100%(10)10 out of 10 people found this document helpful
This preview shows page 2 - 4 out of 18 pages.
Supplier relationshipsMacVille maintains a tightly knit network of suppliers to ensure supply and advance notice of potential supply issues. Suppliers are loyal to MacVille. MacVille encourages such loyalty by paying fair prices for raw beans and making regular purchases.ReputationThe MacVille business model is underpinned by its commitment to triple bottom line reporting and responsibility: social, economic, and 2BSBRSK401 Identify risk and apply risk management processes Assessment 1
Watthanaphat Hyangwiriyakun [STUDENT ID 16027]environmental responsibility. A key to MacVille’s success with customers has been its commitment to fair trade practices.Identifying particular risks to individual projects or ventures will require research and information gathering on the internal and external context of risk concerning MacVille. Such information gathering may include research into local, domestic and international political, environmental, social and technological conditions, standards, and codes of conduct. It will necessitate direct or indirect consultation with internal and external riskstakeholders.Note that, in analysing risk consequence, MacVille adheres to the following guidelines: ●Insignificant: Less than 5% of revenue Minor: 5–10% of revenue ●Moderate: 10–20% of revenue ●Major: 20–40% of revenue ●Catastrophic: above 40% of revenue. A new venture MacVille has established a relationship with a small village in the highlands of Papua New Guinea (PNG) that grows coffee beans. MacVille is committed to providing equipment and high-level skilled training to the village so that the local villagers can harvest and roast the beans in-country, rather than exporting the green beans, as they currently do. MacVille will develop the village’s capacity in exchange for cheaper roastedbeans. The costs of development are budgeted to be less than or equal to the savings gained. The village will incorporate, with every villager a shareholder in the new venture. The village will eventually become a completely independent supplier.It is anticipated that PNG could potentially supply up to 20% of MacVille’s roast bean supplies. This endeavour is a major marketing coup for MacVille, as they can strongly market the Fairtrade certification aspects of this, due to the large investment they are making into the village and the skilled-trade ability they are giving to the villagers. It will have additional benefits to MacVille, which include saving considerable amounts of money in both energy and water use, not to mention domestic labour costs and cost of sales. The venture is not expected to have any effect on domestic production, jobs, advancement, etc., due to increased efficiencies, expansion into new markets, and increased sales made possible by the venture.