BSBINM601 - Assessment Workbook-Task-1

Assessment Task 1 BSBINM601 Manage information and knowledge
Obtain information on business issues

Submission details
Candidate’s name Phone no.
Assessor’s 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
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
1. Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
2. Review and familiarise yourself with CoffeeVille’s general business information in
Appendix 1.
3. Review and evaluate business performance data and information in Appendix 2.
4. Review and analyse customer and marketing information in Appendix 3.
5. Review and analyse management and staff meeting summaries in Appendix 4.
6. 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.
© 2016 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 1 of 16
7. 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.
8. 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.
9. 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.
10. 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 how you reached this conclusion including a description of how the
data and information supports your conclusion?
● 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.
11. Submit the written report and any research information (if applicable) to your assessor
as per the specifications below.
Specifications
You must submit:
● a written report containing all information as specified in Step 10 above
● any researched information that is relevant to or supports the report’s activities.
Page 2 of 16
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.
Adjustment for distance-based learners

● No variation of the task is required.
● A follow-up interview may be required (at the discretion of the assessor).
● Documentation can be submitted electronically or uploaded to an LMS for review.
Page 3 of 16
Appendix 1
CoffeeVille – your 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 – general 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.
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.
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● 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.
● 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.
Page 6 of 16
Appendix 2
CoffeeVille 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.
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● 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.
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.
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
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 Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

2011 2012 2012 2013 2013 2014 2014 2015 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%
Page 10 of 16
Appendix 3
Customer and marketing information
CoffeeVille customer information

Customer spending patterns
Average Average
Item Variance Comments
spend - 2011 spend - 2014
Coffee $3.35 $3.85 15% While average spend

has risen, Emma and
Food - Rufus feel this is a
$8.65 $9.80 13%
takeaway
result of general price
Food – sit rises, not customers
$9.20 $10.45 14% purchasing more
down
items.
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.
Page 11 of 16
● 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!
● Thanks for my birthday coffee. Was looking forward to it all morning!!
Loyalty Club membership

Membership activity from December 2014 to May 2015.
Membershi Active Total

Member Inactive Cancelle
p member member
s 2014 * ^ d
s s 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 ● general economic concerns
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● business environment in CBD

(closures)
● healthy lifestyle and eating habits.
Survey results
Question Responses
Have you ever visited a Yes 67% No 33%

CoffeeVille store?
Which store do you visit? Store 1 49% Store 3 27%

(Can choose more than one
Store 2 43% Store 4 12%
store)
How times a month, on 1–4 times 25% 10–15 times 31%

average, do you visit the
5–9 times 27% Most days 17%
coffee shop?
What is your purpose for For the coffee 69% To meet others 22%
visiting CoffeeVille? (Can
Get something to eat 46% To relax 15%
choose more than one store)
To read the papers 18%
How would you rate the 5 = Excellent 53% 2 = Fair 3%

overall friendliness of the
4 = Very good 32% 1 = Poor 0%
staff? (with 5 being the
most friendly) 3 = Good 12% 0 = Awful 0%
How do you rate the price 5 = Excellent 22% 2 = Fair 15%

of your food and/or
beverages? (with 5 being an
excellent price) 3 = Good 29% 0 = Awful 0%
How do you rate the variety 5 = Excellent 33% 2 = Fair 2%

of products? (with 5 being
the best variety)
3 = Good 33% 0 = Awful 0%
How do you rate the 5 = Excellent 50% 2 = Fair 4%

product quality? (with 5
being excellent quality)
3 = Good 18% 0 = Awful 0%
Have you found your wait No, very fast 48% Waited ages 2%
in line to be too long for
No, pretty quick 32% Very slow 0%
your satisfaction?
A bit slow 18%
Page 13 of 16
Appendix 4
Management and team meeting 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

● 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

● Sales down across all revenue streams.
● Need a sales push to capture foot traffic in city for Christmas shopping.
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

● 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
Page 15 of 16
● 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.
● 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.
Page 16 of 16

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Assessment Task 1 BSBINM601 Manage information and knowledge

Obtain information on business issues

Candidate’s name Phone no.

Assessor’s name Phone no.

Assessment date/s Time/s

○ assisted in identifying and analysing the business problem or issue;

● any researched information that is relevant to or supports the report’s activities.

Your assessor will be looking for demonstration of your ability to:

● build and maintain understanding of a problem of issue

● use numeracy skills to interpret complex statistical and researched information

Adjustment for distance-based learners

● A follow-up interview may be required (at the discretion of the assessor).

● Documentation can be submitted electronically or uploaded to an LMS for review.

CoffeeVille – general information

Business goals and objectives

● 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.

The CoffeeVille team

● 4 fully trained baristas

● 6 full-time and 12 casual food service attendants

○ Large percentage of office workers (80% of daytime trade).

○ Male and female.

○ Eat out most times for lunch in a week.

● Food and beverage sales are a consistent 3–4% under budget.

Financial year July 2014 – June 2015

Sales $ July Aug Sept Oct Nov Dec

Food sales 285,668 279,805 273,942 262,580 250,078 199,251

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

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

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

Financial year July 2015–June 2016

Sales $ July Aug Sept Oct Nov Dec

Food sales 231,391 226,642 231,865 227,105 202,563 154,300

Budget variance report – All stores

Financial year 2011-12 2012-13 2013-14 2014-15 2015-16

Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

Food sales 5% 8% 7% 12% 8% 1% -3% -8% -10%

CoffeeVille customer information

Coffee $3.35 $3.85 15% While average spend

Summary customer feedback forms Jan–Dec 2015

● 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!

● 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

● Love that you guys do free trade.

● Look at the art on this coffee!

Loyalty Club membership

Membershi Active Total

Total 127 99 18 10 117

Analysis: Number of inactive and cancelled member has increased 15%

*Total members as at December 2014