Case Study

Assessment Task 2: Case Study
TASK SUMMARY:
For this assessment task you are required to complete a written report in the required template.
You will have a total of eight (8) hours to complete this assessment
RESOURCES AND EQUIPMENT REQUIRED TO COMPLETE THIS TASK
 Access to Student Learner Guide
 Computer and Microsoft Office
 Access to the Internet for research
 Handout – How is the Industry Trending
 Handout – Strategic Business Plan
Assessment Task 2 – Case Study
INSTRUCTIONS TO STUDENT
Read the background information and review the following:
1. Handout – How is the Industry Trending; and
2. Handout – Strategic Business Plan
Case Study Background Information
You have recently been appointed the General Manager of a new start up business, producing and selling gourmet donuts, Clinton Doughnutz.
The company has a commercial kitchen in Abbotsford, (Melbourne) with 4 qualified patisserie chefs ready to start in 8 weeks and a refrigeration van and driver who is also available to start on demand, who happens to be the brother of one of the director’s.
In the past 3 weeks, one of the company directors’ wife’s has established networks and relationships within the hospitality industry, and already managed to sign contracts/ agreements with 45 local and surrounding area cafés to supply them with 20 fresh donuts each day, with a potential supply increase depending on customer demand, commencing in 8 weeks.
The two (2) non-executive directors/ investors and sole shareholders have no aspirations to be involved in the business at an operational level and relying on your expertise to shape the businesses future.
The directors have shared with you the goals, objectives and proposed costs of the business which include:
• Daily revenue KPI of $5,000.00 per day over 5 operational days per week
• Interstate expansion within 2 years
• Individual wholesale price of each donut is $3.50
• Individual retail price of each donut is $6.50
• Ingredient cost of each donut is $0.80 – $1.00
• Target of 20% overall profit
• Chef costs $40.00 per hour (based on 8hr working day)
• Delivery driver costs $25.00 per hour (based on 8hr working day)
• Daily administrative and management costs (5 days per week) $600.00 per day
• Rent and fixed over heads of $48,000.00 per year
Case Study Activity
Develop a Report for the Directors
The directors have shared their expectations of you, for the next few weeks in order to potentially reshape/ revise their current Strategic Business Plan, prior to commencing trading.
Using the below template, develop a report for the Directors outlining each of the following expectations:
• Investigate information on business markets, customers and methods of doing business.
• Analyse and compare the current market for the business and the customer base with typical business markets and customers
• Analyse and contract current business relationships, business processes and methods of doing business with other innovative businesses
• Investigate business strategies to identify opportunities for innovation and reform
• Assess opportunities for their compatibility with business goals and objectives and conduct a cost- benefit analysis of each
• Evaluate the degree of likely change and the ramifications for the business and its culture for each opportunity
• Conduct a risk management analysis and formulate a plan for dealing with contingencies according to organisational requirements
• Rank opportunities in terms of their viability and applicability to the organisation
• Identify innovation opportunities which could be included in the revised strategic business pan and prioritise them for proposed implementation 
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Report for Directors
Name of Author
Date of Report
Section 1
Analysis of current business market and competitors
A) List of major competitors in this industry
List a minimum of four (4)
1)
2)
3)
4)
B) Outline of information on investigated business markets
List a minimum of six (6) potential business markets
1)
2)
3)
4)
5)
6)
7)
Source of information:
(reference the source of information here)
C) Comparison of current business market and new investigated markets identified above
(Outline your analysis of both current and newly investigated markets)
D) Outline of information on investigated potential customers
List a minimum of four (4) 1)
2)
3)
4)
Source of information:
(reference the source of information here)
E) Comparison of current customer base and new investigated customer base identified above
(Outline your analysis of both current and newly investigated customer bases)
F) Outline of information on investigated potential methods of doing business
List a minimum of two (2)
1)
2)
Source of information:
(reference the source of information here)
G) Comparison of current business relationships, business processes and methods of doing business with other innovative businesses/ major competitors identified above
(identify differences with other innovative competitors in terms of Business relationship, business processes and methods of doing business)
BUSINESS RELATIONSHIPS:
BUSINESS PROCESSES:
METHODS OF DOING BUSINESS:
Section 2
Identify business opportunities for innovation and reform
A) Investigate and identify innovative business strategies that could be adopted by Clinton Doughnutz to encourage its financial success
List a minimum of four (4) Rank innovative business strategies/ opportunities in terms of their viability and applicability to the organisation.
1= Most viable and applicable
4 = least viable and applicable
Description of Innovative Business Strategy
(Potential business opportunity)
1.
2.
3.
4.
Source of information:
(reference the source of information here)
B) Cost- Benefit Analysis
On current contract/agreements to determine compatibility with business goals and objectives
Revenue/ Income Description
(based on contract/ agreement value) Daily Income
(based on 5 operational days per week) Annual Income
(based on 52 weeks per year)
$ $
TOTAL $ $
Expenses Description Daily Expenses
(based on 5 operational days per week) Annual Expenses
(based on 52 weeks per year)
C) Current Cost Benefit Analysis
Outline if the above cost benefits analysis meets the businesses goals and objectives.
(Outline, why or why not)
D) Should the business stick to the current strategic plan.
Evaluate the degree (low, mid or high) of likely change and the ramifications for the business and its culture
Ramification to the business
List a minimum of three (3) Degree of Ramification
(Low, Mid or High)
Outline of what is the likely effect this will have on the business culture:
E) Cost- Benefit Analysis
Apply your #1 ranking identified innovative business strategy (From Section 2a of this report) to current income and expenses to determine compatibility with business goals and objectives
Revenue/ Income Description
(based on contract/ agreement value) Daily Income
(based on 5 operational days per week) Annual Income
(based on 52 weeks per year)
$ $
$ $
$ $
TOTAL
$ $
Expenses Description Daily Expenses
(based on 5 operational days per week) Annual Expenses
(based on 52 weeks per year)
$ $
$ $
$ $
$ $
$ $
$ $
TOTAL $
$
F) Current Cost Benefit Analysis
Outline if the above cost benefits analysis meets the businesses goals and objectives.
(Outline, why or why not)
G) Should the business adopt your innovative strategic plan.
Evaluate the degree (low, mid or high) of likely change and the ramifications for the business and its culture
Ramification to the business
List a minimum of three (3) Degree of Ramification
(Low, Mid or High)
Outline of what is the likely effect this will have on the business culture:
Section 3
Risk Assessment Analysis for the business, assuming the adoption of innovative strategic plan.
Complete the below Risk Assessment, based on your innovative strategy being adopted.
Use the Risk Matrix to calculate the risk and develop a contingency plan for each identified risk, appropriate to the businesses requires outlined in the Risk Matrix.
You must identify a minimum of five (5) potential risk and related contingencies.
Outline identified risk Likelihood Severity Risk Rating Outline a plan for dealing with contingency
1
2
3
4
5
**** END OF ASSESSMENT TASK 2 ****
What do I need to hand in for this task? Have I completed this?
Written Report on required template 
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