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Project Analysis Report 8
STUDENT ASSESSMENT TASK 2
BSBINM601
Project Analysis Report
Student Name: ……….
Orange International College
Abstract
The report analyzes the business data and information provided in the scenario of Café Rome to prepare a project analysis report. The assessment identifies and analyzes the business issues and presents a report for the owners of Café Rome. The report takes the issue of High Coffee prices during 2011-12 and suggests an appropriate course of action to mitigate the issue. Later, the study evaluates the customers’ feedback, recommends the ways of mitigation. At the end, it considers the formal and informal networks and their role in establishing the cause of the problem. The report also presents the use of appropriate technology to improve the situation.
Keywords: Café Rome; Project; Analysis; Report; Business issues.
Project Analysis Report
Analysis of Business Issues
Recently the business of Café Rome has experienced a downfall in the sale for the last three months and an increase in the expenditure. The owners have been consistently trying to analyze and update the work practices and procedures to decrease the expenses, but could not make an influence as the sales revenue and the budget consistently remain below the expected margin.
The potential business problems or issues before the Café Rome are reduced staff turnover rate, high prices of Coffee Arabica Beans due to low production, increased minimum wage rate by 15%, unexpected training costs of new staff, increasing competition and the annual increase in property rents by 10%.
The food sale has declined by 10% while the sale of beverages and external catering has depleted by 15%. The business is not performing as per the estimated level. A recently opened shop at 100 meters distance near store 1 imposes competition on the Café Rome. The profits are 15 % below the budget due to elevated expenses. The number of Active Loyalty members has reduced by 15% last year.
The market survey 2015 shows that 7.33% of customers consider Café Rome to be expensive than other cafes.
High Competition in the Market
Increasing prices of raw materials like Coffee Arabica Beans due to low production accounts for the high competition in the cafes for providing the meals and beverages at affordable prices. According to a research, the Number of Café and bistro seats has drastically increased from 2011 through 2016. It has increased the competition among the same category cafes for attracting more customers towards their stores.
The number of Cafes in 2011 was 2585, with 169,983 café seats while in 2016, the number rose to 2722 cafes with 235,743 seats. The co
elation analysis of the Ratio of Number of Cafés closed to the CBD Vacancy rates depicted a relationship of 0.839. However, the Vacancy rate also increased dramatically from 8.20% in 2013 to 9.50% in 2016.
Appropriate Course of Action
The problem of mitigating the expenses due to...