RCH Members - Coffee Cup Industry - Importing Goods into Australia - Management Assignment Help

RCH Members  Management Assignment Help

Assignment Task:

Second Chance Consulting has identified a number of implementation issues that need to be addressed or best managed to reduce the risks and maximise profitable sales of the reusable coffee cups. These include:

•  The initial shortage of capital $18,000 to start the business. The capital has been borrowed from supporting RCH members as additional capital wasn't available and the idea of borrowing funds from a financial institution was declined. This low startup amount restricts the initial number of reusable cups that can be purchased, reduces the amount that can be spent on paid marketing, labour and distribution.
•  Market Size of the reusable coffee cup industry is limited to the consumers willing to purchase a reusable coffee cup instead of just using a once off disposable cup. This
• market is limited to consumers that are environmentally minded and willing to act on their beliefs.
•  As the reusable coffee cups are manufactured and purchased overseas exposure to exchange rate fluctuations between $AUD / $USD / ¥RMB is inevitable. It is possible to reduce or eliminate foreign exchange rate risk by hedging the coffee cups project’s exposure by using forward contracts or options.
•  Importing goods into Australia will be subject to duties and taxes unless an exemption or a concession exists. When importing reusable coffee cups from China to Australia, a GST of 10% of the taxable importation cost is payable directly to the Australian Government upon entry of the goods arriving.
•  Who you know, has an impact on the distribution network of the reusable coffee cups project. We expect that due to the Rotary Club’s reputation of humanitarian assistance internationally and locally that many supporting coffee shops would promote the reusable cups complementary or at a percentage fee. Connections and strong relationships would have to be formed with local coffee shop owners. Axil Coffee Roasters Hawthorn which is renowned for delivering quality specialty coffee would be an ideal partnership to promote and sell the bamboo reusable cups. Penetrating coffee chains such as Starbucks, Gloria Jeans, Hudsons Coffee would be challenging but not impossible.

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