RISK REVIEW
SCOPE

Review the associated risks for expansion of operations in Queensland and the purchase/re-branding of existing café in Toowoomba covering: * human resources management; * financial operations; * OHS; * supply chain; * local governance and compliance.

GOALS OF REVIEW

* Meet with staff and current manager at Toowoomba store * Meet with stakeholders and examine current store operations * Identify risks and tabulate * Report on findings to Board, CEO and FARM Committee

STAKEHOLDERS Stakeholder | Internal/external | Role in process | Stake in process/concerns | MacVille Board | Internal | Owners | High: potential financial loss/reputation of brand | Paula Kinski | Internal | CEO | High: loss of reputation | F.A.R.M Committee | Internal | Assist with transition and ongoing management | Low | Ron Langford | External | Councillor and landlord | High: loss of tenant | James Mansfield | Internal | Café manager | High: job loss/reputation | Goldsmith Partners | External | Legal | Medium: loss of client income | Accountant/Financers | External | Financial | Medium: loss of client income/financial losses | Employees | Internal | Customer service | High: cut in working hours, job loss, work injuries | Chef | Internal | Food preparation | High: cut in working hours, job loss, work injuries, loss of reputation | Public | External | Customer | High: loss of easily accessible, affordable social venue |
ANALYSIS

P.E.S.T.

Political * Federal legislation concerning efficient water usage (presenting fines of up to $50,000 for excessive water breaches) * by-law allowing cafes to expand their footpath dining | Economic * gross regional product growth of 8.9% * number of visitors down 18% | Social * place for retirees * growing population | Technology * National Broadband system * Parbake cooking system |

S.W.O.T.

Strengths * Café location on the corner of the two main streets of the city makes easy access and highly visible. * Innovative and unique rice wraps | Weaknesses * old and unattractive fitout, particularly toilets & dishwasher * lack of sales promotion * no written procedures or policy * uneconomical water usage * long drive from Brisbane | Opportunities * Expansion to shopping centres * Footpath dining * Utilise local suppliers | Threats * Competition from international café chain * Water usage fines * Breach of privacy laws with staff information * Break-ins due to takings left in premises |

RESEARCH

Source | Data | Key Information | Observation | Primary | Distance form central bakery, location & condition of premises | James Mansfield | Primary | Daily operations, cash handling, water usage, OHS issues, employment conditions | Ron Langford | Primary | Council by-laws, Government legislation, economic expansion, competition, technology plans | Toowoomba Regional Council | Secondary | Economic indicators: tourist numbers, unemployment, population growth, regional growth | MacVille NSW Expansion Report | Secondary | Internal controls, cash handling, monitoring and recording.Compliance standards in OHS, Privacy and industrial relations law. Written policy and procedures. Professional business culture. Monitor the external environment for opportunities & threats. | CHECKLIST | Y | N | Human resources management * Policy and procedures manual * Staff training * Duties & delegations * Confidentiality of staff information * Morale / motivation | | | Financial operations * Banking procedures * Cash security policy & procedures | | | Occupational Health & Safety * Travel risks * Quality, maintained furniture & fittings * Staff safety procedures in place | | | Supply chain * Ability to deliver fresh pastry from central bakery plant in timely manner * Ability to source local produce * Beneficial to invest in Parbake system | | | Governance * Water usage procedures * Scope for water saving measures (ie: compliant dishwashers, dual flush toilets, water tank) * Compliance with OHS legislation * Compliance with Privacy Act * Compliance with Industrial Relations legislation * Regional Council leniency to allow upgrades | | | Environment * Quality location * Established customer base * Future growth of region * Footpath dining * Professional business culture | | |

COMMUNICATIONS TABLE

Stakeholder | Frequency | Method | MacVille Board | Monthly | Teleconference | Paula Kinski | As required | Email, telephone | F.A.R.M Committee | Weekly | Teleconference, email | Ron Langford | As required | meetings, telephone, email, formal letters and council application forms | Goldsmith Partners | As required | meetings, telephone, email, formal letters | Accountant/Financers | As required | meetings, telephone, email, formal letters | James Mansfield | On-going | meetings, telephone, email | Employees & Chef | On-going | Staff surveys, meetings, newsletters | Public | On-going | Surveys implemented in conjunction with James and staffPublic notices |

TELEPHONE SCRIPT

Hi James, it’s xxxx from the Queen Street store calling. Congratulation on your appointment to 2IC!
Thank you!
I’ll be joining you in Toowoomba shortly, but firstly Paula, our CEO has organised for me to visit with you next week.
That’s great, xxxxx, I’ve heard you will be joining the team.
I’ll be conducting a risk assessment on behalf of head office while the acquisition process is proceeding. I just want to run over a few things that will make our day run a bit smoother as I also have a meeting with Ron Langford in the afternoon.
Fabulous idea! There is potential here for a standout café, however it does need a large overhaul.
Would you be happy to prepare a few things in advance?
Absolutely, what would you like me to organise?
First thing I will be wanting is an overview of the store and surrounding area, in particular culture of the business, customer base, staff conditions, policy, procedures and any OHS issues.
That will not be a problem, I already have prepared a few notes.
Great! I’ll also be looking at what is on the menu and how we can implement new innovations.
The current menu is working well, I have some ideas on how we can implement some new tastes. The chef is really open to new products and sourcing local suppliers.
Sounds like you are a few steps ahead of me James. I’ll be probably taking heaps of notes! We can discuss all this when me meet next week. If there is anything you need to me to know that is confidential at this point, just drop it in an email.
Sure, I’ll do that for you this afternoon.
I look forward to meeting you James. See you next week!
Looking forward to it as well, see you then.