Assessment Cover Sheet

An assignment cover sheet needs to be included with each assignment. Student to complete all details clearly

Unit Name: BSBMGT617Develop and implement a business plan

Student Informa.on

Student ID: ____________________

Student Name: _________________________________________________________________________

Student Email: _____________________________________ Phone No: ___________________________

Course Name: ___________________________________________________________________________

Unit Code & Name: _______________________________________________________________________

Submission Due Date: ______/_________/_________ Submi<ed on: ______/_________/_________

Student Declara>on:
I declare that:
No part of this assessment has been copied from another person’s work, except where documents or work is
listed / referenced.
No part of this assessment has been wri<en for me by another person.

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To be filled out by the student – Student retain this slip

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Unit Summary
Assessment Resource | BSBMGT617

This unit describes the skills and knowledge required to run a business operation and covers the steps
required to develop and implement a business plan.

It applies to individuals who are running an organisation or who take a senior role in determining the effective
functioning and success of the organisation. As such, they may oversee the work of a number of teams and
other managers.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

Prerequisite Units
Nil

ASSESSMENT SUMMARY / COVERSHEET

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Instructions for assessor: This form is to be completed by the assessor and used as a final record of student competency. All student
submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students
file. If student did not submit their assessment on due date they will be marked as NC on the bases of SDS.

Instructions for record keeping officer: Student results are not to be entered onto the Student Database unless all relevant paperwork
is completed and attached to this form. Ensure the assessment has been checked and stamped.

Instruction for students: Please note that you are required to keep a copy of your assessment.

Student Name: __________________________________________

Student Declaration: I declare that the work
submitted is my own, and has not been copied Student ID No: __________________________________________
or plagiarised from any person or source. I
have read and understood the Plagiarism and Signature: ________________________
Complaints and appeals policy and I am
aware that I will receive the outcome of this Submission Date: ______________________
work via face to face or via email. Received by: _________________________
I acknowledge that I am required to keep a
copy of my assessment. Signature: ____________________________

Unit Code: BSBMGT617

Develop and implement a business plan

Unit Title:

Result
C = Competent
Please attach the following documentation to this form NC- Not Competent
SDS=Student Did not
Submit

Assessment 1 ❑Checklist attached C | NC | SDS

Assessment 2 ❑Checklist attached C | NC | SDS

Assessment 3 ❑Checklist attached C | NC | SDS

Assessment 4 ❑ Written task (Test) attached C | NC | SDS

Final Assessment Result for this unit C / NC

Assessor Declaration:

I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided
appropriate feedback to the student. I have informed the student with their right to appeal the assessment decision by:
Assessor Name: ____________________ Signature: _______________________Date: ____/_____/_____

Administrative use only

Entered onto Student Management Database ❑________________

Date Initials

ASSESSMENT 1 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements.
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Student instructions –Develop business plan

You will demonstrate the skills and knowledge required to research, analyse and develop a business plan.

There are two parts to this assessment.

Part A
Use the information provided in the case study ‘Fast Track Couriers’ (see Appendix 1) to develop a business plan
to support the company’s strategic and operational goals. Develop a plan for communicating the business plan to
relevant parties.
Part B
Review the completed business plan (see Appendix 2). Analyse the strengths and weaknesses of the plan, and
prepare a written report of your findings.

Procedure
Part A
1. Review the information in the case study ‘Fast Track Couriers’ (see Appendix 1)
2. Analyse and interpret the current business environment, goals and objectives embedded in the case study.
3. Consult with your assessor (assume the assessor is a key stakeholder) and discuss and agree upon
performance objectives and measures.
4. Document a business plan to assist the organisation to achieve its goals.
5. Document a plan for communicating the business plan to all relevant parties.
6. Present the business plan to your assessor (assume the assessor is a key stakeholder).

Part B
Business Plan 1:
1. Read the business plan ‘Quality Training’ (see Appendix 2)
2. Compare and contrast the business plan against the criteria for effective business plans, as described in
your workbook or other reference materials.
3. Compare the strengths and weaknesses of the business plan.
4. Complete a written report, detailing a critical analysis of the strengths and weaknesses of the business
plan.

Specifications

You must:
● for Part A:
○ submit a completed business plan
○ consult with key stakeholder (assessor) and document the outcomes of the consultation
○ submit a communication plan
● for Part B:
○ submit a completed report, analysing the strengths and weaknesses of the business plan.

Your assessor will be looking for:

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● in Part A:
○ the business plan includes:
– Table of contents
– Executive summary
– Introduction
– Description of the business (background)
– Business products and services
– Marketing activity – the market
– Business operations – productivity and performance targets for key result areas (in
consultation with key stakeholders); include financial and non-financial performance
measures; and detail resource requirements, including human resources, capital equipment
and other resources required to achieve business goals
– Management and organisational structure
– Proposal
– Financial background - trading to date; and forecasts
– Risks (risk analysis) - include a section on how you will ensure skilled labour is available to
implement the plan, such as a recruitment or training strategy; Licensing; and include any
permits or licences required
– Conclusion
○ Communication strategy: Produce a report or document which covers the following areas:
– The process you used to develop the business plan
– Who are the key stakeholders?
– What information will each person (position) require?
– What are the relevant timeframes?
– How will you communicate this information?
– How will you ensure their understanding of their role in implementing the business plan?
● In Part B:
○ The report is properly formatted and logically structured.
○ Identify relevant strengths and weaknesses of the plan, including discussion on the following areas:
– Compare and contrast with text book structure and layout.
– Comment on quality and relevance of information.
– Comment on quality of information, i.e. did the business plan demonstrate adequate research
on competition market conditions?
– Comment on quantity of information – was there sufficient information to determine the likely
success of the business in accordance with its performance measures?
– Were the performance measures specific and realistic?
– Was the document well set out, easily understood and pitched at an appropriate level for the
reader?

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Note:
The work you submit must be your own. Students
havetheresponsibilitytomaintainthehighestethicalstandardsof academicintegrity in theirwork.
Academicismconductbystudentsinexaminationsorinotherformsof assessmentisunacceptable.
Priortosubmittinganassessmenteachstudentwillberequiredtocompletean assessment
coversheetwhichwillask themtosignadeclarationtosaytheyhavenotplagiarisedandthat
theyhavereadandunderstoodthe UED Plagiarismpolicy.
All work submitted will be checked to ensure authenticity.
Students found to have plagiarised will be forced to re-submit the assessment and be required to pay the re-
submission fee of $350 per unit of competency and may be subject to disciplinary action.

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Appendix 1: Fast Track Couriers

General Information
History
Fast Track Couriers is a courier company operating in New South Wales for the last 15 years. Their primary
business function is delivering medium to large size packages across metropolitan Sydney. The business has a
good reputation in the marketplace for reliability and value for money.
After a slow start entering the competitive delivery market, Fast Track Couriers has built a solid reputation over
the past 12 years, and this has been reflected in their growth and profit margins.
Fast Track Couriers primarily targets small to medium-sized business which make up 80% of their customer base.
They are limited by their geographic location, as they currently do not deliver outside of the Sydney metropolitan
area.
The company has been marketed through direct sales, telephone, internet listings and mail-outs. Through a
program of telephone follow-up to ensure customers’ ongoing satisfaction with the business, Fast Track Couriers
has an admirable 87% retention rate for existing customers.
Although sales and profits have increased each year by an average of 5%, the owners are looking to move
forward by delivering to regional areas in NSW.
Organisational structure
The organisation is family owned, with three family members acting as a Management Board and responsible for
approving all business decisions.
● Managing Director – responsible for daily operational management decisions.
● Logistics Manager – responsible for the scheduling of the trucks and drivers.
● 20 truck drivers.
● 5 office support employees – responsible for administration, accounts, human resources and sales.

Management
Team

Managing
Director

Logistics Administratio Human Finance Sales

Manager n Officer Resources Manager Manager

Truck Drivers Accounts

x 20 Clerk

Strategic plan goals

The organisation’s strategic goal is to grow the business and increase business profits over the next three years
by expanding delivery routes to include regional NSW.
Operational plan goals
Fast Track Couriers will:
● commence deliveries to regional NSW within 12 months
● increase sales by 40% in the next three years.
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Background
The owners of the business are not risk takers. They are aware that their ongoing success is the result of a small,
experienced team, close personal ties with clients and a reputation for reliable, low cost service. Moving forward,
their vision for the company is to retain those strengths and core values through any expansion process.
The strategic and operational plans were developed as a result of external market research, indicating a shortage
of delivery organisations providing services to regional NSW towns. Fast Track Couriers were looking for their
next growth opportunity and saw that this was an ideal opportunity to be seized upon.
It was also felt that the company was now sufficiently stable and experienced, and in a financial position to
expand the business without risk to their current financial stability or reputation.
Reports from the Sales Manager indicated that contracts have been lost because some clients want to engage a
courier who can deliver to their regional offices, in particular Newcastle, Wollongong and the Central West. Fast
Track is currently unable to meet this demand and therefore some potential clients have been lost. This became a
motive to expand operations for both financial and customer service reasons.

Proposed strategy
Fast Track Couriers currently allocates two drivers per truck to ensure that drivers are able to load and unload
heavy packages. The strategy going forward is to remove the need for two drivers per truck by installing an
automatic lift gate on the back of each truck, at a cost of $10,000 per truck. This will mean that only one driver is
needed per truck, as no heavy lifting will be required.
This will allow Fast Track to purchase 10 new trucks and use the existing drivers for regional routes.
Each new truck will cost $60,000 (including installation of an automatic lift gate). The money to purchase the
trucks will be borrowed from the bank on a business loan.

Financial information
Annual sales
Current sales Estimated sales (Yr 1)
$17 million $22 million

Annual net profit

Current net profit Estimated net profit
$1.9 million $3.2 million

Increased costs
Loan repayments Operating costs (fuel,
servicing, etc.)
+$200,000 per annum +$2.2 million

Administrative costs Labour costs

+$100,000 Nil

General information
The company communicates with employees via email for head office employees, and a printed monthly
newsletter for drivers. The company provides information regarding policies and procedures through employee
manuals that are kept in each truck. Office-based staff can access copies of these manuals in the office.

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All trucks are fitted with a GPS system to assist drivers in navigating to each pick-up and drop-off location. Trucks
are also assigned a PDA that provides drivers with the details of each delivery, and records when a job starts and
finishes. The data from this device is sent back to head office to complete productivity reporting. When this device
was introduced, drivers were not happy as they felt it meant that the organisation did not trust them to manually
record the time spent on each job. Many drivers also resented having to learn how to use the device and thought
it was a waste of time.
Head office employees work very closely together as a coherent and motivated team. They are generally positive
about the organisational direction and respond well to change.
Drivers are currently happy with the work environment, as they enjoy working as part of a two-man team. The
Logistics Manager typically leaves the drivers alone to do their job as this is what seems to make them happy. In
the past, supervisors and HR have tried to encourage drivers to participate in organisational activities, but this
was not received well –the drivers complained and asked not to be involved. The drivers’ view is that their team is
the two-man driver team, and they seem to like the comforts of that working environment.
Drivers are typically negative about change. They have, in the past, done their best to block any changes from
being implemented, even going to the lengths of threatening strike action and getting the Union involved to assist
in resolving the issue.
Summary of current employee populations
Head office employees
● covered under individual contracts
● salary range $32,000 – $75,000 annum
● small team of mainly male employees, with a wide range of ages
● many opportunities to participate in learning and development programs due to management support,
however, have shown little interest
● high employee engagement scores, citing team work and opportunities have contributed to the company’s
success as real motivators.

Drivers
● covered by an award
● salary $45,000 per annum
● heavily unionised
● employee demographics are all male employees, aged 25–65.
● Few opportunities to participate in learning and development programs due to being on the road, however,
have shown very little to no interest
● Large number of workplace injuries due to heavy lifting
● Low employee engagement scores, citing pay as an issue
● Currently experiencing low turnover
● History of industrial disputes regarding pay and other change initiatives

Appendix 2: Business Plan – Quality Training

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Business Plan

QUALITY TRAINING

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Table of Contents

1.0 Executive summary ........................................................................................12

1.1 Objectives .................................................................................................12

1.2 Mission ......................................................................................................13

1.3 Keys to success ........................................................................................13

2.0 Company structure .........................................................................................13

2.1 Company ownership .................................................................................13

2.3 Company locations and facilities ..............................................................13

3.0 Services ..........................................................................................................14

3.1 National recognised qualifications ............................................................14

3.2 Stand-alone (Fee for Service training) ......................................................14

4.0 Competitive comparison .................................................................................15

4.1 Analysis of competitors ............................................................................15

4.2 Risks and opportunities ............................................................................16

4.3 Strategies to overcome perceived threats and weaknesses ....................17

5.0 Market Analysis Summary ..............................................................................17

5.1 Market trends ............................................................................................18

5.2 Marketing strategy ....................................................................................18

5.3 Marketing materials ..................................................................................18

6.0 Pricing strategy ...............................................................................................19

7.0 Review of business plan .................................................................................20

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1.0 Executive summary

Quality Training has been operating as a Registered Training Organisation for 12 months.
Following is a summary of the main points of this plan.
● The objectives of Quality Training are to generate a profit, grow at a challenging and manageable rate and
to be a good corporate citizen.
● The mission of Quality Training is to exceed our customers’ expectations by providing them with effective
training and development services, relevant to their needs and in line with national quality standards.
● The keys to success for Quality Training are marketing and networking, responsiveness and quality, and
generating repeat customers and word -of-mouth business.
● The initial primary service offered will be nationally recognised qualifications Certificate IV in Business
(Frontline Management) and Certificate IV in Workplace Assessment and Training. We will also offer Fee
for Service training, tailored to individual client needs.
● Quality Training will explore opportunities to extend its scope to maximize business opportunities and meet
customer needs.
● The local market for this business is growing and is open to new service providers who can offer superior
individualised services.
● An initial financial analysis of the viability of this venture shows that Quality Training is well positioned to
maximise on profit opportunities, has few ongoing capital expenses and has sufficient funds to negate the
need to go into debt. Operating costs are minimal due to the owner/operator style of operation.
● During 2006–2007, the intention will be to use opportunities gained through existing client networks and
scope extension to grow the business and increase trainee numbers.
● In 2005 (for 2006), Quality Training will apply for New Employee government funding to remain competitive
with other RTO’s.
In conclusion, as shown in the highlights chart below, this plan projects rapid growth and moderate net profits over
the next three years. Implementing this plan will ensure that Quality Training quickly becomes a profitable venture
for the owners.

1.1 Objectives
The objectives of this business plan are:
● To provide a written guide for the ongoing management of this training and development business; a
strategic framework for developing a comprehensive tactical marketing plan.
● The intended audience includes the owners of this business and representatives from the State Training
Authority.
● The scope of this plan is to provide detailed projections for the current plan year, and for the following two
years.

The objectives of Quality Training are:

● Profit – To achieve a net profit of $100,000 in the next financial year and a 25% increase in profit each
succeeding year.
● Growth – To grow the business at a rate that is both challenging and manageable, leading the market with
innovation and adaptability. Growth from 16 trainees in year ending 2005 to 300 trainees in year ending
2007.
● Citizenship – To be an intellectual and social asset to the community by networking with community
organisations such as the Chamber of Commerce, and offering services to charitable organisations when
required.
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1.2 Mission
● Purpose – Quality Training exists to provide high quality, relevant training and development solutions which
make a discernable difference to the client’s business productivity and performance. It also provides
students with nationally recognised qualifications (where applicable).
● Vision – By providing quality training and excellent customer service, Quality Training will satisfy and
expand its customer base, allowing the business to maintain profitability.
● Mission – The short-term objective is to start this company quickly and inexpensively, with a minimum of
debt. The long-term objective is to grow the company into a stable and profitable entity that the owners can
easily and comfortably manage.
● Marketing slogan – ‘Quality Training – Training that makes a difference!’.

1.3 Keys to success

The keys to success for Quality Training are:
● Marketing and networking – identifying and following up potential clients.
● Quality – ensuring client satisfaction through superior training materials, training delivery and follow-up.
● Consultation – effective training needs analysis and client consultation, to ensure the right training is
delivered to the right people to meet the client’s needs.
● Relationships – developing loyal repeat customers.
● Follow-up – monitoring student performance on the job, during and after training, to ensure effective
transfer of skills and knowledge.
● Growth – assessing client needs and obtaining appropriate training solutions by extending the scope of
registration, or by developing suitable stand-alone/Fee for Service training packages.

2.0 Company structure

Quality Training will be a start-up venture with the following characteristics:
● Quality Training is a Pty Ltd Company with the two directors who manage and own the company.
● Quality Training will initially operate from a home office to keep overhead costs low.
● Quality Training has no current debt.

2.1 Company ownership

● Quality Training is owned jointly by Michael Chapman and Elliot Berkley.
● Financial status
● Profit and Loss Statement for end of financial year 2005 is attached.

2.3 Company locations and facilities

This is a home office venture, located in the study area of the owners’ existing home.
● Computer facilities – stand-alone desktop computer installed.
● Telephone – one line currently serves the location.
● Mobile phones for each Director.
● Data projector.
● Laptop with internet access.
● Broadband installed for internet and email functions.
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● Utilities provided for are to be charged to the business as a percentage of

home usage.

3.0 Services
Quality Training will offer the following qualifications/training courses to its
business clients:

3.1 National recognised qualifications

● Certificate IV in Business (Frontline Management)
● Certificate II In Retail Operations
● Certificate III in Retail Supervision
● Certificate III in Business Administration
● Certificate III in Transport and Distribution (pending registration at 15/1/06)
● WorkCover OHS Committee Training (pending registration at 15/1/06).

3.2 Stand-alone (Fee for Service training)

● Manual Handling
● Time Management
● Presentation Skills
● Recruitment and Selection
● Customer Service
● Selling Skills
● Personal Effectiveness Program.

3.3 Training needs analysis

● Quality Training will conduct training needs analysis and develop specific training materials and packages
at the request of clients.

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4.0 Competitive comparison

Quality Training have identified three classes of competition in the training and development services area:
● In-house training departments/personnel – usually employed by larger companies that can afford the fixed
costs of employees.
● Public training providers (TAFE) – well established and respected, offering public courses and qualifications
in a broad range of subject areas.
● Private registered training organisations – offering similar training and qualifications to Quality Training, and
targeting the same client base.

4.1 Analysis of competitors

● Quality Training does not intend to target large organisations, which tend to have their own in-house
training departments.
● While TAFE offers the same qualifications and is a highly recognised training provider, it does not offer
flexible work-based training and delivery, which will be the focus of Quality Training’s approach.
● Private RTO’s will provide the greatest threat to Quality Training. They are often national providers and, as
such, can provide services to businesses with franchises or branches in other states.
● The local phone book lists seven training companies in the Penrith area. These are not large providers,
with the exception of two community colleges. There is a large TAFE. Many of the training organisations in
the area are quite specialised, e.g. Retail Skills Training and Computer Training. These are not perceived
as a threat to the success of Quality Training entering the local market.

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4.2 Risks and opportunities

Risks (Threats) Advantages (Opportunities)

New business New business
● unknown in the market place ● provide an alternative to clients
unhappy with their current provider
● no references from former clients.
● clean record – no history.

Small business Small business

● owner-operated ● flexible and adaptable to clients needs
● limited resources (staff/equipment) ● low start-up costs
● only operating in NSW ● personalised service – training is
conducted by the people who own the
● lack of funding for large marketing
company and who meet with the
campaign
clients. This is a level of commitment
● targeting local area initially – limited other training organisations may not
client base. have.

Target local area

● able to visit trainees and clients more
regularly
● reduces costs to the business
● knowledge of the local area and ability
to market our business as ‘local’
● understanding of the cultural
influences
● knowledge of local political situation
and potential areas of growth.
Competitive market place Competitive market place
● many RTO’s and training ● as above.
organisations competing for business.
Funding Funding
● reliance on government funding ● market training as a business benefit
(which is attractive to clients). not an opportunity to attract incentives
● offer a range of training services
outside of traineeships.

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4.3 Strategies to overcome perceived threats and weaknesses

● Network with friends and acquaintances to source business opportunities.
● Develop strong marketing materials, including a website so that we can ‘hit the ground running’ on receipt
of registration.
● Look for opportunities to deliver non-accredited training prior to becoming established as an RTO. This will
bring in some additional income to offset costs, and will assist in developing our client relationships.
● Timeframe expenses – purchase materials and equipment when we need them rather than upfront.
● Be flexible in our working policies and procedures. Think about contracting staff as required (rather than
employing them to save costs) to eliminate the need for larger office space.
● Stay up-to-date with relevant legislation and industry requirements. Review websites regularly. Subscribe
to industry publications and attend meetings or workshops when possible. Anticipate changes and act
quickly to avoid issues with compliance to AQTF standards.
● Look for opportunities to develop mutually-beneficial partnerships with other RTO’s or businesses. By
keeping the business diversified and offering a variety of training and development solutions, the risk of
losing Government funding for traineeships will be minimised.

5.0 Market Analysis Summary

Quality Training has identified potential clients from a number of industries. Because the training offered is
focused on management, people or supervisory skills, the nature of the client’s industry is not particularly
relevant.
We have identified the following businesses/industries as our key focus in terms
of marketing:
● A logical segmentation breaks the market down into the following:
○ Industrial
○ Manufacturing
○ Retail
○ Service providers.
● Because the larger retailers (i.e. Coles and Woolworths) have internal training departments, our focus will
be on the independents, such as IGA supermarkets, who have the autonomy to select their own training
providers.
● In the industrial and manufacturing industries, we will focus on medium-sized businesses employing
between 20 and 200 employees. Within Penrith there are a number of ‘industrial parks’, and so targeting
business in these areas will become a key focus.
● While there are a number of competitors in the local area, they seem to be widely specialised and sized,
leaving ample opportunity for Quality Training to create and expand a niche in the chosen market segment.

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5.1 Market trends

Worth noting is the growth trend for this market. With continuing low unemployment rates and competition for staff
growing amongst businesses, many employers view training and development, and the offering of qualifications to
their employees, as a way of attracting and keeping staff. This trend is likely to continue, as:
● population growth is decreasing
● people are looking to retire earlier than in previous decades
● the number of people joining the workforce each year is declining.
Schools are emphasising the importance of gaining recognised qualifications to their students. Many schools are
now offering vocational subjects which will provide students with a nationally recognised qualification upon leaving
(VET in schools). Employers are finding that, in order to attract high quality applicants, they need to offer them
opportunities to continue with their education. Traineeships are an effective and inexpensive way to do this.
Another trend which Quality Training intends to take advantage of is the requirement for businesses to comply
with State and Federal legislation in the areas of occupational health and safety, harassment, discrimination and
unfair dismissal. Many small to medium businesses do not have in-house human resources facilities and, as
such, need to train line management in understanding and complying with this legislation. Quality Training will
offer this training in addition to other nationally recognised traineeships.

5.2 Marketing strategy

Quality Training will utilise a number of strategies in its marketing plan.
● Personal contacts – Quality Training will network with friends to identify potential business opportunities.
This will be done informally through the mailing of brochures and information, with a follow-up by phone.
This method has already proven successful, with a number of potential clients identified and interested in
utilising the services of Quality Training once we are properly accredited.
● Cold calling – Quality Training will identify potential clients through the phone book, and by driving through
the industrial estates to obtain business names and addresses. Quality Training will then call and forward
information to these businesses in the hope of arranging a personal meeting.
● Internet – Quality Training will develop a website advertising its services to the general public.
● Yellow Pages – Quality Training will advertise in the Yellow Pages.
● Networking – Quality Training will join the local Chamber of Commerce, to promote its services and develop
relationships with local businesses.

5.3 Marketing materials

● Quality Training will have a brochure professionally produced, outlining our mission, values and the training
services we provide.
● Business cards will also be produced and handed to friends and business acquaintances.
● Quality Training will also maintain a professional website which will be updated regularly.

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6.0 Pricing strategy

Quality Training holds a competitive advantage over a number of its larger rivals. Owner operated and with low
overheads, we are able to charge less for our services, whilst maintaining the same quality of training and
generating a profit.
Individual fee structures will be negotiated with each client, based on a number of
factors including:
● requirement to conduct needs analysis and/or develop materials
● length of course and number of participants
● one-off course vs. ongoing contract
● Government funding available
● ability to train at the client’s site vs. the need to hire training facilities
● cost of printing training materials
● market rates.

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7.0 Review of business plan

This business plan is formulated on assumptions, particularly with regard to financial forecasting.
Consequently, it is the intention of Quality Training to review this business plan on an annual basis.
The review will focus on:
● Effectiveness of marketing strategy:
○ number of trainees registered
○ number of courses scheduled
○ number of client enquiries
○ feedback on marketing materials/brochures.
● Financial management:
○ expenses actual to projection
○ income actual to projection
○ adjustments to budget required.
● Strategy review:
○ Are we targeting the correct market segment?
○ Are we capitalising on networking opportunities?
○ Are we under/over-resourced (staff, equipment, etc.)?
○ Is the business financially viable?
○ Do we need to make any changes to our scope of registration in order to meet customer needs?
○ Are we meeting our goals/mission (client and student feedback on
training effectiveness)?
○ What adjustments need to be made to the business to ensure success?

ASSESSMENT 2 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements.

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Student instructions –Monitor performance

In this assessment, you are required demonstrate the skills and knowledge required to monitor the performance
of a business plan.

For this task, you will monitor the performance of a business plan, through testing and refining of the performance
measurement system, and report on progress of the business plan in a timely and effective manner.

Procedure
1. Review the completed business plan from Assessment Task 1.
2. Identify the key performance objectives.
3. For each key performance objective:
a. Produce a report to capture and test the performance measure.
4. Write a brief report on how you would test the performance measurement systems, including:
a. Acceptable levels of variance to planned objectives (where applicable).
b. The timeframe for each report – how frequently reports will be completed.
c. What benchmarking will be used.
d. Who the key stakeholder will be for each report.

Specifications
You must submit:
● a report on capturing performance data for each performance measure
● a written report explaining how the performance measurement system will be implemented and tested, and
how system/product failures and variances to the business will be reported, to whom and when.

Your assessor will be looking for:

● in your performance measurement system:
○ one report for each performance measure
○ covers financial and non-financial performance measures
○ report should be pitched at the appropriate level for the recipient
○ should be presented in a readable and logical format
○ should include graphs, charts or other methods of presenting data
● in your report:
○ timeframes should allow appropriate action to be taken (where necessary)
○ identify key stakeholders who will require the information
○ describe the benchmarking used to determine suitable performance measures, including tolerance
levels and variances to plan
○ document how system failures, product failures and variances to the business will be reported, to
whom and when.

Note:
The work you submit must be your own.
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Studentshavetheresponsibilitytomaintainthehighestethicalstandardsof academicintegrityin theirwork.

Academicmisconductbystudentsinexaminationsorinotherformsof assessmentisunacceptable.
Priortosubmittinganassessmenteachstudentwillberequiredtocompletean assessment
coversheetwhich will askthemtosignadeclarationtosaytheyhavenotplagiarisedandthat
theyhavereadandunderstoodtheWITPlagiarismpolicy.
All work submitted will be checked to ensure authenticity.
Students found to have plagiarised will be forced to re-submit the assessment and be required to pay the re-
submission fee of $350 per unit of competency and may be subject to disciplinary action.

ASSESSMENT 3 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements.

Student instructions – Respond to performance data

In this assessment, you are required to demonstrate the skills and knowledge required to analyse performance
reports, review performance indicators and take appropriate action to address systems failures and variances to
the business plan.
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In this assessment task, you will analyse performance data and reports against planned objectives, implement
strategies to refine performance indicators, and address coaching and training needs. You are also required to
develop and recommend processes for the review of systems, procedures and work methods.

Procedure
1. Review the case study ‘B&A Toy Warehouse’.
2. Critically analyse the information and write a brief report, responding to each question in the case study.

Specifications
You must submit:
● a written report that addresses all questions in the case study.

Your assessor will be looking for:

● Question 1:
○ After completing a comparison of current performance against desired performance levels, identify
the corrective actions required to achieve the business plan goal of improving warehouse productivity
by 10%. What type of corrective actions do you recommend for each performance improvement (e.g.
interim, adaptive, corrective, preventative or contingency)?
● Question 2:
○ Critically analyse the performance against planned objectives.
○ Identify areas of non-performance.
○ Report on systems failures which contributed to these results.
○ Consider failures in communication, planning, reporting and training.
○ Review performance indicators and refine if necessary.
○ Comment on the suitability of performance indicators and what changes might be required to achieve
organisational goals.
● Question 3:
○ Recommend performance improvement strategies.
○ Identify and redefine performance measures, if necessary.
○ Document a training and development strategy to address the performance of underperforming
individuals or teams.
○ Identify development needs of individuals and groups.
○ Identify training/coaching needs.
○ Present in a development plan.
● Question 4:
○ Develop a strategy for reviewing systems processes and work methods at B&A Toy Warehouse.
○ Describe how the implementation of your strategy would lead to continuous improvement.

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Case study – B&A Toy Warehouse

You have been provided with the following information pertaining to the operation of B&A Toy Warehouse.
Review and analyse the information provided, and answer each of the five questions in this case study.

Evaluating performance measures

After identifying the performance measures, Tony evaluated performance by comparing current performance
against the desired level of performance. This allowed him to determine areas for improvement to assist the
warehouse in achieving its productivity goal.

Area Current performance Performance target to achieve

10% productivity improvement
Time 80 minutes 72 minutes
Average order processing
time
Cost $200.00 $180.00
Average cost to process an
order
Quality 10% Less than 1%
Error rate
Production 50 55
Average number of orders
processed per day

Questions
Question 1
After completing a comparison of current performance against desired performance levels, identify the corrective
actions required to achieve the business plan goal of improving warehouse productivity by 10%. What type of
corrective actions do you recommend for each performance improvement (e.g. interim, adaptive, corrective,
preventative or contingency)?
Area Required corrective action
Time
Average order processing
time

Cost
Average cost to process an
order

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Quality
Error rate

Production
Average number of orders
processed per day

Analyse systems and processes

After implementing his strategy to monitor and evaluate performance, Tony has identified the areas that require
corrective action. Tony knows that in order to do this, he must first complete a more detailed analysis of the
warehouse systems and processes, and identify the specific steps required to improve productivity.
Systems
Two years ago, the warehouse implemented a custom-built electronic warehouse management system (WMS)
which has had an enormous impact on productivity. When completing his review, Tony asks the following
questions to ensure that the system effectively supports warehouse operations:
● Has the warehouse achieved the productivity goals that were to be delivered by this system?
● What is the occurrence rate of the system being out of order and impacting on the packing of orders?
● How long does it take to train new staff members to use the system?
● How do the employees who use the system rate its ability in assisting them to process customer orders
efficiently?

Tony also uses the system to generate a series of reports that allow him to analyse warehouse systems and
processes. The reports details:
● number of orders packed per hour, per day
● time required to pack each order
● number of packers per order
● number of boxes per order.

Tony also documents the process (from order receipt to dispatch) to assist with his analysis, and to help him to
understand the exact process followed in packing an order (see the following page).

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Order
received by
email from
customer

Order entered into Order printed and

WMS by provided to Packing
Administration team Supervisor

YES Order sent to Priority Order processed

Is order for Customer Packing within 1 hour of
a Priority team receipt
Customer?

NO
Order processed and
packed
Order placed in order
packing queue

Order processed and

packed

Order sent to
distribution team

Distribution team
wrap and label order
and send to transport
dock

Transport dock team

load order on truck to Customer
deliver to customer receives
order

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Tony also completes the following SWOT analysis to assist with his review.

Warehouse order processing systems and process

Strengths: Weaknesses:
● Warehouse Management System ● Absenteeism.
automates administrative ● Warehouse layout – stock difficult to
components of the process. access.
● Simple process for packing and ● Warehouse supervisors are all junior and
distributing customer orders. new to management roles; they require
● Good orientation and induction intensive coaching and support from
programs for new staff, to ensure Warehouse Manager.
they get up to speed quickly.
Opportunities: Threats:
● Warehouse extension to facilitate ● Forklift licence requirements mean that
better layout. not all staff can drive a forklift.
● Preferred supplier arrangement to ● The above requirements also require
be established with temporary staff to have time away from packing
workforce supplier, to ensure floor to attend training.
provision of temporary labour. ● Industrial action from Union members
due to lack of licensed forklift drivers.

Performance measures and assessment tools and techniques

At the commencement of the performance year, Tony tasked his management team to complete balanced
scorecards for all warehouse team members, and record the key result areas (KRAs) and key performance
indicators (KPIs) for each role. This was done to ensure that all warehouse employees understood the
performance measures for their role.
The scorecards were last accessed two months ago to complete annual
performance reviews.
Tony contacted the Human Resource Manager to obtain a report detailing the KRA’s, KPI’s and performance
ratings for all warehouse employees. He wants to evaluate the performance review process and the
effectiveness of these measures in assisting the warehouse to achieve its operational plan goals.
Upon reviewing the report provided by Human Resources, Tony discovered:
● Only 80% of employees have documented KRA’s and KPI’s – 20% of employees do not know what
performance level is expected of them.
● KPI’s are not aligned with warehouse goals – employees are not clear on what the warehouse is trying to
achieve.
● Majority of KPI’s are not written using SMART format – they are not providing employees with clear
expectations on what needs to be achieved and by when.
Performance ratings indicate that 50% of employees exceeded performance expectations for the last
performance year, which is inconsistent with warehouse

● end-of-year results (the warehouse did not achieve its operational plan goals last performance year).
Performance reports
As Warehouse Manager, Tony is tasked with the following human resource KRA’s:

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Warehouse
Human Resources Scorecard
Key Result Area Metric
Absenteeism 3%
Turnover 8%
Long service leave liability $2.0 million
Annual leave liability $1.5 million
Employee engagement 85%
Employee attended training sessions 45

Warehouse Human Resources Monthly Performance Report

Report name Human Resources Monthly Report

Department Warehouse
Period 201X Year to Date

Key Result Area Target Actual

Absenteeism 3% 3.9%
Turnover 8% 9.2%
Long service leave liability $2.0 million $1.8 million
Annual leave liability $1.5 million $1.2 million
Employee engagement 85% 83%
Employee attended training 45 32
sessions

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Identifying trends
To assist Tony in understanding the warehouse operations, and to identify where he can make improvements to
achieve performance objectives and measures, Tony graphs the number of orders processed and absenteeism
for each month over the last year.

Orders processed

1600
1400
No. orders processed

1200
1000
800
600
400
200
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month

Absenteeism

6.00%
5.00%
4.00%
3.00%
%

2.00%
1.00%
0.00%
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month

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Question 2
1. Critically analyse the performance against planned objectives.
a. Identify areas of non-performance.
2. Report on systems failures which contributed to these results.
a. Consider failures in communication, planning, reporting and training.
3. Review performance indicators and refine if necessary.
a. Comment on the suitability of performance indicators and what changes might be required to achieve
organisational goals.

Question 3
1. Recommend performance improvement strategies.
2. Identify and redefine performance measures, if necessary.
3. Document a training and development strategy to address the performance of underperforming individuals
or teams.
a. Identify development needs of individuals and groups.
b. Identify training/coaching needs.
c. Present in a development plan.

Question 4
1. Develop a strategy for reviewing systems processes and work methods at B&A Toy Warehouse.
2. Describe how the implementation of your strategy would lead to continuous improvement.

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ASSESSMENT4 – WRITTEN ASSESSMENT

Please refer to the instructions below regarding completing this assessment
Written Assessment
Please make sure that you:
• Write clearly
• Answer all questions
• Use a pen. Assessments written in pencil will not be accepted.
• Ask your assessor if you do not understand a question. Whist your assessor cannot tell you the answer, he/she may be
able to re-word the question for you
• Do not cheat or plagiarise the work of others. Anyone caught cheating will automatically be marked Not Competent
for this unit. There are NO EXCEPTIONS to this rule.

Questions

1 Describe 6 different marketing strategies you could implement in your new business.

2 What code of practice relates to your chosen industry?

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3 List 4 OHS issues that must be included in a business plan or risk analysis

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4 What could be included in a production / operations plan? (List 4)

5 What specialist services could you utilise when developing a business plan? (List 4)

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6 What is normally included in a typical business plan?

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7 What should you consider when formulating your business goals?

8 What should be identified in your marketing plan?

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9 What should be considered when developing an operational plan?

10 What should be included in your financial plan?

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11 Why is it important to develop a business plan?

12 What are the principles of Business planning?

13 Define 3 real benefits of planning?

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14 Describe the following principles

Equal Opportunity

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ethical principles

codes of practice

privacy laws
Victoria

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occupational health
and safety

Employer rights and

responsibilities

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anti-discrimination

Provide detailed
explanation of 4
different relevant
legislation

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