Assignment on Diploma of Finance and Mortgage Broking Man

Assignment
Diploma of Finance and Mortgage Broking Management
(DIPMB_AS_v1A4)
Student identification (student to complete)
Please complete the fields shaded grey.
Student number
Assignment result (assessor to complete)
Result — first submission (Details for each activity are shown in the table below)
Parts that must be resubmitted:
Result — resubmission (if applicable)

Result summary(assessor to complete)
First submission Resubmission (if required)
Section 1 Task 1 Demonstrated Demonstrated
Task 2 Demonstrated Demonstrated
Task 3 Demonstrated Demonstrated
Section 2
Task 4 Demonstrated Demonstrated
Task 5 Demonstrated Demonstrated
Task 6 Demonstrated Demonstrated
Task 7 Demonstrated Demonstrated
Task 8 Demonstrated Demonstrated
Task 9 Demonstrated Demonstrated
Feedback (assessor to complete)
[insert assessor feedback]
Page 2 of 79

Before you begin
Read everything in this document before you start your assignment forDiploma of Finance and Mortgage
Broking Management.
About this document
This document includes the following parts:
• Instructions for completing and submitting this assignment
• Results and feedback
• Section 1: Complex lending and broking
• Section 2: Business management skills
Instructions for completing and submitting this assignment
How to use the study plan
We recommend that you use the study plan for this subject to help you manage your time to complete
the assignment within your enrolment period. Your study plan is in the KapLearn Diploma of Finance and
Mortgage Broking Management subject room.
Completing the assignment
The assignment
This assignment is split over 2sections. The information and data you need to complete Sections 1 & 2 is
presented in case studies at the beginning ofthose sections and each task.
Section 1: Complex Lending and Broking
The first section on complex lending and broking, requires you to answer the questions for one (1) of the
three (3)available case studies. Each case study focuses on different lending scenario, (see diagram below).
Page 3 of 79

Section 2: Business management skills
Section 2 requires you to complete the six (6) tasks as listed in this template.
SECTION 1 SECTION 2
3 questions 6 questions
Choose
one path PLUS
Case Study A
Case Study B
Case Study C
Investment Property Finance
Commercial Equipment Finance
Commercial Premises Finance
OR
OR
Task 4–9
Business
Word count
The word count shown with each question is indicative only. You will not be penalised for exceeding the
suggested word count. Please do not include additional information which is outside the scope of the
question.
Additional research
When completing this assignment, assumptions are permitted although they must not be in conflict with
the information provided in the Case Studies.
You may also be required to source additional information from other organisations in the finance industry
to find the right products or services to meet your client’s requirements, or to calculate any service fees
that may be applicable.
Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your work
regularly.
• Use the template provided, as other formats will not be accepted for these assignments.
• Name your file as follows: Studentnumber_SubjectCode_Submissionnumber
(e.g. 12345678_DFP1B_Submission1).
• Include your student ID on the first page of the assignment.
Before you submit your work, please do a spell check and proofread your work to ensure that everything is
clear and unambiguous.
Page 4 of 79

Submitting the assignment
You must submit your completed assignment in acompatible Microsoft Word document.
You need to save and submit this entire document.
Do not delete/remove any sections of the document template.
Do not save your completed assignment as a PDF.
The assignment must be completed before submitting it to Kaplan Professional Education.
Incomplete assignments will be returned to you unmarked.
The maximum file size is 5MB. Once you submit your assignment for marking you will be unable to make
any further changes to it.
You are able to submit your assignment earlier than the deadline if you are confident you have completed
all parts and have prepared a quality submission.
The assignment marking process
You have 26 weeks from the date of your enrolment in this subject to submit your completed assignment.
Should your assignment be deemed ‘not yet competent’ you will be give an additional four (4) weeks to
resubmit your assignment.
Your assessor will mark your assignment and return it to you in the Diploma of Finance and Mortgage
Broking Managementsubject room in KapLearn under the ‘Assessment’ tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your assignment. Failure to do so will mean that your assignment will not be accepted for marking;
therefore you will not receive the benefit of feedback on your submission.
If you do not meet these requirements, you will be notified. You will then have until your submission
deadline to submit your completed assignment.
How your assignment is graded
Assignment tasks are used to determine your ‘competence’ in demonstrating the required knowledge
and/or skills for each subject. As a result, you will be graded as either competent or not yet competent.
Your assessor will follow the below process when marking your assignment:
• Assess your responses to each question, and sub-parts if applicable, and then determine whether you
have demonstrated competence in each question.
• Determine if, on a holistic basis, your responses to the questions have demonstrated overall
competence.
Page 5 of 79

‘Not yet competent’ and resubmissions
Should sections of your assignment be marked as ‘not yet competent’ you will be given an additional
opportunity to amend your responses so that you can demonstrate your competency to the required level.
You must address the assessor’s feedback in your amended responses. You only need amend those sections
where the assessor has determined you are ‘not yet competent’.
Make changes to your original submission. Use a different text colour for your resubmission. Your assessor
will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first
assessor’s comments in your assignment, so your second assessor can see the instructions that were
originally provided for you. Do not change any comments made by a Kaplan assessor.
We are here to help
If you have any questions about this assignment you can post your query at the ‘Ask your Tutor’ forum in
your subject room. You can expect an answer within 24 hours of your posting from one of our technical
advisers or student support staff.
Page 6 of 79

Capital City Finance and Mortgage Brokers (CCF & MB)
George and Mildred are very happy with the way you service your clients and are sure that you are a good
fit for the team. They now want you to turn your focus to your primary task which is to assist in expanding
the business by building relationships with selected real estate agents, accountants and legal firms through
strategic alliances. They also want you to consider how CCF & MB can consolidate its relationships with its
existing strategic partners.
Let’s recap on what you already know about Capital City Finance and Mortgage Brokers (CCF & MB).
It’s a family owned business providing a range of mortgage and finance broking services to the business and
private sectors, with experience in all facets of finance and insurance providing expert advice covering a
multitude of products and options existing within the market.
CCF & MB specialises in home loans, commercial lending, business lending, personal and motor vehicle
finance and insurance (life and general), and focuses on helping clients find the finance service suited to
their individual circumstances.
It provides its services through its association with the following partners:
• Australian Aggregators, a rising business in the aggregation business with an extensive panel of
residential and commercial lenders, and asset finance.
• ABC General Insurance, a boutique insurance company specialising in a full range of general insurances.
• XYZ Life a small family-owned insurance brokerage specialising in the full range of life insurance products.
Based in the city, CCF & MB has the capacity to service clients from their office or anywhere at their clients’
convenience through its team of mobile brokers.
CCF & MB does not hold a credit license but operates as a credit representative of Australian Aggregators.
Since its inception 13 years ago CCF & MB has built a loan book of almost $1.2 billion and averages over
$120 million in new loans annually.
CCF & MB’s vision is to be the mortgage and finance broker of choice in the greater metropolitan area
CCF & MB’s mission statement is to operate professionally in accordance with legislation, our licence and
professional standards
CCF & MB’s values are as follows:
• to act with honesty and integrity at all times
• to provide unbiased advice and conduct business, free from any conflict of interest
• to maintain confidentiality in all dealings
• to meet all NCCP regulatory requirements
• to comply with all mortgage industry laws and regulations
• ensure quality and efficiency in its loan processes.
Page 7 of 79

CCF & MB’s people
CCF & MB is owned by husband and wife, George and Mildred Spencer.
With over 35 years’ experience in finance and business ownership, George established and built a
successful business dedicated to assisting clients with managing their finances effectively. Starting the
business with his wife Mildred 13 years ago, George gained immense satisfaction in seeing it expand to
service more and more clients across the city and greater metropolitan area. Although in recent years he
has stepped back from dealing directly with clients, he still maintains a small select clientele. He also takes
great pride in training and mentoring his team to enhance their performance.
Mildred has over 22 years of lending experience and is qualified not only to assist her clients with their
mortgage requirements but also to assist them with their commercial finance requirements. She also holds
financial planning qualifications. She specialises in asset finance.
The company has a small team of five additional consultants and two administration staff members.
Profiles for the team is as follows:
• Jennifer Dee is recognised as one of the top female brokers in Australia. She has been in the broking
industry for over 10 years and has a passion and dedication to assist and accommodate all of her clients’
needs with their financial dreams. Jennifer is an Accredited Mortgage Consultant with the Mortgage and
Finance Association of Australia (MFAA).
• Louise Spencer (George and Mildred’s eldest daughter) is an Accredited Mortgage Consultant with the
Mortgage and Finance Association of Australia (MFAA) and has been working as a loan consultant for
almost two years. Louise started off in the lending industry in the office as an administrator to gain as
much experience and knowledge as possible before taking a broking role. Her passion for helping her
clients ensures that she is always available to her clients at a time and place convenient for them.
• Michael Spencer is George’s younger brother and is CCF & MB’s equipment finance specialist. He has
over 25 years working in the equipment finance industry. He has developed an in depth understanding
of the transport and agricultural industries, and also provides finance for general equipment,
motor vehicles and computer equipment.
• Martin Longhas specialised in equipment finance for the last three years, but prior to this he spent
five years operating his own retail food business. This practical experience allows him to see things from
his client’s point of view, including experience with equipment finance. He specialises in plant and
equipment in the machinery, woodworking and packaging industries. Examples of some of the
equipment he has financed are farm machinery, extrusion lines, plastic injection moulders,
commercial catering equipment, woodworking plant, packaging lines, forklifts, office fit-outs and many
different motor vehicles.
• Luis Ramirez migrated to Australia in 25 years ago as a young boy with his family. After completing
high school he graduated from university with an accounting degree and worked in ANZ in commercial
lending. He joined CCF & MB 4 years ago and specialises in vehicle and capital equipment financing.
He provides ITC and general equipment lease funding options for clients. By providing better outcomes,
both during and at the end of their equipment leases, Luis’ many clients have been able to reduce costs
and maximise the value of their available budgets.
CCF & MB is a member of the MFAA as a broking business dealing directly with the public. Both George and
Mildred are fellows of the MFAA. CCF & MB is also a corporate member of the FBAA.
All staff members, including consultants, are paid an annual salary plus superannuation. Consultants also
receive a car allowance plus a percentage of trail commissions that are paid quarterly based on their
performance targets.
Page 8 of 79

CCF & MB’s panelled lenders
With access to an extensive panel of lenders, CCF & MB can meet most clients’ expectations.
Residential lenders are listed in the following table.
Adelaide Bank Homeloans Limited Pepper Home Loans
AMP Homeside Phoenix-Circle Credit Union
ANZ ING Direct PLAN Lending
Australian Financial Keystart PN Bank
Australian First Mortgage La Trobe Resi
Bank of Melbourne Liberty Financial St George Bank
BankSA Macquarie Suncorp
Bankwest ME Bank The Rock Building Society
Bluestone Mortgage Mart Westpac
Citibank NAB Wide Bay Australia Ltd
Commonwealth Bank Newcastle Permanent
Heritage Bank Peoples Choice Credit Union
Commercial lenders and asset finance providers are listed in the following table.
Adelaide Bank Commercial Bibby Financial Services Pty Ltd Liberty Financial Commercial
ANZ Commercial Commonwealth Bank Commercial NAB Commercial
Australian First Mortgage Commercial IMB Commercial St George Commercial
Bank SA Commercial ING Direct Commercial Suncorp Commercial
Bankwest Business Banking LaTrobe Commercial Westpac Commercial
Adelaide Bank Commercial Macquarie Leasing Westpac Equipment Finance
ANZ Asset Finance Commonwealth Bank Asset Finance Liberty Asset Finance
Future developments
George and Mildred are very keen to expand and grow their business and are in the process of speaking
with a number of real estate agents, accountants and legal firms with a view to forming strategic alliances.
Due to the expected increase in business George and Mildred are seeking to employ another consultant to
take on the extra work. This person will be required to:
• build strategic relationships with a number of real estate agents, accountants and legal firmsalready
identified
• identify and foster relationships with other real estate agents, accountants and legal firms
• provide finance and mortgage broking services to new clients identified through these strategic
alliances.
Page 9 of 79

Section 1: Complex lending and broking
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Case study A— Tom and Steve Broad
Background
Congratulations, you have just been appointed by George and Mildred as the new consultant to handle the
extra work. Whilst your major focus is to build the strategic relationships you are also expected to build
your own client base using your own connections and networks.
Two brothers, Tom and Steve Broad have approached you with their desire to jointly purchase two
apartments in the same building. They want to purchase them as rental properties. The building has
12 apartments. The units have 80% permanent tenants in place and the remaining 20% are used for holiday
rentals. The location is a highly sought after area and all holiday periods are fully booked.
The brothers have invested together before and have experience in buying and selling property. They have
sold all their other investment properties and the units will be their only investment until they can identify
another opportunity. The cash at bank is mostly from the sales of other investments.
The property
Address: Unit 1, 92 Seaside Lane, Coastville, <Your State> Unit 9, 92 Seaside Lane, Coastville, <Your State>
Purchase price: $350,000 $385,000
Description: 2 bedroom strata title unit on the ground floor 2 bedroom strata title unit on the ground floor
Body corporate fee $2,500 per annum $2,500 per annum
Proposed income Permanent rental at $450 per week Holiday rental at $45,000 per annum
Agent details: Steven Allstone Steven Allstone
Phone: [phone] 1113
Mobile: [phone] 880 088
Page 10 of 79

The clients
Client Tom Broad Steve Broad
Current address: Unit 12, 22 Wentworth Lane, Highville, and has
lived there for eight years
23 Dury Lane Pennant Tops and has lived there with
Marie for six years. Property owned in joint names.
Value $650,000 $450,000
Home phone: [phone] 1212
Status Tom is single, no dependents Steve is married to Marie with no children
Employment PAYG and has been with the same employer for
10 years
Self-employed tradesman operating as a sole trader
for 12 years
Income $85,000 per annum $65,000 per annum for Steve
$30,000 per annum for Marie
Cash at bank $250,000 $150,000
Superannuation $150,000 $150,000 (Steve), $20,000 (Marie)
Contents $100,000 $130,000
Motor vehicle $60,000 $30,000 (Steve), $15,000 (Marie)
Liabilities — home loan $300,000 @ 7.2 % P & I, term 25 years $100,000 @ 7.2 % P & I, term 25 years
Liabilities — credit cards $5,000 limit cleared monthly 3% min payment $15,000 limit, $5,000 debt 3% min payment
Page 11 of 79

Assignment tasks (student to complete)
Task 1a — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Tom and Steve about their history and experience,
and the unit purchase.
In preparing your list of questions you should ensure that you cover the following:
• The complex features of Tom’s and Steve’s situation and objectives.
• Potential risks and Tom’s and Steve’s tolerance of risk. In considering risk you should consider:
– how you would identify the risks and the criteria you used to evaluate these risks
– how you would assess their current exposure, the tools you would use in terms of probability,
impact and the consequences.
(800 words)
Student response to Task 1a
Answer here
Assessor feedback: Resubmission required?
No
Page 12 of 79

Task 2a —Develop complex broking options
You are required to prepare a full report for Tom and Steve by outlining the process and the risks
(potential and real) of which Tom and Steve should be aware.
In a suitable format, document the process that is required for them to purchase the two units as their
investment properties, establishing a joint loan in the brother’s names. You should also include a selection
of lenders that will consider this style of borrowing.
In developing your report you should cover the following:
1. The parties to the loan including any opportunities or constraints that could impact on their
application
2. The different options available and your recommendation of the best loan structure with the lender
— are they using their own property as cross security or the cash at bank as deposit?
3. What various forms of titles could an apartment be registered in
4. A list of the lenders that are able to lend
5. The procedure to commence a loan for a property like this
6. The steps that will need to be in place
7. The client responsibilities, so Tom and Steve fully understand the loan
8. An outline as to the process and what the client needs to arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract/purchase/offer and acceptance. If a Family trust is
involved what name would the title of the property be registered in, and advise what state you are
using to base your answer on
11. The state revenue requirements
12. Which lenders may also require a personal guarantee from Steve’s spouse
13. The maximum LVR to the consumer
14. A summary of all fees and charges — including those for setup and those of the lender.
(800 words)
Student response to Task 2a
Answer here
Assessor feedback: Resubmission required?
No
Page 13 of 79

Task 3a — Implement complex loan structures
Tom and Steve have accepted your recommendations and have given you authority to proceed with their
application.
As part of implementing their loan application you are required to prepare a formal written loan submission
to the lender for pre-approval. Your loan submission must include the following:
• serviceability calculations
• the proposed structure of the loan given there are two brothers and there is a variance in income
• the loan amount
• the property style, size, use
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• your general advice restrictions
• property purchase requirements.
(800 words)
Note: Any assumptions you make should be listed, and not be in conflict with the case study information
already provided.
Student response to Task 3a
Answer here
Assessor feedback: Resubmission required?
No
Page 14 of 79

Case study B— Ray Murdoch and Steve Brown
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Background
You have just met with Ray Murdoch and Steve Brown, referred to you by another commercial client.
Ray Murdoch and Steve Brown jointly own a successful and growing business that manufactures metal
pallets. They trade under the name Pallets-R-Us Pty Ltd. The pallets are manufactured using material that is
lightweight and durable. There has also been a very structured approach to the research and development
for the engineering and design of the pallets. The pallets are used in all industry sectors. Part of the process
involves powder coating the finished product, which is currently outsourced to a local well-established
contractor.
It is critical that Ray and Steve’s product meets market needs. They need to maintain sustainable
production and operating costs if they are to forecast their sales and cost of sales.
They have a well-established client database that provides them with repeat ‘business to business’
dealings. Whilst they have only been trading for 26 months they have a solid business plan with written
supply contracts with three major business clients and several smaller business clients.
Ray and Steve now require a loan to assist them with the purchase of a sophisticated machine, using the
technical platform system CNC. This machine can be programmed to rapidly fabricate multiple components.
The machine has an expected commercial lifespan of at least 15 years with operating software to be
updated every three years. This software and upgrades is included in the purchase price of $800,000.They
need to import the machine from the US. Initial enquiries with the US supplier have indicated that they will
require a letter of credit for the import of the machine.
Their business employs five people and, with the expected increase in business through the automation
of production, they have forecast that they will need to recruit an additional two staff members in the next
3–6 months to meet sales/production demands.
Steve has been in the metal fabrication field all his working life. He has an MBA and understands financial
management. He also has solid engineering skills and developed the majority of the design works for the
business. He is married and has no dependants. His wife is a school teacher and she will be retiring at the
end of the year.
Ray worked with Steve at ‘Protech’ as a foreman. His skills are in production and managing project/job
flow. He has high level technical skills and can complete works to specification at a high standard. Ray is
divorced.
Steve and Ray have provided the last two year’s financial accounts for the trading business, as well as
interim accounts for the current financial year.
Page 15 of 79

Applicant information
Client Ray Murdoch Steve Brown
Current address: Unit 43, 25 High St Northville, <Your State>and
has lived there for six years
23 Desmond Lane Northville, <Your State> and has lived
there with Kate for seven years. They own property jointly.
Value $750,000 $900,000
Home phone: [phone] 1212
Status Ray is divorced with no dependent age children Steve is married with no dependents
Employment Self-employed business owner Self-employed business owner
Income $100,000 per annum $100,000
Property $750,000 $900,000
Cash at bank $12,500 $9,600
Contents $100,000 $85,000
Superannuation $250,000 Steve $350,000, Kate $60,000
Motor vehicle $40,000 $55,000
Home loan $250,000 @7.2% P & I Term 18 years $350,000 @7.2% P & I Term 22 years
Credit card $25,000 limit with debt of $15,000 payment @3% $10,000 limit with debt of $3,000 payment @3%
Car loan $0 $15,000 payment @ 9% payable 4 years
The business
Year 1 net profit after tax $200,000
Year 2 net profit after tax $220,000
Current year interim profit (10 months trading) $200,000
Wages to partner 1 – years 1 and 2 $100,000
Wages to partner 2 – years 1 and 2 $100,000
Dividend to private investor (flat profit fee) – years 1 and 2 $45,000
Key balance sheet items
Cash $25,000
Debtors $220,000
Creditors $100,000
Notes The business currently meets all creditor payments at 30-day terms.
Debtor collection has been solid. They invoice an upfront payment of 50% of the sale price, which assists in
funding their production.
They have orders of $1m over the next 3 months and have made an increase in their gross profit margin.
The orders are from several clients, so their debtors will be well spread.
Page 16 of 79

Task 1b — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Ray and Steve about the proposed transaction.
Calculate the required servicing for the new debt, and the lender comfort surplus.
Outline the process and the risks (potential and real) of which Steve and Ray should be aware.
(800 words)
Student response to Task 1b
Answer here
Assessor feedback: Resubmission required?
No
Page 17 of 79

Task 2b —Develop complex broking options
You are required to prepare a full report for Ray and Steve by outlining the process and the risks
(potential and real) of which Ray and Steve should be aware.
In a suitable format, document the process that is required for Steve and Ray to obtain appropriate finance
for their equipment and set up the loan.
In developing your report you should cover the following:
1. The parties to the loan
2. The product type you would recommend, including an appropriate term, interest rate and residual
(if any)
3. The framework and contents of the letter of credit requirements
4. A list of the lenders that are able to lend
5. The procedure to commence a loan
6. The steps that will need to be in place
7. The client responsibilities, so Steve and Ray fully understand the loan
8. An outline as to the process and what the client needs to arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract to purchase
11. A statement of those lenders who may also require a personal guarantee from the borrower’s spouse
12. A summary of all fees and charges — including those for setup and those of the lender.
(800 words)
Student response to Task 2b
Answer here
Assessor feedback: Resubmission required?
No
Page 18 of 79

Task 3b — Implement complex loan structures
Ray and Steve have accepted your recommendations and have given you authority to proceed with their
application.
As part of implementing their loan application you are required to prepare a formal written loan submission
to the lender for pre-approval. Your loan submission must include the following:
• serviceability calculations, including all borrowing facilities of Directors
• the proposed structure of the loan
• the loan amount
• the property style, size, use
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• your general advice restrictions
(800 words)
Note:Any assumptions you make should be listed, and not be in conflict with the case study information
already provided.
Student response to Task 3b
Answer here
Assessor feedback: Resubmission required?
No
Page 19 of 79

Case Study C — Bill Smith and John Jones
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Background
You are meeting with prospective clients, Bill Smith and John Jones. They have been referred to you by
their accounting firm, Buckland Accountants.
The prospective clients need assistance with the acquisition of owner-occupied premises to replace their
current business premises which is rented and becoming too small for their growing business.
True Blue Pty Ltd trades as True Blue Real Estate and was purchased as an existing real estate business
three years ago. Bill Smith and John Jones are the directors.
The shareholders of True Blue Pty Ltd are Bill Smith, John Jones and a private investor, Amanda Williams,
who does not work in the business and has no involvement in its day-to-day operation. Each holds an equal
one-third share in the company.
Bill and John have each been in real estate for approximately 15 years, focusing on residential sales and
leasing. They have gained their work experience in the local area. A wealth of knowledge of the area,
coupled with an ever-expanding client base, has resulted in sustained and solid growth for the business.
Details of the property
Sale price of the property is $950,000. (There is no GST requirement as it is being purchased as a going
concern.)
A deposit of $95,000 has been paid and is being held in the trust account of the settlement agent/solicitor.
A cash contribution of $233,240 will be made from the general working account of the business.
Property purchase and loan to be in the name of a new entity — True Blue Pty Ltd as trustees for the Smith
Jones Unit Trust. There are a total of 99 units in the trust and the unit holdings mirror the shareholding of
the trading entity, True Blue Pty Ltd.
The property is situated at 100 Smith St, Yourtown, with contracts exchanged at today’s date and an
anticipated settlement date of 90 days.
General observations about the property
The property is in good condition and is well located in the same street as the current rental premises.
It is anticipated that the premises will meet the needs of the business for the next 10 years.
Page 20 of 79

Summary of initial client fact find
Bill and John have provided the last two years’ financial accounts for the trading business, as well as interim
accounts for 10 months of the current financial year.
True Blue Real Estate’s financial accounts
Year 1 Year 2
Net profit after tax $92,000 $140,060
Current year projected- $175,000
Add back (rent) $47,000 $49,142
Additional superannuation to director $31,400 $34,539
Wages to partner one $70,640 $70,640
Wages to partner two $70,640 $70,640
Payment to private investor (fixed flat profit fee) $45,000 $45,000
Applicant information — Bill Smith
Personal details
Address 26 Nowry Road, Yourtown, 1234
Date of birth 17 February 1958
Phone [phone]
Financial details
Gross income $70,640
Owner occupied property valued at $550,000
Outstanding debt on owner-occupied property $210,000 @ 6.2% p.a. on a principal and interest basis
Credit card with limit $15,000 Outstanding debt — $5,000
Superannuation $250,000
Motor vehicle valued at $30,000 (nil debt)
Page 21 of 79

Applicant information — John Jones
Personal details
Address 14 Mary Street, Yourtown, 1234
Date of birth 14 October 1970
Phone [phone]
Financial details
Gross income $70,640
Owner occupied property valued at $750,000
Outstanding debt on owner occupied property $300,000 @ 7.2% p.a. on a principal and interest basis
Credit card with limit $5,000 Outstanding debt — $1,000 cleared monthly, monthly
Superannuation $200,000
Motor vehicle valued at $45,000
Outstanding debt on motor vehicle $15,000 (Assume five year term at 9%p.a. interest)
Business details
Cash in business account $400,000
Other information
Applicants’ solicitor Moffat and Co (contact is Maree Moffat)
16 Tatlor Street, Yourtown, 1234
Phone [phone]
Applicants’ accountant and registered office Buckland Accountants (contact is Simon Williams)
28 Mary Street, Yourtown, 1234
Phone [phone]
Applicants’ banker Westcoal Building Society, Yourtown, 1234
Notes:
• Assumefor credit card debts, the minimum monthly commitment should be calculated at 3% of the
credit limit.
• Each of the working directors has appropriate death, income and disability insurance in place.
• A sensitisation factor of 2% should be used when calculating financial commitments.
Page 22 of 79

Assignment tasks (student to complete)
Task 1c — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Bill and John about their history, experience,
business performance and the property purchase.
In preparing your list of questions you should ensure that you cover the following:
• The complex features of Bill’s and John’s situation and objectives.
• Potential risks and Bill’s and John’s tolerance of risk. In considering risk you should consider:
– How you would identify the risks and the criteria you used to evaluate these risks
– How you would assess their current exposure, the tools you would use in terms of probability,
impact and the consequences.
(800 words)
Student response to Task 1c
The list of questions has been prepared for John and Bill in order to have an understanding regarding their essential
needs. Additionally, the questions would help in gathering the data essential, which could be used for explaining the
financial requirements for Bill and John. It is seen that these questions can slowly assist in discovering the capability to
take risks for Bill and John. The questions that have been prepared can effectively support in gaining an idea about the
current financial accountabilities of the clients. The precise questions are given as follows:
Question 1: What is the current annual income and age of you both?
Question 2: What are the key income sources for both of you?
Question 3: Why are the reasons that have attracted you to purchase the property ?
Question 4: What sort of income are you expecting from the property?
Question 5: What is the present budget you desire for purchasing the property?
Question 6: What are the yearly costs for True Blue Pty?
Question 7: Explain the aims and objectives in order to purchase the property for True Blue Pty.
Question 8: Kindly outline the investment needs you are looking for.
Question 9: Will the property be used for living or for business purposes?
Question 10: What is the bank balance of True Blue Pty?
Question 11: Do you have an idea about the capital needed in order to purchase the property?
Question 12: What is the job you need us to perform and undertake?
Question 13: Did you follow the rules of investment that are disclosed by the Australian government?
Question 14: Explain what will you do if the value of investment falls within the next 40 years?
Page 23 of 79

Question 15: Explain the present demands for taking new investment for True Blue Pty?
Question 16: What is the main source income for True Blue Pty?
Question 17: What do you desire: “short-term gains or long-term returns”?
Question 18: Do you think short-term risk can have an impact on the preparation of the True Blue Pty
portfolio?
Question 19: What would you do if a loss on investment occurs?
Question 20: Explain the investment strategy that is incorporated during making decisions regarding
reducing risks?
Question 21: Do you have precise knowledge on the requirements of investment market?
Question 22: Explain any previous investment decisions and its effect on return?
Question 23: Explain the accession precedence degree of True Blue Pty?
Question 24: Explain the idea of gaining success?
Question 25: Outline the procedure of borrowing undertaken by True Blue Pty for buying the apartments?
Question 26: Explain the pattern of investment for True Blue Pty.
Question 27: Have you seen any risk, which may have taken place after buying the apartment?
Question 28: What is the present financial scenario for True Blue Pty?
Question 29: What kind of investments can True Blue Pty add in future?
Question 30: Is the company ready to take higher risk for gaining better returns from the investment?
Question 31: Outline the aspects True Blue Pty look before taking an investment within a property?
Question 32: Has the company done any trades in the financial markets?
Question 33: What qualities and services does True Blue Pty want from the consultant?
Question 34: What is the frequency of our meeting in order to provide status updates over the
apartment?
Question 35: Outline the geographical restrictions for the property?
Question 36: Explain the overall geographical benefits for the property?
Question 37: What is the present return on investment attained within the accounting year?
Question 38: Is the company ready to undertake online investments?
Question 39: What are the choices of investment that can be taken by the company while purchasing the
property?
Question 40: Explain the asset type, that True Blue Pty have.
Question 41: Discuss the measures taken by True Blue Pty in understanding the best possible
Page 24 of 79

opportunities for investment. Why did it fail or succeed?
Question 42: Outline the role that can be undertaken on our part other than providing financial support.
Question 43: Explain the exact social reporting process of True Blue Pty?
Question 44: Will you be able to continue the outlined income level till the tenure of the loan?
Question 45: What is the tolerance towards risk?
Question 46: Outline the aspects considered in order to purchase the property that has been bought
earlier.
Question 47: Address True Blue Pty’s present disposable income?
Question 48: Have you thought of investing in equity or other types of investments?
Question 49: Has loan from any other financial institution for the same property has been taken by True
Blue Pty taken?
Question 50: Did you go to any other financial company in for the sanction of the loan for the same
property? If yes, what was the offer and why did it not work?
Question 51: Does True Blue Pty have an idea about gearing or solvency ratios? Furthermore, what job
does have it has to perform in discovering the solvency of a person or company?
Question 52: Do you have an idea about the financial products delivered by us?
Question 53: Are you willing to alter the current investment scope if better opportunity is found?
Question 54: How does the Trust Structure fucntions?
Question 55: How does the office look at the properties that are owned by the trusts?
Question 56: Does Amanda know regarding the property that is being bought by True Blue Pty?
Question 57: Does Amada have knowledge that as the trust is buying the property she becomes the
beneficiary and the guarantor to True Blue Pty?
Assessor feedback: Resubmission required?
No
Page 25 of 79

Task 2c — Prepare complex broking options
You are required to prepare a full report for Bill and John by outlining the process and the risks
(potential and real) of which Bill and John should be aware.
In a suitable format, document the process that is required for them purchase the new property and
establishing the loan.
In developing your report you should cover the following:
1. The parties to the loan
2. The best physical set up with the lender — are they using their own property as cross security or the
investment property?
3. What name should the title be registered in given there is a Trust involved and advise what state you
are basing your answer in
4. The procedure to commence a loan for a property like this
5. The steps that will need to be in place
6. The client responsibilities (Bill and John should fully understand the loan that is proposed)
7. An outline as to the lending process and what the client needs to arrange
8. The documentation needed to commence the borrowing
9. The name in which the client will sign the contract to purchase
10. The state revenue requirements
11. A statement as to whether guarantees from spouse’s or any other security will be required and why
this is/is not the case
12. The maximum LVR
13. Suggest three (3) lenders to client’s that would be likely to consider this request
14. A summary of fees and charges — including those for setup and those of the lender.
Note: You may make any reasonable assumptions necessary in order to complete the proposal.
(800 words)
Student response to Task 2c
Dear Bill and John,
Being the directors of a trust which is possessed with new private investor, Amanda. Every one of you have one-third
of the firm named the “True Blue Pty Ltd” which trades as “True Blue Real Estate”.
The document generally assists in discovering the actual and the probable risks, which might take place from the
investments in the property. Additionally, the document even addresses the total loan, which might be sanctioned to
True Blue Pty which trades as True Blue Real Estate of the property. The report even addresses the loan package,
which might be taken by True Blue Pty for assisting the purchase of the asset for the New Trust Entity named “Smith
Jones Unit Trust” and “True Blue Pty” will become the trustee for “Smith Jones Unit Trust”. Amanda is even the
purchaser of the property and is an applicant for the loan as she has one-third of the share of the firm. Thus, the
“Smith Jones Unit Trust” is the property buyer as the asset and the trustee of the “Smith Jones Unit Trust” is “True
Blue Pty” and the data in accordance to the beneficiaries and guarantors.
True Blue Pty Ltd Year 1 Year 2
Net profit after tax $ 92,000 $ 140,060
Page 26 of 79

Rent (Add back) $47,000 $ 49,142
Additional superannuation to director $31,400 $34,539
Wages to partner one $70,640 $70,640
Wages to partner two $70,640 $70,640
Payment to private investor (fixed flat profit fee) $45,000 $45,000
Loan options
Instalments loan “Smith Jones Unit Trust” can incorporate for the purpose of instalment
loans, which may help in the buying of the property. This associated loan
may even assist in enhancing the total “credit rating” of “True Blue Pty”.
Furthermore, the loan will even assist in adjusting the amount of the total
instalment that needs to be paid on a monthly basis. The loan period is more
and is seen to be 30 to 25 years. The rate of interest is fixed. Amanda is the
beneficiary of the trust will therefore be the guarantor to the one who is
sanctioning the loan.
Line of credit loans This sort of loan is generally undertaken in order to assist in improving the
purchasing power of the “Smith Jones Unit Trust”. Additionally, this sort of
loan mainly has increased rate of interest, which will be levied on the
customers. The loan time frame is not over 5 years. The loan is levied over
the amount that is being utilised and not over the credit given by the bank.
The rate of interest is variable in nature.
Balloon loans These loans mainly assist the customers to give out interest for the loan and
the real amount is generally paid at the completion of the loan period.
Investors generally choose this loan to buy assets and sell them to earn
profit. The payment of interest is either variable or fixed in nature.
“Smith Jones Unit Trust” can easily implement process of instalment for sanctioning the loan value which may
be demanded in order to buy the asset. It is seen, that this loan process could precisely assist “Smith Jones Unit Trust”
to undertake sufficient decisions related to the investment by taking support of the trustee “True Blue Pty Ltd” where
John and Bill are directors and Amanda is the recipient to “True Blue Pty”.
Loan Providers Commercial property loan
ANZ  Interest rate of 7.02%
 No Application Fees
 No Annual Fees
 5 to 30 years minimum term loan
 $10,000 to $100,000,000 loan amount provided
Page 27 of 79

 LVR 80%
SUNCORP Bank  Interest rate of 4.29%
 No Application Fees
 No Yearly Fees
 5 to 15 years minimum term loan
 $10,000 to $1,000,000 loan amount provided
 LVR 60%
BOQ  Interest rate 4.99%
 No Application Fees
 No Annual Fees
 5 to 15 years minimum term loan
 $200,000 to $100,000,000 loan amount provided
 LVR 65%
Commercial Bank  Interest rate 7.81%
 No Application Fees
 No Annual Fees
 Maximum 15 years term loan provided
 $25,000 to $100,000,000 loan amount provided
 LVR 85%
The kind of risks that “Smith Jones Unit Trust” may face for buying the property are as follows:
Types of Risk Explanation
Liquidity Risk “Smith Jones Unit Trust” may have an increase in the risks related to liquidity, as
investments within properties mainly lead to a fall in the availability of cash for the
owner. Additionally, the low amount of liquidity might decline the capability of
“Smith Jones Unit Trust” to pay the instalments for the loan.
Inflation Risk There is no risk of inflation as the rate of interest is fixed and no alterations in
instalment can take place.
Specific Risk or
systematic risk
This kind of risk is generally available for the equity investors, which generally
depends on distinct risks. It is seen that there is no specific risk, which may be faced
by the “Smith Jones Unit Trust”
Market Risk The market risk refers to fall in the annual income created from the property that
may delay the ability of “Smith Jones Unit Trust” to make sufficient payments for
their instalments.
The entire loan can be taken ANZ Company and this would help the “Smith Jones Unit Trust” to raise the time
frame of the loan to 30 years. Conversely, the rise tenure of the loan and interest rate being fixed might assist in
Page 28 of 79

creating the desired liquidity to pay for the monthly instalments. Amanda is the guarantor for the loan because she is
the trust beneficiary.
The two sorts of registration for the asset are as follow.
 “Register of Deeds for Common law under the Registration Deeds Act”.
 “Land Titles Act in the Land Titles Register”, that implies that the “new Trust Entity” has been
licensed by the name of “Smith Jones Unit Trust” while it was being purchased at the “Land Titles
Office”
The” Registration Act’ section 4, is utilised for property registration with the name of “Smith Jones Unit Trust” and
“True Blue Pty” being the trustee.
Stages Explanation
Stage 1 Discovering the loan applicant’s viability
Stage 2 Assessing the documents with respect to the property valuation
Stage 3 Dealing out the reports and authentic mortgage property information to the
bank
Stage 4 Assessing the total amount of loan for approval towards the property
Stage 5 Giving out the instalment value and interest rate for the property
Stage 6 Giving out the transaction reports for the loan property
The documents that are essential for loan amount borrowing from bank are outlined as: .
 “Rental leases or commercial leases”
 “Precise copies of contract” with parties
 Present registration for business for making use the property for residential or commercial or
purposes
The entire fees which will be paid out by the” Smith Jones Unit Trust” are as follows:
 Registration fees
 Bank fees and charges
 Insurance fees
 Sales commission
 Documentation fees
 Inspection and survey fees
“ANZ Bank” needs the guarantee from Amanda with respect to the applied loan by “Smith Jones Unit Trust” as she is
the recipient for the trust.
The LVR amount that is highest from the bank can assist the “Smith Jones Unit Trust” to mitigate their exposure to
Page 29 of 79

liquidity for the asset. This has led to a rise in the loan amount which can assist the lender to aid the financial
obligations that are short-term and long-term in nature.
Particulars LVR Year 1 Year 2
Income from Rent $47,000 $49,142
Purchase price $950,000 Nil
Deposit $95,000 Nil
Cash contribution $233, 240 Nil
ANZ EMI Payment 80% 497408 -
SUNCORP Bank EMI
Payment t
60% 373056 -
BOQ EMI Payment 65% 404144 -
Commercial Bank EMI
Payment
85% 528496 -
The “Smith Jones Unit Trust” and “True Blue Pty” being the trustee will request for a loan that is long term in
nature from ANZ Bank. The bank will initiate the same prior to sanctioning it.
 Ascertain how much one can borrow
 Assess the expenses that will be levied in getting the loan.
 Assess the options available for investment loan
 Award pre-approval of the loan
 Purchase the property.
The actions that will need to be in order are:
 Ascertaining payment of the rate of interest
 Understanding the tenure of the loan.
 The time of issue of the loan and the date of expiry for the loan.
 The lender needs to have access to the property that is placed as a security.
Client’s obligations
 They would be required to pay out the principal worth ascertained and the interest.
 Converse with the lender regarding any changes in payment, address change, issues in payment.
State revenue requirements
 “Stamp duty” for the purpose of refinancing the loan
 “Land tax”, on the property that is being occupied
During the time taking the loan, “Smith Jones Unit Trust” and “True Blue Pty Ltd” needs to disclose reports to the
lender so that they can ascertain proof and evidence about the borrower during the time of sanctioning the loan. The
statements that needs to be provided to the lender are::
 The financial reports of the business of True Blue Pty, that includes the “Profit or Loss statement”,
that is inclusive of the “supplementary schedules” from the past three accounting year and the
“cash flow statement” and the “balance sheet”.
 The loan taker even needs to disclose bank statements as certain banks demand the bank
statement for the last three months.
Page 30 of 79

 The lender even require any present documents related to loan or any lease contracts in order to
understand about how the firm pays for the current loan and the actions taken taking in order to
pay the loan on a timely manner.
 The income tax paid of the firm is even required by the firm
 The financial data of the individuals are related with the firm is even maintained by the banks in
order to understand the personal financial data and how they have taken care of the financial
accountabilities.
 The lender needs the licence of the company in order to understand the genuineness of the
company in the government’s view.
It has viewed that the loan guarantor has certain responsibilities and are obligated if the company is incompetent
to pay for the loan in a timely manner. In case of the situation when the directors of the firm are defaulter then it
is the function of the guarantor to perform as the person accountable who has to take the step of paying for the
loan on for the firm. The lender needs a guarantor for allowing the loan as if the company and the director who
are taking the loan becomes defaulter then the guarantor has the responsibility to pay for the loan company’s
behalf and the director. The company has to give out fixed and floating fees with the help of the asset of the firm
in case of default to the lender so that the lender can receive the interest and the principal loan value from the
security of the business and thereby limit them from receiving any defaulter to the money provided as loan. The
trustee to the “Smith Jones Unit Trust” is “True Blue Pty” and the directors of the firm are “Bill and John”.
Recommended list of lenders:-
 “ANZ bank”
 “BOQ bank”
 “Suncorp bank”.
.
Assessor feedback: Resubmission required?
No
Page 31 of 79

Task 3c — Implement complex loan structures
Bill and John have accepted your recommendations and have given you authority to proceed with their
application.
As part of implementing their loan application you are required to prepare a formal written loan submission
to the lender for pre-approval. Your loan submission must include the following:
• serviceability calculations
• the proposed structure of the loan given the purchases is in the name of a new Unit Trust entity
• the loan amount
• the property style, size, use
• proposed security
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• restrictions on overseas purchase, if any
• your general advice restrictions
• property purchase requirements.
Notes:
• Any assumptions you make should be listed, and not be in conflict with the case study information
already provided.
• You will need to calculate and include your workings of the required servicing and debt service cover
ratio for the new debt and existing borrowings of Directors. Comment on the DSCR comfort level for
lender.
• You may make any reasonable assumptions necessary in order to complete the proposal.
Student response to Task 3c
The overall data for “True Blue Pty Ltd” the trustee to “Smith Jones Unit Trust”, is addressed with the assistance of the
table that can be assessed by the banks to discover their financial scenario as financial amounts of “True Blue Pty” are
not given.
Borrower
The loan taker is “Smith Jones Unit Trust” as they need to buy the property where they want to function their
business.
True Blue Pty Year 1 Year 2
Net profit after tax $92,000 $140,060
Current year projected- $175,000
Add back (rent) $47,000 $49,142
Additional superannuation to director $31,400 $34,539
Wages to partner one $70,640 $70,640
Page 32 of 79

Wages to partner two $70,640 $70,640
Payment to private investor (fixed flat
profit fee)
$45,000 $45,000
Address
The address of the borrower is given as:
37 Ashton Road Victoria Melbourne 97001
Phone: [phone]
Fax: [phone]
Mobile: NA
Date of birth: NA
License Number: C/47828NE
Loan Amount: $950,000
Intention of the loan
The essential idea of the loan is to raise the total earnings of “Smith Jones Unit Trust” and “True Blue Pty” by buying a
bigger asset where they would develop their business and enhance their profit from investments. It is seen that with
the loan value that is required, “Smith Jones Unit Trust” and “True Blue Pty “can enhance the liquidity of the business.
The customers even have to give justifications for sanctioning of the loan. The new Trust person of “Smith Jones Unit
Trust” is the actual property buyer.
Funding Position:
It is seen that the rationale for the demand for the fund can assist in developing the entire risk exposure. A down
payment is required for loan that would be taken, which will be paid by “True Blue Pty” for gaining the loan for the
asset. The discovery of adequate rates of interest, functional expenditure and margins can gradually assist in the
maintenance of the liquidity that is desired.
Security:
The making use of “NCCP” will generally help in evaluating in authenticity of the data disclosed by “True Blue Pty”. It is
seen that “NCCP” supports in for examinations and inquiries for addressing the entire credit of “True Blue Pty” that
assists the loan givers to discover the credit rating of the loan taker. “NCCP” successfully initiates precise evaluation on
the property of the loan and the brand image of “True Blue Pty”.
Detailed Description of the Property
Selling price of the property is $950,000. “(There is no GST need being the property bought as a going concern)”.
$95,000 has been paid as deposit and is preserved in the trust account of the payment of agent/solicitor.
A contribution of cash is $233,240 would be paid from the normal functional account of the company.
Purchase of the loan and the asset will be in the name of the new entity — “True Blue Pty Ltd” as trustees for the
“Smith Jones Unit Trust”. Overall 99 units in the “trust and the unit holdings” mirror the trading individual
shareholding, “True Blue Pty Ltd”.
The asset is located at “100 Smith St, Your town”, with exchange of agreement completed in the current date and an
projected date of settlement after 90 days.
The asset is in proper position and has a proper location in the same street where the present property is located.
It is projected that the premises will fulfil the desires of the business for the 10 years in the coming future.
Repayment structure of the New Entity:
Page 33 of 79

The overall repayment model is generally prepared from different sorts of desires, which could be prepared by loan
giver in order to receive the loan payment. The “ATO consideration” and “State legislation OSR requirements” can
support in discovering the repayment model that may be utilised by “True Blue Pty Ltd”. The loan for the corporate
entities is Bill and John and Amanda. Bill and John are directors and Amanda is the beneficiary to the loan.
.
OSR requirements:  “The OSR predominantly helps in distinguishing the right
instrument, which may be utilized to recognize the duty payable on
agreements of loan”.
 “OSR furthermore assists in differencing the court proceedings and
the loan that is given to the borrowers. .
 It even assists in having loan contracts and provides the “offer
letter” in accordance to the valuation of the property.
 The selections of OSR basically assist in explaining the lawful
offerings of the loan to the clients.
ATO Considerations:  The considerations of ATO precisely provide rules and policies,
which could be made use of by financial firms to decide on
adequate loan advances
 It even implements the relative standards, which may be looked
upon while examining the loan credibility of the money
providers
Particulars LVR Property 1
ANZ EMI Payment 80% = 621760 * 80%
= 497408 loan amount
SUNCORP Bank EMI
Payment t
60% = 621760* 60%
= 373056 loan amount
BOQ EMI Payment 65% = 621760* 65%
= 404144 loan amount
Commercial Bank EMI
Payment
85% = 621760* 85%
= 528496 loan amount
Serviceability Calculations:
This calculation constitutes of the fees of work out that are payable for the plans and the reports that have been filed
with the “Lands Titles Office (LTO)”. The calculations of serviceability for the asset has been given below:
Sale Price: $950,000
Stamp Duty: $46080
Lodgement fee: $7504
Page 34 of 79

Transaction fee: $15
Property Valuation review fees: 260
Total: $53859
Recommendation
“Smith Jones Unit Trust” and “True Blue Pty” could productively exploit the loan option from ANZ in order to purchase
the asset for the intentions of investment. It is seen that investment in the real estate asset for the business intentions
which can professionally increase the revenue from the investment. It is seen that investment property would create
cash flow from the investment asset and thereby enhance the earnings of the business and from the entire
investment. It is suggested to payout the interest and the actual worth of the loan in a timely manner. “Smith Jones
Unit Trust” would get the loan granted as they conform all the elements and Amanda being the recipient has the
potential to perform as a guarantor to the lender for the loan taken for “Smith Jones Unit Trust”.
Assessor feedback: Resubmission required?
No
Page 35 of 79

Section 2: Business management skills
Task4 — Developing and nurturing relationships with clients,
other professionals and third party referrers
George and Mildred now require you to write a plan to assist in developing and nurturing relationships with
clients, other professionals and third party referrers.
Your plan should address the following:
1. How CCF & MB’s policies and procedures and legislative, regulatory and professional codes of practice
impact on developing and nurturing relationships
2. How you would use CCF & MB’s social, business and ethical standards to develop and maintain positive
relationships
3. The importance of confidentiality and how you would maintain it in your dealings with colleagues,
clients and other parties
4. How you would adjust your Interpersonal style to the needs and situation of other parties
5. How you would go about developing and maintaining business and professional networks and other
relationships to benefit the organisation, and how you would use them to identify and cultivate
relationships in order to promote and market the organisation
6. How you could use and cooperate with other professionals and third parties to expand and enhance the
reputation of the organisation, and to identify new and improved business practices
7. How you would build referral business through appropriate communication channels to find and secure
new business relationships
8. How you would identify referral needs and provide information p about CCF & MB’s relevant products
and services
9. How you would secure interviews with referral business so that then needs of clients can be met.
(1,000 words)
You may use any format for your plan but it must address each of the points above. If you are unsure as to
how to write a plan, you can refer to the Business Growth and Marketing topic and use the suggested
SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the
information provided in the background information.
Student response to Task 4
Plan for development of relationship with clients
The today’s scenarios how a plan for improving relationships with the customers, professionals,
expert and other third-party by using “SMEAC” framework. This framework mostly comprises of five
paragraph arrangement that is used for ordering and showing management relationship plan for
professional works. The format “SMEAC” stands for: S for situation, M for mission, E for execution, A for
administration and C for Command.
Situation
In this, situation describes as particular segment that gives an overview of different aspects and
figures that lines up with the background facts with the professional works. The main mission of “CC” and
“MB” is to form a relationship with the customers, third-party references and professional experts. The
situation mostly reveals to efficacy of the company’s habitat where the work habitat and situations
influence the complete performance of the company. Again, the situation analysis of the company’s habitat
Page 36 of 79

clarifies the reality where the business’ works in comprises with different partners like “Jennifer Dee” and
“Louise Spencer”. In addition to this, it is important to work in accord to the policies of partnership
agreements. It might occur that the situation improvises so that the business becomes beneficial and
strategies between different real estate agents help in getting new potential customers through strategic
alliances for using funds and mortgage aids.
Mission
The mission statement defines the work of the management where the company can undertake
strategies for getting organizational goals in the best appropriate way. Furthermore, the mission statement
explains the process for accomplishing business works. “Capital City Finance and Mortgage Brokers” has the
aim where the company rely in keeping relationship with the clients. The mission statement of “Capital City
Finance and Mortgage Brokers” is to make strong as well as lasting relationship with different stakeholders
of the company such as customers and experienced professionals.
The main goal of “Capital City Finance and Mortgage Brokers” is to form a relationship with customers,
third-party referrers and authorized professionals. Furthermore, the company inspects the effects of
policies, legislatives on flourishing relationships as well as company’s procedures. In addition to this, the
company impacts regulatory and codes of practice on flourishing relationship with the clients. The business
goal at forming interpersonal style to the requirements and situations of specific parties. The business
benefits from the expansion as well as business improvement and professional contacts on the “Business
Corporation”. Furthermore, the business aims at figuring and cultivating relationships for marketing and
promoting of business works. The business aims at bringing enhancement in their referral business with the
use of communication channels. It is necessary to figure out referral information and requirements on
matters relating to services and products of “Capital City Finance and Mortgage Brokers”. The company
requires forming ways where confidential interviews can be performed with their referral business for
meeting the requirements of the potential customers.
Execution
Execution means describing the actions plan where the management of “Capital City Finance and
Mortgage Brokers” should perform strategies for task completion according to pre-determined plans.
Furthermore, the management of “Capital City Finance and Mortgage Brokers” should make an action plan
that incorporates procedures and policies as far as possible. The guiding procedures and principles of
“Capital City Finance and Mortgage Brokers” takes into accounts administrative and clerical process, IT and
financial systems, management and supervisor business, complaints resolution procedures as well as
professional development requirements.
Furthermore, the legislative, professional code of practice as well as regulatory activities explains
regulations that are given by the Local Governing Body, Territory and the State. In addition, the
management of “Capital City Finance and Mortgage Brokers” should be considering account “Consumer
Law, Australian Property Law and Product Liability Laws”. These policies are imposed by the “Australian
Competition Consumer Commission”. “Capital City Finance and Mortgage Brokers” need to pursue rules
and regulations according to Australian Law for improving strong and lasting relationship with the
customers. Discretion of information need to be follow where goals can be accomplished and aims at
improving strong relationship with the stakeholders
“Capital City Finance and Mortgage Brokers” should accord with national privacy laws so that they
can regulate the collection procedure as well as storing and accessing personal information and
communication at the same time. There are various requirements required for maintaining discretion of
information. Maintaining secrecy of information is required at the time of carrying out process transactions
that builds or enhances relationship with different stakeholders of business enterprise.
The recommended business has the essential potential for forming strong relationship with
stakeholders that comprise blueprint of the business and professional framework. Furthermore, the
professional and business networks takes into account different award ceremonials, networking events,
professional expert associations as well as special events and sports events. There are also other
relationship issues that influence the course of maintaining relationship with the stakeholders that take
Page 37 of 79

into account accounting and taxation specialists.
Administration and time logistics
As per “SMEAC” format, it mostly takes into account planning procedures and methods how plan
required to be performed. This section clarifies the details on how to do activities as described in the
mission statement of” Capital City Finance and Mortgage Brokers”. To that, the part clearly explains the
administrative and logistics that links with the plan that lines up with execution process in the best way.
Command
Command explains the “Business Corporation” as well as giving the format in a concise and clear
form so that it is understood by the consumer. Improving working process help in growing the level of
competence where “Capital City Finance and Mortgage Brokers” work together with the suppliers as well as
consumers. “Capital City Finance and Mortgage Brokers” need to abide by the policies as per the measures
and strategies as framed by company. The company needs to abide by the” Consumer Credit Code” as well
as discretion and standards. Furthermore, the interpersonal styles help in forming relationship with the
customers such as notifying and adoption of soft mechanism that negotiate, persuade, sell and seek input
from different sources. Therefore, the corporate as well as specialized networks help in activities such as
seminars, conferences and social ceremonies.
Assessor feedback: Resubmission required?
No
Page 38 of 79

Task5 —Growing the business
Having considered how you would go about building and nurturing relationships, George and Mildred now
require you to turn your attention to marketing and promoting CCF & MB’s business. This requires you to
develop a marketing plan for the business.
In developing your marketing plan you should consider the following:
1. Your plan should be developed in line with CCF & MB’s vision statement
2. The identification of target markets using a combination of research and your own personal experience
3. The identification of your major competitors (at least two) with a competitor analysis developed for
each competitor
4. The identification of CCF & MB’s market position based on your research findings and analysis
5. How you would promote CCF & MB’s brand and the tools you would use to achieve this
6. The provision of options for increasing yield per existing client
7. How you would implement your plan and monitor it to ensure objectives/goals/performance indicators
are being met
8. How you would adjust your plan if required.
(1,000 words)
You may use any format for your plan but it must address each of the points above. If you are unsure as to
how to write a plan, you can refer to the Business Growth and Marketing topic and use the suggested
SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the
information provided in the background information.
Student response to Task 5
Marketing plan of CCF& MB:
The format of “SMEAC” is looked upon to be the most prescient design for the purpose of the marketing plan
of a firm. The vision report of financial service consultant is to undertake their performance in an expertise manner in
accordance to the “license”, “legislation” and operational standards. For the purpose of the companies to establish,
pro-active marketing plans, several plans are essential to be implemented. For the purpose of development, the
entrepreneurs of “CCF& MB” need to create strategic coalition with “legal companies, accountants and real estate
firms”. The company’s mission is to attain debut Australian mortgage broker. In accordance to the format of “SMEAC”,
the rate of development of the companies is assessed with the assistance of the mission statement. The credit
representatives who are associated with the functions do not posses credit licences. The strategic coalition is created
by the companies in order to give out the services to their new customers and they look to deliver essential broking
and financial operations. It would assist in making sure that the organizational rate of development that is regarded to
be competitive so that they can function according to their rivals.
Identification of target market:
The marketing plan development is in accordance to the organization mission as the lenders are looking to
provide the clients with the competitive edge with regards to the rates of mortgage. The financial service providers
have the target market which is inclusive of the expertise clients in order to services related to loans and finance. The
companies look to diversify the services by assisting the gents of the real estate. The relationship with the legal
companies and the accountants that would be constructed by the gaining the assistance from these agents. The
method of taking decisions within the firm will be enhanced by creating a official relationship with Bill and John.
Identification of major competitors:
The key competitors of “CCF& MB” in Australian loan market are “Dexus property group”, “Bridgecorp
Holdings” and “Real estate investment fund”. In order to ascertain the determinants and for complimenting the
Page 39 of 79

competitors, features that needs to be considered are mortgage and real estate market. Construction of specific
property is the base of the assessment of marketability that supports in attaining insight into the competitive scenario
of the firm. For assessing the viability and intentions of investment, individual process of decision making is followed.
Identifying market position of CCF& MB through research:
The “financial service provider” and “mortgage broker” would be represented as a firm willing and have the
capability to provide service to the customers according to the convenience.
Determinants Bridgecorp Dexus property Australian Real CCF& MB
Experience 8.5 6.5 6.6 9.5
Logo 7 76.5 7 7.5
Elements of
marketing
7 7 6.5 7.5
Reliability 7 7 8 8
Personality 6.5 8 5 8
Stability 6 8.5 6 8
Procedures of sales 6 5 5.5 9.5
Clients charge 6 7 7 9
Tools for promoting CCF& MB brand:
A standout amongst the best quality of CCF& MB is that items offered by association should be advanced. Concerning
this, they are required to utilize proper device with the end goal of development. Strong publicizing is the best
possible phase for advancing the products of the firms. This would help in expanding the long-run development of
companies. Moreover, they can build business and assemble their relationship by having their existence in the market
with the help of digital advertisement. This can include issuing business card looking for public to have the knowledge
of the items advertised. In this way, utilizing such limited time instruments, companies would have the capacity to
advance their products and extend globally in the future
Option provision for increasing per client yield:
For achieving the normal development of association in connection to overall revenue and target income, certain
arrangements are made by “CCF& MB”. Targets of accomplishing development are confronted and faced with
numerous issues as seen from past research. Current customers' base is relied upon to increase through 20%
achievement rate by concentrating on creating arrangements. Considering the open doors in an ineffectual path for
upgrading the base of client in that specific section are looked upon as the real issues that has been estranging the
companies. Administrators utilized in arranging process are broadened assistance by functional procedure of CCF& MB
as it helps in executing the arrangement as effectively as could be expected under the circumstances.
 “Strategies of organization need to be in line with the performance driver and leading performance
indicators”.
 “Developing facilities for framework by making advices and enhancing investments.”
 “In order to make sure that enhanced probability of attaining target and accomplishment of plan, it
Page 40 of 79

is essential that strategies require to be performed by discovering the process. “
Command:
Keeping in mind the end goal to increase focused position in the Australian market, there has been collection of
important data and information by association. This has driven through the improvement of special systems for
making their administration famous in the market. Besides, association has likewise possessed the capacity to
conjecture future rate of return of the speculation extends that would be embraced sooner rather than later.
Implementation and monitoring of marketing plan:
Innovations are viewed as the “CCF& MB” assist for accomplishing their authoritative objectives in future
period. Association gives business advances, lodging credits, reserves vehicle costs alongside business loaning. Hence,
stretching out help to customers is the fundamental objectives of plan. Mobile dealers are one of the customer of
association that they expects to give administrations and it is basic to take after code of moral lead for accomplishing
business targets in future. Work of such systems would help in furnishing administration to planned customers with
interests. In addition, budgetary consultancy is given administrations with the goal that they can meet their business
destinations.
Retail segment can be viewed as the multiplier that has followed up on and about “CCF& MB's”
improvement and advancement. Plan of association is age of most extreme measure of income in
Australian broking industry. Changes of plan of organization is improved the situation picking up knowledge
into the aggressive position in the Australian market and this has been finished by supporting rental
operators related with associations. In future, if association looks for the assessment of their predominant
rivals, they is shape compelling advertising designs in future.
Assessor feedback: Resubmission required?
No
Page 41 of 79

Task6 — Identifying risk and applying risk management processes
George and Mildred have become very concerned about the potential risks that could jeopardise CCF &
MB’s business operations. They were very impressed with your growth and marketing plans for CCF & MB
so they have now moved you into more of a general manager’s role with expanded responsibilities,
including managing CCF & MB’s risk. As part of your new responsibilities you are required to develop a risk
management plan.
In producing this plan you are required to:
1. Establish the context for CCF & MB’s risk management plan
2. List and explain the tools you will use in assessing the risks you identify
3. Identify the stakeholders you would consult in establishing context and the tools you would use in
identifying CCF & MB’s risks
4. Identify at least two risks that CCF & MB could face for each of the six categories of business risk
including strategic risks, compliance risks, financial risk, operational risks, market and environmental
risks and reputational risks with an appropriate risk statement for each identified risk
5. Conduct a risk analysis and risk evaluation for the risks you have identified
6. Identify treatments for them
7. How you will monitor and review them in your risk management plan.
When you are defining the risk criteria you intend to use you are required to create your own risk matrix to
address likelihood and consequence.
Document your risk treatment plan using a risk register.
You may make any assumptions in producing your plan but these should be documented either in the body
of your plan or separately before you produce it.
(1,000 words)
Student response to Task 6
Risk identification and the application of risk management process
The system of risk administration and recognizable proof must he executed by the contribution of the
foundation identifying with the diverse setting of risk administration design of the “CCF and MB”. The
general reason for the risk administration technique is to speak to the utilization of various risk organization
devices. What's more, the strategy for risk administration is locked in with the acknowledgment of the
partners which can on occasion be helpful. With the end goal of the utilization of the distinctive devices for
the acknowledgment of the CCF MB's dangers it is fundamental for the recognizable proof of the risk
administration process.
Building up the setting of the hazard administration anticipate CCF& MB
In setting of danger of the risk administration system for the CCF and MB can be characterized in light of
the various kind of inward and outer setting. The external contains the administrative and monetary
aspects. The external contexts of CCF& MB can think about the diverse kinds of national and the worldwide
and other restricted components of the business. The external context of the risk administration technique
involves the various kinds of relationship for the point of view of the estimations of the outside and
partners. The interior constituents of the risk administration method that is alluded to the approaches and
the controls for the movement rules with the models that are required to be connected in the organization.
Rationale for using the tools that can be used for the assessment of the risks
The diverse sorts of devices that are utilized for the evaluation of the task chance contingent on the
quantitative and subjective angles. Subjective devices take into the thought the various sorts of risk
Page 42 of 79

likelihood and the order of risk alongside the likelihood of the effect lattice together with the judgment
expressed by the specialists. Moreover, the quantitative tolls are based on the tornado charts affectability
investigation and Monte Carlo Analysis.
Stakeholders Identification for establishment of the context
The distinctive sorts of partners that is included with the end goal of the risk foundation involves the board
of trustees of risk administration and the hazard coordination's as one with the individual from the staff.
Identification of the risks of CCF&MB and the tools, which can be applied for the same
CCF and MB can use the hazard enlist so it can perceive the likely issues that is looked by the organization.
The organization is required to actualize the idea of the effect network with a specific end goal to learn the
likelihood of the hazard. The organization can influence the utilization of the hazard acknowledgment to
device for the acknowledgment of risk.
Identifying the risk constraints
Strategic Risk
The administration of the organization significantly worked in the matter of financier with the goal of
extending the business especially in the regions of land. The fundamental technique is including in some
other types of business. The buy of two condos by the organization is additionally perceived as another
type of hazard.
Compliance Risks
The organizations chance is connected with the consistence and directions as characterized by the
administration bodies. The administration bodies involve the Australian Consumer Law and Australian Law.
Financial Risks
The distinctive types of financial risk that is looked by the organization are in the regions of the
development of the business in the genuine, bequest zones. The risk is recognized for the group alongside
the two part staff. The organization has attempted various measures to decrease chance for extending its
land segment. The new thoughts for development can be considered as unsafe choice for the organization.
Operational Risk
The operational risks are seen from the deficiencies and the disappointment of the procedures in the
arrangement of the organization. The organizations distinguish the hazard from the normal business
exercises that is completed by them. The likelihood of the key union adds to the operational danger of the
organization with the land operators.
Environmental risks and market risk:
There are various kind of hazard that is distinguished in the market is the expansion in the estimation of the
speculation identifying with various procedures and the activities that is completed by the business.
Reputational risk
The reputational risk is connected with the loss of the generosity. At that point the organization is seen to
work in the money related segment. Also, the organization is recognized to go about as the credit
illustrative of the Australian aggregators without the ownership of substantial credit permit. Consequently
the reputational danger of the organization is as loss of generosity of organization.
Risk evaluation and the identification of the several, type of the risk constraints
The procedure of risk remuneration is performed based on quantitative and the subjective hazard, factors.
Page 43 of 79

Ranking the Risks
The risk administration of technique of CCF& MB can be actualized for positioning the risk and perceiving
and foreseeing the probability of the event of the occasions and the estimation of various results that is
connected with the loss of generosity.
Identification of the procedure for risk treatment
The treatment of the risk appraisal and assessment is connected with the risk distinguishing proof and the
assessment of the setting of the risk and treatment for the same. The arrangement for the treatment of the
risk is connected with the audit, recognizable proof process and relief.
The four T's that is made for treatment that incorporates
Tolerate:” Risk toleration event at the time of carrying out the business activities”
Treatment: “Treatment of the risk for undertaking the corrective measures”
Transfer: “Transfer of the procedure for mitigation of risk”
Terminate: “Comprised with the permanent termination of the risk”.
Review of risk and monitoring plan
Effects
Likelihood
of
occurrence Rating
Current Target
Present
Level Target
Level of
Risk
Parameters of Risk
Environmental risks and market
risk
Disastrous Minor Unlikely Rare Severe
Page 44 of 79

Strategic risks Disastrous Minor Rare Rare High
Compliance risks
Major Minor Possible Unlikely
Moderat
e
Finance risks Moderate Minor Certain Unlikely High
Operations risks Major Minor Possible Unlikely High
Reputation risk Low Minor Possible Unlikely Low
Assessor feedback: Resubmission required?
No
Page 45 of 79

Task 7— Improving the business
Over the last few months business for CCF & MB has been very good with a number of new clients coming
on board as a result of implementing your business growth and marketing plans. However neither you or
the business owners are satisfied with maintaining the status quo; as you and they are committed to a
program of continuous improvement.
You all feel that CCF & MB’s competitive advantage needs to be strengthened and a SWOT should be
undertaken to establish CCF & MB’s strengths and weaknesses including benchmarking the business against
the industry. You now decide that you will carry out a diagnosis of the business including a SWOT analysis
and a benchmarking exercise to improve CCF &MB’s competitive advantage and its business. You are to
produce a document covering your diagnosis which will be distributed amongst CCF & MB’s key personnel.
As a minimum your document should cover the following:
1. The data you have used as part of your diagnosis to identify CCF & MB’s competitive advantage
2. A SWOT analysis to identify CCF & MB’s strengths and weaknesses, its threats and opportunities
3. How you identified and sourced relevant benchmarking data
4. How you selected the key indicators (and who you consulted with) for your benchmarking exercise
5. A consolidated list of the areas for improvement you have identified with a cost-benefit ratio
established for each of them
6. Recommendations on the changes that may be required that will affect existing workflows or CCF &
MB’s organisational structure
7. A high-level action plan that will implement and monitor the recommended changes to be made.
(1,000 words)
In addition to the material on your Subject 2 learning guides the following links give you access to a step-by-
step guide to benchmarking and determining competitive advantage:
• <http://www.business.vic.gov.au/marketing-sales-and-online/increasing-sales-through-marketing/
benchmark-your-business>
Student response to Task 7
1) Data used for diagnosis of competitive advantage of CCF& MB:
A lot of studies are carried out on the basis of secondary data as this process of data analysis reduces cost
and time to a substantial extent. The similar is done in case of study of the competitive advantages of
“CCF&MB” as the practice of secondary data poses as one of the ground-breaking strategy for research for
the study of the business prospects. The company incorporates various types of financial data (asset-
based), taking into accounts the patents, global network of distributions and customer equity.
The company is also seen to use various types of primary data, which they gather normally, with the help of
questionnaires, which are formed by them. With the help of this, it is observed that there are some types of
cost benefits in providing financial goods along with the different types of other challenging products. They
are also observed to incorporate types of cost benefit causing methods and deliver assistances of financial
nature, related to the different types of rival products, which exist in the market. The company also targets
to provide provision for superior services and values to the valued and deserving clients, thereby gaining
adequate clients loyalty and earning more profits in the long run. The resource built view, known for using
and analysing resources and related abilities, is needed for making comparative advantages for the
company, which in turn will help in forming future affluence for the enterprise.
2) SWOT Analysis of CCF& MB:
The condition and the future scenarios of the concerned organization can be clearly understood with the
help of a SWOT Analysis of the concerned enterprise, which is as follows:
Strengths Weaknesses
Page 46 of 79

 Location advantage as the business is
located at primary economic zones
 Considerable hold and presence in the
international market
 Strong and dependable base of assets for
the company
 Absence of transparency in the market on
part of CCF& MB
 The company does not comply with the
various yardsticks and standards present in
the international market
Opportunities Threats
 There are future perspectives of growth of
the company, geographically, in future
with the progress of the company
 Potential of venturing in the real estate
market in future
 Prospects in terms of sales of high-end
luxury apartments
 The real estate market faces vast dynamics
and variations in price levels, which may
be adversely affecting the enterprise
 The changing rate of interests also posits
threat to the CCF& MB
 The company has issues with delay and
crossing of deadlines of their projects,
thereby decreasing their customer
satisfaction and losing of confidence of
their customers, which may have negative
impact for the company
3) Relevant benchmarking data:
This company gather the data of the world for the evaluation of the IPD indices. The company collects a
main share of the data from the understanding of the correct definitions only. The data set collected,
consists of many features including asset-specific market for capitals and the cash flow dynamics and the
calculation of rent from the cash flows. The estimates of capital rent of the company and the drift of
funding from the management of the concerned company are also included. The company has several cost
effective procedures of distribution of their designed questionnaires (the techniques being solely specific to
the company), which give them the comparative advantage for analysing collected primary data.
4) Key factors and their selection:
The company, “CCF& MB”, applies the global brand managing procedures to facilitate reliable and standard
growth of the same in the real estate market in a global scenario. The presence of the key factors, which
helps in asset building and resource distribution for the job, increments the potential of the concerned
company.
Page 47 of 79

5) Cost Benefit Analysis and the sectors where there are scopes of improvement in future:
For any organization, cost benefit analysis is of most importance, as it assists the company to decide on its
sequence of action to increase profit. Therefore, “CCF& MB” also requires conducting the same analysis to
get a picture of its future profitability and buying power for rental assets. To stay ahead of the competitors
in the global market, the company requires keeping on transforming its pricing policies. As suggested at
present, the company requires changing the organizational structure at present and the current workforce
structure of the organization. The company requires redesigning its strategic framework and implementing
pro-productive and ground-breaking strategies to full-fill the future objectives of the company, both in
short term as well as in long term. The amalgamation of more transparency on part of the company, with
respect to interactions and communications with its workers and proper addressing to their queries and
problems as well as the client complaints can be helpful for the company in long term.
6) High-level plan of action for the company:
As per the above discussion and concepts of markets, a high-level plan of action can be framed for the
company, which is as follows:
Action Time Description of the activity
Data capturing Two months The company uses most of the
resources required to invest in the
various sources of the assets in the
market.
Assessment level measurement One to two months The company, known for proper
data collection and their
validationand assembly, post data
collection, can aim to use their
advantages to enable the optimal
utilization of their assets and use
the applied rules set for analysing
their analysis.
Post measurement report of the
Portfolio
Two months Assembly of recordings of the full
collection of investment for working
estates and comparing as and when
needed.
Rigorous analysis and follow up on
data on a regular basis
Regular intervals of two months The company records various types
of information, which are needed
for data analysis and preparation.
This in turn preserves the services
and financial data bases. Different
policies and methods are needed to
achieve the use and analysis of the
collected data.
Page 48 of 79

Assessor feedback: Resubmission required?
No
Page 49 of 79

Task 8 —Managing people performance
One of your key responsibilities as general manager is to develop and implement ways to improve the
performance of CCF & MB’s consultants and other staff members.
Answer the following questions:
1. Why is it important to consult with stakeholders when allocating work? What are the possible
consequences of allocating work without consultation?
2. Describe the process you might follow when developing quantitative and qualitative performance
criteria. You should explain how you ensure that the criteria relate to CCF & MB’s objectives and how to
motivate staff members to achieve these objectives.
3. Describe the different ways you might gather information about a staff member’s workplace
performance.
4. What are the benefits of evaluating and monitoring staff members on a continuous basis?
5. Describe how you might do this in CCF & MB.
6. Why is it important to document the performance management process? Explain the possible
consequences of not retaining appropriate records of this process.
7. How can reward and recognition influence the work output of employees? Describe non-financial ways
of motivating employees.
Your answers should be 250 words for each numbered question above.
8. Design a high-level performance management process for CCF & MB to be rolled out to all staff
members.
9. Who should you consult when designing the performance management process? List who you would
consult and the reasons why.
10. Develop a checklist for delivering regular performance appraisals, including a section for team
leaders and supervisors to completea section for team members participating in the performance
appraisal process.
(800 words)
Martin and Luis are working together on project involving the preparation for a loan application for one of
CCF & MB’s most influential clients, a property developer. Martin missed a deadline and the whole project
is now behind schedule by a week. This is the third time in a month that he has missed a deadline.
Martin has had problems with meeting deadlines in the past and has already had a written warning.
As the general manager you have been monitoring Martin’s performance over the past month,
providing informal feedback about his role in the project. Although he has made several improvements
regarding his performance, his inability to meet deadlines has forced the delay of the client’s development
a further month. CCF & MB made a commitment to the client that the loan application would be with
prospective lender two weeks ago.
The client is not happy that his he does not yet have an approval and is considering cancelling the
agreement he has with CCF & MB and going elsewhere.
11. You have arranged to meet with Martin to talk about the project and his input. How would you go
about providing constructive feedback to Martin?
(500 words)
Page 50 of 79

Student response to Task 8
Answer 1:
Among the diverse methodologies valuable for a business association, one of the essential one is the
conference with the current partners of the organization. This is of more significance particularly when the
organization is preparing for allotment of the works in light of the fact that the partners, being an essential
piece of the organization, ought to be a piece of the basic leadership process as they are additionally
influenced altogether by these choices and its suggestions. This can thusly help in better execution of
techniques and guarantee future improvement of the organization. On section of the organization, the
partners can consider it to be a warm signal as they would feel significant for the organization and would
attempt to recommend planned proposition that can really be useful if fused by the undertaking. In some
cases, the points of view of the partners may contrast fundamentally from those of the administration as
being on various sides; they may have irreconcilable situation. Notwithstanding, these contentions are
should have been advanced with the end goal that the interests of both the sides can be heard and through
appropriate transactions, an answer of shared understanding can be gotten. A healthy structure of business
techniques, which fuses the interests of both the gatherings on the request and the supply sides and works
towards the boost of the welfare of both the gatherings, can turn out to be helpful for the organization, to
colossal degree over the long haul. Forgetting the partners, from basic leadership process can make them
cynic and learn about left which can have negative ramifications on the organization.
Answer 2:
Creating execution criteria, both quantitative and subjective joins a few critical advances, each having
significant ramifications on the criteria making. Initially of these means is the distinguishing proof of the
normal execution comes about. This is of huge noteworthiness as it helps in understanding the future
targets and objectives of the concerned undertaking. Without foreseeing the achievement rate is hard to
set objectives for future. In the second stage, of building the execution criteria for the organization, it is
required to set diverse focuses to be accomplished in various perspectives by the organization. Particular
target settling, including development to be accomplished in numbers can make the destinations clear for
the concerned organization. to settle the criteria, aside from defining up objectives it is required to ponder
the past development measurements of the organization. to guarantee strong execution of the endeavour,
both the subjective and in addition the quantitative pointers, once set, ought to be checked all the time.
Both of these methodologies ought to be legitimately adjusted with the end goal that the hierarchical
targets are accomplished productively. Standard development and associations of the diverse gatherings
engaged with the procedure can demonstrate to have positive ramifications on the organization. A
comprehensive approach on part of the organization, where every one of the members and their
perspectives are given significance, fills in as an inspiration to improve the situation in future, on parts of
the organization and the labourers and partners included.
Answer 3:
The execution of any organization depends significantly on the individual execution of the workers of the
concerned endeavour. Accordingly, for an organization, it is vital to screen the execution of every one of its
specialists all the time. This should be possible by gathering data about their working environment
execution in different ways. Above all else of these ways is the strategy for perception, which is an
exceptionally viable path as no inquiries are should have been asked to the labourers or some other
individual and can track surprising or strange patterns effortlessly, without having the issue of individual
inclination. The way toward meeting and scrutinizing the specialists is another technique for social occasion
data. Surveys can be shaped or coordinate open or close-finished inquiries can be asked to the labourers as
associations and discourses to get the essential data. Focused group exchanges, individual meetings and
top to bottom communications can be utilized for subjective information and numeric polls can be made
for quantitative investigation. Utilizing tests with scoring system can be another type of gathering
important information by quantitative means, which can demonstrate the skill of the distinctive specialists.
Aside from information and skill scores, there can be other criteria to quantify execution and reliability of
the specialists like their every day participation, working hours, dealing with work-burdens and others,
which may demonstrate the general execution levels of every one of the representatives in an
Page 51 of 79

individualistic level.
Answer 4:
The execution of any organization depends very on the individual execution levels and commitment of the
workers of the organization, as has been talked about in the past segment. In this way, gathering learning
of the individual execution of the workers of the organization and checking their exhibitions consistently
and in a constant way may turn out to be useful for the organization over the long haul and may keep any
enormous and unpalatable to happen in the organization. Albeit an excessive amount of strict
reconnaissance and regulating methodology can de-spur the workers, a lot of checking is expected to
monitor their execution and keep up consistency over the long haul. There are numerous roads of
miscommunication and event of numerous slip-ups in the generation procedure of any organization, which
however appear to be unimportant at singular levels, may in total be a reason for extensive misfortune for
the organization. An appropriate arrangement of observing and battling these mistakes, for the most part
accidental ones, can be a savvy system on part of the organization. Be that as it may, while outlining the
checking structure of any business organization, it ought to be remembered by the concerned
administration that representatives work better when inspired and making a frightful and strained state for
the representatives may really hamper the generation procedure by wrecking the beneficial condition. In
this way, through checking, aside from perceiving the slip-ups and correcting them, it is likewise imperative
to empower and value the endeavours given by the true representatives and the organization ought to give
consolations to the extraordinary workers, which can propel them further to take an interest in the
observing procedure.
Answer 5:
Like some other business association, as talked about over, the observing and assessment process is
likewise anticipated that would be useful for the concerned organization, CCF& MB and ought to be
actualized by the organization keeping in mind the end goal to improve the execution of the organization,
which can have extensive positive ramifications on the future prospects and development and additionally
notoriety of the organization. In the concerned organization, the administration can do this by presenting a
system of checking and assessment of the considerable number of workers at standard interims. Singular
connection with every one of the workers and checking their exhibitions and execution development flow
after some time can be useful in imagining about their general execution levels in the organization. To
upgrade the execution of the representatives it is of much significance to address their quarries and
grievances and tune in to the issues they have been looking in their work environment. This should be
possible by holding meetings with the workers where they have arrangements of straightforwardly moving
toward the administration with their issues. A standout amongst the best methods for assessing the
general execution of any worker of any organization is to direct a 360-degree sort of assessment for that
representative. By this it suggested that the representative is assessed by various concerned people
engaged with the organization, including his companions, bosses and in addition sub-ordinates of that
worker. This, if done accurately and in a fair-minded way, can be viable for the organization.
Answer 6:
For any association, the documentation procedure holds enormous importance, in the everyday generation
activities of the venture as this over the long period turns out to be viable in making a general image of the
long term development of the organization, its restrictions and how the organization is getting along in the
market. The documentation procedure, by demonstrating the flow and the advance of the organization,
encourages the undertaking to choose its future game-plan, which will be productive for the organization in
long haul. The documentation, if done right, can likewise demonstrate the shortcoming that the
organization is at present confronting, the regions where the venture needs to concentrate more to
preclude the constraints, and obstacles in the generation procedure that the organization is as of now
confronting. Requesting conclusions from people, however is one of the basic moves made on part of the
organization, can at present have some inclination as each person, associated with the creation procedure,
both from the request side and additionally the supply side, will have their own particular personal stake
and will give sentiments important to their goals and individual interests. Documentation anyway can end
up being an impartial elective way out for estimating the execution of the organization and breaking down
Page 52 of 79

the qualities and the shortcomings of the organization. Documentation of the execution progression of the
representatives can be an exceptionally effective approach to screen the execution of the specialists and
can assist the organization with taking fundamental amendments and generation increasing advances in
light of the exhibitions of its workers.
Answer 7:
A standout amongst the most effective approaches to spur the representatives of any business association
and increment their efficiency and in addition commitment towards the organization is the technique to
give prizes and acknowledgments to the workers. For this, a legitimate and appealing structure must be set
up by the concerned organization, which is proficient in perceiving the extraordinary works of the
representatives and configuration fitting prizes and impetuses for the individuals who deliver useful for the
organization. This strategy has increased expanding prevalence throughout the years and has turned out to
be effective for the representatives and their welfare, as well as ended up being to be advantageous for the
altruism and the profitability of the organization over the long haul.
Essential features regarding employee recognitions and rewards are explained below:
 Reward and worker acknowledgments help in making a general profitable and solid workplace with
profoundly energetic and committed representatives, who make the most of their individual works.
 Rewards may not basically be money related or in financial terms. Numerous a times fiscal
impetuses are given to the representatives which supports up their profitability. Notwithstanding,
there might be diverse non-fiscal types of prizes and acknowledgments which can likewise be
similarly viable in this reason.
Non-Financial methods for Motivation:
 Simple signals like a composed thankfulness letter and valuation for the representatives in an
exceptionally masterminded gathering, particularly intended for that reason may help up the
certainty and commitments of the representatives and they may work harder just to get that.
 Introducing work parts pivots may likewise help as the representatives, focusing on a specific
employment part in the organization, may buckle down and do the needful to reach to that level, in
this way expanding the efficiency of the organization all in all.
 With higher exhibitions, if the representatives are urged to take up greater duties, at that point the
representatives may feel spurred and esteemed and work harder.
 A comprehensive approach where, a few choices are left on the representatives may influence
them to feel capable and vital. This may really turn out to be useful, as they would take proficient
choices at the individual levels, which in total may assist the organization with achieving greater
gainfulness in the long haul.
Question 8
The high level execution of the CCF and MB has been recorded as:
Page 53 of 79

1.Prerequisites
The management of performance process has been taken into considraripn in light of the different kinds of
administration process. This has been additionally observed to be required in light of the sufficient
information of the mission and the vital objectives of MB and CCF. The fundamental contribution of the
distinctive kinds of the means should be taken in light of the accompanying variables:
Strategic Planning
This segment needs to address the different sorts of the thought which has been believed to be related to
the unmistakable thought with respect to the reason or explanations behind presence of CCF& MB. Also, it
has been additionally observed that the future objectives of the association should be thought about
according to the objectives and systems set sooner rather than later.
During the time spent execution administration, the different kinds the staff individuals from CCF& MB
need the particular learning of the acceptance instructional meetings. A portion of this incorporates:
Job assessment of the significant elements
Activities: It is critical to break down the different kinds of the predominant exercises which are believed to
be identified with the thought of the home loan exercises, for example, CCF& MB and arranging of the
same with potential customers.
Tasks: The different sorts of the undertakings which should be done according to the CCF and MB should be
identified with the different kinds of the claim to fame in the business and home credits and the distinctive
sorts of the business loaning.
Products: The products offered by CCF& MB are:
Page 54 of 79

 Business Lending
 Motor Vehicle Finance
 Commercial Lending
 Insurance(Life and General)
 Home Loans
Services: CCF and MB needs to concentrate around the critical thought of the money related
administrations which has been believed to be given to the customer. A portion of the different kinds the
other thought has been additionally observed to be contemplated according to:
 Australian Aggregators
 ABC General Insurance
 XYZ Life
Procedures: CCF& MB apparently is related to serving the necessities of the potential customers which
supposedly follows the Performance Management Process in the most suitable way that could be available.
Use of job analysis with the variety of tools
Interviews: The research process has been founded on the utilization of the different sorts of the exercises
identified with the utilization of the data according to the predefined set of data.
Observation: This is distinguished as one research strategy in which the analysts can see on the exercises of
the people in making of the last judgment.
Questionnaires are considered according to the optional sources-This thought has been mulled over
according to uncovering of the circulation of the inquiries set for picking up of pertinent comprehension on
the observation according to the people.
2.Performance Planning
The following methodology of the execution has been founded on the estimation of the procedure and
arranging which supposedly is vital in achieving the outcomes done in an opportune way.
Key Accountabilities
Specific Objectives: The particular significance of CCF& MB has been believed to agree to the SMART goals.
This has been believed to be helpful in tending to the future destinations and objectives.
Performance Standards
Quality: CCF& MB has been believed to be primarily concentrating on the imperative parts of conveying
high calibre of administration standard according to the potential customers and holding of the same in
worldwide commercial centre.
Quantity: This has been related to conveying the fitting amount at whatever point conceivable.
Cost-The cost of CCF& MB has been believed to rely upon the different kinds of the services desired by the
potential customers.
Time: CCF& MB has possessed the capacity to keep up an expedient expert exhortation to their potential
clients.
Practices: The staffs have been perceived to be amiable quiet to serve the best according to the best
enthusiasm of the customers.
Competencies: The organization has been believed to be equipped regarding the correlation of the
different kinds of the financial services.
3.Performance Execution
Page 55 of 79

The third procedure includes:
Employee Responsibilities: The organization has been believed to take the most extreme thought in serving
the customers on time.
Manager Responsibilities: The organization has been seen to overseeing workers according to collaboration
4.Performance Assessment
This has been seen with the execution of the estimation design, which should be assed according to:
Manager Assessment: The management of “CCF& MB” manager has possessed the capacity to get
associated with the different kinds of the procedure which has been believed to be identified with the
duties
Self-Assessment: The organization has been seen with the people association of occupation enrolment.
5.Performance Review
Overview of Appraisal Meetings: This has been believed to be essential in understanding the reality in
assessing the persevering representatives. The gatherings need to settle on the capacity of organization to
serve.
Question 9
Consultation of persons at the time of designing performance management process
The persons who have been consulted are given as follows:
 Owner of CCF& MB
 Management
 Employees
The people and the said partners of CCF& MB and inclusion of the procedure have been considered
according to usage of Performance Management System. On the off chance that the partners decline the
outlining of the execution design the diverse snags should be looked with the last usage and the use of
execution administration process. The partners at CCF& MB, Needs to be consistently be educated of the
new changes.
Question 10
Performance Appraisal Checklist
Page 56 of 79

Page 57 of 79

Page 58 of 79

Page 59 of 79

Page 60 of 79

Page 61 of 79

Page 62 of 79

Page 63 of 79

Page 64 of 79

Page 65 of 79

Page 66 of 79

Page 67 of 79

Page 68 of 79

Page 69 of 79

Page 70 of 79

Page 71 of 79

Page 72 of 79

Page 73 of 79

Page 74 of 79

Question 11
Productive feedback that would be given to Martin are:
 At the time of providing the feedback to Martin, I would search for the accompanying traits that
have been recorded underneath:
 I would give out the input by remembering regarding the considered points of the likely customer
named Martin.
 I would dependably discuss with my colleagues for gaining an understanding about their
perspective also and along these lines allowing time with the end goal of discussion.
 I will give the colleagues the opportunity for an open clarification and discourse for clarifying the
bits of knowledge relying upon the execution with the end goal of future evaluation.
Assessor feedback: Resubmission required?
No
Page 75 of 79

Task 9 — Showing leadership in the workplace
Leadership is defined as the ability to influence others. This assessment task requires you to reflect on your
own ability to positively influence others in the workplace and the negative aspects of poor leadership.
1. Reflect on a situation where you have had a positive impact in the workplace. Please include in the
reflective writing the skills, decisions and or behaviours you demonstrated that contributed to this
positive change and what the impact was for the team, clients and the organisation. (400 words)
2. Reflect on a situation which was or could have been damaging to the organisation. Please include the
behaviours, standards or values that were demonstrated and explain why they were detrimental.
(400 words)
3. In your role as the general manager of CCF & MB create your own personal performance plan.
You may use your own personal performance plan or alternatively you can use the example below.
In developing your personal performance plan you should ensure that your personal KPIs reflect CCF &
MB’s goals and objectives and how you can help in building CCF & MB’s integrity and credibility.
What are my
development
objectives?
Priority What activities do I need to
undertake to achieve my
objectives?
What support/resources
do I need to achieve my
objectives
Target date for
achieving my
objectives
Actual date of
achieving my
objectives
Review date:
4. Feedback from colleagues, staff and management may be gathered informally and formally including
performance review feedback. Why is it important to analyse and interpret all feedback? (400 words)
Student response to Task 9
Question 1
I have worked in consultation firm amid recession period and lay off happened on week after week premise
during the working period. Obligations and duties that has been let go off has been consumed by
colleagues. I have possessed the capacity to find out in the present situation that there is likelihood of
being laid off and colleagues has been confronting it in current framework. Working with my colleagues
portrayed the way that confidence of such work was much low while working around clock. It was likewise
found while working with colleagues that these were basic issues and colleagues were working extra
minutes and for extra working hours and they were wearing caps. I was given the duty of assessing such
issues being a group pioneer of the specific division inside association. I was solicited by administration to
modify resolve from representatives amid this troublesome business period and empowering best
execution of workers working in that. In this way, to discuss the techniques that would inspire workers and
help in confronting the continuous authoritative difficulties, I have thought of masterminding a meeting
with the entire group whom I have been given the duty. In meeting, I have given a few occasions where
representatives have been acknowledged in the hard time when they have very much performed
notwithstanding negative business conditions. In any case, push managed by a few workers has not been
withstood. While talking about the continuous issues, I have clarified to colleagues that I am not prepared
with answers to all inquiries looked by me. I have additionally approached the colleagues for some
productivity method for attaching the surprising workload that has stirred because of retreat. A procedure
of conceptualizing with the group was embraced by for completing undertakings in legitimate and
consecutive way. Appropriation of this procedure has helped in social affair thoughts on difficulties and
issues looked by colleagues in doing their operational assignment and business exercises. I have
Page 76 of 79

acknowledged, considered and regarded the recommendations gave by group amid the way toward
conceptualizing that was in light of a legitimate concern for group and their welfare. In this way, to gather
thoughts in the conceptualizing procedure, little research has been led and a few hours have been spent on
exchange. Extent of effectively actualizing the thoughts that have been produced has been done effectively
with the assistance of this procedure. Feedback of the suggestions and thoughts attained from liberality in
conceptualizing process has helped in engaging the colleagues and in this way the employees of the
company as well. It has additionally helped then in defeating the difficulties looked in completing the
working procedure.
Question 2
From my past work understanding, I might want to portray an episode that connections with show think
about. I was working for a nearby bookkeeping firm beforehand; there I found that the organization was
confronting gigantic misfortune in the business. To that, endeavours had been taken by the director of
those local accounting companies to take care of the issue with the goal that they can accomplish benefits
soon. I found that there was absence of correspondence among the chiefs and they had misty desires on
what should be improved the situation illuminating the misfortunes that wins in nearby bookkeeping firm.
The management of these domestic accounting companies neglected to disclose the part to the
representatives and that offer ascent to baffled workers who had no clue on what to perform or how to
function in the firm. It is hence why nearby bookkeeping firm brought about misfortune. The chiefs of this
nearby bookkeeping firm neglected to educate their workers on when the undertaking is expected and
after that put weight on them to finish the assignment inside the due date. The points of interest of the
tasks are ambiguous where representatives confronted trouble to complete their work in legitimate ways.
The administrators did not clarify their representatives on issues identifying with who is in charge of playing
out certain occupation of the particular undertaking. The director needs relational aptitudes, relationship
building abilities and group administration aptitudes as he was not ready to deal with their representatives
as and when required. While working, I have seen that our director used to just feature the negative
purposes of the representatives to higher expert or manager of the domestic accounting company. This
proceeded for a long time lastly the manager was terminated from that accounting company. It was a result
of awful administration abilities of the manager that contrarily hampers the business and the accounting
company acquired tremendous misfortune for that specific period. At that point after, the organization
employed new manager with the goal that past issues can be tackled and convey changes to the general
improvement and development of the local accounting company. I was not glad to work for that accounting
company due to the supervisor neglected to clarify the activity part and obligations. I was not happy to
work for that firm and chose to leave the firm and joined other organization following 2 months. I am
presently glad to work for an organization that manufactures garments items and I was named in the
Accounts Department. I am as of now glad to work for the association and will endeavour to end up
genuine resources for the organization soon.
Question No 3
What are my
development
objectives?
Priority What activities do I
need to undertake to
achieve my objectives?
What
support/resources
do I need to achieve
my objectives
Target date
for achieving
my objectives
Actual date of
achieving my
objectives
Assessing the
loan
applications
within twenty
four hours of
their receiving
Assessi
ng at
least 10
orders
per day
Completing all the
order associated
obligations effectively
and carefully.
Incorporation of the
technological
proceed that would
assist in attaining the
objectives.
25th June 5th June
Assisting quick
access to
customers
Evaluati
ng
orders
Using people with the
system so that they are
able to effectively do
Customers would be
provided with quick
entry as it will assist
26th June 1st July
Page 77 of 79

of
custom
ers
their duties in providing the
services on faster
note
Helping
managers and
employees with
working process
Precise
and
effectiv
e
process
ing of
loans
amount
Using the mangers in
operations and tasks
that are completed in
an effective manner
Managers are asked to
perform their duties as
per the standard model
incorporated by the
organization. It should
function within the
explained structure
that is provided in the
model.
Making use of the
developed system
that will assist in
monitoring their
performance
28th June 5th July
Review date:3rd August
Question 4
Feedback is essential, be it formal or casual, as it is one of the successful device that assists during the time
of undertaking significant choices. Feedback considers the two qualities and shortcoming of business
undertaking where the shortcoming of the business can be changed into circumstances and qualities
sooner rather than later. Feedback is one of the devices that assistance in gathering valuable or supportive
data or feedback on issues relating the past activities or conduct from an individual and conveyed to
different gatherings who can appropriately utilize data for either changing or enhancing in the present and
in addition future activities and practices. Criticism is a vital tool that is modest and intense approach to
find a solution from the representatives on whether they are glad to work for the organization or
confronting any sort of issues. These answers must be produced by taking input session from any workers
regardless of division and position. Feedback can be taken from providers, representatives, partners,
customers and sellers where these individuals feel esteemed and they stay inspired as it improves better
working relationship in the most proper way. Criticism ought to be taken at standard interims as help in
understanding a few factors on whether representatives are fulfilled while working for particular business
association. Feedback is straightforwardly connected with representative fulfilment and additionally
profitability. By asking criticism, it really goes about as a way where it spurs representatives to perform
better in company and a group. To that, representatives working in an organization feel esteemed and in
addition acknowledge when they are requested to give feedback as it effectively helps in figuring business
choices. Criticism helps in getting change the level of execution as positive input help at the season of
figuring better choices for enhancing and expanding the execution level. Criticism is one of the instruments
that are utilized for development learning. It is therefore explained that criticism is basic requirement over
general business operations keeping in mind the end goal to stay lined up with objectives, making of pre-
decided systems, creating in the item and administration changes and additionally enhancing connections
in introduce business venture. Feedback happens when a situation or surroundings responds to certain
activity or conduct. For example, client input is taken and it is the response of purchasers identifying with
organization's items, administrations or some other strategies. Then again, representative execution
criticism is taken that is the response of workers with respect to managers.
Assessor feedback: Resubmission required?
No
Page 78 of 79

Page 79 of 79