BSBINM601 Manage knowledge and

information
ASSESSMENT 1

Student Name: Student ID No:

Group Student Name:

(other member of Group)

Trainer/Assessor Name: Term and Year:

Course: BSB60215 Advanced Diploma of Business

Unit Code and Name: BSBINM601 Manage knowledge and information

Overview of Assessments

Assessm
Assessmen Assessment
Description ent
t Task method/s
number

Obtain Candidates are required to source, gather and review data and 1 Project work
informatio information and utilise formal and informal networks to identify Written
n on and analyse business problems and issues. Candidates prepare report
business a written report for management supported by a portfolio of
Portfolio
issues researched information.
Analyse Candidates are required to identify patterns or emerging trends, 2 Project work
informatio determine the causes and their potential effect on the business Written
n and by using statistical analysis techniques. report
knowledge
Portfolio
Make Candidates are required to utilise risk management plans, 3 Project work
decisions sensitivity and quantitative analysis techniques and consultation Written
on processes to determine acceptable courses of action and make report
business a decision. Candidates will then make a presentation to
Portfolio
issues management outlining their recommendations.
Presentation

Disseminat Candidates are required to ensure up-to-date, relevant and 4 Project work
e accurate information is documented and disseminated Written
informatio according to organisational needs, a communication plan and report
n within legislative requirements. Candidates are required to
Portfolio
design, test and update information systems used to capture,
document or disseminate information for decision makers.

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In this Unit of Competency, to achieve the overall grade of “Competent” a candidate must satisfy all assessment items AND must satisfy all
Elements and Performance Criteria. Candidate may be reassessed and given feedback within the time period allocated in case of non
satisfactory performance in any of the tasks.

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Assessment 1: Obtain information on
business issues
Assessment Instructions
Prior to assessment:
 Candidate needs to discuss with assessor for any individual needs.
 Candidate must attain permission to use their work place document or any other type of
evidence. They also should discuss with trainer and have all work place documents ready prior to
assessment.

Assessment Resource
● Access to a computer lab with Microsoft Office.

● access to relevant business technology

● access to authentic business information and documentation, or simulated business

documentation.

Instructions for Candidate

This task requires the candidate to source, gather and review data and information and utilise formal and
informal networks to identify and analyse business problems and issues.
The candidate is required to review internal business and external environmental data and information,
identify sources of information that will support decision-making and test their validity and reliability, and
use formal and informal networks to gather information. They will prepare a written report and answer
questions.

Arrange a time with the candidate to discuss the portfolio of work and establish authenticity.

Performance objective
You will demonstrate the skills and knowledge required to obtain information to identify and analyse
business issues.

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Assessment description
Using the simulated business information provided in this task, and in response to a scenario, you will
source, gather and review data and information and utilise formal and informal networks to identify and
analyse business problems and issues.

Assessment Task
1. Read the scenario information provided under CoffeeVille – your brief in Appendix 1.
2. Review and familiarise yourself with CoffeeVille’s general business information in Appendix 1.
3. Review and evaluate business performance data and information in Appendix 2.
4. Review and analyse customer and marketing information in Appendix 3.
5. Review and analyse management and staff meeting summaries in Appendix 4.
6. Gather, organise and evaluate the data and information provided in the appendices to identify and
analyse CoffeeVille’s potential business problem/s or issue/s.
7. Test the validity and reliability of data and information you have used to identify and analyse the
potential business problem/s or issue/s in Step 6. Check sources of information provided and their
credibility and reliability. Determine if any are ambiguous or contradictory.
8. Choose one of the business problem/s or issue/s you discovered in Step 6. Identify types and
sources of information required to determine appropriate courses of action and support decision
makers for your selected issue or problem.
9. Access and review information available through formal and informal networks relevant to the
business problems or issue. Networks could include formal and informal industry networks, internal
business networks, social media or internet communities of practice.
10. Prepare a short written report for Rufus and Emma. The report should include the following
information.
● A brief description of all the business problems or issues you have identified.

● An explanation of how you reached this conclusion including a description of how the data and
information supports your conclusion?
● A list of the types and sources of data and information required to determine potential causes of
the problem/s or issue/s and to support decision-making for one of the problems or issues you
identified.
● Gather information from at least two sources on your list and briefly describe how they support
decision-making. Attach copies of gathered information to your report.
○ What processes or techniques were used to test the validity and reliability of data and
information you have gathered?
○ What data or information was rejected as it was deemed contradictory or ambiguous?
● Describe the formal and informal networks that:

○ assisted in identifying and analysing the business problem or issue;

○ may help establish the causes of the problem;

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 ○ or can be used to determine and analyse appropriate courses of action.
● Copies of data and information you have researched (other than those provided in the Appendices)
that is relevant to your analysis process and identification of the business problem/s or issue/s
should be attached to the report.
11. Submit the written report and any research information (if applicable) to your assessor as per the
specifications below.

Specifications
You must submit:
● a written report containing all information as specified in Step 10 above

● any researched information that is relevant to or supports the report’s activities.

Your assessor will be looking for demonstration of 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 interpret complex statistical and researched information

● gather and analyse data and seek feedback to improve organisational plans and processes

● use digital technologies effectively when sourcing, gathering and analysing information to assist in
the management of business operations.

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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. However, recently expenses have started
to climb and sales are dropping. 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 the
down time to assess their business’s operational and financial status in preparation for the year ahead.
They have asked you to help them analyse their business and the external environment to identify
potential reasons for their declining sales. Initially, they want you to review and analyse their business
data and information to determine if there is a cause for their concern – what problem/s or issue/s there
are and what information is needed to conduct further analysis to enable decisions to be made.

CoffeeVille – general information

The business
CoffeeVille supplies high quality, fair trade coffee and superior hot and cold gourmet food and beverages
to customers in Melbourne’s central business district (CBD). Customers are served by well trained,
knowledgeable staff who provide fast and friendly service. It is owned and managed by partners Emma
and Rufus Belcastran. They opened their first store in 2009 and have since expanded to four coffee
shops in and around the CBD.

Business goals and objectives

● Increase revenue through targeted marketing campaigns.

● Control direct and indirect operational costs.

● Maintain superior product and service standards.

● Establish CoffeeVille brand as an ethically and environmentally responsible company.

● Maintain highly trained and motivated staff.

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Expansion timeline
2009 Opened first store in CBD

2009–2011 Consolidated position and market share, sales and profits steadily
grew as reputation spread.

July 2012 Opened second store two blocks south of original store in CBD. This is
the smallest of the stores located in a busy retail and professional
area of town.

July 2013 Opened third store four blocks east of original store in CBD. Slightly
larger than the original CoffeeVille store, it is located in the heart of
the business and legal district of the CBD and in the path of foot
traffic from Southern Cross Station.

July 2014 Opened fourth store on the fringes of the CBD. This is their biggest
store with a larger sit-down area than the other stores.

The CoffeeVille team

Initially, partners Emma and Rufus Belcastran shared responsibilities for the management of all areas of
their business. With the organisation expanding, Rufus has taken on the role of Operations Manager
across all four stores while Emma is concentrating more on marketing the new and existing stores.
The business now employs:
● 3 full-time café managers

● 4 fully trained baristas

● 6 full-time and 12 casual food service attendants

● 2 full-time cooks.

Market analysis
The profile for a CoffeeVille customer consists of the following geographic, demographic, and behaviour
factors:
● Overview of the CBD

○ Large percentage of office workers (80% of daytime trade).

○ Area population growing at 8% per year.
● Geographic

○ Our immediate geographic target is the area of within 500 metres of the cafe.
○ The total area population is estimated at 45,000.
● Demographics

○ Male and female.

○ Ages 20–60; this is the age-group that makes up 83% of the available daytime market.
○ Full-time employment.

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 ○ An income over $50,000.
● Behaviour factors

○ Eat out most times for lunch in a week.

○ Tend to patronise fast service cafes.
○ Enjoy a high quality meal.
○ Value ethical and sustainable practices.

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Appendix 2
CoffeeVille business information

Business environment
Internal environment
● Staff turnover has been relatively low in the last 18 months once the initial staff training period was
completed for the fourth store.
● Menus for all stores have been updated in the last 12 months, keeping old favourites and
introducing new dishes from around the world.
● Hot dish options in the external catering menu have been modified to reflect these changes while
cold options have remained essentially the same.

External environment
● Utility expenses have risen steadily over the last 18 months due to regular price rises. The business
is currently implementing cost saving measures.
● Wages have gone up 15% due to the need to pay higher wages for trained, experienced baristas
due to skills shortages.
● Rents for each of the properties has rise between 10 to 18% in the last 12 months and is expected
to rise again early in 2016.
● Coffee bean prices rose rapidly in early 2014 and stayed high until the end of the year. Prices
eased slightly in early 2015 but are expected to rise again later in the year due to lower worldwide
production and increased demand. The retail price for all coffee menu items in all stores has been
raised twice in the last 12 months.
● Recently, red meat prices have started to rise with increases of up to 20% in the last six months. So
far, these price rises have been absorbed but Emma and Rufus plan to raise menu prices for meat-
based hot dishes in the cafe and catering menus soon.

Business performance
General trends
● Sales for first 6 months of 2015 are down across all sales categories and stores. Overall, 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%
● After opening a year ago, the fourth store is slowly building customers but is still not performing to
forecasted levels. Most of the marketing budget and Emma’s efforts have been focused on the
fourth store.
● Productivity has increased with staff able to serve more customers per hour, per employee. This is
partly due to barista coffee preparation speeds increasing after all barista staff completed an
advanced barista course in Jan 2015.
● Savings made in payroll and cost of goods due to productivity gains have been offset by rising
wages and food prices.

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Store 1
● Foot traffic is down by 5%.

● Sales are generally steady but not growing as planned. Income is hovering just under budget while
profits are 10–15% below budget due to increased expenses. Emma and Rufus are not overly
concerned yet as the budget forecast figures were based on a 5% increase in sales.

Store 2
● Foot traffic down by 10%.

● Food and beverage sales have been consistently under budget for the July to December period with
budget variances steadily increasing.
● External catering sales are down significantly, especially for November (21%) and December (23%)
which are normally the business’s busiest periods. Catering have now been under budget for the
last 18 months at this store with the budget variance rate steadily increasing.

Store 3
● Foot traffic down 15%.

● Food and beverage sales have been under budget for the July to December period with the highest
budget variance figures for all stores.
● External catering sales have been consistently under budget for the July to December period with
December down 16%. Catering has now been under budget for the last 12 months at this store
with the budget variance rate hovering between 13% and 16%.

Store 4
● Foot traffic up marginally by 0.05%

● Food and beverage sales are a consistent 3–4% under budget.

● External catering is down 5% on average with December bucking the trend and meeting budget.

● A new competitor is due to open 100 metres away in February 2016.

● Sales have been very flat and not grown as hoped for this store over the last 12 months despite
several promotions and advertising campaigns in the local area.

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Assessment 1 BSBINM601 Manage information and knowledge

Financial year July 2014 – June 2015

July–December 2014

Sales $ July Aug Sept Oct Nov Dec

Food sales 285,668 279,805 273,942 262,580 250,078 199,251
Beverage sales 191,199 190,163 189,126 187,054 182,650 179,523
External catering 82,360 83,540 81,980 81,480 77,500 74,370

Total income 559,227 553,508 545,048 531,114 510,228 453,144

Total expenses 482,190 470,934 483,431 451,683 461,746 404,986

Net profit/loss 77,037 82,574 61,617 79,431 48,482 48,158

Jan–July 2015

Sales $ Jan Feb Mar April May June Year Total

Food sales 203,894 221,209 238,525 245,476 259,742 262,803 2,982,972
Beverage sales 181,220 185,263 187,263 188,263 189,560 191,208 2,242,492
External catering 57,284 60,926 67,853 68,853 51,853 49,137 837,136

Total income 442,398 467,398 493,641 502,592 501,155 503,148 6,062,600

Total expenses 413,064 421,865 442,733 447,512 464,198 478,630 5,422,972

Net profit/loss 29,334 45,533 50,908 55,080 36,957 24,518 639,629

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Assessment 1 BSBINM601 Manage information and knowledge

Financial year July 2015–June 2016

July–December 2015

Sales $ July Aug Sept Oct Nov Dec

Food sales 231,391 226,642 231,865 227,105 202,563 154,300
Beverage sales 148,065 147,262 153,192 158,323 135,088 129,705
External catering 60,207 60,358 56,476 55,457 52,111 47,597
Total income 439,663 434,262 441,533 440,885 389,762 331,602
Total expenses 373,713 364,780 366,472 374,752 339,093 288,494
Net profit/loss 65,949 69,482 75,061 66,133 50,669 43,108

Budget variance report – All stores

Summary of variance results for comparisons of budget to actual income for the period 2011–2015
A positive variance indicates the percentage above budget, a negative figures indicates the percentage below budget.

Financial year 2011-12 2012-13 2013-14 2014-15 2015-16

Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec Jan-Jun Jul-Dec

2011 2012 2012 2013 2013 2014 2014 2015 2015

Food sales 5% 8% 7% 12% 8% 1% -3% -8% -10%

Beverage sales 8% 2% 4% 5% 5% -2% -4% -5% -12%
External catering 12% 4% 7% 2% 5% 2% -8% -11% -17%
Total income 8% 5% 6% 6% 6% 1% -5% -8% -12%
Net profit/loss 7% 4% -1% 6% 6% -4% -5% -11% -13%

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Assessment 1 BSBINM601 Manage information and knowledge

Appendix 3
Customer and marketing information

CoffeeVille customer information

Customer spending patterns

Average Average
Item Variance Comments
spend - 2011 spend - 2014

Coffee $3.35 $3.85 15% While average spend

has risen, Emma and
Food - $8.65 $9.80 13% Rufus feel this is a
takeaway result of general
price rises, not
Food – sit $9.20 $10.45 14%
down customers
purchasing more
Catering $18.00 $22.00 22% items.

Summary customer feedback forms Jan–Dec 2015

● Thanks for your friendly smile every morning. I’ll miss that when we move.

● Great coffee, great service.

● Can you open a store near the new office in Fairfield?

● Loved the vegetarian frittata!

● Best mocha I’ve had in weeks!

● Do you deliver to Richmond? I’m going to miss your coffee and healthy salads!

● Expensive coffee

● Service staff always happy to see you

● Vote 1 Karlie best barista in town!!

● Going to miss you all

● Good coffee but expensive compared to Zelda’s.

Summary customer comments Facebook Jan–Dec 2015

● Lunch time! Best focaccia ever!

● Love that you guys do free trade.

● Look at the art on this coffee!

● Just wanted to say farewell. Thanks for excellent coffee every morning. I’ll miss your smiles. Any café
recommendations in Canterbury?
● Lunch with the crew at CoffeeVille. Something for everyone, even our veggie sisters.

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Assessment 1 BSBINM601 Manage information and knowledge

● A big thank you from everyone at Milson Financial. Today’s our last day  If I get another job in the
city I’ll definitely be coming back!
● Thanks for my birthday coffee. Was looking forward to it all morning!!

Loyalty Club membership

Membership activity from December 2014 to May 2015.

Membership Total
Members Active
Inactive^ Cancelled members
2014 * members
2015 #

Store 1 48 43 5 0 48

Store 2 28 20 5 3 25

Store 3 32 21 6 5 27

Store 4 19 15 2 2 17

Total 127 99 18 10 117

78% 14% 8%

Analysis: Number of inactive and cancelled member has increased 15%

from previous period.

*Total members as at December 2014

^ Inactive = No account activity for a minimum of 3 months
#Total members as at May 2015

Action Marketing survey results December 1–4, 2014

Action Marketing conducted a survey in the area within the boundaries of the three CBD stores. A summary
of feedback received includes the following.
● Customers are buying less food over summer as they are trying to be healthy and spend less money
in the lead up to Christmas.
● A number expressed concern about the possibility of losing their jobs due to ongoing poor financial
performance of their employer. Many were trying to save money in case this occurred.
● 38% of customers said they had eaten at CoffeeVille but considered it a treat due to prices.

● Coffee was consistently rated as excellent; however, 58% of respondents who purchased coffee from
CoffeeVille said it wasn’t their primary source.
● Customers who regularly purchased food and/or beverages from CoffeeVille supported their
environmental and socially responsible position.

Key survey takeaways

● price ● general economic concerns

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Assessment 1 BSBINM601 Manage information and knowledge

● business environment in CBD ● healthy lifestyle and eating habits.

(closures)

Survey results

Question Responses

Have you ever visited a Yes 67% No 33%

CoffeeVille store?

Which store do you visit? Store 1 49% Store 3 27%

(Can choose more than
Store 2 43% Store 4 12%
one store)

How times a month, on 1–4 times 25% 10–15 times 31%

average, do you visit the
5–9 times 27% Most days 17%
coffee shop?

What is your purpose for For the coffee 69% To meet others 22%
visiting CoffeeVille? (Can
Get something to eat 46% To relax 15%
choose more than one
store) To read the papers 18%

How would you rate the 5 = Excellent 53% 2 = Fair 3%

overall friendliness of the
4 = Very good 32% 1 = Poor 0%
staff? (with 5 being the
most friendly) 3 = Good 12% 0 = Awful 0%

How do you rate the price 5 = Excellent 22% 2 = Fair 15%

of your food and/or
4 = Very good 28% 1 = Poor 6%
beverages? (with 5 being
an excellent price) 3 = Good 29% 0 = Awful 0%

How do you rate the 5 = Excellent 33% 2 = Fair 2%

variety of products? (with
4 = Very good 32% 1 = Poor 0%
5 being the best variety)
3 = Good 33% 0 = Awful 0%

How do you rate the 5 = Excellent 50% 2 = Fair 4%

product quality? (with 5
4 = Very good 28% 1 = Poor 0%
being excellent quality)
3 = Good 18% 0 = Awful 0%

Have you found your wait No, very fast 48% Waited ages 2%
in line to be too long for
No, pretty quick 32% Very slow 0%
your satisfaction?
A bit slow 18%

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Assessment 1 BSBINM601 Manage information and knowledge

Appendix 4
Management and team meeting summaries

Meeting summaries
Management team meeting October 31st, 2015

Topic: External catering Christmas bookings

Rufus – Owner/Operations Manager
● Catering bookings for corporate Christmas parties down across all stores for Nov
and Dec.
● Stores 2 and 3 under sales budget forecasts by 20–30%.

Emma – Owner/Marketing
● Made phone calls and personal visits to all previous clients who have not
rebooked this year.
● Budget constraints common reason for not booking.

● Some using another, cheaper caterer, some are not having a catered Christmas
event.

Sarah – Manager, Store 1

● Staff from two businesses CoffeeVille catered for last year have mentioned
management are only holding self-catered morning/afternoon tea for staff, no
formal Christmas party. Both businesses employ 20–30 employees.

Topic: 2016 budgets

Rufus – Owner/Operations Manager
● All budgets for 2016 have been adjusted to reflect sales and expenses trends.

Team meeting – Store 3 November 4th , 2015

Topic: Sales trends, customer feedback

Rufus – Owner/Operations Manager
● Sales down across all revenue streams.

● Need a sales push to capture foot traffic in city for Christmas shopping.

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Assessment 1 BSBINM601 Manage information and knowledge

Leunie – Manager, Store 3

● Early morning period slower, less coffee and breakfast sales from train station
traffic.
● Lunch time food trade from office staff down. Starting Christmas shopping during
lunch period?

Staff comments
● Not as many groups dining in store at lunch time, more singles.

● Customers choosing cheaper items, chatter about money being tight.

● Trying to push coffee/cake and meal/water deals but uptake low.

● Several regulars from McKinnon’s say staff Christmas gathering being held off-
site this year, no external catering booked – we catered for them last year.
● Hot food sales down, higher wastage. Preference for salads and sandwich bar.

● Received queries about getting Paleo options added to the menu.

● Sales manager at XX department store said retail sales are sluggish compared to
this time last year. Lots of looking but not buying. Hoping it will pick up soon.
● Lots of general chatter about economic concerns, terrorism, home interest loan
rates possibly going up after Christmas. General feel of customers is negative.
● Staff expressed concern about job security due to lower revenue figures.

Management team meeting December 3rd, 2015

Topic: Revenue concerns

Rufus – Owner/Operations Manager
● Revenue across all stores under budget.

● Store 2 food and catering of real concern.

● Store 3 food, beverages and catering all significantly under budget.

Emma – Owner/Marketing
● Shifting marketing focus from Store 4 back to CBD stores, focus on Stores 2 and
3.
● New campaigns to start when offices reopen in Jan 2016.

Sarah – Manager, Store 1

● Customers not spending as much, average daily spend per customer down
compared to previous years.

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Assessment 1 BSBINM601 Manage information and knowledge

Christos – Manager, Store 2

● Two businesses within their building to close permanently at Christmas.

● Missing a number of regular customers at the register.

Leunie – Manager, Store 3

● One 50+ employee business in building next door moving to new offices out of
CBD.
● One 20+ employee financial advisor have moved to new office in suburbs as rent
is cheaper.
● Two For Lease signs for offices in buildings in same block as cafe.

● Lots of chatter from clients working for professional services companies about
business retraction, possible redundancies.

Jordie – Manager, Store 4

● Nearby residential towers nearly completed construction, due to open in
February, potential to grow morning traffic.
● Due to higher residential occupancy near store, raised potential for take away
dinner trade. Fresh cooked and packed for customers to purchase on way home
from work. Other alternative is a delivery service within a specific radius. Might
also work for Store 3 due to proximity to train station and Docklands residential
complexes. Would mean longer opening hours to catch after-work commuters
and residents.

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