Reference no: EM133002928

SITXFIN004 Prepare and monitor budgets

Project Assessment 2 Budget planning project

Addresses some elements of required foundation skills, Knowledge skills and Performance Evidence as shown in the Assessment Mapping documents

Activities
Complete the following activities.

1. Carefully read the following scenario:
Blue Healer is a health resort and convention centre based in the Blue Mountains near Sydney which has been operating for 5 years. The resort, Blue Healer, is made up of five areas: catering, spa, meeting rooms accommodation, and administration.

Blue Healer is very popular due to its competitive pricing structure, quality service and state of the art facilities.

The resort was set up by Paul Byrnes, a burnt-out consultant who wanted to provide a service for corporate executives to retreat from their business for at least a short time. Paul had a lot of networks and to date most of the business has been from Paul's existing networks and word of mouth referrals. The business has a functional web site.

Sales continue to increase but Paul wants to retire completely and step back from the business. Thus, he has hired a Resort Manager to oversee the business (you). An important aspect of the business that he wants the Resort Manager to focus on is preparing and monitoring budgets.

Current staff include an Accounts and Administration Manager, Resort Supervisor, Housekeeping staff, receptionist and contract therapists.
Profit and loss reports show the status of the business' financial health.

2. Determine and confirm scope and nature of the budgets

In your new role, the first step you need to take is to the determine the scope and nature of all of the budgets that need to be prepared for Blue Healer.

Draft an email to send to Paul to find out this information. Ensure your email includes questions that will provide all of the information you need to know, as well as identifies internal data sources that you need to access.

Paul Byrnes (your assessor) will answer your email so that you are able to forget ahead with developing the required budgets.

3. Develop a Marketing Budget Briefing Report
As per the response provided to you, you are to focus on developing a Marketing Budget including Briefing Report.

Use Marketing Budget Briefing Report Template to develop your report.

Review profit and loss for previous financial years to identify amounts spent on marketing for the previous two financial years, as well as the information provided to you by Paul

Identify at least two sources of information on recommended marketing expenditure that could be used to inform the marketing budget.

In addition, identify external factors that could impact on the marketing budget. This means that you should conduct market research on trends within the industry in terms of growth and opportunities and the types of marketing that similar businesses are conducting.

4. Send an email to the CEO and Accounts and Administration Manager (your assessor)
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Attach your Marketing Budget Briefing Report to the email.

Ask for input on your Marketing Budget Briefing Report. The CEO and Accounts and Administration Manager (your assessor) will provide you with feedback for input into your budget.

5. Draft Marketing Budget
You are required to draft a Marketing Budget based on your Marketing Briefing Report and the input provided from the CEO and Accounts and Administration Manager (your assessor).
After considering the internal and external factors you are requested to develop the Marketing Budget for 2019-2020, you should use the accounting software/suitable available application used by your organisation. The income & expenses that will be impacted by inflation are as follow:
Accommodation increased by 5%
Room hire increased by 10%
Catering increased by 2%
Advertising and marketing increased by 10%
Insurance increased by 2%
Motor vehicle expenses increased by 2%
Rent & Rates increased by 5%
Desktop publishing for brochures increased by 5%
Brochure development increased by 5%
Save this document as draft Marketing Budget and send it via email to the CEO and Accounts and Administration Manager (your assessor). Your email should clearly outline the options for marketing expenditure as per your marketing budget, as well as your recommendations for the budget.
You will discuss your draft budget at a meeting with the CEO and Senior Managers. Your assessor will advise you of the date of the meeting.

6. Participate in a budget meeting.
The next part of the assessment requires you to participate in a meeting with the CEO (role-played by your assessor) and the Accounts and Administration Manager (role-played by another student to discuss the marketing budget. At the meeting, the CEO will attempt to negotiate another option for the budget. You are required to demonstrate your negotiation skills to persuade the meeting participants that your budget is the best option.
At the meeting, you will need to:
• Explain the marketing budget you have developed and the various options.
• Seek input on the budget.
• Negotiate for your budget as presented.
During the meeting, you will need to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required.

7. Revise the marketing budget
Following the meeting, revise your marketing budget to incorporate feedback from the CEO and Accounts and Administration Manager.
You are to revise your marketing budget and send it out as Final Marketing Budget within 2 days of holding the meeting. You will be assessed on meeting this timeline.
Save this document as Final Marketing Budget and send it out via email to the CEO and Senior Managers.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment.

8. Meet with colleagues to discuss the marketing budget.
The final part of the assessment requires you to meet with colleagues to confirm the Marketing Budget for the year.
You are also required to introduce the team to the company's Finance Policies and Procedures. This is to ensure that they understand financial management responsibilities and reporting arrangements so that the marketing budget can be accurately implemented and monitored.
These requirements form part of the company's requirements for finalising budgets.
At the meeting, you will need to:
• Discuss the overall budget allocation for marketing
• Discuss the amounts allocated to each marketing activity
• Provide an outline of the Finance Policies and Procedures.
During the meeting, you will need to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required.
• Using active listening techniques to confirm understanding.