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Research Project Starbucks Assignment

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Section 2: Introduction

In the 21st century, as there are many options to people for purchasing their products, the choice of customers depends on the product quality and quantity of ventures. The organisations under retail industry try to produce branded products as per the requirement of the customers. In the retail industry, the authority needs to convince the customers for increasing their sales. Different reputed brands like Aldi, Zara, H&M covers the market of Australia. It has been observed that, fulfilling customer’s requirement, the ventures are able to increase their sales around 12% in the recent year. As the enterprises under retail industry provide products in reasonable price, the economic development is seen in the country.

The competition is very high in the market as many organisations like Woolworths, Zara and many others are under retail industry. It is observed that, different ventures follow different strategies like pricing strategy, product quality and so on for holding their position in the competitive market. As per the report of RBA 2016 (Reserve Bank of Australia), the sale of the ventures is decreased due to lack of uniqueness. The workers of renowned ventures do not cooperate in time of production. However, the organisations arrange CSR (Corporate Social Responsibility) activities like preparing eco friendly products for attracting the customers.

At present, it has been noticed that, the major issue in retail industry is the managing department is not able to take proper decision due to excessive work pressure. In many cases, the ventures are not able to maintain their product quality for achieving profit. Henceforth, the customers do not like to purchase expensive products due to lack of quality. The remuneration of the employees is not increased in the ventures. Therefore, the workers have lost their interest in time of working. Many ventures do not follow the legislation like Equal Opportunity Act 1998 in time of producing products in the competitive market. 

Section 3: Case questions

1. The role of Chief Financial Officer for maintaining payment

Providing remuneration to the employee acts as motivation on them. As per the viewpoint of Patten & Zhao (2014), if the employees receive accurate remuneration from the authority of venture, they like to provide their best in time of production. Henceforth, the authority of business enterprises should provide remuneration on time as the employees do their job in the perfect way. In this case, as a Chief Financial Officer (CFO), the authority should provide the employee’s payment on time. The authority can increase their production for improving cash position.  

As per the Parliamentary Remuneration Act 1989, section 89, the venture should not hold the payment of their suppliers (legislation.nsw.gov.au, 1989). Maintaining legislation, the CFO needs to convince the CEO of the venture as they give payment to the suppliers. If helps to bring improvement in the product quality of the venture. Therefore, increasing sale is good sign for developing cash position of the enterprise.

2. Integrated reporting and change performance

Integrated Reporting

As mentioned by de Villiers, Rinaldi & Unerman (2014), integrated reporting is the communication procedure in the venture, based on which, the organisations are able to achieve their success in the competitive market. Integrated reporting helps to provide the financial information of the venture to their stakeholders or shareholders for designing their improvement strategy in the effective way.

The system of integrated reporting tries to achieve success for the venture in the contemporary competitive market.

As per the concept of integrated reporting, the authority of organisations need increase their number of shareholders for holding their cash in hand. As the organisations have intangible assets, they need to develop their production. It helps to increase their sales. The above mentioned change in performance is able to bring success for the venture.

Church (2014) stated that, if the sale of venture is increased, the authority can provide payment to the employees in proper time. Therefore, the authority can provide weekly payment to their employees as employees do not face problems due to lack of money.

3. Meaning of "at risk"

The concept of “at risk” indicates that, the authority of venture is not able to provide remuneration to their employees in the efficient way. In the opinion of Novotny, Dávid & Csáfor, (2015), if the venture is not able to meet their target, the employees would not receive any kind of compensation. This situation is considered as “at risk” component of payment.

In the retail industry, the employees need to meet their target in the effective way. If they are not able to meet, the venture can run in loss. If the enterprise is not able to gain their profit, they cannot collect their compensation. Therefore, the CEO or senior manager of the venture would face huge problems related to payment of employees. As per Corporation Act 2001, section 30D, the authority of business ventures should maintain ethics in the perfect way for achieving success in the contemporary merchandise market (legislation.nsw.gov.au, 2001). As the CEO wants to hold remuneration of the employees, as per report of Productivity Commission, the business authority can face problem related to the payment of employees. 



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