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Mambourin Organization’s Operational Costs Issues Report

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Updated: Apr 21st, 2021

Executive Summary

Mambourin is an organization that was created to assist disabled people. The organization is currently facing challenges about escalating operational costs, and a solution to these problems is required. A critical analysis of the macro-environmental factors affecting the organization was done to evaluate strategies to improve the performance and reduce operational costs. The population of Western Melbourne has been growing in the last decade, and this trend is assumed to be maintained shortly. Most of the region residents are young people, while the elderly form a small percentage of the total population.

The concern for the environment has intensified, and people care a lot about the impact of their activities on the environment. The region’s culture is not diversified because people in the area are mainly from Australia and a few from the UK. The organization is affected by political and regulatory factors because the government funds it. The living standards of the people in the country are acceptable, and generally, the country’s economy is favorable.

The industry is attractive, and many opportunities are available for exploitation. However, there exist weaknesses and threats that may reduce the performance of the organization. Special programs such as volunteer programs will be required to be introduced to support the organization. Some projects, such as the free offer of the garden for private and public events, will be needed to be introduced to attract more customers into the organization. The management of Mambourin should make the organization as attractive as possible to make it profitable.

Introduction / Business definition

Mambourin was founded to create jobs, provide education, and provide training services to the disabled to improve their capabilities. The main projects of the organization are the Café and Sensory Garden, which are based in Werribee. The two projects encounter operational problems in the current moments, and there is a need to develop strategies to overcome the difficulties. Also, it has been observed that the organization faces extreme competition from other organizations in the area due to its strategic location and facilities.

To complete this project, secondary data will be collected from official websites, journals, and the data that the clients provided. Other similar organizations will be researched to learn how they operate their business and compare it with that of the Mambourin. Confidentiality will be maintained when carrying out the project to collect all the information required for completing the project. The main aim of the research will be to identify the leading cause of problems facing the organization.

The project is estimated to take ten weeks starting from 17th August 2010 and will end on 1st November 2010. There will be three phases for the project. Phase one will take two weeks; phase two will take six weeks during phase six weeks, and the last phase will take two weeks. The first phase will involve analyzing and discussing the situations being faced at the institution currently, investigating the external environments, SWOT analysis, and creating a proper understanding of the organization’s activities, potential customers, the strategies and culture of the organization. Phase two will involve identifying solutions to the current situation experienced in the organization.

This will be achieved by finding and attracting funds from sponsors, getting free advertising in the local newspaper, re-negotiating yellow pages adverts at a reduced price, create a partnership with Parks Victoria as a way of attracting more visitors, functioning rooms to businesses locally, offering outdoor wedding services and other private parties as well as organizing special regular events for the disabled people located around Victoria.

Phase two will also involve operations such as initiating volunteer programs, which will reduce the costs of operating the organization, establishing partnerships with businesses such as Werribee Mansion, Werribee Zoo, and others, and leasing part of the garden for the exhibition. The last phase will involve preparing and delivering the final report and posters, preparing the presentation, and finally presenting the entire project.

Scope of Project and limitations

Scope of the project

The project’s scope is to obtain the minimum losses possible by introducing strategies that lead to low costs. There have been high operational and maintenance costs at the organization, which has been unbearable for the management. In recent years, it has become unprofitable to operate the café and garden. The expenses of running the garden have escalated while the revenues collected are inadequate to cover-up the costs incurred.

Limitations of the project

  • The café is located in an area with few people, hence attracting a few customers.
  • The café was initially funded by collecting donations from the community. This restricts the closure of the café without the consent of all the people involved in the initial funding process.
  • The Council does not allow more café signage to be displayed in the location of the business.
  • The budget of the business has been a significant challenge.
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IvyPanda. (2021) 'Mambourin Organization's Operational Costs Issues'. 21 April.

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