BSBMGT617

WRITTEN TASK

Written Test
Unit Code:- BSBMGT617

Unit Name:- Develop and implement

a business plan

Assessment Tasks and Instructions

Assessment for this Unit of Details
Competency/Cluster

Assessment 1 Written Test

Assessment 2

Assessment conducted in this instance: Assessment 1 2

Assessment Guidelines
What will be assessed

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The purpose of this assessment is to assess your underpinning knowledge to complete the
tasks outlined in the elements and performance criteria for this unit of competency and
relating to the following aspects:

∙ 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.

Place/Location where assessment will be conducted

DUKE COLLEGE Training kitchen and Class Room

Resource Requirements

∙ Pen, Paper or computer

∙ appropriate documentation and resources normally used in the workplace
∙ strategic, business and operational plans
∙ business information and data
∙ interaction with others.

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Instructions for assessment including WHS requirements

You are required to address all questions to achieve competence. Your trainer will provide you
with instructions for time frames and dates to complete this assessment.
Once completed, carefully read the responses you have provided and check for completeness.
Your trainer will provide you with feedback and the result you have achieved.

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Written Test
This test consists of 31 short answer questions. You must complete them all.

Q1.
List 8 aspects of running a business which are commonly included in a business plan:

1. Executive Summary

2. Company Description

3. Market Analysis

4. Products or Services

5. Marketing and Sales Strategy

6. Operations and Management

7. Financial Projections

8. Funding Request and Use of Funds

Q2.
Indicate whether the following sentences relating to the components of a business plan are
true or false:
True False

1. Business plans are usually set up in the same logical order, starting with √
generalities of the business and leading onto more specific detail of how
the business will operate

2. The plan will start with an introduction containing a description or profile of √

the business, outlining what the business does, including products and
services offered as well as allied marketing activities

3. The introduction does not include a description of the owners, their skill sets, √
the ownership structure of the business and the management structure

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4. Next will be an analysis of the business, containing the business mission √

statement and business vision; brief overview of the market; overview
of business assets; description of the skills of the management team;
and risk analysis

5. The final section should include the future objectives of the business and √
the strategies for achieving those objectives

Q3.
List 4 examples of ways to analyse business markets:

1. SWOT Analysis

2. Marketing Mix

3. McKinsey’s7S Framework

4. 7Ps Marketing Mix

Q4.
List 5 examples of external factors that may impact on a business:

1. Economics

2. Ecological and environmental

3. Governmental

4. Social and cultural

5. Demographic

Q5.
List 5 examples of internal impacts on business:
1. Staffing levels and skills

2. financial resources

3. Equipment capacity

4. Hours of operation

5. Communication capabilities

Q6.
What does the acronym PEST stand for?
Ans. The acronym PEST stands for Political, Economic, Social, and Technological. It is a strategic
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analysis tool used by businesses and organizations to assess and analyse the external macro-
environmental factors that can impact their operations and decision-making.

Q7.
Briefly explain what the “political and legal environment” refers to. Who regulates consumer
rights?
Ans. A Political and Legal Environment refers to the stability of the local government. Examine
the country’s policies toward business, including factors such as trade and tariff policy, tax
structure, anti-trust and competition regulations, union power and consumer protection laws. The
Australian Consumer Law (ACL) is the one who regulates consumer rights. It is ministered by the
ACCC and state and territory consumer protection agencies and is enforced by all Australian courts
and tribunals, including the courts and tribunals of the States and Territories.

Q8.
Provide 4 examples how the economic and demographic makeup does affect a
business: 1. Consumer confidence
Consumer confidence is an economic indicator that measures overall consumer optimism
about the state of the economy. Confident consumer tends to be more willing to spend
money than consumers with low confidence.

2. Employment

When unemployment is low, consumer spending tends to be high because most people have income to
spend, which is good for business and helps drive growth. When unemployment is high, consumer spending
tends to be low because unemployed people don't have excess income to spend.

3. Inflation

Rising costs are likely to force businesses to raise prices on their own products and services to keep pace
with inflation and maintain profits

4. Purchasing power

Different products and services appeal to different income groups, and value is a critical deciding factor on
which products to buy or services to avail.

Q9.
What are the components of the triple bottom line sustainability concept?
Ans. There are three components of the Triple Bottom Line:
1.PeopleMeasures how socially responsible an organization has been throughout its operations.
2.PlanetMeasures how environmentally responsible a firm has been
3.ProfitThe traditional measure of corporate profit

Q10.

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List 4 examples of items considered in carbon footprint calculations:

1. Housing

2. Electricity

3. Fuels

4. Waste and Water

Q11.
For a business to be successful, it must constantly be comparing itself to its competitors in
order to find some kind of advantage. Which key questions should you ask when comparing
your business to competitors?

Ans. Even if there is no competition, it does not mean it will last forever and will not appear
shortly. Competition is something that cannot be avoided, regardless the size of the business,
or industry and marketing which it operates.
There are some key questions you need to ask yourself when comparing to your business to
competitors:
-Who are your main competitors?
-What are their strengths and weaknesses?
-What are their products and services?
-What are the elements where your offer is better than theirs?
-What are the benefits and features that they offer with their products or services?
-How are they developing and find their customers?
-Who are their most important customers?
-How much they charge for their products or services?
-What are the opportunities and threats within a given market or industry?
-What are the characteristics of your ideal customers and your competitors' ideal
customers?

Q12.
What is involved in a competitor analysis? Why is it important?
Ans. The competitive analysis is a statement of the business strategy and how it relates to the
competition. The purpose of the competitive analysis is to determine the strengths and weakness of
the competitors within your market, strategies that will provide you with a distinct advantage, the
barriers that can be developed in order to prevent competition from entering your market, and any
weakness that can be exploited within the product development cycle. Most business end up looking
at their marketing and growth planning from an internal perspective. It’s important to understand
what your competitors are doing better than you. It's even more important to put yourself in your
customers' shoes and look at things from their perspective. For brands to survive, they have to be
aware of everything consumers think and feel, and how that impacts success in their industry and
category. It's a tall order which is why it is so important.

Q13.
List 5 stakeholders you should seek input from when developing a business plan:
1. Investors – owners, bank or investment company

2. Customers – your clients

3. Suppliers – essential materials and services for your business

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4. Business consultant – someone with specialist knowledge

5. Government official – someone who can give you insight and be an advocate for you

Q14.
Which of the following is the best example of a SMART objective?

a. To capture more of the lunch trade

b. To capture 10% of the lunch trade
c. To capture 10% of the lunch trade by January 2016
d. To capture more of the lunch trade by January 2016

Ans. To capture 10% of the lunch trade by January 2016.

Q15.
How can you conduct a business risk analysis? What does this need to include?
Ans. The business risk analysis should be conducted in a similar fashion to WHS risk analysis.
Firstly, the hazards to a business must be identified, e.g. an economic downturn or a shortage of staff.
Next the likelihood of those hazards occurring and the potential severity if they do occur must be
identified. Once that happens, the risk can be calculated. Risk controls must then be introduced to
treat the risks, in order to minimise the potential impact of the risks. - In the business plan, you may
only need to include a series of key points outlining the risks involved with the business. A separate,
in-depth risk analysis record should also be kept.

Q16.
List 4 key areas for which a business should have objectives, plans and strategies:

1. Financial Management:

Objectives: Setting financial goals related to revenue, profitability, cash flow, and

return on investment.

Plans and Strategies: Creating budgets, financial forecasts, cost management

strategies, and investment plans to achieve the financial objectives.

2. Marketing and Sales:

Objectives: Defining marketing and sales targets, market share goals, customer acquisition, and
retention objectives.
Plans and Strategies: Designing marketing campaigns, pricing strategies, distribution plans, market
research, and customer relationship management strategies.

3. Operations and Production:

Objectives: Establishing objectives related to operational efficiency, quality control, production

output, and supply chain management.

Plans and Strategies: Developing production schedules, optimizing processes, inventory

management, and implementing lean principles to improve efficiency.

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4. Human Resources and Talent Management:

Objectives: Setting goals for employee recruitment, training, performance management, and
employee retention.

Plans and Strategies: Creating talent acquisition plans, training and development programs,
employee engagement strategies, and succession planning.

Q17.
What is operational planning and how is it used?
Ans. Operational planning is a management process that involves translating the broader strategic
goals and objectives of a business into specific, actionable plans and tasks at the operational level. It
focuses on the day-to-day and short-term activities necessary to achieve the strategic objectives of
the organization. Operational planning helps bridge the gap between the high-level strategic vision
and the actual implementation of activities required to reach those objectives.

Key elements of operational planning include:

Setting Specific Goals and Objectives: Operational planning defines clear, measurable, and time-
bound goals that align with the overall strategic direction of the business. These goals are often
broken down into smaller, achievable targets.

Identifying Resources and Requirements: Operational planning involves assessing the resources,
including personnel, budget, equipment, and materials, needed to accomplish the defined objectives.

Developing Action Plans: Action plans are created to outline the specific steps and tasks required to
achieve the operational goals. These plans detail who is responsible for each task, the timeline, and
any required resources.

Assigning Responsibilities: Operational planning involves assigning responsibilities to individuals or

teams to ensure everyone knows their role in achieving the objectives.

Establishing Performance Metrics: Key performance indicators (KPIs) and metrics are defined to
measure progress toward the operational goals. These metrics help in monitoring and evaluating the
success of the plans and identifying areas for improvement.

Monitoring and Adjusting: Regular monitoring of progress against the set objectives is crucial in
operational planning. If necessary, adjustments can be made to strategies, resources, or timelines to
keep the plan on track.
Operational planning is used in various ways to support the overall success of the business:

Execution of Strategy: Operational plans ensure that the strategies devised at the higher levels of
management are put into action efficiently and effectively.

Resource Allocation: It helps in allocating resources optimally to different projects and activities to
achieve the desired outcomes.

Coordination and Communication: Operational planning ensures that all teams and departments are
aligned with the organizational goals and are aware of their roles and responsibilities.

Risk Management: By identifying potential obstacles and challenges, operational planning allows for
the development of contingency plans to mitigate risks.

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Continuous Improvement: Regular evaluation of operational plans allows for continuous

improvement in processes and outcomes.

Q18.
Describe each of the following components of a marketing plan:

1. Marketing Objectives – What it is that the business hopes to achieve by implementing the
marketing.

2. External Market Analysis – Research into the state and make-up of the current market.

3. Internal Analysis – Who in the business can be allocated to specific tasks and what financial
resources are available.

4. Overall Marketing Strategy - Defines which markets will be targeted for the product and the
strategic reasons for the decisions.

5. Sales and Pricing Strategy – Defines how the marketing will be carried out in terms of pricing
structure.

6. Distribution Channels – Determines how the products will be distributed to customers.

7. Promotion Strategy – What types of promotion and advertising will be used and why.

Q19.
Why is financial planning important? In what form should this be completed and which
aspects must be included?
Ans. A financial plan is the most important thing a business need. It's a road map, a guideline,
a reminder of what your goals are-what you are trying to achieve in the short-term and the
long-term. It lays out what your possible costs are, and it seeks out to address avenues for
how to manage these costs.
The financial section of the business plan should include items such as:
-The Master Budget which, depending on the size of the business, may include departmental
reports, as well as the overall budgeted Profit and Loss Statement.
-Clearly defined cashflow planning to ensure positive cashflow and liquidity of the business
-The existing ratio of debt to equity and the terms of debt, to prevent excessive gearing.
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-Control systems for stock, debtor and creditor levels.

-Financial objectives of the business in relation to volume of trade, associated costs and
pricing strategies.
-Financial record-keeping mechanisms to ensure effective monitoring and compliance.

Q20.
Why is human resources planning important? Which aspects would this need to include to
meet the requirements of a business?
Ans. Human resources planning is essential for several reasons, as it directly impacts an
organization's ability to achieve its goals and maintain a competitive advantage. Some key
reasons why human resources planning is important include:

Talent Acquisition: Effective human resources planning ensures that the right people with the
required skills and competencies are recruited and retained, which is critical for the success of
the business.

Workforce Productivity: Proper planning helps in optimizing the utilization of human resources,
ensuring that employees are deployed efficiently, and their skills are put to best use.

Succession Planning: It allows businesses to identify potential leaders and develop talent within
the organization, ensuring a smooth transition when key personnel leave or retire.

Cost Efficiency: Adequate planning helps in minimizing recruitment costs, training expenses,
and turnover rates by identifying and addressing potential issues before they escalate.

Adaptation to Changing Needs: Human resources planning enables businesses to adjust their
workforce size and skill mix to respond to changing market conditions and business demands
effectively.

Employee Engagement and Morale: When employees feel that their skills and contributions are
valued and aligned with organizational goals, it improves employee satisfaction, engagement,
and morale.

To meet the requirements of a business, human resources planning needs to include the
following aspects:

Workforce Analysis: Assessing the current workforce, including skills, competencies,

experience, and performance, to identify gaps and strengths.

Forecasting Future Needs: Predicting the organization's future workforce requirements based on
business growth projections and anticipated changes in the industry.

Recruitment and Selection Strategies: Developing plans for sourcing and attracting candidates
with the required skills and qualifications to fill vacancies effectively.

Training and Development Initiatives: Identifying skill gaps and planning training programs to
enhance employee capabilities and ensure ongoing professional development.

Succession Planning and Career Development: Identifying high-potential employees and

creating plans for their career advancement and preparing for leadership roles.

Retention Strategies: Implementing initiatives to improve employee satisfaction, engagement,

and overall retention rates, such as competitive compensation, benefits, and work-life balance
programs.

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Legal and Regulatory Compliance: Ensuring that human resources planning aligns with relevant
labour laws, regulations, and ethical standards.

Monitoring and Evaluation: Regularly reviewing the effectiveness of human resources planning
efforts, analysing workforce metrics, and making adjustments as needed.

Q21.
Briefly explain quality management planning. How does this vary as business grows and
increases?
Ans. Quality management planning is a systematic approach that involves defining,
documenting, and implementing processes and strategies to ensure that products, services, and
processes consistently meet or exceed the desired quality standards. The goal of quality
management planning is to deliver products and services that satisfy customer expectations
and adhere to industry standards.

Key aspects of quality management planning include:

Quality Objectives: Setting clear and measurable quality objectives that align with the
organization's overall goals and customer requirements.

Quality Standards: Defining specific quality standards and criteria that products, services, or
processes must meet.

Quality Assurance: Implementing processes and systems to ensure that quality standards are
consistently met throughout the organization.

Quality Control: Conducting inspections, tests, and reviews to monitor the quality of products,
services, or processes and identify any deviations from the set standards.

Continuous Improvement: Establishing a culture of continuous improvement, where feedback,

lessons learned, and data analysis are used to identify opportunities for enhancement.

As a business grows and increases in size, the complexity of quality management planning
may also evolve. Here are some ways quality management planning may vary as a business
grows:

Scale of Operations: As a business grows, it may handle larger volumes of products or

services, leading to more significant challenges in maintaining consistent quality across a
larger scale.

Standardization: Standardization becomes increasingly important as the business grows to

maintain uniform quality across multiple locations or units.

Regulatory Compliance: Larger businesses may face stricter regulatory requirements and
compliance standards, necessitating more robust quality management systems to meet these
obligations.

Supply Chain Management: As a business expands, it may work with more suppliers and
partners, requiring a comprehensive approach to ensure the quality of materials and inputs.

Customer Feedback: With a larger customer base, gathering and analysing customer feedback
becomes more critical in identifying areas for improvement and addressing customer
concerns.

Employee Training and Development: As the workforce grows, investing in employee

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training and development becomes essential to maintain a skilled and knowledgeable

workforce committed to quality.

Technology Implementation: Larger businesses may adopt more advanced technologies, such
as quality management software and data analytics tools, to monitor and improve quality
effectively.

Q22.
Provide an example how each of the following aspects play a role in quality management.
What would this require?
1. Customer Focus – The first, and arguably most important principle, argues that a business
wouldn’t exist without its customers. Therefore, organisations should strive to understand their
current and future customers, in order to better meet their requirements and expectations.
Key benefits of cultivating good customer relationships include an increased market share and
boost to revenue, as well as improved customer loyalty. If you are seen as understanding and
reacting appropriately to consumer demand, the success of your business is pretty much
guaranteed, so it’s worth paying close attention to this principle.

2. Leadership – This principle extols the virtues of strong, purposeful and unifying leadership.
Leaders are responsible for creating a productive and progressive business environment. They
also are in charge of ensuring that future hires maintain that atmosphere.
Implementing this principle in your workplace relies upon having an established vision for the
business, as well as the right leaders in place to promote that vision to the rest of the team.
Spending some time getting this right from the get-go will save you time and stress in the future.

3. Staff Involvement – This principle extols the virtues of strong, purposeful and unifying
leadership. Leaders are responsible for creating a productive and progressive business
environment. They also are in charge of ensuring that future hires maintain that atmosphere.
Implementing this principle in your workplace relies upon having an established vision for the
business, as well as the right leaders in place to promote that vision to the rest of the team.
Spending some time getting this right from the get-go will save you time and stress in the future.

4. Process Approach – A process-driven approach can help companies to avoid logistical

problems that often stem from confusion over the right way to go about things. It also future
proofs your business, as having set processes ensures that there’s no moment of flat panic when a
key team member moves on, leaving everyone in the dark about key elements of their job.
Developing processes for every area of your business, from sales to marketing, finance to HR,
will ensure that resources are used most effectively, resulting in cost-effective and consistent
results. It also allows you to dedicate time and attention to bigger and more exciting tasks!

5. Systems Approach to Management – This principle is linked to the previous one, and argues
that identifying, understanding and managing processes using a clear system will help to
streamline your business. By ensuring that team members are dedicating the right amount of
attention to key tasks, you’ll eliminate wasted time and make your business more efficient.
A systematic approach also allows everyone to have access to every stage of certain processes
and stay up to date with progress. Plus, it looks great for prospective new clients when your
business is organised. Win-win.

6. Continual Improvement – As the old adage goes, if you’re not going forwards, you’re going
backwards. A business should always be pushing for improvements, because if you’re not, you
can bet that your competitors will be.
Continual progress is a permanent goal of any successful organisation. Take a look at the world’s
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top 10 most prosperous organisations and you can guarantee that they have entire teams
dedicated to ensuring that they are always onto the next thing. Commitment to improvement also
allows you to be the market leader, as you’ll be the ones setting the agenda, rather than playing
catch-up to your competitors.

7. Factual Approach to Decision Making – This principle states that effective decisions are
made based on rational analysis of data. Whilst a gut feeling can be useful in some situations, it
won’t really stand up when you’re explaining to your board of investors why your profits are
down by 10% this year.
Before making any business decisions, big or small, ensure that you have all the facts. That way,
if you’re ever questioned about why you made a certain decision, or asked to prove how that
decision benefits your business, you’ll have all the data at your fingertips to fall back on. This
principle also relies upon having access to reliable and accurate data, another vital aspect for a
modern-day business.

8. Maintaining Good Business Relationships – Okay, so you’ve got a fantastic management

system, excellent customer relationships and a comprehensive business plan. There’s one thing
missing – what are you delivering to your customers?
Whether your business provides goods or services to customers, it’s likely you’ll rely on some
sort of supplier. This principle dictates that relationships between your company and any
suppliers must be mutually beneficial in order to add value to both parties. It allows both of you
to react more quickly and flexibly to customer demands if things are smooth and harmonious
between you, as well as making it easier to negotiate on costs.

Q23.
Why is legal compliance important? Provide 2 specific examples of legal compliance required
by a business:
Ans. Legal compliance is essential for businesses to ensure that they adhere to applicable laws,
regulations, and industry standards. Non-compliance can lead to severe consequences, including
legal penalties, fines, damaged reputation, and potential business shutdown. Complying with the
law helps businesses build trust with customers, employees, and stakeholders and creates a
foundation for sustainable growth and success.

Two specific examples of legal compliance required by a business are:

Data Protection and Privacy Laws:

Example: General Data Protection Regulation (GDPR) in the European Union.
Legal Requirement: If a business processes personal data of individuals within the EU, it must
comply with GDPR regulations. This involves obtaining explicit consent from individuals for data
collection, providing transparent privacy policies, implementing appropriate security measures to
protect data, and ensuring individuals' rights regarding their data, such as the right to access and
erase their information.

Employment Laws:
Example: Fair Labour Standards Act (FLSA) in the United States.
Legal Requirement: The FLSA sets standards for minimum wage, overtime pay, recordkeeping,
and child labour. Businesses must comply with these regulations to ensure employees receive fair
wages and work within legal hours. This may involve accurate recordkeeping of employee work
hours, ensuring proper classification of employees as exempt or non-exempt, and complying with
specific state-level labour laws.
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Q24.
Why is ethical behaviour important? What guidelines for ethical conduct exist?
Ans. Ethical behaviour is important for several reasons, as it forms the foundation for a fair, just, and
sustainable society. In the context of businesses and organizations, ethical behaviour is crucial for the
following reasons:

Trust and Reputation: Ethical behaviour builds trust among customers, employees, and stakeholders.
It enhances the reputation of the business and fosters long-term relationships with clients and partners.

Employee Morale: Employees are more likely to be motivated and committed to their work when they
feel that the organization upholds ethical values and treats them fairly.

Legal Compliance: Ethical behaviour often aligns with legal requirements, ensuring that the business
operates within the boundaries of the law.

Risk Management: Ethical conduct reduces the risk of legal and reputational issues that may arise
from unethical practices.

Customer Loyalty: Ethical businesses are more likely to attract loyal customers who value and support
companies that demonstrate integrity.

Sustainability: Ethical behaviour promotes sustainable practices that benefit the environment and
society in the long run.

Social Impact: Ethical businesses contribute positively to the communities they operate in, fostering a
sense of corporate social responsibility.

Guidelines for ethical conduct exist to provide a framework for individuals and organizations to make
ethical decisions and ensure responsible behaviour. Some of these guidelines include:

Codes of Ethics: Many organizations, businesses, and professional associations develop and
implement codes of ethics that outline the values, principles, and standards of behaviour expected
from their members or employees.

Industry Standards and Regulations: Various industries have established standards and regulations that
govern ethical behaviour within that sector, ensuring fair competition and protecting consumers.

Corporate Social Responsibility (CSR): CSR initiatives guide businesses to contribute positively to
society by engaging in activities that benefit communities, the environment, and stakeholders.

United Nations Global Compact: This initiative encourages businesses to adopt and implement
sustainable and socially responsible policies based on ten principles related to human rights, labour,
environment, and anti-corruption.

Ethical Decision-Making Models: Numerous ethical decision-making models exist to help individuals
and businesses assess ethical dilemmas and make morally sound choices.

Government Laws and Regulations: Legal frameworks also define certain ethical boundaries, and
businesses must adhere to these laws to ensure ethical conduct.

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Ethical behaviour is not just about compliance with rules and regulations but goes beyond that to
embodying values such as honesty, integrity, fairness, and respect for others. By adhering to ethical
guidelines, businesses can create a positive impact on society while fostering a culture of trust,
responsibility, and sustainability.

Q25.
How should sustainability be considered in a business plan?
Ans. One of the major trends in society and in business is the increase in environmental awareness.
For TH&E businesses, environmental awareness must be twofold: you must consider the
environmental impacts of the products and services you offer; and you must consider the impact of
your business itself. The environmental impact of a business should be incorporated in the business
plan. Actions such as recycling policies and water waste minimisation can easily be implemented as
a means of reducing a business' environmental footprint.

Q26.
True or false?
If one of the goals of your business is to include staff and other stakeholders in decision
making, then a good opportunity to start is to seek their feedback and input on the business
plan.
Ans. True

Q27.
What is an action plan and how is it used?
Ans. An action plan is a detailed document that outlines specific steps, tasks, and timelines required
to achieve a particular goal or objective. It is a roadmap that provides a clear and organized path to
follow in order to implement strategies and achieve desired outcomes. Action plans are commonly
used in various contexts, such as project management, business planning, and personal goal setting.

Key components of an action plan include:

Objective: Clearly defining the goal or objective that the action plan aims to achieve.
Tasks: Listing the specific tasks or activities that need to be completed to work towards the
objective.

Responsibilities: Assigning responsibilities to individuals or teams who will be responsible for

completing each task.

Timeline: Setting specific deadlines or timeframes for each task to create a realistic schedule for
completion.

Resources: Identifying the resources, materials, or support needed to carry out the tasks effectively.
Progress Monitoring: Outlining how progress will be tracked and measured to ensure the plan stays
on track.

Contingency Plans: Including backup plans or alternative actions to address potential obstacles or
risks.
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How Action Plans are Used:

Project Management: Action plans are commonly used in project management to break down
complex projects into manageable tasks, assigning responsibilities, and tracking progress.

Business Planning: In business, action plans are utilized to implement strategies, achieve business
objectives, and align teams towards common goals.

Goal Setting: For personal or professional development, action plans help individuals set specific
objectives, outline steps to achieve them, and monitor their progress.

Crisis Management: During unexpected events or crises, action plans provide a structured approach
to respond effectively and minimize negative impacts.

Performance Improvement: In organizations, action plans can be used to address areas of

improvement, set targets, and implement changes for better performance.

Strategic Implementation: When businesses develop a strategic plan, action plans are used to
translate strategic objectives into actionable tasks for different departments or teams.

Q28.
How can staff be involved in achieving business goals? What are the benefits of involving
staff?
Ans. Staff can be involved in achieving business goals in various ways, and their active
participation can lead to several benefits for the organization. Here are some strategies for
involving staff in achieving business goals:

Goal Setting and Planning: Involve staff in the goal-setting process to gain their input and
commitment. Engage them in creating action plans and strategies, so they have ownership over
the objectives they are expected to achieve.

Regular Communication: Maintain open and transparent communication with staff about the
organization's goals, progress, and challenges. Regularly share updates, successes, and areas
for improvement to keep everyone informed and motivated.

Collaborative Decision-Making: Seek input from employees when making important decisions
that affect their work. Encourage participation in discussions and consider their insights to
arrive at well-rounded and informed choices.

Training and Development: Invest in staff training and development to enhance their skills and
knowledge, empowering them to contribute more effectively to achieving business goals.

Recognition and Rewards: Acknowledge and celebrate individual and team achievements
related to business goals. Recognizing employees' efforts boosts morale and encourages
continued dedication.

Empowerment and Autonomy: Grant staff the autonomy to make decisions and take initiative
within their roles, fostering a sense of responsibility and accountability for achieving
outcomes.

Cross-Functional Collaboration: Encourage collaboration across departments and teams to

foster a sense of unity and shared purpose in achieving overall business objectives.
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Benefits of Involving Staff in Achieving Business Goals:

Increased Motivation and Engagement: When employees are actively involved in setting and
working towards goals, they feel more motivated and engaged in their work, leading to higher
productivity and job satisfaction.

Enhanced Creativity and Innovation: Diverse perspectives from staff can lead to creative ideas
and innovative solutions to challenges, boosting the organization's ability to adapt and thrive.

Improved Problem Solving: Staff involvement in decision-making and problem-solving

processes can lead to better-informed and well-rounded solutions to complex issues.

Stronger Team Cohesion: Involving staff in the pursuit of common goals fosters a sense of
teamwork and unity, resulting in improved collaboration and communication among
employees.

Higher Employee Retention: Staff who feel valued and involved in the organization's direction
are more likely to stay with the company long-term, reducing turnover and associated costs.

Better Execution of Plans: When employees understand and buy into the business goals, they
are more committed to executing the plans effectively, leading to better overall performance.

Positive Organizational Culture: An inclusive approach to achieving goals creates a positive

organizational culture, where employees feel valued and empowered, leading to a higher level
of commitment to the company's success.

Q29.
How can a business plan be monitored?
Ans. Monitoring a business plan is crucial to ensure that the organization stays on track, identifies
potential issues early on, and adapts to changing circumstances. Here are some key steps on how a
business plan can be monitored effectively:

Set Measurable Objectives: Ensure that the business plan includes clear and measurable objectives.
These objectives serve as benchmarks against which progress can be measured.

Establish Key Performance Indicators (KPIs): Identify and define specific KPIs that align with the
objectives. KPIs provide quantifiable metrics that help assess the performance and success of the
business plan.

Regularly Review Progress: Schedule regular reviews of the business plan's progress. This can be
done monthly, quarterly, or annually, depending on the business's needs and the plan's timeline.

Compare Actual Performance with Targets: During the reviews, compare the actual performance
with the targets set in the business plan. Analyze any gaps between the two and identify reasons for
deviations.

Collect and Analyze Data: Gather relevant data and information to assess the business's performance
against the plan. Data can come from financial reports, sales figures, customer feedback, and other
sources.

Seek Feedback: Obtain feedback from employees, stakeholders, customers, and other relevant
parties. Their insights can provide valuable information about the plan's effectiveness and areas for
improvement.
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Adjust and Adapt: Based on the review findings, make necessary adjustments and adaptations to the
business plan. This could involve revising strategies, reallocating resources, or setting new targets.

Communication and Transparency: Ensure that progress updates and changes to the business plan are
communicated effectively throughout the organization. Transparency helps keep all stakeholders
informed and aligned.

Use Technology and Tools: Utilize technology and business intelligence tools to streamline data
collection, analysis, and reporting processes. Automated tools can help generate real-time insights
for quicker decision-making.

Engage in Continuous Improvement: Embrace a culture of continuous improvement, where the

business plan is seen as a dynamic tool that evolves based on feedback and changing circumstances.

Keep the Plan Visible: Keep the business plan visible and accessible to relevant team members. This
constant reminder of goals and objectives helps maintain focus and commitment.

Seek External Advice: If necessary, seek external advice or engage consultants to provide an
objective assessment of the business plan and offer insights for improvement.

Q30.
Give a description for the following steps that can be taken when monitoring and using the
business plan:

1. Check your business plan periodically – Regularly reviewing your business plan is an
essential step in monitoring its progress and effectiveness. This periodic assessment allows you
to track how well the business is performing in alignment with the plan's objectives and
strategies. The frequency of these checks may vary depending on the nature of the business and
the timeline specified in the plan, but it is generally recommended to conduct reviews at least
quarterly or semi-annually.

During these periodic checks, consider the following actions:

Compare Actual Performance to Plan: Evaluate the actual performance of the business against
the goals and targets set in the business plan. Identify any discrepancies or deviations and
understand the reasons behind them.

Analyze Key Performance Indicators (KPIs): Examine the key performance indicators defined in
the plan to assess whether the business is meeting its targets. Look for trends and patterns in the
data to identify areas of strength and weakness.

Gather Feedback and Input: Seek feedback from employees, customers, and stakeholders about
the business's progress and the effectiveness of the strategies outlined in the plan. This input can
provide valuable insights and identify potential areas for improvement.

Identify Opportunities and Challenges: Use the review process to identify new opportunities or
emerging challenges that may require adjustments to the plan. Consider market trends,
competitive factors, and changes in the business environment.

Assess Resource Allocation: Evaluate how well the resources (financial, human, and material)
are being allocated and utilized to achieve the plan's objectives. Consider whether resource
allocation aligns with priorities and whether adjustments are needed.

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Revise and Update: Based on the findings from the review, make any necessary revisions or
updates to the business plan. This may involve modifying strategies, setting new targets, or
realigning priorities to keep the plan relevant and effective.

Communicate Results: Share the results of the review with relevant stakeholders, such as
employees, investors, and board members. Transparent communication about the business's
progress and the plan's effectiveness fosters understanding and support.

2. Compare actuals to expected – "Comparing actuals to expected" is a crucial step in

monitoring and using a business plan. This process involves evaluating the actual performance of
the business against the expected outcomes and targets set in the business plan. By comparing the
actual results with the projected or planned figures, businesses can assess their progress, identify
areas of success, and pinpoint potential challenges or deviations that require attention. Here's a
description of this step:

Gather Data and Actual Performance Metrics: Collect relevant data and metrics that measure the
business's performance during the specified time period. This could include financial data
(revenue, expenses, profits), sales figures, production output, customer feedback, and other
performance indicators.

Compare with Planned Objectives and Targets: Review the objectives and targets set in the
business plan. These could be financial goals, market share targets, customer acquisition figures,
or any other specific milestones outlined in the plan.

Identify Deviations and Variances: Compare the actual performance data with the corresponding
targets. Look for any significant deviations or variances between the actual results and the
expected outcomes.

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Analyse the Reasons for Deviations: Investigate the reasons behind the discrepancies.
Understand the factors that contributed to overperformance or underperformance in relation to
the plan's targets. This analysis may involve looking at internal factors (e.g., changes in strategy,
resource allocation, operational efficiency) and external factors (e.g., market conditions,
customer behaviour, competition).

Recognize Successes and Areas for Improvement: Acknowledge areas where the business has
performed well and achieved or exceeded the planned objectives. Celebrate successes to motivate
the team and reinforce effective strategies. Similarly, identify areas that fell short of the targets
and consider them as opportunities for improvement and further planning.

Make Informed Decisions: Based on the analysis of the actuals compared to expected outcomes,
make informed decisions on how to adjust the business's course. Determine whether the business
plan needs to be revised, strategies need to be modified, or resource allocation should be
realigned to better align with goals.

Use Insights for Future Planning: Use the insights gained from the comparison to enhance future
planning. Apply lessons learned to set more realistic and achievable objectives in subsequent
business plans. Take into account the business's performance trends and challenges to create
more informed and effective strategies.

Report and Communicate Findings: Share the findings of the comparison with relevant
stakeholders, such as employees, investors, and management. Transparent communication about
the actual performance in relation to the business plan fosters accountability and enables support
and alignment across the organization.

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3. Operate according to plan – "Operating according to plan" is a critical step in monitoring and
using a business plan effectively. This step involves executing the strategies and actions outlined
in the business plan consistently and in alignment with the established objectives and timelines.
Here's a description of this step:

Implement Planned Strategies: Refer to the business plan to understand the strategies and
initiatives that were developed to achieve the defined goals. Ensure that these strategies are put
into action as planned and that relevant teams or departments are aware of their roles and
responsibilities.

Align Resources: Allocate the necessary resources, including financial, human, and technological
resources, to support the execution of the planned strategies. Adequate resource allocation is
crucial for successfully implementing the business plan.

Set Clear Milestones and Timelines: Establish clear milestones and timelines for each action or
project outlined in the business plan. This allows for tracking progress and ensures that activities
are completed within the designated timeframes.

Monitor Progress Regularly: Continuously track and monitor the progress of the business plan's
execution. Use key performance indicators (KPIs) and other metrics to measure progress against
the defined targets.
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Identify and Address Challenges: If any challenges or obstacles arise during the implementation
process, address them promptly. Problem-solving and adaptive decision-making may be required
to overcome hurdles and stay on track.

Involve and Engage Employees: Engage employees at all levels of the organization in the
execution of the business plan. Foster a sense of ownership and commitment by involving
employees in decision-making and problem-solving related to the plan's implementation.

Communicate and Update: Keep all stakeholders, including employees, investors, and partners,
informed about the progress of the business plan. Regularly communicate updates, successes, and
any adjustments made to the plan to ensure alignment and transparency.

Review and realign, if Necessary: Continuously assess the relevance and effectiveness of the
business plan as the business environment evolves. If needed, make necessary adjustments to the
strategies or objectives to better align with changing circumstances.

Adhere to Legal and Ethical Standards: Ensure that the business operations and actions
conducted as part of the plan adhere to all relevant legal and ethical standards. Compliance with
laws and regulations is essential for the sustainable success of the business.

Celebrate Achievements: Celebrate milestones and achievements reached during the

implementation of the business plan. Recognizing progress and success reinforces motivation and
encourages ongoing commitment.
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4. Improve your plan – "Improving your plan" is an important step in monitoring and using a
business plan effectively. This step involves continually evaluating the business plan's
performance, identifying areas for enhancement, and making necessary adjustments to ensure the
plan remains relevant and aligned with the organization's goals. Here's a description of this step:

Gather Feedback and Data: Seek feedback from employees, stakeholders, and customers about
the effectiveness of the current business plan. Use quantitative and qualitative data to assess the
plan's performance and identify areas that require improvement.

Analyse Performance Metrics: Review key performance indicators (KPIs) and other performance
metrics related to the business plan's objectives. Analyse trends, patterns, and any discrepancies
between expected outcomes and actual results.

Identify Strengths and Weaknesses: Identify the strengths and weaknesses of the current business
plan. Recognize aspects that have been successful and contributed to positive outcomes, as well
as areas that may have underperformed or need refinement.

Benchmark Against Competitors and Industry Standards: Compare your business plan's
performance with industry benchmarks and competitors. Gain insights into areas where your
organization may excel or lag behind, informing potential improvements.

Involve Key Stakeholders: Engage key stakeholders, including employees, managers, investors,
and customers, in the process of improving the business plan. Collect their perspectives and ideas
to enhance the plan's effectiveness.

Review Market and Environmental Changes: Assess changes in the market, industry, or
regulatory environment that may impact the business plan's success. Consider external factors
when identifying areas for improvement.

Brainstorm and Generate Ideas: Conduct brainstorming sessions or workshops to generate

creative ideas for enhancing the business plan. Encourage an open and innovative approach to
problem-solving.

Set Priorities and Goals: Based on the findings from the analysis and feedback, prioritize areas
for improvement and set specific goals for enhancing the business plan.

Develop Actionable Strategies: Develop actionable strategies and initiatives to address the
identified weaknesses and capitalize on strengths. Ensure that the improvements are practical and
achievable.

Communicate Changes: Communicate the planned improvements and changes to all relevant
stakeholders. Ensure that employees and other team members are aware of the updates and their
roles in the implementation.

Implement and Monitor Changes: Put the identified improvements into action and monitor their
implementation. Continue to track performance metrics to assess the effectiveness of the
changes.

Continuous Learning and Adaptation: Foster a culture of continuous learning and adaptation
within the organization. Encourage feedback, learning from both successes and failures, and be
willing to adjust the business plan as needed.

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5. Use outside assistance – "Using outside assistance" is a valuable step in monitoring and using
a business plan. This involves seeking support, advice, or expertise from external sources to gain
valuable insights and enhance the effectiveness of the business plan. Here's a description of this
step:

Identify Areas Requiring Assistance: Assess the business plan and identify specific areas or
challenges where outside assistance could be beneficial. This could include areas of strategic
planning, market analysis, financial forecasting, legal compliance, or any other specialized
expertise.

Engage Consultants or Experts: Consider engaging consultants, industry experts, or business

advisors who possess relevant knowledge and experience in the identified areas. These
professionals can provide objective perspectives and offer strategic recommendations.

Tap into Industry Networks: Connect with industry associations, business forums, or networking
groups that provide access to a broader community of professionals. Engaging with peers and
industry leaders can offer valuable insights and best practices.

Seek Financial Advisory Services: If financial aspects of the business plan require expertise,
consider consulting with financial advisors or accountants who can assist with budgeting,
financial modeling, and investment strategies.

Legal and Regulatory Compliance: If the business plan involves legal complexities, such as
contracts, permits, or intellectual property rights, seek legal assistance to ensure compliance with
relevant laws and regulations.

Market Research and Analysis: Collaborate with market research firms or specialists to conduct
comprehensive market research, competitor analysis, and customer insights to inform strategic
decision-making.

Technology and Innovation: Consider engaging technology consultants or innovation experts to

explore emerging technologies and innovative solutions that can optimize business processes or
create a competitive edge.

Training and Development: Provide staff with training and development programs to enhance
their skills and knowledge, supporting the successful implementation of the business plan.

Mentorship or Coaching: Seek mentorship or coaching from seasoned entrepreneurs or business

leaders who can provide guidance and share valuable experiences.

Government Support and Programs: Explore government resources or support programs that
offer assistance in areas such as funding, exporting, and business expansion.

Collaborate with Partners: Collaborate with strategic partners or other businesses in

complementary industries to leverage each other's strengths and resources.

Measure Impact and Effectiveness: Regularly assess the impact of outside assistance on the
business plan's execution and overall performance. Measure the value added by the expertise and
adjust the engagement as needed.

Q31.
How can a business respond to changes? What are the potential impacts of change?
Ans. A business can respond to changes by adopting a proactive and adaptive approach. The ability
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to respond effectively to changes in the business environment is essential for its success and
longevity. Here are some strategies for responding to changes:

Continuous Monitoring: Regularly monitor the internal and external business environment for any
signs of change, including market trends, customer preferences, technological advancements, and
regulatory updates.

Flexibility and Agility: Foster a culture of flexibility and agility within the organization. This
involves encouraging open communication, empowering employees to adapt to change, and being
willing to revise strategies and plans as needed.

Strategic Planning: Engage in strategic planning exercises to anticipate potential changes and
develop contingency plans. Consider various scenarios and devise strategies to address each possible
outcome.

Collaboration and Innovation: Encourage collaboration and innovation among employees to generate
creative solutions to challenges presented by change. Foster a culture that values new ideas and
embraces experimentation.

Risk Management: Implement effective risk management practices to identify, assess, and mitigate
potential risks associated with changes in the business environment.

Invest in Technology: Embrace technology to streamline processes, improve efficiency, and stay
competitive in a rapidly changing landscape.

Customer-Centric Approach: Keep customers at the forefront of decision-making. Understand their

evolving needs and preferences and adapt products and services accordingly.

Employee Training and Development: Invest in employee training and development to equip them
with the skills and knowledge required to handle changes and new challenges effectively.

Potential Impacts of Change:

The impacts of change on a business can be varied and may include both positive and negative
outcomes:

Opportunities for Growth: Change can present new opportunities for business growth, such as
entering new markets, expanding product lines, or adopting innovative technologies.

Increased Competition: Changes in the business environment can lead to increased competition,
requiring businesses to differentiate themselves and enhance their competitive advantage.

Disruptions to Operations: Significant changes, such as shifts in regulations or economic conditions,

can disrupt business operations and require adjustments to maintain continuity.

Financial Implications: Changes in market conditions or customer behaviour can impact revenue
streams and financial performance.

Customer Satisfaction: Changes in products, services, or processes may affect customer satisfaction.
Businesses need to respond promptly to address any negative impacts on their customer base.

Employee Morale and Productivity: Changes can influence employee morale and productivity.
Effective communication and support are essential to help employees navigate through change.
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Legal and Compliance Challenges: Changes in regulations or legal requirements can create
compliance challenges, necessitating adjustments to business practices.

Brand Reputation: How a business responds to change can impact its brand reputation. Adapting
positively to change can enhance the business's image and customer trust.

References
https://www.studocu.com/en-au/document/central-queensland-university/strategic-management/
bsbmgt517-manage-operational-plan/1990863

https://southpactraining.net/course/view.php?id=8

https://www.scribd.com/document/443009819/BSBMGT517-Manage-Operational-PLans

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