4 years. However, recently expenses have
started to climb and sales are dropping. In the last 3 months they have started to address the issue of
rising expenses by evaluating and updating procedures and work practices in an effort to reduce costs.
So far, their efforts have not had a significant impact on expenditure and their sales revenue continues
to be below budget forecasts.
It’s January 2016 and all four stores are closed for a summer break. Emma and Rufus are using the
down time to assess their business’s operational and financial status in preparation for the year ahead.
They have asked you to help them analyse their business and the external environment to identify
potential reasons for their declining sales. Initially, they want you to review and analyse their business
data and information to determine if there is a cause for their concern – what problem/s or issue/s there
are and what information is needed to conduct further analysis to enable decisions to be made.
CoffeeVille – general information
The business
CoffeeVille supplies high quality, fair trade coffee and superior hot and cold gourmet food and
beverages to customers in Melbourne’s central business district (CBD). Customers are served by well
trained, knowledgeable staff who provide fast and friendly service. It is owned and managed by partners
Emma and Rufus Belcastran. They opened their first store in 2009 and have since expanded to four
coffee shops in and around the CBD.
Business goals and objectives

● Increase revenue through targeted marketing campaigns.
● Control direct and indirect operational costs.
● Maintain superior product and service standards.
● Establish CoffeeVille brand as an ethically and environmentally responsible company.
● Maintain highly trained and motivated staff.

Assessment Task 1
Expansion timeline
2009 Opened first store in CBD
2009–2011 Consolidated position and market share, sales and profits steadily grew as
reputation spread.
July 2012 Opened second store two blocks south of original store in CBD. This is the
smallest of the stores located in a busy retail and professional area of town.
July 2013 Opened third store four blocks east of original store in CBD. Slightly larger than
the original CoffeeVille store, it is located in the heart of the business and legal
district of the CBD and in the path of foot traffic from Southern Cross Station.
July 2014 Opened fourth store on the fringes of the CBD. This is their biggest store with a
larger sit-down area than the other stores.
The CoffeeVille team

Initially, partners Emma and Rufus Belcastran shared responsibilities for the management of all areas of
their business. With the organisation expanding, Rufus has taken on the role of Operations Manager
across all four stores while Emma is concentrating more on marketing the new and existing stores.
The business now employs:
● 3 full-time café managers
● 4 fully trained baristas
● 6 full-time and 12 casual food service attendants
● 2 full-time cooks.
Market analysis
The profile for a CoffeeVille customer consists of the following geographic, demographic, and behaviour
factors:
● Overview of the CBD
○ Large percentage of office workers (80% of daytime trade).

○ Area population growing at 8% per year.
● Geographic
○ Our immediate geographic target is the area of within 500 metres of the cafe.
○ The total area population is estimated at 45,000.
● Demographics
○ Male and female.

○ Ages 20–60; this is the age-group that makes up 83% of the available daytime market.
○ Full-time employment.
○ An income over $50,000.

Assessment Task 1
● Behaviour factors
○ Eat out most times for lunch in a week.

○ Tend to patronise fast service cafes.
○ Enjoy a high quality meal.
○ Value ethical and sustainable practices.

Assessment Task 1
Appendix 2
CoffeeVille business information
Business environment
Internal environment
● Staff turnover has been relatively low in the last 18 months once the initial staff training period
was completed for the fourth store.
● Menus for all stores have been updated in the last 12 months, keeping old favourites and
introducing new dishes from around the world.
● Hot dish options in the external catering menu have been modified to reflect these changes while
cold options have remained essentially the same.
External environment
● Utility expenses have risen steadily over the last 18 months due to regular price rises. The
business is currently implementing cost saving measures.
● Wages have gone up 15% due to the need to pay higher wages for trained, experienced baristas
due to skills shortages.
● Rents for each of the properties has rise between 10 to 18% in the last 12 months and is
expected to rise again early in 2016.
● Coffee bean prices rose rapidly in early 2014 and stayed high until the end of the year. Prices
eased slightly in early 2015 but are expected to rise again later in the year due to lower
worldwide production and increased demand. The retail price for all coffee menu items in all
stores has been raised twice in the last 12 months.
● Recently, red meat prices have started to rise with increases of up to 20% in the last six months.
So far, these price rises have been absorbed but Emma and Rufus plan to raise menu prices for
meat-based hot dishes in the cafe and catering menus soon.
Business performance
General trends
● Sales for first 6 months of 2015 are down across all sales categories and stores. Overall, food
sales are down 10%, beverages 12% and catering 17%. When combined with rising expenses,
profits are down for the first half of the financial year by 19%
● After opening a year ago, the fourth store is slowly building customers but is still not performing
to forecasted levels. Most of the marketing budget and Emma’s efforts have been focused on the
fourth store.

Assessment Task 1
● Productivity has increased with staff able to serve more customers per hour, per employee. This
is partly due to barista coffee preparation speeds increasing after all barista staff completed an
advanced barista course in Jan 2015.
● Savings made in payroll and cost of goods due to productivity gains have been offset by rising
wages and food prices.
Store 1
● Foot traffic is down by 5%.
● Sales are generally steady but not growing as planned. Income is hovering just under budget
while profits are 10–15% below budget due to increased expenses. Emma and Rufus are not
overly concerned yet as the budget forecast figures were based on a 5% increase in sales.
Store 2
● Foot traffic down by 10%.
● Food and beverage sales have been consistently under budget for the July to December period
with budget variances steadily increasing.
● External catering sales are down significantly, especially for November (21%) and December
(23%) which are normally the business’s busiest periods. Catering have now been under budget
for the last 18 months at this store with the budget variance rate steadily increasing.
Store 3
● Foot traffic down 15%.
● Food and beverage sales have been under budget for the July to December period with the
highest budget variance figures for all stores.
● External catering sales have been consistently under budget for the July to December period with
December down 16%. Catering has now been under budget for the last 12 months at this store
with the budget variance rate hovering between 13% and 16%.
Store 4
● Foot traffic up marginally by 0.05%
● Food and beverage sales are a consistent 3–4% under budget.
● External catering is down 5% on average with December bucking the trend and meeting budget.
● A new competitor is due to open 100 metres away in February 2016.
● Sales have been very flat and not grown as hoped for this store over the last 12 months despite
several promotions and advertising campaigns in the local area.

Assessment Task 1
Financial year July 2014 – June 2015
July–December 2014
Sales $ July Aug Sept Oct Nov Dec

Food sales 285,668 279,805 273,942 262,580 250,078 199,251
Beverage sales 191,199 190,163 189,126 187,054 182,650 179,523
External catering 82,360 83,540 81,980 81,480 77,500 74,370
Total income 559,227 553,508 545,048 531,114 510,228 453,144

Total expenses 482,190 470,934 483,431 451,683 461,746 404,986
Net profit/loss 77,037 82,574 61,617 79,431 48,482 48,158
Jan–July 2015
Sales $ Jan Feb Mar April May June Year Total

Food sales 203,894 221,209 238,525 245,476 259,742 262,803 2,982,972
Beverage sales 181,220 185,263 187,263 188,263 189,560 191,208 2,242,492
External catering 57,284 60,926 67,853 68,853 51,853 49,137 837,136
Total income 442,398 467,398 493,641 502,592 501,155 503,148 6,062,600

Total expenses 413,064 421,865 442,733 447,512 464,198 478,630 5,422,972
Net profit/loss 29,334 45,533 50,908 55,080 36,957 24,518 639,629

Assessment Task 1
Financial year July 2015–June 2016

Food sales 231,391 226,642 231,865 227,105 202,563 154,300
Beverage sales 148,065 147,262 153,192 158,323 135,088 129,705
Total income 439,663 434,262 441,533 440,885 389,762 331,602
Total expenses 373,713 364,780 366,472 374,752 339,093 288,494
Net profit/loss 65,949 69,482 75,061 66,133 50,669 43,108
Budget variance report – All stores

Summary of variance results for comparisons of budget to actual income for the period 2011–2015
A positive variance indicates the percentage above budget, a negative figures indicates the percentage below budget.
Financial year 2011-12 2012-13 2013-14 2014-15 2015-16
Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

2011 2012 2012 2013 2013 2014 2014 2015 2015
Food sales 5% 8% 7% 12% 8% 1% -3% -8% -10%

Beverage sales 8% 2% 4% 5% 5% -2% -4% -5% -12%
External catering 12% 4% 7% 2% 5% 2% -8% -11% -17%
Total income 8% 5% 6% 6% 6% 1% -5% -8% -12%
Net profit/loss 7% 4% -1% 6% 6% -4% -5% -11% -13%

Assessment Task 1
Appendix 3
Customer and marketing information
CoffeeVille customer information

Customer spending patterns
Average spend Average spend

Item Variance Comments
- 2011 - 2014
Coffee $3.35 $3.85 15% While average spend

has risen, Emma and
Food - takeaway $8.65 $9.80 13% Rufus feel this is a result
of general price rises,
Food – sit down $9.20 $10.45 14% not customers
purchasing more items.
Catering $18.00 $22.00 22%
Summary customer feedback forms Jan–Dec 2015

● Thanks for your friendly smile every morning. I’ll miss that when we move.
● Great coffee, great service.
● Can you open a store near the new office in Fairfield?
● Loved the vegetarian frittata!
● Best mocha I’ve had in weeks!
● Do you deliver to Richmond? I’m going to miss your coffee and healthy salads!
● Expensive coffee
● Service staff always happy to see you
● Vote 1 Karlie best barista in town!!
● Going to miss you all
● Good coffee but expensive compared to Zelda’s.
Summary customer comments Facebook Jan–Dec 2015

● Lunch time! Best focaccia ever!
● Love that you guys do free trade.
● Look at the art on this coffee!
● Just wanted to say farewell. Thanks for excellent coffee every morning. I’ll miss your smiles. Any
café recommendations in Canterbury?
● Lunch with the crew at CoffeeVille. Something for everyone, even our veggie sisters.

Assessment Task 1
● A big thank you from everyone at Milson Financial. Today’s our last day  If I get another job in
the city I’ll definitely be coming back!
● Thanks for my birthday coffee. Was looking forward to it all morning!!
Loyalty Club membership

Membership activity from December 2014 to May 2015.
Membership Total
Members Active
Inactive^ Cancelled members
2014 * members
2015 #
Store 1 48 43 5 0 48
Store 2 28 20 5 3 25
Store 3 32 21 6 5 27
Store 4 19 15 2 2 17
Total 127 99 18 10 117
78% 14% 8%
Analysis: Number of inactive and cancelled member has increased 15% from
previous period.
*Total members as at December 2014

^ Inactive = No account activity for a minimum of 3 months
#Total members as at May 2015
Action Marketing survey results December 1–4, 2014

Action Marketing conducted a survey in the area within the boundaries of the three CBD stores. A
summary of feedback received includes the following.
● Customers are buying less food over summer as they are trying to be healthy and spend less
money in the lead up to Christmas.
● A number expressed concern about the possibility of losing their jobs due to ongoing poor
financial performance of their employer. Many were trying to save money in case this occurred.
● 38% of customers said they had eaten at CoffeeVille but considered it a treat due to prices.
● Coffee was consistently rated as excellent; however, 58% of respondents who purchased coffee
from CoffeeVille said it wasn’t their primary source.
● Customers who regularly purchased food and/or beverages from CoffeeVille supported their
environmental and socially responsible position.
Key survey takeaways
● price ● general economic concerns

Assessment Task 1
● business environment in CBD (closures) ● healthy lifestyle and eating habits.
Survey results
Question Responses
Have you ever visited a Yes 67% No 33%

CoffeeVille store?
Which store do you visit? (Can Store 1 49% Store 3 27%

choose more than one store)
Store 2 43% Store 4 12%
How times a month, on 1–4 times 25% 10–15 times 31%

average, do you visit the coffee
5–9 times 27% Most days 17%
shop?
What is your purpose for For the coffee 69% To meet others 22%
visiting CoffeeVille? (Can
Get something to eat 46% To relax 15%
choose more than one store)
To read the papers 18%
How would you rate the overall 5 = Excellent 53% 2 = Fair 3%

friendliness of the staff? (with 5
4 = Very good 32% 1 = Poor 0%
being the most friendly)
3 = Good 12% 0 = Awful 0%
How do you rate the price of 5 = Excellent 22% 2 = Fair 15%

your food and/or beverages?
(with 5 being an excellent
price) 3 = Good 29% 0 = Awful 0%
How do you rate the variety of 5 = Excellent 33% 2 = Fair 2%

products? (with 5 being the
best variety)
3 = Good 33% 0 = Awful 0%
How do you rate the product 5 = Excellent 50% 2 = Fair 4%

quality? (with 5 being excellent
quality)
3 = Good 18% 0 = Awful 0%
Have you found your wait in No, very fast 48% Waited ages 2%
line to be too long for your
No, pretty quick 32% Very slow 0%
satisfaction?
A bit slow 18%

Assessment Task 1
Appendix 4
Management and team meeting summaries
Meeting summaries
Management team meeting October 31st, 2015
Topic: External catering Christmas bookings

Rufus – Owner/Operations Manager
● Catering bookings for corporate Christmas parties down across all stores for Nov and Dec.
● Stores 2 and 3 under sales budget forecasts by 20–30%.
Emma – Owner/Marketing
● Made phone calls and personal visits to all previous clients who have not rebooked this year.
● Budget constraints common reason for not booking.
● Some using another, cheaper caterer, some are not having a catered Christmas event.
Sarah – Manager, Store 1

● Staff from two businesses CoffeeVille catered for last year have mentioned management are
only holding self-catered morning/afternoon tea for staff, no formal Christmas party. Both
businesses employ 20–30 employees.
Topic: 2016 budgets

● All budgets for 2016 have been adjusted to reflect sales and expenses trends.
Team meeting – Store 3 November 4th , 2015
Topic: Sales trends, customer feedback

● Sales down across all revenue streams.
● Need a sales push to capture foot traffic in city for Christmas shopping.

Assessment Task 1
Leunie – Manager, Store 3

● Early morning period slower, less coffee and breakfast sales from train station traffic.
● Lunch time food trade from office staff down. Starting Christmas shopping during lunch
period?
Staff comments
● Not as many groups dining in store at lunch time, more singles.
● Customers choosing cheaper items, chatter about money being tight.
● Trying to push coffee/cake and meal/water deals but uptake low.
● Several regulars from McKinnon’s say staff Christmas gathering being held off-site this year,
no external catering booked – we catered for them last year.
● Hot food sales down, higher wastage. Preference for salads and sandwich bar.
● Received queries about getting Paleo options added to the menu.
● Sales manager at XX department store said retail sales are sluggish compared to this time last
year. Lots of looking but not buying. Hoping it will pick up soon.
● Lots of general chatter about economic concerns, terrorism, home interest loan rates possibly
going up after Christmas. General feel of customers is negative.
● Staff expressed concern about job security due to lower revenue figures.
Management team meeting December 3rd, 2015
Topic: Revenue concerns

● Revenue across all stores under budget.
● Store 2 food and catering of real concern.
● Store 3 food, beverages and catering all significantly under budget.
Emma – Owner/Marketing
● Shifting marketing focus from Store 4 back to CBD stores, focus on Stores 2 and 3.
● New campaigns to start when offices reopen in Jan 2016.
Sarah – Manager, Store 1

● Customers not spending as much, average daily spend per customer down compared to
previous years.
Christos – Manager, Store 2

Assessment Task 1
● Two businesses within their building to close permanently at Christmas.
● Missing a number of regular customers at the register.
Leunie – Manager, Store 3

● One 50+ employee business in building next door moving to new offices out of CBD.
● One 20+ employee financial advisor have moved to new office in suburbs as rent is cheaper.
● Two For Lease signs for offices in buildings in same block as cafe.
● Lots of chatter from clients working for professional services companies about business
retraction, possible redundancies.
Jordie – Manager, Store 4

● Nearby residential towers nearly completed construction, due to open in February, potential to
grow morning traffic.
● Due to higher residential occupancy near store, raised potential for take away dinner trade.
Fresh cooked and packed for customers to purchase on way home from work. Other
alternative is a delivery service within a specific radius. Might also work for Store 3 due to
proximity to train station and Docklands residential complexes. Would mean longer opening
hours to catch after-work commuters and residents.

Assessment Task 1
Appendix 5
Report Format
The report to be submitted for this Task can be completed any Report Template and referencing. The
Report may contain following headings but not limited to:
 Executive Summary / Introduction
 Data / Information Sources
 Rejected data
 Situation Analysis
o Market Summary
o SWOT Analysis
o Competition
o Service Offer
o Keys to success
 Marketing Strategy
 Potential Business Problems / Issues
 Conclusion / Recommendation

Assessment Task 2
Analyse information and knowledge

Submission details
The assessment task is due on the date specified in your timetable. Any variations to this arrangement
must be approved in writing by your assessor.
You will demonstrate the skills and knowledge required to analyse information and knowledge on
business issues or problems to aid decision-making.
Using the simulated business information provided in this task, and in response to a scenario, you will
identify patterns or emerging trends, determine the causes and determine their potential effect on the
business by using statistical analysis techniques. You will document evaluation processes and adjust
management information or decision support systems if necessary to meet information processing
objectives.
Procedure
2. If necessary, review CoffeeVille’s general business information provided in Appendix 1 of
Assessment 1 to maintain your understanding of the business and its environment.
3. Review and evaluate business performance data and information in Appendix 2.
4. Review and analyse research data and information in Appendix 3.
5. Respond to Question 1 in Appendix 5 by developing SMART objectives for the analysis
processes you plan to undertake to identify causes for the business’s declining sales. Make sure
they are consistent with the decision required.
6. Based on the information provided in this assessment and Assessment Task 1 as management
information and decision support, identify and interpret trends and patterns and their causes and
effects relevant to the identified business problem. You can use computer software or manual
techniques to complete trend and correlation statistical analysis calculations. You can use Cause
and Effect diagram for this purpose as well.
○ You can complete as many trend and correlation calculations as desired to assist in the
identification of trends and patterns and their causes or effects.

Assessment Task 2
○ You must complete a minimum of two trend and two correlation calculations for this
assessment.
○ The results of at least two trend and two correlation calculations must be converted to
graphs for visual identification and evaluation of trends or patterns and their causes or
effects. This results in your sensitivity analysis.
7. Document analysis processes undertaken so far by completing Parts 1 and 2 of the Decision
Analysis Report in Appendix 4. Note that additional information will be added to this report in
Assessment Task 3. Make sure you use writing styles and conventions appropriate for a
management report, including level of formality selected, terminology used and depth of
complexity in information provided.
8. Answer the remaining assessment questions in Appendix 5.
Specifications
You must submit:
● completed Parts 1 and 2 of the Decision Analysis Report
● copies of the results gained from at least two trend and two correlation statistical analysis
techniques used to assist trend and pattern identification – please attach to the Decision Analysis
Report
● copies of line or scatter graphs developed from the results of at least two trend and two
correlation statistical analysis techniques – please attach to the Decision Analysis Report
● your responses to the questions in Appendix 5.
Your assessor will be looking for your ability to:

● use numeracy skills to interpret complex statistical and researched information
● use digital technologies effectively to manage business operations for strategic and operational
purposes
● plan and manage activities that have implications for the whole organisation
● make high impact decisions – analyse input from a range of sources and, where appropriate,
drawing on experience.

Assessment Task 2
Appendix 1
has been profitable and steadily expanding for the last 4 years but recently, expenses have started to
climb and sales drop. In the last 3 months they have started to address the issue of rising expenses.
In the last 3 months they have started to address the issue of rising expenses by evaluating and
updating procedures and work practices in an effort to reduce costs. So far, their efforts have not had a
significant impact on expenditure and their sales revenue continues to be below budget forecasts.
It’s January 2016 and all four stores are closed for a summer break. Emma and Rufus are using the
They have asked you to help them analyse their business and the external environment to identify
potential reasons for their declining sales. Now that the business issue or problem has been identified,
they want you to analyse data and information to determine the potential causes of the issue.
You plan to use data and information identified in Assessment 1 and in the Appendices of Assessments
1 and 2, as well as conduct research into potential external environmental factors. You believe using
statistical and sensitivity analysis techniques will enable you to identify relationships between data,
clarifying potential causes of the business issue.

Assessment Task 2
Appendix 2
Coffeeville business data and information
Business performance
General trends
● Sales for first 6 months of 2015 are down across all categories and stores. Overall, food sales
are down 10%, beverages 12% and catering 17%. When combined with rising expenses, profits
are down for the first half of the financial year by 19%
● After opening a year ago, the 4th store is slowly building customers but is still not performing to
forecasted levels. Most of the marketing budget and Emma’s efforts have been focussed there.
● Productivity has increased with staff able to serve more customers per hour per person. Barista
coffee preparation speeds have increased after all barista staff completed an advanced barista
course in Jan 2015.
● Savings made in payroll and cost of goods due to productivity gains has been offset by rising
wages and food prices.
Payroll expenses
Payroll expenses as % of total

Year
expenses
2009 34.9%
2010 35.3%
2011 34.2%
2013 39.8%
2014 42.1%
2015 45.3%

Assessment Task 2
Financial information – Organisation

Food sales 285,668 279,805 273,942 262,580 250,078 199,251

Beverage sales 191,199 190,163 189,126 187,054 182,650 179,523
Total income 559,227 553,508 545,048 531,114 510,228 453,144

Total expenses 482,190 470,934 483,431 451,683 461,746 404,986
Net profit/loss 77,037 82,574 61,617 79,431 48,482 48,158
Jan–July 2015

Food sales 203,894 221,209 238,525 245,476 259,742 262,803 2,982,972
Beverage sales 181,220 185,263 187,263 188,263 189,560 191,208 2,242,492
Total income 442,398 467,398 493,641 502,592 501,155 503,148 6,062,600

Total expenses 413,064 421,865 442,733 447,512 464,198 478,630 5,422,972
Net profit/loss 29,334 45,533 50,908 55,080 36,957 24,518 639,628

Assessment Task 2
July–December 2015 (actual results)

Food sales 231,391 226,642 231,865 227,105 202,563 154,300
Beverage sales 148,065 147,262 153,192 158,323 135,088 129,705
Total income 439,663 434,262 441,533 440,885 389,762 331,602

Total expenses 373,713 364,780 366,472 374,752 339,093 288,494
Net profit/loss 65,950 69,482 75,061 66,133 50,669 43,108
Jan–July 2016 (adjusted forecast)

Food sales 177,388 201,300 224,214 208,655 233,768 233,632 2,552,823
Beverage sales 152,225 163,031 161,046 167,554 170,604 170,175 1,856,270
Total income 376,586 415,509 441,578 433,357 447,151 444,099 5,035,987

Total expenses 351,615 375,031 396,039 385,864 414,176 422,459 4,452,488
Net profit/loss 24,971 40,478 45,539 47,493 32,975 21,640 583,499

Assessment Task 2
Budget variance report – All stores

Summary of variance results for comparisons of budget to actual income for the period 2011 - 2015
A positive variance indicates the percentage above budget, a negative figures indicates the percentage below budget.
Financial year 2011-12 2012-13 2013-14 2014-15 2015-16
Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

2011 2012 2012 2013 2013 2014 2014 2015 2015
Food sales 5% 8% 7% 12% 8% 1% -3% -8% -10%

Beverage sales 8% 2% 4% 5% 5% -2% -4% -5% -12%
External catering 12% 4% 7% 2% 5% 2% -8% -11% -17%
Total income 8% 5% 6% 6% 6% 1% -5% -9% -12%
Net profit/loss 7% 4% -1% 6% 6% -4% -5% -11% -13%
Financial history by income source

*Note: Store 3 opened July 2014, Store 4 July 2014
Food Sales July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
2013-14 224,580 212,965 208,695 210,589 209,568 189,655 175,250 186,752 198,765 209,632 218,655 225,892 2,470,998
2014-15 357,580 362,937 365,600 355,290 347,868 337,438 301,056 301,475 323,324 307,358 282,052 289,080 3,931,058
2015-16 257,101 251,825 252,027 244,199 225,070 175,341 177,388 201,300 224,214 208,655 233,768 233,632 2,684,519

Assessment Task 2
Beverage
July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
Sales
2013-14 150,469 140,557 137,739 138,989 138,315 125,172 115,665 123,256 131,185 138,357 148,385 151,348 1,639,437
2014-15 210,306 214,056 215,920 203,934 189,078 182,794 160,878 161,130 182,540 185,239 185,074 189,085 2,280,034
2015-16 168,255 167,343 170,213 172,090 157,079 152,595 152,225 163,031 161,046 167,554 170,604 170,175 1,972,210
External
July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
catering
2013-14 51,650 52,890 54,820 59,850 65,890 60,150 39,550 41,330 42,580 46,450 49,620 51,230 616,010
2014-15 97,274 98,881 99,680 95,853 89,385 85,196 60,585 60,753 66,414 77,605 81,944 80,067 993,637
2015-16 70,418 71,009 68,043 67,221 63,550 59,496 46,973 51,178 56,318 57,148 42,779 40,292 694,425
Total income July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
2013-14 426,699 406,412 401,254 409,428 413,773 374,977 330,465 351,338 372,530 394,439 416,660 428,470 4,726,445
2014-15 665,160 675,874 681,200 655,077 626,331 605,428 522,519 523,358 572,278 570,202 549,070 558,232 7,204,729
2015-16 495,774 490,177 490,283 483,510 445,699 387,431 376,585 415,509 441,578 433,357 447,151 444,099 5,351,154
Net profit July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total
2013-14 93,874 85,347 92,288 98,263 99,306 78,745 62,788 77,294 85,682 94,665 91,665 89,979 1,049,896
2014-15 83,501 108,019 121,333 100,609 77,095 70,695 83,373 61,305 76,724 73,854 72,457 66,266 995,231
2015-16 68,296 73,126 55,426 72,312 42,350 41,174 24,970 40,478 45,539 47,492 32,975 21,641 565,779

Assessment Task 2
Financial information - Store 2

Store 2 Financial results July – December 2014

Food sales 64,364 65,329 65,808 63,952 62,616 60,739
Beverage sales 37,855 38,530 38,866 36,708 34,034 32,903
Total income 119,728 121,658 122,616 117,914 112,739 108,977

Total expenses 104,164 102,192 106,676 100,227 98,083 95,900
Net profit / loss 15,564 19,466 15,940 17,687 14,656 13,077
Store 2 Financial results Jan – July 2015

Food sales 54,190 54,266 58,198 55,324 50,769 52,034 707,590
Beverage sales 28,958 29,003 32,857 33,343 33,313 34,035 410,406
Total income 94,053 94,204 103,010 102,636 98,833 100,481 1,296,851

Total expenses 79,005 82,900 89,619 89,294 85,984 88,424 1,122,467
Net profit/loss 15,048 11,305 13,391 13,342 12,848 12,057 174,384

Assessment Task 2

Food sales $51,289 $50,664 $49,413 $46,912 $46,286 $42,908
Beverage sales $34,158 $33,827 $29,836 $28,515 $28,183 $26,178
External catering $10,448 $8,064 $7,872 $7,776 $10,112 $9,363
Total income $95,895 $92,555 $87,121 $83,203 $84,581 $78,449

Total expenses $86,655 $82,660 $82,920 $80,392 $82,176 $72,560
Net profit/loss $9,240 $9,895 $4,201 $2,811 $2,405 $5,889
Store 2 Budget variance report July – December 2015

A positive variance indicates percentage above budget, a negative figures indicates percentage below budget.

Food sales -2% -3% -5% -9% -10% -14%
Beverage sales 3% 2% -4% -11% -12% -9%
External catering -12% -16% -18% -19% -21% -23%
Total income -11% -12% -8% -19% -20% -17%

Total expenses 1.50% 1.78% 2.10% 1.45% 1.32% 1.70%

Assessment Task 2
Net profit/loss -31% -36% -41% -86% -59% -69%
Store 2 Forecasted sales 2015-16

$70,000
$60,000
$50,000
$40,000
Food sales
$30,000
Beverage sales
$20,000
External catering
$10,000
$-
Sept
Nov
April
Dec-14
Aug
Jan-15
Feb
Mar
May
Oct
June
Store 2 - Forecasted net profit 2015-16
$25,000
$20,000
$15,000
$10,000 Net profit
$5,000
$-

Assessment Task 2
Financial information - Store 3


Food sales 71,516 76,217 76,776 78,164 76,531 77,611
Beverage sales 42,061 44,952 45,343 44,865 41,597 42,043
Total income 133,032 141,934 143,052 144,117 137,793 139,249

Total expenses 115,738 119,224 117,303 122,499 121,258 122,539
Net profit/loss 17,294 22,710 25,749 21,618 16,535 16,710
Store 3 Financial results Jan – July 2015

Food sales 69,243 72,354 77,598 70,692 64,872 63,598 901,685
Beverage sales 37,002 38,671 43,810 42,605 42,567 39,708 523,870
Total income 120,180 125,606 137,347 131,146 126,286 120,120 1,652,897

Total expenses 100,951 110,533 119,492 114,097 109,869 105,705 1,425,544
Net profit/loss 19,229 15,073 17,855 17,049 16,417 14,415 227,353

Assessment Task 2

Food sales $71,922 $71,140 $71,922 $70,358 $68,795 $40,657
Beverage sales $37,309 $36,894 $37,309 $36,065 $35,236 $28,407
External catering $10,560 $9,440 $9,080 $10,320 $11,920 $12,768
Total income $119,791 $117,474 $118,311 $116,743 $115,951 $81,832

Total expenses $108,959 $103,853 $103,752 $103,752 $105,927 $87,464
Net profit/loss $10,832 $13,621 $14,559 $12,991 $10,024 -$5,632
Store 3 Budget variance report July – December 2015

A positive variance indicates percentage above budget, a negative figures indicates percentage below budget.

Food sales -8% -9% -8% -10% -12% -15%
Beverage sales -10% -11% -10% -13% -15% -17%
External catering -12% -13% -16% -14% -13% -16%
Total income -16% -18% -18% -19% -21% -23%

Total expenses 2.10% 2.30% 2.20% 2.20% 2% 2.30%
Net profit/loss -43% -45% -46% -51% -56% -59%

Assessment Task 2
Store 3 Forecasted sales 2015-16

$80,000
$70,000
$60,000
$50,000
$40,000 Food sales
$30,000 Beverage sales

$20,000 External catering
$10,000
$-
July
Sept
Feb
Nov
Dec-14
May
Aug
Jan-15
Mar
April
June
Oct
Store 3 Forecasted net profit 2014-15
$25,000
$20,000
$15,000
$10,000 Net profit
$5,000
$-

Assessment Task 2
Appendix 3
Research data and information
Melbourne demographics – City of Melbourne

General and industry specific information is available on City of Melbourne website.
Two main areas of the website to investigate are:
● City of Melbourne, ‘Doing business in Melbourne’, viewed January 2016,
<http://www.melbourne.vic.gov.au/business/doing-business/Pages/doing-business-in-
melbourne.aspx>
● City of Melbourne, ‘Research and statistics’, viewed January 2016,
<http://www.melbourne.vic.gov.au/about-melbourne/research-and-statistics/Pages/research-and-
statistics.aspx>.
City of Melbourne has been producing a report called Daily Population Estimates and Forecasts for
many years. It was updated in 2015. Among other information, it includes statistics on past and future
trends for City of Melbourne’s workforce and residential population.
You can find it at:
● City of Melbourne, ‘Daily population estimates and forecasts’, viewed January 2016,
<http://www.melbourne.vic.gov.au/about-melbourne/research-and-statistics/Pages/daily-
population-estimates-and-forecasts.aspx>.
Economic activity
Summary Australian interest rates – Reserve Bank of Australia
All rates expressed as percentages.
Feb Mar Apr May June Jul Aug Sept Oct Nov Dec
2014 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
2015 2.25 2.25 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.25 2.25
Melbourne CBD retail information

Commercial property rental rates per square meter Melbourne CBD
2013 2014 2015 2016 (forecast)
Gross average $7,000 $7,750 $8,250 $8,800

rent ( 5.7%) ( 10.1%) ( 6.4%) ( 6.6%)

Assessment Task 2
Commercial property vacancy rates – Melbourne CBD
2013 2014 2015 2016 (forecast)
Vacancy rates 8.2% 8.5% 9.1% 9.5%
Cafe / restaurant / bistros in Melbourne CBD as at June 31st 2015

Note: figures based on registered businesses, closures and permit applications lodged by June1st each year.
No. new cafe / No. cafe / No. cafe / Total café /

restaurant / bistros restaurant / bistros restaurant / bistro restaurant / bistros
Year opened closed seats in CBD
2011 37 12 169,983 2585
2012 41 13 178,320 2613
2013 39 18 206,031 2634
2014 52 19 213,272 2670
2015 45 21 217,157 2694
Media articles
Business News Aug 2014
New era looms as CBD office boom ends

Property developers and investors are facing diminished returns and an uncertain future as the CBD
commercial property market stalls.
Coinciding with a slowdown of economic activity and low business confidence, particularly in the retail
and professional services sector, applications for new development projects fallen to their lowest
levels in 5 years.
Mr Kenneth Staines, from Placement Properties, indicated this trend is also occurring in most other
capital cities in Australia and many other Western countries. Consumer confidence is down, people
are not spending and this is affecting businesses everywhere. Everyone is sitting tight on their money
– consumers and investors, he stated at a business forum this week.
One of the reasons he believes applications are down is the recent rise in vacant office space within
the central CBD. Rents have remained relatively high and many businesses are struggling as income
has not risen in tandem, he said.
A recent survey conducted by the Property Institute shows the number of tenants in the CBD falling,
particularly in small to medium business categories. New tenant enquiries has been flat with most
enquiries coming from larger businesses interested in acquiring recently vacated adjoining office
space.

Assessment Task 2
Melbourne moves: businesses shift out from the city

December 2014
There’s a shift on in Melbourne, with many medium and small businesses moving out of the CBD to
its fringes and suburbs.
A new report shows 16 small and 10 medium sized companies moved from the CBD to its fringe and
nearby suburbs in the past 12 months, continuing a trend that started in 2013.
The annual Johnson report Melbourne Property 2014 says there are several factors behind the move,
including cost savings and changes in the way people are working.
Johnson’s Research Manager Kim Rayner says their analysis shows 85% of these businesses who
moved out of the CBD this year have relocated to properties in the periphery or within 5 km of the
CBD, with very few locating further than 10 kms.
Johnson’s Director of Office Leasing (Victoria) Andrew Mahji says Melbourne’s CBD office vacancy
rate has substantially increased this year.
“We have a vacancy rate of 10% in the Melbourne CBD,” Mahji says. “It coincides with a lot of new
buildings going up in Docklands and Richmond.”

Assessment Task 2
Softer demand drives up office vacancy rates in all CBD markets

Vacancy rates for offices is expected to peak in most Australian CBD markets in 2015–2016, with
Brisbane expected to have the peak vacancy of nearly 14% according to forecasts from REAC.
REAC’s Research Director for Australia, Millie Kearney, said the latest Property Council of Australia
vacancy statistics highlighted that demand had decreased across all CBD markets with negative net
absorption driving up vacancy rates in every major capital city.
CBD Office Total Vacancy rate % - July 2015

Assessment Task 2
Appendix 4
Decision Analysis Report

Assessment Task 2
Part 1 – Decision / Issue Name

Name decision, issue, problem, project, plan or strategy the decision is linked to.
Decision required
Describe the decision that must be made. It should outline what are the expectations or parameters of the decision to any
decision-makers or recipients of the document. Include any timeframes the decision must be made in.
History
A brief history of events, reasons or causes that necessitates the decision. This should be an overview only and only contain
information relevant to the required decision. It should briefly describe the who, what, when and where of the situation
requiring a decision.
Part 2 – Analysis
Summarise the analytical processes used, the results of the analysis and their implications – do they support or disprove the
issue or problem, what further questions were raised as a result of the analysis.
Analysis Results Implications

Assessment Task 2
Part 3 – Decision options

List all viable, genuine courses of action that address the issue. Briefly list actions to be taken, any costs associated with the
option and potential positive and negative outcomes.
Option 1:
Positive outcomes / benefits Negative outcomes / Risks
Option 2:
Option 3:

Assessment Task 2
Part 4 – Recommendation / Action taken

Indicate which course of action is recommended (if making a recommendation to a higher decision-maker) or the action to
be taken. Briefly outline the reasoning for choosing this option.
Confirmation / Approval
Names, titles, signatures and date of decision or granting of approval
Name Title Signature Date

Assessment Task 2
Appendix 5
Assessment questions
1. What is your objective/s for the analysis processes you plan to undertake?
2. Briefly describe how management information or decision support systems can support the analysis
of proposed courses of action and their impact on the business.
3. List two types of adjustments you might have to make management information or decision support
systems to help you meet your stated objectives.

Assessment Task 3
Make decisions on business issues

Submission details
You will demonstrate the skills and knowledge required to make timely decisions on identified business
issues.
Using the simulated business information provided, and in response to a scenario, you will utilise risk
management plans, sensitivity and quantitative analysis techniques and consultation processes to
determine acceptable courses of action and make a decision. The decisions must be taken within
organisational guidelines and be consistent with its values, objectives and standards. A presentation will
be made to CoffeeVille’s managers detailing options available for potential courses of action and your
recommendations.
Procedure
2. Review CoffeeVille’s organisational chart in Appendix 1 to build an understanding of the
business’s reporting and command structure.
3. Review, evaluate and analyse information provided about each of the decision options facing
Coffeeville in Appendix 2.
4. Review risk management and business impact analysis information in Appendix 3.
5. Review and analyse City of Melbourne demographic information in Appendix 4.
6. Based on the information provided in this and previous assessments, utilise statistical, sensitivity
and quantitative analysis techniques to analyse the viability of options 2 and 3 to determine the
most acceptable course of action to resolve the business issue or problem. You can use
computer software or manual techniques to complete your analysis calculations.
 You can complete as many types and number of analysis calculations as desired to assist
in further analysis and clarification of causes of the business issue identified in CoffeeVille –
your brief in Appendix 1 and evaluation of potential courses of action to address the issue.

Assessment Task 3
 You must complete a minimum of one statistical (other than trend or correlation), one
sensitivity and one quantitative calculation for this assessment.
7. Update Part 2 of the Decision Analysis Report you started preparing in Assessment 2. Clearly
document the results of additional analysis processes undertaken in this assessment in the
Report.
8. Complete Part 3 of the Decision Analysis Report based on the information provided and the
results of your research and analysis. When listing positive and negative outcomes, consider
their impact on the business as a whole and operation of the individual stores. The events and
outcomes described in the business’s risk management plans in Appendix 3 should also be
considered.
9. Review CoffeeVille simulated business documentation, including policies and procedures,
relating to decision-making and management and employee responsibilities to assist in
understanding and managing change within the business.
10. Complete force field diagrams for options 2 and 3 to help you determine which course of action to
recommend to Emma and Rufus and assist their decision-making.
11. Complete Part 4 of the Decision Analysis Report by making a recommendation and outlining your
reasoning why you have come to this conclusion.
12. Answer the assessment questions in Appendix 5.

Assessment Task 3
Specifications
You must submit:
● a fully completed Decision Analysis Report
● computer printouts or handwritten copies of the results gained the statistical, sensitivity and
quantitative analysis techniques used to assist the decision-making process – at least one set of
results for each type of analysis technique must be attached to the Decision Analysis Report
● force field analysis diagrams for options 2 and 3 – please attach to the Decision Analysis Report
● your responses to the questions in Appendix 5.

● use numeracy skills to perform calculations and interpret complex statistical
● use communication skills to:
○ access and share information and build and maintain effective working relationships
○ use appropriate listening and questioning techniques
○ present complex information in formal situations in a format appropriate to the audience
and purpose
● monitor and review organisational policies, procedures and adhere to legislative requirements in
order to implement and manage change
● use digital technologies effectively to manage business operations for strategic and operational
purposes
● use management skills to:
○ make high impact decisions

○ plan and manage activities that have implications for the whole organisation
○ work autonomously when making high level decisions to achieve and improve
organisational goals.

Assessment Task 3
Appendix 1
has been profitable and steadily expanding for the last 4 years but recently, expenses have started to
climb and sales drop.
In the last 3 months they have started to address the issue of rising expenses by evaluating and
updating procedures and work practices in an effort to reduce costs. So far, their efforts have not had a
significant impact on expenditure and their sales revenue continues to be below budget forecasts.
It’s January 2016 and all four stores are closed for a summer break. Emma and Rufus are using this
They have asked you to help them determine the best course of action to take and assist in the
decision-making process.
There are three courses of action that could be taken.
1. Do nothing.
2. Reduce their prices.
3. Provide take-home packaged meals and a meal delivery system.
Initially, you plan to use statistical, sensitivity and quantitative analysis techniques to analyse the impact
of Options 2 and 3. The data and information provided in the Appendices of Assessments 1 and 2 as
well as the results of any analysis processes completed in Assessment 2 may assist your analysis.
Organisational chart
Rufus and Emma
Belcastran Owner/
Managers
Store Managers
Food service
Baristas Cooks
attendants

Assessment Task 3
Appendix 2
Analysis of decision options
Based on discussions with Emma and Rufus, and further research into economic and business climates,
you have prepared the following summary for the three options under consideration. Your brief is to only
investigate options 2 and 3 further, however, any information in the summary for option 1 can be used
when determining the most acceptable course of action.
1. Do nothing
Economic indicators and industry analysts forecast a more positive economic environment within the
next 12 months with both business and consumer confidence growing.
Business and real estate analysts forecast CBD vacancy rates to drop to 9% within 12 months and 8.5%
within 18 months as local and international businesses absorb the current glut of office space.
Aim
● To maintain reputation as provider of quality food and beverages.
● To eventually return to previous levels of profitability within the next 12 months.
Business performance data

● food sales are down 10%, beverages 12% and catering 17%.
● When combined with rising expenses, profits are down for the first half of the financial year by
19%.
● Payroll expenses have risen 10.5% over the last 6 years, 3.2% in the last 12 months.
Concerns
● The current trend will continue, resulting in financial difficulties for the business and the potential
closure of non-profitable stores.
2. Reduce prices for food

The selling price for in-store and catering food menu items will be reduced. Beverage prices to remain
the same.
Number of food menu items to be decreased, especially those with more costly ingredients and longer
preparations times.
Staff hours to be reduced in the short term to reflect current decreased levels of sales.

Assessment Task 3
Aim
● To price match closest competitors.
● To increase the number of items sold per day by a minimum of 5% with a goal of 15% across all
food categories and hot beverages.
● To reduce total expenses to 75% of total income.

● Cost of goods for food is currently 31% of total income.
● Cost of goods for beverages is 19% of total income.
● These have both increased by 3–4% in the last 12–18 months.
● Total expenses fluctuate between 77–83% of total income.
Questions
● Number of sales required under the new pricing system to achieve current daily revenue figures?
● Impact on revenue if increases in sales figures vary between the minimum (5%) and maximum
(15%) goals?
Menu items Current Average Average No. Current average Proposed

price range spend of sales per revenue per day price
day per store per store reduction
Breakfast
$6–$9 $7.50 76 $570 10%
options
Sandwiches bar
$8–$10 $9.50 96 $912 10%
wraps
Hot items $9–$11 $10.00 82 $820 5%
Sweet baked
$4–$7 $4.50 45 $202.50 10%
goods
Hot beverages $3–$4 $3.85 330 $1270.50 0%
Milkshakes and
$6 $6 15 $90 0%
iced coffees
Packaged drinks $3–$5.50 $4.50 65 $292.50 5%
Total revenue average per day per store $4,157,50
Total average revenue per annum all stores $6,069,950

Assessment Task 3
3. Provide home packaged and meal delivery systems

The operational hours of some or all stores will be expanded to provide prepared, pre-packaged, take-
home meals to post-work traffic and local residents.
Menu items for take-home meals will consist of chilled fully prepared, heat-and-eat or finish-at-home
options. Three to four options will be offered every day with the menu changing daily and will include at
least one vegetarian and one salad option.
A limited delivery service for hot and cold meals will be offered to local residential buildings based on the
range take-home menu items. These meals will be delivered hot (or cold for salads), ready for
immediate consumption.
Business hours of the stores will be extended from 4pm to 8pm.
All daily menu items will be prepared in bulk for all stores by the cooks in their current store locations
(stores 3 and 4). Prepared menu items are transported to other stores prior to 5pm each day.
Aim
● To expand the business into new markets.
● To enter the packaged take-home and residential market and establish their brand before it
becomes saturated with competitors.
● To meet the needs of the steadily increasing CBD residential population.
● To offer additional products and services to their existing customers.

● Food wastage is currently 10%. Major category of wastage is hot food not sold during lunch
service period.
Additional payroll costs per store for extended hours and delivery service
● Each store selling packaged meals will require minimum one counter attendant for 4.5 hours at
$16.50 per hour.
● Each store offering home delivery would require a delivery driver at $17 per hour for three hours.
Questions
● Most cost effective method of providing home delivery service to potential residential destinations
from all stores?
● Delivery costs if meals are delivered to all residential areas from Stores 3 and 4 only?
● Potential revenue from the venture?

Assessment Task 3
Delivery costs for home delivery service to targeted CBD and fringe residential areas
Residential Areas within delivery zones
Res Area Ability to

Res Area 2 Res Area 3 Res Area 4
1 supply
Store 1 $3 $4 $5 $4 30
Store 2 $4 $3 $5 $2 20
Store 3 $5 $5 $3 $3 75
Store 4 $4 $2 $6 $5 90
Potential demand 20 40 30 30
Ability to supply = holding capacity of each store, not how many menu items are stocked.
Delivery costs for home delivery service to targeted CBD and fringe residential areas
Residential Areas within delivery zones
Res Area Ability to

Res Area 2 Res Area 3 Res Area 4
1 supply
Store 3 $5 $5 $3 $3 75
Store 4 $4 $2 $6 $5 90
Potential demand 20 40 30 30
Res Area 1 = Carlton, Collingwood Res Area 3 = North Melbourne and Docklands
Res Area 2 = East Melbourne Res Area 4 = Southbank
CoffeeVille proposed dinner service
Menu item Forecasted Forecasted Selling Forecasted Forecasted

Selling price
average demand price – average demand
in-store
spend delivery spend
Hot menu $10–$15 $12 80 $14–$20 $17.50 120
Cold menu $9–$12 $10.50 30 $14–$18 $16 30
Packaged
$3–$5.50 $4.50 20 $5–$8 $7 60
drinks

Assessment Task 3
Appendix 3
Risk management plans and business impact analysis
Risk management plans

Extract from CoffeeVille Risk Management Strategy Plan
L = Likelihood I = Impact P = Priority
Lw = Low M = Medium H = High
Risk Risk assess Controls Monitoring Timelines Responsible
L I P
Emergence of a competitor M M M Continuous implementation of marketing Continuous monitoring Monthly Rufus Belcastran
within very close proximity. strategy to highlight key points of difference of competitors’ Emma Belcastran
between us and competitors. marketing campaigns.
Increased frequency of promotional campaigns.
Selective discounting.
Adjustment to marketing strategy to ensure
differentiation and appropriate positioning of
CoffeeVille in order to compete effectively.

Assessment Task 3
Food poisoning complaint/s Lw H H Continuous monitoring of implementation of food Continuous monitoring Weekly Rufus Belcastran
from customers. safety procedures. of food safety records Emma Belcastran
and logs. Store Manager
Regular food safety refresher training provided
to all staff.
All new employees given food safety training if
they do not have a food handler’s certificate.
Changes to local customer M H M Limited ability to apply controls due to lack of Monitor customer Quarterly Rufus Belcastran
demographics ability to influence. formal and informal Emma Belcastran
feedback. Store Manager
Apply pricing, payroll, inventory and wastage
controls to limit negative impact on financial Monitor real estate
viability. movements and
business statistics in
Expand services if changes are positive for
CBD area.
business operation.
Changes to local economic Lw H M Limited ability to apply controls due to lack of Monitor business and Quarterly Rufus Belcastran
environment ability to influence. economic environment Emma Belcastran
in catchment area.
Apply pricing, payroll, inventory and wastage
controls to limit impact on financial viability.

Assessment Task 3
Business impact analysis

Business Importance/ Potential losses – per store
impact impact
Business risks 1 = high Revenue Costs Staff Penalties Liability Reputation / Timeframe for Length of
good will impact impact
5 = low
Emergence of 3 loss $500– $500 pw Loss 1–2 NA NA NA Immediate Permanent

competitor $600 per marketing
day
Food poisoning 2 loss $500– $2,000+ Retaining Possible Possible High Immediate Minimum 6 – 12
complaint $600 per costs fines court months
day action
Changes to local 3 loss $200– $100 pw Loss 1–2 NA NA NA 2 – 6 months Dependant on

customer $300 per marketing + nature of
demographics day? menu change
changes?
Changes to local 3 Unknown Unknown Loss 1–2 NA NA Medium due to 2 – 12 months Unknown do to
economic assumption changes in food lack of control
environment higher and service
quality
Reduced 1 loss $100– Unknown Loss 1–2 NA NA Medium due to 2 – 12 months Unknown due to
profitability due to $600 per changes in food lack of control
increasing day and service
expenses quality

Assessment Task 3
Appendix 4
City of Melbourne demographics
The following information are extracts from City of Melbourne Daily Population Estimates and Forecasts
2015 Update report.1
Population overview
The number of city residents is forecast to grow at around 3.2% annually during the next 16 years (from
2015 on), with more than 202,000 people calling Melbourne home by 2030.
The number of workers is forecast to grow at around 2% annually during the next 16 years, with an
estimated 526,000 people travelling to work or undertake work-related activities in the city by 2030.
Weekday daily resident population estimates and forecasts

Living in the city continued to gain momentum over the past two years. It is estimated that more than
122,000 people – including under 15 years of age – resided in the municipality in 2014. This represents
a 15.9% growth from 2012 which is an equivalent of 16,788 additional residents in the city. The top five
largest growth SA2s (Statistical Areas Level 2) are:
● The Melbourne CBD with 6,979 additional residents (up by 29.2%)
● Southbank with 3,279 additional residents (up by 24.2%)
● Carlton with 1,872 additional residents (up by 12.2%)
● Docklands with 1,713 additional residents (up by 26.6%)
● North Melbourne with 1,703 additional residents (up by 9.9%)
Total daily population estimates and forecasts

Municipality of Melbourne (all areas including CBD and fringes)
Year Residents Workers
2011 100,000 376,000
2012 105,000 380,000
2013 116,000 382,000
2014 122,000 386,000
1
City of Melbourne, 2015, Daily Population Estimates and Forecasts, City of Melbourne, available
online, viewed January 2016, <https://www.melbourne.vic.gov.au/SiteCollectionDocuments/daily-
population-estimates-and-forecasts-report-2015.pdf>.

Assessment Task 3
2015 126,000 392,000
2016 135,000 397,000
2017 137,000 407,000
2018 141,000 418,000
2019 144,000 428,000
2020 148,000 439,000
Estimated Resident Population Growth Rates between 2004 and 2014 by

SA2
Source: ABS, Resident Population Growth, Australia 2004 to 2014 (cat. no. 3218.0)

Assessment Task 3
Appendix 5
Assessment questions
1. Briefly discuss how you ensure you have sufficient, valid and reliable evidence and information
available to support determining the best course of action to take and making a final decision.
2. Briefly outline about specialists or other relevant groups or individuals who could assist in your
analysis and decision-making process.
3. Who has the authority to make the final decision about what course of action to take to address the
identified business issue?
4. Briefly describe how your recommendation to Emma and Rufus is consistent with CoffeeVille’s
values, objectives and standards.

Assessment Task 3
5. You have been given this project in early January. Emma and Rufus are aware that, depending on the
course of action chosen, it could take some time to implement the necessary changes and have an
impact in the business’s financial status.
They would prefer the analysis process and recommendation to be made as soon as possible – by end
of February if possible. They have set end of March as the absolute latest timeframe for this project to
be concluded.
Develop a basic planning timeline to present to Emma and Rufus, outlining timings for the identification,
analysis and decision stages and a completion date for the resolution of the business problem or issue.

Assessment Task 4
Disseminate information
Submission details
You will demonstrate the skills and knowledge required to design, test and update systems and
communication plans to disseminate information to the organisation.
Using the simulated business information provided, and in response to a scenario, you will ensure up-to-
date, relevant and accurate information is documented and disseminated according to organisational
needs, a communication plan and within legislative requirements. Information systems used to capture,
document or disseminate information are designed, tested and updated to meet information
requirements of decision makers.
Procedure
2. Review CoffeeVille simulated business documentation, including policies and procedures relating
to communication, privacy and confidentiality of information to assist in understanding and
managing information dissemination within the business.
3. Research management information and decision support systems based on the criteria
established by CoffeeVille’s owners. You can use digital technologies to investigate new
technologies and explore new ideas for the storage and dissemination of information.
4. Prepare a report for CoffeeVille’s owners based on their specified criteria and requested content
as outlined in Appendix 1.
5. Prepare a communication plan for the dissemination of information within the organisation. The
communication plan should maintain effective workplace relationships, help meet organisational
goals, and ensure organisational policies, procedures and regulatory requirements are being
met.

Assessment Task 4
Specifications
You must submit:
● a written report which meets all information requirements specified in Appendix 1
● relevant information you have researched about the management systems – please attach to
your report
● a completed communication plan.

● ensure organisational policies, procedures and regulatory requirements are being met
● monitor and review organisational policies, procedures and adhere to legislative requirements
● use communication skills to access and share information and build and maintain effective
working relationships
● use digital technologies to manage business operations for strategic and operational purposes
● use management skills to:
○ make high impact decisions

○ plan and manage activities that have implications for the whole organisation
○ work autonomously when making high level decisions to achieve and improve
organisational goals
○ explore new and innovative ideas through analysis and critical thinking.

Assessment Task 4
Appendix 1
Emma and Rufus Belcastran have decided to expand rather than contract their business. They have
chosen option 3 and are in the process of planning their new take-home and meal delivery venture.
They also feel that they would have identified their recent business issue sooner if they had access to
better information faster. As a result, they have asked you to investigate management systems for their
business.
The business currently uses the following computerised systems:
1. Integrated food and beverage system:
○ Point of sale ordering system
○ Inventory control
○ Basic customer relationship management (CRM) system including customer database
and loyalty options
2. Accounting system.
System criteria
They have established the following criteria.
● Capable of communicating or integrating with the existing food and beverage and accounting
systems if possible.
● Provides real-time updates of key data in an easy-to-read and understandable format. They
identified mainly financial data such as sales, revenue and costs as their key data.
● Capable of preparing some customised reports. Most reports they require are standardised
formats.
● Able to provide data and information that will assist in short and long-term decision-making.
● Able to complete relevant statistical, sensitivity and quantitative analysis techniques such as
those used to assist in evaluating the recent business issue.
Their overall goal is a system that will help them identify potential issues and make better, faster, more
informed decisions.
They have no preferences about the type of system as they have not undertaken any research yet.

Assessment Task 4
Report requirements
They want you to investigate and report on the following.
● Types of systems that would be appropriate for their business.
● An outline of how the systems will optimise the efficiency and quality of information, its
dissemination and the operation of the business.
● A list of the types of information needed within the organisation, including who needs it, when,
where and why.
● A description of how database information will be retrieved and updated.
● An outline of tasks that will need to be completed when designing and testing the selected
management system to ensure it meets organisational needs.
● A description of how the new management system will enhance security of the business’s data
and intellectual property. You can provide references to confidentiality / privacy policies as well.
Briefly discuss any changes that may be required to internal systems and procedures to enhance
these security systems.
Communication plan
To support your report they would like you to write a sample communication plan that outlines how
details of the new take-home and meal delivery venture will be disseminated to employees and any
relevant financial supporters (e.g. financial institutions such as banks, their accountant, investment or
financial advisors, credit card providers). Make sure the communication plan meets legislative and
organisational requirements for privacy and confidentiality of information and is updated regularly.
A sample plan template has been provided in Appendix 2.

Assessment Task 4
Appendix 2: Communications plan template
Title:
Date:
Project team:
Situational Analysis: SWOT
Strengths Weaknesses
List the organisation’s communication strengths. List the organisation’s communication weaknesses.
Opportunities Threats
List the organisation’s communication opportunities. List the organisation’s communication threats.
Objectives
List the relevant objectives, including relevant organisation-wide objectives and specific objectives for communication and
consultation.
Goals and targets

List the organisation’s communication-specific goals and quantitative targets.
Audience analysis

Assessment Task 4
Internal audience characteristics External audience characteristics

List the organisation’s internal audience and List the organisation’s external audience and stakeholder
stakeholder characteristics. characteristics.
Key messages
Outline key messages tailored to each audience.
Strategies and tactics

Outline strategies and tactics associated with the communications plan, including rationale behind media channels selected.

Assessment Task 4
Action plan
Action/activity Timeframe Person/s responsible Resources, if required


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Assessment Task 1

BSBINM601 Manage information and knowledge

Obtain information on business issues

RTO: 22332 Version: 2

● An explanation of this conclusion including a description of identification of the data and

○ assisted in identifying and analysing the business problem or issue;

Your assessor will be looking for demonstration of your ability to:

● build and maintain understanding of a problem of issue

● use numeracy skills to interpret complex statistical and researched information

RTO: 22332 Version: 2

RTO: 22332 Version: 2

CoffeeVille – general information

Business goals and objectives

● Control direct and indirect operational costs.

● Maintain superior product and service standards.

● Establish CoffeeVille brand as an ethically and environmentally responsible company.

● Maintain highly trained and motivated staff.

RTO: 22332 Version: 2

The CoffeeVille team

● 4 fully trained baristas

● 6 full-time and 12 casual food service attendants

○ Large percentage of office workers (80% of daytime trade).

○ Male and female.

RTO: 22332 Version: 2

○ Eat out most times for lunch in a week.

RTO: 22332 Version: 2

RTO: 22332 Version: 2

● Food and beverage sales are a consistent 3–4% under budget.

● A new competitor is due to open 100 metres away in February 2016.

RTO: 22332 Version: 2

Financial year July 2014 – June 2015

Sales $ July Aug Sept Oct Nov Dec

Total income 559,227 553,508 545,048 531,114 510,228 453,144

Net profit/loss 77,037 82,574 61,617 79,431 48,482 48,158

Sales $ Jan Feb Mar April May June Year Total

Total income 442,398 467,398 493,641 502,592 501,155 503,148 6,062,600

Net profit/loss 29,334 45,533 50,908 55,080 36,957 24,518 639,629

RTO: 22332 Version: 2

Financial year July 2015–June 2016

Sales $ July Aug Sept Oct Nov Dec

Budget variance report – All stores

Financial year 2011-12 2012-13 2013-14 2014-15 2015-16

Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

Food sales 5% 8% 7% 12% 8% 1% -3% -8% -10%

RTO: 22332 Version: 2

CoffeeVille customer information

Average spend Average spend

Coffee $3.35 $3.85 15% While average spend

Summary customer feedback forms Jan–Dec 2015

● Great coffee, great service.

● Can you open a store near the new office in Fairfield?

● Loved the vegetarian frittata!

● Best mocha I’ve had in weeks!

● Service staff always happy to see you

● Vote 1 Karlie best barista in town!!

● Going to miss you all

● Good coffee but expensive compared to Zelda’s.

Summary customer comments Facebook Jan–Dec 2015

● Love that you guys do free trade.

● Look at the art on this coffee!

RTO: 22332 Version: 2

Loyalty Club membership

Total 127 99 18 10 117