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Contingency Plan

This document outlines contingency plans for a coffee business called Cafe Mocha. It discusses risks to the business like natural disasters, personnel issues, and mismanagement. It provides recommendations to mitigate these risks such as having emergency response plans, clear wage policies, and security measures. The document also notes trends in the coffee market like a shift to specialty coffees. It establishes two contingency plans - Plan B would offer discounts if losses occur for 6 months, while Plan C would auction the business off after 8 consecutive months of losses.

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Kshitij Mittal
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5K views14 pages

Contingency Plan

This document outlines contingency plans for a coffee business called Cafe Mocha. It discusses risks to the business like natural disasters, personnel issues, and mismanagement. It provides recommendations to mitigate these risks such as having emergency response plans, clear wage policies, and security measures. The document also notes trends in the coffee market like a shift to specialty coffees. It establishes two contingency plans - Plan B would offer discounts if losses occur for 6 months, while Plan C would auction the business off after 8 consecutive months of losses.

Uploaded by

Kshitij Mittal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Contingency Plan

Kshitij Mittal

Contingency
An

event (as an emergency) that may but is


not certain to occur

Developing

responses in advance for various


situations that might impact business
Contingency Planning

Risks Involved in Business Venture

Natural Disasters- Earthquakes, Hurricanes, Fires,


Floods

Personnel- Employee Disputes, Workplace Injuries,


Wage Policy

Mismanagement- Theft & Security, Unprofitable


Business Model, Over-Expansion, Improper Training

Natural Disasters
There

is a tendency to think that a largescale disaster is not going to happen where I


live - Karen Mills (Administrator for Small
Business Administration)

The

reality is that storms, floods,


earthquakes, fires and man-made disasters
can strike anytime and anywhere.

Preparing For Natural Disasters

Reliable Emergency Response Plan - Evacuation Routes

Survival Kit Flashlight, Additional Keys

Insurance Coverage To Assess the level of shield

Back-Up of Electronic Data - Cloud Computing

Advanced Temporary Relocation

Personnel

Employee Disputes - Inter Employee Disputes to be


resolved as soon as they emerge

Workplace Injury Proper Training, Provision of


tools like safety gloves

Wage Policy- A clear, transparent wage policy- with


open channel of communication between
management and employees

Managing Mismanagement

Appointment of experienced manager

Theft- Installation of cameras for video surveillance, detailing


theft consequences

Cash Counting and Number of Products Sold After Every Shift

Appointment of security guard for night

Periodical Check of The Business Model, Identifying needs of


Customers, Scope of Expansion and regular visit to core
competitors

Reduction/Elimination of Risks

Opting and Implementing the listed plans to minimize the risks


involved

Visiting and talking to employees about their concerns and


demands (Wage Hike, Suggestions)

Taking feedback from customers about the menu and what


more would they like to experience (Management)

Testing employees about their knowledge on handling an


emergency and disaster (Fighting Calamities)

Coffee- Current & Future Market

Canadians enjoy going to the coffee shop, but sometimes they're


looking for more than just a cup of coffee - Robert Carter, Executive
Vice-President, Food Service

Canadians drink 2.1 billion servings of coffee a year and is expected


to grow further

Shift in taste. From traditional drip brewed coffee to specialty


coffees

Over the last four years, hot brewed coffee servings have declined
at a rate of 2% whereas hot specialty coffee servings have grown by
4%

The Millennials are driving demand for specialty drinks.

Reduction of Risks

Current Expense Per 8oz Cup

Plan B
Caf

Mocha under any circumstance, will


continue to operate for at least six months
from the day of first week (7 Days) of
continuous reported losses

During

this time, best efforts will be made to


identify core reasons for so and a short term
discount will be offered to regain customer
base

Plan C

Caf Mocha, in event of continuous loss of 8


consecutive months will be put to auction

The base price, on todays date is estimated at


$50,000 but will change on the actual day of auction

The proceedings received will be first utilized to set


off loans and salaries.

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