please review the assessment and let me know how fast can you do it
8 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 ASSESSMENT 1 Course Name BSB61015 Advanced Diploma of Leadership and Management Subject/module Business Planning Assessment method Part A: Written Responses Part B: Case Study/Practical Weighting 50% Units of Competency BSBMGT617 Develop and Implement a Business Plan Instructions 1. Assessments should be completed as per your trainer’s instructions. 2. Assessments must be submitted by the due date to avoid a late submission penalty. 3. Plagiarism is copying someone else’s work and submitting it as your own. You must write your answers in your own words and include a reference list. A mark of zero will be given for any assessment or part of an assessment that has been plagiarised. 4. You may discuss your assessments with other students, but submitting identical answers to other students will result in a failing grade. Your answers must be yours alone. 5. Assessments must be submitted using Google Docs or Google Sheets, as per your trainer’s instructions. 6. You must attempt all questions. 7. You must pass all assessments in order to pass the subject. 8. All assessments are to be completed in accordance with WHS regulatory requirements. 9 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 Part A – Written Responses You have recently purchased the Cafe Paradiso, and the previous owners have provided you with their business plan which was formulated two years ago (attached). Read through the business plan and answer the following questions: 1. Briefly review and analyse the following: a. Business vision b. Business mission c. Values and objectives 2. Who are the key stakeholders in the business? 3. As the owner of the business explain how you would communicate with the stakeholders? 4. Do you believe there is a market for the business in the area? Why? 5. What are the needs of your customers? 6. How would you research and decide upon your pricing structure for the products you are selling? 7. List three key performance indicators of the business. 8. Explain the following requirements of the business: a. Financial b. Human resources c. Physical resources 9. What licences or permits would be required by the business? Notes: 10 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 Part B – Case Study/Practical Example of Business Plan 1. Write an alternative business plan including: f Description of the business f Business products and services f Marketing activities f Financial indicators f Communication plan with stakeholders f KPIs such as: • Community awareness • Quality • Sales • Workforce. Notes: - END - 11 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 Café Paradiso – Sample Business Plan 1.0 Executive Summary 1.1 Business Opportunity Brendan and Margaret Elliott have entered into negotiations to purchase a café business, called Café Paradiso, because of its great location in the Mountain Glen Shopping Centre with the highest number of passing shoppers which is supported by a large and growing local population. There are a limited number of cafés within the centre and with both Brendan’s and Margaret’s experience with having successfully operated and owned a number of cafes in Australia and overseas they will be able to increase their market share from 35% to 40% in 12 months. The competitive advantages of the business are: f location f quality of food and service f knowledge and experience of the industry f available financial resources 1.2 Product/Service Offering The main activity of the company is the operation of the Café Paradiso. Business activities include purchasing, storing, preparing, selling and serving our products to our valued customers. We expect to serve over 6,000 customers (‘dine in’ and ‘take away’) per month. The Café is open from 8:00am to 5:00pm Monday to Saturday and from 8:00am until midday on Sunday. The café comfortably seats 36 persons. The mission of the business is to satisfy customers’ needs and wants for high quality coffee, delicious nutritious meals and excellent service. Our main point of differentiation from other cafes and coffee shops in the Centre is that one of the business owners is an internationally trained chef who will be able to produce fresh, light and healthy meals each day as well as develop new menu items to meet the changing needs and tastes of people who care about what they eat. The high quality coffee will target staff and shoppers in the Shopping Centre who enjoy good coffee that simply offers good value for money at highly competitive prices 1.3 Marketing Plan The objectives of the company are to: f maintain market share through the change of ownership then grow market share to 40%, and f generate a before tax net margin of 20%. The business will achieve these objectives by: f retaining two key staff members of Café Paradiso to maintain continuity of customer relationships during the changeover 12 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 f upgrading signage to be more visually appealing f maintaining the existing price levels and controlling costs f undertaking more aggressive marketing and promotion. 1.4 Management Team Brendan and Margaret Elliott, owners of Seaview Pty Ltd are both experienced Café owners/managers having successfully operated a number of cafes in Australia and overseas. Brendan is a qualified chef and has previously worked for the Hilton and the Sofitel groups before owning his own café. Margaret has a degree in Business Management (Hospitality) and she too has worked for the Hilton group of companies and for the Rydges group. Brendan and Margaret will work full-time in the business, retain two key staff from the previous owner to maintain the continuity of relationships with customers during the transition, and will employ an additional four staff. Two of those staff will work on a part-time basis. 1.5 Financial Plan Our projected performance is summarised below: Turnover: Year 1 $536,650 Year 2 $580,000 Gross margin $378,690 (71%) Net profit (before tax) of $109,869 in the first year, growing to $131,175 in the second year of operation. The business is cash flow positive from the first month of operation Break-Even is estimated at a monthly sales level of $30,869 Return on Total Assets: 37.3% Return on Equity: 51.2% The purchase price of the business is $170,000. Total start-up cost has been calculated at $209,810 and is to be funded by way of a $104,905 bank loan and equity injection of $104,905 from Brendan and Margaret. It is proposed that the loan be paid back over a two year period from cash flow. 2.0 Business Opportunity 2.1 Business Opportunity Purchase of an established cafe within the Mountain Glen Shopping Centre that is part of a large, well developed master planned community which is still growing, incorporating a regional shopping centre, residential, retail and commercial development. The business is ideally located for a Café, being situated on the main mall with a high passing trade due to its close proximity to two national supermarket chains and a number of well known retail fashion clothing chains. There are a limited number of cafes within the centre and Café Paradiso has the best location, with the highest number of passing shoppers. 13 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 Café Parisdo’s primary customers are shoppers and staff within the Shopping Centre who take a break from their shopping or work and enjoy fine coffee or other beverages as well as for people wanting a light, quick and healthy meal that provide a good alternative to the fast food options. The success of the business is based on its excellent location, quality of management and staff, great ‘value for money’ coffee and meals and superior service. 2.2 Vision and Mission Vision – The company’s vision is ‘to be the Café of preference for Mountain Glen Shopping Centre customers’. Mission – The mission of the business is to satisfy customers’ needs and wants for high quality coffee, delicious nutritious meals and excellent service. 2.3 Goals and Objectives Goal one: maintain continuity of customer relationships during the changeover by: f Retaining two key staff members of Café Paradiso f Maintaining the existing price levels Goal two: maintain market share and sales through the change of ownership then grow market share to 40% in 18 months. The strategies to achieve this goal are: f Increase the number of customers f Increase the average sales size f Increase repeat trade from customers f Undertaking more aggressive marketing and promotion Goal three: generate a before tax net margin of 20% for the next two financial years by: f Eliminating high cost purchases f Improving cost control f Improving stock control 2.4 Nature of the Business Café Paradiso will serve take away beverages (especially fine coffee) and moderately priced good quality light meals to the casual dining market within the shopping centre precinct. The café is profitable, has a strong positive cash flow and may be seen as a strong viable and growing business. Seaview Pty Ltd was recently established for the purpose of acquiring the existing café business known as Café Paradiso, located at the Mountain Glen Shopping Centre. Café Paradiso was one of the first shops to open at the centre and enjoys an excellent location from which to operate. Seaview Pty Ltd will be acquiring the business name Café Paradiso. Brendan and Margaret Elliott, owners of Seaview Pty Ltd are both experienced Café owners/managers having successfully operated a number of cafes in Australia and overseas. Brendan is a qualified chef and has previously worked for the Hilton and the Sofitel groups before owning his own café. Margaret has a degree in Business Management (Hospitality) and she too has worked for the Hilton group of companies and for the Rydges group. 14 ADDENDUM | © 2020 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB61015 ADVANCED DIPLOMA OF LEADERSHIP AND MANAGEMENT | BUSINESS PLANNING_V7.9 Brendan and Margaret will work full-time in the business and will employ an additional four staff. Two of those staff will