Friday, March 29, 2024
Victoria

QUESTIONS & ACTIVITIES

1. Father Chris Riley is an entrepreneur. How do entrepreneurs help shape society and the economy in Australia?

2. Why is it important for organisations to have a clear mission, vision and values?

3. Who are the stakeholders in the Macquarie Centre for Youth project? Are there any others you can think of?

4. Why is it important for YOTS to continually measure the effectiveness of their programs? List as many reasons as you can think of.

5. In your own words, list the objectives of the Macquarie Fields Centre for Youth.

EXTENSION ACTIVITIES

1. Using the case study and some additional research, e.g. the YOTS website and the 2011 Annual report, undertake a SWOT analysis of YOTS. A SWOT analysis examines the Strengths/Weaknesses (INTERNAL), Opportunities/Threats (EXTERNAL) of a business. Your teacher can provide some additional advice on undertaking the analysis. Present a short written (200-250 words) or oral (2-3 minute) presentation.

2. Like any startup organisation, Fr. Chris Riley would have had to create a business plan when he founded Youth Off The Streets. Create your own business plan for YOTS using the structure below:

Organisation description – including an overview of the organisation, description of your services,positioningand strategy.

Market analysis – including market size and trends, in this case, the number of young people you would help. This section should provide enough facts to convince an investor, potential partner or other reader that your organisation has enough support in a crowded charity marketplace. It should also show what services your organisation can provide that are currently not being offered effectively and why they are needed.

Development – including how your services will be developed and offered effectively, examples of development costs, location, labour etc

Marketing and fundraising - the strategy and tactics you will use to fundraise and get donations.

Management – showing that you have a winning team with a strong vision and complementary skills.

Financials - showing the costs of the business and indicating that you have evaluated the risks associated with your venture

 

Thursday, 12 January 2012 15:54

Baiada Teaching Hints & Strategies Edition 7

 

One way to introduce this topic might be to use examples of other well-known brands that have undergone a brand revitalisation or repositioning.  You might bring in packaging, prepare a multimedia presentation or access online sources to show appropriate branding.

You could use the basic information available on their website and elsewhere on the internet to discuss these points of interest with students.  You might want to have students research these issues and then report back to the class.

  • Year established
  • Number of sites
  • Global revenue/profit/employees if available
  • Reach and number of sales outlets
  • Industry of operation
  • Comparison to competitors
  • History of the Steggles brand
  • Sales information for Steggles products

The Baiada website is very no-frills, whereas the Steggles website contains much more information and is a ‘slicker’ online tool. Have students discuss and evaluate Baiada’s and the Steggles brand’s online presence. The TV commercials referenced in the case study can be viewed on the Steggles website.

Steggles is a family brand so aim in this case study to use the students’ own experiences of Steggles product as an illustration for the brand’s marketing program.  Ask them if they agree with surrounding brand values, positioning and so on.

Make sure to keep students focused on the aspects of commercial marketing so that they think like business people rather than consumers

 

Thursday, 12 January 2012 15:01

Baiada Learning Activities Edition 7

QUESTIONS & ACTIVITIES

 

1. What are some of the issues company management faces when undergoing a merger or acquisition?

2. What were the different steps in the Steggles brand revitalisation program?

3. What are brand positioning and brand values? What were the critical areas that Baiada needed to address?

4. Why do companies undertake Corporate Social responsibility (CSR) programs?

5. What benefits did Baiada see from the brand revitalisation campaign?

EXTENSION ACTIVITIES

1. Focus groups are a key part of market research campaigns and are ideal way to obtain direct product feedback from a target demographic. In groups, identify a brand (choose a household name)

Assemble focus groups from members of your school community. After obtaining the relevant permission organise an appropriate time and location to work with these students. Make the venue interesting, have music playing in the background, perhaps have a laptop ready and so on

Prepare a set of questions to find out how your focus group feels about your chosen brand. You will need to be very prepared and have someone in the group record the information.  Group members will need to have specific roles, such as asking the questions, recording the information etc.

Some possible things to find out are:

  • What they like about the brand
  • What they don’t like
  • Whether they would be prepared to spend money on the brand
  • What they think of the brand’s marketing and creative(TV/print/online adverts, etc, logo, tagline, special promotions etc)
  •  Comparisons with similar products

2. Using the information gained from your focus group activity, draw up your own brand revitalisation campaign, including the following areas:

  • Brand positioning and brand values (explaining why you have chosen these)
  • A new creative and what this represents
  • A marketing campaign, explaining why you have chosen the various elements

This activity could be undertaken individually, or in groups. Information about current market share, brand values etc should be available on most company websites. You should explain why you think the current campaign could be improved upon.

 

 

7-Eleven is the world’s largest operator of convenience stores and enjoys a high profile on the eastern seaboard of Australia. The recent acquisition by 7-Eleven Australia of the Quix/Mobil branded stores strengthens the company’s position against the growing incursion of Australia’s two retail giants, Coles (Wesfarmers) and Woolworths, into the fuel and convenience retail sector.

One way to introduce this topic may be to present examples of logos of the different retail brands operating in this sector and have students outline where these outlets are situated locally. This can lead to the development of a suburb/regional map of these retail convenience outlets, including those offering fuel and non-fuel.

In groups students could visit these sites and prepare a basic audit of the retail products and services on offer and could ask to interview owners about the history of the store at this site.

If this is the first time you have used a case study based on 7-Eleven Australia, you could use the basic information available on their website to discuss these points of interest with students.  You might want to have students research these issues and then report back to the class.

·    Country of origin

·    Year established

·    Countries of operation

·    Number of outlets

·    Global revenue/profit/employees if available

·    Year established in Australia

·    Domestic reach and number of outlets

·    Industry of operation

·    Domestic revenue/profit/employees if available

·    Comparison to competitors

·    History of the Slurpee

·    Sales information for the Slurpee

·    Media releases related to the acquisition

You should also access the other two case studies on 7-Eleven Australia, 7-Eleven: Revitalising the Slurpee brand7-Eleven: Revitalising the Slurpee brand andespecially7-Eleven: Managing a franchise-based business.

This case study essentially comprises 3 parts in respect to a teaching approach.

1.       A discussion of the company’s operations in Australia including an outline of 7-Eleven Australia’s acquisition.

2.       An investigation into the change management process used by 7-Eleven Australia to manage the acquisition.

3.       A description of the progress and outcomes associated with the acquisition with some evaluation using KPIs.

1. Give enough background to explain the operations of 7-Eleven Australia, including the distinction between the responsibilities associated with the company’s operations and the operation of the franchisee-owned stores.  You should use other examples of mergers and acquisitions to illustrate the role of the ACCC in approving corporate takeovers.

2. Introduce a SWOT diagram and have students perform a SWOT analysis on 7-Eleven and other competitors and/or local stores.  Discuss market power and highlight the changing nature of this market sector and the impact on small independent operators. Be sure to clearly explain the benefits and costs associated with a program of expansion through acquisition.

3. Introduce change management processes including Kotter’s 8-step process.  Explain that all processes have three distinct phases and relate this generally to 7-Eleven Australia’s acquisition.  Develop a flowchart or other visual aid to illustrate how 7-Eleven Australia managed the process of acquisition, including key time-based milestones.  Apply the theoretical use of change management processes to 7-Eleven’s Australia’s acquisition.  Introduce issues surrounding resistance to change as well as strategies to deal with resistance in key stakeholders.

Try to match Kotter’s 8-step process to the generic 3-phase process, by using examples of evidence from 7-Eleven Australia’s acquisition.  Consider getting students to undertake an updated SWOT analysis so as to demonstrate how 7-Eleven Australia is progressing in respect to the integration phase of the change.

You should also consider investigating factors commonly driving resistance to change as well as processes that can be used to manage resistance.  These can be applied to 7-Eleven Australia’s acquisition as well.

Change management is an ongoing process which needs to be monitored and evaluated.  It is vital that the class develops key performance indicators that can be used to assess 7-Eleven Australia’s progress generally, and specifically in respect to the store conversion process.  Try to find a local store example pre-conversion and compare this to a store post-conversion; or perhaps contact 7-Eleven Australia to find images of these.

Students should be encouraged to investigate the stages of strategic planning by applying the steps and strategies used by 7-Eleven Australia to manage this acquisition process.  Although this case study doesn’t overtly emphasise the notion of a strategic plan it does, however, inform students of examples of a strategic plan in action. 

You should investigate the previous case study, 7-Eleven: Managing a franchise-based business, to provide background as to how the 7-Eleven Australia operations system will help support new franchisees in the converted stores.

Students can once again be prompted to perform a SWOT analysis to report on the progress of conversion.  Also bear in mind that this conversion is an ongoing process which may not yet be finished.  Given this you should, wherever possible, try to find out information from 7-Eleven Australia related to progress of the conversion process.  This information might be made available through ongoing media releases on the company’s website.

Monday, 12 December 2011 13:41

7-Eleven Learning Activities Edition 7

 

1.   What is an acquisition?  Why might organisations undertake acquisitions of other businesses?

2.    Summarise the key features of the acquisition of the Mobil/Quix branded stores undertaken by 7-Eleven Australia.  Outline the main reasons why you think 7-Eleven Australia undertook this acquisition?

3.    What is a change management process?  Why is it important for organisations to use a change management process to manage strategic change?

4.    Use examples from the case study to outline the steps that 7-Eleven Australia undertook to manage the acquisition as part of a change management process.

5.    What is a SWOT diagram?  Why would it have been vital for 7-Eleven Australia to undertake a SWOT analysis prior to the acquisition?

6.    Outline the strategies that 7-Eleven Australia utilised as part of the transition phase so as to ensure effective engagement among its new employees.

7.    Explain the key tasks and activities that needed to be undertaken as part of the store conversion program.

8.    Describe the timeline associated with the store conversion process.  Evaluate how well 7-Eleven Australia has performed in respect to the planned conversion timeline.

9.    Discuss how three existing 7-Eleven Australia processes or systems could assist the newly converted stores to be more successful. 

10.  Evaluate the success of the acquisition undertaken by 7-Eleven Australia using key evidence.  

EXTENSION ACTIVITIES

SWOT Diagram

SWOT diagrams are an important management tool to help an organisation assess its current situation.  SWOT diagrams should also be undertaken periodically as part of an ongoing process, especially if the organisation is undergoing significant change

  • Break into groups of 3-4 students
  • Research the other case studies on 7-Eleven Australia available through this website.
  • Prepare a SWOT diagram for 7-Eleven Australia based on its position after its acquisition, but also taking into account what you have learned from the other case studies.
  • Clearly identify and describe key strengths and weaknesses.  Give reasons/evidence to support these.
  • Clearly anticipate and describe key opportunities and threats.  Give reasons/evidence to support these.
  • Form into different groups consisting one member from each of the previous groups, with each new group focusing on strengths, or on weaknesses, or on opportunities or on threats.
  • Combine, refine and create a master list for each SWOT category based on all the group members’ input, and then present the list to the class.

What’s next?

7-Eleven is a store that is constantly evolving and 7-Eleven Australia is constantly innovating.  You are required to act as a consulting team responsible for the next stage of developing the company.

  • After visiting your local 7-Eleven, suggest some in-store innovations that might help boost sales and profitability.  Also see if you can visit a converted store.  Compare the offerings from different stores, i.e. roadside fuel vs inner-city convenience.
  • Get permission to talk to the owner, employees and customers if possible, and ask them their views.
  • Assess the company’s product range and suggest some potential offerings.  What do you think the store is lacking?  What can be done about this?
  • Leverage existing strengths. What is working well and how can this be extended or applied to other products – (both goods and services)?
  • Develop some new promotional contests.  Develop an online or social networking marketing/advertising platform for a product range or for one-off promotions.
  • Discuss whether the chain should keep expanding.  Why/why not?  What are key pressures and opportunities associated with expansion?  Can a company become too big?
  • If it should expand – then how so?

Invite your local 7-Eleven owner/manager to the presentation and/or offer your best ideas to 7-Eleven Australia.

Revitalising an Australian household name

Baiada Poultry is Australia’s market leader in fresh chicken and poultry products. This Case Study discusses the revitalisation of the Steggles brand, examining the various steps in the process and the development of a Corporate Social Responsibility (CSR) strategy as part of the brand relaunch.

As a result of reading this Case Study, students should be able to:
  • Discuss the importance of brand positioning and brand values and how Baiada utilised these in their marketing campaign
  • Identify the stages of effective brand development  
  • Explain how Baiada embedded and promoted their corporate social responsibility strategy within the brand.

Introduction

It’s very likely that at some point in your life you’ll have eaten a product created by Baiada Poultry.

Revitalising the brand

Baiada’s aim was to define Steggles as a distinguishable industry leader. This was achieved by designing and implementing a brand revitalisation strategy encompassing four key drivers.

Developing a creative campaign

The next step was to create a strong and distinguishable brand identity. Brand identity is the outward expression of a brand, including its name, communications, and visual appearance.

Corporate social responsibility as part of the brand

Corporate social responsibility (CSR) is a form of corporate self regulation integrated into a company’s business model.

Conclusion

The revitalisation of the Steggles brand was a great success. Unaided awareness (asking people to name a poultry brand, without providing them with any written or visual clues) of the brand increased, as did customer perception of the quality of Steggles products. 

To download this case study as a free pdf, click the button below:

 

 

Introduction

It’s very likely that at some point in your life you’ll have eaten a product created by Baiada Poultry. Established by the Baiada family in the early 1940s, Baiada Poultry is a privately-owned Australian company which provides quality poultry products.

In July 2009 Baiada acquired Bartter Steggles. This established Baiada’s position as market leader in poultry production. Overnight Baiada’s staff count increased to over 4,000 employees, along with an increase in the number of farming and operational sites across the country. It was inevitable that an acquisition of this size would have a major impact on the total Australian poultry industry.

 

Combining two of Australia’s major poultry producers into one company was no easy feat. The merging of the two companies resulted in Baiada near next to doubling its operational facilities, consumer brands and product range. A successful business has clear, identifiable goals, an easily-recognised brand, and a defined product range, rather than one that contains products that compete for market share. Baiada’s first step was to implement a rationalisation program. This involved closing seven sites, withdrawing the beef, pork and lamb products which Bartter Steggles had in previous years persified into, and removing product duplication. The underlying belief was to focus on the business core competency – which is to produce the best of Australian poultry.

Ownership of the Steggles brand was an important part of the acquisition, with the brand commanding 90 percent brand awareness, compared to Baiada’s nine percent. The decision was made to phase out the Baiada brand and concentrate on further strengthening the Steggles brand. This decision improved operational efficiencies, which in turn increased cost efficiencies, whilst creating a renewed focus within the business.

 

 

Revitalising the brand

Baiada’s aim was to define Steggles as a distinguishable industry leader. This was achieved by designing and implementing a brand revitalisation strategy encompassing four key drivers:

1. Research showed that consumers found minimal difference between Steggles and its main competitor, both in terms of what the brand stood for (the brand values) and the physical depiction of the brand, including the logo, packaging, marketing and advertising techniques. Some consumers even thought that the two brands were part of the same company!

2. Over the previous five years Steggles, like other major poultry brands, were losing shelf space and market presence to private label and new poultry brands. The poultry offering in Australia provides consumers with good value; however consumers buy for many different reasons, of which price is only one factor. Consumers’ overall opinion of the brand, which translates directly into how likely they are to buy the product, is called the ‘value perception’. The value perception of the new poultry brands entering the market was gaining ground.

3. Business sustainability is critical to a company’s success. An acquisition is a considerable change to a business and it was important for Baiada to continually prove to financial lenders and shareholders that the business would continue to succeed and grow. Capitalising on Steggles’ brand equity was an important way to ensure this growth.

4. Merging two companies is no easy task. Different businesses have different cultures and ways of working, and the inevitable changes and rationalisation that follow can cause uncertainty and a drop in morale.

A successful brand relaunch is one way in which a business can ensure everyone is working towards a common goal. To successfully relaunch the Steggles brand, Baiada reviewed and identified the brand positioning and brand values. Brand positioning reflects the place a brand occupies in the marketplace and should identify and communicate to customers why the brand is unique, how it differs from its competitors, and its value to the customer. Brand values help build a connection with the consumer.

Baiada identified the Steggles brand positioning and brand values through a series of workshops that evaluated the following areas:

  • Perception of the Steggles brand versus competitor brands. As discussed previously, the current branding caused confusion among consumers, leading to a lack of clear brand identity
  • Short and long-term objectives for the brand, including regaining shelf presence, growing the number and profit margin of products sold, and brand loyalty
  • Gaps in the market. No major Australian poultry producer’s brand had strong representation in the fresh chicken category. Steggles had an extensive range in the value-add segment of the market (chicken nuggets, chicken fingers etc.), however fresh products drive a stronger quality message and with a limited range in this area Steggles were well aware that this needed to be their next step forward
  • The existing Baiada business values. Family and community had always been an important part of the Baiada business and it was important that this extended to the Steggles brand, especially as Baiada branded products were being phased out and removed from shelves.

The evaluation process led to the Steggles brand positioning being created based on three key values: Quality, Australian & Family. The brand revitalisation plan was now ready to enter the next phase.

 

 

Developing a creative campaign

The next step was to create a strong and distinguishable brand identity. Brand identity is the outward expression of a brand, including its name, communications, and visual appearance. It should reflect how a business wants the consumer to perceive the brand, i.e. embody the brand values. The recognition and perception of a brand is highly influenced by its visual presentation – the overall look of its communications. Effective brand identity is achieved by the consistent use of particular visual elements to create distinction, such as specific fonts, colours, and pictures. At the core of every brand identity is the logo.

The designer’s brief was very clear: the logo should stand for quality, be identifiably Australian, and ensure that the name ‘Steggles’ was distinguishable. The result was a design that incorporated a blue ribbon, the traditional prize given for first place – representative of both quality and Australian. The picture of a chicken on the ribbon, which is placed on the top of a barn, communicates leadership and enables the consumer to immediately make the link between Steggles and its core product, whilst the colour and shape were vastly different from the major competitor’s logo. Most importantly the Steggles script was maintained, with slight modifications to make the look more modern. The strength in the Steggles logo exists within the script, which has attributed to the growing recognition of the Steggles brand over the years. As a result the major changes that were made, outside of the script, were made with calculated risk.

 

The next stage of the revitalisation was to communicate the brand values to the customer through a marketing communications strategy. Baiada invited bids for tender for the creative, eventually awarding the business to M & C Saatchi. The campaign showed how quality is an integral part of every process in the business and introduced the line ‘We’re Stegglers for quality’ – with ‘Stegglers’ being a play on the word ‘stickler’. The new communications strategy incorporated the following elements, which were implemented between January 2010 and December 2010:

  • New product packaging
  • The rebranding of 100 Steggles trucks
  • Television and print advertising campaign
  • New website
  • 12 month public relations program
  • Sponsorship of the Sydney Roosters, including an innovative charity focus.

The TV campaign was set on Steggles chicken farms. This integration of the essence of Steggles’ business was essential as:

  • The farms showed the brand’s commitment to Australian farming
  • Baiada recognised that farming was the sole reason for their existence – an important message for consumers and beneficial for the entire poultry industry
  • Showing chicken farming helped to address the misconceptions that exist around the poultry industry
  • The visual images of Steggles farms and chickens produced a highly emotive response with consumers.

The campaign differed from traditional communications in that rather than advertising specific products, it focused on promoting the Steggles brand, the category (fresh chicken) and educating the consumer about the poultry industry (clearing up misconceptions about sustainability, environmental practice and animal welfare). Incorporating the farms as the backdrop for the TV campaign provided customers with a direct insight into poultry farming practices and the people who work in the industry.

The ‘We’re Stegglers for quality’ campaign further enhanced Steggles leadership role in the poultry industry. This in turn increased demand, and strengthened relationships with business customers (e.g. chicken shops, butchers) as there was an opportunity for these customers to leverage the ‘quality’ message within their own businesses.

 

 

Corporate social responsibility as part of the brand

Corporate social responsibility (CSR) is a form of corporate self regulation integrated into a company’s business model. The goal of CSR isto take responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities and other stakeholders. This is not only the right thing to do, but makes good business sense, with people more likely to buy from, invest in, or work for, companies that act responsibly and ethically.

Baiada had always been very active in the community; however, the limited public awareness of the Baiada brand meant that the community at large was not really aware of this fact. The acquisition of the far more well-known Steggles brand meant that Baiada were able to leverage brand recognition with community support; i.e. develop a CSR strategy that not only enhanced public perception of the brand, but also increased charitable and community support and donations. Once again, it was essential that the business defined clear objectives.

These included:

  • A renewed commitment to the long-standing focus on children’s charities
  • An understanding that helping children and families in need was the main reason for charitable support, with brand recognition a welcome, but a less important, by-product
  • Defined parameters for charity and community support, including clear visibility for employees as to where contributions were being directed, and a focus on causes local to Baiada business sites
  • The appointment of ‘Charity Champions’ at the nine major business sites, with the responsibility of building staff involvement and awareness
  • The identification of new and innovative ways to build financial contribution and awareness of supported charities within the business
  • To be more than just a financial contributor by helping charities in non-financial ways, e.g. assisting with ideas for fundraising, building awareness, leveraging business contacts etc.

The major development in Baiada’s community work was the establishment of the Steggles Roosters Charity Nest after Steggles became the major sponsor for the Sydney Roosters in 2010. Steggles contributed $1000 for every point by which the Roosters beat their opponents, with the Roosters themselves contributing $250 for each point.

Creating a charitable focus outside the business

The association with the Roosters ensured the Steggles Charity Nest, and its benefiting causes, was widely discussed in both sporting and mainstream media. The players visited children’s charities, including the Children’s Cancer Institute Australia and Brisbane Children’s Hospital, along with the half time segment at the Roosters games being made available to the charities to help build awareness. In addition to this, Baiada were provided with corporate rooms on three occasions during the year – these were used once by a charity for fundraising, and twice by Baiada for customer charity events where the company raised money through silent auctions and raffles.

Creating awareness internally

The Charity Champions appointed at each site were invaluable in creating an improved focus on the Charity Nest within the business. They became responsible for reviewing requests for sponsorship and donations in line with established guidelines, driving an increase in salary sacrificing from employees and increasing awareness of supported charities within the workplace. In the last 18 months, staff contributions have increased by 16 percent, with Baiada matching contributions dollar for dollar.

Money raised within the business stays locally, creating a sense of ownership within each business site, rather than employees relying on directives from head office on what should be done with the money they have donated.

Baiada have worked to develop closer relationships with benefiting charities. This allows the business to understand how funds were being used, improving visibility to employees as to where their funds were going, and, most importantly, the benefits to the children and families experiencing difficult times. Being able to directly see the results of donations has created a sense of pride amongst staff.

 

 

 

 

Conclusion

The revitalisation of the Steggles brand was a great success. Unaided awareness (asking people to name a poultry brand, without providing them with any written or visual clues) of the brand increased, as did customer perception of the quality of Steggles products. Importantly, customers’ perceptions of how chickens are farmed in Australia were becoming more aligned with the reality.Visits to the Steggles website increased by 300 percent and focus groups held in February 2011 reiterated Steggles’ positioning as a quality Australian brand.

Corporate social responsibility targets have also been improved by the revitalisation of the Steggles brand – 2010 saw a growth of approximately 200 percent. The sponsorship of the Sydney Roosters has brought featured charities to wider public attention and received an extremely positive reaction. There is a strong commitment to charity and community within the business, with a genuine compassion and support for those in need.

Steggles continues to make inroads in the poultry market, with a Steggles Family Feast whole chicken now available in all leading supermarkets, further cementing Steggles’ position as a fresh poultry provider. Over 100 local chicken shops also now display Steggles as their poultry provider.

Finally, the development of the new Steggles brand values has had a ‘halo effect’ on the Baiada business culture. Employees are proud of the brand they work with and what it stands for, with the ‘new Steggles’ uniting all people within the business, regardless of the company they commenced their employment with.

 

 
Associated with:
Learning Area(s):
  • Business Environment | Measuring business performance
  • Business Environment | Mission and Objectives
  • Change Management | Managing change effectively
  • Change Management | Sources of change
  • Change Management | Strategic planning
  • Communication | Effective communication models
  • Ethics and Social Responsibility | Socially responsible programs and approaches
  • Marketing | Market research methods/analysis
  • Marketing | Marketing evaluation including use of KPIs
  • Marketing | Product development
  • Public Relations | PR Tactics and their application
From: Edition 7
Wednesday, 30 November 2011 14:03

Youth Off The Streets

 

2011 marks 20 years since Father Chris Riley founded Youth Off The Streets to assist homeless and disadvantaged young people.  In that time, he estimates the organisation has assisted over 50,000 young people through providing accommodation, education, psychological services, drug and alcohol rehabilitation, early intervention and community outreach.

Fr Riley was first inspired to dedicate his life to working with homeless young people by the character Father Flanagan in the movie Boys Town.  From humble beginnings in 1991 as a single food van delivering meals to young homeless people on the streets of Kings Cross, Youth Off The Streets  is now a major youth specific accredited charity employing over 250 staff members who work to provide opportunities for young people to turn their lives around and overcome immense personal traumas such as disadvantage, neglect, physical and emotional abuse.

Company News:

Reach for a brighter future

This Case Study examines the charity Youth Off The Streets, its development and operations. It discusses the importance of running a charity like any other business and looks at the development of one of its most ambitious projects: the building of the Macquarie Fields Youth Centre.

As a result of reading this Case Study, students should be able to:

  • Understand the importance of entrepreneurship in business 
  • Discuss the importance of clear and measurable goals and objectives in business planning
  • Explain the benefits of identifying and engaging stakeholders

Introduction

2011 is the 20th anniversary of Youth Off The Streets, the charity founded by Father Chris Riley to assist homeless and disadvantaged young people.

Providing an innovative solution to a societal problem

Fr Chris Riley is an entrepreneur. Entrepreneurship is about coming up with creative ideas (often involving risk-taking) and then finding the resources and opportunities to put these ideas into action.

Translating goals into reality - the development of the Macquarie Fields Centre for Youth

The Macquarie Fields Centre for Youth, opening in 2011 in Sydney’s southwest, is YOTS’s latest innovative project designed to meet community needs. 

Conclusion

Youth Off The Streets has been working with disadvantaged and marginalised young people for 20 years.

To download this case study as a free pdf, click the button below:

 

Introduction

2011 is the 20th anniversary of Youth Off The Streets, the charity founded by Father Chris Riley to assist homeless and disadvantaged young people. Since its inception, YOTS has helped over 50,000 young people through providing accommodation, education, psychological services, drug and alcohol rehabilitation, early intervention and community outreach.

Fr Riley was inspired to dedicate his life to working with homeless young people by the character Father Flanagan in the movie Boys Town. This dedicated team, under Fr Riley’s leadership, work to nprovide opportunities for young people to turn their lives around and overcome personal traumas such as disadvantage, neglect, physical and emotional abuse.

Youth Off The Streets - Reach for a brighter future

Youth Off The Streets now assists young people by providing:

  • Crisis accommodation
  • Education through 4 accredited high schools
  • Medium – long term accommodation and care
  • Early intervention and outreach through community engagement in 12 metropolitan and remote communities
  • Drug and alcohol counselling and rehabilitation
  • Mentoring
  • Parenting Programs
  • Integration Support
  • StreetWalk Program
  • Food Van
  • National Scholarship Program.

 

Providing an innovative solution to a societal problem

 

Father Chris Riley is an entrepreneur. Entrepreneurship is about coming up with creative ideas (often involving risk-taking) and then finding the resources and opportunities to put these ideas into action. We generally associate entrepreneurship with business ideas, or creating personal wealth, but the characteristics of the entrepreneurial spirit – passion, perseverance, problem-solving and a never-give-up attitude are just as important in charities and not-for-profit organisations. Fr Chris saw a real need for more support for homeless young people in the inner city.

His tenacity and commitment saw Youth off the Streets grow from a single food van delivering meals to young homeless people on the streets of Kings Cross into a major youth charity employing over 200 staff members.

An effective charity should be run in the same way as an effective business – to ensure that as much of the organisation’s funds as possible go towards the charity’s primary goal of helping people. YOTS operates in the same way as any other business, with a clear mission statement, vision, strategic aims and goals. These help focus the charity’s efforts and help personnel make the best possible decisions about how funding is used.

Mission Statement

YOTS is helping disconnected young people to discover greatness within, by engaging, supporting and providing opportunities to encourage and facilitate positive life choices.

Vision

YOTS’ vision is that we are well planned and balanced to meet the needs of all our stakeholders and in doing so we are focused on outcomes, community and sustainability.

In 2008, YOTS released the PRIDE values, developed by young people helped by the organisation, in conjunction with YOTS employees and the Board of Directors. These are YOTS’ guiding principles and reflect both the values that are most important for all those involved with YOTS to commit to and the overall aim of the organisation – to instill pride and self worth in disadvantaged young people.

 

Translating goals into reality – developing the Macquarie Fields Centre for Youth

The Macquarie Fields Centre for Youth, opening in 2011 in Sydney’s southwest, is YOTS’s latest innovative project designed to meet community needs. Offering education, training, pathways to employment, sporting and recreational facilities and other community services, the Centre is the local ‘one-stop-shop’ for young people. It is designed to bring together and build upon the programs YOTS is successfully currently delivering in the area, with these programs becoming part of the Centre’s offerings.

Outreach Program

YOTS Outreach programs provide a safe and friendly environment for at-risk and disadvantaged young people on familiar territory. They are designed to help young people develop self-esteem, pride in their communities, and find ways to rebuild and strengthen the overall community. In Macquarie Fields, YOTS operates weekly BBQ-and-Basketball activities on the basketball courts of the local high school, providing a safe place in the evening for local young people and their families, and, for some, the most substantial meal they have all week.

The program, delivered by Youth Workers has the following benefits, engaging with young people, learning about their needs and supporting them in developing educational or employment plans. YOTS also recruits Trainee Youth Workers to participate and take ownership of the programs.

  • Long-term intervention strategy
  • Designed to increase school attendance and employment
  • Aims to decrease local youth crime
  • Incorporates positive recreational activities, e.g. basketball, barbeques, dance etc.
  • Builds trust with at-risk and disadvantaged young people through regular contact.

Eden College

Eden College is an alternative learning program that focuses on providing flexible education to students who are in danger of dropping out of mainstream education. The curriculum is flexible and concentrates on identifying students’ individual needs and talents.

Trainee Youth Worker Program

Trainee youth workers come from the Macquarie Fields area. The program allows participants to study at TAFE and work within YOTS whilst contribute within their own communities.

Developing clear objectives

A clear set of goals ensures that everyone involved in a project understands the aims and objectives of the development and helps explain the purpose to external stakeholders. A project’s success will be determined by how closely set goals are met.

The goals of the Macquarie Fields Youth Centre were:

a) To build a multi-purpose Youth Centre in the suburb of Macquarie Fields

b) To establish a safe space for young people and families in their own suburb.

c) To contribute to long-term solutions and interventions for a complex range of issues.

d) To use a model that will build self-esteem and capacity, rather than creating dependence.

e) To train adult members of the community who volunteer to help with the program, in order to build bonds between adults and young people, and facilitate role modelling.

f) To develop programs that will gradually impact on levels of school exclusion, youth crime and employment by providing diversionary activities, alternative education and aspiration.

g) To provide clients with strategies to feel safer in their own homes and community.

h) To equip young people with skills to increase their employment capacity.

i) To increase self-esteem and respect for others.

j) To contribute to breaking inter-generational cycles of violence and disadvantage.

Engaging with the community

The YOTS programs in Macquarie Fields were developed in response to community request and took into account the specific needs of the area.

YOTS consults regularly with local residents, through:

  • Informal liaison (staff and volunteers talking to community members at Outreach evenings)
  • Formal liaison (meetings with local agencies such as the police, council, other local charities and relevant government departments).

This consultation allows YOTS to develop programs and services in line with the changing needs of the community.

For the development of the Youth Centre, YOTS identified a range of stakeholders. These were:

a) Resident young people of Macquarie Fields, aged 8-25

b) The wider Macquarie Fields residential and business community

c) Organisations servicing the community, either located in the area or through Outreach

d) Police

e) Campbelltown City Council

f) Primary and High Schools

g) NSW Department of Housing

h) Funding bodies, including all levels of Government, philanthropic and individual donors.

YOTS incorporated a range of ways for stakeholders to contribute to the development and operation of the Centre. One of the most important components was the establishment of partnerships with other local organisations to assist in providing the Centre’s services and make sure

that there was no overlap in services.

YOTS also developed a survey for young people in the area to find out nwhat facilities and services they wanted in a youth centre. The answers

were incorporated into the architectural plans. Ongoing feedback is provided by the Trainee Youth Workers, who talk to the young people in the area every day. YOTS uses an informal consultation process – focusing on talking to young people who actually use the Centre, rather

than continual surveys and meetings.

Building awareness

To reach those most in need of the Centre’s services, YOTS developed a marketing plan during the consultation period using a range of formal and informal channels in the community. Posters, flyers, newspaper advertisements and media articles were all used to promote the Centre, showing what was available and encouraging young people to come and see what the Centre had to offer. To maximise effective use of funding, advertising campaigns were used mostly for campaigns where the target group could be effectively identified, targeted and measured to ensure the best possible return-on-investment.

Informal promotional tools were an important part of the campaign. Other groups who work with young people were encouraged to refer them to the Centre and partner organisations were given YOTS materials to give to their clients. YOTS also built networks within the community and news of the Centre spread through word of mouth. Websites such as Facebook were also used to spread the word of the Centre’s services. Social media can be a powerful and low cost tool in engaging young people in a medium they use regularly.

Measuring performance

As with any business activity, it is crucial that YOTS continually measures performance of their programs – to see what works, check whether they are providing the services needed, and to allow them to make improvements. Good feedback also helps keep staff focused and morale high. YOTS has to provide feedback and data to major funding bodies (e.g. government, corporate supporters etc.) to show them how their contributions are being used. To allow this to be completed effectively, YOTS continues to strengthen partnerships with universities and external consultants and uses best practice and continual improvement methods of data collection, analysis and reporting.

Each of the YOTS programs, including the Macquarie Youth Centre, has internal reporting and evaluation processes. Program managers write weekly reports and deliver a monthly report to the Director of Services, to show how the programs are meeting their goals, objectives and budgets.

The Program Manager also meets with other appropriate governmental and charitable organisations and gets feedback from community groups about the success of programs in the area.

The Outreach programs are evaluated on an ongoing basis using a variety of quantitative and qualitative research, including:

a) The number of young people who use the service

b) The number of repeat visits

c) Age, gender, ethnicity, first language spoken at home 

d) Employment, study or training status

e) School attainment

f) The number of volunteers in attendance

g) Compare changes in knowledge and attitudes in relation to a wide range of issues including youth crime and safety, youth health and well-being,

relationships, family

h) Pre and post attendance surveys, including satisfaction surveys, measures of well-being, measures of knowledge and attitudes

i) Community focus groups

j) Feedback from social workers, youth workers and other community service agents and stakeholders.

 

Conclusion

Youth Off The Streets has been working with disadvantaged and marginalised young people for 20 years. During this time the organisation has grown from Fr Chris Riley and a single food van on the streets of Sydney, to a major youth organisation helping thousands of young people in need a year. Its success is due to the commitment of its team and the application of sound business principles that ensure focus, effective management of funds and the development of programs and services that rebuild communities and save lives.

 

Associated with:
Learning Area(s):
  • Business Environment | Developing organisational culture
  • Business Environment | Measuring business performance
  • Business Environment | Mission and Objectives
  • Business Environment | Stakeholders
  • Business Environment | The external environment
  • Business Environment | Types of large organisations
  • Change Management | Strategic planning
  • Entrepreneurship/Innovation | Fostering innovation within business
  • Entrepreneurship/Innovation | Innovative business
  • Entrepreneurship/Innovation | The role of the entrepreneur
  • Ethics and Social Responsibility | Socially responsible programs and approaches
  • Marketing | Market research methods/analysis
  • Marketing | Marketing evaluation including use of KPIs
  • Marketing | Product development
  • Marketing | Promotion strategies and their application
From: Edition 7

Expanding the brand through acquisition

This Case Study investigates how 7-Eleven Australia managed the acquisition of 295 Mobil/Quix branded stores. It examines how 7-Eleven Australia developed strategies to effectively manage the complex integration of two business operations as part of a change management process. It also evaluates the ongoing success of this strategic change, with particular reference to the process of store conversions.

As a result of reading this Case Study, students should be able to:

  • Describe the acquisition undertaken by 7-Eleven Australia in response to pressures and opportunities for change 
  • Explain the activities undertaken by 7-Eleven Australia to integrate the two business operations with reference to a change management process
  • Evaluate the success of the acquisition and store conversions program.

Introduction

7-Eleven is Australia’s leading convenience retailer operating more than 650 stores along the eastern seaboard of Australia. As a privately-owned Australian company, 7-Eleven Stores Pty Ltd develops and franchises stores under license from 7-Eleven Inc, USA.

What is change management?

The commercial world is a dynamic and evolving environment. Structural change refers to longer-term change that fundamentally alters the major structures and activities of an organisation thereby impacting on all internal and external stakeholders. 

Ensuring effective engagement

It is vital that organisations anticipate the effect that change will have on stakeholders and work processes so they can plan appropriately to manage problems and reinforce positive outcomes brought about by change. 

Getting the look

A key part of the acquisition was the rebranding of the Mobil/Quix stores. 7-Eleven has invested heavily in its brand, signage, promotional materials, store layout and other identifying features and needed to convert its new stores not only to its operational system, but also to the 7-Eleven look.

Managing processes and procedures

To reinforce the integration 7-Eleven Australia had to train new franchisees in the company’s systems and processes. One of the advantages of having existing franchisees take up another store was that they required less training. Conclusion

Conclusion

7-Eleven Australia has embarked upon an ambitious but well-managed expansion through horizontal acquisition. 

To download this case study as a free pdf, click the button below:

 

 

Introduction

7-Eleven is Australia’s leading convenience retailer operating more than 650 stores along the eastern seaboard of Australia. As a privately-owned Australian company, 7-Eleven Stores Pty Ltd develops and franchises stores under license from 7-Eleven Inc, USA. All of its stores are owned by franchisees and governed by a franchise model. Franchisees are responsible for store operations, merchandising, employees, inventory management and other controls, whereas head office is responsible for real estate sites, accounting, equipment, utilities, branding and promotion and, of course, managing the supply chain.

 

7 eleven - Expanding the brand through acquisition

 

7-Eleven Australia, home of the iconic Slurpee, has been embarking on an ongoing strategic process of modernisation and change in order to remain competitive in the constantly evolving convenience retailing market segment. One of the key commercial pressures facing the company has been the move of the retail giants Woolworths and Coles (Wesfarmers) into the petrol retailing market segment.

 

 

In 2010, 7-Eleven Australia undertook a major strategic change by acquiring 295 outlets from Strasburger Enterprises (Properties), the retail subsidiary of Mobil Oil Australia which operated stores using Mobil and Quix branding. This horizontal integration involved 7-Eleven Australia taking over not only all of the stores (and their operators) but also all employees of Strasburger Enterprises (Properties). Corporate mergers and acquisitions are subject to approval by the Australian Competition and Consumer Commission (ACCC) as part ofregulations to limit unfair market power. The acquisition was approved; however the company had to divest three outlets. 7-Eleven Australia also on-sold 30 South Australian stores to another corporation as they did not have an operational base in that state.

 

One of the key objectives of this acquisition was for 7-Eleven Australia to become the market leader in convenience retailing throughout the eastern states of Australia. The acquisition increased the number of 7-Eleven outlets by 62 percent. As a result the company expects the number of transactions to grow by 75 percent and sales growth in

excess of 50 percent.

 

The acquisition sees 7-Eleven Australia grow to be Australia’s third largest privately-owned company (excluding superannuation funds). The challenges presented by this acquisition are complex and ongoing, and as such, they needed to establish an effective change management process to properly manage this major strategic change in a timely fashion.

 

What is change management?

The commercial world is a dynamic and evolving environment. Structural change refers to longer-term change that fundamentally alters the major structures and activities of an organisation thereby impacting on all internal and external stakeholders. One of the key challenges associated with large-scale corporate acquisitions is dealing with resistance to change. It’s natural for stakeholders to experience a sense of shock and to be unsure of the motives of the new owners. Employees can feel threatened by change and might fear for their job security.

 

Under the deal 7-Eleven Australia were to take over the retail outlets as well as the 105 ‘above store’ staff (i.e. corporate and management) and 1750 store employees. 7-Eleven Australia also had to anticipate the impact of the changes on its operations including finance, HR, marketing, merchandising and supply chain and other management, administration and operational functions. Essentially it had to manage the merger of two similar but separate corporate entities, without alienating key stakeholders, whilst still operating within the highly competitive retail convenience market.

 

In its simplest form a change management process can assist an organisation to move from a ‘current state’ to a ‘desired state’. There are many different change management processes with slightly different steps; however these processes usually include three main phases.

 

 

A change management process allows an organisation to develop a consistent planning and implementation framework that sets down clear objectives for relevant stakeholders. The development of this action plan unites stakeholders in the pursuit of common goals and supports communication and transparency.

 

Throughout its preparation phase, 7-Eleven Australia undertook extensive planning and consultation. This included confidential legal, financial and operational planning at executive and senior management level, as well as planning related to the acquisition itself. Activities associated with this planning phase included broader goal-setting, the development of key timelines and the establishment of key working parties and committees to drive the integration of the two entities.

 

Once the acquisition was announced on May 27th, 2010, the company moved into its integration phase. Key planning decisions were delegated and became shorter-term and more tactical so as to drive and support the logistics of the integration. 7-Eleven Australia established three discreet timelines to manage the change:

 

 

A platform of seven key objectives were developed (below) and communicated to all relevant stakeholders as integration priorities.

 

 

One of the most effective tools that can be used as part of a change management process is a SWOT diagram. A SWOT diagram allows an organisation to analyse its internal strengths and weaknesses and major external opportunities and threats that it might face. As an example, 7-Eleven Australia could be said to have been facing the following strengths, weaknesses, opportunities and threats leading up to the acquisition.

 

 

 

 

Ensuring effective engagement

It is vital that organisations anticipate the effect that change will have on stakeholders and work processes so they can plan appropriately to manage problems and reinforce positive outcomes brought about by change. Transition was overseen by a 7-Eleven Australia Steering Committee featuring senior executives. This strategic planning committee fed directly into a Joint Steering Committee featuring key senior staff from both businesses.

 

The ongoing management of the integration was conducted by a Program Management Office (PMO) which was given responsibility for developing the master plan and other tactical applications of the integration process. 7-Eleven Australia identified 16 workstreams representing its key divisions and operations such as fuel, merchandise management, store conversions as well as finance, IT, HR and others. These workstreams were charged with the responsibility for integrating the ‘equivalent’ function in the acquired business.

 

 

The PMO developed and provided the tools and support needed to help these workstreams manage their responsibilities and activities as part of the integration process. Tools included planning templates, risk management models, communication processes and others. The PMO also handled all communication, liaising with both the senior steering committees and the action-oriented workstreams. This model allowed for maximum consultation, feedback and support with all communication

channelled through one working group. The PMO also implemented a framework to map dependencies across workstreams so as to ensure that physical, human and other resources would be available when needed to enable timelines to be met.

 

A key to effective change management is to overcome resistance and ensure stakeholder and employee engagement. One of the company’s key principles for the integration was “Creating one culture and avoiding an ‘us and them’ attitude.” The establishment of the Joint Steering Committee, featuring representatives across both businesses, meant that the decisionmaking processes were transparent and open.

 

When a business is acquired employees naturally feel threatened. This acquisition required 105 corporate and 1,750 store employees from Mobil Oil Australia and Strasburger Enterprises to be absorbed into the 7-Eleven team. 7-Eleven Australia itself had 450 employees with all stores owned by franchisees. It developed and offered comparable or alternative positions to new staff, conducted appropriate induction programs, converted employment contracts and working arrangements and expanded its corporate headquarters in Glen Waverley to house the new ‘corporate’ employees.

 

A key change management objective of 7-Eleven Australia was “clarity of decision-making processes”. During the planning phase the workstreams worked with the PMO to develop detailed integration plans. After approval by the steering committee each workstream leader had responsibility for delivering on the plans within timeframes and cost guidelines. This consultative process engaged key employees and franchisees, as well as potential franchisees from the Mobil/Quix stores and supported two-way communication.

 

The workstreams were as closely aligned as possible across the two businesses with key staff from each responsible for enacting the integration. The workstreams met weekly and determined issues and risks, reported on milestones and tasks and set down key objectives and decisions to be made. Demand for 7-Eleven franchises had outstripped supply so the acquisition provided hundreds of opportunities for both new and existing franchisees. More than half of the converted stores were taken up by existing franchisees and corporate staff and their family members. A small number of Mobil/Quix operators who previously ran their stores as commission agents, and some corporate Store Managers, took up the offer to become 7-Eleven franchisees and underwent a franchisee training program.

 

7-Eleven Australia had previous experience in managing acquisition-related change when it took over a number of Burmah and BP outlets in the early 2000s. At first they operated a number of co-branded sites because it believed maintaining the familiar fuel brand provided a more credible fuel offer for customers. However, as a trial they converted a handful of these stores completely to the 7-Eleven brand. The company discovered that after these sites were fully converted that although fuel volumes fell initially, merchandise sales grew significantly and overall profitability was enhanced for franchisees. The company applied these lessons to create synergies with this acquisition.

 

Getting the look

A key part of the acquisition was the rebranding of the Mobil/Quix stores. 7-Eleven has invested heavily in its brand, signage, promotional materials, store layout and other identifying features and needed to convert its new stores not only to its operational system, but also to the 7-Eleven look. As part of the ongoing integration phase many sites needed to be significantly upgraded. A key objective was to change these sites from being seen as ‘service stations’ and instead be remodeled and rebranded into sophisticated convenience retail outlets more associated with 7-Eleven’s core branding strategy.

 

Old Store

 

 

The changeover extended well beyond simple tweaks such as getting new signage and sticking in a Slurpee machine. Some stores required major building and site infrastructure work, retail fit-out and equipment had to be changed to match 7-Eleven systems and all signage and promotional material had to be changed.

 

7-Eleven Australia started to convert the first 30 stores between October and December 2011 as part of the ‘first 100 days’ phase. Planning permits were secured back in July 2010 so as to allow enough lead time for council approval. At first they converted the larger Quix sites as these required less external building work. Subsequent to this the company planned onconverting five stores a week, nationally, throughout 2011. By October 2011, it had converted in excess of 100 stores.

 

New Store

 

 

One of the key priorities for the integration was a focus on achieving, “business as usual as quickly as possible with minimal impact to the customer”. Therefore it was vital that the conversions were carried out as expertly as possible. Each conversion averaged about six weeks and conversions were spread across different states at the same time.

 

New franchisees reported that store customers felt the refurbished 7-Eleven stores had an improved atmosphere, with brighter lighting and a more functional layout. They added that features of 7-Eleven stores such as the ‘Slurpee zone’ and ‘munch’ fresh food range were proving exceptionally popular. Customer exit surveys also found an increase in satisfaction after the conversion due to the new layout, brighter illumination, more spacious aisles and, “friendly service from staff”.

Managing processes and procedures

To reinforce the integration 7-Eleven Australia had to train new franchisees in the company’s systems and processes. One of the advantages of having existing franchisees take up another store was that they required less training. The company also had to train some staff internally to act as changeover specialists. It also had to modify its franchisee training program and source and train new trainers.

 

7-Eleven Australia has developed a number of internal support systems such as the Franchisee Matrix used for store performance mapping, an automated stock reordering system, their sophisticated and timely intranet communications systems and more. As part of the synergies achieved through the acquisition these systems are

now deployed in the new stores with operators given appropriate training and ongoing coaching support. The company is now able to leverage its proven system to assist its new stores to increase profitability.

 

Stores can now take advantage of 7-Eleven’s innovative B2B system which automatically generates a stock replenishment order using scanned sales data, but which still allows franchisees to modify the order based on local conditions. The system can tailor stock levels, pricing, promotions and optimal store layouts to maximise customer spending. Franchisees can compare key performance indicators to benchmark against ‘like stores’. This allows franchisees to implement success strategies used in more profitable stores to improve their own performance.

 

The Franchisee Matrix allows real-time reporting of sales and profitability data by measuring store performance and engagement against ten financial and non-financial KPIs. This continuous improvement tool analyses strengths and weaknesses, and training and support is offered to franchisees through an Individual Store Development Plan.

 

The acquisition has also led to a strengthening of its supply chain. Fresh offerings are delivered overnight by Swire Cold storage. Dry goods are delivered on average twice a week by Metcash, who are now handling all dry goods deliveries throughout the entire 7-Eleven Australia store system, thereby improving economies of scale. Another outcome of the acquisition is that 7-Eleven Australia have signed an agreement with Mobil to be its sole fuel supplier.

Conclusion

7-Eleven Australia has embarked upon an ambitious but well-managed expansion through horizontal acquisition. This strategy has allowed the company to be able to develop its network of stores in already established, and therefore lower risk, locations. However, the company faces ongoing pressures to manage the integration throughout the reinforcement stage of the change management process. Challenges include continuing the store conversion process, training and developing new staff and franchisees to be satisfied members of the 7-Eleven Australia team and ensuring that converted stores meet established KPIs and profitability levels expected of

those in the 7-Eleven Australia franchise system.

Associated with:
Learning Area(s):
  • Business Environment | Mission and Objectives
  • Business Environment | Stakeholders
  • Business Environment | The external environment
  • Business Environment | Types of large organisations
  • Business Structure and Organisation | Franchising
  • Change Management | Change issues for business
  • Change Management | Managing change effectively
  • Change Management | Sources of change
  • Change Management | Strategic planning
  • Communication | Effective communication models
  • Communication | Technology and communication
  • Employee Relations | Proactive employee relations
  • Human Resource Management | Employee Motivation
  • Management Skills | Communication
  • Management Skills | Managing in a team environment
  • Management Skills | Role of leadership
  • Management Skills | Role of planning
  • Marketing | Product development
  • Operations Management | Facilities design and layout
  • Operations Management | High-end technology based operations systems
  • Project management | The project lifecycle
From: Edition 7

The role of professional accounting in business

Accountability, transparency and ethics in business and financial reporting have become more important than ever in the wake of the global financial crisis. Professional accountants are crucial business advisors, helping protect the interests of stakeholders in every industry. The Institute of Chartered Accountants is at the forefront of promoting and ensuring ethical business practice, with Chartered Accountants working in every industry and sector.

As a result of reading the Case Study, students should be able to:

  • Explain the various roles of Chartered Accountants in business and how they contribute to business 
  • Understand different types of financial reports and how they are used
  • Discuss the importance of professional ethics and accountability and how Chartered Accountants and the Institute contribute to this.

Introduction

The Institute is the professional body for Chartered Accountants in Australia and represents 70,000 current and future business leaders working both here and overseas. It has around 57,000 members and almost 13,000 graduates undertaking the Chartered Accountants Program while they work.

Professional accounting in business

Chartered Accountants are in high demand in every type of business, and also within a variety of different roles. They are business leaders, decision-makers, technical analysts and influential advisors in industry and commerce.

Effective financial reporting

Financial reports are used by relevant stakeholders, e.g. owners, managers, investors, or analysts, to find the information they need to understand and manage the business, e.g. some may be used to accompany a tax return, to lodge on a public register such as the stock exchange, for banks, or to help with effective management of the business.

Creating accountability in business

Ethics are the cornerstone of a Chartered Accountant’s profession. Clear, visible and honest reporting allows company stakeholders to make informed decisions about the business and ensures businesses are meeting relevant legal and regulatory standards.

Conclusion

Chartered Accounting offers a varied and exciting career, with opportunities available throughout the world of business. Accountants are essential to the success and sustainability of modern business, and of public confidence in the markets.

To download this case study as a free pdf, click the button below:

 

Introduction

The Institute is the professional body for Chartered Accountants in Australia and represents 70,000 current and future business leaders working both here and overseas. It has around 57,000 members and almost 13,000 graduates undertaking the Chartered Accountants Program while they work.

The Institute has an important role in promoting financial integrity in society, through its leadership of the profession and its advocacy work in influencing policy and regulatory frameworks in Australia and abroad. Chartered Accountants serve the public interest through their obligation to uphold the profession’s high standards of duty and service in every area of business and the economy, including finance, commerce, public practice, government, academia and the not-for-profit sector.

 

The Institute is part of the Global Accounting Alliance, giving members access to an 800,000-strong network of professionals and leaders worldwide.

 

Chartered Accountants - the role of professional accounting in business

 

 

 

 

Professional accounting in business

Chartered Accountants are in high demand in every type of business, and also within a variety of different roles. They are business leaders, decision-makers, technical analysts and influential advisors in industry and commerce.

What do Chartered Accountants do?

Chartered Accountants specialise in many different fields and industries. These include:

 

Advisory and Consultancy – Helping clients improve and manage risk to maintain and develop the performance of the business. It can include advising on mergers and acquisitions, or assessing operational and strategic risks.

 

Audit – The external analysis of an organisation’s financial information and accounts to test that controls are in place to prevent fraud and errors.

 

Business Services – Assisting organisations with all their accounting requirements to achieve financial goals, and developing strategies for business growth.

 

 

Corporate Recovery – Working with organisations suffering financial hardship to identify problems and implement solutions to restore profitability.

 

Financial Planning – Providing clients with a detailed and tailored strategy to enable them to meet their financial goals.

 

Forensic Accountancy – Identifying and tracking fraud by utilising accounting, auditing and investigative skills.

 

Insolvency – Managing the receivership process including the liquidation of assets of an organisation or inpidual due to financial hardship and bankruptcy.

 

Management Accountancy – Using accounting information to make business decisions within an organisation, in order to develop and improve overall business performance.

 

Stockbroking – Buying and selling shares and other securities through market makers on behalf of investors.

 

Tax – Preparing corporate and personal income tax statements, and providing strategies for minimising risks through the understanding of tax law.

Where can you work as a Chartered Accountant?

International professional services – These are global accounting firms made up of offices and networks around the world, including the 4 largest, Deloitte, Ernst & Young, KPMG and PwC. These firms work in multiple disciplines.

 

Mid-tier accounting organisations – Mid-tier firms typically have six or more partners and can offer the opportunity to specialise in specific industry areas. Careers in these firms are well defined, with great development opportunities both in Australia and overseas.

 

Small-to-medium accounting organisations – Firms with one to six partners and a more local sphere of work, offering a wide variety of industry areas, promotion opportunities and the ability to build strong, lasting client relationships.

 

Large corporates – Chartered Accountants can be found in all areas of business, working for companies as varied as Sony Music, Vodafone and Macquarie Bank.

 

Public sector – The public sector offers interesting and rewarding career opportunities, ranging from large federal government departments and agencies to state level public sector organisations.

 

Not-for-profit – Chartered Accountants are also essential to the not-forprofit/ charity sector. Accountants work in organisations such as Oxfam, Unicef and RSPCA to make a difference in today’s world.

 

 

 

 

 

Effective financial reporting

Financial reports are used by relevant stakeholders, e.g. owners, managers, investors, or analysts, to find the information they need to understand and manage the business, e.g. some may be used to accompany a tax return, to lodge on a public register such as the stock exchange, for banks, or to help with effective management of the business.

 

 

 

 

 

 

 

 

 

Creating accountability in business

Ethics are the cornerstone of a Chartered Accountant’s profession. Clear, visible and honest reporting allows company stakeholders to make informed decisions about the business and ensures businesses are meeting relevant legal and regulatory standards. Public confidence in business was severely dented by the effects of the global financial crisis (GFC), leading to increased scrutiny of companies’ governance and decisions. As a result, professional accounting is more than ever seen as important to business, with accountants operating as trusted advisors who champion financial integrity and sound financial management.

The Accounting Professional & Ethical Standards Board (APESB) is an independent national body that sets the code of ethics and professional standards for Australia’s three professional accounting bodies (including the Institute). The Code of Ethics is based on fundamental principles of integrity, objectivity, professional competence, due care, confidentiality and professional behaviour. It provides guidance to accountants in the event of an ethical dilemma, and encourages ethical behaviour as a priority of the profession. Under the provisions of the Code, Chartered Accountants are obliged to always act in the public interest.

 

 

The professional standards also require members to adhere to technical standards on financial reporting and auditing set by the Australian Accounting Standards Board and the Auditing and Assurance Standards Board. The Institute consults with all three national standard setting bodies on developing and reviewing standards, to ensure they meet with best practice globally and keep up with regulatory and legal developments.

 

The Institute has a dedicated disciplinary pision, Professional Conduct, which is responsible for upholding the ethical, professional and technical standards of the Chartered Accounting profession. The Institute can take disciplinary action against members who contravene the Code of Ethics or professional or technical standards. Institute members take a module on ethics and their application in business, as the final part of their professional Chartered Accountants qualification. This module is essential in helping candidates develop their ability to deliver sound professional judgment in business.

 

 

 

 

Conclusion

Chartered Accounting offers a varied and exciting career, with opportunities available throughout the world of business. Accountants are essential to the success and sustainability of modern business, and of public confidence in the markets. Ethics lie at the heart of business sustainability with clear and transparent accountability of financial reporting crucial to a company’s success and stakeholder confidence. The Institute is at the forefront of ensuring professional standards are developed in line with the changing business world, and promoting best practice and the highest standards among its members.

 

 

Learning Area(s):
  • Business Environment | Stakeholders
  • Careers | Choosing a career
  • Ethics and Social Responsibility | Corporate governance
  • Ethics and Social Responsibility | Risk Management
  • Financial Reports and Analysis | Analysis of financial reports and information
  • Financial Reports and Analysis | Ethical/legal accounting
  • Financial Reports and Analysis | Types of financial reports
From: Edition 7

Learning Areas

Learning Area(s):

Commission a case study for your business

If your company or organisation would like to be part of Australia & New Zealand's best case study resource, apply for a case study online or phone us on 
02 4991 2874 in Australia and 0800 990 999 in New Zealand.

What's New?

 

New Edition 7 case studies available now!

Buy a printed copy of Edition 7Buy a printed copy of Edition 7 case studies.

Subscribe nowSubscribe now to get access to over 80 additional case studies and support material.

Teaching Resources

Learning Resources

Useful Resources
Need to contact a teaching association?
Or get ideas for class?
Check out our useful links.

Teaching Hints & Strategies
Share your lesson plans with other
professionals or search for ideas here.
 

Log in / log out