Appendix 1 -Scenario

Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers in the domestic Australian market.

The senior management structure of the company appears below.

Person

Position

Michelle YeocChief Executive Officer (CEO)

Tom Copeland. Managing Director

John Black Chief Financial Officer (CFO)

Stuart LaRoux. Operations General Manager

Pat Roberts. Senior Accountant

Sam Gellar. Sales General Manager

Charles Pierce. Production Manager

Holly Burke. HR Manager

According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are:

?poor sales due to economic downturn - sale income

?increases in expenses such as wage expenses - expenses

In addition to Australian operations, the company is considering manufacturing overseas

to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.

Please complete Contingency plan template: Risks related to moving overseas and diversifying.

Contingency Plan Company name: Big Red Bicycle Pty Ltd Person developing the plan: Name: Risks related to moving overseas and diversifying Risk Identifies