BSBMGT617 Develop and implement a business plan Student Assessment Task 2

Ozhouse Clean

Business monitoring and evaluation report

Business overview
 Total sales revenue has increased by more than 20% from the previous year.
 Reduction in debtor days to 50% has not been achieved.
 An additional 5 commercial customers have been procured in addition to the projected 10.
 Reduction in debtor days to 50% has not been achieved but debtor days has been decreased
to 30 days in comparison to previous year i.e. 40days.
Non-financial information
 Reduction of 10% of workforce turnover based on employing two full-time permanent
cleaners, as well as increasing wages to above award.

 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. The reason for the
previous residential customers no longer use the company’s services are:
a. Moved interstate: 1
b. Moved to a competitor as better service and price offered: 4
c. Dissatisfied with the quality of cleaning services Provided:5

Performance indicators
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 are as follows:
 Overall Satisfaction rate: It is the most straightforward of the customer satisfaction survey
methodologies and it measures customer satisfaction with a business ,purchase ,or
interaction. Its Calculated by asking a question, such as “How satisfied were you with your
experience?”. There’s a corresponding survey scale, which can be 1-3,-5,or 1-10.

 Customer retention rate :Customers making repeat purchases indicate quality performance.
With current market saturation, it’s easy to move on to a competitor when confronted with
poor customer service. This is especially vital in industries where repeat purchasing regularly
occurs.

 External industry benchmark : External Benchmarking  is an analysis of how our business

compares to others in our industry, to gain a clearer idea of where you fall short (if anywhere)
and what you can do better.

 Brand attributes: Brand attributes are the functional and emotional associations which are
assigned to a brand by its customers and prospects. They are the basic elements for
establishing a brand identity.

 Net Promoter Score: NPS measures whether current or former customers will recommend our
products or services to others. Having customers promote our brand among their networks is
the best marketing that money cannot buy. Statistically, people trust the opinions and
recommendations of others in their network above any other source

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

Business Plan assessment

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 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
The ten components of a business plan are:
1.Executive Summary: Ozhouse Clean is based in Melbourne and offers professional, residential
cleaning services, including regular home cleans, as well as spring cleans. The company was
established in 2005 and is a family business established and operated by James and Nancy
Anderson. James and Nancy are the Directors of the company and finance any business expansion
themselves. Their daughters, Amanda and Sarah, are also employed by the company and manage
the business for their parents who are not involved operationally. Amanda is the Operations Manager
and Sarah is the Administration Manager.
Rate this component:3

2.Description of the Business: Ozhouse Clean is based in Melbourne and offers professional,
residential cleaning services, including regular home cleans, as well as spring cleans. The company
was established in 2005 and is a family business established and operated by James and Nancy
Anderson. The company sees its point of difference from competitors as being a small family
business, with a focus on quality and happy and contented staff and customers. The management
team understands this point of difference may need to change as the business grows. There may
need to be more management or administrative staff employed, for example, while Amanda manages
marketing, she is not skilled in this area and is very busy with the operational side of the business, so
a skilled marketing officer may be needed.

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? yes or no) complete?
(yes or no)
What type of business Yes Yes Yes
will you have?
What products or Yes Yes Yes
services will you set?
Why does it promise to Yes Yes Yes
be successful?
What is the growth Yes Yes Yes
potential?
How is it unique? Yes Yes Yes

Rate this Component:4

3.Marketing: Ozhouse Clean will target the upper end of the house cleaning market. It would appear,
at least if you opened the yellow pages, that there is not a need for another house cleaning service.
Make no mistake, however, there is a need for a quality, honest service. Currently, target customers
are located in the greater Melbourne area. Target customers are people who want a professional,
trustworthy and immaculate cleaning service. Pricing reflects that of competitors.

Competition in the dry cleaning/laundry business in the Melbourne area is not fierce.  The company
believes that Home Cleaning Melbourne and My home service in Melbourne is the company's major

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

local competitor. The company also believes that it will be able to win customers from the regular,
drop-off competitors by enhancing the clients' peace of mind through a new level of convenience and
saving their time.

The current pricing strategy of Ozhouse clean is Value-based pricing. Value-based pricing is
setting a price based on what target customers believe the service is worth. It's more ambiguous
than using a simple mathematical formula, but it takes the focus off price and onto what makes
company and service special. In most cases, value-based pricing is the best option. Cost-plus
and competitor-based pricing models put the focus on company or on the competition. Values-
based pricing, on the other hand, shines the spotlight on the customer, making their voice the
centre of the pricing process.

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? yes or no) complete?
(yes or no)
Who will be your Yes Yes Yes
customers?(target
market)
How big is the market? Yes Yes Yes
(number of customers)
Who will be your Yes Yes Yes
competitors?
How are their business Yes Yes Yes
prospering?
How will you promote Yes Yes Yes
sales?
What market share will Yes Yes Yes
you want?
Do you have a pricing Yes Yes Yes
strategy?
What advertising and Yes Yes Yes
promotional strategy
will you use?

Rate this component:4

4.Operations: Ozhouse Clean target customers are located in the greater Melbourne area. Target
customers are people who want a professional, trustworthy and immaculate cleaning service.
Focusing on these people because they appreciate a professional, reliable, trustworthy, and
immaculate house cleaning service, and are more than willing to pay for this. While Cleanly,
Melbourne has several different cleaning services, Ozhouse Clean is the only one that targets the
affluent exclusively. The wealthy are consistent customers. Whether they have a house cleaning
service does not depend on the finances each month. These groups always have the money for our
services, just as they always need/desire a clean house.
Commonwealth Cleaning Services Guidelines 2011 is the regulations required. Other than this
there are no permit required for extending the cleaning business.

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

Three suppliers of environmentally friendly cleaning products that can provide Ozhouse Clean with
products convinently.They are
I. The green earth Hygiene
http://greenearthhygiene.com.au/
Contact:1300130824
Summary of Products:
 Deep cleaning
 Chemicals including bleach, window cleaner.
 Vacuums.
 Mops

II. Melbourne Cleaning suppliers

https://melbournecleaningsupplies.com.au/
Contact :(03)98807333
Summary of products:
 Surgical mask.
 MCS Worksafe kit.
 Micro quick cloth.
 Spray alcohol surf sanitiser.
 Vacuum
 Handtowel
 Toilet rolls
 Bin liners.

III. Apex Cleaning Supplies

https://apexcleaningsupplies.com.au/products/
Contact:(03)95555155
Summary of products:
 Personal protective mask.
 Hospital grade disinfectant.
 Hand sanitiser.
 Antiseptic hand soap.
 Floor cleaning machines.
 Safety vest.
 Toilet tissue.
 Hand tissue.
 Cleaning accessories.

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? yes or no) complete?
(yes or no)
How you identified a Yes Yes Yes
specific location?
Have you outlined the Yes Yes Yes
advantages of this
location?
Any zoning regulations Yes Yes Yes
or tax considerations?
Will there be access to Yes Yes Yes
transportation?
Will your suppliers be Yes Yes Yes
conveniently located?

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

Rate this component:4

5.Management :James and Nancy are the Directors of the company and finance any business
expansion themselves. Their daughters, Amanda and Sarah, are also employed by the company and
manage the business for their parents who are not involved operationally. Amanda is the Operations
Manager and Sarah is the Administration Manager. Ozhouse Clean employs 15 cleaners, all of whom
are part-time contract staff working between 10 – 15 hours a week. The company currently has
approximately 70 regular clients, based around Melbourne's inner city. These clients require regular
home cleaning, either weekly or fortnightly for hours ranging from 3 – 6 hours. A standard hourly rate
of $40 per hour is charged. Staff receive an hourly rate of $25 per hour with the cost of the products
provided to staff for cleaning, including equipment and ongoing supplies, works out to be
approximately $2 per hour on top. The company is also considering whether it may be wiser to move
to employing a number of full-time, permanent cleaning staff. This is partly because there is a high
turnover of casual staff and little loyalty to the company. Staff costs for employing full-time cleaners
are $55,000 per cleaner per year including all superannuation payments.
Commonwealth Cleaning Services Guidelines 2011 will affect the business. Other than this there
are no permit required for extending the cleaning business.

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? yes or no) complete?
(yes or no)
Who will manage the Yes Yes Yes
business?
What qualifications do Yes Yes Yes
you have?
How many employees Yes Yes Yes
will you have?
What will they do? Yes Yes Yes
How much will you pay Yes Yes Yes
your employees and
what type of benefits
will you offer them?
What consultants or No No No
specialists will you
use?
What legal form of Yes Yes Yes
ownership will you
have?
What regulations will Yes Yes Yes
affect your buisness

Rate this component:3

6.Financial:
A 20% increase in total sales revenue.
A gross profit margin of 20%.
Reduction of 50% in debtor days

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

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.
Total sales revenue: $450,000
Total cost of sales: $320,000
Debtor days: 30
15 new commercial customers

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? yes or no) complete?
(yes or no)
What is your total Yes Yes Yes
expected business
income for the first
year? Quarterly for the
next two years?
(forecast)
What is your expected Yes No No
monthly cash flow
during the first year?
Have you included a Yes Yes Yes
method of paying
yourself?
What sales volume will Yes Yes Yes
you need to make a
profit during the three
years?
What will be the break- Yes Yes Yes
even point?
What are your Yes Yes Yes
projected assets
,liabilities, and net
worth?
What are your total Yes Yes Yes
financial needs?
What are your finding Yes Yes Yes
sources?

Rate this component:3

7.Critical Risks.
 Competition from already established competitors in Melbourne.
 Lack of funds to invest in training staff.
 No social media marketing
 High staff turnover rate
 High level of competition
 Low price competitors
 Changes in legislation.

Alternative course of action:

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BSBMGT617 Develop and implement a business plan Student Assessment Task 2

a) Identify and implement new marketing strategies including:

 Marketing on Company Website.
 Social media marketing
 Advertise in newspaper, radio and television
 Sign up discounts
 Door drop leaflets
b) Develop an incentive plan for research and development staff who are slow to innovate.
c) Expand sales to existing customers (build on a strength)
d) Introduce existing products into a new market (build on a strength)

e) Monitor the Progress of the Implementation Process

f) Realign the Organisational structure

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? (yes or no) complete?
(yes or no)
What potential Yes Yes Yes
problems have you
identified?
Have you calculated Yes Yes Yes
the risks?
What alternative Yes Yes Yes
courses of action
exist?

Rate this Component:5

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This document is Business Monitoring and Evaluation Report Template
It is part of the supporting resources for Assessment Task 3 of BSBMGT617.

8.Harvest Strategy

Strategic objectives based on an analysis of the scenario information, operational plan and discussion
at the meeting are as follows:

 Provide our customers with a professional and friendly service.

 To increase the number of clients by 20% in the first year of introducing commercial cleaning
services and 10% thereafter.
 Meet or exceed the expectations of customers.
 Implement best practice in cleaning operations, including environmentally sustainable
practices.

Key elements Have you covered this Is the answer clear? Is the answer
in the plan? (yes or no) complete?
(yes or no)
Have you planned for No No No
the orderly transfer of
the venture assets if
ownership of the
business is passed to
this corporation?
Is there a continually Yes Yes Yes
of business strategy
for an orderly
transition?

Rate this component:1

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© RTO Works 2019
This document is Business Monitoring and Evaluation Report Template
It is part of the supporting resources for Assessment Task 3 of BSBMGT617.

9.Milestone Schedule.

Key Elements Have you covered this Is the answer clear? Is the answer
in the plan? (yes or no) complete?
(yes or no)
How have you set your Yes Yes Yes
objectives?
Have you set Yes Yes Yes
deadlines for each
stage of your growth?

Rate this component:5

10.Appendix
Key Elements Have you covered this Is the answer clear? Is the answer
in the plan? (yes or no) complete?
(yes or no)
Have you included any Yes Yes Yes
documents, drawings,
agreements ,or other
materials needed to
support the plan?
Are there any names Yes Yes Yes
of references,
advisors, or technical
sources you should
include?
Are there any other Yes Yes Yes
supporting
documents?

Rate this component:5

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© RTO Works 2019
This document is Business Monitoring and Evaluation Report Template
It is part of the supporting resources for Assessment Task 3 of BSBMGT617.

Recommendations
A summary of recommendations for the upcoming year based on my evaluation as above, as well as
required changes to the business plan are as follows:
 Monitor residential cleaning services closely through the customer key performance
indicators.
 Improvements in customer numbers from the marketing of environmental friendly products.
 Monitor Overall Customer satisfaction rate.
 Develop an incentive plan for research and development staff who are slow to innovate.
 Expand sales to existing customers.
 Identify and implement new marketing strategies.
 Realign the organisational structure.

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© RTO Works 2019