Documente Academic
Documente Profesional
Documente Cultură
0 | Page
Executive Summary
Red Cliff
Wines
The following report is based on Red Cliff Wines. Red Cliff Wines was recently
purchased by Sally Spoljaric and in that time we have already addressed some of the
sales issues that were flawed. By also coming up with future strategies and focussing
these, sales are already on the improve which is allowing the focus to go forward onto
the future growth and plans.
Already Red Cliff Wines has approached other boutique wineries in the area with the
proposal to hold their wines and sell them collectively and share the costs. Red Cliff
Wines is also proposing to include in its new E-Commerce platform a website where it
will also the other boutique wineries wines for sale. By having this proposal it was
identified that the Information System platform is not adequate and this report
addresses this current deficiency, looks at what Information System is adequate and
how it will be implemented. It will also look as to how this can be integrated with the ECommerce site and how Social Media can help promote the business.
The report looks at the first stage project of building a Restaurant / Cellar Door and
implementing the Information System and the E-Commerce. This would help to
strengthen Red Cliff Wines in not only the local region but also further as the local area
of Mildura and it surrounds has approximately 300,000 visitors per year.
1 | Page
Red Cliff
Wines
Table of Contents
Executive Summary
iii Infrastructure
1. Power
1.1.1 What business Information System will you implement in your business
7
1.1.2 What are the benefits of your proposed information system for your business
7
1.1.3 What skills will you and your staff require to use and support this system
10
1.3.1 Using Microsoft Access, create an Entity Relationship Diagram of a database for
your business
10
1.3.2 Create a business process map that uses information from this database
1.4 Social Computing
11
12
1.4.1 What social networking strategies will you use for your business
1.4.2 Why are these strategies important
1.5 E-business and E-commerce
12
14
16
18
1.6.1 Using Microsoft Excel, create an example of an accounting report that you would
use in your business
18
1.6.2 Explain the importance of this report and how this will be used in your
organisation
19
2 | Page
Red Cliff
Wines
22
2.1 Recommendations 22
3.0 References
23
4.0 Bibliography 24
Figures
Figure 1: Picture of Mildura Rural City by local government map
10
11
16
17
Figure 13: Income Statement for the Year Ending 30 June 2015
Figure 14: Vine Planting and approximate Sales from Yield 20
Figure 15: Wage & Salaries Estimates 20
Figure 16: Work Breakdown Structure 21
Figure 17: Gantt Project Chart
21
3 | Page
19
15
Red Cliff
Wines
4 | Page
Red Cliff
Wines
Mildura is located in North Western Victoria approximately 542km from Melbourne and
395km from Adelaide and is a known region for its food and produce. Red Cliff is only a
ten minute drive from Mildura and hence why it is in such a good location. The
business will be developed not only to develop its own boutique wines, but to also help
other boutique wineries in the area by having a storage facility which they can all share
and sell their wines out collectively at a competitive price compared to the larger
wineries of the region. We will also look at future plans of a cellar door and restaurant
at the facility to further not only expose the brands of the wines, but to also look at
capturing some of the market demands of the area.
5 | Page
Red Cliff
Wines
ii Local Industry
Mildura is known for been a major producer of Citrus fruits, wine and grape production.
There are many farms and wineries within the region and the other main boost for the
economy in the region is Tourism. The tourism market is mainly domestic and is
estimate to have approximately 300,000 visitors to the region and hence why Mildura
boasts the third busiest airport within Victoria. There has been a push in recent times
to target the tourism market particularly as a food lovers destination which works hand
in hand with the wineries within the area. The local area is well serviced by means of
facilities for the community, but more needs to be done to help the farmers within the
region all of the time rather than some of the time which is what has been happening
within the region in the past. This is why we believe that there is also a market for a
cellar door and a restaurant to capture the tourists that come within the region.
By also been in this region it also means that if Red Cliff Wines expands in the manner
that the business owners hope it would then there are plenty of purchase opportunities
of other wineries in the area that they will be able to expand to also.
iii Infrastructure
1. Power
Power for the region is received through the national grid and there are numerous
substations within the region which allows a high reliability of the network. There
is a Concentrator Power Station located in the region which is a 1.5 megawatt
demonstration plant. It was proposed to be expanded to a 100 megawatt
concentrated photovoltaic solar PV system, but this was abandoned in August
2014 due to government changes in policy and reduced investment opportunities
(Milduraregion.com.au, 2015).
6 | Page
Red Cliff
Wines
iv Transport Services
Mildura is unique in the fact that it has had no passenger rail services since 1993,
however is serviced by its own airport which is serviced by QANTASLink, Regional
Express (Rex) and Virgin Australia. It does however have services for rail to both
Bendigo and Swan Hill and then coaches to Mildura for the rest of the distance
from Melbourne. There is also a Greyhound service which operates from Sydney
(NSW) to Canberra (ACT) then to Mildura and final stop is Adelaide (SA) and in
reverse (Tripadvisor.com.au, 2015).
By road Mildura is accessed by the Calder Highway to Melbourne via Bendigo. It
is roughly around 6-7 hour drive. To Adelaide it is accessed by the Sturt Highway
and is around 4-5 hour drive. Mildura is also the closest major regional town to
Broken Hill which is around 3 and a half hours away. The transportation services
will be particularly important to ensure deliveries are made without delays to the
other capital cities and accurate lead times are given.
v Red Cliff Wines Proposal
The opportunity to provide not only Mildura but also the surrounding communities in
South Australia and outback New South Wales a facility which other boutique wineries in
the area can use to hold their wines prior to selling out. By having one larger facility
that a number of boutique wineries can use, it will reduce the costs to all of the
business in the area by been able to share costs on warehousing and staff that would
be required. By doing this it would also then make the prices that they sell their wines
out to be more competitive to the larger wineries that are in the market. The selling of
the wines can be done not only to individual customers, but also to restaurants and
bottle shops. The individual customers can be targeted by having a good online shop
presence which can tie in with any information systems that the company has set up.
By also expanding the business to include a Restaurant and Cellar Door it will also allow
people to try the wines either in a Wine Tasting session or in conjunction with a meal. It
will be targeted to have the Restaurant / Cellar Door to be opened in late November
2015 to be operating over the holiday season. By doing both of these things quickly it
7 | Page
Red Cliff
Wines
8 | Page
Red Cliff
Wines
1.1.2 What are the benefits of your proposed information system for
your business?
The benefits of the proposed FAIS System will not only benefit Red Cliff Wines but also
the other boutique wineries within the area. It will allow tracking of inventory and the
value of the inventory that is currently on hand, for Red Cliff Wines it will allow to see
the profitability of the business and also what it will need to charge out to the other
business in proportion to their share of the storage facility. For Red Cliff Wines it will
also allow proper input of sales and purchases made, and all transactions in a singular
place rather than by a manual system.
By having this system it will mean less errors in what stock is currently been held not
only by Red Cliff Wines but also by the other boutique wineries. Accurate charging out
of wines to clients / customers, accurate supplier invoices inputted ensuring all
accounts are settled on time, and most importantly able to track revenue and expenses
of the business and the worth of the business at any point in time. With also linking this
in to the e-commerce side it will allow constant updating of the website to show the
accurate stock holding so that customers have confidence in ordering the online site.
1.1.3 What skills will you and your staff require to use and support this
system?
Skills that would be required to support this system is to have at least one staff member
that is proficient with the use of Accounting based systems. If they have knowledge on
this then they should be able to train anyone else successfully in this. The support can
be by further training of staff as necessary and by support from the software provider if
necessary.
The training is important to ensure that all systems operate properly to give accurate
reports not only for the Business Owners of Mildura Wines but to the other boutique
wineries holding their stocks at Red Cliff Wines and their sales. As the sales will be
9 | Page
Red Cliff
Wines
Product
HP 15-P222AX
16
hours
1
Quickbooks plus
10 | P a g e
Cost per
unit
$
1,488.00
$
80.00
$
2,494.89
$
278.00
$
210.00
Total
Cost
$
7,440.00
$
1,280.00
$
2,494.89
$
1,390.00
$
1,050.00
$
13,654.8
9
Red Cliff
Wines
This section uses Porters Value Chain Model for competitive advantage to explain the
competitive advantage of Red Cliff Wines and its plans. Additionally, this section
provides a SWOT analysis of the strengths and weaknesses opportunities and threats
for developing a Red Cliff Wines within the region.
1.2.1 Using Porter's Value Chain Model, what strategies will you use in your
business for competitive advantage?
11 | P a g e
Red Cliff
Wines
This ERD outlines the software purchases that clients of our business purchase and who
we get the supply from, details of the client, details of the product, details of the
shipper, and the details of the order. This will integrate through the CRM system and
also to the Accounting Information System also which has an inventory tracker. As in
this case it will be based on the process of the sales order process it will not have any
manufacturing process, as Red Cliff Wines does not manufacture based on sales orders,
but what it feels are the best products to sell.
12 | P a g e
Red Cliff
Wines
1.3.2 Create a business process map that uses information from this database.
Include a transcript for the process map
The business process map below for Red Cliff Wines shows the manufacturer and
receiving of the wines from the other Wineries in the area, to the customer ordering
process and then the despatch of the item. This business process map expands upon
the information system, as at this stage the information system cannot measure the
amount of grapes grown and then picked prior to been fermented and then bottled.
The Information system will pick up at the point of where the Wines are bottled and
then will be imputed into the inventory at this stage.
13 | P a g e
Red Cliff
Wines
1.4.1 What social networking strategies will you use for your business?
The largest food and wine festival in the region is held in Mildura on the weekend prior
to the Melbourne Cup (Artsmildura.com.au, 2015). This ensures that the region will
have maximum amount of tourists in the weekend as a lot of people that live in
Melbourne also take the Monday off the day before Melbourne Cup Day to create a long
weekend. This Melbourne Cup weekend apart from Christmas and Easter would be the
busiest in tourists in the area for the year. As the festival is well established (running
for over 35 years), there is little doubt that it will not be going ahead anytime soon. It is
important not only to be part of the advertising for this weekend, but also to involve it
within our own social networking strategies.
Other strategies are to post in regards to what is happening within our own winery by
posting on the social media platforms and also posting graphic photos. These can be
14 | P a g e
Red Cliff
Wines
15 | P a g e
Red Cliff
Wines
16 | P a g e
Red Cliff
Wines
The strategies of social networking are important to create not only brand recognition
but also location recognition. There are studies done to support that generally boutique
wines are brought more by the local communities rather than those from distances. We
want to be able to tap into the market so someone from Broome lets say visits Mildura
comes across our wines and through having good social networking strategies, they are
able to find Red Cliff Wines and then purchase online hence breaking this cycle.
The social networking that would be most important to the age group that we would be
targeting is Facebook. Statistics show that Facebook is the Social Medium used by older
users as per the diagram below (Koetsier, 2012).
Red Cliff
Wines
For real time messages Twitter is very instant and used moderately by both the younger
and older generations which is also shown in the Diagram above. Twitter will be able to
be used particularly once the Cellar Door and Restaurant are up to promote one off
deals that are available to people to buy or use on the actual day.
18 | P a g e
Red Cliff
Wines
Red Cliff Wines will be including a website with current stocks of not only of their
boutique wines but also the other wineries in the area that they will be in association
with. This not only strengthens the position of Red Cliff Wines but also the other smaller
wineries in the area, hence providing more employment opportunities going forward
into the future. The e-commerce platform Red Cliff Wines will be using is e.pages which
is a shopping cart and website builder. The main advantage with this is that the
application links in with the Quickbooks system automating the process and hence also
keeping accurate stock levels from the website point of view. It also has the ability to
have a customer put their details in through the website and this will also be
automatically updated in Quickbooks. It also has the ability to link in to other future
information systems that could be introduced to Red Cliff Wines in the future as an
example shipping trackers. The other bonus for this package also is that is a website
builder so you will be able to have this done alongside with setting up the e-commerce
side of the business seamlessly rather than having to pay for an expensive website
developer anytime you wish to update your site. By implementing these e-commerce
strategies backed up by the social media push, this should ensure that the brand names
of Red Cliff Wines and the other boutique wineries will gain much more exposure and
purchase of their products creating a more stable level of income that would be
available if only concentrating solely on the tourism / local market without these
strategies in place.
19 | P a g e
Red Cliff
Wines
1.5.2 What are the ethical issues you need to consider when implementing
these solutions?
The ethical issues that need to be considered by Red Cliff Wines when implementing the
e-business and e-commerce solutions to Red Cliff Wines are Taxes, and Privacy threats
(Theft of Information), and Poor Service been the main ones (Small Business Chron.com, 2015). This includes how these issues are handled and that they are
complying with government regulations and legislations where applicable. It also goes
further in ensuring that the business relationship between Red Cliff Wines and their
customers is one of a trusting relationship that can be built upon and further to
enhance the business as it grows.
1. Taxes are the responsibility of the website owner who in this case is the business
Red Cliff Wines. As with any other business whether it is online or traditional
bricks and mortar, the business is responsible for the collection and payment of
GST to the Federal Government. GST is currently applied at a rate of 10% of the
price of the purchase sold. So if a bottle is priced at $10.00 then the sell price
including GST would be $11.00 with the $1.00 been the GST portion. This will
then be paid through the appropriate BAS statement that is due either Monthly,
20 | P a g e
Red Cliff
Wines
21 | P a g e
Red Cliff
Wines
70,000
80,000
$
800,000
150,000
50,000
100,000
Gross Profit
700,000
300,000
1,000,0
00
995
9,850
18,700
14,300
8,800
549
3,216
6,543
585,000
7,500
13,200
Total Expenses
668,653
NET PROFIT
331,347
Figure 13: Income Statement for the Year Ending 30 June 2015
22 | P a g e
Red Cliff
Wines
No of Staff
Owner
Winemakers
Admin Staff
Warehouse
Casual Staff
Total
$
100,000
$
159,000
$
100,000
$
50,000
$
176,000
$
585,000
1.6.2 Explain the importance of this report and how this will be used in your
organisation.
The importance of the Income Statement shown in Figure 12 as it will help to look at the
profitability of the business and how much money will be available for investment into
the future endeavours of the business. It also allows further analysis of the business
profitability and margins which when particularly looking for future investment from
either banks or companies will be important. It helps analyse areas of the business in
which there decencies appearing and endeavouring to look at solutions prior to it
becoming a bigger issue. Between this report and the Balance Sheet there are a
number of different Ratios that you can use to assess the profitability of the business,
23 | P a g e
Red Cliff
Wines
24 | P a g e
Red Cliff
Wines
The work breakdown structure shows the goals for opening the restaurant prior to the
Christmas period this year and implementing both the Information System to the
business and the Social Media strategies. This is all based on the first year in really
pushing the wine sales out there which has been shown in Figure 13 and then investing
the appropriate funds to be able to build the Restaurant and Cellar Door to attract more
visitors to the winery and to look to purchase our wines and the other wineries involved.
25 | P a g e
2.0 Conclusion
Red Cliff
Wines
This report has outlined all of the proposed / current changes that Red Cliff Wines is
currently undertaken. This includes the introduction of an information system, a
stronger Social Media platform, an E-Commerce shop which can also be linked to the
information system which ensures accurate stock levels for customers ordering.
The report also focusses on the further growth / development of Red Cliff Wines by
building a Restaurant / Cellar Door for the winery to attract the tourism market that
Mildura and its surrounds currently has. By doing this it will give more brand
recognition to all of the wineries held at Red Cliff Wines and hence support the growth
of local jobs in the community. The focus has been and will be on employing staff only
from the local area to support the local community.
The report specifically targeted the information system, e-commerce targeting and the
build of the Restaurant / Cellar Door project. Other future projects mentioned at this
stage will be looked at in further analysis once the current expansion is complete.
2.1 Recommendations
The recommendation is to cap the investment to the Information System, E-Commerce
and Restaurant / Cellar Door at $750,000 from loans (either from bank or investors),
and $250,000 which will come from the retained profits and owner investment. Once
the development of this is completed and developed that then other projects can be
undertaken which could include more community involvement with training /
development courses in both Wine Making and Apprentice Chef Courses.
It could even be further developed to expand Red Cliff Wines into other regional areas
that are similar around Australia and implement the same processes undertaken in the
projects that have currently been undertaken.
26 | P a g e
3.1 References
Red Cliff
Wines
Artsmildura.com.au,. (2015). Arts Mildura - Jazz Food and Wine Festival. Retrieved 30
May 2015, from http://www.artsmildura.com.au/Jazz-Food-and-Wine-Festival/HOME.aspx
Koetsier, J. (2012). Social media demographics 2012: 24 sites including Twitter,
Facebook, and LinkedIn. VentureBeat. Retrieved 30 May 2015, from
http://venturebeat.com/2012/08/22/social-media-demographics-stats-2012/
Mildura.vic.gov.au,. (2015). Our Region. Retrieved 30 May 2015, from
http://www.mildura.vic.gov.au/Our-Region
Mildura.vic.gov.au,. (2015). Demographics & Statistics. Retrieved 30 May 2015, from
http://www.mildura.vic.gov.au/Our-Region/Demographics-Statistics
Milduraregion.com.au,. (2015). Retrieved 30 May 2015, from
http://www.milduraregion.com.au/PDFs/2009-EconomicProfile/14_Utility_Infrastructure.aspx
Small Business - Chron.com,. (2015). The Ethical Problems In E-Business. Retrieved 30
May 2015, from http://smallbusiness.chron.com/ethical-problems-ebusiness-62037.html
Tripadvisor.com.au,. (2015). Mildura: Transportation - TripAdvisor. Retrieved 30 May
2015, from http://www.tripadvisor.com.au/Travel-g255355c138663/Mildura:Australia:Transportation.html
Wentworth.nsw.gov.au,. (2015). About the Wentworth Shire. Retrieved 30 May 2015,
from http://www.wentworth.nsw.gov.au/about.php
Winespectator.com,. (2015). How many bottles of wine are made from 1 acre of
vineyard? | Ask Dr. Vinny | Wine Spectator. Retrieved 30 May 2015, from
http://www.winespectator.com/drvinny/show/id/5350
27 | P a g e
4.0 Bibliography
Red Cliff
Wines
Red Cliff
Wines
Murrayville.com.au,. (2015).
Murrayville Community - Welcome.
Retrieved 30 May 2015, from http://www.murrayville.com.au
29 | P a g e