Student Guide

BSBMGT617: Develop and Implement a Business Plan

Units of Competency
This module is comprised of the following unit of competency:

BSBMGT617: Develop and Implement a Business Plan

Elements of competence

1. Develop business plan

2. Monitor performance

3. Respond to performance data

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Contents
Module description .......................................................................................................................... 3
Learning outcomes ...................................................................................................................... 3
Teaching program ....................................................................................................................... 3
Course requirements ................................................................................................................... 3
Assessment methods and tasks .................................................................................................. 3
Assessment details ..................................................................................................................... 4
Assessment Task 1: Project ............................................................................................................ 5
Summative assessment .............................................................................................................. 5
Instructions: ................................................................................................................................. 5
Overview of Assessment Project ................................................................................................. 5
Marking Guide - Assessment Task 1: Project................................... Error! Bookmark not defined.
Assessment Task 2 Class Test ....................................................................................................... 8
Performance objective ................................................................................................................. 8
Assessment description............................................................................................................... 8
Procedure.................................................................................................................................... 8
Specifications .............................................................................................................................. 8
Marking Guide ................................................................................. Error! Bookmark not defined.
Assessment Task 2: Test ............................................................. Error! Bookmark not defined.
References ..................................................................................................................................... 9
Weekly schedule ............................................................................................................................. 9
Appendix 1 .................................................................................................................................... 10
Brief Description of the Organisation – The International Hotel Group ....................................... 10
Brief Description of Organisation Structure ................................................................................ 10
Key Organisational Goals .......................................................................................................... 10
Strategic Business Objectives ................................................................................................... 11
Organisational Values Statements............................................................................................. 11
Plans for Immediate Future ....................................................................................................... 11
Observations about staff............................................................................................................ 12
Sample performance data ......................................................................................................... 12

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Module description
This module 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 organisation or who take a senior role in determining
the effective functioning and success of the organisation. As such, they may oversee the work of a
number of teams and other managers..

Learning outcomes

Upon successful completion of this module, students should be able to:

 analyse and research business vision, mission, values, objectives, goals, competitors, financial
targets, management arrangements, marketing approaches and strategic, business and
operational plans
 write a business plan which includes a description of the business, products and services,
financial, physical and human resource requirements, permit and licence requirements,
marketing activity, financial indicators, productivity and performance targets for key result areas
 implement a business plan including ensuring skilled labour is available, and that training is
provided where appropriate
 monitor and respond to business performance including evaluation of performance against key
results indicators including profit and loss, community awareness or branding, environmental
impact, governance, quality, sales, triple bottom line and the workforce
 consult, communicate with and report to key stakeholders including business partners,
financiers, customers, staff and technical advisers
 provide an analysis of the strengths and weaknesses of a business plan

Teaching program

The program is of seventy (70) hours duration, comprising seven (7) hours per week for one term of
ten weeks

Course requirements

To be assessed as competent for this unit of competency you must be able to do the following:

(1) Demonstrate understanding of all learning outcomes

(2) Successfully complete and submit all tasks as requested

Assessment methods and tasks

Through consultation with industry, the following

Methods of assessment assessment methods have been deemed appropriate for
this unit.

Project This project evaluates a number of elements of competency

that will assess the candidates knowledge and skills in
developing and implementing a business plan

To answer a series of questions to demonstrate

Test understanding of techniques to research and develop
integrated business plans to achieve business goals and
objectives and also what constitutes a business plan and
what they are important to a business.

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Assessment details

Assessment Due

Assessment Task 1 Project Week 8

Assessment Task 2 Class Test Week 10

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Assessment Task 1: Project

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.

Summative assessment
The Assessment Project consists of a number of parts called ‘tasks'. It is designed as a
summative assessment tool. The Project gathers evidence across the full unit of competency. It
can be divided into parts and submitted and marked in stages or submitted and marked at the end
of the unit.

Instructions:

This Assessment Project is to be completed in addition to the learning and assessment tutorial
activities you complete in class during the course.

This Project evaluates a number of elements of competency that will assess your knowledge and
skills in developing and implementing a business plan

Overview of Assessment Project

This project is made up of 4 parts:

1. Develop business plan (1)

2. Develop business plan (2)
3. Monitor performance
4. Respond to performance data

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Project Overview
In this project you will be required to work as a senior manager within a fictitious organisation
called the International Hotel Group (Appendix 1). You will be required to develop and implement
a business plan at a time where your organisation is considering substantial expansion into new
markets.

Part 1 Develop business plan

You will need to access information about the organisations:
 current strategic directions
 vision, mission, values and objectives

Task 1
Prepare a report summarising the key information you will need to consider when writing the
business plan for the organisation or department within the organisation. You will need to include
the following:
o a review the organisation’s strategic, business and operational plans, if available
o analysis of the organisation’s business vision, mission, values and objectives
o information from consultation with key stakeholders (If completing this activity in the
classroom, your fellow learners and trainer can represent key stakeholders)

Task 2
Prepare a report on the marketing requirements for at least 2 products or services of the
organisation or new business venture for the organisation. Include a:
o Profile of customer needs
o Summary of researched pricing options

Part 2 Develop business plan

Task 1
Develop a set of performance objectives and measures for at least 2 products or services or a new
business venture of the organisation through consultation with key stakeholders.

Task 2
Write a business plan for the organisation or department within the organisation. Include the
following information:
o Executive summary – a one page overview written after your business plan is finalised
o Description of the business
o Business products and services
o Marketing analysis
o Marketing plan
o Financial, human and physical resource requirements
o Financial indicators
o Productivity and performance targets for key result areas for the business

NOTE: The following website has information and templates that may assist you in preparing your
business plan:
o www.business.gov.au

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Part 3 Monitor Performance

Task 1
a) Run a communication session to discuss your business plan with all relevant parties. (If
completing this activity in the classroom, your fellow learners can represent relevant parties)
b) Discuss the process you used to ensure all parties understood the performance requirements
and timeframes.

Task 2
a) Write a report outlining the process you will use to:
o ensure that skilled labour is available to implement the business plan
o test the performance measurement systems you will be using to support your business
plan
o ensure reports on business activity are available, user friendly and include a balance of
financial and non-financial performance
b) Develop a pro-forma to be used to report system failures, product failures and variances to the
business as they occur. Describe how you would use this pro-forma.

Part 4 Respond to performance data

Task 1
Analyse performance reports against the planned objectives in your business plan. Comment on:
o Performance against objectives
o Factors contributing to underperformance (if appropriate)
o Usefulness of performance indicators
o Suggestions for refinements of business activities or performance indicators
(If using included case study please refer to notes on summary of performance)

Task 2
a) Conduct a coaching or training session with an individual or group to address a factor
contributing to underperformance. (If completing the project in the classroom, this task can be
role-played)
b) Report on the effectiveness of this coaching or training intervention.

Task 3
Describe the continuous improvement process you will use to review the system processes and
work methods used in support of your business plan.

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Assessment Task 2 Class Test

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
The candidate must demonstrate knowledge of customer service and understand customer service
concepts.

Assessment description
This assessment requires the candidate to complete a customer service examination.

Procedure
1. When instructed to do so, answer the attached test paper.
2. You may not refer to any sources of information during this test.

Specifications

This test is to be completed without access to any other documents or materials.

You are allowed a maximum of 60 minutes to complete the test.
Your assessor will be looking for correct answers in plain English, using clear, legible handwriting.

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References
 Birt, Ian; Writing Your Plan for Small Business Success- 5th Edition 2013 Allen & Unwin.

Other resources
 Harvard Business Review
 Management (AIM Journal)
 The Successful Manager’s Handbook

Weekly schedule

WEEK TOPIC

 Overview of subject
1  Assessment set
 Elements of business plan
 Review and evaluate pre-existing strategic, business and
operational plan
2  Analyse and interpret the business mission, vision, values
and objectives
 Review assessment progress
 Review market requirements, profile customer needs and
research pricing options
3
 Develop performance objectives and measures
 Review assessment progress
 Identify financial, human and physical resource
requirements for the business
4  Legal requirements
 Writing the business plan
 Review assessment progress
 Communicating the plan
 Reports on performance (financial and non-financial)
5
 Analysing performance
 Review assessment progress
 Report failures and variances to the plan
6  Underperformance
 Coaching and training
 The completed plan
7  Continuous improvement
 Revision
Assessment Task 1 due
8
 Presentation of business plans
9  Presentation of business plans
10 Assessment Task 2 due

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Appendix 1

Brief Description of the Organisation – The International Hotel Group

The International Hotel Group

The International Hotel Group started business with two small boutique style hotels in Melbourne,
Australia. The group is owned and financed by a large consortium of international business
experts and several large investment companies. It is in a strong financial position for expansion.

Over a period of 15 years it has grown to now comprise a chain of 20 hotels across 5 different
countries in the Australasian region. This growth was a result of an acquisition of a small hotel
chain and establishment of some new properties, mainly in Australia. The group employs cultural
specialists and prides itself on its multicultural expertise that assists with its success in welcoming
guests from all regions of the World.

The Group now employs 1000 staff in full time, part time and casual positions.

The Head Office, located in Melbourne, houses the management team for the group.

The vision for the Group is to expand geographically to provide a quality boutique alternative in key
locations across the Australasian region, whilst maintaining its reputation for exceptional
personalised service.

Brief Description of Organisation Structure

The Head Office of The International Hotel Group houses the Chief Operating Officer and the
Strategic Management Team, the Chief Financial Officer and the Finance Department (finance
officers are allocated a number of hotels to service), The Human Resources Manager and
Assistant (the system is devolved with HR representatives in each hotel), The Development Team
who manage building contracts and maintenance and The Marketing and Sales Team (a team of
15 culturally capable managers and staff) and the Frontline Management team that form the main
liaison team of the company. Marketing and sales staff are constantly travelling to visit the Hotel
Groups and may be seconded to a hotel or country for 6 months in the period leading up to
acquisition or commissioning of a new hotel.

The majority of staff employed by the Hotel Group are located in the hotels. This includes Manager
and Deputy Manager, hotel coordinator and administrator/events managers and all the staff who
cook, clean and wait in the hotel.

Key Organisational Goals

The key organisational goals for the next five years are to:
1. Increase the number of properties by 15% over the next 5 years
2. Break into new markets e.g. new international regions
3. Expand into the larger hotel market
4. Maintain quality service reputation during expansion
5. Attract & retain high quality, experienced staff
6. Ensure all facilities are maintained to world class standards
7. Provide a unique hotel experience for all guests

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Strategic Business Objectives

1. The Hotel Group will focus on growing their reputation for quality service and improving whole
‘hotel experience’ for the customer
2. The Hotel Group will have demonstrated recognition as the specialist in the boutique hotel
business
3. The Hotel Group will implement design strategies to ensure consistency of experience across
the hotel chain
4. The Hotel Group will introduce a segmented approach to marketing to appeal to higher
income and medium income markets with the main focus on the higher income.
5. The Hotel Group will develop and implement a direct marketing plan to update their
marketing approach.
6. Strengthen the regular customer base by developing customer retention and loyalty
strategies.
7. Be recognised as an employer of choice with the capacity to attract and retain the highest
quality staff in the industry.
Organisational Values Statements
1. Team work is the key to success.
2. Customer service is what we do best!
3. We endeavour to show respect to all people, be supportive of our co- workers and work
towards achieving the organisational goals.
4. We are all in this together and focussed on being the best chain of boutique hotels in the
world!
5. We value clear communication and the right to express our opinions in a polite and pleasant
manner and we extend this right to others.
6. We endeavour to support others by observing all appropriate legislation and guidelines and
ensure that our hotels are safe environments.
Plans for Immediate Future
Immediate Future
The Hotel Group is investigating expansion into new regions, possibly Pacific Island Region, New
Zealand and Indonesia/Malaysia. Preliminary evaluation of marketing opportunities has identified
the Pacific and New Zealand regions as promising areas for further expansion in the next 12
months.
The Hotel Group is also planning to value add to its Hotel experience by establishing expertise for
events management, in particular conference facilities for small- medium size conferences. This is
currently not a core competence of the Group.

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Observations about staff

Traditionally the Hotel Group has been able to attract and retain quality staff at an acceptable level.
However, recently turnover has increased in the finance department and in frontline managers
across the Group. The Group has a strong culture of internal promotion, however because some
properties have not fully implemented key training programs or the performance management
system there is a shortage of staff ready to move into vacant frontline management positions.

The employment market is currently highly competitive and the Hotel Group is for the first time
experiencing difficulty in attracting the quality of staff they require.

The new emphasis on conferencing and events will also mean a need for enhancement of these
specialist skill sets and a shift in the culture of the Group towards a more corporate identity whilst
maintaining the personalised service ethos.

Management practices differ from property to property and HR have identified the need to
standardise staffing practices.

Despite the fact that the Group has experienced rapid growth accompanied by a focus on
continuous improvement, many of the staff in the more established properties are resistant to
change.

Sample performance data

The tables below provide a summary of the performance data collected for the last 12 months.

Customer Satisfaction:
Measure Summary of Performance
Current customer satisfaction level 75% of customers rated
satisfaction as met expectations
or exceeded expectations
Customer retention rate 65% of customers report they
would use our services again
Market share Currently have 5% of the
conference market
Increased total market share for
the Australasian region by 2%
(aiming for an increase of 5%)
Percentage of customer base lost in the last financial 5%
year
Percentage of current customer base that would be 20%
considered new customers
Percentage of repeat orders 25%
Customer complaints per customer 0.05

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Product/ Service Performance:

Measure Summary of Performance
New product sales dollars as a percentage of total 15%
sales
Total percentage cost of the procurement cycle per 80%
purchase order
Percentage of projects within or under budget 75%
Percentage of service deadlines met 87%
Quality of conferencing services 60% of customers rated
satisfaction as met expectations
or exceeded expectations

Cycle Time:
Measure Summary of Performance
Average time to respond to requests for conferencing 48 hours
information
Average time to respond to requests for other hotel 2 hours
services information
Average time to respond to customer call (wait time) 3 mins
Average call time/ customer 7.5 mins

Productivity:
Measure Summary of Performance
Percentage of total FTEs involved in generating and 25%
implementing new product/service ideas per $1 million
revenue
Percentage of total FTEs providing service of 30%
product/services per $1 million revenue
Total marketing cost as a percentage of revenue 10%
Average annual hours of training per sales employee 10 hours
Average annual hours of training per service 3 hours
employee
Average annual hours of training per 20 hours
supervisor/management employee
Percentage of customer calls resulting in bookings 60%
Average occupancy rate across the Group 75%

Innovation:
Measure Summary of Performance
Number of improvement ideas suggested annually 200
Number of improvement ideas implemented annually 15
Percentage of sales due to new products or product 25%
improvements

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