Assessment Title Assessment 2 Develop Marketing Strategy for Business Venture

Assessment Title Assessment 2 Develop Marketing Strategy for Business Venture

Competency Details

Unit code/s and title/s BSBESB404 Market new business ventures

Qualification code/s and title/s BSB30220 - Certificate III in Entrepreneurship

BSB40320 Certificate IV in Entrepreneurship and New Business

BSB40820 Certificate IV in Marketing and Communication

Business unit/Work group Business and Arts / Business Sector

Instructions

Method/s of assessment Product (written)

Overview of assessment This is a workplace project.

You will create a Marketing Plan

You will beassessedindividuallyThere are two (2) tasks in total

You can use your own business or your workplace (with permission from their manager). You will need to access and review the following to assist you in developing your marketing plan:

Industry or organisational code of ethics

Organisational business plan

Organisational business product or service documents

Organisational policies and procedures relevant to the following:

Developing marketing mix

Developing marketing objectives

For this assessment:

You are to access all documentation in the Assessment section in Learn and create the workplace project.

You will access the Marketing Plan template and submit the completed template via TAFE SA Learn.

No email submissions are to be accepted.

If you do not understand any of the questions, ask your trainer/assessor for help.

Task to be assessedThis assessment requires you to undertake research and develop a marketing strategy for a business or new business venture. You will also be required to consult with others to assist them in identifying key components of their marketing strategies.

Task 2.1 Consultation with Stakeholders

Task 2.2 Develop Marketing Plan

Time allowed This assessment will take approximately two (2) weeks and is due in week four (4) or as negotiated by your assessor.

Location of assessment Simulated business online with computer and internet access.

Decision making rules To receive a satisfactory outcome for this assessment you must submit at least 1 forum post and reply to a minimum of 2 other forum posts. Forum posts must meet minimum word count requirements. You must also submit a completed marketing plan for your identified business/business idea.

If you have been assessed as not satisfactory will be provided feedback you will be given two (2) weeks to complete the resubmission against the same assessment tasks.

Assessment conditions Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

business technology, including software for analysis of dataworkplace documentation and resources relevant to performance evidence.

Resources required TAFE SA facilitiesor alocation withequipment and infrastructure required:

Access to a computer with internet access

Access to the TAFE SA network

Access to LEARN

Microsoft Office 365

UAO (Unit and Assessment Outline)

Marketing plan template

Specific resources for this unit may include:

Their own business documentation to assist in developing marketing plan:

Organisational business plan

Organisational business product or service documents

Previous marketing reports conducted by the organisation.

Result notification and reassessment information Result notification

The assessment result will be satisfactory or not satisfactory.

Your educator will provide feedback through the LEARN platform.

Your educator will result a final grade for the unit at the end of each study period.

Reassessment

All students are entitled to two attempts to achieve each assessment task within any unit enrolment period.

Students assessed as unsatisfactory will be provided feedback and given time to complete the resubmission against the same assessment tasksRe-assessment timeframe will be negotiated with your assessor.

Assessment 2 Develop Marketing Strategy for Business Venture

Task 2.1 Consultation with Stakeholders

You will be required to review your businesss workplace documentation such as business plans, strategic plans, previous marketing plans and then consult with two (2) stakeholders to assist them in developing a new marketing strategy for a new business or business venture.

The consultation will be via a forum post in the BSBESB404 Learn Site. Your first step is to post information about your business including an overview of:

Products and services offered.

Customers they are planning to sell to.

Goals to be achieved by the business over the next 12 months.

The post should be approximately 200 words in length and give other students (your stakeholders) a good idea of what your business is, who you are selling to and what you hope to achieve within the first 12 months.

Once you have posted information about your own business, you must then reply to a minimum of two (2) other posts made by other students. You must act as one of the stakeholders for other students and provide input and suggestions on following:

Possible marketing objectives to meeting business goals.

Potential target market

Methods to promote to target market.

Your responses to other students should be approximately 200 words for each response and provide enough information for others to be able to make informed decisions about their marketing strategies for their business.

Submit one (1) post to the Assessment 2.1 discussion Forum.

Reply to a minimum of two (2) posts within the Assessment 2.1 Discussion Forum

Task 2.2 Develop Marketing Plan

You must use the marketing template found on the Learn site and complete your marketing plan based on the input received from your stakeholders, your own market research and the business documentation already existing within the business.

The marketing plan must include the following:

A minimum of two (2) goals for the business

A minimum of three (3) marketing objectives

SWOT analysis

Overview of customer base

Overview of target market

A minimum of three (3) competitors and a discussion of their strengths and weaknesses

Overview of current industry trends

Details of their products/services

Details of their place

Details of their pricing strategy

Overview and cost-benefit analysis of customer service strategies and distribution channels

Analysis of customer journey

Details of ethical and cultural considerations

Details of promotional and advertising strategies to achieve marketing objectives - (a minimum of two (2) strategies must be digital online activities (e.g. use of social media, website or online survey tools).

Details of how marketing strategies will be reviewedSubmit the Marketing Plan template to LEARN.

Assessment Title Assessment 2 Case Study

Preparation of financial plan

Competency Details

Unit code/s and title/s BSBESB403 Plan finances for new business ventures

Qualification code/s and title/s BSB40320 Certificate IV in Entrepreneurship and New Business

Business unit/Work group Business and Arts / Management Program

Instructions

Method/s of assessment Questioning (Written)

Overview of assessment This is a Case Study.

You will beassessedindividually

This assessment is to build a financial plan based on information provided in a case study

There are two options for the assessments students are to choose either the retail or the service industry assessments depending on their chosen business idea. This is to be discussed with your lecturer.

There are seven (7) parts to this assessment

Net Profit Target

Hourly Charge out Rate/Gross Profit Margins

Breakeven

Simple Projected Profit Statement

Capital Requirements

Financial Products and Lending Criteria

Sales Budget

Cash Flow Budget

For this assessment:

Read the questions carefully before you start your responses

You are required to complete the assessments using the information provided in the case study and the templates provided in this document

You will access the below template and submit the completed template via TAFE SA Learn.

If you do not understand any of the questions, ask your trainer/assessor for help

Task/s to be assessed This Assessment comprises of seven (7) financial spreadsheets and some corresponding short answer questions.

You are required to complete each financial spreadsheet according to the case study provided and give short answer responses for each question as required in the template provided.

Please use the template provided and information from the case study to develop a Financial plan for a businesss first year.

Instructions for the above tasks are provided below.

Note: Face-to face classes; You will access the Assessment Task Detail (ATD) and submit the completed template via TAFE SA Learn (if studying online) or in person/via email to your lecturer if studying via classroom

Time allowed This assessment will take approximatelysix (6) week and is due in week seven (7) or as negotiated by your assessor

Note:Face-to-face classes - Dueone (1)week from the end of the last workshop, or as negotiated by your assessor.

Location of assessment At TAFE SA, the workplace or an environment with computer and internet access.

Decision making rules To receive a satisfactory outcome for this assessment you must answer all questions correctly.

If you have been assessed as not satisfactory will be provided feedback you will be given two (2) weeks to complete the resubmission against the same assessment tasks.

Assessment conditions The assessment must be conducted in a safeworkplace or simulated environmentand will include access to:

The internet to research business and legal topics

Resources required TAFE SA facilitiesor alocation withequipment and infrastructure required:

Access to a computer with internet access

Access to the TAFE SA network

Access to LEARN(if studying online)

Unit Assessment Overview (UAO)

Specific resources for this assessment:

Access to class resources - assessment booklets and handouts

Assessment Task Detail (ATD) template

Websites -

ATO.gov.au

Investopedia.com

Selection of bank websites

Result notification and reassessment information Result notification

The assessment result will be satisfactory or not satisfactory.

Your educator will provide feedback through the LEARN platform if studying online or verbally/via email if studying in the classroom.

Your educator will result a final grade for the unit once you have successfully completed the unit.

Reassessment

All students are entitled to two attempts to achieve each assessment task within any unit enrolment period.

Students assessed as unsatisfactory will be provided feedback and given time to complete the resubmission against the same assessment tasks

Re-assessment timeframe will be negotiated with your assessor.

OPTION 1

Assessment 2 Service Case Study

2.1 Using the information and worksheets provided, answer the following questions

Case Study Wayne

Wayne Watson has just finished his mechanical apprenticeship. He has some savings, and he has always been keen on the idea of working for himself. He is considering investing this money to start-up a home based mobile mechanical repair business. He does not plan to have any employees initially. He is currently renting the house where he lives and has no assets. Eventually he would like to grow his business and move into a commercial premises.

Wayne requires an income of $52 000 per year and would like a return of 10% of his invested savings of $20 000. He has done some research and realizes he will probably have to borrow some extra funds to get started. He hopes to repay his loan of $20, 000 as quickly as possible and has therefore allowed $4 000 a year to repay any loan principal over 5 years. He would like to leave $2 000 each year in the business for future growth. He estimates his income tax liability to be $12 000 per year.

2.1.1 Based on the above, calculate the amount Wayne should set as his net profit target for his first year in business.

Desired income of owner (drawings)

Return of invested savings

Capital invested

Rate of return %

Total Desired return $

Likely loan principal

Total Loan Amount

Repayment years Profit for future growth

SUB-TOTAL (Taxable Income) =

Add allowance for income tax

TOTAL DESIRED NET PROFIT =

Case Study Wayne

Wayne intends to work hard to build up his business, so will be available for jobs between 8am and 5 pm Monday to Saturday. As he will be working 6 days per week, he has decided to have a decent break over Christmas, so will take 15 days annual leave after Christmas, and he will not work on the 10 public holidays throughout the year.

Wayne realizes that he will need to take into account some unproductive time for lunch breaks, quoting on jobs, travel, answering the telephone and other administrative tasks. He estimates that he will spend 2 hours per day on these tasks. Wayne estimates his overhead expenses, for the first year will be as follows:

Accounting Fees

Advertising

Insurances

Motor vehicle expenses

Stationery

Telephone

Maintenance of tools

WHS (PPE etc.) $1 800

$2 500

$2 800

$6 280

$720

$1 680

$1 200

$1 260

2.1.2 Determine Waynes total productive labour hours for a year, the amounts he needs to recover and calculate an all-inclusive hourly chargeout rate based on these figures.

1 Determine available hours:

No. weeks in trading period (1 year)

No. days open per week

Total available days =

Less: Public holidays

Annual leave

Total available working days =

Chargeout hours achievable per day

(Hours open minus unproductive time)

Total chargeable labour hours per year =

2 Determine sums to be recouped:

Overhead costs of the business Desired income/drawing of owner Return on invested savings Loan repayments/principal Retained profit for future growth Allowance for income tax Total sums to be recovered: =

3 Calculate hourly chargeout rate:

Total sums to be recovered Divided by total productive labour hours

Required hourly rate: =

2.1.3 How many hours will Wayne need to charge out each year to breakeven? Show your workings.

$

Overheads

+ Principal Loan Repayments

= Total Expenses =

Hourly Rate

= Total annual breakeven hours =

Total weekly breakeven hours ( 52 weeks)

=

Case Study WayneWayne knows from his research that on average the materials costs for each job are 40% of the total billed for the job. Initially Wayne will pass materials on to his customers at cost price.

2.1.4 Calculate the total income Wayne would earn from labour and materials, based on the above. Prepare a simple Projected Profit Statement. Show your workings.

Sales (100%)

Less Cost of Sales (40%)

Gross Profit (60%)

Less Overhead Expenses

Net Profit * * Refer to Net Profit Target

Assessment 2 Part 2.

Case Study Wayne

Wayne has worked out the initial assets he will need to buy and their approximate costs:

Equipment

Van

Trailer $4 000

$25 000

$1 000

Waynes start-up costs (exclusive of GST) include registering legal fees $500, promotional advertising $800, signwriting of his van $350, printing of business cards and stationery $150.

Wayne has completed some more research to assist him to determine how much he will need to get his business started, including an amount for working capital. He has decided to purchase two months worth of materials initially (use the figure calculated for Cost of Sales). Wayne will pay cash for his materials at first but hopes eventually to be able to obtain some credit from his suppliers. Wayne expects his customers to pay cash on completion of each job. He has decided to allow a reserve of cash in his working capital calculations to cover his overheads and loan repayments for the first two months.

2.2.1 Calculate the capital requirements Wayne will need for his business. You will need to refer back to your previous answers to calculate the amount of materials to purchase.

1 Initial asset purchases

Item Amount

Total:

2 Start-up costs

Item Amount

Total:

3 Working capital

Initial Materials

Principal Loan Repayments

Overheads Total:

4 Sub-total

5 10% GST

6 Total capital required:

SOURCES OF FUNDS

7 Total capital required: (from above workings)

8 minus Owners Equity (owners initial investment)

9 Loan capital required

2.2.2 Taking into account your previous calculations, discuss 2 options of funding that you think Wayne should access to set us his business. Explain the funding you have suggested. Discuss 2 advantages and 2 disadvantages of each.

(Guide 50 words)

(table will expand as you type)

Option 1 - Option 2 - Explain the funding option -(How does it work?) Explain the funding option -(How does it work?) Advantage 1 - Advantage 1 - Advantage 2 - Advantage 2 - Disadvantage 1 - Disadvantage 1 - Disadvantage 2 - Disadvantage 2 - 2.2.3 List four (4) of the typical lending criteria banks use when assessing a business loan application. Explain in your own words.

(Guide 50 words)

(table will expand as you type)

1. 2. 3. 4. Assessment 2 - Part 3Case Study - Wayne

Wayne intends to officially open his business on 1st July and has prepared the following sales projections based on his market research. He has already started quoting and expects to have several customers booked for July, August, and September. He expects sales to build up gradually over the first few months, and anticipates increased business activity from November, due to the pre-Christmas rush. He plans a special introductory hourly chargeout rate of $45 for the first six months to help build up business.

Sales Projections for Wayne

Jul Aug Sep Oct Nov Dec

No. working days 26 27 26 25 26 21

No. charge out hours per day 4 5 5 6 7 7

Note that the expected breakdown of income from jobs is Labour 60%, Materials 40%. Wayne has chosen NOT to put a mark-up on his materials for his first year in business as he wants to remain competitive and build up a client base.

2.3.1 Prepare a detailed Sales budget for Wayne for the first 6 months of operation showing estimated income from labour and materials.

Jul Aug Sep Oct Nov Dec

No. working days per month

No. charge out hours per day

Total charge out hours per month

Hourly charge out rate

Total labour income (60%)

Estimated materials income (40%)

Total income (100%)

Case Study continued - Wayne

Wayne uses his monthly Total Incomes from his Sales Budget for the Cash Sales figures in his Cash Flow.

Wayne plans to pay the capital he invests as well as the proceeds from borrowings as one lump sum at start-up.

Wayne uses the following figures from his previous Capital workings: -

Initial assets to be purchased at start-up

Initial materials purchase at start-up

Wayne estimates the timing of his payments for the four-month period as follows: (ex. GST)

Those Subject to GST-

Ongoing materials purchase figures to be taken from Materials Income in Sale Budget

Total Start-up Costs to be paid at start-up

Advertising Ongoing advertising of $60 to be paid each month, commencing in July. Additional business directory advertising of $500 to be paid in August.

Insurances $1 600 per year to be paid annually in July

Registration and insurance $280 to be paid twice a year in August and May

Petrol and maintenance $310 per month, commencing July.

Stationery - $60 per quarter, commencing July.

Telephone - $420 per quarter to commence in September

Not Subject to GST-

GST remittance/refund due in October this will need to be calculated based on GST collected and paid from start up through to September.

PAYG instalment Wayne pays of his estimated tax bill of $12 000 at the same time as he pays his GST first instalment due in October.

Drawings - $3 800 per month for July, August, and September, $4 300 per month from October

Loan principal repayments - $502 per month, commencing July

Loan interest - $126 per month, commencing July

2.3.2 Prepare a Cash Flow Budget for Wayne from July to October (over page)

Cash Flow Budget

RECEIPTS Start up July Aug Sept Oct

Cash Sales

GST Collected on Sales

Owners Investment

Loan Proceeds

Total receipts

PAYMENTS

Payments subject to GST

Initial assets

Initial materials

Ongoing materials

Start-up Costs

Overheads

Advertising Insurances

Registration/Insurance

Petrol/Maintenance

Stationery

Telephone

Total payments subject to GST

GST on payments

Payments not subject to GST

Quarterly GST

Quarterly PAYG Instalments

Drawings Loan repayments Loan interest

Total payments

CASH POSITION

Bank balance at start of month $0

Add Total Receipts

Less Total Payments

Bank balance at end of month

GST Plan for Cash Flow Budget

Start-up July Aug Sept Total for Quarter

GST collected on receipts

GST on payments

Quarterly payment/claim due

OPTION 2

Assessment 2 Retail Case Study

2.1 Using the information and worksheets provided, answer the following questions

Case Study Jackie

Jackie Jensen has decided to start her own business. She has some savings, and she has always been keen on the idea of working for herself. She is considering investing this money in a small shop, specialising in costume jewelry and accessories. She does not plan to have any employees initially. She is currently renting the house where she lives and has no assets. Eventually she would like to grow her business and move into a larger premises and employ a shop manager.

Jackie requires an income of $56 000 per year and would like a return of 10% of her invested savings of $45 000. Whilst her shop will start off very small, Jackies vision is to gradually build up her business into a substantial enterprise. Consequently, she plans to leave some funds in the business to allow for growth. In the first year she would like to leave $4 000 in the business towards future growth. She has done some research and realizes she will probably have to borrow some extra funds to get her started. She hopes to repay her loan as quick as she can and has therefore allowed $4 000 a year to repay any loan principal (over 5 years). She has estimated her tax liability to be $14 000.

2.1.1 Based on the above, calculate the amount Jackie should set as his net profit target for her first year in business.

Desired income of owner (drawings)

Return of invested savings

Capital invested

Rate of return % %

Total Desired return $

Likely loan principal

Total Loan Amount

Repayment years Profit for future growth

SUB-TOTAL (Taxable Income) =

Add allowance for income tax

TOTAL DESIRED NET PROFIT =

Case Study Jackie

Jackies research indicates that she could apply an average markup of 175% to the stock she purchases.

Accounting Fees

Advertising

Cleaning

Electricity

Insurance

Rent

Stationery

Telephone $1 200

$1 440

$2 160

$1 600

$1 800

$15 360

$740

$1 520

2.1.2 What gross profit margin % should Jackies business earn?

Margin = Mark-up x 100 100 + Mark-up

2.1.3 How many sales will Jackie need to earn each year to breakeven? Show your workings.

$

Overheads

+ Principal Loan Repayments

= Total Expenses =

Gross Profit %

= Total annual sales $ =

Total weekly sales $ ( 52 weeks)

=

2.1.5 What sales target should Jackie aim for if she wishes to cover all of her costs and earn the net profit calculated? Prepare a simple Projected Profit Statement. Show your workings.

(Insert correct Gross Profit Margin % from 2.1.2, and remaining Cost of Sales $)

Sales (100%)

Less Cost of Sales %

Gross Profit %

Less Overhead Expenses

Net Profit * * Refer to Net Profit Target

Assessment 2

Part 2.

Case Study Jackie

Jackie has completed some more research to assist her to determine how much capital she will need to get her business started. She has worked out the initial assets she will need to buy for her shop and their approximate costs (GST exclusive):

Shop Fittings

Computer and Software

Office Furniture

Motor Vehicle $7 000

$3 700

$1 200

$18 300

Jackies start-up costs (exclusive of GST) include legal expenses $680, utilities connections $260, initial promotion $1 500 and bond on rental premises $1 600.

The industry average stock turn rate for similar businesses is 6 times per year. Jackie will purchase 2 months worth of stock initially as her core stock and then replenish it at monthly intervals. She intends to sell for cash only. At this stage she has not been able to arrange any trade credit from suppliers but hopes this situation will change after her first six months in business. When calculating her working capital, Jackie has decided to allow a reserve of cash to cover her overhead expenses and loan repayments for the first two months.

2.2.1 Calculate the capital requirements Jackie will need for his business. You will need to refer back to your previous answers to calculate the amount of stock to purchase.

1 Initial asset purchases

Item Amount

Total:

2 Start-up costs

Item Amount

Total:

3 Working capital

Initial Stock

Principal Loan Repayments

Overheads Total:

4 Sub-total

5 10% GST

6 Total capital required:

SOURCES OF FUNDS

7 Total capital required: (from above workings)

8 minus Owners Equity (owners initial investment)

9 Loan capital required

2.2.2 Taking into account your previous calculations, discuss 2 options of funding that you think Wayne should access to set us his business. Explain the funding you have suggested. Discuss 2 advantages and 2 disadvantages of each.

(Guide 50 words)

(table will expand as you type)

2.2.3 List four (4) of the typical lending criteria banks use when assessing a business loan application. Explain in your own words.

(Guide 50 words)

(table will expand as you type)

Assessment 2

Part 3.

Case Study - Jackie

Jackie intends to officially open her business on 1st July and wishes to prepare a sales budget for the next 12 months and a cash flow projection for the first six months of operation, to include in her financial plan.

The following sales estimates have been prepared, based on her market research. She expects sales to gradually build up over the year, but has allowed for increased business activity in December, due to Christmas. All sales will be cash only.

Sales Projections for Jackie

Month Projected Sales

July 3%

August 4%

September 5%

October 6%

November 7%

December 9%

2.3.1 Prepare a detailed Sales budget for Jackie for the first 6 months of operation based on the projected sales figures given above.

Jul Aug Sep Oct Nov Dec

Monthly Sales %

Projected Sales ($)

Cost of Sales ($)

Case Study continued - Jackie

Jackie uses her monthly Projected Sales from her Sales Budget for the Cash Sales figures in her Cash Flow.

Jackie plans to pay the capital she invests as well as the proceeds from borrowings as one lump sum at start-up.

Jackie uses the following figures from her previous Capital workings: -

Initial assets to be purchased at start-up

Initial stock purchase at start-up

Jackie estimates the timing of her payments for the four-month period as follows: (ex. GST)

Those Subject to GST-

Ongoing materials purchase figures to be taken from Materials Income in Sale Budget

Legal Expenses - $680 at start up

Promotion - $1 500 at start-up.

Utilities connection - $260 at start-up

Stationery and Printing - $420 in July, $80 per quarter commencing in September.

Rent - $1 600 for bond at start-up and $1 280 per month from July

Advertising - ongoing advertising of $120 to be paid each month, commencing in July

Insurances $1 800 per year to be paid annually in August

Electricity - $1 600 annually, to be paid quarterly, first payment due in September

Telephone - $380 per quarter commencing in August

Cleaning - $180 per month, commencing in July

Not Subject to GST-

GST remittance/refund due in October this will need to be calculated based on GST collected and paid from start-up through to September.

PAYG instalment Jackie will pay her quarterly tax bill in October at the same time as her GST

Drawings - $5 000 per month commencing in July.

Loan principal repayments - $235 per month, commencing July

Loan interest - $190 per quarter, commencing July

Cash Flow Budget

RECEIPTS Start up July Aug Sept Oct

Cash Sales

GST Collected on Sales

Owners Investment

Loan Proceeds

Total receipts

PAYMENTS

Payments subject to GST

Initial assets

Initial stock

Ongoing stock

Start-up Costs

Overheads

Stationery & Printing Rent

Advertising

Insurances Electricity

Telephone

Cleaning

Total payments subject to GST

GST on payments

Payments not subject to GST

Quarterly GST

Quarterly PAYG Instalments

Drawings Loan repayments Loan interest

Total payments

CASH POSITION

Bank balance at start of month $0

Add Total Receipts

Less Total Payments

Bank balance at end of month

GST Plan for Cash Flow Budget

Start-up July Aug Sept Total for Quarter

GST collected on receipts

GST on payments

Quarterly payment/claim due