computer notebooks and connect to the internet while they were
dining in the cafe.
Meeting with Ron Langford
In the afternoon you met with Ron Langford in his office to discuss the
cafe, council by-laws and aspects concerning the surrounding district. You
took notes that included the following significant information.
●
Ron explained that there were opportunities for opening more cafes in
the surrounding shopping centres like Wilsonton, Clifford Gardens and
K-Mart Plaza.
●
Ron handed you an extract from a government report ‘Economic
Brief.’
© 2012 IBSA MC v.2.2015 / modified by MC Apr 2016 v 3
Page 12 of 23

Assessment Task 1
BSBRSK501 Manage risk
●
Ron explained that the Federal Government was now introducing
legislation that backs up the local by-law concerning efficient water
usage, particularly by industries. The current by-law has fines of up to
$50,000 for excessive water breaches. Ron did explain that the
council was giving some time to ‘make good’ under certain
circumstances on a case by case basis. Ron also agreed with the idea
of installing a water tank in the court yard for the cafe to use and
would help get it built.
●
Ron explained that Toowoomba was obviously a place for retirees and
the population was growing.
●
Ron spoke about the Federal Government’s National Broadband
Network being rolled out in Toowoomba that would allow efficient and
effective video streaming and teleconferencing.
●
Ron spoke about the current by-law that was due for implementation
on the 1st of next month allowing cafes to expand their footpath
dinning and so put more tables and chairs outside their premises.
●
Ron also spoke of the fact that representatives of a large international
chain of coffee shops had been making enquiries around town about
opening a store in the Toowoomba CBD.
Senior Management Team and Finance, Audit and
Risk Management (FARM) Committee meetings
Soon after you got back from your research trip to the Toowoomba store,
you attended two teleconferences. First, you met with the senior
management team. At this teleconference, you discussed issues raised by
James Mansfield and Ron Langford and the report on previous NSW
expansion, which head office had given you: Report into the acquisition
and re-branding of the NSW expansion store. Paula said that there may be
some things to learn from the NSW experience.
Key problems identified in the report were as follows:
1.
Lack of internal controls, particularly over cash handling, monitoring
and recording.
2.
Failure to meet compliance standards in WHS, Privacy and industrial
relations law.
3.
Lack of written policy and procedures to guide staff in carrying out
their duties.
4.
Lack of a professional business culture in the family run business.
5.
Failure of the business to monitor the external environment and find
opportunities and threats to the business.


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