Business Expansion Plan for King Edward VII College

This report highlights the key factors related to King Edward VII College's business expansion plan, including financial forecasts, staff and customer feedback, business problems and issues, VET information, trends analysis, decision process, compliance, data storage and access options, sensitivity analysis, validity and reliability of source data, and risk management.

Business expansion
briefing report

Contents
INTRODUCTION...........................................................................................................................3
Business Performance......................................................................................................................3
Financial forecast.............................................................................................................................4
Forecast for 2019.........................................................................................................................4
Forecast for 2020.........................................................................................................................4
Staff feedback..................................................................................................................................5
Customer Feedback.........................................................................................................................5
Business problems and issues..........................................................................................................6
VET Information.............................................................................................................................6
Trends analysis................................................................................................................................6
Decision process..............................................................................................................................6
Compliance......................................................................................................................................7
Data storage and access options......................................................................................................7
Sensitivity analysis..........................................................................................................................7
Validity and reliability of source data.............................................................................................8
Risk Management............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business expansion report focuses on key factors which are required by the business to take
into account while planning for expansion. The following report highlights such factors related to
King Edward VII College which is currently working in two locations, Melbourne CBD and
Sydney (Abdul Aziz and et.al., 2019). The organisation is currently planning to start their
operations at two new locations, namely, Brisbane and Adelaide. The different financials and
forecasts are presented in the report and risks related to the organisation. The trend analysis of
the organisation is also discussed here in.
Business Performance
By comparing the results of initiatives to objectives and analysing what the business projects to
fulfil, business performance refers to how well the business and organisation are operating. The
statement of profit and loss of King Edward VII College for the year 2015-16, 2016-17, 2017-18
will be discussed in the following points:
 In the year 2015-16, the business has earned a sales revenue of $ 800,000 and the total
costs of sales for the business were $ 742,450. The projected profit for the business were
$ 86500 but the actual profits for the business were recorded as $ 57550. The business
saw a variation of 20 % in the profits due to a smaller number of students applying for the
courses of organisation than expected. This may be due to the fact that it was the initial
year of business.
 In the year 2016-17, the income from sales of the courses were recorded to be $
1,270,000 which have increased from the initial year and there have been rise in the costs
of the business as well and in this year the cost of sales was recorded as $ 851,350. The
profits for the business were $ 418,650 which were as expected by the business.
 In the year 2017-18, the revenue of the business was recorded as $ 1,860,000 and the
costs of sales for the business in this year were $ 1,346,900. In this year the business
recorded 10% extra costs for every element except rent and wages than expected. Due to
this a significant amount of reduction has been seen in the profits of the business for this
particular year (Benda, 2019).
 Overall, the performance of the business is satisfactory. There were seen some variations
in the profits for the initial year and a little increase in costs in the year 2017-18 but it can

be said that the business is earning enough to meet its costs and an increasing amount of
profits.
Financial forecast
The predicted sales and costs, as well as profit or loss, for the next two years are as
follows, based on trend analysis and data supplied by Administration and Marketing.
Forecast for 2019
Forecasted Profit & Loss FY2019
Sales
Income from courses $26,40,000
Net Sales $26,40,000
EXPENSES
Electricity and gas 7257.8439
4
Internet 2661.2094
4
Office supplies 3189.0526
4
Rent 483856.26
3
Stationary 2859.1506
4
Wages and salaries 879738.65
9
Superannuation 83575.172
6
Travel and accommodation 6762.9909
4
Water 6411.0954
8
Work cover insurance 4838.5626
3
TOTAL EXPENSES $14,81,150
Profit or Loss before Tax $11,58,850

Forecast for 2020
Forecasted Profit & Loss FY2020
Sales
Income from courses $50,88,000
Net Sales $50,88,000
EXPENSES
Electricity and gas 11217.72
Internet 4113.163
Office supplies 4928.997
Rent 747847.8
Stationary 4419.1
Wages and salaries 1359723
Superannuation 129173.7
Travel and accommodation 10452.87
Water 9908.983
Work cover insurance 7478.478
TOTAL EXPENSES $22,89,264
Profit or Loss before Tax $27,98,736
Staff feedback
The issues which the staff is facing includes that their work is not provided to them as per
the description of job. This may impact the employee turnover ratio of the organisation and may
enables in decreasing its sustainability in the industry for long – term. The college is a place
where students get to learn more, if the work and the management is not efficient then the
employees will be not satisfying with the environment and will lead to more turnover. It
decreases the productivity of the company and will hamper its efficiency in the future. The
involvement of the staff member is very less (Bílý, 2019).
Customer Feedback
The overall feedback for the college is good from the point of view of the students. The staff
members for the college is good if considering the staff, faculty, class environment, coursework,

communication for the course. But the things, that could be improved is that the communication
from the teachers after the classes. It is very difficult to connect to the faculty member, so this
thing should be changed by assign more staff member for the colleges. It will help in assessing
the growth of the students more and will also increase their efficiency.
Business problems and issues
The issue and the challenges that the business is facing mainly is:
 Less faculty members: The staff of the college is very less, due to which the student of
the college is facing problems. It is not able for them to connect to the teachers faster
their classes related to their problems. This is the reason that the efficiency and the results
of the students are not good (Jelínková, 2019).
 Turnover rate is high: The management of the organisation is not good, which is why the
staff member of the premises is troubled and in future it could lead to increase in the
turnover rate of the faculty. Also, the jobs are not described properly.
VET Information
The informal networks for providing the VET information can be:
1. Board of Directors
2. Management Groups
The formal networks that are used for VET information is:
1. Government bureaucrats
2. Referring agencies
Trends analysis
Profit and loss account of the organisation shows that the business is earning significant
amount of profits. It can be seen that on an average organisation is being able generate profits of
more the 40% as compared to the previous year. The organisation has shown a significant
amount of increase in the sales of the business concern (Mohd Hairuddin, 2020).
The increase in sales have not increased the cost incurred in the same proportion. This
helps the organisation in decreasing the cost of production which indirectly have increased the

profits of the business. Income generated from the operations of the firm have increased its
profits and reduced the amount of cost incurred to manufacture a product.
Decision process
It is explained as a procedure which considers identification of goals and objectives, collecting
the necessary and relevant data as well, comparing between the alternatives that are available
with the company for carrying out effective decision making. The concept is easy to understand
and imply in lesser time period. It is a level where the business would reach on a point counting
growth and expansion for earning more profit and generating excess of revenues. It is able to
develop companies that would help to expand markets on international grounds as well and help
to function in different countries after minimizing risks. It is a process which helps to have a
thoughtful decision after counting every option and alternative available (Surya, 2018).
Compliance
The definition of compliance can be described as a state that helps to meet standards or rules
set by the company and it also includes actions which help in complying with commands. It can
be defined as a procedure that helps to assure that the business and staff person are following all
rules and regulations, meeting set standards well in time and ethic based practices must be
implemented in specific company chosen. The definition of compliance is simply which justifies
that corporate sector is acting responsible and within the legal framework. This is counted among
one of the main advantage in any enterprise as no company wants to counter any criminal
charges for not following the law stated. It helps in ascertaining risks that the company might
face in near future and must be well prepared in advance.
Data storage and access options
The data for the benefit of the student in colleges should be stored and provide the access to the
students through the option of Google drive or Dropbox. It is one of the most used and easy to
access for anywhere with the access to internet through either the mobile phones, laptops or
computers (NURYANI, 2018).

Sensitivity analysis
It can be explained as a financial theory that predicts how target variables are affected
which are based on alterations in different variables that are known as input variables. This
model is known as simulation or what if examined analysis. It is a way which would help in
predicting the result of a related decision given in a definite reach of variables. One example of
sensitivity analysis that is being adapted by business can be explained as ascertaining the affect
after including sale results for comparisons, advertisements of organisation. It is the study for
measurement of consequence of fluctuations being recorded with the help of parameters of a
system or mathematical model on the performance resulting or the outcomes. In certain meaning
it can be said that it is an investigation that involves the employed portion and modification in
outputs of a system of various sources having uncertain nature in its inputs.
Validity and reliability of source data
The foremost and first priority in any sector of business if validity of data and information.
This is the honesty of the source in relation to the information that is represented. The second
reason for analysis of a source is to take in account at the liableness of the source. Reliability can
be explained to the extent of area on which a person can feel itself relying as source of data or
information. It can be explained how efficiently a method can measure it on a given standard. It
further mentions the consistency of a measure that would help to consider data which is accurate
and would help to carry out related outcomes and results (Piovesan, 2018).
Risk Management
It can be explained as a process of finding, examining and controlling risk as well as threats
that prevail in a company's earnings and capital. Such risks take place because of several sources
that takes in account legal liabilities, issue related to technology, accidents, natural disasters and
uncertainties related to financial situations. There are some steps that contribute in minimizing
and controlling risk related areas such as transferring, sharing, retaining, loss prevention and
reduction. There are several types of risks such as Finance related risks, business and non-
business threats as well. There are some measures that would help in managing and handling risk
in professional market and world such as Accepting risk and finding solution for it well in time,
reducing risk by finding related ways and methods that would contribute in same, avoiding risk
(POLESE, 2018).

CONCLUSION
From the above report it can be asserted that important factors which contribute in making
and developing a business plan include measures such as feedbacks related to consumers, staff
persons. It also takes in account business related issues and problems for which effective
solutions must be searched for implementation. The report also helps to carry out related analysis
and examination of procedures and methods chosen for running and functioning of business in
hypercompetitive environment. It considers how risk can be managed and minimized which
would not affect profit and revenue generation in a firm. Thus it is necessary for every firm to
find attendant options and understand trend which would be contributing in improved
performance.

REFERENCES
Books and Journals
Abdul Aziz, S.N. and et.al., 2019. Business Plan: A & A Travel & Tours.
Benda, M., 2019. Podnikatelský záměr–založení výrobní společnosti: Business Plan–Starting a
Manufacturing Company (Doctoral dissertation, Brno University of Technology).
Bílý, D., 2019. Podnikatelský plán na založení hokejové akademie: Business Plan for
Establishing a Hockey Academy (Doctoral dissertation, Brno University of
Technology).
Jelínková, K., 2019. The Business Plan of the Municipality in the Housing Sector (Doctoral
dissertation, Brno University of Technology).
Mohd Hairuddin, S.N., 2020. Fundamentals Of Entrepreneurship (ENT300) Business Plan:
Saralicious.
NURYANI, S.D., 2018. BUSINESS PLAN: DIVISI ENGLISH PREPARATION (EP) MM FEB
UGM YOGYAKARTA
Piovesan, E., 2018. Il Business Plan in un’ottica di sistema informativo integrato.
POLESE, M., 2018. Business Plan delle start-up: importanza e caso pratico.
Surya, P., 2018. Analisis Business Plan terhadap Bakso Ikah Asgar.