Developing a Business Case for Project Management | Desklib

This assessment tool is for BSB61215 Advanced Diploma of Project Management unit PSPMGT006 Develop a Business Case. It includes a case study about Tasty Products and activities to demonstrate understanding of developing business cases.

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
ASSESSMENT INSTRUCTIONS
Overview
Prior to commencing the assessments your assessor will explain each task and the terms and submission of
your task. Please consult your assessor if you are unsure of any questions. It is important that you understand
adhere to the terms and conditions and addresses each task. If any task I not fully address than your
assessment task will not be marked. The assessor will support you throughout this process.
Written work
The assessment tasks are used to measure your understanding and underpinning skills and knowledge of this
unit of competency. When answering please ensure you address each criteria and sub point, demonstrate your
research of each of the questions and cover the topic in a logical and structured manner.
Active participation
It is a condition of enrolment that you actively participate in your studies. Active participation is completing all
tasks on time. If you do not participate you will be required to report to Student Services Coordinator.
Plagiarism
Plagiarism is taking and using someone else's thoughts, writings or inventions and representing them as your
own. Plagiarism is a serious act and may result in a student’s exclusion from a course. When you have any
doubts about including the work of other authors in your assessment, please consult your trainer/assessor. The
following list outlines some of the activities for which a student can be accused of plagiarism:
 Presenting any work by another individual as one's own unintentionally
 Handing in assessments markedly similar to or copied from another student
 Presenting the work of another individual or group as their own work
 Handing in assessments without the adequate acknowledgement of sources used, including assessments
taken totally or in part from the Internet
If it is identified that you have plagiarised within your assessment task, then we will organise a meeting to
discuss this with you.
Copyright
You must be careful when copying the work of others. The owner of the material may take legal action against
you if the owner's copyright has been infringed. You are allowed to do a certain amount of copying for research
or study purposes. Generally, 10% or one chapter of a book is acceptable, where the participant is studying
with, or employed by, an educational institution.
Competency Outcomes
Each activity in this assessment tasks will be marked as either Satisfactory or Not Satisfactory.
If your work is marked as Not Satisfactory you will be provided with feedback from your assessor and then
given time to complete the task. Your assessor will provide you with a timeline in which you will be required to
submit your task. Resubmission timeline will be determined by the assessor and based on the extent of the re-
submission.
When you have completed all tasks in this document you will be granted an overall competency outcome,
which will be either Competent or Not Yet Competent.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
If your work is marked as Not Yet Competent you will be asked to resubmit the assessment tasks as indicated
by your assessor. You will not be able to gain competency if any of your tasks are not fully completed.
Assessment Appeals Process
If you are dissatisfied with the outcome of one of the assessment tasks or the final outcome of the assessment
task because you feel that the result is unfair or incorrect, you may request to have the task/s or overall
assessment task reviewed. If you are still dissatisfied with the outcome, you may lodge a formal assessment
appeal. Refer to SBTA’s Complaints/Appeals Policy and Procedure.
Application of the unit
This unit describes the skills required to perform market analysis, development and cost options, and justify for
a recommended business solution. This unit applies to those developing appropriate and cost-effective
business solutions. The skills and knowledge described in this unit must be applied within the legislative,
regulatory and policy environment in which they are carried out. Organisational policies and procedures must
be consulted and adhered to. Those undertaking this unit would work autonomously, performing complex tasks
in a range of familiar contexts.
Assessment matrix
The tables below demonstrate how all assessment tasks in this assessment pack contribute to the outcomes of
your learning and assessment activities.
ELEMENTS BSBWOR502 PERFORMANCE CRITERIA ASSESSMENT
TASKS
1. Research a business case 1.1-1.4 Task 1, 2, 3
2. Examine business solutions 2.1-2.3 Task 1, 2, 3
3. Construct a business case 3.1-3.2 Task 1, 2, 3
4. Finalise a business case 4.1-4.2
Performance
Evidence
 managing resources
 using language and style suited to written submissions
 explaining complex ideas to different audiences
 interpreting and explaining complex, formal documents
 preparing written advice and reports requiring reasoning and precision
of expression
 engaging in discussion using exchange of complex oral information
Task 2, 3
Knowledge
Evidence
 government and organisational goals, policies and practices
 legal requirements related to the business activity
 financial and accounting issues relating to developing a business case
Task 1, 2, 3
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
 whole-of-life considerations
 approval processes
 aspects of trade practices law, commercial law and law of contract
relating to the development of business cases
 jurisdictional legislation that applies to business case development,
including work health and safety and environmental requirements
Foundation
Skills
 Are embedded within the elements an performance criteria of this unit All tasks
Dimensions
of
Competency
 Task skills, task management skills, communication management skills,
analysis &problem-solving skills
All tasks
Materials and learning resources supplied to all students studying this course
All students who are studying the Program Management course are assigned and supplied the following
resources to assist them to learn and complete activities and assessments:
 Unit Learner Guide, PowerPoint and Assessment Pack for the unit: “PSPMGT006 Develop a business
case”
 Text book: (hard copy) “How to manage complex programs” by Tom Kendrick
 E-library licence: with a large number of Program and Project Management text books and videos
 ZOHO licence: Project Management Software
Please note: that all licences are purchased annually and are accessible on SBTA classroom computers and
available to all our Project and Program Management students.
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Assessment task 1: Understanding how to develop a business case
Instructions to Student
A business case is a proposal for a project. It is a potential improvement opportunity to implement a new
product or service that will last and provide opportunity to improve a project or the business.
This task will allow you to demonstrate your understanding about the development of business cases. The
questions below will assess your knowledge of the overall topic. To provide a context for this assessment task
case studies have been prepared for you to review. Please speak to your assessor if you need to have
clarification or require more information about the context of the case studies.
By completing this assessment task you will be able to demonstrate why program managers need to develop
business cases and present them to stakeholders. Questions below are designed to provide a generic overview
of the process of developing business cases and demonstrate your theory knowledge in:
 what are business cases
 why would project or program managers develop a business case
 theory behind developing business cases
 examining business solutions
 structures and process that will assist with contracting a business case finalising a business case
At this level of study, the Advanced Diploma level, the assessment outcome should demonstrate that you are
able to research independently and produce good quality work. You are required to demonstrate the following
skills and knowledge so that you are at the level expected by the industry:
 Answers to questions should be very detailed and report form type of answers and should be extensive.
 Project activities are detailed and well-developed, suitable for senior management positions.
 Design research, conduct analysis and report on the outcomes are providing with good suggestions and
implementation process and ideas.
 Develop strategies for the business and the organisation.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Case Study 1 – “Tasty Products”
Read case study 1 below and ensure you understand the case study well prior to attempting to complete
questions and activities below. Speak to your assessor if you require clarification about the case study.
Case Study 1
Roman Solomon is a Programs Manager at “Tasty Products PTY LTD” (Tasty Products). His responsibilities
include the management of a small project team who look after various projects for Tasty Products. His team
members include Timothy, the junior engineer, Rob, responsible for plant site repairs and grounds,
administrator Rebecca and then Roman, an engineer and the Programs Manager.
Roman was invited to a meeting held by his Director, Bill Compton, and Tasty Product’s Financial Controller,
Tomas Trumper.
The meeting held discussions about the new Central Coast Council’s Environmental Sustainable
Solutions Project, which the Director, Bill Compton, attended and learned that the Council has recently
approved a new environmental initiative project for Central Coast businesses in the aim to:
 minimise the ecological footprint for the Central Coast area;
 provide more work for local businesses;
 improve the local economy.
Central Coast businesses who wish to participate must develop a good business case about their
environmentally sustainable project and present it to the Central Coast Council’s Environmental Manager,
Bethany Hopkins, who will evaluate each project and approve funding of the project.
If the project is successful and approved, Tasty Products can receive up to $10,000 financial contribution
from the Council to enable Tasty Products to implement the project.
Tasty Products are located on a large acreage property, surrounded by large gardens, grassy areas and
bushland; and as managers regularly host clients the gardens must be well maintained. For ages now, Tamas
has been sending emails to employees asking them to be more conscious when using the taps in the
bathrooms. In the past, he implemented competition for all employees to encourage minimising water usage,
which resulted that Tasty Products now has a new policy when purchasing new toilets and taps to ensure that
they all have water reduction capabilities. The new purchasing policy also specifies that employees, prior to
purchasing new items, are to check if they can be sourced locally. Another policy implemented also included
staff to reuse, repair and resell. The overall business plans and strategic direction for Tasty Products is to
minimise their ecological footprint and this coincides with the local Government Policy, which is being
strongly endorsed by the Central Coast Council.
Knowing the company’s preferences and business direction and Council’s initiative, Bill, Tomas and Roman
want increase Tasty Product’s water saving capabilities and hence reduce the company’s ecological footprint.
Roman, as he is the Program Manager, has a great overview of the company policies and procedures and will
be developing the business case for the Council. Ronan has three (3) weeks to develop the business case
draft and present it to Bill and the management team for comment prior to being submitted and presented to
Bethany at the Council.
Activities
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Read each question, review the above Case Study and answer each question below.
Answer guide: This assessment task is to be typed with 2-3 paragraphs minimum per question unless indicated
otherwise by each question. (A paragraph is approximately 50 to 80 words).
1.1. It is important that a program manager understands the business well to develop a business case.
a. Explain how Roman is able to identify business issues, problem or a goal and list strategies and
information or tools that would be available to him so he can confirm that the business issue,
problem or the business goal is legitimate.
Roman is an engineer and Programs manager at “Tasty Products”. He is responsible for managing
small project team. He has a good overview related to the procedures and the policies of the company.
He has the knowledge related to the new policy that is implemented by the Financial Controller -
Tamas. The policy was related to the purchasing of new taps and toilets. The employees have to ensure
that the purchased taps and toilets have waste reduction capability and whether these items can be
sourced locally or not.
Roman also knows about the policy that is implemented in the company related to repair, reuse and
resell. The aim of the business was to minimize the ecological footprint and this policy of company also
coincides with the local Government Policy endorsed by Central Coast Council. He is able to identify the
business issues in an effective manner. The company wanted to enhance the water saving capabilities
and reduce the ecological footprint.
in order to identify the business issue, SWOT analysis was conducted in order identify company’s
strengths and weaknesses. The main problem that is identified with this tool is that the company need
to enhance the water saving capabilities in a more effective manner so that the ecological footprint can
be reduced. The stakeholder was involved in the discussion to identify the issues.
b. How can Roman obtain information so he is able to clarify stakeholder requirements and business
(project) objectives prior to developing the business case?
The information can be obtained by Roman related to the stakeholder requirements and the project
objectives by conducting a meeting with the key stakeholders. In the meeting the stakeholders can
present their opinion and the requirements from the project and the direction that should be followed in
order to develop the business case. The stakeholders can helps in clarifying the needs and the
motivation behind the project in an effective manner.
c. Consider a range of factors and list of opportunities and constraints available to Roman so he can
use them to examine available business solutions?(Guide: approximately 100 words)
Roman has a good knowledge about the policies and the procedures that are followed by the company
in order to enhance the ability of company to reduce the ecological footprint. The aim of the business
project is to reduce ecological foot print through enhancing the water saving capabilities. As all the
projects are managed by Roman hence he can use the knowledge while developing the business case.
the opportunities available to him are: he can make the decisions correctly and communicate with the stakeholders about the issue and
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
the solutions he can influence the team for attaining the business goals which can help in implementing the
solution in a proper manner He understands the policies and procedures that can help in identifying the solution and choose the
appropriate one.
The constraints are: He has to follow the procedure to develop the business case within 3 weeks
 the approval from Bill and the management team is necessary for implementing the solution
d. Reviewing the Tasty Products case study, list the steps that are involved in building the business
case.(Guide: approximately 100 words)
Roman is responsible for developing the business case. It is important for Roman to follow the following
steps in order to develop the business case.
1. Identification of the business problem: the identification of problem
will help in deciding on the time required to deal with the problem.
2. Research and identification of the alternative solutions: identifying
the best solution is important for eliminating the problem
3. Articulate best solution and justification of choosing it: the solution
should be suggested so that the business problem can be eliminated in an
effective manner.
4. Method of implementing the solution: using the right approach for
implementing the alternative solutions is essential to get the best results
(Chase Consulting Group, 2018).
e. Review the case study and in your own words list and propose what would be the appropriate
approval process for the business to go ahead and be presented to the Council.
(Guide: list minimum of 5 steps of proposed approval steps)
Approval process includes the following steps:
1. submission of business case to director
2. Review by director
3. resolving the issues
4. forwarding the business case to other departments for their comments
5. making decision for presenting the business case
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 8 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Case Study 2 – “Tasty Products”
Read the case study below and ensure you understand the case study well prior to attempting to complete
questions and activities below. Speak to your assessor if you require clarification about the case study.
Case Study 2
Roman has been busy getting information from all stakeholders to determine the best solution for his
business case. He has met with his team, interviewed other managers and met with team leaders and other
teams to gain good overview and information to gain lots of input.
He phoned the Councils and discussed their information about what would be a good proposal to put together
to gain the required funding. Then he spoke to couple of friendly industry contacts and also spoke to some
local competitors to discuss the Council initiative with them.
After meetings, discussions, emails and surveys he has finally identified that Tasty Products would benefit by
purchasing some large water tanks for watering their gardens. The water tanks will also be used for cleaning
of pathways and other small company areas such as the newly developed staff herb garden, which was an
initiative the administration team organised a few months ago. Some staff who live in units uses the garden
and take fresh herb home for cooking.
When Roman met with Bill and Tamas to confirm and advise them about the water tanks, they were
impressed with the idea. Bill told Roman to continue with this business case development and approved 2
water tanks, which he believed would be suitable solution and a good case to present to the Council.
1.2. Review the case study above and conduct market analysis. Provide a list of local services and suppliers
from the Central Coast, which Roman could contact to research the market, gain appropriate information
and build the draft of the Tasty Product’s business case.
In order to undertake the market analysis Roman has undertaken market analysis in which he has
interviewed different stakeholders whose viewpoint can help him in the decision making process.
Following is the market analysis of Tasty Products
Industry Overview: The Tasty Products fall under the food and beverage industry. This is one of the
largest manufacturing industry of Australia and the annual turnover of the food and beverage industry
is higher than the total manufacturing industry of Australia. Hence, it can be said that this industry has
huge potential and there are high chances for Tasty products to grow and develop.
Target Market: the target market of tasty products includes people of every age group. The company
aims to satisfy the changing needs and demands of the people and aims to offer products that can suit
to all age group people.
Competition: As this is one of the fastest growing industries in Australia hence, there are number of
competitors available in the market. With the help of knowing the competitors and their strengths and
weaknesses Tasty Products can make strategies that will give them competitive advantage. Some of
the main competitors of Tasty Products include George Weston Foods; Inghams Enterprises; Bidvest;
Nestle; Teys, etc. The strategies as well as plans of these competitors have the ability to impact the
strategies of Tasty Products. Hence, it is very important to keep a check on the progress of these
competitors (ANZ, 2016).
Pricing and Forecast: The pricing strategy of Tasty Products is influenced by the other competitors in
the food and beverage industry. The price of all the products are affordable and aim to offer products
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
that can be purchased by all the categories of people.
In order to undertake this research Roman has contacted with the employees of the company, the
managing department, the customers of the company as well as the distributors associated with the
company. Because of this Roman is able to study the strength and weaknesses of their competitors and
undertake strategic decisions.
1.3. Discuss and list:
a. the types of government bodies and organisations and their goals, that would be relevant to this
business case and;
b. the types of policies and procedures that Tasty Products would have to have that relate Ronan’s
business case?
c. List and explain how legal requirements and jurisdictional legislations Tasty Products must comply
with in regards to the work activities for the business case.
(Guide: list 3 for each and total 1 full page of information for the 3 points)
a Department of the Environment and Energy- The main goal of this government body is to protect
the environment and identify the reasons that are behind climate change. With the help of this
information the departments make changes in the plans and policies of the department and
accordingly all the organizations need to abide by the rules and regulations of this department
(Australian Government, 2018).
Environment Protection Authority (EPA): The main goal of this regulatory body is the conduct
Environmental Impact Assessments (EIA), and develops statutory obligations depending upon the
Environmental Protection Act. Apart from this, the regulatory body also provides advice regarding
environmental matters.
Department of Environment Regulation (DER): the main aim of this regulatory body is to implement
strategies as well as advice strategies that are directed towards healthy environment (Cercenvis,
2018).
b Tasty Products needs to develop policies and procedures by keeping in mind about the
environmental considerations. Hence, it can be said that the company needs an environmental
policy in order to develop this business plan. These policies will help the organization to achieve
sustainable development in a strategic manner and will also help in mitigating the environmental
issues concerning the area (OECD, 2001).
c Tasty Products needs to abide by the regulations following under the Environmental Protection and
Biodiversity Act as well as other Commonwealth legislation regulations (The Parliament of the
Commonwealth of Australia, 2014). The competition laws of the country enforced by the Australian
Competition and Consumer Commission (ACCC), Fair trading laws, Australian Consumer Laws, etc.
needs to be considered (Austrade, 2018).
1.4. Explain what financial and accounting issues or financial needs will Roman need to be aware of in relating
to developing his business case.(Guide: list minimum of 3)
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
One of the most important financial risks that can be faced by Roman is that he may experience
fluctuation in the budget of the business case. This is so because as a project progresses different
needs or issues arise in the project and accordingly allocation of funds are required to manage
these changes or issues.
Identifying the different financial risks are also an important accounting issues that will be faced in the
business case by Roman. This is important to analyse as it will help in undertaking the mitigating
measures to avoid such risks before they have appeared.
Regular forecasting of the expenditure is also a crucial issue that will be faced by Roman as and when
tracking of activities will be undertaken in the business case (DFID, 2011).
1.5. What is meant by the term “whole life considerations” when developing a business case? Review the
case study 1 and 2 and provide a list of considerations in relation to the case study.(Guide: 5 points with an
explanations)
In order to take decisions related to the development of business case it is very important to take into consideration
the cost as well as time so that quality is ensured of the business case. Whole life consideration can be understood
as the considerations that add value to the decision of the business plan. Whole life consideration revolves around
decisions that are taken for the long term success of the business case.
On the basis of case 1 and case 2 it can be said that the whole life consideration is the decisions taken by the
company like making use of taps that have water reduction capabilities, to make sure that water is saved. This will
help the company to reduce their ecological footprint.
An important decision taken by the company is that they are opting for those products that can be reused, and
resoled. This will also improve the environmental efficiency of the organization.
Another whole life consideration was related to the use of water tanks for watering the gardens. This will also
facilitate water efficiency.
Another whole life consideration was related to conducting market analysis and include every key stakeholders in
the decision making process. This will bring a change in the organisational culture and a system of integrated
decision making system will be developed
Another whole life consideration is giving opportunity to local suppliers in order to facilitate their growth and
development
1.6. Conduct a research of Australian contract and commercial laws and briefly provide an overview how
they relate to Roman’s business case. Please ensure to select the areas of trade practices, commercial and
contract law that most relate to Roman’s business case development?
(Guide: 150 to 200 words)
According to the Australian contract law Tasty Products is undergoing into contract with the local suppliers in order to
purchase taps and other water control related products. Roman is undergoing this commercial contract with good faith
to reduce their ecological footprints. The requirement of this good faith is imposed by the commercial contract law of
Australia. Australian law has given the provision of ‘Freedom to contract’ to the companies to enter into B2B contracts
(Law Business Research Ltd., 2018). Roman is giving special emphasis on adopting trade practice emphasising over the
quality of the products being used so that they are able to meet the demands of the organization. Roman’s demand is
to get taps and other devices that have the ability to improve the water efficiency within the organization.
1.7. In this activity you will be required to review the case study and all your notes again, develop a draft of
the business cases and meet with your manager to for review.
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
a. Develop the Draft of Tasty Products Project Business Case using the table below.
Business Case The business case is related to the Tasty products. The issue of increased
ecological footprints is identified. The need to implement the strategies and
plan for increasing the ability of company to save water is essential. The project
that will be carried out to meet the council’s expectations is presented for the
approval.
Presented to the business case is presented to Central Coast Council
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Executive
Summary
The business case will help in providing with the overview about the business
issue in Tasty Products. The justification, benefits and recommendations of the
project is presented. The performance measures, goals and objectives and the
project constraints are discussed in the case.
Issue The Council has discussed about the new initiatives for managing the
environmental sustainability in the Central Coast area and it is essential for all
the businesses in the area. By understanding the requirements of the
stakeholders, it is decided that the need to reduce the ecological foot print in
the Central Coast area is there by implementing the environmental sustainable
solutions in order to get the approval from the council. As the company has
already implemented the new policies and the procedures for reducing the
waste of water and enhancing the capability of company to save water through
implementing the appropriate solutions.
Anticipated
Outcomes
The strategies and the plans along with the policies and the procedures will be
implemented which will help the company to reduce ecological footprint by
enhancing the water saving capabilities in an effective manner. Eventually this
project will help the company reduce consumption of extra cost and move in
the direction of the managing the environmental sustainability as well as meet
the Council’s requirements. The company should be able to identify the
suppliers that are able to offer high quality taps and toilets having water saving
capability and they are able to be reused, repair and resell. This will help in
reducing the cost of the company and will be able to manage the
environmental sustainability and establish the competitive advantage in the
area.
Recommendati
on
The business issue is increased ecological footprint in Central Coast area. The
company has implemented the new policies related to saving water. The
company can get the approval for the project as the company is already putting
the efforts through using the taps and the toilets that have water saving
capabilities. The company is already following actions that are initiated by the
council hence with the help of implementing the different techniques and the
strategies, the company can effectively contribute in reducing the ecological
footprint. By identifying the different techniques and the methods that can be
used for reducing the ecological foot print, the company can enhance the water
saving capabilities. This will help in meeting the objectives of the project as well
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
as help in enhancing the ability to meet the Council expectations.
Justification The techniques and the method for enhancing the water saving capabilities will
help in reducing the ecological foot print in the Central Coastal area. The
company can also focus on saving the cost of the taps and toilets through using
the reusable, resalable and repairable taps and toilets. The ability of the
company to save water will also enhance with the help of this project. Other
techniques and methods related to reducing water waste will also help in
enhancing company’s ability of saving water.
Business case
consultation
and analysis
team
The team will include Timothy, junior engineer; Rob, plant site repairs and
grounds; Rebecca , administrator;
Roman, Programs Manager; Bill Compton, director and Tomas Trumper, Tasty
Product’s Financial Controller.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Role Description Name
Project
financial
controller
The project financial controller will be
responsible to make sure that all the
activities related to the project can be
accomplishing within the estimates cost
for the budget.
Tomas Trumper
Project
approvals The administrator will be responsible
for obtaining the approval for the
project from the director.
Rebecca
Process
Improvemen
t
The tools and the techniques that can
be used for the purpose to enhance the
processes will be advised.
Timothy
Project
Manager
The project manager will be responsible
for managing the project team and the
business case during the project. Roman Solomon
Project team
The project team will be responsible to
carry out the activities related to the
project and report to the project
manager so that he can analyse the
performance of the project. The project
will also support each other to
accomplish the project activities so that
the project objectives can be met.
Timothy
Rob
Rebecca
Communicat
ion forum
The project manager and the
administrator will be responsible for
conducting the meeting to
communicate the progress of the
project and present it to the director of
the company.
Rebecca and Roman Solomon
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 15 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Role Description Name
Problem
impact
Statement
The problem is increased ecological
footprint and it is necessary for the
company to reduce it. As the company
already follow the policies and the
procedures that can help in enhancing
the water saving capability hence
decided to focus implementing the
strategies and the plans that are able
to support company in increasing water
saving capabilities. This can help the
company to contributor in reducing the
ecological footprint in the Central Coast
area.
Roman Solomon and Timothy
Impact on
Tasty
Products
The project will help in providing with
the support to company in saving water
and eventually save the cost of the
company in an effective manner. The
company can contribute highly in
reducing the ecological footprint. The
team will emphasize more on following
the environmental sustainable
processes and the procedures. The
employees will be motivated to follow
the environmental friendly actions. This
can help in enhancing the ability of
company to establish competitive
advantage, save cost and influence the
customers towards the company.
Roman Solomon
Technology The implementation of the water saving
nozzle in taps, water saving aerator and
water saving devices will be used in
order to enhance the ability of the
company to save water.
Roman Solomon and Timothy
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 16 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Role Description Name
Project
Overview
and Goals
and
Objectives
The project overview will address the
business problem. The goals of the
project are to reduce the ecological
footprint and implement the strategies
to enhance water saving capabilities.
The objectives of the project are getting
the approval from Council in order to
carry out the project.
Roman Solomon
Project
Performance
and
monitoring
In order to measure the performance of
the project, the strategies and the tools
used for saving water will be monitored
on the regular basis and the impact of
it on the ecological footprint will be
analysed.
Roman Solomon
Project
Constraints
Constraints are:
 Availability of limited financial
resources
 Roles and responsibility
assigned to small number of
people
Roman Solomon
Managemen
t of physical
resources
Resource
requireme
nts
Current
method of
acquisitio
n
Recommended
method of
acquisition
Comment as
to why no
change is
recommended
or why you
recommend a
change in the
acquisition
method
Stakehold
er
comments
water
saving
nozzle in
taps, water
saving
aerator and
water
saving
devices
different
suppliers
3 local
suppliers
The acquisition
of resources
from the
different
supplier can
increase cost.
Keeping few
local suppliers
will help in
it will
surely help
in reducing
cost
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 17 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Role Description Name
negotiation as
well as reduce
the
transportation
cost as the
resources will
be acquired
from local
region.
financial
resources
finance
departmen
t of
company
CSR resources
of company
It will help to
save the
company’ other
cost
it will help
in saving
cost and
perform
the
activities
within the
available
resources
Major
Project
Milestones
Major project milestones are:
1. Project plan development
2. Project plan approval
3. Selecting the suppliers
4. Obtaining the resources needed
5. Implementation of strategies
6. Accomplishment of the project
Business
Alignment
The project will help in enhancing the ability of company to save water through the
project. The company can contribute in reducing ecological footprint which will add
value to the business and will also help in establishing the competitive advantage.
Cost Benefit
Analysis
The table below shows the savings and cost actions related to project.
Action
Action Type Description First year costs (-
indicates
anticipated
savings)
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 18 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
obtaining
water
saving
devices and
other taps
cost Initial investment $50,000
reducing
the
suppliers
and
obtaining
resources
from local
suppliers
savings it will help in reducing cost of obtaining
water saving tools and devices
$15,000
repairing,
reusing and
reselling of
the water
saving taps
and devices
savings
it will help in reducing the consumption of
extra cost for installing new taps or
devices for water saving
$10,000
Total $25,000
Alternativ
es
Selecting the local suppliers
Obtaining the water saving taps and other devices from the local suppliers and
keep the suppliers informed about the requirements on regular basis
Approvals The approval from the company’s director is essential.
b. Present the business case draft to your assessor (Bill Compton) for review and:
 Collect feedback and suggestions for improvement from Bill
 Record the feedback in the table below and;
 Correct the business case draft based on Bill’s feedback.
Bill provided with the feedback that it is essential to find out the local suppliers in the initial stage
so that the resources can be obtained on time and the cost should controlled on the regular
basis.
c. Once you have finalised the business case document, meet with the stakeholders from Tasty
Products (your colleagues or your assessor) and review explain and present the business case to
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 19 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
them. During the meeting you are to confirm and finalised the stakeholders’ requirements and
finalise the business case.
At this stage you are to gain their agreement for the project to go ahead. It may be beneficial for
you to develop a checklist inside the meeting minute template so you are well preparing and list all
points that must be address for you to gain full approval for the project to go ahead.
Complete the meeting minutes below as a record of your communication and presentation to the
client.
Meeting Minutes
Meeting
name
TASTY PRODUCTS BUSINESS CASE – draft Date: / /
Chair Minute
taker
Attendees Student
names and
student IDs
Feedback
provided
Topics
discussed
It is discussed in the meeting that it is important for the company
to use the water saving devices and. The need to emphasize upon
the choosing the local suppliers in the very initial stage of the
project so that resources can be obtained on the time. This can
eventually help the company to reduce the ecological footprint
and project success.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 20 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Your assessor, when meeting with you about the case study, will provide you with feedback. The assessor will
ask you verbal questions about the business cases and complete the following checklist. You must complete
and be satisfactory in this task prior to moving to complete assessment task 2.
ASSESSOR’S OBSERVATION CHECKLIST
Did the student demonstrate: Satisfacto
ry
Understanding of the Government goals  Yes 
No
Understanding of Tasty Products goals, policies and practices  Yes 
No
Understanding how to complete and prepare a business case draft using appropriate language
and a style suitable to written submission of Roman’s draft business case to his director and
senior management team
 Yes 
No
Understanding of Tasty Product’s legal requirements related to the business activities that will
be performed during the implementation and running of the proposed project related to the
business case proposal
 Yes 
No
Understood financial and accounting information relating to the development of the Tasty
Products business case
 Yes 
No
Understanding of the whole-of-life considerations of a business case  Yes 
No
understanding how an approval processes of a business case works  Yes 
No
Understanding aspects of trade practices law, commercial law and law of contract relating to
the development of business cases
 Yes 
No
General understanding and jurisdictional legislation that applies to business case development,
including work health and safety and environmental requirements
 Yes 
No
Appropriate communication skills to engage in discussion and communicate complex ideas of
the business case with the team, accepting feedback positively from meetings
 Yes 
No
Presentation skills and presented the Drafted Business Case for Tasty Products to the assessor
and explained its details to the assessor (acting as the company Director)
 Yes 
No
Overall task was completed satisfactory  Yes 
No
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Assessor Feedback:
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Assessment task 2: Develop a business case
Instructions to students
In this assessment task you will be demonstrating practical skills in developing a business case. The task will
refer you to a virtual company called “Bounce Fitness” which will provide workplace contexts and company
documentation such as policies and procedures, staff and other relevant information.
Or, if you are currently working (and understand the organisation well) and/or if you are working as a project or
program manager (e.g. in an engineering company), please discuss your workplace and your work
responsibilities with your assessor so that you and the assessor can determine whether you are able to use your
workplace and check that the organisation is suitable.
To assist you with additional research, refer to your resources and materials supplied to help you with the
completion of this assessment task. You can further your research using the internet but you must use your
own words and ensure you reference any information taken directly from your research sources.
In this assessment task you will be completing the following:
 Identifying and confirming a business need or a problem
 Researching a business case
 Examining business solutions
 Constructing a business case
 Finalising the business case
You have two options to complete this assessment task. Either read the scenario below and complete all
activities; reflect on your own workplace (if you have one) and use your workplace to identify a business need
or a problem that you can develop and propose a business case for. Your assessor will observe your meetings
and role-plays, review your business case and provide you with feedback.
At this level of study, the Advanced Diploma level, the assessment outcome should demonstrate that you are
able to research independently and produce good quality work. You are required to demonstrate the following
skills and knowledge so that you are at the level expected by the industry:
 Answers to questions should be very detailed and report form type of answers and should be extensive.
 Project activities are detailed and well-developed, suitable for senior management positions.
 Design research, conduct analysis and report on the outcomes to provide with good suggestions and
implementation process and ideas.
 Develop strategies for the business and the organisation.
Activities
Complete all activities below.
Read the scenario 1 - the Bounce Fitness Project below and complete all activities as indicated.
Scenario 1– Bounce Fitness Project - Business Case
Your work for Amazing Projects and Sons (Amazing Project). Your manager asked you to visit the General
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 23 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Manager of Bounce Fitness in the Sydney Centre. The General Manager has contacted Amazing Project
because Amazing Projects completed a shop fit out next door to the Fitness Centre. The shop owner was very
impressed and told the Bounce Fitness staff how happy she is with the fit out and with the professionalism of
Amazing Project contractors. So that General Manager of Bounce Fitness Sydney Centre called Amazing
Projects and ask to have someone come in and have a discussion. She has some ideas but needs professional
opinion.
Your job is to learn about the Centre, discuss the centre’s needs with the General Manager in the Sydney site,
review services and clients; and any improvement needs. During your meeting you can also ask and identify
and confirm a business improvement or a business problem.
On Monday this week, you met with the Centre Manager, Linda, who gave you a good overview of the
company’s history, services and their needs to increase profit. You took lots of notes, especially when Linda
spoke about the small coffee shop leased to a private operator which will be closing next month. The coffee
shop has been in the building for ages and is very small and a little tired. Not an image that the Centre
wishes to portray. Linda is worried that some of her clients will go to the Hyde Park gym which is 5 minutes
away when the lease leaves next month. They have a nice modern light kitchen where their clients can sit
after their sessions.
When you were leaving Linda asked if you could come up with some solution about sitting out a coffees shop.
Your next meeting will be in a week so you can come up with some ideas for business improvement and
possibly confirm her needs.
Your notes:
“Bounce Fitness is made up of four fitness centres. Head office is currently established in Cairns, Queensland.
The other centres are in Brisbane, (Queensland), Sydney, (New South Wales) and Melbourne, (Victoria).
It was established in 2001 by Margaret House as a single aerobic studio. After two years’ membership
increases demanded the small leased centre be expanded and a new facility was built on land purchased by
the organisation. In 2004 a second centre was established in leased premises in Brisbane and then Sydney
and Melbourne in the subsequent two years.
The Head Office remains in Cairns and a Board of Directors has been established to oversee the function of
the business in all of the centres. Each centre has a General Manager (Centre Manager) who reports to the
CEO in Cairns, and a team of permanently employed fitness instructors and other casual instructors, all of
whom report to the Centre Manager.
The business is operated on best business practice and complies with all legislative requirements, local by-
laws and is registered with the national body.
Bounce Fitness intends to market its brand through excellence in service and expertise to establish itself as a
premier provider of fitness and wellness in Australia.
All centres are carpeted in areas used for stationary activities, spacious, well-ventilated and air-conditioned
to make the environment as safe and comfortable as possible. They are light and feature wrap-around
mirrored walls.
Each centre features a retail section selling fitness shoes, clothes and other related fitness items. There is a
small cafeteria which was in the building before the gym has opened and it is leased to a provider who
supplies healthy, low calorie drinks.
Each Centre has scheduled various fitness classes ranging from high intensity to low intensity. The
scheduling is left to each Centre but must sustain a minimum average of twelve in each class for them to
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
continue to be held. The style of classes changes as new methods are developed to sustain interest and
provide variety.
Funding is primarily from memberships. Memberships are sold on one, three, six and twelve monthly bases
on a decreasing fee scale. Casual members are welcome, but the daily rate is a premium one.
Each Centre sells memberships to 120%. This means that at peak times it could be quite crowded, but
experience demonstrates that there is a maximum of 80% usage.
The retail arm of the business accounts for about 30% of the takings from each centre. The strategic plan for
retail is set to increase investment in sales this year to 35%. Each Centre will be given a budget to develop
and implement a sales and marketing plan to trial. The most successful may be implemented nationally and
will attract an incentive for the most successful Centre. When discussing this, Linda mentioned that the
current cafeteria rent the gym receives from the lease is included in the retail business income. The cafeteria
lease, is reconsidered during each annual planning session by the Board, which produces 5% of the income,
less than the rent off-set
You have reviewed your notes the aim to identify business needs or issues prior to having a meeting with
Linda and her team.
Please note: Students must base their activities using the Bounce Fitness virtual organisation or refer to their
own organisation. If students are to use their own workplace and stakeholders, they must discuss the
organisation and its services with the assessor who will check if the scenario can be based on the workplace.
The assess will also be able to determine if any of the stakeholder meetings, required by this assessment task,
can be role-played in front of the assessor using colleagues or if the student will be required to use his/her own
workplace managers and record, collect and supply evidence of all communication and meetings.
Assessment task answer guide: All tasks must be typed up and completed as indicated by each activity.
2.1. In this activity you will be holding a meeting with Linda and her team and role-play your discussion.
a) You are now required to role-play a meeting with the management team to identify and confirm the
business issues and business goals; and to analyse key stakeholder requirements, consider
opportunities for improvement and discuss any constraints of the business so that you are able to
develop an appropriate business case for the organisation and meet the organisation’s needs.
Guide: Students who are using the virtual company “Bounce Fitness” scenario will be required to
role-play their meeting in the classroom and use their colleagues to act as Linda’s team. Students
who are using their own workplace, which has been approved by the assessor, must supply
evidence of meetings with management and communication of their discussions such as photos,
emails and discussion points.
Business goals
The business goals of Bounce Fitness is to increase their number of customers by offering them better
services as well as facilities for recreation. The fitness centre aims to increase the profitability of the fitness
centre. For this the fitness centre aims to build a coffee shop below the building so that more and more
customers are attracted in this fitness gym as they have place to sit and relax after their sessions are over.
The Bounce Fitness already has a coffee shop below the building but it is in tired conditions and hence, the
centre is planning to renovate this building and make it more attractive and comfortable for the customers
visiting the gym. All the four centres of Bounce Fitness has cafeterias in their centres for their customers.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 25 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Business issues
The main issue of the Bounce Fitness is that the small coffee shop that is below the gym building has been
rented and the lease is ending after a month. So, the gym manager is worried that as the gym will no more
have a place to sit and relax they may lose their customers. This is so because the Bounce Fitness has a
competitor in a very close proximity of the fitness centre. This competitor also has a well maintained kitchen
where the gym customers sit and relax. Hence, if the Bounce Fitness is not able to start the coffee shop or
offer these services they may lose many customers directly affecting the financial performance of the fitness
centre.
Key stakeholder requirements
Stakeholder Requirement Specification (StRS) plays a very important role in the completion of project.
Stakeholder Requirement Document should be completed by the project managers in order to identify the
needs and requirements of the key stakeholders. In order to undertake the requirement analysis different
documentation process or tools and techniques needs to be adopted. This requirement analysis may include
timeline analysis, functional flow diagrams, modelling, N2 diagrams, fault tree analysis, effect analysis,
design reference missions, images and pictures, etc. The key stakeholder requirements include retained
needs of the customers, the expressed needs of the customers, the perceived needs as well as the real
needs (SEBOK, 2018). On the basis of this it can be said that the main key holder requirement in case of
Bounce Fitness is to retain as well as increase their customers by offering them recreation services. For this
the fitness centre aims to develop a coffee shop below the gym building.
Scenario 2 – Bounce Fitness Project - Business Case
You have reviewed the organisation’s history, vision and mission statements, future inspirations for the
organisation and checked your notes from the initial meeting with Linda; and you have organised a follow
up meeting with Linda and her team, the decision makers.
It is important that you communicate and brainstorm with the decision makers who may have
information and create other multiple options to insert into your business case. During the meeting you
will need to analyse their requirements and clarify their objectives confirm any business problems, issues
or goals that they wish to address, and discuss and consider various factors that may identify
opportunities for improvement and constraints for the business case. Remember that:
 It is crucial to clearly define the problem and parameter of the solution.
 There should be an agreement about the scope between the person authorising the business case
and those who will execute analysis.
 Justification for the project could be based on the benefits to business operations, strategic direction
goals, and/or cost benefit analysis.
b) During your meeting you will be required to take meeting minutes and attach the meeting minutes
to this assessment task. The meeting minutes need to address points such as:
 Stakeholder requirements and objectives
 Business requirements and objectives and goals,
 Discuss opportunities and any constraints that need to be addressed in the business case
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
 Discuss any market trends, and check with Linda and her team, about Bounce Fitness
opposition gyms as part of your initial market research and analysis
Guide: students may choose to use the template enclosed or use one from their workplace.
Meeting Minutes
Topic Date: / /
Chair
Attendees Student
names and
student IDs
Discussion
points
Persons
responsible
In the meetings the key stakeholder requirement has been
identified as the development of coffee shop to attract more
customers. The constraint is that the current coffee shop is in a
tired condition and will require strategies accordingly. Some of
the competitors studied includes Snap Fitness Sydney, Plus
Fitness, Forever Fit Gym.
2.2. Now that you have identified and confirmed what the business case will be based on, you are required
to conduct a market analysis. To confirm that the business case for the project you are preparing is
appropriate and suitable to Bounce Fitness’s needs:
a) research other industry providers in the area (minimum of 3) that provide the same or similar
services, review their services, analyse data available and compile a table of the analysed data and
forward it to Linda and her team with recommendations that you believe would be suitable. A table
has been provided below or you can develop your own.
Guide: type and complete the table below.
Organisation 1 Organisation 2 Organisation 3
Plus Fitness Forever Fit Gym Snap Fitness Sydney
This is one of the best gyms in
Australia because it has a number of
branches all over the country and
has provided no locks in the contract
to the members to use the different
branches of the gym. Many free
fitness programs are undertaken
and also personal training is
provided at affordable personal
training (Plus Fitness, 2018).
Has adopted effective exercise
programs and has set a very high
standard in Australian market by
educating the members about
fitness and other nutritional
benefits. This gym also undertakes
group classes that help to
motivate each and every member
(Forever Fit, 2018).
This fitness gym is one of the very
famous gyms in Sydney. It has
gained its popularity because of
its professional trainers and
services provided by the gym like
group classes, strength training,
etc. (Snap Fitness, 2018).
Recommendatio
n
These organizations have captured a large section of the Australian market. On the basis
of the analysis of these competitors it can be recommended to Linda that they need to
strengthen their marketing strategies as well as should opt for personalized health
PSPMGT006 Marking Guide Version 2 Issued
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ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
programs to attract more customers.
b) Email the market analysis to Linda and her team for their perusal and their confirmation so that you
can start developing the business case for the project.
Copy and paste your email to Linda and her response in the space below as evidence of
confirmation that you are able to start working on the business case.
Guide: Minimum of 2 emails demonstrating communication between the Project Manager and the
client (e.g. Linda and her team). Students are to compose and send it to the client. Students must
use their sbta emails and communicate for sending and receiving a response.
Email 1: Market Analysis
Industry Overview: The gym and fitness industry of Australia has grown largely in the last few years and is going under
structural changes (IBIS World, 2018).
Target Market: The main target market of this industry is the younger generation and the older generation
Competition: The main competitors of the company are Plus Fitness, Forever Fit Gym and Snap Fitness Sydney
Pricing and Forecast: The pricing strategies of this industry largely depends upon the facilities and other services being
offered by the gym centres
On the basis of this market analysis the business case will be developed and all the necessary strategies will be taken
accordingly.
Email 2: Response from Linda
The market analysis is very strong and Amazing Projects can go ahead with the business case development.
2.3. When preparing a business case for the project, it is important to evaluate the business case and
communicate that to your client. You are required to:
a) conduct risk and impact analysis of business changes (improvements) identified and relevant to the
business case (project) for the following:
 Business operations
 Technical tasks and/or technology
 Customers and clients
 Community (as relevant) and
 Environment
Guide: Students may choose to conduct PESTEL analysis or complete the table below.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 28 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Impact type Description of the
impact
Risk
rating
1-
Lowest/
5
highest
Proposed solutions Financial
impact
Business case statement – overview of the
proposed changes
Impact on
operations and
staff
(Guide: 50-80
words)
There are chances that the gym
may need to close its normal
operations for few days
5 Gym can total seclude the
construction area so that its
impact does not impact the
normal routine operations
There may be
chances that
potential
customers
during the
closed days of
gym may go
to some other
gym reducing
the financial
performance
Technology and
IT impact
(Guide: 80 words)
There are chances that this
change may increase the
number of customers and the
diverse demands of customers
3 Solution to this is that the gym
should be ready for the adoption
of technological advancements by
changing their gym equipment to
meet the changing needs
This may
require huge
investments
Impact on
community
(Guide: 50-80
words)
There are chances that the
community may take this
change in a negative manner as
they come to gym for staying fit
and such establishment may
impact their diet
4 Solution to this is that health
products can be offered here so
that it does not negatively impact
the diet of people
Healthy
products are
usually costly
hence, there
are chances
that the cost
towards
suppliers may
increase
Impact on the
environment
(Guide: 50-80
words)
There are chances that a large
amount of waste near the
cafeteria may accumulate
4 Proper waste disposal measures
should be adopted to avoid
negative impact on environment
This may
require
additional
investment
WHS safety
impact (Guide:
50-80 words)
Workplace health and safety is
very important. If, because of
cafeteria there is an increase in
unhygienic activities it may have
direct impact on health and
safety of people
3 Additional team should be
developed to maintain hygiene
near the cafeteria area
Recruitment
training and
selection
needs to be
adopted
which may
require
additional
money
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 29 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
b) Hold a meeting with Linda and her team (role-played by your assessor or your colleagues) and
discuss solutions to any issues identified from you risk and impact analysis. You will be required to
discuss, record and obtain an approval for:
 any alternative and/or better solutions
 financial implications of new identified solutions
 obtain agreement from the client for any change
 record all meeting and discussion points in the meeting minutes to ensure that the client is
happy with any of the alternative solutions and financial implications
Guide: At least one alternative solution needs to be discussed and approved.
Meeting Minutes
Meeting
name
Date: / /
Chair
Attendees Student
names and
student IDs
Discussion
points
Persons
responsible
In this meeting all the possible technological, operational,
environmental, etc. risks were discussed and possible solutions
were also suggested by reflecting its impact on finance of the
gym. Linda was satisfied by the solutions and also agreed with the
fact that this may require additional investment on the part of
gym.
2.4. You have discussed, approved and confirmed all details for the business case and the project with all
relevant stakeholders and now it is time to prepare a timeline and timeframe for successful project
implementation and completion.
Use the space below to provide ideal dates and worst-case scenarios for plan implementation, as well as a
more general time frame for business case / project implementation and completion.
 Provide the costs associated with the project implementation timeline, as well as the potential overall
costs and losses if the project is not implemented and;
 Provide an overview of the potential consequences that could result from the project not being
implemented.
Contacting with supplies and arranging
raw material required at construction
site
1 week-1.5 week in worst case
scenarios
$25000
Undertaking architectural work 2week-3 weeks $40000
Floor construction 4week-5weeks $100000
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 30 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Elevations 3weeks-4weeks $100000
Ceiling 3weeks-4weeks $50000
Miscellaneous activities 3weeks-4weeks $50000
2.5. Draft an executive summary which you will copy into the final business case document.
The executive summary is the first and most important part of the business case. The business case
executive summary outlines the proposed project, that if implemented, would further the identified
business goal, and/or resolve the identified business problem or issue.
The executive summary should contain major considerations that will be later discussed in more detail in
the business case document, including the timeline for the business case implementation and completion,
as well as the projected benefits and costs of business case implementation.
Some steps for you to consider are:
 Starting your summary using appropriate language such as: “This report is submitted in support of
(e.g. Cafe Bounce Fitness Project or other the student decided to work with).
 Overview of the evaluation and analysis of all relevant financial, marketing and business
costs/considerations associated with implementing the suggested recommendations in this business
case.
 An overall explanation of why the proposed project should be implemented, and identify the impacts
on the business for not implementing the project.
2.6. Use all information you have gathered so far and complete your business case document.
To assist you with completing your business case document please refer to Appendix 1at the back of this
Assessment Pack. The template provides you with prompts, examples and ideas on how to complete each
section of the business case document. Use the table below for any comments and additional points so
that you can refer to them when you are completing the business case document template.
Guide: the business case document / template, Appendix 1, provides prompts and example to students so
they can see how the template is to be completed. Students are required to delete the examples from the
template and type in their own relevant information for their own business case.
2.7. In this activity you will be organising and presenting a strong, persuasive Business Case.
a) You will be required to complete the following steps:
 Present your draft of the business case to your Amazing Projects manager (assessor acting as
your manager) so that your business case is checked and ready to be presented to the client.
 Edit your business case draft as per feedback from your Amazing Project manager, review and
correct any unnecessary language and grammatical errors.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 31 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
 Make sure your business case is formatted in a manner that is easy to read and clearly displays
each of the separate business case sections in underlined or bolded text.
b) Hold a meeting with Linda and her team and present your business case to them to obtain their
final approval for the project. When presenting consider the following:
 Use of a PowerPoint presentation to add visuals to your business case presentation.
 Identify potential concerns that management may have about implementing the business case
plan and develop a checklist or another document to assist you with addressing these concerns
in your presentation prior to the client raising them;
 Ensure to address these concerns during your presentation, instead of waiting for management
to raise their concerns.
 Organise to have a signature or a confirmation email from Linda that will confirm that your
presentation was successful and your business case and project will be implemented
 Attach or copy and paste the email into this document or collect a signature at the back of your
document, scan it and submit it with your assessment for marking.
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 32 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Your assessor will complete the following observation checklist and provide you with feedback.
ASSESSOR’S OBSERVATION CHECKLIST
Did the student demonstrate the following skills: Satisfactory
The student was able to identify and confirm a business issue or a problem  Yes  No
The student met with key stakeholders and discussed their need and clarify their
objectives, opportunities for improvement and constraints of the business case  Yes  No
The student conducted market analysis and discussed them with the client  Yes  No
The student analysed and documented impact and risks on the business relevant to the
business case including community, HR impacts  Yes  No
The student discussed alternative solutions with the client and discussed implication for
finances  Yes  No
The student determined business risk, business impact and business costs and check
them with the stakeholders  Yes  No
The student developed the business document draft and discussed it with his manager
(assessor)  Yes  No
The student corrected and prepared the final draft of the business case document and
corrected all mistakes and proofread the document  Yes  No
The student presented the final business case document to the client  Yes  No
The student obtain final approval for the business case and the project  Yes  No
The student used communication skills to engage in discussion and communicate
complex ideas and the business case, hold meetings, exchange ideas and research and
answered questions during meetings
 Yes  No
The student specified how resources are managed and utilised teams to manage
resources  Yes  No
The student use appropriate language style to present written document, reports, which
presented complex ideas and information when submitted to the client  Yes  No
The student was able to present and explain ideas to various individuals and team  Yes  No
Satisfactory  Yes  No
Assessor Feedback: If the feedback is electronic then this checklist does not need to be signed as there
will be an online trail of the feedback for student and assessor. Student is able to see feedback on the portal.
Assessment Task 1
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 33 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Assessment Task 2
Assessor signature: Date
:
Work supervisor
initials & name
only if relevant:
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 34 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
BUSICNESS CASE
1. Executive Summary
The project is related to the reconstruction of coffee shop. The central manager wants to reconstruct the
coffee shop so that customers can be attracted towards the shop. The issue is that the coffee shop may lose
customers due to coffee shop’s tired look. The need to increase the profitability can be fulfil by the coffee
shop reconstruction. The outcomes, recommendations, justification and the information related to the
business case analysis team are provided in business case in order to get the approval for the reconstruction.
The impact of project on organization is discussed. The project description, problem statement, goals and
objectives, assumptions and constraints, milestones and the actions are discussed.
1.1 Issue
The key issue is that the coffee shop below gym is tired and its lease is leaving next month. Hence, it is
needed reconstruct the coffee shop and make it more attractive so that the customers can come to the shop
in place of visiting to the other coffee shop near it for relaxing. It is required to attract the gym customers so
that they will not go to other coffee shop as it can affect the profitability.
1.2 Anticipated Outcomes
Building the attractive coffee shop with more facilities will help in attracting the customers to the coffee shop
in an easier manner. Developing the plan for making the shop more attractive will help increasing
profitability.
1.3 Recommendation
It is essential to identify the areas that can be developed in the coffee shop and the things that can help in
attracting the customers towards the coffee shop. Developing the plan for shop reconstruction while
considering these areas can help in increasing the effectiveness and profitability collectively.
1.4 Justification
As the aim behind the recreation of coffee shop is increasing the profitability. The recreation will help in
attractive more customers towards the coffee shop.
2. Business Case Analysis Team
Role Description Name/
Title
Project
Manager
responsible for managing the project team and the business case -
Project
Team
responsible for the reconstruction of coffee shop, market analysis and
accomplishing the activities of the project
-
Project
Review
responsible to monitor and review the reconstruction activities and suggesting
about the things that can be developed in the coffee shop to attract the
customers
Linda
3. Problem Definition
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 35 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
3.1 Problem Statement
The lease of the coffee shop is leaving next month. The condition of coffee shop is not good. The coffee shop
needs to be reconstructed in order to attract the customers towards it and increase the profitability.
3.2 Organizational Impact
This project of coffee shop reconstruction will help in increasing the profitability by attracting the customers.
3.3 Technology Migration
The new coffee shop will use the technologically advanced chairs which can help in relaxing the gym
customers after gyming so that they can relax their body by visiting coffee shop.
4. Project Overview
The project overview will help in providing with the information related to the business problem. The
description of the project, project performance, goals and objectives of the projects, constraints and the
milestones of the project are discussed.
4.1 Project Description
The project is related to the reconstruction of the coffee shop that is not in good condition and the lease is
leaving next month. The project manager has to develop the plan for the reconstruction of coffee shop with
the aim that the modified coffee shop can attract more customers. The reconstruction is carried out in order
to increase the profitability in an effective manner.
4.2 Goals and Objectives
Business
Goal/Objective
Description
increasing the
profitability
this project of coffee shop reconstruction will help in increasing the profitability
reconstruction of
coffee shop
the need to reconstruct the coffee shop is there as the shop is not in a good
condition and unable to attract the customers
attracting more
customers
It is essential to attract more customers so that the profitability can be
increased.
4.3 Project Performance
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 36 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Key
Resource/Process/Servi
ce
Performance Measure
Reporting In order to measure the performance, the progress of the project will be required and
reported on a continuous basis. This will help to analyse any gap in the actual and the
estimated timeframe or cost of the project.
Timesheet/Admin data
entry
Timesheet will be developed that will be filled by the employees or the staff members
of the project on a daily basis. This will help in easy evaluation as and when required
and will also ensure that less burden is falling on the manager.
System Management With the help of proper system management and integration of activities a lot of cost
and time will be saved on this project.
Staff Resources As the project will progress elimination of staffs will be practiced like, when painters
work is needed then only employ them and as his work is completed his elimination
should be taken from the project team
Management of resources In order to manage the human resources proper allocation of activities and the required
staff to complete that specific task will be undertaken. This will help in proper
delegation of authority and responsibility
For management of financial resources tools like Gantt chart will be used and on the
basis of the Gantt chart all the costing will be undertaken. This will help from
experiencing any budget overrun.
4.4 Project Assumptions
The project assumptions are:
 It is assumed that the project will accomplish in 4-5 months
 the objectives of the project can be met through the project planning
 It is assumed that the project complete within the estimated budget of $365000.
4.5 Project Constraints
The project constraints are:
 the time for the construction is limited
 the budget for the project is limited
4.6 Major Project Milestones
Milestones/Deliverables Target
Date
Project Charter 18/11/201
8
Project Plan Review 20/11/201
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 37 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
8
Project charter approval 05/11/201
8
obtaining the raw material for
construction
21/11/201
8
Initiating constriction 23/11/201
8
completion of construction 12/03/201
9
closing of the project 17/03/201
9
5. Strategic Alignment
Plan Goals/Objectives Relationship to Project
increasing the
profitability
increase the income flow
through coffee shop
the overall profitability will increase with the
increase in profitability from the coffee shop
reconstruction of
coffee shop
attracting more customers
towards the coffee shop
the customer will get attracted towards the
coffee shop which will help in generating income
6. Cost Benefit Analysis
Action Action
Type
Description First year costs (-
indicates anticipated
savings)
reconstruction of coffee
shop
Cost initial cost $340000
obtaining material for
construction
Cost initial cost $25000
bargaining with suppliers
for raw materials
Savings it will help in reducing the cost of
material used for construction
-$5000
Net First Year Savings $5000
7. Alternative Analysis
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
Page 38 of 39

ASSESSMENT TOOL
Qualification BSB61215 Advanced Diploma of Project Management
Cluster number and name: PMAD 4.1 Develop a business case
Units of competency: PSPMGT006 Develop a business case
Student’s ID: Please advise all students to insert their ID this column and on all pages, they submit.
Assessor’s name: Please ensure your name or assessor name is inserted.
Alternative Option Reasons For Not Selecting Alternative
no reconstruction of coffee shop
 higher investment
 customers are still visiting the coffee shop
Alternative Option Reasons For Not Selecting Alternative
focusing on attracting customers
only
 some customers have started visiting other coffee shop
 investment in marketing
8. Approvals
Approver Name Title Signature Date
Linda Centre manager
PSPMGT006 Marking Guide Version 2 Issued
10/10/18
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