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BUS15 Assessment Simulated Business - BBQfun
BUS15 Assessment Simulated Business - BBQfun
Assessment Materials
Table of contents
Chapter 1 Business plan (excerpt)........................................................2
Chapter 2 Organisational chart and management profiles....................3
Chapter 3 Management responsibilities................................................4
Chapter 4 Budget summary..................................................................5
Chapter 5 Operational plan...................................................................6
Chapter 6 Description of operations......................................................9
Chapter 7 Organisational risk register.................................................10
Chapter 8 Marketing plan.....................................................................12
Chapter 9 Sales and marketing policy.................................................24
Chapter 10 BBQfun Privacy Policy.......................................................26
Chapter 11 Anti-discrimination policy.................................................30
Chapter 12 Procurement policy and procedures..................................31
Chapter 13 List of preapproved suppliers............................................36
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Mission
To provide our customers with great value outdoor lifestyle
Vision
To be, within five years, south east Queenslands leading outdoor
lifestyle retailer.
Values
Quality
Customer value
People: Active encouragement of safety, teamwork, diversity,
Strategic directions
The strategic context in which BBQfun will achieve its mission and vision
is through:
engaging with customers through promotion and market research
building reputation for quality products and quality customer
service
supporting people to perform via training and performance
management
controlling costs.
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Board of Directors
and
CEO Pat Mifsud
Chief
Financial
Officer
Riz Mehra
HR Manager
Les Goodale
Operations
General
Manager
Kim Chen
Manager
Marketing
Sam Lee
Manager
Brisbane
Pat Sweeney
Manager
Gold Coast
Alex Mitchell
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$11,000,000
Investment income
$1,567,000
$5,890,000
Gross profit
$6,677,000
Gross profit.
$2,567,890
Expenses:
Wages, salaries and on
costs
Consultancy fees
$50,000
Communication
expenses
$42,000
Marketing
$800,000
Premises expenses
$1,000,000
Capital expenditure
$120,000
Depreciation and
amortisation
$177,569
Office supplies
$65,068
Training
$62,187
Total Expenses
$4,884,714
Net profit
$1,792,286
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Engaging with
customers through
promotion and
market research.
Performance measures
Completion of
market/marketing
research.
Completion of customer
Tasks:
Conduct of quarterly surveys on customer
satisfaction.
Evaluation of market and marketing data to
surveys.
Completion of reports to
identify marketing
opportunities.
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Building reputation
for quality products
and quality customer
service.
Raise
organisational
profile by 20%.
Improve client
satisfaction
performance by
25%.
Performance measures
Percentage of brand
recognition in sought-after
categories in periodic
customer surveys.
Percentage of customers
Tasks:
Audit of supplier quality.
Regular contact with suppliers.
Investigate resourcing needs: people, products.
Fulfil resourcing and distribution needs in
Number of customer
complaints.
Delivery times.
Number of returned items.
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Performance measures
Tasks:
Supporting people to
Numbers of injuries (Target
Research effectiveness of possible incentives for:
perform via training
= 0).
safe work achievement; healthy lifestyle.
and performance
Numbers of absentees
Anti-discrimination
managers).
complaints (Target=0).
Percentage completion of
achieve greater buy in of organisational goals.
performance plans and
performance management
Numbers of coaching
sessions completed.
Regular coaching.
Numbers of operational
Training needs analysis and training (leadership,
related training programs
WHS, ethical/legal training).
completed.
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Performance measures
Increasing sales
revenue
wages
consultancy fees
wastage and
associated expenses.
Expense target =
$4,884,714
Tasks:
Marketing campaigns.
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30 full time and casual sales and customer service people, checkout staff trained in use of POS (integrated with ERM and CRM
software system)
senior management team (5) + 1 store manager
4 sales team leaders
1 delivery truck driver
1 warehouse worker.
Large mezzanine office space (used to be occupied by online retailer,
30 full-time and casual sales and customer service people, checkout staff trained in use of POS (integrated with ERM and CRM
software system)
1 store manager
3 sales team leaders
1 delivery truck driver
1 warehouse worker.
Large mezzanine open-plan office space with separate access
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Probabil
ity
Impact
Current controls
Future actions
Medium
High
Appropriate
Industry
Medium
Medium
High
Medium
High
Medium
High
Medium
High
insurances held
and coverage
reviewed annually.
Managers
encouraged and
incentivised to
follow performance
management
policy.
Employee
High
High
High
performance plans
align with business
plan and sixmonthly review
process in place.
Project to raise
awareness of antidiscrimination,
WHS and other
legislation/ codes
benchmarking in
all areas of
organisational
performance.
Review of
marketing/
operational
planning.
Review of online
presence, possible
ecommerce
opportunities.
Although stores
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Probabil
ity
Impact
Current controls
of conduct among
staff.
Future actions
Although stores
Probabil
ity
Impact
Current controls
Future actions
Medium
High
Appropriate HR
Low
High
Non-compliance on anti-discrimination.
Medium
High
Medium
Medium
Low
High
Low
High
policies and
procedures in
place. Included in
employee
induction kits.
WHS management
system in place.
policy.
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medium
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1.0Executive Summary:
BBQfun was established in 2009 by its current CEO, Pat Mifsud. BBQfun
offers an extensive product range, incorporating both local and imported
goods.
BBQfun steadily increased market share and profitability to 2010 when
sales peaked at $10 million. Since 2010, the increasingly competitive retail
environment, technological change, changes in consumer buying patterns
and confidence has led to disappointing sales. However, BBQfun intends to
return to healthy sales of $11 million in 2012 through building on its
organisational strengths. Organisational strengths will be built through
targeted marketing strategies aimed at key segments and through
exploiting marketing opportunities.
2.0Situation Analysis:
BBQfun sees its moderate pricing, extensive and high-quality product
range, great customer service, and product guarantees as key offerings to
gain traction with a market dominated by low-quality providers.
The basic market need is for quality, fashionable and unique outdoor
lifestyle items that fulfil the house-proud needs of our target market.
Market characteristics
The profile for the potential BBQfun market consists of the following
geographic and demographic characteristics.
Note: Information needs to be updated for the present year.
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Demographics:
ages 2050
Market needs
Note: Information needs to be verified for the present year.
Selection a wide choice of options.
Accessibility the customer needs easy access to the store with
minimal inconvenience.
Customer service the customer needs expert customer service to
plan.
Quality guarantees the customer requires three year product
Market trends
The market trend for outdoor lifestyle stores is headed toward a more
sophisticated and informed customer. Outdoor lifestyles customers are
becoming more sophisticated in a number of different ways:
Item quality the preference for high quality items is increasing as
lifestyles in their home that stand out from the mass-produced and
low-quality items.
Selection people are demanding a larger selection of choices; they
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Market growth
Note: Information needs to be updated for the present year.
In 2009, the national outdoor lifestyle market reached $300 million.
Outdoor lifestyle sales were estimated to grow by at least 6% for the next
few years. This growth can be attributed to several different factors:
the greater disposable household income from two income families
the greater availability of affordable and interesting quality imports
Economy
Note: Information needs to be updated for the present year.
At present, the real estate market in south east Queensland continues to
rise in price, and with it the disposable income of the population.
Based on economic forecasts, BBQfun assumes that interest rates will
remain steady and will have little to no affect on disposable income. The
same assumption is made about employment levels, where BBQfun
assumes that unemployment levels remain the same at approximately 4%.
Political
Note: Information needs to be updated for the present year.
From research carried out, BBQfun identified that the present Government
focus and emphasis in future legislative direction will be about growth and
productivity, which BBQfun sees as a positive for their business model.
There is also a strong push for environmentally sound business practices
and harmonised WHS legislation. BBQfun, as a business operating in
Australia, will abide by the law in all its dealings and comply with all
legislation that impact on its business activities.
Strengths
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Weaknesses
No online profile.
The struggle to continually manage cash flow and profitability due to:
Opportunities
Note: Information needs to be updated for the present year.
Threats
Note: Information needs to be updated for the present year.
Low-cost competition.
2.3 Competition
Note: Information needs to be updated for the present year. For the
purposes of assessment, named competitors are presumed to exist,
although other competition may be identified.
National competition
The Yard: has a limited selection but significant depth. All Australian
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Local competition
All independents. These stores are owned by individual owner
than any of the local independent stores and far in excess of the
national chains.
BBQfun will ensure that all aspects that are involved in the delivery of
satisfaction to the customer will work using an integrated approach.
district.
Design: bright and functional.
Size: 10,000 to 15,000 square metres.
Employees: 20 to 30 full-time employees plus casuals
Types of transactions: 60% cash, 40% on long-term repayment plan.
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assortments and in reduced price with volume buys. This will promote
our uniqueness and contribute to improved profit margins.
Continue to finance the easy manage long-term repayment plan for
customers.
Locate in easy access sites close to the growing markets in new
dwelling development.
Renovators
Replaceme
nts
70%
70%
50%
70%
65%
50%
Customer service is
essential
90%
95%
60%
10%
20%
95%
Australian made is
important
80%
65%
55%
100%
100%
100%
100%
100%
100%
Loyalty customer
30%
20%
10%
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New
builds
Renovator
s
Replaceme
nts
Totals
FY 2012/13
225,000
125,000
100,000
450,000
FY 2011/12
205,000
110,000
110,000
425,000
FY 2010/11
200,000
100,000
110,000
410,000
FY 2009/10
195,000
95,000
110,000
400,000
FY 2008/9
190,000
90,000
110,000
390,000
4.0Marketing Strategy:
Note: Information may need to be updated for the present year.
BBQfuns advertising budget is set at $180,000 for the 2012 financial year.
The advertising program will target local letter box drops, radio and
magazines. BBQfun will use direct mail and local advertising, with coupon
inserts in the BrisNews magazine is likely to be the most successful of the
campaigns.
BBQfun will try to get articles about BBQfun into the BrisNews magazine.
Previous features in the BrisNews magazine has seen a dramatic increase
of sales immediately after the article was published.
4.1 Mission
BBQfuns mission is to provide our customers with great value outdoor
lifestyle products and second-to-none customer service.
expenses.
Continue increase our gross profit margins.
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4.5 Positioning
Note: Information may need to be revised after assessment of marketing
opportunities.
BBQfun will position itself as a broad assortment, quality, and unique
outdoor lifestyle retailer. South east Queensland consumers who
appreciate high-quality and uniqueness will recognise the value and
unique offerings provided by BBQfun.
BBQfuns positioning will leverage their competitive edge:
expenses.
Continue increase our gross profit margins.
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BBQfun offers the widest, most exotic, easy access outdoor lifestyle
products in Brisbane. This message will be communicated through a
variety of methods. The first will be direct mail. The direct mail campaign
will be a way to communicate directly with the consumer. BBQfun will also
use ads and inserts in Brizzy magazine. BBQfun also believe that the local
patrons far prefer to receive information from the store via flyers in the
letterbox.
quality, it will not be cheap. We emphasise value over price and back
this up with a three year guarantee.
Distribution BBQfun products will be distributed through two retail
stores which customers can access easily via the large car parking
arrangements.
Advertising and promotion the most successful advertising will be
done to make the customer happy must occur. This investment will
pay off with a fiercely loyal customer base which will recommend
BBQfun to friends.
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2011 sales
Item
Avera
ge
price
Avera
ge
COGS
Average
contribu
tion
BBQ
$600
$300
$300
Outdoor
Furniture
$850
$420
BBQ
accessori
es
$50
$30
Revenue
Gross
profit on
sales
8,330
$4,998,00
0
$2,499,00
0
$430
3,500
$2,975,00
0
$1,505,00
0
$20
40,00
0
$2,000,00
0
$800,000
$9,973,0
00
4,804,00
0
Total
Units
Sales forecast
Total sales
Gross profit
2012
2013
2014
$11,000,000
$12,000,000
$15,000,000
$5,110,000
$6,500,000
$7,500,000
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2012
2013
2014
Direct mail
$40,000
$50,000
$60,000
$110,000
$100,000
$80,000
$30,000
$50,000
$70,000
$180,000
$200,000
$210,000
Magazine adv
Radio
Promotions
Total
6.0 Controls
The purpose of BBQfun marketing plan is to serve as a guide for the
organisation as it implements the marketing strategy.
Milestones (FY2011)
Project
Start
date
End
date
Manager
Departm
ent
Radio
July 2011
June
2012
Marketing
Manager
Marketing
Magazine & PR
July 2011
June
2012
Marketing
Manager
Marketing
Direct
marketing
July 2011
June
2012
Marketing
Manager
Marketing
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strategies
failure to revise operations and resourcing in accordance with
marketing strategies
failure to ensure product/customer service quality in event of revised
operations
failure to recruit qualified sales/customer service staff due to
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Scope
Resources
Responsibi
lity
Relevant
legislation
, etc.
Code of Practice
Australian eMarketing Code of practice
Australian e-commerce best practice model.
Updated/
authorised
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Scope
Resources
Responsibi
lity
Relevant
legislation
, etc.
Code of Practice
Australian eMarketing Code of practice
Australian e-commerce best practice model.
Updated/
authorised
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General guidelines/FAQs:
1. What is personal information?
Personal information is information or opinions that could identify you.
Examples of personal information include your name, address, telephone
number and email address, or documents that include this information, like
a resume or customer survey data we collect.
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When you visit this website or download information from it, our internet
service provider (ISP) makes a record of your visit and records the
following information:
your internet address
your domain name, if applicable
date and time of your visit to the website.
Our ISP also collects information such as the pages our users access, the
documents they download, links from other sites they follow to reach our
website, and the type of browser they use. However, this information is
anonymous and is only used to statistical and website development
purposes.
We use a variety of physical and electronic security measures, including
restricting physical access to our offices, firewalls and secure databases to
keep personal information secure from unauthorised use, loss or
disclosure. However, you should keep in mind that the internet is not a
secure environment. If you use the internet to send us any information,
including your email address, it is sent at your own risk.
You have a right of access to personal information we hold about you in
certain circumstances. If we deny your request for access we will tell you
why.
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religious activity
political belief or
activity
trade union activity
lawful sexual activity
gender identity
sexuality
family responsibilities
association with, or
Scope
Resources
Responsibi
lity
Relevant
legislation
, etc.
(Cwlth)
Disability Discrimination Act 1992 (Cwlth)
Racial Discrimination Act 1975 (Cwlth)
Sex Discrimination Act 1984 (Cwlth).
Updated/
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authorised
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Scope
Resources
Responsibi
lity
Relevant
legislation
etc.
1999 (Cwlth)
Income Tax Assessment Act 1997 (Cwlth)
Fair Work Act 2009 (Cwlth).
Updated/
authorised
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3. Non-discrimination
This procurement policy is non-discriminatory. All potential contracted
suppliers should have the same opportunities to compete for business and
must be treated equitably based on their suitability for the intended
purpose.
4. Risk management
Risk management involves the systematic identification, analysis,
treatment and, where possible, the implementation of appropriate risk
mitigation strategies. It is integral to efficiency and effectiveness to
proactively identify, evaluate, and manage risks arising out of procurement
related activities. The risks associated with procurement activity must be
managed in accordance with the organisations risk management policy.
delegations
measures to contain costs of the procurement without compromising
6. Procurement planning
In order to achieve value for money, each procurement process must be
well planned and conducted in accordance with the principles contained in
this document and comply with all of the organisations policies and
relevant legal and regulatory requirements.
When planning appropriate procurement processes consideration should
be given to adopting an approach, which:
encourages competition
ensures that rules do not operate to limit competition by
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on orders
the scope for improvements to the goods and add-ons from local
industry.
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Employees and directors shall ensure that to the best of their knowledge,
information and belief, that at the date of engaging a contractor no conflict
of interest exists or is likely to arise in the performance of the contractors
obligations under their contract.
Should employees or directors become aware of potential conflicts of
interest during the contract period, they must advise the CEO and
directors immediately.
Prior to any situation arising with potential for a conflict of interest,
complete disclosure shall be made to the CEO and directors to allow
sufficient time for a review.
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Required
number of
quotes
Comment
Authority to sign
contracts for
products and
services over
$75,000.
Two or more
competitive
quotes for
contracts over
$75,000.
Detailed services
contract required.
CEO
Authority to sign
contracts for
products and
services up to
$75,000.
Two or more
competitive
quotes.
Detailed services
contract required
for contracts over
$20,000.
General
managers
Authority to sign
contracts for
products and
services under
$30,000.
One or more
competitive
quotes
preferred.
Managers
Authority to sign
contracts for
products and
services under
$10,000.
One or more
competitive
quotes
preferred.
Follow BBQfun
purchasing
procedures.
Contractors
and external
consultants
No authority
One or more
competitive
quotes
preferred.
Contractors and
external
consultants must
follow BBQfun
purchasing
procedures and
must seek
approval for
purchases from
person holding
relevant
authority.
Delegated
authority only
through CEO
Must use
preferred
suppliers list.
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