International College of Melbourne (ICM)

Assessment Task 1,2 & 3

Develop and implement

a business plan
BSBMGT617
STUDENT NAME/ID
 Table of Contents
Assessment Task 1................................................................................................................................0
PART A...................................................................................................................................................0
Executive summary...............................................................................................................................0
Description of the business (background).............................................................................................0
Business products and services.............................................................................................................0
Marketing activity – the market............................................................................................................0
Business operations...............................................................................................................................1
Management and organisational structure...........................................................................................1
Proposal.................................................................................................................................................1
Financial background.............................................................................................................................1
Risks (risk analysis)................................................................................................................................1
Conclusion.............................................................................................................................................1
PART B...................................................................................................................................................3
Strengths and weaknesses of business plan..........................................................................................3
Assessment Task 2................................................................................................................................5
Monitor performance...........................................................................................................................5
Assessment Task 3................................................................................................................................7
Case study: B&A Toy Warehouse.......................................................................................................7
Evaluating performance measures................................................................................................7
Questions..............................................................................................................................................8
Question 1.....................................................................................................................................8
Question 2...................................................................................................................................14
Question 3...................................................................................................................................15
Question 4...................................................................................................................................16

Student Name 1 ICM1234

Assessment - BSBMGT617 Develop and implement a business plan

Assessment Task 1
PART A

Executive summary

Introduction

Description of the business (background)

Business products and services

Marketing activity – the market

Business operations
– productivity and performance targets for key result areas (in consultation with key stakeholders);
include financial and non-financial performance measures; and detail resource requirements,
including human resources, capital equipment and other resources required to achieve business
goals

Management and organisational structure

Proposal

Financial background
- trading to date; and forecasts

Risks (risk analysis)

- include a section on how you will ensure skilled labour is available to implement the plan, such as a
recruitment or training strategy; Licensing; and include any permits or licences required

Conclusion

Student Name 1 ICM1234

Assessment - BSBMGT617 Develop and implement a business plan

Communication strategy
Communication objective:

Stakeholders to consult Required information Methods of Timeframe Evaluation of

communication understanding
Owners (Management all information pertaining to the business
Board) plan
Managing Director all information pertaining to the business
plan
Logistics Manager changes to logistics team; performance
measures relating to logistics; any relevant
financial information; timeframes; and
goals and objectives
Finance Manager financial information such as budgets,
expenses, changes to accounting or cash
flow procedures; time frames; performance
measures relating to finance; and goals and
objectives
Human Resources Manager changes to logistics team; performance
measures relating to human resources; any
relevant financial information – changes to
agreements, working conditions; risks
associated with changes to driver rosters
and conditions; time frames; and goals and
objectives
Sales Manager overview of changes; strategies relating to
new sales targets; performance measures
relating to sales; any relevant financial
information – budgets; timeframes; and

Student Name 2 ICM0123

 goals and objectives
Administration Manager performance measures relating to
administration; any relevant financial
information; timeframes; and goals and
objectives

Student Name 3 ICM1234

BSBMGT617 Develop and implement a business plan

PART B
Strengths and weaknesses of business plan

Introduction

Background of the business plan

Business Plan Criteria Strength Weakness

1 Cover page
2 Table of contents
3 Executive summary
4 Introduction
5 Description of the business (background)
6 Business products and services
7 Marketing activity – the market
8 Business operations – productivity and
performance targets for key result areas (in
consultation with key stakeholders); include
financial and non-financial performance

Student Name 4 ICM0123

 measures; and detail resource
requirements, including human resources,
capital equipment and other resources
required to achieve business goals
9 Management and organisational structure
10 Financial background - trading to date; and
forecasts
11 Risks (risk analysis) - include a section on
how you will ensure skilled labour is
available to implement the plan, such as a
recruitment or training strategy; Licensing;
and include any permits or licences required
12 Conclusion

Student Name 5 ICM1234

Assessment Task 2
Monitor performance

Key performance Performance Acceptable levels Timeframe for Benchmark Stakeholder

objective measure of variance to reporting
planned objectives

Student Name 6 ICM1234

BSBMGT617 Develop and implement a business plan

Assessment Task 3

Case study: B&A Toy Warehouse

You have been provided with the following information pertaining to the operation of B&A Toy
Warehouse.

Review and analyse the information provided, and answer each of the five questions in this case
study.

Evaluating performance measures

After identifying the performance measures, Tony evaluated performance by comparing current
performance against the desired level of performance. This allowed him to determine areas for
improvement to assist the warehouse in achieving its productivity goal.

Area Current performance Performance target to achieve

10% productivity improvement
Time 80 minutes 72 minutes

Average order processing

time
Cost $200.00 $180.00

Average cost to process an

order

Quality 10% Less than 1%

Error rate
Production 50 55

Average number of orders

processed per day

Student Name 7 ICM0123

Questions
Question 1
After completing a comparison of current performance against desired performance levels, identify
the corrective actions required to achieve the business plan goal of improving warehouse
productivity by 10%. What type of corrective actions do you recommend for each performance
improvement (e.g. interim, adaptive, corrective, preventative or contingency)?

Area Required corrective action

Time

Average order processing time

Cost

Average cost to process an order

Quality

Error rate

Production

Average number of orders

processed per day

Student Name 8 ICM1234

Analyse systems and processes
After implementing his strategy to monitor and evaluate performance, Tony has identified the areas
that require corrective action. Tony knows that in order to do this, he must first complete a more
detailed analysis of the warehouse systems and processes, and identify the specific steps required to
improve productivity.

Systems
Two years ago, the warehouse implemented a custom-built electronic warehouse management
system (WMS) which has had an enormous impact on productivity. When completing his review,
Tony asks the following questions to ensure that the system effectively supports warehouse
operations:

● Has the warehouse achieved the productivity goals that were to be delivered by this system?

● What is the occurrence rate of the system being out of order and impacting on the packing of
orders?
● How long does it take to train new staff members to use the system?

● How do the employees who use the system rate its ability in assisting them to process
customer orders efficiently?

Tony also uses the system to generate a series of reports that allow him to analyse warehouse
systems and processes. The reports details:

● number of orders packed per hour, per day

● time required to pack each order

● number of packers per order

● number of boxes per order.

Tony also documents the process (from order receipt to dispatch) to assist with his analysis, and to
help him to understand the exact process followed in packing an order (see the following page).

Student Name 9 ICM1234

Order received by email from customer

Order entered into Order printed and

WMS by provided to Packing
Administration team Supervisor

Order sent to Order processed

Is order for a Priority Customer?YES
Priority Customer within 1 hour of
Packing team receipt

NO
Order processed
Order placed in and packed
order packing queue

Order processed
and packed

Order sent to
distribution team

Distribution team
wrap and label
order and send to
transport dock

Transport dock team Customer receives order

load order on truck
to deliver to
customer

Tony also completes the following SWOT analysis to assist with his review.

Student Name 10 ICM1234

 Warehouse order processing systems and process
Strengths: Weaknesses:
● Warehouse Management System ● Absenteeism.
automates administrative components of ● Warehouse layout – stock difficult to
the process. access.
● Simple process for packing and ● Warehouse supervisors are all junior
distributing customer orders. and new to management roles; they
● Good orientation and induction programs require intensive coaching and support
for new staff, to ensure they get up to from Warehouse Manager.
speed quickly.
Opportunities: Threats:
● Warehouse extension to facilitate better ● Forklift licence requirements mean that
layout. not all staff can drive a forklift.
● Preferred supplier arrangement to be ● The above requirements also require
established with temporary workforce staff to have time away from packing
supplier, to ensure provision of floor to attend training.
temporary labour. ● Industrial action from Union members
due to lack of licensed forklift drivers.

Performance measures and assessment tools and techniques

At the commencement of the performance year, Tony tasked his management team to complete
balanced scorecards for all warehouse team members, and record the key result areas (KRAs) and
key performance indicators (KPIs) for each role. This was done to ensure that all warehouse
employees understood the performance measures for their role.
The scorecards were last accessed two months ago to complete annual
performance reviews.
Tony contacted the Human Resource Manager to obtain a report detailing the KRA’s, KPI’s and
performance ratings for all warehouse employees. He wants to evaluate the performance review
process and the effectiveness of these measures in assisting the warehouse to achieve its
operational plan goals.
Upon reviewing the report provided by Human Resources, Tony discovered:
● Only 80% of employees have documented KRA’s and KPI’s – 20% of employees do not know
what performance level is expected of them.
● KPI’s are not aligned with warehouse goals – employees are not clear on what the warehouse
is trying to achieve.
● Majority of KPI’s are not written using SMART format – they are not providing employees with
clear expectations on what needs to be achieved and by when.
● Performance ratings indicate that 50% of employees exceeded performance expectations for
the last performance year, which is inconsistent with warehouse end-of-year results (the
warehouse did not achieve its operational plan goals last performance year).

Student Name 11 ICM1234

Performance reports
As Warehouse Manager, Tony is tasked with the following human resource KRA’s:

Warehouse

Human Resources Scorecard

Key Result Area Metric

Absenteeism 3%
Turnover 8%

Long service leave liability $2.0 million

Annual leave liability $1.5 million

Employee engagement 85%

Employee attended training sessions 45

Warehouse Human Resources Monthly Performance Report

Report name Human Resources Monthly Report

Department Warehouse

Period 201X Year to Date

Key Result Area Target Actual

Absenteeism 3% 3.9%

Turnover 8% 9.2%
Long service leave liability $2.0 million $1.8 million

Annual leave liability $1.5 million $1.2 million

Employee engagement 85% 83%

Employee attended training 45 32

sessions

Student Name 12 ICM1234

Identifying trends
To assist Tony in understanding the warehouse operations, and to identify where he can make
improvements to achieve performance objectives and measures, Tony graphs the number of orders
processed and absenteeism for each month over the last year.

Orders processed

1600
No. orders processed

1400
1200
1000
800
600
400
200
0
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month

Absenteeism

6.00%
5.00%
4.00%
3.00%
%

2.00%
1.00%
0.00%
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Month

Student Name 13 ICM1234

Question 2
1. Critically analyse the performance against planned objectives.
a. Identify areas of non-performance.
2. Report on systems failures which contributed to these results.
a. Consider failures in communication, planning, reporting and training.
3. Review performance indicators and refine if necessary.
a. Comment on the suitability of performance indicators and what changes might be
required to achieve organisational goals.

Student Name 14 ICM1234

Question 3
1. Recommend performance improvement strategies.
2. Identify and redefine performance measures, if necessary.
3. Document a training and development strategy to address the performance of
underperforming individuals or teams.
a. Identify development needs of individuals and groups.
b. Identify training/coaching needs.
c. Present in a development plan.

Student Name 15 ICM1234

Question 4
1. Develop a strategy for reviewing systems processes and work methods at B&A Toy
Warehouse.
2. Describe how the implementation of your strategy would lead to continuous improvement.

Student Name 16 ICM1234