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.
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
- Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
- Review and familiarise yourself with CoffeeVille’s general business information in Appendix 1.
- Review and evaluate business performance data and information in Appendix 2.
- Review and analyse customer and marketing information in Appendix 3.
- Review and analyse management and staff meeting summaries in Appendix 4.
- 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.
- 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.
- 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.
- 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.
- Prepare a short written report for Rufus and Emma. The report should include the following information.
● 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?
Assessment Task 2
BSBINM601 – Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 2 of 16
● 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. - Submit the written report and any research information (if applicable) to your assessor as per the specifications below.
Specifications
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 2
BSBINM601 – Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 3 of 16
Appendix 1
Appendix 1
CoffeeVille
CoffeeVille –– your briefyour 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
CoffeeVille –– general informationgeneral 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 2
BSBINM601 – Manage information and knowledge
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CRICOS: 03234B Page 4 of 16
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 2
BSBINM601 – Manage information and knowledge
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CRICOS: 03234B Page 5 of 16
● 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 2
BSBINM601 – Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 6 of 16
Appendix 2
Appendix 2
Coffee
CoffeeViVille business informationlle 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.
● 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.
Assessment Task 2
BSBINM601 – Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 7 of 16
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 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 8 of 16
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 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 9 of 16
Financial year July 2015–June 2016
July–December 2015 Sales $ July Aug Sept Oct Nov Dec
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
External catering
60,207
60,358
56,476
55,457
52,111
47,597
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 2011 Jan-Jun 2012 Jul-Dec 2012 Jan-Jun 2013 Jul-Dec 2013 Jan-Jun 2014 Jul-Dec 2014 Jan-Jun 2015 Jul-Dec 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 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 10 of 16
Appendix 3
Appendix 3
Customer
Customer and and marketing marketing informationinformation
CoffeeVille customer information
Customer spending patterns
Item
Average spend – 2011
Average spend – 2014
Variance
Comments
Coffee
$3.35
$3.85
15%
While average spend has risen, Emma and Rufus feel this is a result of general price rises, not customers purchasing more items.
Food – takeaway
$8.65
$9.80
13%
Food – sit down
$9.20
$10.45
14%
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.
● 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!
Assessment Task 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 11 of 16
● Thanks for my birthday coffee. Was looking forward to it all morning!!
Loyalty Club membership
Membership activity from December 2014 to May 2015.
Membership
Members 2014 *
Active members
Inactive^
Cancelled
Total 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
● business environment in CBD (closures)
● general economic concerns
● healthy lifestyle and eating habits.
Assessment Task 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 12 of 16
Survey results
Question
Responses
Have you ever visited a CoffeeVille store?
Yes 67%
No 33%
Which store do you visit? (Can choose more than one store)
Store 1 49%
Store 2 43%
Store 3 27%
Store 4 12%
How times a month, on average, do you visit the coffee shop?
1–4 times 25%
5–9 times 27%
10–15 times 31%
Most days 17%
What is your purpose for visiting CoffeeVille? (Can choose more than one store)
For the coffee 69%
Get something to eat 46%
To read the papers 18%
To meet others 22%
To relax 15%
How would you rate the overall friendliness of the staff? (with 5 being the most friendly)
5 = Excellent 53%
4 = Very good 32%
3 = Good 12%
2 = Fair 3%
1 = Poor 0%
0 = Awful 0%
How do you rate the price of your food and/or beverages? (with 5 being an excellent price)
5 = Excellent 22%
4 = Very good 28%
3 = Good 29%
2 = Fair 15%
1 = Poor 6%
0 = Awful 0%
How do you rate the variety of products? (with 5 being the best variety)
5 = Excellent 33%
4 = Very good 32%
3 = Good 33%
2 = Fair 2%
1 = Poor 0%
0 = Awful 0%
How do you rate the product quality? (with 5 being excellent quality)
5 = Excellent 50%
4 = Very good 28%
3 = Good 18%
2 = Fair 4%
1 = Poor 0%
0 = Awful 0%
Have you found your wait in line to be too long for your satisfaction?
No, very fast 48%
No, pretty quick 32%
A bit slow 18%
Waited ages 2%
Very slow 0%
Assessment Task 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 13 of 16
Appendix 4
Appendix 4
Management and team
Management and team meeting summariesmeeting 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
Rufus – Owner/Operations Manager
● 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
Rufus – Owner/Operations Manager
● Sales down across all revenue streams.
● Need a sales push to capture foot traffic in city for Christmas shopping.
Assessment Task 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 14 of 16
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
Rufus – Owner/Operations Manager
● 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
● 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.
Assessment Task 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 15 of 16
● 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 2
BSBINM601 Manage information and knowledge
RTO: 22332 Version: 3.0
CRICOS: 03234B Page 16 of 16
Appendix 5
Appendix 5
Report Format
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
