Assessment Task 3 Instructions

Carefully read the following:

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 revenue.
 A gross profit margin of 20%.
 Reduction of 50% in debtor days
 10 new commercial customers in the first year of the business plan.
 Reduction of 10% of workforce turnover based on employing two full-time permanent cleaners, as well
as increasing wages to above award.

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

Complete the following activities:

1. Develop a business Monitoring and Evaluation Report

Develop a business Monitoring and Evaluation Report that 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 scenario
information for Assessment Task 2).
 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
information.
 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 scenario information.
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 using these indicators.
 An evaluation of the strengths and weaknesses of the business plan (the plan you
developed for Assessment Task 2) and recommended improvements.
Review the information at the link below and for each component of your business
plan.
Provide an assessment of your plan, noting that some areas may not have been
covered.
Provide an overall assessment of the strengths and weaknesses of your plan based
on your assessment.
http://coba.belmont.edu/fac/schenkelm/etp3000/Course_Documents/Business
%20Plan%20Assessment%20Template.pdf
 Provide a summary of recommendations for the upcoming year based on your
evaluation as above, as well as required changes to the business plan.