Risk Management For Staff Turnover And Productivity

Effectiveness of the risk management framework

Discuss about the Risk Management for Staff Turnover and Productivity.
 

The Coffeeville business is undertaking steps to expand their operations through the Lakes Entrance store. The depiction of the risks and the proper management of the same are the major elements that are focused by the higher authorities of the organization. The differences in the strategies and the manner in which the manager, Ash, communicated the different risks with the stakeholders are the major standpoint for the report. The assessment of the different risks that might be faced by the enterprise while making its expansion in the international markets will be helping the same to formulate strategies. The report will be focusing on the different approaches that might be undertaken by the business while undertaking the expansion. 

The risk management framework that is framed by the organization is based on the proper communication of the assessed risks and thereby the different strategies that might  be designed by the organization to mitigate the issues that might restrain the activities of the business.  The different policies and regulations that are created by the organization relating to the staff satisfactions and the different internal and external audits on risk assessment will be helping the organization to build on different strategies to avoid the different unfortunate circumstances related to lower staff turnover and productivity of the business. On the other hand, the monthly reporting systems of the organization will be helping the same to keep themselves updated with the situation of the organization in the market.

The risk management framework that is created by the organization will be helping the same to assess the risks that might be faced by the same while considering the current expansion through the new store. The evaluation of the monthly budget and the reporting systems will be helping the management of the organization to assess the risks and thereby bring in changes in the systems of the business.

The scope of the risk management strategies that are undertaken by the business has helped in maintaining the different levels of changes in the systems of the business. The risk assessment will be based on the evaluation of the market and the different preference of the consumers.

The success factors of the risk assessment will be based on the identification of the different levels of risk that might be faced by the organization while undertaking the expansion.  The critical success factors of the risk management systems that are imposed by the organization is dependent on the efficiency of the assessment that are undertaken by the evaluators. the evaluation will e helping the risk management systems of the organization to strengthen the3ir grounds while operating in the international markets.   

Scope of the risk management strategies

SWOT and PEST

PEST analysis of the organizational expansion

The analysis of the risks that might be faced by the organization while undertaking the expansion of the business will be helping the business to make the important assumptions and thereby formulate strategies for the proper functioning of the business per the objectives of the same.  The different risks that are recognized by the organization while undertaking the expansion are Banking risk, Travel risk, By-law compliance risk and Brand recognition risk. The enumeration of the different risk factors will be helping the business in conducting a safe processing of the business operations.

Dear Sir/Madam,

It is to bring to your notice that the Coffeeville is  willing to expand through the Lakes Entrance store. In this regards the team of risk assessors of the organization has put forward different risks that the organization might encounter while undertaking the activities. The risks that might be encountered by the organization while undertaking the expansion are Banking risk, Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to come up with any other risks that we might face while undertaking the expansion of the business. The organization requests its stakeholders to contribute to the establishment of the organization and thereby contribute to the goals of expansion of the business.

Thanking you for your time.

Yours sincerely,

Ash

Manager at Coffeeville 

Email to the CEO

To the CEO

Coffeeville Limited,

Dear Sir,

The following email has been sent to the stakeholders of the organization asking them for extending their contribution in identifying the different risks that might be faced by the organization while undertaking the expansion through the Lakes Entrance store. Here the message is being forwarded to you for evaluation.   

Dear Sir/Madam,

It is to bring to your notice that the Coffeeville is  willing to expand through the Lakes Entrance store. In this regards the team of risk assessors of the organization has put forward different risks that the organization might encounter while undertaking the activities. The risks that might be encountered by the organization while undertaking the expansion are Banking risk, Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to come up with any other risks that we might face while undertaking the expansion of the business. The organization requests its stakeholders to contribute to the establishment of the organization and thereby contribute to the goals of expansion of the business.

Critical success factors

 Thanking you for your time.

Yours sincerely,

Ash

Summary of the events

• The assessment of the risks that might be faced by the organization while undertaking the expansion
• The risks being communicated to the stakeholders via email and thereby asked for their assistance
• Forwarded the email to the CEO of the organization for further evaluation and thereby undertake complete communication 

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

There are four risks that the Coffeeville Company has to deal with in order to retain its business activities in the competitive market of Australia. The possible risks are as follows:

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

Risk matrix

Based on the understanding regarding the intensity of the risk factors it can be argued that a series of necessary measures have to be implemented in order to mitigate the organizational risks in Coffeeville Company. The first treatment can be identified as the business rules and regulations for the Coffeeville Company employees. In other words, to keep the organizational activities flawless the Coffeeville management has to implement some code of conducts that the staff are compelled to follow. The next treatment is referred as the measures regarding brand recognition. Both the marketing and the organization tools are required in order to build strong brand recognition.

For identifying the risks and implementing an effective plan, the management must have proper risk management strategies. It can be estimated that the first step will be identifying the risks and then taking a deep investigation on the degree of risks. Based on this understanding it will be beneficial for the company to prioritize the risks and conduct risk mitigating strategies in this regard.

Identification of internal and external stakeholders

Action plan

This section is primarily focus on one of the risk factors that are mentioned above. In this context, brand recognition will be the chosen risk factor that needs to be fixed in the top priority. The reason behind choosing brand recognition is that the Coffeeville Company is suffering with the issue of brand recognition in the intense competitive market in Australia. As a result of that the company management realizes that this problem has to be resolve in a priority basis.

In this regards, some brand recognition tools has to be introduced to help the Coffeeville Company adapt with the change in the market.

It will be beneficial for Coffeeville Company to promote its brands through social media advertising. With the growing significance of the social media, it becomes an effective tool to shape the recognition of a brand. Moreover, promotional messages in terms of emailing and normal mobile text message for the promotion can also be considered effective.

It can be identified by enhancing the skills and efficiency of the employees by giving them adequate training. It is the responsibility of the Coffeeville Company to make its staff efficient and in return yield more profit through customer satisfaction.

Customer service is considered to be one of the effective tools in this regard. The good environment with polite behavior of the employees can be an important aspect for the Coffeeville Company. It will gradually help to build a strong brand recognition by facilitating positive image of the brand and the company as well.

The execution of the risk management has helped the organization in identifying the different risks and thereby formulate strategies to mitigate the same through the creation of an action plan. Six months have passed since the action plan has been submitted to the organization, as per the scenario. However, the plan that was formed by the management team of the organization has helped the same in bringing forth improvements in the systems of the business that is undertaken by the organization. The risks that was found initially were Banking risk, Travel risk, By-law compliance risk and Brand recognition risk for which the organization formulated different strategies. The different strategies that were considered by the organization while evaluating the risks and thereby bring in changes in the actions were discussed in the actions plan. The equal distribution of the risk undertakings among the different departments of the organization has helped the same in lowering the burden of the risk. On the other hand, the implementation of the strategies to manage the risks that are faced by the organization has helps the same in bringing forth changes in the systems of the business undertakings.

SWOT and PEST

The implementation of the different policies and procedures helped the organization in maintaining the congruency between the strategies and the basic development intentions of the organization while operating in the international markets. The development of the policies and the regulations has helped the organization in bringing forth changes in the systems of the business. On the other hand, the monthly business planning and budgeting helps the organization in presuming the different conditions through which the organization might make use of the expansion of the business operations. On the other hand, the training that is being delivered to the employees and the external audits has helped the organization in the proper enumeration of the risk factors. The external audits has helped the organization in maintaining the smooth functioning of the processes as per the objectives of the business.  The creation the FARM committee has helped the organization in maintaining the functions of the business while operating in the international markets.  

The outcome of the action plan was found through a survey of the events that took place in the organization post the implementation of the action plan. The financial controller of the organization took out some $ 5000 from the company’s bank account for the insurance cover. The teleconferencing system, which was planned by the organization, was not installed in the past 6 months. The board of directors of the organization came out with a policy of the conservation of the water that is utilized for the processes used by the organization. However, there are no specific strategies written for the conservation of the water.   A water tank was being erected by the organization; however, the pipelines still do not connect the tank, which could have helped the organization with the frequent supply of water. 

The identification of the risks that might be faced by the organization while undertaking the expansion has helped the same in undertaking careful strategies for the growth of the business. However, the issues that are faced by the organization have affected the functioning of the business. Travelling the long distance for the external auditors has created an impact on the proper performance of the business. On the other hand, the identification of the different issuers that might be faced by the organization has affected the objective of expansion of the organization. the policies and regulations that are formulated by the Board of directors of the organization seemed to stay in the papers rather than getting implemented in the situation of the business. It has affected the functioning of the business as planned by the managers of the business.

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