Bsbmgt617 develop and implement a business plan answer

BSBMGT617 Develop and Implement a Business Plan

Assessment Task 1

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Assessment Task 1-Analyse a business plan

(Written Report)

Submission details

The Assessment Task is due on the date specified by your trainer. Any variations to this

arrangement must be approved in writing by your trainer.

Submit this document with any required evidence attached. See specifications below

for details.

You must submit both soft copies and printed copies of your answers.

Soft copies-

Upload on the eLearning to the specific submission folder with a cover page clearly indicating

your name, student id, assessment no and the unit name or put those information in the header

and footer of your documents.

Printed copies-

Submit to your Trainer with the "Assessment Cover Sheet" (Filled out and signed appropriately)

attached on top of your documents.

Assessment description

Review two completed business plans. Analyse the strengths and weaknesses of each business

plan, and prepare two written reports of your findings.

Procedure

Business Plan 1:

1. Read the business plan ‘Quality Training’ (see Appendix 1).

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.

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Assessment Task 1

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Business Plan 2:

1. Choose a business plan from the following website:

a. Bplans.com, 2010, ‘Free sample business plans’, viewed October 2010,

<http://www.bplans.com/sample_business_plans.cfm>.

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.

Task Specifications

Deliverable specifications

● Submit two completed reports (500 words each), analysing the strengths and weaknesses

of two separate business plans.

Quality specifications

● Each report should be 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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Assessment Task 1

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Business Plan

QUALITY TRAINING

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Table of Contents

1.0 Executive summary ...................................................................................................... 5

1.1 Objectives .............................................................................................................. 5

1.2 Mission ................................................................................................................... 6

1.3 Keys to success ..................................................................................................... 6

2.0 Company structure ...................................................................................................... 7

2.1 Company ownership .............................................................................................. 7

2.3 Company locations and facilities .......................................................................... 7

3.0 Services ........................................................................................................................ 8

3.1 National recognised qualifications ....................................................................... 8

3.2 Stand-alone (Fee for Service training) ................................................................. 8

4.0 Competitive comparison .............................................................................................. 9

4.1 Analysis of competitors ......................................................................................... 9

4.2 Risks and opportunities ........................................................................................ 9

4.3 Strategies to overcome perceived threats and weaknesses ............................ 10

5.0 Market Analysis Summary ......................................................................................... 12

5.1 Market trends ...................................................................................................... 12

5.2 Marketing strategy .............................................................................................. 13

5.3 Marketing materials ............................................................................................ 13

6.0 Pricing strategy........................................................................................................... 14

7.0 Review of business plan ............................................................................................ 15

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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.

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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.

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.

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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.

● Utilities provided for are to be charged to the business as a percentage of

home usage.

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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, who 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.

4.2 Risks and opportunities

Risks (Threats) Advantages (Opportunities)

New business

● unknown in the market place

● no references from former clients.

New business

● provide an alternative to clients

unhappy with their current provider

● clean record – no history.

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Risks (Threats) Advantages (Opportunities)

Small business

● owner-operated

● limited resources (staff/equipment)

● only operating in NSW

● lack of funding for large marketing

campaign

● targeting local area initially – limited

client base.

Small business

● flexible and adaptable to clients

needs

● low start-up costs

● personalised service – training is

conducted by the people who own

the company and who meet with the

clients. This is a level of

commitment other training

organisations may not 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

● many RTO’s and training

organisations competing for

business.

Competitive market place

● as above.

Funding

● reliance on government funding

(which is attractive to clients).

Funding

● market training as a business

benefit not an opportunity to attract

incentives

● offer a range of training services

outside of traineeships.

4.3 Strategies to overcome perceived threats and weaknesses

● Network with friends and acquaintances to source business opportunities.

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● 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.

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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.

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

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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?