Objective: To provide you with an opportunity to implement, monitor and modify contingency plans as required to maintain financial objectives.

Case Study: Susies Sweet Shop

Susies Sweet Shop is a small retail shop on a busy road in the outer eastern suburbs of Melbourne. Operating since 2004, it has a commercial kitchen at the rear in which most of the sweets are produced. Some sweets are also brought in from a supplier in the UK. It is staffed by a team of 4 which includes 2 customer service staff and 2 confectionary chefs. The business is owned by Susie herself and whilst she no longer works in the store, she handles all the financial management, business planning and marketing.

Identify 3 contingencies that Susie should consider.

Recently her supplier in the UK has emailed her to let her know that all prices will be going up by 3% next year.

How should Susie plan for this? How should she implement her contingency plans? How will she know if her plan is successful? What modifications might be needed?

(Minimum 200 words)