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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.

  1. Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
  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.

Identifying Causes of Declining Sales

1) CoffeeVille is a newly developed brand but all its stores are closing due to improper management and operational policies. In order to resolve this issue, the owners of CoffeeVille tried to offer highest attention towards the external and internal environment. This would be useful for the higher authority of the firm to determine its weaknesses and intensify its strengths considerably. The business data also need to be analysed effectively and then its declining sales might go higher and it would performance might get enhanced. Failure to do so, might prove extremely detrimental for the organization in this scenario among others. And the quality and cost of the products also need to be improved so as to create an attention of the customers towards the products and only then its command might get higher in the contending market place. To do so, proper training need to be introduced and this may be effectual for the employees of CoffeeVille in this competitive position since it would increase their skills. The eminence of the products would also get advanced.     

2) CoffeeVille is owned by Emma Belcastran and Rufus and the business was expanding steadily for last four years. CoffeeVille offers supreme quality fair trade coffee, cold gourmet food, superior hot and beverages to the local citizen of Melbourne’s central business district. The management of CoffeeVille has targeted marketing campaigns for increasing revenue. They also want to maintain superior service standards and product quality. The management of CoffeeVille is committed to appoint highly trained and motivated employees.     

3) The performance of store 4 is the best while the performance of store 3 is worst because external catering sales in November (21%) and December (23%) for last 18 months with steady increasing speed. A new competitor is about to open besides the store 4 in coming February 2016. Within last 12 months several promotional and advertising campaigns in the local area.

4) The marketing information of CoffeeVille includes great service and coffee. The menu of CoffeeVille includes Richmond including healthy salads. Service quality of CoffeeVille is committed to make the customer happy. According to summary customer comments Facebook Jan-Dec 2015.

5) Operation manager of CoffeeVille is Rufus who operate bookings for corporate Christmas parties between November and December. Emma as marketing manager usually make phone calls to the clients or sometimes personally visit with previous clients for rebooking. Sarah as a store manager appointed 20-30 skilled employees for formal Christmas party. The diner trade is raised due to higher residential occupancy near store. Meeting process includes hot food sales down that inspire higher wastage. The management has a preference for salads and sandwich bar. Received queries about getting several options added to the menu.

6) Sales manager at department store said retail sales are sluggish compared to this time last year. Lots of the people view the products but buying rate is very less. Hoping it will pick up soon. Besides that, lots of general chatter about economic concerns, terrorism, home interest loan rates possibly going up after Christmas. All these issues inspire general feel of the customers is negative. High competition around the local area. Another issue is high employee turnover of few stores.

Improving Product Quality and Cost

7) The information is accurate as the average spending in the year 2011 and 2014 remained higher and i.e. $3.35 and $3.85 and the variance becomes 15% and this shows that the expenditure of the company is rising. But, unfortunately the purchasing power is not increasing and so the reliability is not uplifting accordingly. Therefore, these issues need to be sorted in order to lift the income of the concern in the following years.

8) One of the critical issues of CoffeeVille is rapid competition that can reduce the competitive advantages. In this way, feedback of the customers is one of the main source by which CoffeeVille can gather essential information to formulate effective decision.

9) Both formal and informal networks are helping to analyse the business of CoffeeVille. In this way, business problems are mainly determined by informal networks. Social networks are one of the effective media that can help to determine personal thoughts and opinions. This would be the most advantageous method to increase the growth of the business in the coming era. If not, then CoffeeVille would not be able to prosper in the world and its expenditure rate might go on increasing day by day. Therefore, in order to attain a good place, the management and employees need to act uniformly so as to develop a strong foothold in the market.



According to the report, few business problems are identified in the case scenario of CoffeeVille, for example, high market competition and high price of the food products.


 After conducting a survey, most of the respondents agreed that CoffeeVille offers high quality products with high price tag. Conclusively, Rufus and Emma should consider this issue for long-term sustainability. In order to formulate effective decisions, both Emma and Rufus need to reduce the price of products to minimise this business issue.


To test the reliability and validity of the information, CoffeeVille should apply a qualitative marker survey. In this way, qualitative or secondary data is collected and primary data was rejected due to contradictory method.

Assessment 2

1) In order to increase the profitability and revenue of the firm, the owners approached. This is done in order to reduce the rise of extra expenses so as to enhance the prosperity. However, to do so, the issues aroused within the last three months need to be minimized so as to create a separate position for the company itself in the market as compared to others. Failure to do so, might prove troublesome for the organization to retain itself in this competitive scenario among many others. Apart from this, the external and internal environment need to be evaluated effectively so as to increase the presence of the firm in the market. Only then, the weaknesses may be evaluated and the strengths might be improved considerably. This would be worthy for the organization in the coming era.

2) The owners of Coffeeville have expanded their business. Therefore, the company has profitable business and also gradually increasing their business for last following 4 years. The business expenditure has started to increase and annual sale has been fluctuated. Coffeeville has started to different issues of the rising expenses through their developed and evaluating procedure as well as work preparation within an effort for reducing cost in the last 3 years. The efforts of Coffeeville have not consumed the noteworthy impact over the expenditure and also their sales revenue has been increased gradually. The leader have enquired to assist them to breakdown their business action and furthermore the external environment for identifying the budding reason for their declining turnover. 

Maintaining Superior Service Standards

3) The financial condition of Coffeeville situated at superior states that means in every year, the income growth has been increased. Therefore, the productivity of Coffeeville has enlarged with the workforce capability to help the customer and the growth of production have increased. As a result, the payroll expenses has been increased in last 6 years and cost of goods has been balanced by the increasing wages and food price. As per mentioned chart in appendix 2, comparison with the month of December, the total income raised at $119, 791 in July, and also net profit has been increased at $10,832. According to the budget, in 2015, from January to July, total income of Coffeeville has been fluctuating at -16% and also total expenses have been fluctuated at 2.10%. Besides that, total sales includes food sale, beverage sell and external catering, which has been increased in July, 2015 compare to last 5 years.

4) By analyzing research review, the business and general detailed information is available over the website of Melbourne. Therefore, two main areas are mainly placed at website. According to Reserve Bank of India, the interest rate is constant in last 12 months of the year 2014 as well as in 2015, the interest rate also same in 2015. Moreover, the rental rates per square meter or gross average rent has increased at $7000, compare to last year of 2013 to 2015 at Melbourne CBD. Therefore, the researcher showed that property investor and developers are usually facing the reduced returns and the unreliable future while commercial property market stall.

In addition, many small and medium business is leaving of CBD toward its suburbs and fringes. The annual research report showed that there are many factors against the business movement including the cost changes and saving in the manner people are also working. Besides that, the researcher also stated that 85% of the business that leaving of CBD in this last financial years and has relocated to the properties within the area of the company. Doing So, might prove effective in improving the professional position and brand image as compared to many others.

5)  In order to, Coffeeville should working on the plan for hitting their business development goals as well as their smart objective for conduct their profitable business. Therefore, the distinct sale based over smart objectives increased the annual income and succeed business development. After deciding which thing to measure, improve and monitor, an efficient things are to complete the quality objective actual within addressing that what requires to improve. In this way, the business objective of Coffeevile should plan to be SMART that define as specific, measurable, achievable, realistic and time based. Those elements should have significance on entire level of the company, which means that every employee must realize how their work support gathering the quality objective.

The major step needed while executing those smart objective of Coffeevile is to conform that the management is not only connected to the applicable individual, but every employees understand his or her own involvement. Moreover, the leader of coffeevile would also require to utilize the social media for promoting their blogs and also lead the generation offer. The management of Coffevile is perhaps getting the image of business procedure and the business objective that the business authority can set the financial budget and tactics. In addition, the efficient objective that the company set for their business where the leader have to be at the end of the upcoming financial year.




New companies moving in.

CBD predicts real estate growth.

Increase in demand of foods and beverages.

Decrease in food sales.

Declining footfall across all stores.

Decline in revenue.

New cafes opening.

Increase in demand for quality products.

Decline in market share.

Rise in residential vacancies.

Low return for residential projects.

Decline in residential market.

Targeted Marketing Campaigns

The owner of Coffeville is Rufus and Emma. Therefore, this company has four stores. The company earn efficient annual profit for their business procedure.

  1. Decision Support Systems or management information is the computer-based data system which help an organizations create the better decisions through providing the flexible tools for an analysis of their information and also identifying business pattern and trends. As well, this directly helps to business professional and managers by providing the interactive information support in the decision making procedure, from problem recognition toward the implementing decision of Coffeeville.

There are different approaches, technologies and techniques for the development and design of management information system. The impact of decision support systems are applied on the decision making and planning strategies.

Coffeeville is enhancing their ability to survive in competitions of new global market. The leader of Coffeeville is attempting toward advance their agility level through improving a decision making processes to more highly effective and efficient to meet consecutive market instabilities. The management has concerned with the progressive cycle investments by analysis of proposed course of action through management information system. High fraction of the company often used the Management Information Systems to help and support the services provision and adoption speed is probable for growing their business and also technology expands.

Decision making system states the process of the decision making by the end result of decision being of the secondary concern. Therefore, it is basically the two types of adjustments that the management of coffeevile have to make management information system for meeting their desired business objective. As well, the first step is to communicate and select the accurate principles to which the decisions must be followed. In addition, the second step needs the decision maker for applying the appropriate principles. Because of, decision making is simple to comprehend and are easy to connect to other organization.

Assessment 3

  1. To create the place of CoffeeVille in this scenario, the prices of the products need to be introduced as per the demand of the customers. Only then, the issues may be resolved and this may prove effectual for the company in the coming era. At the same time, varied types of strategies also need to be developed in order to improve the performance and productivity of the company. In addition varied types of new products such as home-packaged meals etc need to be introduced so as to create a separate place for itself.
  2. CoffeeVille is a chain of coffee shops situated in Melbourne. It is owned by Emma and Rufus. They follow a very simple and pyramidal structure in which the lower staffs like cooks, baristas and attendants report to store managers who report to the owners. This is a very effective structure and lots of big corporations follow similar structure. This structure is adequate and no rectification is required right now. But, it need to be maintained and managed accurately. Then it would surely present positive results for the organization in the coming future. Otherwise, the company might result in vain. Along with this, teamwork is extremely essential to intensify the total revenue and productivity of the concern in the long run.
  3. According to the CBD report the real estate sector is predicting growth and most of the buyers are corporates which means that new offices will come up which will employ lots of people and will increase lots of employees will be hired who will create a demand for foods and beverages. Coffeeville already maintains a high quality for their products. But recent data shows that food sales are down by 10%, beverage sales by 12% and catering by 17%. Profits have dropped by 19% and payroll expenses have risen by 10.5%. So the company must focus on starting home packaged and meal delivery systems which will bring in much needed revenue and will scale the business until the real estate boom kicks in and can reduce the waste which is wasted[1].
  4. The biggest risks that the company is facing are in the form of complaints of food poisoning and changes in local customer and economic demographics. The first risk can be averted by monitoring the products closely and making sure that the quality of the products are maintained. To counter the other two risks customer demographics has sign of improvement as CBD has predicted growth. In case of economic change the economic development of the area is about to increase as lots of offices are about to hire a lot of employees which is going to boost the economy of the area.
  5. The residents are forecasted to grow at around 3.2% annually for the next 16 years. Municipality of Melbourne predicts that in the year 2013 there were 116,000 residents in Melbourne and 382,000 workers in Melbourne. This is done to increase the demand of the products sales in the regions thereby amplifying its profit margin among many others. However, to do so, their preferences and likings need to be identified and then the products need to be developed. Then, it would be preferred and the sale would increase at a constant hike in spite of other brands.
  1. As per the report in assessment 2 it can be inferred that the company can increase it sales volume by offering temporary discounts and as customer demographics is changing the offers will attract more customers and help in increasing the sales volume. Moreover the company is facing a deficit in profit and that can be managed by launching the food delivery service which will enable the company to tap into a new sector and generate revenue. It will also minimise the losses faced by the company in the form of foods wasted which are not consumed by clients who physically visit the store.
  2. The negative effects that can be faced by the company is that if the company provides discounts then the company might not be able to achieve its estimated growth of 5% to 15%. The positive side of this is that it will generate a lot of new customers who will help in increasing the sales volume. Another negative effect is that when the company makes changes in its operations it must also adopt new technology into their systems for which they need to hire tech specialists and buy hardware which can increase the operational cost. The positive effect associated with this is that this can make the data collection method more relevant and can help the business identify and eliminate issues that were not known earlier.
  3. The decisions within an organization are entirely based as per the requirements of the situation. At the same time, the employees and customers also need to be aware of the verdicts of the management so as to remain a part of it. Therefore, prior making the final decision, each and every pillars such as employee, customer and market need to be taken into consideration. Only then, it would be fruitful for the firm to remain in the top-most position in the market rather than others. Otherwise, it would not remain in the market and its competing brands might take over its renownedness[2].

12.1 Cbd report states that there will be growth in the real estate sector and most of this growth will be from the corporate sector which will drive the food and beverage requirement in that area. Municupality of Melbourne stated that there is predicted growth of residents in that area so if the company launches food delivery service then they can raise extra capital which will help them survive until the real estate boom kicks in.other than this the company should also focus on maintaining the highest quality of their product so that they can reduce the number of unsatisfied clients and establish a brand value.

12.3 The final authority to take decisions related to operation lies with Emma Belcastran while the authority to take decisions regarding marketing and management issues lies with Rufus Belcastran as they head the respective teams. If during the registration of the company both of their roles were specified then they are legally bound to their respective departments but if their roles are not specified then they can take decisions in all the matters. The registration of the company gives them the legal authority to take decisions in business related issues.

12.4 while implementing policies which are going to change the business operations then it should be taken care that none of the following company policies get violated in the process:

  • Anti-discrimination, Anti-harassment and Anti bullying Policy.
  • Equal Employment Opportunity policy.
  • Performance Management policy.
  • Health and safety policy.

12.5 Coffeeville strives to maintain a stronghold over the market and at the same time increase and expand the business. They also focus very strictly on quality of their products. Our recommendations will help them to scale their business the way they want to without sacrificing core ethical values of the company.

Assessment 4

  1. Information is exchanged in Coffeeville in both ways. When new directives are to be implemented then meetings are arranged between the managers and the owner who explain the directives and how to implement them then the store managers hold meetings with the junior staffs in respective stores to discuss the new directives. Similarly when an issue arises or when the performance of an individual is to be analysed then information is shared by the store manager to the managers who pass the information to the owner. So an effective way of information already exists and employees are trained and retraining’s are also organized so as to maintain company policies and procedures.
  2. Research management information and decision support both are interrelated in the case of CoffeeVille. In this way, the management of CoffeeVille can measure the information management by adopting new technologies and innovations. However, cloud computing is one of the effective technology by which, CoffeeVille can store data. Aside from that, dissemination of information is another critical part of an organization. CoffeeVille can implement Big data application to out souring the data. However, sharing the information can be controlled by high trained employees for security purpose. Moreover, CoffeeVille needs to apply latest technology like cloud computing to measure and disseminate the information.
  3. Introduction

They require inventory system for calculating sales figures. The organization also need customer relationship management system (CRM) to satisfy the customers. Both types of systems includes many benefits for the organization.


The management can calculate cash flow statements with the help of inventory systems. In addition, the needs of the customers can be determined by CRM system. By following a complete installation process, these systems can optimised the efficiency and quality of the information. Types of information like date of sell, point of sale and customers details are needed. The accountant will need this data to measure sales figures.

Designing and testing both are required to be done for achieving the goals of the organization. The management can enhance security systems by installing 24 hour based CCTV monitoring system. The management needs to deploy some mandatory policies and procedures to adopt changes within the employment system.      



Project team:

Situational Analysis: SWOT


1.      Importance towards providing quality products to the customers.

2.      Predicted growth in the area.

3.      Predicted economic growth in the area


1.        Competitors eating away the business.

2.        Reduction in footfall in most of the stores.

3.        Reduction in consumption of foods and beverages.


1.      Rise in demand of real estate and mostly from employees.

2.      New delivery companies launching operations in the area.

3.      Growing workforce which can create the need for more foods and beverages.


1.        Competitors launching stores just 100 mt away.

2.        Slowdown in growth of customer demographics.

3.        Declining economical conditions.


1.      Focus on maintaining the highest degree of customer satisfaction.

2.      Focus on maintaining the highest quality of products.

3.      Ensuring minimum wastage of foods so as to reduce the market cost.

Goals and targets

1.      To capture the demand offered by the new offices set up.

2.      To maintain the same level of quality.

3.      To monitor customer feedback so as to rectify the areas of need. 

Communication Action Plan



Person/s responsible

Resources, if required

Monitoring for quality of foods so that food poisoning can be avoided.


Store Manager


Monitoring the growth of real estate in the area.


Rufus Belcastran

Emma Belcastran

CBD reports are required to do it

Changing economic demographics.


Rufus Belcastran

Emma Belcastran

Melbourne municipal reports are essential

Monitoring predicted growth


Owners and managers

Business reports and business data to accomplish the action succesfully

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