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Assessment Task 1

BSBMKG515A Conduct a marketing


audit

CRICOS Provider no. 01718J (VIC) 01459A (WA)

Marketing Audit Plan


Submission details
Candidates
Name

Phone
No.

Assessors
Name

Phone
No.

Assessment
Site
Assessment
Date/s

Time/s

The Assessment Task is due on the date specified by your assessor. Any
variations to this arrangement must be approved in writing by your
assessor.
Submit this document with any required evidence attached. See
specifications below for details.

Performance objective
For this assessment candidates are required to review a provided case
study marketing plan and design a plan to audit the marketing activities of
the organisation.

Assessment description
In this Assessment Task, you are required to prepare for a marketing audit
by developing a plan outlining how an internal and external audit can be
conducted within the case study organisation. You will need to review the
case study marketing plan provided with this assessment, and describe a
plan that outlines the scope, approaches, and timelines for the audits. You
will need to clearly identify the type of marketing audit and format to be
used in conducting the audit and collecting information.

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Assessment Task 1

BSBMKG515A Conduct a marketing


audit

Procedure
1.

Using the case study information provided to you, complete the


following steps by providing dot-point written information to describe:
a. the purpose of the marketing audit, as it applies to the
organisation in the case study
b. the scope of the marketing audit that is required
c. the methodology required to be used in conducting the audit
and the appropriate time it should occur
d. the participants to be involved in the conduct of the audit and
what their involvement would require (their role)
e. the main characteristics of the marketing audit and how they
meet the audit priorities for the organisation
f. the format of and the main elements to be included in the
marketing audit
g. the form of marketing audit that best meets the requirements of
the marketing plan.

Specifications
You must provide:
a completed marketing audit plan, with written dot point information

as outlined above. Make sure all information provided is in the


context of the attached case study. Points will be lost for irrelevant
information.
Your assessor will be looking for:
evidence that you analysed and identified the needs of the case

study
evidence that you have analysed the marketing activities of the

organisation.

Distance-based learners
Complete assessment as per instructions.

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Assessment Task 1

BSBMKG515A Conduct a marketing


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Case study information


Excerpt from letter of appointment
Ready-made marketing engages you to conduct a marketing audit on their
client, Sartos Gourmet Pasta.
The audit is to cover macro and micro environmental factors, and the

internal marketing operations including the marketing organisation,


systems and productivity.
Sartos will make available existing research data, internal sales data

and details of their supply chain logistics. Your audit is to research the
Graceville trading area and its place in the wider Australian
community, while specifically targeting the pasta restaurant trade.
Priority of the audit is to uncover the key factors that have inhibited

the clients ability to achieve the objectives of the market plan.


The audit is to make findings in relation to the marketing plan,

culminating in a report that compares the marketing plan


assumptions with actual findings. It is expected that the report will
follow the outline of the marketing plan.

Meeting with Rose Ready of Ready-Made Marketing


You met with the owner of Ready-Made Marketing, Rose Ready, who
explained that their client had agreed to the marketing audit but wanted
an external person, like you, to conduct it, so that all points of view could
be canvassed from an independent perspective to minimise the chance for
subjectivity.
Rose explained that Sartos has not achieved the anticipated business
objectives, and the hope is that your audit will uncover why this has
happened by investigating the macro and micro environmental factors
affecting the business, as well as the internal and external influences. The
timing of the audit is right in fitting in with the planning cycle and the
availability of relevant data.
Rose stressed that they were looking for a variety of methodologies to be
used in the marketing audit including one-on-one interviews with the key
participants, use of customer focus groups that she could facilitate and
research of data available for market research firms and government
agencies.
To assist you with the marketing audit, Rose gave you a copy of the
marketing plan and provided the following research data for you to use in
your report:
Australian Bureau of Statistics data
IBSA World market research
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Assessment Task 1

BSBMKG515A Conduct a marketing


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Australian Treasury reports.

Rose also outlined the key participants, apart from herself, that could be
involved in the audit process. These included:

Mario Sarto owner, who could provide reasons behind the


decisions and directions given

Eric Yeung accountant, who could provide financial data on


costings and profitability

Adriana Como sales and promotions, who could help with the
internal operational problems with the marketing process.

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Marketing Plan
Sartos Gourmet Pasta
December 2008

Table of Contents
1.0 Executive Summary................................................................................6
2.0 Situation Analysis...................................................................................8
2.1 Market Summary...............................................................................8
2.2 SWOT Analysis.................................................................................10
2.3 Competition.....................................................................................11
2.4 Service Offering...............................................................................13
2.5 Keys to Success...............................................................................14
3.0 Marketing Strategy...............................................................................16
3.1 Mission.............................................................................................16
3.2 Marketing Objectives.......................................................................16
3.3 Financial Objectives.........................................................................16
3.4 Target Marketing..............................................................................16
3.5 Positioning.......................................................................................17
3.6 Strategy Pyramids...........................................................................17
3.7 Marketing Mix..................................................................................18
3.8 Marketing Research.........................................................................19
4.0 Financials, Budgets, and Forecasts.......................................................21
4.1 Break-even Analysis........................................................................21
4.2 Sales Forecast.................................................................................21
4.3 Expense Forecast............................................................................22
5.0 Controls.................................................................................................25
5.1 Implementation Kmstones..............................................................25
5.2 Marketing Organisation...................................................................26
5.3 Contingency Planning......................................................................26
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1.0 Executive Summary


Sartos Gourmet Pasta will be the leading gourmet pasta restaurant in
Graceville, leveraging the rapidly developing consumer demand for pasta
and a growing customer base. The signature line of innovative, premium,
pasta dishes include pesto with smoked salmon, pancetta and peas
linguini in an alfredo sauce, and fresh mussels and clams in a marinara
sauce. Sartos Gourmet Pasta also serves distinct desserts and beverages
including alcohol.
Sartos Gourmet Pasta will reinvent the sit-down and home-delivery pasta
experience for individuals and families, with high discretionary income by
selling high quality, innovative exotic products at a reasonable price,
designing tasteful, convenient locations, and providing industrybenchmark customer service.
In order to grow at a rate consistent with our objectives, Sartos is offering
an additional $500,000 in equity. Existing members will be given the first
option to subscribe to the additional equity to allow each of them to
maintain their percentage of ownership. The portion not subscribed by
existing members will be available for prospective new investors.
Note: This marketing plan has been prepared for Trans-Australian
Financiers by M. Sarto in conjunction with Ready-Made Marketing, as part
of an application for finance. Ready-Made Marketing have recommended a
marketing audit be done each year to assess the effectiveness and
achievements of the plan, and make adjustments where required.

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BSBMKG515A Conduct a marketing


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BSBMKG515A Conduct a marketing


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2.0 Situation Analysis


Sartos Gourmet Pasta is close to entering their third year of operation. The
restaurant has been well received, and marketing is now critical to its
continued success and future profitability. The store offers an extensive
offering of gourmet pastas. The basic market need is to offer individuals,
families, and take away customers fresh, creative, exotic, attractive, pasta
dishes and desserts. Sartos uses homemade pasta, organic vegetables,
and premium meats and cheeses.

2.1 Market Summary


Sartos Gourmet Pasta possess good information about the market and
know a great deal about the common attributes of our most prized and
loyal customers. Sartos Gourmet Pasta will leverage this information to
better understand who is served, their specific needs, and how Sartos can
better communicate with them.

Market Analysis
2.1.1 Market Demographics
The profile for Sartos Gourmet Pasta's customer consists of the following
geographic, demographic, and behaviour factors based on a local Chamber
of Commerce report:
Overview Graceville:

Large % of families.
Area growing at 10% per year.
Household income increasing steadily.
Regional distribution Graceville growing faster that the city and
state at 7%.
Geographic:

Our immediate geographic target is the area of Graceville with a


population of 130,000.
A 30 km geographic area is in need of our services.
The total targeted population is estimated at 46,000.
Demographics:

Male and female.


Ages 25-50, this is the segment that makes up 53% of the
Graceville market according to the Graceville Chamber of
Commerce.
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Young professionals who live close to the location.


Have attended secondary and have further education.
An income over $60,000.
Eat out several times a week.
Tend to patronise higher quality restaurants.
Behaviour factors:

Enjoy a high quality meal without the mess of making it


themselves.
There is value attributed to the appearance or presentation of
food.

2.1.2 Market Needs


Sartos Gourmet Pasta is providing its customers with a wide selection of
high-quality pasta dishes that are unique and pleasing in presentation and
utilises top-shelf ingredients. Sartos Gourmet Pasta seeks to fulfil the
following benefits that are important to their customers.
Selection A wide choice of pasta options.
Accessibility The patron can gain access to the restaurant with

minimal waits and can choose the option of dine in or take out away.
There is a planned Park n Ride to be built adjacent to the property
providing parking for patrons at night.
Customer service The patron will be impressed with the level of

attention that they receive.


Competitive pricing All products/services will be competitively

priced relative to comparable high-end pasta/Italian restaurants.


Above all, Sartos believes that quality tasting food, an exotic assortment
and range of pastas, in a family-based dine-in environment is the key to
our customers needs and wants.

2.1.3 Market Trends


The market trend for restaurants is headed toward a more sophisticated
customer. The restaurant patron today relative to yesterday is more
sophisticated in a number of different ways.
Food quality The preference for high-quality ingredients is

increasing as customers are learning to appreciate the qualitative


differences.
Presentation/appearance As presentation of an element of the

culinary experience becomes more pervasive, patrons are learning to


appreciate this aspect of the industry.
Selection People are demanding a larger selection of foods, they are

no longer accepting a limited menu.

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The reason for this trend is that within the last couple of years the
restaurant offerings have increased, providing customers with new
choices. Restaurant patrons no longer need to accept a limited number of
options. With more choices, patrons have become more sophisticated. This
trend is intuitive as you can observe a more sophisticated restaurant
patron in larger city markets such as Sydney or Melbourne where there are
more choices available.
Sartos strongly believe that customers are more interested in exotic taste
than any other issue. This will be why they shop with us and become loyal
patrons.

2.1.4 Market Growth


In 2008, the global pasta market reached $10 billion dollars. Pasta sales
are estimated to grow by at least 10% for the next few years. This growth
can be attributed to several different factors. While not all pasta is good
for you, particularly the cream-based sauces, pasta can be very tasty.
Sartos sees no real substitute for what it provides Impossible to
substitute this taste and offer, according to Sartos owner and founder, M.
Sarto.
Another variable that is contributing to market growth is an increase in the
number of hours our demographic is working. Over the last five years the
number of hours spent at work of our archetype customer has significantly
increased. As the number of work hours increases, there is a high
correlation of people that eat out at restaurants. This is intuitively
explained by the fact that with a limited number of hours available each
day, people have less time to prepare their meals and eating out is one
way to maximise their time.

2.1.5 Economy
Based on economic forecasts, Sartos Gourmet Pasta assume that interest
rates are coming down and that this reduction will create more disposable
income and more money available for families to eat out. In terms of
available credit, Sartos assumes that this will not change in the
foreseeable future and will not be a threat to the potential sales. The same
assumption is made about employment levels, where Sartos assumes that
unemployment levels remain the same at 5.1%.

2.1.6 Political
From research carried out, Sartos identify that the government focus and
emphasis in future legislative direction will be about work/life balance,
which Sartos see a positive for their business model. Sartos, as a
business operating in Australia, will abide by the law in all its dealings and
comply with legislation that impacts on its business activities.

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2.2 SWOT Analysis


The following SWOT analysis captures the key strengths and weaknesses
within the company, and describes the opportunities and threats facing
Sartos Gourmet Pasta.

2.2.1 Strengths
Strong relationships with vendors that offer high-quality ingredients

and fast/frequent delivery schedules.


Excellent staff who are highly skilled at food preparation.
Great retail space that is bright, clean, and located in an upscale mall,

suburban neighbourhood, or urban retail district.


High customer loyalty among repeat customers.
High-quality food offerings that exceed competitors offerings in

quality, creativity and presentation.


Ready supply of organic food in the area not like other states.

2.2.2 Weaknesses
Sartos name lacks brand equity.
A limited marketing budget to develop brand awareness.
The struggle to continually appear to be cutting edge.

2.2.3 Opportunities
Growing market with a significant percentage of the target market

still not aware that Sartos Gourmet Pasta exists.


Increasing sales opportunities in family business.
In the expansion, Sartos will have the ability to spread overhead over

multiple revenue centres. Sartos will be able to spread the


management overhead costs among the multiple stores, decreasing
the fixed costs per store.

2.2.4 Threats
Competition from local restaurants that respond to Sartos Gourmet

Pastas exotic offerings.


Gourmet pasta restaurant chains found in other markets coming to

Graceville.
A slump in the economy reducing customers disposable income

spent on eating out.

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2.3 Competition
National Competition
Pasta Buzz: offers consumers their choice of noodles, sauces, and

ingredients, allowing the customer to assemble their dish as they


wish. Food quality is average.
Pasta Bite: has a limited selection but the dishes are assembled with

high-quality ingredients. The price point is high, but the food is quite
good.
Pasta Mia: offers pasta that is reasonably fresh, reasonably innovative

and at a lower price point. The company was sold a few years ago,
and consequently the direction of management has been stagnant
lately and has resulted in excessive employee turnover.
Verdi Pasta: has medium-priced pasta dishes that use average

ingredients, no creativity, and less than average store atmosphere.


Sartos is not sure how this company has been able to grow in size as
their whole product is mediocre at best.
It is Sartos belief that the existing unwritten code of business activity,
where each chain stays within their founding geographic market place, will
remain in the foreseeable future.

Local Competition
Stellas: This is an upscale Italian restaurant that has a limited

selection of pasta dishes. Although the selection is limited and pricey,


the dishes are quite good.
Peri Pasta: An Italian restaurant with a decent pasta selection,

however quality is inconsistent.


Niccolo: An upscale restaurant with a large wine selection and good

salads. Everything else is mediocre at best and over-priced. Service


can often be poor.
Sartos do not see the competitors changing their marketing strategy or
product offer in the foreseeable future.

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Growth and Share Analysis

2.4 Service Offering


Sartos has created gourmet pastas that are differentiated and superior to
competitors. Customers can taste the quality and freshness of the product
in every bite. The following are characteristics of the product.
Sartos dough for the pasta is made with Italian semolina flour.
Cheeses are all imported.
Vegetables are organic and fresh with three shipments a week.
Meats are all top-shelf varieties, organic when possible.

At Sartos, food is not a product; the experience of dining is a service.


Sartos prides themselves on providing service that is on par with fine
dining.
Sartos will ensure that all aspects that are involved in the delivery of
satisfaction to the customer will work using an integrated approach.

At a Glance The Prototype Sartos Store:


Location: an upscale mall, suburban neighbourhood, or urban retail

district.
Design: bright and clean.
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Size: 110160 m2.


Employees: 710 full-time plus casuals
Seating: 3545.
Types of transactions: 80% dine in, 20% take away.

2.5 Keys to Success


Location, Location, Location.
Sartos site selection criteria are critical to success. Jeff Hardy, former
director of Real Estate, Coffee Club, helped us identify the following site
selection criteria.
Daytime and evening populations.
Shopping patterns.
Car counts.
Household income levels.

2.6 Critical Issues


Sartos Gourmet Pasta is still in the speculative stage as a franchise
concept with one store starting as the prototype. Its critical issues are the
following.
Continue to take a modest fiscal approach; expand at a reasonable

rate, not for the sake of expansion in itself, but because it is


economically wise to.
Use of the phone ordering system to underpin the direct selling

activities in take away food.

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3.0 Marketing Strategy


Sartos advertising budget is very limited, so the advertising program is
simple. Sartos will do direct mail and local advertising, with inserts in the
BMag likely to be the most successful of the campaigns.
Lastly, Sartos will leverage personal relationships to get articles of Sartos
in the BMag. Previous friends who have had their restaurant featured in
the BMag have seen a dramatic increase of sales immediately after the
article was published in the BMag.

3.1 Mission
Sartos Gourmet Pastas mission is to provide families with the finest pasta
meal and dining experience. We exist to attract and maintain customers.
When we adhere to this maxim, everything else will fall into place. Our
services will exceed the expectations of our customers.

3.2 Marketing Objectives


1. Maintain positive, steady, growth each month.
2. Generate at least $45,000 in sales per month.
3. Experience an increase in new customers who are turned into longterm customers.
4. Realise a growth strategy of one store per year.

3.3 Financial Objectives


1. A double-digit growth rate for each future year.
2. Reduce the overhead per store through disciplined growth.
3. Continue to decrease the variable costs associated with food
production.

3.4 Target Marketing


The market can be segmented into three target populations:
Individuals: people that dine in by themselves.
Families: a group of people, either friends or a group of nuclear

relatives dining together.

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Take out: people that prefer to eat Sartos food in their home or at a

different location than the actual restaurant.


The Sartos customers are hungry individuals between the ages of 25 and
50, making up 53% of Graceville (Graceville Chamber of Commerce). Age
is not the most defined demographic of this customer base; all age groups
enjoy pasta. The most defined characteristic of the target market is
income. Gourmet pasta stores have been very successful in high rent,
mixed-use urban areas. These areas have a large day and night population
consisting of business people and families who have household disposable
incomes over $40,000.
Combining several key demographic factors, Sartos arrives at a profile of
the primary customer as follows:
Sophisticated families who live nearby.
Young professionals who work close to the location.
Shoppers who patronise the high rent stores.

3.5 Positioning
Sartos Gourmet Pasta will position itself as a reasonably priced, upscale,
gourmet pasta restaurant. Graceville consumers who appreciate highquality food will recognise the value and unique offerings of Sartos
Gourmet Pasta. Patrons will include singles and families, ages 2550.
Sartos Gourmet Pasta positioning will leverage their competitive edge:
Product. The product will have the freshest ingredients including

homemade pasta, imported cheeses, organic vegetables, and topshelf meats. The product will also be developed to enhance
presentation, everything will be aesthetically pleasing.
Service. Santos will only employ experienced cooking staff who can

create meals that customers will find outstanding to the taste.


By offering a superior product, Sartos will excel relative to the
competition.

3.6 Strategy Pyramids


The single objective is to position Sartos as the premier gourmet pasta
restaurant in the Graceville area, commanding a majority of the market
share within five years. The marketing strategy will seek to first create
customer awareness regarding their services offered, develop that
customer base, and work toward building customer loyalty and referrals.
The message that Sartos will seek to communicate is that Sartos offers
the freshest, most creative, reasonably priced, gourmet pasta in

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Graceville. This message will be communicated through a variety of


methods. The first will be direct mail.
The direct mail campaign will be a way to communicate directly with the
consumer. Sartos will also use ads and inserts in the BMag. This will be
particularly effective because the BMag is a popular local paper that is
consulted when people are looking for things to do in Graceville.
The last method for communicating Sartos message is through a
grassroots PR campaign. This campaign will leverage networking
relationships with people on staff of the BMag to get a couple of articles
written about Sartos. One will be from the business point of view, talking
about the opening of the restaurant and the people behind the venture.
This is likely to be run in the business section. The second article will be a
food review. In speaking with many different retailers and restaurateurs,
significant increases of traffic followed articles in the BMag. Because of this
level of effectiveness and low/zero cost, Sartos will work hard to get press
in the BMag.
Sartos also believe that the local patrons far prefer to receive information
from the restaurant via flyers in the letterbox.

3.7 Marketing Mix


Sartos marketing mix is comprised of these following approaches to
pricing, distribution, advertising and promotion, and customer service.
Pricing Sartos pricing scheme is that the product cost is 35% of the

total retail price.


Distribution Sartos food will be distributed through a take away

model where customers can phone in their order and come to the
restaurant to pick it up, come into the restaurant, place the take out
order and wait for it to be completed, or come in and dine at the
restaurant.
Advertising and promotion The most successful advertising will be

adverts and inserts in the BMag as well as a PR campaign of


informational articles and reviews also within the BMag. Promotions
will take the form of in restaurant entertainment and free meal
giveaways. Heavy emphasis on promoting the brand and not just
advertising products.
Customer service Sartos philosophy is that whatever needs to be

done to make the customer happy must occur, this investment will
pay off with a fiercely loyal customer base who is extremely vocal to
their friends with referrals.

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3.8 Product development


It is envisaged that new products will be developed on a regular basis in
thine with menu changes which is targeted at every three months. The
plan for product testing is to offer free meals to regular customers, staff
and their families. By getting feedback from these people, changes can be
made or products canned so that only tested and proven products make
it onto the menu list.

3.9 Marketing Research


During the initial phases of the marketing plan development, several focus
groups were held to gain insight into a variety of patrons of restaurants.
These focus groups provided useful insight into the decisions, and decision
making processes, of consumers.
An additional source of market research that is dynamic is a feedback
mechanism based on a suggestion card system. The suggestion card
system has several statements that patrons are asked to rate in terms of a
given scale. There are also several open ended questions that allow the
customer to freely offer constructive criticism or praise. Sartos will work
hard to implement reasonable suggestions in order to improve their
service offerings as well as show their commitment to the customer that
their suggestions are valued.
The last source of market research is competitive analysis/appreciation.
Sartos will continually patronise local restaurants for two reasons. The first
is for competitive analysis, providing Sartos with timely information
regarding other restaurant's service offering. The second reason is that
local business owners, particularly restaurant owners, are often part of an
informal fraternal organisation where they support each other's business.
Access to ongoing market research will be achieved via the publications
from the Restaurant Association which Sartos has become a member of
recently.

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4.0 Financials, Budgets, and


Forecasts
This section will offer a financial overview of Sartos Gourmet Pasta as it
relates to the marketing activities. Sartos will address Break-even
Analysis, sales forecasts, expense forecasts, and how those link to the
marketing strategy.

4.1 Break-even Analysis


The break-even analysis indicates that $45,000 will be needed in monthly
revenue to reach the break-even point.

4.2 Sales Forecast


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The first year will be used to get the restaurant up and running. By year
two things will get busier. Sales will gradually increase with profitability
being reached by the beginning of year two.

Sales Forecast

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4.3 Expense Forecast


Marketing expenses are to be budgeted so that they are ramped up in the
first year. Restaurants typically have increased business in Autumn. This
generally occurs because during the summer, when the weather is nice
and it does not get dark until late, people tend to eat out less.

Marketing Expense Budget

Ongoing sales forecasting will be to use the services of Ready-Made


Marketing who will advise on all aspects of the marketing function that
Sartos will be engaged with. Ready-Made Marketing will also be given
access to the marketing cost data so that they can periodically examine
and validate marketing costs in line with industry benchmarks.

Profitability outcomes budget

Cambridge International College


V29/10/14 RTO No. 2325 CRICOS Provider No.01459A
Created By: Leigh Pember 17/05/2015
Page 24 of 27

Assessment Task 1

BSBMKG515A Conduct a marketing


audit

Cambridge International College


V29/10/14 RTO No. 2325 CRICOS Provider No.01459A
Created By: Leigh Pember 17/05/2015
Page 25 of 27

Assessment Task 1

BSBMKG515A Conduct a marketing


audit

5.0 Controls
The purpose of Sartos Gourmet Pastas marketing plan is to serve as a
guide for the organisation.

5.1 Implementation Milestones


The following milestones identify the key marketing programs. It is
important to accomplish each one on time, and on budget.

Milestones
Advertising

Start
Date

End
Date

Budget

Manage
r

Departm
ent

Marketing
plan
completion

1/01/200
9

2/01/200
9

$0

Mario

Departmen
t

Banner ad
campaign #1

1/02/200
9

4/01/200
9

$3,754

Mario

Departmen
t

Banner ad
campaign #2

1/10/200
9

1/01/200
9

$4,900

Mario

Departmen
t

Manage
r

Departm
ent

Total
Advertising
Budget

PR

$8,654

Start
Date

End
Date

Budget

Other

$0

Other

$0

Total PR
Budget

$0

Direct
Marketing

Start
Date

End
Date

Budget

Manage
r

Departm
ent

Direct mail
campaign #1

1/10/200
9

1/04/200
9

$1,689

Mario

Departmen
t

Insert
campaign #1

1/10/200
9

1/04/200
9

$2,252

Mario

Departmen
t

Direct mail
campaign #2

1/10/200
9

1/01/201
0

$2,205

Mario

Departmen
t

Cambridge International College


V29/10/14 RTO No. 2325 CRICOS Provider No.01459A
Created By: Leigh Pember 17/05/2015
Page 26 of 27

Assessment Task 1
Insert
campaign #2

1/10/200
9

BSBMKG515A Conduct a marketing


audit
1/01/201
0

$2,940

Total Direct
Marketing
Budget

$9,086

Totals

$17,740

Mario

Departmen
t

5.2 Marketing Organisation


Mario Sarto, the owner, is primarily responsible for marketing activities and
has the authority and responsibility over all company activities that affect
customers satisfaction. This is in addition to his other responsibilities.
Ready-made marketing have been engaged to provide marketing services
as required, and some outside resources for graphic design work, and
creativity are also to be utilised.
Feedback will come from in-store feedback forms and local customer
surveys

5.3 Contingency Planning


Difficulties and risks:
Problems generating visibility.
Overly aggressive and debilitating actions by competitors.
An entry into the Graceville market of an already existing, franchised

gourmet pasta restaurant.


Worst case risks may include:
Determining that the business cannot support itself on an ongoing

basis.
Having to liquidate equipment or intellectual property to cover

liabilities.

Cambridge International College


V29/10/14 RTO No. 2325 CRICOS Provider No.01459A
Created By: Leigh Pember 17/05/2015
Page 27 of 27