BSBMGT617 Develop And Implement A Business Plan
Mar 13,23Question:
TASK 1
Instructions to students:
2. Discuss the purpose of the business planning process.
3. Discuss three areas that a business planning process may address.
4. Discuss key steps in developing a business plan.
5. Outline key stakeholders who may be involved in business planning.
6. Discuss the purpose of a business vision.
7. Discuss the purpose of a SWOT analysis in a business planning process.
8. Discuss why it is important for a business to use a range of performance measures.
9.Outline three performance measures that could be used to measure customer satisfaction.
10. Discuss the balanced scorecard approach in relation to performance measurement.
11. Explain the SMART criteria for objectives.
12. What is the purpose and benefit of using key performance indicators in the business planning process
Task 2
INSTRUCTIONS:
case Study
Ozhouse Clean is based in Melbourne and offers professional, residential cleaning services, including regular home cleans, as well as spring cleans. The company is a family business established in 2005 by James and Nancy Anderson. James and Nancy are the Directors of the company. Their daughter, Sarah is employed by the company in the role of Administration Manager; and you have been employed in the role of Operations Manager.
The company sees its point of difference from competitors as being a small family business with a focus on quality and happy and content staff and customers. The management team understands this point of difference may need to change as the business grows. There may a need for more management staff to be employed, for example, while Sarah manages marketing, she is not skilled in this area and is very busy with the administration side of the business. A skilled marketing officer may be needed.
Currently target customers are located in the greater Melbourne area. Target customers are people who want a professional, trustworthy and immaculate cleaning service. Pricing reflects that of competitors.
The company employs 15 cleaners, all of whom are part-time contract staff working between 10 – 15 hours a week. The company currently has approximately 70 regular clients, based around Melbourne’s inner city. These clients require regular home cleaning, either weekly or fortnightly for hours ranging from 3 – 6 hours. A standard hourly rate of $40 per hour is charged. Staff receive an hourly rate of $25 per hour with the cost of the products provided to staff for cleaning, including equipment and ongoing supplies, works out to be approximately $2 per hour on top. The company is also considering whether it may be wiser to move to employing a number of full-time, permanent cleaning staff. This is partly because there is a high turnover of casual staff and little loyalty to the company. Staff costs for employing full-time cleaners are $55,000 per cleaner per year including all superannuation payments.
All cleaning supplies are currently purchased from Total Cleaning Supplies in Melbourne. However, as this company does not currently offer environmentally friendly products, a different supplier needs to be identified. It is estimated that purchase of these products will be an additional $10,000 per month. The products cost double the amount of the non-environmentally friendly products.
Sales revenue for the company for the financial year ending 2016 is $360,000 with a gross profit margin of
$40,000. Labour costs are a significant part of the business representing 70% of total costs. Average debtor days are currently 40 days.
Currently, marketing is via a website but a large proportion of the company’s work comes through word- of-mouth from existing customers. Social media is not currently used to market the business. The new business plan will need to reflect different ways of marketing, especially to attract commercial customers.
At a recent meeting of the management team (the Directors, Operations Manager and Administration Manager), it was decided that a 3-year business plan is needed to ensure the company meets its business goals. For the 2016 – 2018 years, this will be to diversify into the commercial cleaning market and to offer environmentally friendly cleaning services. Down the track, the company is also considering offering carpet cleaning services. The Operations Manager has been given the responsibility of developing the business plan.
The Directors and two senior managers met recently to develop and document the company’s mission, vision, values and objectives as follows:
Mission
Ozhouse Clean is committed to providing the highest quality residential and commercial cleaning services available by exceeding the expectations of our clients.
Vision
We are constantly working to establish ourselves as the most respected and sought after contract cleaning and facilities support service in Melbourne.
Values
Respect: taking time to understand and value each person and respecting their choices.
Responsibility: acting with integrity towards our staff, our customers, the community and the environment. Caring: a duty of care for our staff, customers and the environment.
Excellence: to always look to provide the best quality experience with regards to our cleaning and our customer service.
Integrity: to act with honesty, openness and do what we say we will do. Innovation: to be industry leaders.
Objectives
Our key objectives which are fundamental to our business in delivering world-class cleaning and customer service, are as follows:
- Provide our customers with a professional and friendly
- To increase the number of clients by 20% in the first year of introducing commercial cleaning services and 10%
- Meet or exceed the expectations of
- Implement best practice in cleaning operations, including environmentally sustainable practices.
Complete the following activities based on the case study above.
- Review and evaluate information and research in preparation to develop business
Review the case study and the business plan template provided to you before you start. Ensure you understand the business vision, mission, values and objectives so that they are reflected in the business plan.
Conduct research to inform the development of the business plan including:
- Identifying and analysing trends in demand for cleaning services, nationally as well as in the local Melbourne
- Identifying competitors in the market for Ozhouse Clean. Include information for at least three competitors, providing a summary of their services, as well as an explanation of how their services compete with Ozhouse Clean and any points of difference that will enable Ozhouse Clean to stand
- Identifying and analysing target consumer needs for specific types of cleaning services eg environmentally friendly cleaning services. This may be through identifying secondary sources of data or through a review of social media, for
- Identifying strengths, weakness, threats and opportunities (SWOT analysis) based on the scenario information and
- Identifying and evaluating alternative pricing strategies to the current pricing strategies (as per the scenario information).
- Identify potential marketing strategies for existing residential services, as well as commercial and environmentally friendly cleaning services. This may be through reviewing how competitors market their services, as well as identifying effective marketing
- Identifying any permits or licences that are required for commercial cleaning and environmentally friendly cleaning
- Identifying suppliers of environmentally friendly cleaning products that can provide Ozhouse Clean with products. Identify at least three options, including the supplier contact details and summary of products
- Identifying key activities and required financial, physical and human resources requirements based on analysis conducted (this will be documented in the action plan in the business plan). Note that you must ensure that your action plan clearly shows how a skilled workforce will be in place to ensure that the plan can be
– Identifying key performance indicators that can be used to assess both the financial and non- financial performance of the business.
Type your research findings into a word processed document, ensuring that the information has headings and is separated into the bullet points above. There is no requirement for your document to be formatted in a particular way. Submit your document to your assessor before commencing your business plan.
- Develop the business
Using your research findings and the scenario information, develop the business plan using the template that has been provided.
- A review outline and evaluation of the OzHouse Cleaning’s strategic goals, vision, mission, values and
- The actions that you include in the business plan should show how the strategic objectives of the company will be achieved, and what resources will be
- As additional staff will be required to manage the expansion into contract cleaning and environmentally friendly cleaning services, the actions included in the business plan should show how this will be achieved in terms of identifying staff needed, recruiting the required staff, as well as inducting staff. Clear timelines must be provided.
- Each of the actions should include clear performance
Your business plan must be written in clear and concise English, be grammatically correct and free from errors. Submit your completed plan to the management team (your assessor) with a memo attached advising that you wish to meet to discuss and seek feedback on the business plan.
- Present business plan to the rest of the management team. At the meeting to discuss your plan, you must:
- Explain the purpose of a business plan and its
- Introduce the plan including how the plan reflects the business’s vision, mission, values and objectives.
- Provide an overview of the business plan, carefully explaining each
- Seek feedback on the plan, in particular the actions indicated to achieve the strategic objectives, the performance indicators you are proposing and approval to procure the skilled
- Provide the information in user-friendly terms, as not all of the management team are familiar with the business planning
- Listen to the feedback provided by the management team (your assessor).
- Demonstrate effective communication skills including asking questions to elicit feedback from the management team, responding to questions from the management team and active
Following the meeting, incorporate the feedback received into the business plan and submit the final plan to the management team (your assessor).
Task 3
INSTRUCTIONS:
It is one year since the business plan was implemented and as the Operations Manager, you are reviewing the performance of the business against the performance indicators identified in the plan, testing performance indicators used and recommending changes to performance indicators as provided.
You have also been asked to provide an overall evaluation of the strengths and weaknesses of the business plan to date (this will be the business plan you developed for Assessment Task 2).
Assume that the performance indicators identified in the business plan are as follows:
- A 20% increase in total sales
- A gross profit margin of 20%.
- Reduction of 50% in debtor days
- 10 new commercial customers in the first year of the business
- Reduction of 10% of workforce turnover based on employing two full-time permanent cleaners, as well as increasing wages to above
- Data provided by the accountant for this financial year show the following figures:
- Total sales revenue – $450,000
- Total cost of sales – $320,000
- Debtor days – 30
– 15 new commercial customers
The Administration Manager has advised you that at least 10 of the previous residential customers no longer use the company’s services, so while sales revenue has increased, the sales revenue attributable to residential sales has declined.
In addition, follow up emails to the customers who no longer used the services indicated the following responses to the question asked about why they no longer use the services:
- Moved interstate – 1
- Dissatisfied with the quality of cleaning services provided (not enough attention to detail, cleaner finishing earlier than time paid for) – 5
- Moved to a competitor as better service and price offered – 4
Regarding staff, two of the current contract cleaners have been appointed as fulltime, permanent employees.
Wages have been increased to above award for all contract cleaners.
Of the 15 contract cleaners contracted at the start of the year, 4 have left and been replaced by new staff.
Complete the following activities:
- Develop a monitoring and evaluation
Review the scenario information and develop an outline for your report ensuring that:
- Your report will address a balance of both financial and non-financial information on business performance as per the scenario
- To assist in making the information as user friendly as possible, your report should include visual information to show how the business has performed such as graphs or
- Ensure you provide your report according to the timelines set by your assessor to show that you can provide timely reports. Completing work on time is part of the assessment
Ensure your report addresses:
- An overview of business performance based on the data provided for this year, as well as the data provided for the previous year (as documented in the case study in Assessment Task 1).
- An analysis of business performance to determine if the performance indicators have been achieved.
- An evaluation of the non-financial information gained from the survey, impact on the business and variations that could be made to the business plan based on this
- A review of additional performance measures that can be used to measure customer retention and customer satisfaction based on the decrease in residential customers as advised in the case study. You will need to research the range of performance measures that could be used and report on performance indicators that you consider to be suitable. Your report should include a clear explanation of the performance indicators and your rationale for utilising these
- An evaluation of the strengths and weaknesses of your developed business plan and at least two recommended improvements. Research other plans to help you with the
- Provide a summary of recommendations for the upcoming year based on your evaluation as above, as well as required changes to the business
Your report must be formatted in a professional report format that includes heading to separate and identify the information. Ensure it is written in clear and concise language suitable for the audience (your assessor), is grammatically correct and error free. Submit the report to your assessor.
Task 4
INSTRUCTIONS:
A review of the business’s performance against the performance indicators in the plan identified that a number of residential customers no longer use the services due to a of lack of satisfaction with the quality of the service provided, specifically the level of cleanliness and attention to detail.
As the Operations Manager, you decide to set up a meeting with each of the contractors to investigate the situation and to provide coaching on the expected level of performance. For this assessment task you only need to meet with one of the cleaners.
Ozhouse Clean has the following expected level of performance in relation to cleaning services:
- All surfaces, including floors, bench tops and shelves cleaned so that they are free of dust and
- Rubbish bins emptied and
- Shower screens and mirrors cleaned and free of soap build up and
- Only cleaning products provided are
- All cleaning services must be provided in the allocated
These performance standards are included in each person’s contract.
Assume that the contract cleaner (role played by your assessor) has been invited to the meeting.
Complete the following activities:
- Conduct meeting and coaching
Conduct the meeting at the specified time on the specified date with the contract cleaner (role played by your assessor). This meeting should be treated as a coaching session as well as to try and get the staff member to understand the issues and meet the required performance standards.
At the meeting you must:
- Explain the purpose of the meeting
- Explain to the contract cleaner what the problem is
- Discuss the level of performance expected by the company
- Demonstrate your interpersonal and communication skills by: keeping your communication clear and simple, asking questions to identify reasons for underperformance and to confirm information provided and listening to the contract cleaner and confirming and clarifying information shared
- Discuss and agree on a solution
Prepare and submit a follow up report (in the format or a memo or email) to the contract cleaner (your assessor) within 1 day of the meeting summarising the meeting and the solution agreed to.
- Develop report on actions and solutions for management
The final part of this assessment requires to you to send a brief report to the management team explaining the issues and the solutions you have identified.
- You are also required to identify at least two changes you consider should be made to the business systems/process or to the business plan as applicable.
Answer:
Introduction
Assignment
Project Management
Basic Questions
Identify and describe five common components of a business plan.
The 5 common components of a business plan are described below:
Executive Summary:
Provides a framework for key software additives inclusive of your organisation’s imaginative and prescient and imaginative and prescient, product profile, target markets, product and offerings, competition, advertising method and financial features. A good management summary is brief, with best the first two pages convincing the reader to study throughout the marketing strategy.
Target Market:
This component factors out in element; your company’s customers, brands and products. This focused marketplace identification will notably affect other operations in the employer consisting of income, production and different preferences.
It is vital that the marketplace profiles are clean because the fulfillment of a organization will in large part depend upon the extent to which the desires of this target marketplace are recognized and met. At this point, it’s miles very essential that you answer the following questions:
- Who are the agency’s customers?
- What cost does the organization offer its clients?
- How does the organization assist its clients to reap the sort of value?
- Marketing Strategies
Strategy
This is another a part of a business plan that offers with 5 P-marketing; particularly: product, fee, person, place and promoting. Your organisation may additionally have an excellent product however without powerful advertising strategy, the whole thing is in useless. In order to develop a very good advertising method and software, you want to answer the subsequent questions:
- What do you sell?
- How plenty does it cost?
- What is a goal market?
- How will the goods be allotted?
- How will the target market be conscious and enticed into shopping products?
Structure of Organization and Management
Identifies the organizational structure of your organization that includes key executives. This phase is especially essential when it comes to investing because buyers may be interested by the lower back of the employer’s management crew and the corresponding earnings ratio.
Investment
Finally, any business plan would now not be entire with out investment. This section has a clean view of the organization’s economic hypothesis over the first few years of commercial enterprise. This section consists of earnings statements, expected advantages, coins waft evaluation and estimates. (9 Most Important Components and Business Plan Components).
Discuss the purpose of the business planning process.
The purpose of a business plan can be visible as an powerful device and method to gain the goals and targets of our company. The business plan will align the enterprise with clarity, prioritization and improvement of commitment to goals. The end result of an excellent business plan is better results and improved profitability.
In addition, we are able to associate the meaning of the phrases of the Business plan term with the result, and many leaders need the following results:
- Better consequences (we will encompass profits or income boom)
- New approaches of approaching business, because everything in cutting-edge existence is converting and we want to apply new methods
- Improved dedication to goals
- Specified goals
- Prioritizing goals and objectives
Discuss three areas that a business planning process may address.
Pricing Actions:
Production and distribution fees are two elements to bear in mind whilst calculating company e book charges. If the crew chooses an entry or skiing method these won’t be the factors. Also, if the team makes a decision on a competitive pricing strategy you may cut up your titles by using providing coupons or refunds.
Distribution Tactics
I think that in every marketplace segment and topic, the crew must decide whether or not the organization will market thru distributors or stores, or directly to the client. If the employer identify explains the process search method, the employer may choose Baker & Taylor to visit the library market with Ingram to offer assist at bookstores. The organization may distribute without delay to faculties, provincial governments and agencies.
Tactics of Promotions
The agency ought to divide its advertising plan into 4 categories: advertising and marketing, marketing advertising, advertising and marketing and personal advertising. Advertising consists of cheaper approaches to advantage interest including media releases, opinions and media performance. Examples of items that sell the sale of income books, pens, pads and calendars. Advertising regularly has a long-term impact on revenue, depending on the way you write and role your ads. Direct mail is generally covered on this class. Personal advertising includes face-to-face touch together with exchange shows or via personalised sales calls, private shows and ebook signatures.
Discuss key steps in developing a business plan.
Financial Forecasting
First, map out the financial development you intend to make to your commercial enterprise over the next 3-5 years. Include profits phrases and you can need to specify how much you’ll need in an investor or mortgage to deliver the ones desires to fruition.
Organizational Structure
In this place we should reflect on consideration on how our business will function and how it is going to be built. In addition, we want to do not forget whether in the long run the commercial enterprise desires to paintings with facts, sales, and advertising experts, within the intervening time, if we will expect our business to develop inside the future and what roles you may have and want.
Products or Services
At this point we pass into greater information about the employer’s services and products. The group discusses what makes a products or services distinct and how it plans to use it in a aggressive market surroundings
Outline key stakeholders who may be involved in business planning.
It depends at the sort of marketing strategy we decide to devise. There are capability stakeholders inclusive of undertaking managers, fitness and safety managers, cooperatives, vendors, personal financiers, engineers / contractors, we will consist of many people related to the assignment and this system, and as a result, the undertaking final results. May have an effect on future contributors
Discuss the purpose of a business vision.
Business vision statement is critical to the agency for a selection of reasons; It offers clear direction on in which the enterprise is headed. It has the price of strategic making plans within the sense that it suggests the type of strategy that an company ought to comply with to be able to attain a dream destination.
Discuss the purpose of a SWOT analysis in a business planning process.
We can explain that SWOT-evaluation is a common planning tool that could assist managers compare the probability that a specific challenge will be successful. The phrase “SWOT” is an acronym for “strengths”, “weaknesses”, “threats” and “opportunities”. The motive of the framework of strengths, weaknesses, possibilities, and threats is to make managers think about all which can contribute to the success of a new venture. Failure to do not forget a tremendous electricity, weak point, hazard or possibility can result in terrible enterprise selections. For instance, if a technology company that owns a brand new processor does not see the hazard that its competition are growing comparable merchandise, it can override the sales potential of the new processor and take credit score to aid technique improvement handiest locate that the new product does now not generate sufficient sales to pay off debt. In other phrases, strengths, weaknesses, opportunities, and brain threats can help managers keep away from costly errors and decide which projects are maximum likely to be successful.
Discuss why it is important for a business to use a range of performance measures.
Performance dimension is the technique of accumulating, analyzing and reporting records relating to the overall performance of an man or woman, group, enterprise, application or factor. The performance appraisal system leads to a evaluation of real overall performance and requirements. This enables managers recognize the volume to which overall performance deviates from what is anticipated. In this way determining whether or not overall performance is standard consists of assessing differences and taking the necessary steps to improve overall performance.
Outline three performance measures that could be used to measure customer satisfaction.
The 3 performance measures are listed below
- Customer Satisfaction Score
- Customer Satisfaction Surveys
- Net Promoter Score
Discuss the balanced scorecard approach in relation to performance measurement.
As we know, that long-term enterprise success can not be achieved if we focus only on the on the spot financial results. In the shape of a standard rating card, the quantity of performance scores is stepped forward. Each index need to be regular with the overall business goals. In addition, each degree must be easily cut and understood. These estimates may be associated with financial consequences, patron results, or commercial enterprise system consequences. However, the balanced scorecard method may additionally encompass particular limitations that have to be met, with a robust attention on development.
Explain the SMART criteria for objectives.
Specific
Your goal should be clean and concise. Vague or ambiguous desires are vain due to the fact they do no longer offer adequate guidance. Remember, you need desires to reveal you the manner. Make it as smooth as feasible to get wherein you need to move through explaining exactly in which you need to turn out to be.
Measurable
Include accurate values, dates, and so on. On your desires so you can degree your success charge. If your goal is without a doubt to “lessen fees”, how will you understand whilst you’ve succeeded? In one month in case you lose one percentage or years while you lose 10 percent? Unless you have got a particular vacation spot, you’re simply moving the car and wasting fuel.
Attainable
Make positive you reach your goals. If you place a intention which you do now not wish to achieve, you’ll handiest undermine your self-self assurance. However, keep away from the temptation to set unreasonable goals for yourself. Achieving a purpose that you did no longer must work difficult for can be the fine weather, and it could make you afraid to set destiny desires that carry the risk of failure. By putting sensible however hard desires, you may attain the stability you need. These are the types of desires that require you to “improve the bar” and convey brilliant non-public delight.
Relevant:-
Goals need to be steady with the manner you need your existence and profession to take. By keeping the desires in keeping with this, you will expand the focal point you need to move ahead and do what you want. Set goals which are perplexing and inconsistent, and you’ll waste a while – and your fitness – away.
Timely:-
Your desires ought to set a closing date. Again, this indicates you realize whilst to have a good time fulfillment. As you figure in the direction of the cut-off date, your feel of urgency will develop and achievement will come.
What is the purpose and benefit of using key performance indicators in the business planning process
KPIs translate your business approach into manageable, efficient actions, based on the data you accumulate and monitor. They are an important a part of the records needed to apprehend a company’s development.
References
Sandy, W. (2017). Link Your Business Plan to a Performance Plan. Journal of Business Strategy, 11(6), 4–8. https://doi.org/10.1108/eb039381
Use the SMART Approach to Set Fundraising Goals. (2017). Successful Fundraising, 25(12), 4–4. https://doi.org/10.1002/sfr.30795
Vaněk, M., Mikoláš, M., & Žváková, K. (2017). Evaluation Methods of Swot Analysis / Metody Vyhodnocení Swot Analýzy. GeoScience Engineering, 58(2), 23–31. https://doi.org/10.2478/gse-2014-0036
References
0 responses on "BSBMGT617 Develop And Implement A Business Plan"