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Decision requiredThe CoffeeVille marketing plan needs to be re-considerate for the business as the target market should be re-establish, it recommended due to the current trends around the place and the purpose is also take intoaccount better actions to prevent losses for the company.HistoryDuring the last 12 months the business has been showing a drop in the sales income of external catering,specifically in November and December. The prices of the materials and products are rising like rent, foodand wages. This has caused a fall in the revenues.Part 2 – AnalysisAnalysisResult ImplicationsCompetition analysis to assess the level of the shops of the industry in Melbourne CBDConstant growing of cafes shops in the CBD zoneClose competition between companies and a high risk to fail because customers have more choicesEffect between business data and the increment of tenants in residential propertiesPossible new customers which means a good opportunity for the businessTarget market needs to be reconsidered, this may help to solve the economic difficulties of the businessDetermine the connexion between the vacancies of the properties and external cateringClear association between the raising in rent rates and the weakening in catering salesPotential reduction in sales dueto reduction of local business.Part 3 – Decision optionsTo maintain the business indicators, CoffeVille have to take steps and make modifications toaddress issues that may have pros and cons as high risks. These actions may require
BSBINM601 – Manage Knowledge and Informationinvestment but overall it has to be a smart play. There are 3 options that the company canapply to fight the problems, these are: do nothing, reduce prices for food and offer specialhome packaged and meal delivery systems.Option 1: Do nothingEconomic indicators analysis predicts a more positive financial environment and real state evaluation forecast CBD vacancy rates to drop to 9%in the next year. Positive outcomes / benefits•To keep reputation as provider of quality food and beverages.•To ultimately go back to good levels of profitabilityNegative outcomes / Risks•The current trend will continue, resulting in financial difficulties.•Potential closure of non-profitable stores.•Expenses keep increasing and salesdroppingOptions 2: Reduce prices for foodThe price for catering food menu items will be reduced but beverage prices remain the same.Positive outcomes/ benefits•To price compete closest with other business•To launch the number of items sold per day •More visitors•Reduce expensesNegative outcomes/ Risks•The prestige of the business could be affected •It needs more number of sales withthe new prices to achieve daily incomesOption 3: Special home packaged and meal delivery systemsMenu Items for prepacked take-home meals will be offered and the operational hours of someor all shops will be expanded to provide them.