Background: In a 2018 article titled “Nightmare for RFG Franchisees and shareholders is just getting started.” by Adele Ferguson (The Sydney Morning Herald, 13 March 2018) she states: “RFG has...

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Background:
In a 2018 article titled “Nightmare for RFG Franchisees and shareholders is just getting started.” by Adele Ferguson (The Sydney Morning Herald, 13 March 2018) she states:
“RFG has presided over a deeply flawed business model in an industry that has lost its way thanks to soft regulation and a franchise code that clearly isn’t working…
In a nutshell, RFG has put profits before franchisees and it is now paying the price…
Instead of fulfilling a dream to own their own business, franchisees were gouged every way they turned. Franchising fees, royalties, training, marketing fund fees and paying top dollar to RFG for supplies left them with little or no money to pay themselves of their workers…”
Required:
Assume you are a management consultant for the Australian Shareholders’ Association and have been tasked with preparing a submission to a Parliamentary Inquiry into Food Franchising. Your submission should focus on the following:
a) Applying arguments developed from an agency theory approach, discuss whether the RFG business model considered the interests of shareholders. You should review the RFG business model and refer to RFG’s financial statements to find relevant examples to support your analysis; and
) In the context of the managerial
anch of stakeholder theory, identify RFG’s key stakeholders discuss whether the RFG business model considered their interest, providing examples to justify your response.
c) Provide recommendations on how existing regulation could be enhanced to better protect all stakeholders.
MAA310 Accounting and Society
Assessment Task 1 Marking ru
ic – Written submission T3 2018
    Marking Criteria
    50
    N
    P
    C
    D
    HD
    Executive Summary
    /5
    0-2.0
    2.5
    3.0
    3.5
    4.0-5.0
    A co
ectly structured executive summary is included in the submission.
    
    The submission does not include an executive summary, or the submission includes an executive summary, but it does not provide a summary of the contents of the submission.
    The submission includes an executive summary, but it includes very limited information on the content of the submission.
    The submission includes an
executive summary that logically summarises some of the contents of the submission.
    The submission includes an executive summary that logically and coherently summarises all aspects of the submission, but also includes i
elevant information or extraneous detail.
    The submission includes an executive summary that logically and coherently summarises all aspects of the submission.
    Introduction
    /5
    0-2.0
    2.5
    3.0
    3.5
    4.0-5.0
    The purpose and background of the submission is
iefly introduced.

    
    Little or no evidence of the purpose of the submission or background of RFG;
    The purpose of the submission and background are present but limited.
    The purpose of the submission and background are generally clear and appropriate.
    The purpose of the submission and background are clear and appropriate.
    A sophisticated awareness of the purpose of the submission and background is evident.

    Response to task
    /25
    0-12.0
     XXXXXXXXXX
     XXXXXXXXXX
     XXXXXXXXXX
     XXXXXXXXXX
    a) Identifies and discusses the RFG business model and evaluate whether the management acts in the best interest of shareholders, applying arguments developed from agency theory approach.
    /10
    0 - 4.5
    5 - 5.5
    6 - 6.5
    7 - 7.5
    8 - 10
    
    
    RFG business model is not identified;
Agency theory is not defined. The submission does not evaluate the impacts of the cu
ent business model on RFG’s shareholders applying an agency theory approach.
    RFG business model is identified but incomplete. The submission defines agency theory. The submission does not evaluate the impacts of the cu
ent business model on RFG’s shareholders applying an agency theory approach.
    RFG business model is identified. Agency theory is defined. The submission evaluates at least one impact of the cu
ent business model on RFG’s shareholders. Application of the agency theory is not linked to the business model or the links to the theory are vague.
    RFG business model is identified. Agency theory is defined. The submission evaluates two impacts of the cu
ent business model on RFG’s shareholders. Application of the agency theory is linked to the business model makes general and consistent links between the identified arguments and the theory.
    RFG business model is identified. Agency theory is defined. The submission evaluates all the impacts of the cu
ent business model on RFG’s shareholders. Application of the agency theory is explicitly, logically, consistently and co
ectly linked to the business model.
    
    15
    
    
    
    
    
    b) Evaluates the RFG business model and the impacts of this model applying arguments developed from a stakeholder theory approach.
(Note: There is no requirement to repeat the RFG business model)
    /15
    0 – 7.5
    8 - 9
     XXXXXXXXXX
    12 -13
    14 -15
    
    
    Stakeholder theory is not defined. No identification of RFG stakeholders. The submission does not evaluate the impacts of the RFG business model applying a stakeholder theory approach.
    Stakeholder theory is defined and at least one (1) of the stakeholders are identified. The submission does not evaluate the impacts on the RFG business model applying the stakeholder theory approach.
    Stakeholder theory is defined and at least two (2) of the stakeholders are identified. The submission evaluates the impacts on the RFG business model applying the stakeholder theory, but the arguments are not linked to the theory or the links to the theory are vague.
    Stakeholder theory is defined, and all of the stakeholders are identified. The submission evaluates the impacts on the RFG business model applying the stakeholder theory
    Stakeholder theory is defined, and all the stakeholders are identified. The submission evaluates the impacts on the RFG business model applying the stakeholder theory explicitly, logically, consistently and co
ectly links the identified arguments to stakeholder theory. Stakeholder theory is precisely defined.
    Conclusion
    /5
    0-2.0
    2.5
    3.0
    3.5
    4.0-5.0
    Conclude and reflect whether the RFG business model is in the best interests of shareholders and other stakeholders.

    
    No conclusion is drawn for the submission, or a mere summarization of discussion.
    Ambiguous conclusion is drawn for the submission. No further reflection on the issue.
    A clear conclusion is drawn however without any further reflection on the issue.
    A clear conclusion is drawn with some reflection on the issue.
    A clear conclusion is drawn with excellent reflection on the issue.
    Submission communication and referencing
    /10
    0-4.5
    5.0-5.5
    6.0-6.5
    7.0-7.5
     XXXXXXXXXX
    Appropriately structured response Appropriate use of references (at least three (3)
academic journal articles)
Co
ect referencing and citing
Appropriate grammar, and language
    
    Little or no evidence of relevant research and/or poor use and acknowledgement of sources. Texts selected may be inappropriate and/or poorly integrated and cited.
Referencing may be uniformly poor. There are numerous
E
ors and inaccuracies in written expression.
    Evidence of basic research, but some sources may be inappropriate or i
elevant. Use of readings to support position may be inconsistent. Citation and referencing is attempted but may be faulty. Written expression may be of variable standard and have significant grammatical e
ors.
    Academic and professional sources are used appropriately to support position, but they may be limited in scope and quality. There are some e
ors in citation and referencing. Expression is generally grammatically clear and uses a professional tone.
    Well selected academic and professional sources that shows evidence of wide reading are well-utilised to support argument. Citation and referencing is generally appropriate and accurate.
Expression is clear and grammatically co
ect, and professional in tone with only an occasional e
or.
    Clear evidence of a wide
variety of quality academic and professional reading. Skilful engagement and deployment of sources to enrich argument. Accurate citation and referencing.
Information is clearly organised and expressed in concise, grammatically accurate and engaging language with an appropriate professional style.
    Total marks
    50
    
    
    
    
    
    Contribution to final result
    20
Answered Same DayNov 26, 2020MAA310Deakin University

Solution

Csassignment answered on Nov 27 2020
51 Votes
Retail food group
Executive summary
This assignment is focused on discussion of business model of retail food group. The group adopted the flawed business model and face huge crises. The company has ignored their franchisees and put profits before them. In this assignment the agency theory approach has been discussed and it has been discussed whether the business model of company considered the shareholders interest or not. The financial statement of the company has also been reviewed. Further in context of the managerial
anch of stakeholder theory the major stakeholders of the company has been identified and it has been discussed whether the company has considered the interest of them. At last recommendation will be provided about the ways of enhancing the existing regulations for better protecting the stakeholders.
Contents
Executive summary    1
Introduction    4
Agency theory approach    4
Analysis of RFG business model    5
Managerial
anch of stakeholder theory    7
Identification of key stakeholders of RGF    8
Discussion of whether the business model of RGF have considered the interest of their stakeholders    8
Recommendation on how the existing regulation can be enhanced for better protecting the stakeholders    9
Conclusion    11
References    11
Introduction
The retail food group (commonly known as RFG) is an Australian beverage and food company. It is the largest multi
and retail food franchise owner in Australia. They are the emerging leader in the dairy processing, food services, wholesale bakery sector and they also supply high quality coffee products. Recently the company has adopted the flawed business model in which they put the profits before franchise which is why they are now paying the price.
The company has reported the 88 million loss for six months. The problems which are faced by the company are not only because of the high rents and tough trading conditions. They adopted the flawed business model because of the franchise code and soft regulation. For many years the company has been able to paper over problem by purchasing the new franchise
ands and they neglect their older
ands. They pitch themselves as the franchise amalgamator which is why they are now paying the price. The food quality which was sold by them to the franchise deteriorated and they increase the price which leads to reduction in revenue. Hundreds of stores were closed because they cannot find the buyers. More than 300 franchises have signed up for the class action against the banister law firm which tells about the frustration among the franchisee. Hundreds of franchisee was financially destroyed after signing up to the company
and.
Agency theory approach
The agency theory is concerned with the relationships between the principles and agents in the business. This theory deals with resolving problems which can occur in the agency relationships because of the different aversion levels to risk and unaligned goals (Ballwieser, et. al., 2012). In finance the general agency relationship occurs between the executives of the company and the shareholders. The potential problems can occur because of the several problems such as the principle is not aware of the agent’s actions or in the situation when the principle is prohibited by resources from getting the required information (Mustapha and Che Ahmad, 2011).
Analysis of RFG business model
The business model of RGF focuses more on increasing the profits by neglecting their franchisee which has negative impact on the overall financial position of the organization. The $170 billion franchise industry faces huge crises, including the loss of $88 million in the six months, reduction of dividend and closure of more than 200 stores. This depicts that the interest of the shareholders has not been completely considered by the retail food group.
Given below is the financial report of the RGF business group which depicts the financial loss faced by the company because of the flawed business model:
From the above income statement it has been observed that the gross income growth of the...
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