Using the ibis industry analysis you identify the

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Principles of Information Systems
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Chapter 11 / Exercise 1
Principles of Information Systems
Reynolds/Stair
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Using the IBIS industry analysis, you identify the following aspects of the operating environment.According to the IBIS report, interest rates are rising in the short-term but expected to level out at sustainable levels for the coming three years. Disposable income has reduced due to rising interestrates, however, this shortfall is expected to be recovered in the long-term, with wage increases expected to outstrip inflation rates by 2%. Unemployment levels are also increasing and expected to climb steadily to 6% in the coming years. The Government is currently passing legislation that requires businesses to monitor and reduce their waste and energy use. Significant penalties are planned for businesses that don’t comply with the new directive. Technological developments with the broadband rollout across Australia have been delayed, although the rollout is continuing and will be completed in the next three years. Internet retailing options are expanding, and most ‘bricks and mortar’ retailers are taking advantage of this new technology.Cocoa Delights will try to capitalise on the social trend of consumers being more health conscious, by promoting the health benefits of dark chocolates and offer the largest range of dark chocolate varieties and products.You review the consultant’s report on the franchising option with the CEO and note the following:The franchising concept will result in fast growth and could achieve the 100 store target within three years. Franchisees bring their own capital and they provide a ready solution to the store manager shortage.Introduction of greater legal issues, with each store operating on a separate legal agreement.Current store managers are encouraged to run the store ‘as if it were their own business’ but the lack of an equivalent financial reward does not inspire many managers to put in the hours required. Franchising continues this theme but achieves greater results due to the increased rewards for hard-working store managers.Potentially greater conflict between local-minded business owners and the interests of a national brand.Proven Melbourne stores provide easy marketing and acceptance of franchise sales.Significant government laws protect franchisees, increasing the need for strict compliance by the organisation.Expansion would start in Sydney and move to a new city once profitability is reached in Sydney.You also review the proposal by Haigh’s Chocolates with the CEO and note the following:Haigh’s Chocolates overview: Mid-sized operations of only a few stores per city. Haigh’s sell chocolates at mid-ranged prices. No imported goods. Extensive advertising. Medium to high quality product. Currently has stores in Melbourne, Sydney and Adelaide. View themselves as operating in different market segments within the same industry.9
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Principles of Information Systems
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Chapter 11 / Exercise 1
Principles of Information Systems
Reynolds/Stair
Expert Verified
Assessment Resource | BSBMKG608Haigh’s already understands the markets in the three established capital cities, and are looking to open a few stores soon in Brisbane. They have the necessary contacts for essential services, council compliance and state government compliance issues.

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