BSBINM601 - Assessment Workbook-Task-3

Assessment Task 3 BSBINM601 Manage information and knowledge
Make decisions on business issues

Submission details
Candidate’s name Phone no.
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
The assessment task is due on the date specified by your assessor. Any variations to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for
details.
Performance objective
You will demonstrate the skills and knowledge required to make timely decisions on
identified business issues.
Assessment description
Using the simulated business information provided, and in response to a scenario, you will
utilise risk management plans, sensitivity and quantitative analysis techniques and
consultation processes to determine acceptable courses of action and make a decision. The
decisions must be taken within organisational guidelines and be consistent with its values,
objectives and standards. A presentation will be made to CoffeeVille’s managers detailing
options available for potential courses of action and your recommendations.
Procedure
1. Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
2. Review CoffeeVille’s organisational chart in Appendix 1 to build an understanding of
the business’s reporting and command structure.
3. Review, evaluate and analyse information provided about each of the decision options
facing Coffeeville in Appendix 2.
4. Review risk management and business impact analysis information in Appendix 3.
5. Review and analyse City of Melbourne demographic information in Appendix 4.
© 2016 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 1 of 19
6. Based on the information provided in this and previous assessments, utilise statistical,
sensitivity and quantitative analysis techniques to analyse the viability of options 2 and
3 to determine the most acceptable course of action to resolve the business issue or
problem. You can use computer software or manual techniques to complete your
analysis calculations.
 You can complete as many types and number of analysis calculations as
desired to assist in further analysis and clarification of causes of the business issue
identified in CoffeeVille – your brief in Appendix 1 and evaluation of potential
courses of action to address the issue.
 You must complete a minimum of one statistical (other than trend or
correlation), one sensitivity and one quantitative calculation for this assessment.
 If applicable, the results your statistical calculations could be converted to
graphs for visual identification and evaluation of causes or courses of action.
7. Update Part 2 of the Decision Analysis Report you started preparing in Assessment 2.
Clearly document the results of additional analysis processes undertaken in this
assessment in the Report.
8. Complete Part 3 of the Decision Analysis Report based on the information provided and
the results of your research and analysis. When listing positive and negative outcomes,
consider their impact on the business as a whole and operation of the individual stores.
The events and outcomes described in the business’s risk management plans should
also be considered.
9. Review CoffeeVille simulated business documentation, including policies and
procedures, relating to decision-making and management and employee responsibilities
to assist in understanding and managing change within the business. Coffeeville’s
policies and procedures can be viewed online on Coffeeville’s intranet at
<http://simulations.ibsa.org.au/coffeeville/secure/documents.php?>.
10. Complete force field diagrams for options 2 and 3 to help you determine which course
of action to recommend to Emma and Rufus and assist their decision-making.
11. Complete Part 4 of the Decision Analysis Report by making a recommendation and
outlining your reasoning why you have come to this conclusion.
12. Answer the assessment questions in Appendix 5.
13. Arrange a time and place with your assessor to complete your presentation.
14. Present your recommendations to one of the owner/managers of CoffeeVille as per
role-play and presentation guidelines provided in Appendix 6.
Page 2 of 19
Specifications
You must submit:
● a fully completed Decision Analysis Report
● computer printouts or handwritten copies of the results gained the statistical, sensitivity
and quantitative analysis techniques used to assist the decision-making process – at
least one set of results for each type of analysis technique must be attached to the
Decision Analysis Report
● force field analysis diagrams for options 2 and 3 – please attach to the Decision
Analysis Report
● your responses to the questions in Appendix 5.
You must complete a 10–15 minute presentation.
Your assessor will be looking for your ability to:

● organise, evaluate and critique ideas and information
● build and maintain understanding of a problem of issue
● develop and write complex texts using appropriate conventions and writing styles
● use numeracy skills to perform calculations and interpret complex statistical
● use communication skills to:
○ access and share information and build and maintain effective working
relationships
○ use appropriate listening and questioning techniques
○ present complex information in formal situations in a format appropriate to the
audience and purpose
● gather and analyse data and seek feedback to improve organisational plans and
processes
● monitor and review organisational policies, procedures and adhere to legislative
requirements in order to implement and manage change
● use digital technologies effectively to manage business operations for strategic and
operational purposes
● use management skills to:
○ make high impact decisions

○ plan and manage activities that have implications for the whole organisation
○ work autonomously when making high level decisions to achieve and improve
organisational goals.
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Adjustment for distance-based learners

● No variation of the task is required.
● The presentation may be conducted via video or teleconferencing.
● A follow-up interview may be required (at the discretion of the assessor).
● Documentation can be submitted electronically or uploaded to an LMS for review.
Page 4 of 19
Appendix 1
CoffeeVille – your brief
Rufus and Emma Belcastran, CoffeeVille’s owners, have approached you for assistance. The
business has been profitable and steadily expanding for the last 4 years but recently, expenses
have started to climb and sales drop.
In the last 3 months they have started to address the issue of rising expenses by evaluating and
updating procedures and work practices in an effort to reduce costs. So far, their efforts have
not had a significant impact on expenditure and their sales revenue continues to be below
budget forecasts.
It’s January 2016 and all four stores are closed for a summer break. Emma and Rufus are
using this down time to assess their business’s operational and financial status in preparation
for the year ahead.
They have asked you to help them determine the best course of action to take and assist in the
decision-making process.
There are three courses of action that could be taken.
1. Do nothing.
2. Reduce their prices.
3. Provide take-home packaged meals and a meal delivery system.
Initially, you plan to use statistical, sensitivity and quantitative analysis techniques to analyse
the impact of Options 2 and 3. The data and information provided in the Appendices of
Assessments 1 and 2 as well as the results of any analysis processes completed in Assessment
2 may assist your analysis.
Organisational chart
Rufus and Emma
Belcastran Owner/
Managers
Store Managers
Food service
Baristas Cooks
attendants
Page 5 of 19
Appendix 2
Analysis of decision options
Based on discussions with Emma and Rufus, and further research into economic and business
climates, you have prepared the following summary for the three options under consideration.
Your brief is to only investigate options 2 and 3 further, however, any information in the
summary for option 1 can be used when determining the most acceptable course of action.
1. Do nothing
Economic indicators and industry analysts forecast a more positive economic environment
within the next 12 months with both business and consumer confidence growing.
Business and real estate analysts forecast CBD vacancy rates to drop to 9% within 12 months
and 8.5% within 18 months as local and international businesses absorb the current glut of
office space.
Aim
● To maintain reputation as provider of quality food and beverages.
● To eventually return to previous levels of profitability within the next 12 months.
Business performance data

● food sales are down 10%, beverages 12% and catering 17%.
● When combined with rising expenses, profits are down for the first half of the financial
year by 19%.
● Payroll expenses have risen 10.5% over the last 6 years, 3.2% in the last 12 months.
Concerns
● The current trend will continue, resulting in financial difficulties for the business and
the potential closure of non-profitable stores.
2. Reduce prices for food

The selling price for in-store and catering food menu items will be reduced. Beverage prices
to remain the same.
Number of food menu items to be decreased, especially those with more costly ingredients
and longer preparations times.
Staff hours to be reduced in the short term to reflect current decreased levels of sales.
Page 6 of 19
Aim
● To price match closest competitors.
● To increase the number of items sold per day by a minimum of 5% with a goal of 15%
across all food categories and hot beverages.
● To reduce total expenses to 75% of total income.

● Cost of goods for food is currently 31% of total income.
● Cost of goods for beverages is 19% of total income.
● These have both increased by 3–4% in the last 12–18 months.
● Total expenses fluctuate between 77–83% of total income.
Questions
● Number of sales required under the new pricing system to achieve current daily revenue
figures?
● Impact on revenue if increases in sales figures vary between the minimum (5%) and
maximum (15%) goals?
Menu items Current Average Average No. Current Proposed

price spend of sales per average price
range day per revenue per reduction
store day per store
Breakfast
$6–$9 $7.50 76 $570 10%
options
Sandwiches
$8–$10 $9.50 96 $912 10%
bar wraps
Hot items $9–$11 $10.00 82 $820 5%
Sweet baked
$4–$7 $4.50 45 $202.50 10%
goods
Hot beverages $3–$4 $3.85 330 $1270.50 0%
Milkshakes
and iced $6 $6 15 $90 0%
coffees
Packaged
$3–$5.50 $4.50 65 $292.50 5%
drinks
Total revenue average per day per store $4,157,50
Total average revenue per annum all stores $6,069,950
Page 7 of 19
3. Provide home packaged and meal delivery systems

The operational hours of some or all stores will be expanded to provide prepared, pre-
packaged, take-home meals to post-work traffic and local residents.
Menu items for take-home meals will consist of chilled fully prepared, heat-and-eat or finish-
at-home options. Three to four options will be offered every day with the menu changing
daily and will include at least one vegetarian and one salad option.
A limited delivery service for hot and cold meals will be offered to local residential buildings
based on the range take-home menu items. These meals will be delivered hot (or cold for
salads), ready for immediate consumption.
Business hours of the stores will be extended from 4pm to 8pm.
All daily menu items will be prepared in bulk for all stores by the cooks in their current store
locations (stores 3 and 4). Prepared menu items are transported to other stores prior to 5pm
each day.
Aim
● To expand the business into new markets.
● To enter the packaged take-home and residential market and establish their brand
before it becomes saturated with competitors.
● To meet the needs of the steadily increasing CBD residential population.
● To offer additional products and services to their existing customers.

● Food wastage is currently 10%. Major category of wastage is hot food not sold during
lunch service period.
Additional payroll costs per store for extended hours and delivery service
● Each store selling packaged meals will require minimum one counter attendant for 4.5
hours at $16.50 per hour.
● Each store offering home delivery would require a delivery driver at $17 per hour for
three hours.
Questions
● Most cost effective method of providing home delivery service to potential residential
destinations from all stores?
● Delivery costs if meals are delivered to all residential areas from Stores 3 and 4 only?
● Potential revenue from the venture?
Page 8 of 19
Delivery costs for home delivery service to targeted CBD and fringe residential areas
Residential Areas within delivery zones
Res Ability to
Res Area 2 Res Area 3 Res Area 4
Area 1 supply
Store 1 $3 $4 $5 $4 30
Store 2 $4 $3 $5 $2 20
Store 3 $5 $5 $3 $3 75
Store 4 $4 $2 $6 $5 90
Potential demand 20 40 30 30
Ability to supply = holding capacity of each store, not how many menu items are stocked.
Delivery costs for home delivery service to targeted CBD and fringe residential areas
Residential Areas within delivery zones
Res Area Ability to

Res Area 2 Res Area 3 Res Area 4
1 supply
Store 3 $5 $5 $3 $3 75
Store 4 $4 $2 $6 $5 90
Potential demand 20 40 30 30
Res Area 3 = North Melbourne and

Res Area 1 = Carlton, Collingwood
Docklands
Res Area 2 = East Melbourne
Res Area 4 = Southbank
CoffeeVille proposed dinner service
Menu item Selling Forecasted Forecasted Selling Forecasted Forecasted

price in- average demand price – average demand
store spend delivery spend
Hot menu $10–$15 $12 80 $14–$20 $17.50 120
Cold
$9–$12 $10.50 30 $14–$18 $16 30
menu
Packaged
$3–$5.50 $4.50 20 $5–$8 $7 60
drinks
Page 9 of 19
Appendix 3
Risk management plans and business impact analysis
Risk management plans

Extract from CoffeeVille Risk Management Strategy Plan
L = Likelihood I = Impact P = Priority
Lw = Low M = Medium H = High
Risk Risk assess Controls Monitoring Timeline Responsible

s
L I P
Emergence of a M M M Continuous implementation of marketing Continuous Monthly Rufus Belcastran

competitor within very strategy to highlight key points of monitoring of Emma Belcastran
close proximity. difference between us and competitors. competitors’
marketing
Increased frequency of promotional
campaigns.
campaigns.
Selective discounting.
Adjustment to marketing strategy to ensure
differentiation and appropriate positioning
of CoffeeVille in order to compete
effectively.
Page 10 of 19
Food poisoning L H H Continuous monitoring of implementation Continuous Weekly Rufus Belcastran

complaint/s from w of food safety procedures. monitoring of food Emma Belcastran
customers. safety records and Store Manager
Regular food safety refresher training
logs.
provided to all staff.
All new employees given food safety
training if they do not have a food handler’s
certificate.
Changes to local M H M Limited ability to apply controls due to lack Monitor customer Quarterly Rufus Belcastran
customer demographics of ability to influence. formal and informal Emma Belcastran
feedback. Store Manager
Apply pricing, payroll, inventory and
wastage controls to limit negative impact Monitor real estate
on financial viability. movements and
business statistics in
Expand services if changes are positive for
CBD area.
business operation.
Changes to local L H M Limited ability to apply controls due to lack Monitor business and Quarterly Rufus Belcastran
economic environment w of ability to influence. economic Emma Belcastran
environment in
Apply pricing, payroll, inventory and
catchment area.
wastage controls to limit impact on
financial viability.
Page 11 of 19
Business impact analysis

Business Importance Potential losses – per store
impact / impact
Business risks 1 = high Revenue Costs Staff Penalties Liability Reputation / Timeframe for Length of
good will impact impact
5 = low
Emergence of 3 loss $500– $500 pw Loss 1–2 NA NA NA Immediate Permanent

competitor $600 per marketing
day
Food poisoning 2 loss $500– $2,000+ Retaining Possible Possible High Immediate Minimum 6 –
complaint $600 per costs fines court 12 months
day action
Changes to 3 loss $200– $100 pw Loss 1–2 NA NA NA 2 – 6 months Dependant on
local customer $300 per marketing + nature of
demographics day? menu change
changes?
Changes to 3 Unknown Unknown Loss 1–2 NA NA Medium due 2 – 12 months Unknown do
local economic assumption to changes in to lack of
environment higher food and control
service quality
Reduced 1 loss $100– Unknown Loss 1–2 NA NA Medium due 2 – 12 months Unknown due
profitability $600 per to changes in to lack of
due to day food and control
increasing service quality
expenses
Page 12 of 19
Appendix 4
City of Melbourne demographics
The following information are extracts from City of Melbourne Daily Population Estimates
and Forecasts 2015 Update report.1
Population overview
The number of city residents is forecast to grow at around 3.2% annually during the next 16
years (from 2015 on), with more than 202,000 people calling Melbourne home by 2030.
The number of workers is forecast to grow at around 2% annually during the next 16 years,
with an estimated 526,000 people travelling to work or undertake work-related activities in
the city by 2030.
Weekday daily resident population estimates and forecasts

Living in the city continued to gain momentum over the past two years. It is estimated that
more than 122,000 people – including under 15 years of age – resided in the municipality in
2014. This represents a 15.9% growth from 2012 which is an equivalent of 16,788 additional
residents in the city. The top five largest growth SA2s (Statistical Areas Level 2) are:
● The Melbourne CBD with 6,979 additional residents (up by 29.2%)
● Southbank with 3,279 additional residents (up by 24.2%)
● Carlton with 1,872 additional residents (up by 12.2%)
● Docklands with 1,713 additional residents (up by 26.6%)
● North Melbourne with 1,703 additional residents (up by 9.9%)
Total daily population estimates and forecasts

Municipality of Melbourne (all areas including CBD and fringes)
Year Residents Workers
2011 100,000 376,000
2012 105,000 380,000
2013 116,000 382,000
2014 122,000 386,000
2015 126,000 392,000
1
City of Melbourne, 2015, Daily Population Estimates and Forecasts, City of Melbourne, available
online, viewed January 2016, <https://www.melbourne.vic.gov.au/SiteCollectionDocuments/daily-
population-estimates-and-forecasts-report-2015.pdf>.
Page 13 of 19
2016 135,000 397,000
2017 137,000 407,000
2018 141,000 418,000
2019 144,000 428,000
2020 148,000 439,000
Estimated Resident Population Growth Rates between 2004 and 2014

by SA2
Source: ABS, Resident Population Growth, Australia 2004 to 2014 (cat. no. 3218.0)
Page 14 of 19
Appendix 5
Assessment questions
1. Briefly discuss how you ensure you have sufficient, valid and reliable evidence and
information available to support determining the best course of action to take and making a
final decision.
2. Briefly outline:
● specialists or other relevant groups or individuals who could assist in your analysis and
decision-making process
● what types of assistance, advice or information they can provide.
3. a) Who has the authority to make the final decision about what course of action to take to
address the identified business issue?
b) Why do they have this authority?
c) Do they have the legal authority to make this decision?
Page 15 of 19
4. What organisational policies and procedures must be considered when making this
decision?
5. Briefly describe how your recommendation to Emma and Rufus is consistent with
CoffeeVille’s values, objectives and standards.
6. You have been given this project in early January. Emma and Rufus are aware that,
depending on the course of action chosen, it could take some time to implement the necessary
changes and have an impact in the business’s financial status.
They would prefer the analysis process and recommendation to be made as soon as possible –
by end of February if possible. They have set end of March as the absolute latest timeframe
for this project to be concluded.
Develop a basic planning timeline to present to Emma and Rufus, outlining timings for the
identification, analysis and decision stages and a completion date for the resolution of the
business problem or issue.
Page 16 of 19
Appendix 6
Presentation of recommendation
Emma and Rufus would like you to present a summary of your research and recommendation.
They wish to ask you questions during or after your presentation to clarify any details and
discuss the impact of the recommendation on their business.
You need to plan and deliver a 10–15-minute presentation to Emma and Rufus on your
analysis and proposed course of action.
1. Prepare a business presentation in response to the scenario described throughout
Assessments 1, 2 and 3. The presentation can be delivered as follows.
a. As a presentation to your class.
b. As a role-play to two course participants undertaking the role of Emma and
Rufus, CoffeeVille’s owner/managers.
c. As a presentation to your assessor undertaking the role of one of CoffeeVille’s
owner/managers.
2. Determine and prepare to discuss:
a. A brief overview of the business issue and analysis techniques used to identify
the issue, determine decision options and analyse the viability of potential
courses of action.
b. Reasoning for recommended course of action, such as:
i. what data and information supports the recommendation
ii. advice provided by internal or external specialists or consultants
iii. how the recommended course of action is consistent with the business’s
values, objectives and standards
iv. any identified risks.
3. Deliver the presentation to Emma and Rufus. Ensure you deliver your presentation in
accordance with deliverables outlined above and quality specifications listed at the start
of this assessment.
4. You may use communication tools to support your presentation, if desired. Tools could
include written handouts, statistical graphs, analysis results, budgets, other financial
information or a PowerPoint presentation.
5. Obtain formal or informal feedback from your presentation participants relating to your
recommended course of action. Formal feedback can be obtained by asking
presentation participants to complete the presentation feedback form below. Informal
feedback can be gathered from questions asked and discussions undertaken during the
presentation.
Page 17 of 19
Presentation questions
The following questions can be asked during or at the conclusion of the presentation by
participants undertaking the roles of CoffeeVille’s owner/managers, Emma and Rufus.
Alternative or additional questions can also be used based on the context and content of the
presentation.
1. Is this the only problem or issue CoffeeVille faces? During your research and analysis
did you identify other possible concerns?
2. From a financial perspective, which of the potential courses of action is the riskiest for
the business? What do you base this opinion on?
3. How will this decision affect our customers and employees in the short- or long-term?
Decision effect in great way to our customers like by decision that we make offer them
quality product and long lasting thing and for the employees in decision will help them
to work efficiently and have chance to get more experience.
4. What timeframe do you recommend for implementation of this course of action?
The timeframe need for this action is required about 3-4 months in beginning but fully
functional implementation required about 6 months.
Presentation formats
Class presentation
Class participants can be assigned specific questions prior to the commencement of the
presentation or encouraged to ask questions and seek clarification on the information provided
during the presentation.
Role-play
Two participants are selected from the class to undertake the roles of Coffeeville’s
manager/owners, Emma and Rufus. Questions asked by participants in each role should
reflect each owner’s role within the operation of the business.
Emma
Emma’s main business focus is marketing the business. She will be evaluating the information
and suggested courses of action based on how it will affect the business’s brand and image, its
impact on customers, how each action will either expand or contract their current market
share.
Rufus
Rufus has been heavily involved in the overall operation of the business’s stores. He will be
evaluating the information and suggested courses of action based on their impact on the
business’s short- and long-term financial viability, including revenue, expenses, staffing.
Rufus is keen to gain new customers while retaining their existing customer base.
Assessor presentation
Assessor can ask recommended questions or modify to reflect information provided during
the presentation. Questions asked should seek clarification and encourage the presenter to
discuss the presentation’s content.
Page 18 of 19
Presentation evaluation
Participants involved in role-plays and/or assessment of the candidate’s presentation can use
the following criteria to assist in providing feedback.
Did the candidate competently Feedback

demonstrate the following skills?
Use appropriate language, tone and

pace for a management presentation?
Select an appropriate presentation

style (level of formality) for a
management presentation?
Provide information at an appropriate

level of complexity for its intended
audience?
Use appropriate listening and/or

questioning techniques?
Encourage discussion to clarify

information, courses of action or
recommendations?
Use a variety of communication

techniques or tools to share
information?
Presentation feedback form

Provide formal feedback relating to any information, courses of action or recommendations
made during the presentation.
What feedback can you give the candidate regarding their analysis of the business issue,
potential courses of action suggested or final recommendation?
Page 19 of 19

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Assessment Task 3 BSBINM601 Manage information and knowledge

Make decisions on business issues

Candidate’s name Phone no.

Assessor’s name Phone no.

Assessment date/s Time/s

You must complete a 10–15 minute presentation.

Your assessor will be looking for your ability to:

● build and maintain understanding of a problem of issue

● use numeracy skills to perform calculations and interpret complex statistical

● use communication skills to:

○ make high impact decisions

Adjustment for distance-based learners

● The presentation may be conducted via video or teleconferencing.

● A follow-up interview may be required (at the discretion of the assessor).

● Documentation can be submitted electronically or uploaded to an LMS for review.

● To eventually return to previous levels of profitability within the next 12 months.

Business performance data

2. Reduce prices for food

Business performance data

● Cost of goods for beverages is 19% of total income.

● These have both increased by 3–4% in the last 12–18 months.

● Total expenses fluctuate between 77–83% of total income.

Menu items Current Average Average No. Current Proposed

Hot items $9–$11 $10.00 82 $820 5%

Hot beverages $3–$4 $3.85 330 $1270.50 0%

Total revenue average per day per store $4,157,50

Total average revenue per annum all stores $6,069,950

3. Provide home packaged and meal delivery systems

● To offer additional products and services to their existing customers.

Business performance data

● Potential revenue from the venture?

Residential Areas within delivery zones

Residential Areas within delivery zones

Res Area Ability to

Res Area 3 = North Melbourne and

CoffeeVille proposed dinner service

Menu item Selling Forecasted Forecasted Selling Forecasted Forecasted

Hot menu $10–$15 $12 80 $14–$20 $17.50 120

Risk management plans

Risk Risk assess Controls Monitoring Timeline Responsible

Emergence of a M M M Continuous implementation of marketing Continuous Monthly Rufus Belcastran

Food poisoning L H H Continuous monitoring of implementation Continuous Weekly Rufus Belcastran

Business impact analysis

Emergence of 3 loss $500– $500 pw Loss 1–2 NA NA NA Immediate Permanent

Weekday daily resident population estimates and forecasts

● Southbank with 3,279 additional residents (up by 24.2%)

● Carlton with 1,872 additional residents (up by 12.2%)

● Docklands with 1,713 additional residents (up by 26.6%)

● North Melbourne with 1,703 additional residents (up by 9.9%)

Total daily population estimates and forecasts

Year Residents Workers

2011 100,000 376,000

2012 105,000 380,000

2013 116,000 382,000

2014 122,000 386,000

2015 126,000 392,000

2016 135,000 397,000

2017 137,000 407,000

2018 141,000 418,000

2019 144,000 428,000

2020 148,000 439,000

Estimated Resident Population Growth Rates between 2004 and 2014

b) Why do they have this authority?