Developing a Business Plan for DIY Realty: Analysis and Strategies

This article discusses the importance of reviewing existing plans, DIY Realty's vision, segmentation, factors affecting pricing strategies, and using lead and lag indicators to measure performance. It also covers the advantages and disadvantages of using lead and lag indicators.

Table of Contents
INTRODUCTION...........................................................................................................................1
.........................................................................................................................................................1

MAIN BODY
1. Why must you review existing strategic, business and operational plans when developing
a business plan?
It is crucial for organisation to review its existing strategic, business as well as
operational plan in order to develop effective business plan. Review of strategies and plan
will assist in providing accurate direction and idea to company regarding current
performance. Through this organisation will be able to meet needs and wants of
customers as well as successfully deal with new competitors in market area.
2. What information do these plan provide that is important to the development of your
business plan?
This will provide information about financial goals of business, new competitors in
market area, current capabilities and performance of company as well as customers
requirements. All of these are important information which is significant for development
of business plan.
3. What are some of the potential consequences for manager who fail to review existing
strategic, business and operational plan?
There are some potential consequences for managers who fail to review existing
strategic, business and operation plan such as ineffective functioning of business. There is
lack of control over business activities and it will negatively affect productivity and
performance of the company. Uncertainty and unpredictability of future is one of the
major consequences that is faced by manager due to failure of reviewing existing
strategic or operational plan.
Vision for DIY Realty
1

To become one of the well known company of market area by full filling needs and expectations
of customers as well as provide effective products and services.
There are different elements that are most important to the company vision such as Value,
inspiration, plausibility and specificity.
Keep satisfied
This includes all those stakeholders who have high power but low interest in business activities.
Government and regulatory bodies are consider in this as it is crucial for respective company to
keep them satisfied for smooth and effective functioning of business.
Manage closely
Business partners and bank that is associated with business are included in this quadrant. These
stakeholders have high power as well as high interest in business practices. They are managing
business practices closely and have right to take important decisions.
Monitor
This consist of customers of respective business. These stakeholders have low interest in
business activities and low power to influence performance of business. They are only
monitoring activities of organisation and can not take any decision regarding business practices.
Keep informed
These includes stakeholders who have high interest in organisational activities as well as low
power to take business decisions. It consist of network contacts of the organisation and they are
highly interested in business activities.
1. It is very important to consult with identified stakeholders because it will assist in
providing information about business as well as gaining knowledge about different
elements associated with organisation. Consulting with stakeholders will help in
identifying as well as monitoring trends of market area. Different issues and challenges
that could affect performance of business over a time can be determined successfully.
There are different stakeholders that will assist in providing information about needs and
2

wants of customers so that company can perform its activities accordingly. It has been
analysed that consulting with stakeholders will help in taking right and accurate decision
which is beneficial for business.
2. There are different consultation methods that can help to ensure the effectiveness of
consultation by providing information about different elements and aspects regarding
business. Through this respective company will be able to know how well the plan is
working as well as assist in determining the need for further actions. Different
consultation methods helps in analysing and determining different workplace changes
and situation as well as assist in managing required set of changes in accurate manner.
Through this it ensure effectiveness of consultation by making possible changes and
improvement in business plan.
3. There are some potential impact for managers who do not complete consultation when
developing a business plan such as managers will not be able to determine and analyse
situation correctly and accurately. This will lead to have negative impact on performance
and productivity of business. Managers who do not complete consultation while
developing business plan are not able to play an active role in existing process. They do
not have control over business practices and what happen in the company.
1. What business is DIY Realty in?
DIY Realty is in real estate business and this company is providing effective and efficient
services to customers by reducing middle man or agents. This company is selling
products and services of real estate market area as well as meeting needs and
requirements of customers.
2. Who is their target market?
The target market of DIY realty company is customers who is looking for products and
services of real estate. This organisation is majorly targeting customers of Australia
market area.
3. What products or services their customer buying and what benefits do their customer
thinks they receive from this product and services.
Customers of DIY Realty company are buying products and services of real estate. The
3

major benefit that is gained by customers of respective company is that there is no middle
man. This assist in saving money of customers as well as gaining high quality products
and services form respective organisation.
Segment Describe the customer Detail customer needs
Demographic This is significant for
classifying customers on the
basis of their age, gender,
education as well as
socioeconomic positioning.
Respective company is
considering customers who
are above age of 20 both male
and females. This organisation
is consider customers who are
well educated and have
understanding about real
estate products and services.
Geographic This segment consist the
group of customers on the
basis of quality, availability as
well as price.
DIY Reality is performing its
products and services in
Australia market area and it is
meeting customers needs who
are located in Australia.
Benefits This includes benefits that is
provided by company to its
customers. This is significant
for attracting and influencing
large number of customer and
meeting expectations.
Respective company is
providing effective real estate
products and services to
customers which is significant
for full filling their demand.
DIY Reality company is able
to save money of customers
by removing middle man or
agents. There are different
financial benefits that could be
attain by company
Factor 1 – Cost
4

It is essential for organisation that before setting a cost for your products or services you need to
know the costs of maintaining your business. The primary thing that you need to consider when
fostering a pricing strategy is the accompanying business should take care of your costs and
afterward think about a benefit. Most importantly you should be monetarily educated. Before
you set your pricing, work out the costs engaged with maintaining your business. These
incorporate business fixed costs the costs that will come in consistently paying little mind to
deals and business direct costs the costs business bring about by creating and conveying your
products and services.
Factor 2 – Customers
Another significant perspective to think about when setting the pricing strategy is the clients or
customers. Examine what do the clients need from your item or administration. This data will
assist you with deciding whether your cost is correct, what level of administration or
considerations you ought to offer and in conclusion in case you are focusing on the right market.
It is possible that you need to change your market to make your business more productive. It is
essential for organisation to determine needs and expectation of customers before setting prices.
By analysing requirements of customers respective organisation will be able to set accurate price
for its products and services.
Factor 3 – Positioning
Business need to settle on a choice would you like to be the most costly, lavish, top of the line
brand in your industry, or perhaps the least expensive one. It is crucial for company to analyse
and evaluate where they want to market its products and services. Positioning of business is one
of the essential factors which will lead to have affected over pricing of business.
Factor 4 – Company goals and objective
Organisational goals and objective is significant factor that will lead to affect pricing strategies
of business. It is important for respective company to set price of products and services which is
accurate according to goals of DIY Realty. An organization without a business objective will
fail. The initial step is to be clear about what you need to accomplish with your pricing strategy
is it augmenting benefits or boosting piece of the pie with your products, etc.
Factor 5 – Competitors
It is crucial for company to determine the price of products and services offered by competitors.
This will help respective organisation to take correct and accurate decision regarding pricing
5

strategy. This is one of the key occasions you can allow business to do a little competitor
sneaking around.
1. It is important to decide what you will measure before determining how it will measured
as it will assist in identifying the outcome that organisation wants to achieve. By
determining what business will measure will provide accurate and correct details
regarding the result and goals which needs to be accomplished.
2. It is essential to consider what is most important to the organisation when identifying
what you will measure as it will directly lead to increase in performance and productivity
of business. By considering all those elements which are most important for organisation
will help in taking right and accurate decision for business.
3. There are different ways to determine what is most important to the organisation such as
goals and objective of business, customers feedback, communication with in
organisation. all of these methods and approaches will assist in identifying that is
important for respective business.
4. It is important to measure what the business is trying to achieve as it will provide correct
and accurate direction to business. By determining what business is trying to achieve then
its strategies and action plan will be develop accordingly and it will assist in successful
functioning of business.
5. Potential impact of failing to measure the areas most important to the organisation is that
it will lead to negatively affect business performance and activities. If organisation is
failing to measure all those areas that is important for organisation then it will not be able
to accomplish its set goals and objectives. Due to this, organisation will have to face
several issues such as financial loss and lower customer base.
6. Potential impact of failing to measure the objectives of your business plan is that
respective company will not be able to attain its desired goals. If organisation is failing to
measure its objective then there will be wrong or lack of direction to employees for
effective functioning.
Uses and advantages or disadvantages of lead indicators
6

Leading indicators need to be measurable with a view to provide recommendations as to in
which the financial system is headed subsequent. Investors use those indicators to manual their
investment strategies as they anticipate future market conditions. Policymakers and vital bankers
use them while placing economic or financial coverage. Businesses use them to make strategic
choices as they count on how future economic conditions may additionally affect markets and
revenue. Leading indicators are often based on combination records accrued via respected assets
and targeted on precise aspects of the economy. Leading signs are important for constructing a
broad know-how of performance due to the fact they offer statistics on probable future
consequences. Leading signs are much more likely to be precise to your organization, which
makes them more difficult to build measure and benchmark.
Advantages- They provides the opportunity to reveal and examine the effectiveness of safety
systems and strategies, in addition to the general fitness of a corporation’s safety control system
or safety tradition. Further, main indicators can be used to benchmark contemporary practices
and reveal continuous development through the years. Organizations that efficiently maintain
non-stop development begin the adventure through transferring their cognizance from lagging to
main indicators.
Disadvantages- The foremost drawback to simplest the use of lagging signs of protection
performance is they let you know how many people were given harm and the way badly, but no
longer how properly your enterprise is doing at stopping incidents and injuries. The reactionary
nature of lagging signs makes them a terrible gauge of prevention. For example, when managers
see a low injury rate, they will grow to be complacent and positioned protection on the lowest of
their to-do listing, when in fact, there is numerous chance factors present in the place of work so
as to make contributions to destiny accidents.
Advantages or disadvantages of lag indicators
Advantages- One of the benefits of lagging signs is how clean they may be to identify and seize.
This regularly has teams centered primarily on these KRIs which might be best one piece of the
puzzle. Lagging indicators are ancient in nature and do no longer replicate contemporary sports.
These measures lack predictive electricity. Lagging indicators are commonly “output” orientated,
easy to degree but hard to enhance or impact. They tell you what came about, together with your
revenue and profit numbers, and tend to be clean to perceive and degree. Lagging signs are an
important detail on your overall performance control framework because they constitute the
7

undeniable reality.
Disadvantages- The primary drawback of simplest the usage of lagging indicators of safety
overall performance is that they tell you what number of humans got injured and the way badly,
however not how properly the business enterprise is doing at stopping incidents and injuries.
While commonplace, their reactionary nature makes them a poor gauge of prevention.
Different ways to use lead and lag indicator to measure the performance of business plan
The phrases “Leading indicator” and “lagging indicator” have grow to be well known
terminology in overall performance size and control.
Leading indicators are approximately seeking to expect the destiny. The term “main indicator”
originated in economics, where it’s defined as a measurable monetary component those
adjustments earlier than the economic system starts off evolved to observe a specific pattern or
fashion. The number of mortgage defaults, as an example, can predict negative modifications in
the economy.
Leading indicators are vital for constructing a wide understanding of performance because they
offer records on probable future effects. But they aren’t ideal. For one element, they aren’t
constantly accurate. Many people were flawlessly glad with our old Nokia cell phones, for
instance, but we nonetheless switched to Apple or Samsung while smart phones were released!
Therefore, think of main indicators as what may take place, now not what truely will occur. In
enterprise, brand recognition, new product pipeline, boom in new markets or sales channels, are
all examples of ahead-searching indicators, pointing to traits that can are expecting destiny
performance. Customer pride may be an indicator for client loyalty (and, in flip, future sales),
while worker pride may be an indicator for body of workers retention (and, in flip, overall
performance and productiveness).
Lagging signs inform you approximately what has already took place, with common examples
being revenue, profit and revenue increase. They’re commonly smooth to perceive, measure and
examine in opposition to someplace else in your enterprise, which makes lagging signs very
useful. However, the obvious downside of backward-looking signs is they'll offer insights too
past due to do anything approximately it. By the time you discover that 1/2 their customers have
defected to the opposition, it’s already too overdue to forestall them. Even if it’s not too late, the
lagging indicator is probably not telling you why this fashion is taking place and what you could
do to stop it.
8

Recommendation for Cafe X management in order to improve performance against
benchmarking and KPIs
Employee Retention Rate- One of the maximum vital metrics which could correlate to
productiveness while monitoring any enterprise KPIs is your worker retention price. This refers
to the proportion of personnel that continue to be with the enterprise over a given length. The
café enterprise acutely faces a evident issue of excessive turnover because it has a tendency to be
a hassle more familiar with hourly employees, which most people of café owners rent.
Table Turn Time- Table turn time is how lengthy it could take for a visitor to dine at your café,
from the time they sit right down to the time they depart. It’s essential to nail this metric, no
matter what kind of café established order you run. For a casual dining café, the quicker your
table flip, the extra money you make.
Importance of undertaking benchmarking activities when determining the performance
objectives and measure for business plan
The intention of benchmarking is to make continuous enhancements and put in force
modifications in enterprise products, methods and offerings. Therefore, benchmarking practices
offer a better know-how of purchaser needs and expectancies. This is because customers are the
most crucial information source at each stage of evaluation. Benchmarking is most usually used
to improve performance through performance. Cutting out waste in your strategies, be it
monetary expenses or effort and time spent, will assist you streamline your operations and
ultimately help you hold more of your sales.
Consequences for managers who fail to undertake benchmarking activities when determining
performance objectives and measure the business plan
Benchmarking can be a really useful tool in performance management arsenal. The largest
downsides of the use of benchmarks can be damaged down as:
Lack of context- In most cases, the benchmark facts being as compared is stripped of its short-
term and long-time period context, which means it tells what a competitor or internal team has
completed, with no statistics on how they finished it. This makes it difficult to pinpoint
significant regions for improvement.
Measurement troubles- Not everybody measures matters inside the identical manner, which can
make like-for-like comparisons difficult. For example, one employer may degree on-time
9

transport based totally on while the shipment leaves their manufacturing facility at the same time
as others would possibly measure when the complete order actually reaches the purchaser. Then
there’s the fact that evaluating certain metrics, like profits, can be skewed via one-offs and
accounting exceptions.
Different ways to access benchmarking data
Speak in your enterprise or enterprise affiliation- Contact your applicable enterprise or enterprise
association and ask them to offer any facts they have got about overall performance requirements
(or benchmarks) to your industry. Many associations have special data that you can use to degree
your enterprise's overall performance against the standards set by using your enterprise
Use a business benchmarking commercial enterprise- Commercial benchmarking corporations
can provide them with statistics for a fee. Always do your studies to ensure that: the information
you obtain is correct and updated any records you provide is exclusive and now not related in
your commercial enterprise you're receiving fee for money.
Do your own benchmarking- If they have got the expertise, and the time, you may do your
personal benchmarking. They will want to set apart time to discover access to the records they
want, as well as giant time to analyze and file your results.
Some potential impact of failing to understand recruitment needs before commence recruiting
resources to implement your business plan is that it will lead to hiring of wrong and
inappropriate employees. If organisation is not able to understand recruitment needs then it may
lead to over staffing or under staffing within organisation. Respective company will not be able
to recruit right skilled employees for effective and efficient functioning of business.
1. Advantages and disadvantages of using a source strategy. Advantages of considering
source strategy is that it will assist in selecting right and accurate employees for
successfully conducting business activities. The major disadvantage is that it will require
more time and cost for effective and efficient candidate for respective company.
2. Advantages of recruiting internally as opposed to using a recruitment agency or
advertising externally is that internal recruitment is less time consuming and it will help
in saving cost of business. Internal recruitment is significant for increasing moral of
10

employees and provide growth opportunity.
3. Potential risk involved in sourcing all candidates internally is that it increases that
chances of conflicts and issues in workplace. Internal recruitment may lead to lower the
chance of new skills and talent in organisation. There are high probability of biasness for
selecting employees for higher position.
1. Various assessment methods to ensure that you acquire human resource with right skills
to implement plan as it will help respective company to test actual potential and skills of
employees. Through various assessment methods organisation will be able to identify
which candidate have required skill set and who will be able to meet with the expectation
of company.
2. Benefits of using skills matrix to manage the assessment of skills when recruiting human
resources to implement business plan is that it assist in analysing and evaluating
candidates on different parameters. This helps company to select most accurate and
correct employees.
1. Orientation and induction program is refer as the activities conducted by organisation for
welcoming new employees with in organisation. This is significant programme in order
to introduce new employees with managers, co workers and other employees. through
this employees will be able to understand culture and environment of the company.
Orientation process is helpful for familiarizing new hired employees with organisational
policies and guidlines.
2. Components of program that needs to be improved is training and development. It is
essential that respective company is providing correct and accurate training to its
employees so that they can conduct business practices in accurate manner. organisation
needs to improve its training and development practices by focusing on providing
training to employees according to their current skills and ability. It is essential that
training and development program is interesting for employees.
11

3. Orientation and induction program help to ensure that human resources that is acquired
are ready and willing to implement the plan as it helps in communicating with new hired
employees very well. Through this company will be able to identify new skills and
potential of employees as well as their expectation from company. Orientation and
induction program is includes ice breaking session which is significant for understanding
new employees correctly. Through this respective company will be able to ensure the
newly acquired human resource is willing to implement the plan or not.
 On the job training - The On-the-Job Training is a strategy wherein the workers, i.e.,
usable staff, is given the immediate instructions to play out their jobs on the genuine
work floor. On-the-job training utilizes the current workplace tools, machines, records,
hardware, and information to show a worker how to adequately tackle their job.
Consequently, no substitutes exist that will require a representative to make the training
move to the workplace. The workers can gain proficiency with the skills that are needed
to be acted in the genuine work conditions and furthermore gets acclimated with the work
space. Likewise, the organizations need not to bear any additional expense of setting up a
homeroom or a recreated arrangement for granting training to the workers.
 Off the job training - Off-the-job training alludes to an education strategy where
representatives study their job or the most recent headways in their field at a location
away from their workplace. This kind of training basically assists workers with playing
out their job all the more productively. Dissimilar to on-the-job training, off-the-job
training can happen close to the workplace or some place further away, for example, at a
retreat or at a training community. At the point when businesses hold training away from
the workplace, it limits distractions which guarantees representatives can completely zero
in on the material they're learning. off-the-job training involves a spot explicitly allocated
for the training reason that might be close to the real workplace, where the workers are
needed to gain proficiency with the skills and get exceptional with the tools and
procedures that are to be utilized at the genuine work floor.
 Classroom training - Educators are responsible for planning powerful training techniques
for their study halls so understudies can hold information as best as could really be
expected. It permits you to show representatives in a protected, peaceful, clean
12

environment, away from the clamor and pressing factors of the workspace. The
homeroom environment gives the significant "human touch," which is frequently absent
in innovation based training.
 Coaching - Coaching or tutoring can have comparative characteristics to active training,
yet in this sort of representative training, the attention is on the relationship between a
worker and a more experienced professional, like their manager, a mentor, or a veteran
representative. The one-on-one Coaching style makes a relationship between workers that
conveys a long ways beyond training. It likewise permits the worker to pose inquiries
they may not feel happy with asking in a homeroom, teacher drove training. This training
technique should be possible in person or practically, through online coaching sessions.
 Self paced learning - Self-paced learning is characterized as a particular learning
technique wherein the student can control the measure of material they consume just as
the duration of time they need to gain proficiency with the new information
appropriately. Self-paced learning contrasts from other learning techniques since you are
in control of what you realize and when you learn it. Self-paced learning implies you can
learn time permitting and plan. You don't have to finish similar tasks or learn
simultaneously as others.
300
Resource Method of acquisition why
Photocopier Most cutting-edge
photocopiers use a generation
called xerography, a dry
technique that uses
electrostatic charges on a
light-touchy photoreceptor to
first entice after which switch
toner debris (a powder) onto
paper inside the shape of an
photograph.
Photocopying approaches
encompass silver halide,
transfer, plan, thermographic
(see thermography), and
electrostatic (e.G., xerography,
which has end up so enormous
that the process is popularly
almost synonymous with
photocopying).
Motor Vehicle * 2 Vehicle acquisition involves a
complicated array of choices,
Acquisition with University
Funds
13

ranging from what forms of
new automobiles must be
bought whilst and from whom,
to how that purchase will
carry out for the fleet through
the years.
Vehicles can be bought or
leased with frequently
budgeted general budget, as
with all buy of capital gadget.
If a buy is financed,
University coverage requires
that the acquisition rate be
amortized over the useful life
of the vehicle
B. Acquisition with
Government Funds
Vehicles can be acquired with
funds furnished by a U.S.
Authorities agreement or
provide if its terms permit.
The methods in Section four
practice.
Fridge Refrigeration is a vital meals
garage approach around the
arena. The lower temperature
lowers the replica rate of
bacteria, so the fridge.
Mechanical-Compression
Refrigeration Systems. The
most widely used refrigeration
cycle method is mechanical
compression. ...
Absorption Refrigeration. ...
Evaporative Cooling. ...
Thermoelectric Refrigeration
Licence that would be required to obtain to implement business plan
Business licenses are permits issued with the aid of federal, country, and nearby authorities
businesses that allow individuals or businesses to behaviour business within the government’s
geographical jurisdiction. You may need to get a couple of licenses to be in compliance. The
14

time period “commercial enterprise license” is a bit misleading as it makes it sound as though
there is one license you follow for, sort of like a motive force’s license, that you purchased and
—voila! You’re legally in enterprise. That is not the case.
15

REFERENCES
Books and Journals
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial learning. International
Journal of Entrepreneurial Behavior & Research.
Chung, C.H., 2020. BUSINESS PLAN TO DEVELOP SMART LENDING IN CONSUMER
FINANCE COMPANIES IN VIETNAM.
Lukash, N.A., 2020. Ways to develop startups as a form of entrepreneurial activity (Master's
thesis, Сумський державний університет).
Avazov, N. and Maxmudov, N., 2020. Investment as a source of financing. Архив научных
исследований, (24).
Nabi, G. and et. al., 2018. Does entrepreneurship education in the first year of higher education
develop entrepreneurial intentions? The role of learning and inspiration. Studies in Higher
Education, 43(3), pp.452-467.
Zhichkin, K. and et. al., 2019, August. Development of evaluation model effectiveness of
modern technologies in crop production. In IOP Conference Series: Earth and Environmental
Science (Vol. 315, No. 2, p. 022023). IOP Publishing.
Claure, F., 2018. Learning Music Entrepreneurship by Doing: How to Develop Experiential
Learning Opportunities in an Academic Setting. International Summit of the Music &
Entertainment Industry Educators Association March, pp.22-24.
Brown, C. and Morrad, D., 2020. SME leaders' drivers to embrace environmental uncertainty
and develop their sustainable business model strategy.
Pampouri, A.A., Funding programs to develop and introduce New Technologies in Technical
and Vocational Education Historical Research Azarias A. Mavropoulos Aristotle University of
Thessaloniki-Greece.
Online
Leading Indicator. 2021. [Online]. Available Through: <
https://www.investopedia.com/terms/l/leadingindicator.asp>.
What Is A Leading And A Lagging Indicator? And Why You Need To Understand The
Difference. 2021. [online]. Available Through: < https://bernardmarr.com/what-is-a-leading-and-
a-lagging-indicator-and-why-you-need-to-understand-the-difference/>.
16

5 KPIs Every Clever Café Manager Should Track. 2021. [Online]. Available Through: <
https://www.bizimply.com/blog/5-kpis-every-clever-cafe-manager-should-track/>.
17