Reference no: EM133071781

BSBESB401 Research and develop business plan

Assessment Task 1:

Question 1 Identify and list below five (5) purposes/ reasons for having a business plan and at least two (2) associated benefits of each

Question 2 Review the following scenario information and then answer the question following-

BUSINESS SCENARIO

Kelly Smith and Adam Roberts have decided to start their own business.
They are interested in opening a Gelato Bar. Adam has learned how to make gelato while working in Italy and has developed a new flavour they want to market as their ‘signature flavour'.
Adam has a friend who works at the bank - he thinks they could be a good network for applying for a business loan. Before they can apply for a loan, they need to first develop a business plan. The business plan is a key document when presenting the overall idea to financial institutions or potential investors.

a) What is the main purpose that Kelly and Robert have identified for the busines plan?

b) List at least three (3) ways you could assist Kelly and Adam prepare their Business Plan.

Question 3: According to the advice from business.gov.au, what seven (7) things should you do before writing the Business Plan?

Question 4:

a) What are the three (3) main factors which will determine the structure and contents of all business plans, regardless of the size of the business/venture?

b) What are the eight (8) essential sections/ components which would be expected to define the structure or headings of a professionally prepared business plan for a significant venture/business?

c) Outline the five (5) essential elements/components which must be addressed within the busines plan?

Question 5:

a) What are the four (4) examples of significant risks given by business.gov.au which must be managed by every business? Include the legislative reference provided for each category of risk.

b) According to business.gov.au, what are the three (3) types of risks that your business may face which should be understood so you can recognise and plan ahead for them? Include the example of each given.

c) In relation to "opportunity-based risks, what are the two (2) risks that come from committing business resources to one opportunity?

d) What are the five (5) examples of "uncertainty-based risks given by business.gov.au?

g) What are the five (5) examples of strategies for reducing the impact "uncertain events" given by business.gov.au?

f) What are the seven (7) examples of "hazard-based risks given by business.gov.au?

Question 6:

a) According to business.gov.au, what are the three (3) risk management principles that outline how you can manage risk in your business planning process?

b) According to Business Victoria, what are the five (5) steps to follow to create a Risk Management Plan that's tailored to your business, relevant to business planning

Question 7: Which Australian federal legislation establishes Australia's workplace relations framework and laws, and what are its six (6) key elements?

Question 8: What three (3) government bodies jointly administer environmental protection in Australia

Question 9: What is the Australian federal government legislation that governs the assessment and approval process of national environmental and cultural concerns that may need consideration when devbeloping a small business plan?

Question 10: What is the Victorian state government legislation that applies to environmental protection that may also need consideration when devbeloping a small business plan for a business operating in Victoria?

Question 11: What is the Tasmanian state government legislation that applies to environmental protection that may also need consideration when devbeloping a small business plan for a business operating in Victoria?

Question 12: Provide an outline of the combined environnmental legislation, as summarised by Geoscience Australia, that applies to all Austrlian staes and territories.

Question 13: What five (5) Acts operate at a federal level for which the Australian Human Rights Commission has statutory responsibilities under them?

Question 14: What are the eight (8) laws which operate at a state and territory level, with state and territory equal opportunity and anti-discrimination agencies having statutory responsibilities under them?

Question 15: When developing a Business Plan, list ten (10) attributes under the equal opportunity and anti-discrimination legislation it is unlawful to disadvantage employees and job seekers-

Question 16: Provide an outline of the combined equal opportunity and anti-discrimination legislation, as summarised by the Australian Human Rights Commission, that applies to all Austrlian states and territories.

Question 17: What are the workplace health and safety responsibilities and obligations of a person conducting a business undertaking for identifying hazards in a business?

Question 18: What are the four (4) workplace health and safety procedures that make up an appropriate risk management approach for the identification and management of hazards in a business?

Question 19: As a key requirement of managing risks in the workplace, what two (2) parties should be consulted and involved in the hazard identification, risk assessment and risk control processes? List two parties?

Question 20: Workplace hazard identification, assessment and control is an on-going process. On what six (6) main occasions/ circumstances should it be undertaken?

Question 21: What is the name and the web address of the "one-stop tool" provided by business.gov. which is available to help small businesses find all the local, state and federal licences, registrations and permits needed to plan for, start, and operate a business in any municipality, state or territory?

Question 22: What is the main purpose and key elements of each of the following different types of planning processes?

a) Feasibility Study
b) Strategic Planning
c) Operational Planning
d) Financial Planning
e) Marketing Plan

Question 23: Outline how a small business should set business goals and objectives?

Question 24: Outline the difference between primary market research and secondary market research?

Question 25:

a) List any three (3) examples of primary market research suggested by business.gov.au.

b) What are the two (2) sources of information suggested by business.gov.au to conduct secondary market research? business.gov.au.

c) The Australian Bureau of Statistics (ABS) Small Business Portal can help you to find the information you need to research your market, understand your customers and plan a business case. What are the three (3) main resources it provides?

Question 26: What workplace procedures should be developed to assist a business or other organisation manage both internal and external business risks, including assessing and prioritising those risks? Also, list what should be included in the procedures.

Question 27:

a) What workplace procedures should be developed to assist a business or other organisation establish the resource requirements which will align with the business/organisational goals and objectives? Also, list what should be included in the procedures.

b) What workplace procedures should be developed to assist a business or other organisation calculate the staffing that will required to produce/deliver the products and /or services to align with the business/organisational goals and objectives?

Question 28: What workplace procedures should be developed to assist a business or other organisation develop contingency plans for unexpected events and situations? Also, list what should be included in the procedures.

Question 29: What workplace procedures should be developed to assist a business or other organisation develop risk management strategies to mitigate business risks? Include an outline of what the procedures should do.

Assessment Task 2: Case Study

Activity 1: Develop Business Plan
Activity 2:Calculate unit volumes and unit prices
Activity 3: Prepare a cash flow forecast

Activity 1 -Develop the business plan

Using your research findings and the background information, develop the business plan using the Ozhouse Business Plan template, provided in soft copy as
Handout - business plan template.

Your business plan must cover each of the following, provision for each being included in the template:

1)       Executive Summary showing-

                                    i.    where the business is located

                                   ii.    when it was established

                                 iii.    legal structure

                                 iv.    the business products and services offered

2)       Purpose and time frame of the business plan, including-

                                    i.    the 3 key strategic and business goals

                                   ii.    noting future consideration of new services

                                 iii.    reference to any financing requirements

                                 iv.    reference to budgets for new activities

3)       Mission Statement & Vision Statement

4)       Values

5)       Methods of Operation

6)       Products/ Services Summary

7)       Strategic and Business Goals & Objectives

8)       SWOT Analysis

9)       Legal & Compliance requirements, including-

                                    i.    Permits and licenses

                                   ii.    OHS/WHS and Duty of care responsibilities

                                 iii.    Environmental considerations

                                 iv.    Equal Employment Opportunities (EEO)

                                   v.    Industrial Relations

10)   Market analysis including-

                                    i.    Market size

                                   ii.    Market trends (5 year 2014-2019)

                                 iii.    Industry outlook (5 years 2019-2024)

                                 iv.    Identified market needs

11)   Marketing activities

12)   Resources, including-

                                    i.    Key personnel

                                   ii.    Required (new) staff

                                 iii.    Plant & equipment

13)   Budget & Financial Plan, including-

                                    i.    Current revenue

                                   ii.    Annualised forecast industry growth (%)

                                 iii.    Forecast annual Revenue

                                 iv.    Projected Gross Margin

                                   v.    Projected Net Profits

                                 vi.    Sources and costs of Finance/funding

Activity 2
The Directors are satisfied with their decision to use market-based pricing rather than cost- based pricing, as the cleaning industry is very competitive. However for the sake of due diligence, they have asked you to calculate what the prices would be if services were priced as a unit price for the services.

1. If the average time charged for a domestic clean is 2 hours, how many domestic cleans would be required to achieve the forecast revenues for each of the Years 1, 2 and 3? Round-up your answers where necessary to equal a whole number.

2. Taking forecast Year 1 as the base, calculate what the charge rate would be for a standard domestic clean , given the following assumptions-
Average hours per clean = 2
Gross margin % required = 30%
Gross profit % required = 70%
Pricing may be rounded-up or down to nearest whole ten (10) cents.

Activity 3

1. Using the financial information provided for the Business Plan (Handout - Ozhouse Clean Financials & Budget), together with the cash flow assumptions given below, prepare a cash flow forecast for Year 2.

Prepare your cash flow projections by completing the Excel Handout- Cash Flow template.

Cash flow Assumptions
Opening cash available balance b/fwd = $5,000
Revenue is annualised monthly and received in the same month as billed
All outgoings are annualised monthly and paid in the same month as incurred, except as follows-
Marketing expenses for the Consultants is paid in equal amount quarterly in arrears
New vehicle lease is to be paid by one upfront amount equal to 3 months' instalments (including fees) in January
New vehicle lease and fees are then paid each month following (i.e. from February
All relevant taxation and other legal requirements have been complied with in the assumptions given for each of the outgoings

2. List the two (2) most significant/critical KPI's (Key Performance Indicators) , with the respective budget target for each, that should be set to enable monthly monitoring of financial performance against your Cash Flow projections

3. In addition to the financing/funding costs for the new Vans, what other finance is needed to maintain the required liquidity as outlined by the Directors and as determined by your Cash Flow projections?

4.

Assessment Task 3: Case Study & Roleplay

Activity 1: research question - common business risks
Activity 2: research question - industry codes of practice
Activity 3: complete a risk assessment including strategies/contingencies to mitigate risks
Activity 4: participate in a Roleplay to review the business plan

Activity 1: Research and outline below common risks particular to small cleaning businesses or the cleaning industry

Activity 2: Research and clarify below at least two (2) industry codes of practice particularly relevant to the Ozhouse Clean business

Activity 3: Prior to meeting with the business owners and directors (Activity 4), review the SWOT Analysis in the business plan. Referring also to the business strategic direction, goals and objectives, conduct a Risk Assessment by completing the Risk Management Table following. Your risk assessment must-
categorise the weaknesses and threats into internal and external factors
assess and prioritise the risks to the business
develop strategies/contingencies to mitigate those risks, with consideration to any relevant legislation
identify specialist services and sources of advice, if required, to assist mitigate those risks
research the costs of those services or advice which could be allowed for in the available resources already included in the business plan.

Activity 4:
Your Assessor will allocate a time to attend and roleplay. Your Assessor will role play as James, a Director who is one of the business owners, and will also observe you whilst participating in this role play. Your Assessor will also allocate another student to role play as Nancy, the other Director and business owner.

STUDENT ROLEPLAY INSTRUCTIONS
You will roleplay as the Operations Manager who is responsible for developing and implementing the business plan. You will chair a meeting with to discuss and confirm support for the business plan and assess and address associated risks.

Your Assessor will roleplay as one of the Directors and business owners. One other student will roleplay as the 2nd Director and business owner who is also asked to attend the meeting.
You will chair the meeting and be required to actively participate and answer questions when required.
Roleplay Cast:
The following individuals will be at the meeting;
Student being assessed role play as the Operations Manager
Assessor roleplay as one of the Directors and business owner
The 2nd Director and business owner role play by one other student

General instructions for all role players include:
participate in discussions about the business plan and associated risks
respond to open questions, by elaborating and providing additional information.
respond to closed questions, with a single word reply.

During the meeting, you must:
Identify specific interests and objectives of each participant and confirm their support of the planned business direction;
identify, assess and prioritise internal and external risks
Identify specialist services and sources of advice required, if any, and their costs
develop risk management strategies
Use language and features appropriate to audience
Participate in discussions using listening and questioning to elicit the views of others and to clarify or confirm understanding

Attachment:- Research and develop business plan.rar