SIT60316 – Advance Diploma of Hospitality Management

Develop and Implement

a
Business Plan
BSBMGT617
Assessment Booklet Full Name:kunal singh

D.O.B:08/12/1995
Contents

Overview...............................................................................................................3
Assessment Task – 1 Written Questions..............................................................4
Assessment Task – 2 Practical Demonstration.....................................................8
Assessment Task – 3 Review..............................................................................16
Assessment coversheet......................................................................................19
Overview

This unit describes the skills and knowledge required to run a business
operation and covers the steps required to develop and implement a
business plan.

It applies to individuals who are running an organization or who take a

senior role in determining the effective functioning and success of the
organization. As such, they may oversee the work of a number of teams
and other managers.

No licensing, legislative or certification requirements apply to this unit

at the time of publication.

Unit Sector
Management and Leadership – Management

Prerequisite units
N/A

Credits
This booklet is not to be sold. It is produced for internal reference use only and
is designed to supplement, not replace the training material designed and/ or
delivered by staff at Skills Institute Australia. Content sources are listed in the
‘Resources’ section.
 Assessment Task – 1 Written Questions

1. Analyse and interpret the vision, mission, values and objectives of an

organisation. Use the following to assist:
a. SWOT Analysis (see page 12/13 of your Learner Guide or download a
template at:
http://www.mindtools.com/pages/article/newTMC_05.htm#business to
use)
b. PESTL Analysis (see page 13 of your Learner Guide)

SWOT analysis is a technique used to identify strengths, weaknesses,

opportunities, and threats for your business or even a specific project. It’s most
widely used by organizations—from small businesses and non-profits to large
enterprises—but a SWOT analysis can be used for personal purposes as well. 
While simple, a SWOT analysis is a powerful tool for helping you identify
competitive opportunities for improvement. It helps you improve your team and
business while staying ahead of market trend.
SWOT is an acronym that stands for: 
 Strengths

 Weaknesses

 Opportunities

 Threat

Strengths
Strengths in SWOT refer to internal initiatives that are performing well. Examining
these areas helps you understand what’s already working. You can then use the
techniques that you know work—your strengths—in other areas that might need
additional support, like improving your team’s efficiency. 
When looking into the strengths of your organization, ask yourself the following
questions:
 What do we do well? Or, even better: What do we do best?

 What’s unique about our organization?

 What does our target audience like about our organization?

 Which categories or features beat out our competitors?

 Example SWOT strength:

Customer service: Our world-class customer service has an NPS score of 90 as
compared to our competitors, who average an NPS score of 70.
Weaknesses
Weaknesses in SWOT refer to internal initiatives that are underperforming. It’s a
good idea to analyze your strengths before your weaknesses in order to create
the baseline of success and failure. Identifying internal weaknesses provides a
starting point for improving those projects.
Identify the company’s weaknesses by asking:
 Which initiatives are underperforming and why?

 What can be improved?

 What resources could improve our performance?

 How do we rank against our competitors?

Example SWOT weakness:

E-commerce visibility: Our website visibility is low because of a lack ofleading to a
decrease in mobile app transactions.
Opportunities
Opportunities in SWOT result from your existing strengths and weaknesses, along
with any external initiatives that will put you in a stronger competitive position.
These could be anything from weaknesses that you’d like to improve or areas that
weren’t identified in the first two phases of your analysis. 
Since there are multiple ways to come up with opportunities, it’s helpful to
consider these questions before getting started:
 What resources can we use to improve weaknesses?

 Are there market gaps in our services?

 What are our for the year?

 What do your competitors offer?

Example SWOT opportunities:

 Marketing campaign: To improve brand visibility, we’ll run ad campaigns on
YouTube, Facebook, and Instagram.
Threats
Threats in SWOT are areas with the potential to cause problems. Different from
weaknesses, threats are external and ‌out of your control. This can include
anything from a global pandemic to a change in the competitive landscape. 
Here are a few questions to ask yourself to identify external threats:
 What changes in the industry are cause for concern?

 What new market trends are on the horizon?

 Where are our competitors outperforming us?

Example SWOT threats:
New competitor: With a new e-commerce competitor set to launch within the next
month, we could see a decline in customer

2. List the key stakeholders you will need to consult with and the process for
consultation that you will use.

 A series of consultation meetings

 Completing questionnaires

 An open day with workshops

 Creation of budget and project schedule

 Identification of project risks

 3. Review market requirements for the product or service, profile customer
needs and research pricing options. Look at:
a. Market segmentation
b. Customer profiling
c. Researching different pricing options
Profile customer needs
Developing a thorough customer profile provides you with a structured look at
the needs and desires of those who may seek your product, the features which
they prioritize, and the messaging that will enable them to find you in the market
place. It will also enable you to anticipate and prepare for prospective demands.
To improve your understanding of customers, you ought to be attentive to them
whenever you are in contact. There are fantastic potential rewards to this:
customer loyalty can be increased, and new business could be a secondary effect
through positive word-of-mouth recommendation.
Here are three main ways that you could improve your
understanding of customers:
1. Put yourself in your customers’ shoes - think about all of the
occasions customers come into contact with your organisation, e.g.
meetings, phone calls, deliveries etc. You should constantly consider
keeping customers satisfied, through for example maintaining tidy
premises, ensuring your customer care assistants are friendly,
returning calls promptly, and delivering goods within the specific
timeframe. Everyone from the front desk to the delivery staff should
focus on exceeding customer expectations.

2. Use data – your customer database holds important information

that will benefit you in understanding their needs. You can, for
example, look for patterns regarding when customers contact you or
make orders. You could also analyse performance data such as the
time it takes to respond to orders and deliver goods.

3. Ask for customer feedback – conducting a customer satisfaction

survey often results in increased customer satisfaction, making them
feel included in the development of the business. Customer
feedback may provide information on factors you would be
otherwise unaware of, such as staffing behaviour. Offering a reward
or discount in a draw may increase participatory rates. However, you
should not seek customer feedback if it is going to be ignored.
Inform customers of any changes that have been made based on
their advice, for example using email, newsletters or a noticeboard.
 Market size
When releasing a new business plan or product, it is essential that understand the
total size of the market, or the overall available revenue. You should also consider
the accessible market size, which is the proportion of the market size that your
business may realistically sell to.
Steps you should take to gauge market size:
 You should collect information online using sources such as market
studies, journals and government reports to estimate the overall
market size. Be critical in your evaluation as there may be conflicting
reports regarding the demographics of particular areas

 What is the total numbers of buyers per year in the market?

 What is the quantity of goods per average per year?

 What is the average price per unit?

 Organisations must present the size of their accessible market in

their business plans.

These factors can create tremendous pressures on your various resources,

including, marketing and management, especially if laws impact on production
capacity or your product design, pricing and promotion.
Competitors:
 Who are you are competing with?

 What products have they recently produced?

 How long will it take competitors to respond following the release of

your new business plan?

 Are other companies likely to enter the market?

Customers:
 What are the demographics and psychographics of those you will be
targeting in your business plan?

 Are they currently using other products to fulfil a similar need?

 In what method are they currently purchasing these products?

 How can you assess the loyalty of your target customers to their
current providers?
 Pricing options:
 You will need to consider pricing and discount policies

 Set profit targets, pricing strategies and margins

 Consider presentation and display of products/services

 Is your pricing structure going to maximise your profits (how much

are your customers prepared to pay)

 Expect pricing to be at the forefront of negotiations

 What pricing strategies are your competitors are using?

 4. Develop performance objectives and measures through consultation
with key stakeholders – include key performance indicators.

Management practices have undergone many innovations. Companies have been

down-sized, delayered, and hollowed out. Newly trained and empowered
employees have implemented many innovative practices including continuous
improvement, reengineering, just-in-time manufacturing, and total quality
management. Outsourcing and exclusive supply relationships now allow
organizations to focus on core activities. Many of these innovations have
fundamentally changed the relationships between the organization and its
employees, customers, suppliers, and other stakeholders. In many instances,
arm’s-length transactions between independent parties have been replaced by
long-term partnerships in which intangibles such as service, innovation, and
flexibility are essential to success. Intangible, difficult-to-measure resources are
driving the creation of wealth in many companies. Consequently, traditional
accounting-based performance measures that rely on transaction prices are not
as useful. Most companies use formal performance measurement systems that
are extensions of their financial reporting systems. They justify this practice
because the financial reporting system provides measures that: Are generally
regarded as reliable and consistent, thereby giving a solid foundation for
developing reward and accountability structures.Mesh with the primary objective
of creating profits for owners, thereby giving a performance measurement focus
consistent with organizational objectives. However, criticisms of conventional
performance measurement systems have been increasing. Critics charge that
financial performance measures lack the requisite variety to give decision makers
the range of information they need to manage processes. For example, one study
concluded: “There’s a growing concern . . . that financial measures are inadequate
tools for strategic decision making.”1 Another study found that inadequately
designed and operated performance measurement systems have contributed to
corporate decline in the United States.2

5. Identify financial, human and physical resource requirements for the

business and write a plan for each for inclusion in the business plan

Resource use in the performance of the business

Business resources can be grouped into the following categories:
 Financial resources
  Human resources

 Physical resources

Financial
Financial resources concern the ability of the business to fund its chosen strategy.
Certain plans will place considerable strain on funding, for example, if your
organisation aims to implement new products, then distribution channels,
production capacity and working capital will require a large amount of funding.
Such strategies need to be very carefully managed from a finance standpoint.
Existing finance funds:
 Cash

 Bank overdraft

 Bank and other loans

 Shareholders' capital

 Working capital (e.g. stocks, debtors) already invested in the

business

 Current credit availability

 If needed, and affordable, further funding should be obtained.

Human
Are the quality, quantity, and distribution of the human resources within the
organisation sufficient to satisfy the needs of the chosen strategies? What skills
does the business already possess? Are they sufficient to meet the needs of the
chosen strategy?
An audit of human resources should take place and assess the
following:
 Existing staffing levels

 The expertise and experience of staff

 Job functions and roles

 Flexibility

 Distribution

 Standards of training

 Staff turnover.
Depending on the changes which will occur in your business plan, changes will
also need to be considered regarding human resources. Implementing new
products, working in new locations, or changing locations will all require
modifications of resources. There may be a need for employment, outsourcing or
joint ventures.
 Intangible factors you should consider:
 Morale

 Motivation

 Cultural attitudes

Such factors that do not have a physical presence should not be ignored. There
will be a higher chance of achieving your goals with employees who are fully
motivated and supportive of the business plan. Including all staff and keeping
them informed throughout the process will lessen the risks of these intangible
factors.
Physical
The physical resources category encompasses a wide range of operational
resources concerned with the physical capability of the organisation to deliver a
strategy. It may include factors concerning location and production facilities.
Location:
 While it may not be realistic for many organisations to change their
location with a new business plan, the current location must be
analysed in accordance with the strategic plans and decide whether
it is suitable

 If the location does not support the strategic plan, then alternative
solutions should at least be explored

 If a change in location is financially possible, then it could invigorate

employees and benefit the organisation in the long term.
 Assessment Task – 2 Practical Demonstration

Part 2: Write a business plan

Based on your analysis and review of the organisation’s vision and mission
statements and the strategic, business and operational plans, develop a new
business plan for the company.
Research
A number of important decisions will need to be made about business structure,
marketing strategies and finances in the process of writing your plan. Having
sufficient evidence at hand through research will make such decisions more
informed, and your forecasts are likely to be more accurate, a factor that could be
the difference between receiving investment and not.
Sources of research you may use:
 Internet

 Paid online databases

o more likely to provide information on market growth and

customer profiles

 Library

 Field research

o interviews could be conducted with industry experts,

competitors, suppliers, and customers, which can be utilised to
support statistics.

Time period
The time period it takes to complete a business plan depends on a number of
factors, most notably the length you intend the plan to be. There is right answer
for how long a business plan should be. This will depend on the purpose of the
plan, who the plan is intended for, whether you are starting a new business or
making a minor change, the amount of funding you are seeking etc. While typical
business plans run from 20-25 pages, more complex enterprises often produce
plans over 100 pages in length.
Either way, you should complete the plan carefully, as well as leaving time at the
end for more than one person to proofread the plan; mistakes will make it seem
unprofessional. You may decide to seek the help of a professional to assist you
with writing or editing the plan, such as a business advisor or accountant.
Be open
Existing businesses can base their projections on previous figures; however if your
business plan is for an upcoming company and you are using expected figures for
your turnover and finance, then you should make this clear.
 Analyse a business plan

1. Analyse the strengths and weaknesses of a

business plan: History & What the business does – its

products and services:

Writing a strong business plan is easier than you

might think because most business plans follow the

same basic format. If you are reviewing a plan you've

already written or taking a look at one for a friend,

knowing how to spot the strengths and weaknesses in

the business plan helps you create the most accurate

plan.

Financial data:

Data are in Excel spreadsheets, often in Excel binary (.xlsb) format, which is only
compatible with Microsoft Office 2007 and later versions. Click on the links below
to download the spreadsheet workbooks. On some computers, files may
download to your default download folder. Several are large and may download
slowly. Data are often not repeated across tables, so if you are looking for an end
of year exchange rate, for instance, start with the annual general table, and if you
do not find it there, look at the monthly general table and the monthly and daily
indicator tables focusing on exchange rates. Welcome to Historical Financial
Statistics (HFS), a free, non commercial data set on exchange rates, central bank
and commercial bank balance sheets, interest rates, money supply, inflation,
international trade, government finance, national accounts, and more. Our focus
is data from roughly 1500 to 1950, although we have earlier and later data.
Issues within the business:
. Turnover High turnover refers to an organizational issue where
employees leave their companies frequently and at high volumes.
. Productivity refers to the volume of work employees complete
successfully and according to schedule.
. Process management
Role specification
Customer satisfaction and relationships

Training:

A process by which someone is taught the skills that are needed for an art,
profession, or job. : The process by which an athlete prepares for competition
by exercising, practicing, etc

Administration:

a program of studies in a college or university providing general knowledge of

business principles and practices

Success factors:

As a professional in a leadership position, you may be interested in

understanding what business practices and professional attributes contribute
to your company's success. Identifying the key success factors of your company
may help you develop new and innovative strategies for meeting professional
goals. Understanding how to identify them may help your business increase
profits, improve the quality of your products or positively impact customer
satisfaction. In this article, we review what key success factors are, why they're
important to the development of a business, how to identify them and
examples in various industries.

Data collection:
Data collection is a systematic process of gathering observations or
measurements. Whether you are performing research for business, governmental
or academic purposes, data collection allows you to gain first-hand knowledge
and original insights into your research problem.
 Marketing analysis and strategy:
1. Determine the level of strategic analysis you’re performing. Is your
analysis intended for the corporate, divisional, or functional area (such
as marketing or sales) level? ...
2. Gather a team to help. ...
3. Use one or more analytic methods such as SWOT or PESTLE to conduct
your analysis. ...
4. Summarize your findings and present them to the team. ...
5. Devise a formal strategy based on the analysis. 

Profitability and overheads:

Expenses related to overhead appear on a company's income statement, and

they directly affect the overall profitability of the business. The company must
account for overhead expenses to determine its net income, also referred to as
the bottom line.

2. Analyse and interpret the business vision, mission, values and objectives
for the business plan

Vision and Values:

The company's vision statement shows its future view of the industry and
itself. It contains the company's goals for the business, its employees and
customers, along with its place in the world. A vision statement looks to the
future and helps create a mental image of what the ideal business looks like.
Businesses use vision statements to outline goals and appeal to talent within
the industry that can help them reach those goals.

Strategy

a plan of action designed to achieve a long-term or overall aim:

"Time to develop a coherent economic strategy
 Standards of Conduct:

A code of conduct is a set of rules and standards set by a company that instruct
employees on how to behave in the workplace. These guides establish how
employers expect team members to interact with clients, fellow staff members
and company leadership.

Objective:

: expressing or dealing with facts or conditions as perceived without distortion

by personal feelings, prejudices.

3. Perform a SWOT Analysis (see chapter 1.2 of the Student Workbook or

download a template at:
http://www.mindtools.com/pages/article/newTMC_05.htm#business to
use)
Strengths:

Strengths may be any number of areas or characteristics where a company

excels and has a competitive advantage over its peers. Advantages may be
more qualitative in nature and therefore difficult to measure (like a great
corporate culture, strong brand recognition, proprietary technology, etc.),
or they may be more quantitative (like best-in-class margins, above-average
inventory turnover, category-leading return on equity, etc.).
 Weaknesses:

Weaknesses are areas or characteristics where a business is at a

competitive disadvantage relative to its peers. Like strengths, these can
also be more qualitative or quantitative. Examples include inexperienced
management, high employee turnover, low (or declining) margins, and high
(or excessive) use of debt as a funding source.

Opportunities:

The “Opportunities” section should highlight external factors that represent

potential growth or improvement areas for a business. Consider
opportunities like a growing total addressable market (TAM), technological
advancements that might help improve efficiency, or changes in social
norms that are creating new markets or new sub-segments of existing
markets.

Threats:

Threats are external forces that represent risks  to a business and its ability
to operate. The categories tend to be similar to the “Opportunities” section,
but directionally opposite. Consider examples like an industry in decline
(which is the same as a decreasing TAM), technological innovation that
could disrupt the existing business and its operations, or evolving social
norms that make existing product offerings less  attractive to a growing
number of consumers.

Conduct a PESTL Analysis (see chapter 1.2 of the Student Workbook) Prepare
your findings in a report.

 . Know the Categories The first step in conducting a PESTLE analysis is

understanding the PESTLE model itself — in particular, the six categories.
The six broad categories of business variables that PESTLE analysis draws
from are: ...
 2. Do the Research Once you’re familiar with the six categories of PESTLE
analysis, the next step is to start doing your research. ...
 3. Put It All Together
 Assessment Task – 3 Review

Monitor and review the business plan from task 1:

1.Develop a communication plan to ensure all relevant parties understand

performance requirements and timeframes.

In project management, a communication plan is an outline of how you’re going

to communicate important, ongoing project information to key stakeholders.
Your communication plan will help your team understand who should be getting
which notifications and when to loop in project stakeholders.

2.Develop a human resource plan including any necessary training

requirements to ensure you have skilled labour to implement the business
plan.

 Human resource planning is a process that is part of the strategic plan. ... 2 The
first step in HR planning is determining current and future human resource
needs. ... 3 In the second step of the process, once we know how many people
we will need to hire, we can begin to determine the best methods for recruiting
the people .

3.Test performance measurement systems against objectives and refine

these as necessary.

Performance measurement systems can serve a range of purposes so that

judgments of what is a good system must depend on its purpose. For example,
some systems are designed essentially to give strategic direction to staff
(through targets based on measures of strategic performance), others seek to
enhance staff and organizational capabilities
4. Describe the types of reports you will use for all key aspects of the business:
balance of user-friendly financial and non-financial performance reports.

 Informational Reports The first in our list of reporting types are informational
reports. As their name suggests, this report type aims to give factual data about
a specific topic. This can include performance reports, expenses reports,
justification reports, among others.

5. Describe the methods you will use to report any system and product
failures and variances to the business plan.
Report system failures, product failures and variances
Your business plan should contain information regarding how you will monitor the
performance of your new or modified product or service. Any system or product
failures need to be reported using pre-established
procedures.
A failure reporting, analysis and corrective action
system (FRACAS) is a system you could implement to
monitor product reliability. FRACAS provides a process for
reporting, classifying and analyzing failures, and planning
corrective actions in response to those failures. 
Although initially introduced in the aerospace and defence industries, the FRACAS
method has been applied to a wide variety of systems, such as risk reduction
systems, process control systems and incident reporting systems. It delivers a
disciplined closed-loop process for solving failures at the design, development,
production and deployment stages.
FRACAS can be used to:
6. Record and capture information about failures and problems

7. Prioritise failures and problems

8. Identify and implement corrective actions to prevent recurrence of problems

9. Provide information from failure analysis and corrective actions in order to

support reliable data analysis

Benefits
The FRACAS method establishes a formal process followed by the entire
organisation that promotes the reliability of a product or process.
 FRACAS has the following benefits:
10. Provides engineering data for corrective actions and preventive actions

11. Identifies deficiencies as they are emerging

12. Helps to prevent recurrence of failures in future designs

13. Provides a centralised location for product and system failures, helping to reduce
time and effort for resolving both individual incidents as well as problems

14. It is essential for quality/ISO certifications and audits.

FRACAS can be applied at the following periods during a product

life cycle:
15. Product design stage to identify and eliminate known issues

16. Development testing to improve the product, process or service

17. Field testing

18. Production and operations

19. Product support in the field (end-user/customer).

You can apply FRACAS in a number of different ways.

Here are some of the best practices for implementing a FRACAS
system:
20. Tailor the FRACAS system to meet your co-business’ requirements

21. Define and develop your FRACAS process and then educate your team

22. Create a distinction between incidents and problems

23. Develop a system for incident reporting, failure analysis and problem resolution,
delegating roles to individuals if necessary

24. Strive to create data storage of lessons learned to prevent further failures.

When failures simply occur

As has been highlighted earlier, employees should have the required knowledge
and skills to successfully implement the business plan. However, any business
plan is likely to experience some issues along the way, including potential
problems with the product or service. This means employees must also acquire
information about identifying failures and ought to be trained properly to capture
all of the information needed for reporting it.
Variances in a business plan
In addition to “failures” in product or service, there may be variances between
what is projected in the business plan with actual figures.

Respond to performance data

Based on monitoring the implementation of the business plan in Assessment
Task 3, producing performance reports, which are indicators of how the
business plan is performing
against the performance indicators of the business:
1.Analyse the performance report produced in Assessment Task 3 against the
objectives in the business plan from Assessment Task 1.

To demonstrate the skills and knowledge required to monitor the performance

of a business plan. Monitor the performance of a business plan, through testing
and refining of the performance measurement system, and report on the
progress of the business plan in a timely and effective manner. Review the
completed business plan

1.Review the Key Performance Indicators (KPIs) from the business plan
and using analysis in step 1, refine these as necessary.

Any measurements against KPIs will need to be properly analyzed and

interpreted.
Results need to be:
 Expressed in a straightforward and clear manner

 Conclusions expressed in terms of confidence from research.

If this is to be achieved then when you employ methods beyond straightforward

KPIs, such as ‘surveys’ make sure they are carefully structured, and they avoid
covering the entire population.
You should consider:
 Adopting statistical sampling techniques

 Ensuring you stick to the purpose of the research

 Research for its own sake may prove of interest but of little value to
the organisation.

Research findings used to monitor business performance, and customer

satisfaction must address improving existing policies and procedures and shaping
and refining new ones.
Everyone likes to see a positive trend in the results of research findings as it
would be interpreted as reflecting the firm’s successful provision of professional
services and/or people management.
 1. Where underperformance is indicated, describe how
you would coach and provide training to those individuals
contributing to the underperformance.

Indicator Performance measures

Does the employee have the technical  Completed necessary training to a

knowledge required to complete their
job function?
specifically set standard
 Receive certification – the
employee may aim to complete a
course and receive certification
with the next 12 months for
example.

To who quality does the employee  Deadlines for completing work

complete their work?  Daily duties completed
 Quality control measures to assess
level of work

Is the worker dependable to the  Analysis of attendance – set a goal

organisation? percentage or set number of days
the employee must attend within a
timeframe
 Never abuses sick or annual leave

2. Describe the process for reviewing system processes

and work methods that you would use on a regular basis as
part of continuous improvement.

 Regular improvement meetings and audits conducted by teams and

individuals.

 Monitoring of department and individual performance

 Responding to industry requirements and legislation

 Amendments and developments to systems, processes, services and

products.
 Assessment coversheet

Unit code – BSBMGT617

Unit name – Develop and Implement a Business Plan
Student name – Asad Ali
Assessor name –
Trainer’s Assessment Checklist
 Advised participant of date and time of assessment
Explained purpose and consequence of assessment
Explained rights and appeals against assessment process and outcomes
Explained appropriate evidence to complete assessment
Participants special needs relating to the assessment process have been
discussed and agreed to
Task 1  Satisfactory  Not satisfactory  Not
submitted
Task 2  Satisfactory  Not satisfactory  Not
submitted
Task 3  Satisfactory  Not satisfactory  Not
submitted
Comments

Student: I declare that I have been Student signature Date

assessed in this task, in a fair and Asad Ali 25/04/2023
flexible manner. I have been
provided with feedback on my
performance
Assessor: I declare that I have Assessor signature Date
conducted a fair, valid, reliable and
flexible assessment with this
student, and I have provided
appropriate feedback