The Importance of Feedback in Organizations

This assignment delves into the crucial role of feedback within organizations. It analyzes how various types of feedback, including those from employees, clients, suppliers, and stakeholders, contribute to enhanced performance, improved decision-making processes, and a positive work environment. The text emphasizes the importance of actively seeking and incorporating feedback for organizational growth and development.

Project
Diploma of Finance and Mortgage Broking Management
(DIPMB_AS_v1A3)
Client identification (client to complete)
Please complete the fields shaded grey.
Project result (assessor to complete)
Result — first submission (Details for each activity are shown in the table below)
Not Yet Competent
Parts that must be resubmitted:
1, 2, 3, 7 and 8
Result — resubmission (if applicable)

Result summary (assessor to complete)
First submission Resubmission (if required)
Section 1
Task 1 Not Yet Demonstrated Not Yet Demonstrated
Task 2 Not Yet Demonstrated Not Yet Demonstrated
Task 3 Not Yet Demonstrated Not Yet Demonstrated
Section 2
Task 4 Demonstrated Demonstrated
Task 5 Demonstrated Demonstrated
Task 6 Demonstrated Demonstrated
Task 7 Not Yet Demonstrated Not Yet Demonstrated
Task 8 Not Yet Demonstrated Not Yet Demonstrated
Task 9 Demonstrated Demonstrated
Feedback (assessor to complete)
Reasonable work for the first attempt and to finalise this project, please review the feedback for Tasks 1, 2,
3, 7 & 8 and then resubmit for further assessment.
You might also like to review my feedback for Task 5 as well but you do not have to resubmit this Task.
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Before you begin
Read everything in this document before you start your project for .
About this document
This document includes the following parts:
• Instructions for completing and submitting this project
• Results and feedback
• Section 1: Complex lending and broking
• Section 2: Business management skills
Instructions for completing and submitting this project
How to use the study plan
We recommend that you use the study plan for this subject to help you manage your time to
complete the project within your enrolment period. Your study plan is in the KapLearn
subject room.
Completing the project
The project
This project is split over 2 sections. The information and data you need to complete Sections 1 & 2
is presented in case studies at the beginning of those sections and each task.
Section 1: Complex Lending and Broking
The first section on complex lending and broking, requires you to answer the questions for one (1)
of the three (3) available case studies. Each case study focuses on different lending scenario, (see
diagram below).
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Section 2: Business management skills
Section 2 requires you to complete the six (6) tasks as listed in this template.
SECTION 1 SECTION 2
3 questions 6 questions
Choose
one path PLUS
Case Study A
Case Study B
Case Study C
Investment Property Finance
Commercial Equipment Finance
Commercial Premises Finance
OR
OR
Task 4–9
Business
Word count
The word count shown with each question is indicative only. You will not be penalised for
exceeding the suggested word count. Please do not include additional information which is outside
the scope of the question.
Additional research
When completing this project, assumptions are permitted although they must not be in conflict with
the information provided in the Case Studies.
You may also be required to source additional information from other organisations in the finance
industry to find the right products or services to meet your client’s requirements, or to calculate any
service fees that may be applicable.
Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your
work regularly.
• Use the template provided, as other formats will not be accepted for these projects.
• Name your file as follows: Clientnumber_SubjectCode_Submissionnumber
(e.g. 12345678_DFP1B_Submission1).
• Include your client ID on the first page of the project.
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Before you submit your work, please do a spell check and proofread your work to ensure that
everything is clear and unambiguous.
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Submitting the project
You must submit your completed project in a compatible Microsoft Word document.
You need to save and submit this entire document.
Do not delete/remove any sections of the document template.
Do not save your completed project as a PDF.
The project must be completed before submitting it to Kaplan Professional Education.
Incomplete projects will be returned to you unmarked.
The maximum file size is 5MB. Once you submit your project for marking you will be unable
to make any further changes to it.
You are able to submit your project earlier than the deadline if you are confident you have
completed all parts and have prepared a quality submission.
The project marking process
You have 12 weeks from the date of your enrolment in this subject to submit your
completed project.
Should your project be deemed ‘not yet competent’ you will be give an additional four (4) weeks to
resubmit your project.
Your assessor will mark your project and return it to you in the subject room in KapLearn under
the ‘Assessment’ tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your project. Failure to do so will mean that your project will not be accepted for marking;
therefore you will not receive the benefit of feedback on your submission.
If you do not meet these requirements, you will be notified. You will then have until your
submission deadline to submit your completed project.
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How your project is graded
Project tasks are used to determine your ‘competence’ in demonstrating the required knowledge
and/or skills for each subject. As a result, you will be graded as either competent or not yet
competent.
Your assessor will follow the below process when marking your project:
• Assess your responses to each question, and sub-parts if applicable, and then determine whether you
have demonstrated competence in each question.
• Determine if, on a holistic basis, your responses to the questions have demonstrated overall
competence.
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‘Not yet competent’ and resubmissions
Should sections of your project be marked as ‘not yet competent’ you will be given an additional
opportunity to amend your responses so that you can demonstrate your competency to the
required level.
You must address the assessor’s feedback in your amended responses. You only need amend those
sections where the assessor has determined you are ‘not yet competent’.
Make changes to your original submission. Use a different text colour for your resubmission.
Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure
you leave your first assessor’s comments in your project, so your second assessor can see the
instructions that were originally provided for you. Do not change any comments made by a
Kaplan assessor.
We are here to help
If you have any questions about this project you can post your query at the ‘Ask your Tutor’ forum
in your subject room. You can expect an answer within 24 hours of your posting from one of our
technical advisers or client support staff.
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Capital City Finance and Mortgage Brokers (CCF &
MB)
George and Mildred are very happy with the way you service your clients and are sure that you are
a good fit for the team. They now want you to turn your focus to your primary task which is to
assist in expanding the business by building relationships with selected real estate agents,
accountants and legal firms through strategic alliances. They also want you to consider how CCF &
MB can consolidate its relationships with its existing strategic partners.
Let’s recap on what you already know about Capital City Finance and Mortgage Brokers (CCF &
MB).
It’s a family owned business providing a range of mortgage and finance broking services to the
business and private sectors, with experience in all facets of finance and insurance providing expert
advice covering a multitude of products and options existing within the market.
CCF & MB specialises in home loans, commercial lending, business lending, personal and motor
vehicle finance and insurance (life and general), and focuses on helping clients find the finance
service suited to their individual circumstances.
It provides its services through its association with the following partners:
• Australian Aggregators, a rising business in the aggregation business with an extensive panel of
residential and commercial lenders, and asset finance.
• ABC General Insurance, a boutique insurance company specializing in a full range of general insurances.
• XYZ Life a small family-owned insurance brokerage specializing in the full range of life insurance
products.
Based in the city, CCF & MB has the capacity to service clients from their office or anywhere at
their clients’ convenience through its team of mobile brokers.
CCF & MB does not hold a credit license but operates as a credit representative of Australian
Aggregators.
Since its inception 13 years ago CCF & MB has built a loan book of almost $1.2 billion and
averages over $120 million in new loans annually.
CCF & MB’s vision is to be the mortgage and finance broker of choice in the greater metropolitan
area
CCF & MB’s mission statement is to operate professionally in accordance with legislation, our
licence and professional standards
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CCF & MB’s values are as follows:
• To act with honesty and integrity at all times
• To provide unbiased advice and conduct business, free from any conflict of interest
• To maintain confidentiality in all dealings
• To meet all NCCP regulatory requirements
• To comply with all mortgage industry laws and regulations
• ensure quality and efficiency in its loan processes.
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CCF & MB’s people
CCF & MB is owned by husband and wife, George and Mildred Spencer.
With over 35 years’ experience in finance and business ownership, George established and built a
successful business dedicated to assisting clients with managing their finances effectively. Starting
the business with his wife Mildred 13 years ago, George gained immense satisfaction in seeing it
expand to service more and more clients across the city and greater metropolitan area. Although in
recent years he has stepped back from dealing directly with clients, he still maintains a small select
clientele. He also takes great pride in training and mentoring his team to enhance their performance.
Mildred has over 22 years of lending experience and is qualified not only to assist her clients with
their mortgage requirements but also to assist them with their commercial finance requirements. She
also holds financial planning qualifications. She specialises in asset finance.
The company has a small team of five additional consultants and two administration staff members.
Profiles for the team is as follows:
• Jennifer Dee is recognized as one of the top female brokers in Australia. She has been in the broking
industry for over 10 years and has a passion and dedication to assist and accommodate all of her clients’
needs with their financial dreams. Jennifer is an Accredited Mortgage Consultant with the Mortgage and
Finance Association of Australia (MFAA).
• Louise Spencer (George and Mildred’s eldest daughter) is an Accredited Mortgage Consultant with the
Mortgage and Finance Association of Australia (MFAA) and has been working as a loan consultant for
almost two years. Louise started off in the lending industry in the office as an administrator to gain as
much experience and knowledge as possible before taking a broking role. Her passion for helping her
clients ensures that she is always available to her clients at a time and place convenient for them.
• Michael Spencer is George’s younger brother and is CCF & MB’s equipment finance specialist. He has
over 25 years working in the equipment finance industry. He has developed an in depth understanding
of the transport and agricultural industries, and also provides finance for general equipment,
motor vehicles and computer equipment.
• Martin Long has specialized in equipment finance for the last three years, but prior to this he spent
five years operating his own retail food business. This practical experience allows him to see things from
his client’s point of view, including experience with equipment finance. He specializes in plant and
equipment in the machinery, woodworking and packaging industries. Examples of some of the
equipment he has financed are farm machinery, extrusion lines, plastic injection moulders,
commercial catering equipment, woodworking plant, packaging lines, forklifts, office fit-outs and many
different motor vehicles.
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• Luis Ramirez migrated to Australia in 25 years ago as a young boy with his family. After completing
high school he graduated from university with an accounting degree and worked in ANZ in commercial
lending. He joined CCF & MB 4 years ago and specializes in vehicle and capital equipment financing.
He provides ITC and general equipment lease funding options for clients. By providing better outcomes,
both during and at the end of their equipment leases, Luis’ many clients have been able to reduce costs
and maximize the value of their available budgets.
CCF & MB is a member of the MFAA as a broking business dealing directly with the public. Both
George and Mildred are fellows of the MFAA. CCF & MB is also a corporate member of the
FBAA.
All staff members, including consultants, are paid an annual salary plus superannuation.
Consultants also receive a car allowance plus a percentage of trail commissions that are paid
quarterly based on their performance targets.
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CCF & MB’s panelled lenders
With access to an extensive panel of lenders, CCF & MB can meet most clients’ expectations.
Residential lenders are listed in the following table.
Adelaide Bank Homeloans Limited Pepper Home Loans
AMP Homeside Phoenix-Circle Credit Union
ANZ ING Direct PLAN Lending
Australian Financial Keystart PN Bank
Australian First Mortgage La Trobe Resi
Bank of Melbourne Liberty Financial St George Bank
BankSA Macquarie Suncorp
Bankwest ME Bank The Rock Building Society
Bluestone Mortgage Mart Westpac
Citibank NAB Wide Bay Australia Ltd
Commonwealth Bank Newcastle Permanent
Heritage Bank Peoples Choice Credit Union
Commercial lenders and asset finance providers are listed in the following table.
Adelaide Bank Commercial Bibby Financial Services Pty Ltd Liberty Financial Commercial
ANZ Commercial Commonwealth Bank Commercial NAB Commercial
Australian First Mortgage Commercial IMB Commercial St George Commercial
Bank SA Commercial ING Direct Commercial Suncorp Commercial
Bankwest Business Banking LaTrobe Commercial Westpac Commercial
Adelaide Bank Commercial Macquarie Leasing Westpac Equipment Finance
ANZ Asset Finance Commonwealth Bank Asset Finance Liberty Asset Finance
Future developments
George and Mildred are very keen to expand and grow their business and are in the process of
speaking with a number of real estate agents, accountants and legal firms with a view to forming
strategic alliances.
Due to the expected increase in business George and Mildred are seeking to employ another
consultant to take on the extra work. This person will be required to:
• build strategic relationships with a number of real estate agents, accountants and legal firms already
identified
• identify and foster relationships with other real estate agents, accountants and legal firms
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• provide finance and mortgage broking services to new clients identified through these strategic
alliances.
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Section 1: Complex lending and broking
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Case study A — Tom and Steve Broad
Background
Congratulations, you have just been appointed by George and Mildred as the new consultant to
handle the extra work. Whilst your major focus is to build the strategic relationships you are also
expected to build your own client base using your own connections and networks.
Two brothers, Tom and Steve Broad have approached you with their desire to jointly purchase two
apartments in the same building. They want to purchase them as rental properties. The building has
12 apartments. The units have 80% permanent tenants in place and the remaining 20% are used for
holiday rentals. The location is a highly sought after area and all holiday periods are fully booked.
The brothers have invested together before and have experience in buying and selling property.
They have sold all their other investment properties and the units will be their only investment until
they can identify another opportunity. The cash at bank is mostly from the sales of other
investments.
The property
Address: Unit 1, 92 Seaside Lane, Coastville, <Your State> Unit 9, 92 Seaside Lane, Coastville, <Your State>
Purchase price: $350,000 $385,000
Description: 2 bedroom strata title unit on the ground floor 2 bedroom strata title unit on the ground floor
Body corporate fee $2,500 per annum $2,500 per annum
Proposed income Permanent rental at $450 per week Holiday rental at $45,000 per annum
Agent details: Steven Allstone Steven Allstone
Phone: [phone] 1113
Mobile: [phone] 880 088
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The clients
Client Tom Broad Steve Broad
Current address: Unit 12, 22 Wentworth Lane, Highville, and has
lived there for eight years
23 Dury Lane Pennant Tops and has lived there with
Marie for six years. Property owned in joint names.
Value $650,000 $450,000
Home phone: [phone] 1212
Status Tom is single, no dependents Steve is married to Marie with no children
Employment PAYG and has been with the same employer for
10 years
Self-employed tradesman operating as a sole trader
for 12 years
Income $85,000 per annum $65,000 per annum for Steve
$30,000 per annum for Marie
Cash at bank $250,000 $150,000
Superannuation $150,000 $150,000 (Steve), $20,000 (Marie)
Contents $100,000 $130,000
Motor vehicle $60,000 $30,000 (Steve), $15,000 (Marie)
Liabilities — home loan $300,000 @ 7.2 % P & I, term 25 years $100,000 @ 7.2 % P & I, term 25 years
Liabilities — credit cards $5,000 limit cleared monthly 3% min payment $15,000 limit, $5,000 debt 3% min payment
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Project tasks (client to complete)
Task 1a — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Tom and Steve about their history and
experience, and the unit purchase.
In preparing your list of questions you should ensure that you cover the following:
• The complex features of Tom’s and Steve’s situation and objectives.
• Potential risks and Tom’s and Steve’s tolerance of risk. In considering risk you should consider:
– How you would identify the risks and the criteria you used to evaluate these risks
– How you would assess their current exposure, the tools you would use in terms of probability,
impact and the consequences.
(800 words).
Client response to Task 1a
Lenders need to understand the history and financial status of a borrower before engaging in
any transaction. It’s difficult to determine the credit worthiness of a borrower but it can be
very easy if maximum attention is paid to the key determinants of a person’s financial status.
A lender would wish to know if the borrower is able to pay the amount of loan requested.
Therefore he will need information such as, the purpose of the loan, the assets owned by the
borrower, the credit score of the borrower, the history of the borrower, and the income the
borrower gets. If the loan is meant for business purpose, the lander will need to see the
business plan and estimate of profits that will be generated form the business. He may also
need to know how the borrower will repay back the loan if the business fails to yield the
expected returns. Given all this information the lender will carefully amylase the situation
and decide whether to lend or to reduce the amount of loan requested. Therefore, in
determining Steve and Tom’s credit worthiness, the following questions will be asked;
1. From the financial data you provided it’s clear that the total cash at bank maintained by both of
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you separately amounts to $420,000/-, however, the purchase price of either of the units you
intend to buy is very near to your available cast, so why don’t you purchase one apartment
jointly without facing the mortgage related issues?
2. The financial position that exists between both of you is very different from each other, so, have
you made any agreement between each other to avoid any sort of conflict in future?
3. Mr. Tom, you have the liability of paying almost $1500/month for home loan liabilities and
$5,000/month credit card related liabilities, so, don’t you think that your annual income is
significantly falling short of paying the monthly installments for these apartments?
4. Mr. Steve, the combine income of you and your wife hardly reaches at $95,000/annum with
liabilities amounting to $18,000/month, then, how will you meet the installments for this longer
period of time?
5. Do, both of you brothers, agree to attach your existing properties as surety bonds with our
company CCF&MB?
6. You might have noticed that the expected incomes of the two units under question are very
different, so how would you be able to adjust the income between you?
7. The proposed income from the unit the one which is on rental holidays might face scarcity of
clients, if it happens, is there any backup plan in your mind to fill the shortage?
8. Have you purchased a property using mortgage in the near past? If yes, what was your
experience with the mortgage company?
9. Which of the following factors is motivating you to purchase the apartments?
a) Obtain revenues that guarantee financial security
b) To enable you maintain your lifestyle in case of job loss or any other financial turbulence
c) To keep up with the current trends in the property market
d) To adequately provide to your family and fulfill the obligation of protecting the family
10. What is your current financial situation? Can you please provide the following details pertaining
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your finances;
a) Are you employed? If yes, who is the employer and what are the terms of employment?
b) What is your annual pay (in dollars)?
c) Do you have any other source of income? If yes, specify and give the average annual
income from the investments.
d) Are you married? Do you have any other dependents?
e) What is your annual expenditure?
f) Are you servicing any other loan? If yes, indicate the annual deductions
11. Do you have any other investments as at now? What income do you get form the investment?
12. Do you have any other loans? If yes when are they due? Provide details.
13. Given the assets and the amount of money you have, are you able to pay the loan in case the
investment doesn’t bring the expected return?
14. If given the loan, what impact will it bring to your life? How profitable is the investment going
to be?
15. What measure have you put in place to ensure continues compliance to the law?
16. Do you have any other alternative ways to pay the loan in case the business venture disappoints
you? If yes provide details.
17. Have you ever been declared bankrupt by the court of law?
18. Could you mind including a collateral or guarantors in your loan application?
19. Have you read and understood our terms and conditions?
20. Do you have any objectives or goals that you need to accomplish? What strategies have you put
in place to achieve these objectives?
21. Are you aware of the kind of risks involved with this business venture? What measure have you
put in place to ensure that you don’t loss?
22. When assessing yourself what can you say about your credit score?
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1. What is the purpose of your loan?
2. Are you working somewhere or self-employed, if employed then give details of your employer?
3. What properties do you own currently?
4. Do you have any fixed obligations like loan, credit card, insurance premium and others?
5. Apart from income, do you have any other fixed source of income?
6. You both have a sufficient joint bank account saving of $400,000 in your own name, then why
don’t you use it to purchase one unit without incurring any financial cost like mortgage interest?
7. Although, you both are receiving good income but you already had two loan; home loan @
7.2% and credit card, then how would you pay-off your loan commitments in case of any
financial turbulence?
8. Mr. Steve, you and your wife are currently getting a yearly gross income of $95,000 jointly at
month loan obligation of $18,000, then, how it will be possible for you to manage timely
mortgage payment.
9. Which is the most important reason to purchase a new apartment whether to get rental income,
expanding property market business or any other?
10. Suddenly, if property price tends to fall and resultant significant business loss, then in such
circumstances, what will you do to meet your outstanding debt obligation?
11. For mortgage, what property or assets are you ready to keep as security to the bank?
12. If in the property market, rental charges falls in near future and affects your property rental
income, then, what strategies would be follow to meet mortgage liabilities?
13. You expected to have 20% holiday rental income, however, in the challenging market,
expectation may significantly differ from the actual demand. If you do not generate sufficient
demand may be due to cheaper offerings by other property owners, then how would you assure
timely payment of your debt?
14. Do you have other investment plans in future?
15. Do you have any guarantor who can assure your creditworthiness?
16. Considering your current financial situation, if you are sanction with a loan less than requested;
then how would you satisfy rest of the financial need?
17. Do you understand all the credit terms and conditions?
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Assessor feedback: Resubmission required?
Good first attempt.
However, you have not demonstrated to the Assessor that you are
competent in regards to this Task at this stage as you have not provided
sufficient questions to meet your obligations under the requirements of
the National Consumer Credit Protection Act 2009, section 117. As a
guide you were advised that this Task should be 800 words. It is
suggested you put more thought in the questions you have to ask and
the depth of the questions to ask.
For example, but not limited to:
 As you have invested in property before what have to learnt
 Have you used legal structures like Trusts, Companies to
purchase our other properties or have you used joint tenants or
tenants in common
 Each time you have bought a property do you have a formal
agreement between yourselves
 Explain to me what you understand of cross collateralisation
 Has Marie ever expressed what you do and has she ever had to
go guarantor for the loan’s; etc
If Marie is required to go guarantor what questions would ask to
conform that she had a commercial benefit, etc?
As an additional resource you may wish to look at ASIC’s Regulation
Guide 209 Responsible Lending Conduct (209.23 to 209.42).
Yes
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Task 2a —Develop complex broking options
You are required to prepare a full report for Tom and Steve by outlining the process and the risks
(potential and real) of which Tom and Steve should be aware.
In a suitable format, document the process that is required for them to purchase the two units as
their investment properties, establishing a joint loan in the brother’s names. You should also include
a selection of lenders that will consider this style of borrowing.
In developing your report you should cover the following:
1. The parties to the loan including any opportunities or constraints that could impact on their
application
2. The different options available and your recommendation of the best loan structure with the lender
— are they using their own property as cross security or the cash at bank as deposit?
3. What various forms of titles could an apartment be registered in
4. A list of the lenders that are able to lend
5. The procedure to commence a loan for a property like this
6. The steps that will need to be in place
7. The client responsibilities, so Tom and Steve fully understand the loan
8. An outline as to the process and what the client needs to arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract/purchase/offer and acceptance. If a Family trust
is involved what name the title of the property would be registered in, and advise what state you are
using to base your answer on
11. The state revenue requirements
12. Which lenders may also require a personal guarantee from Steve’s spouse?
13. The maximum LVR to the consumer
14. A summary of all fees and charges — including those for setup and those of the lender.
(800 words)
Client response to Task 2a
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Introduction.
Mortgage loans have gained popularity over the last 10 years (Barth).Application for a
mortgage loan can be a daunting process since it involves consideration of a number of
factors. These factors can be; bank statement showing the cash at bank, monthly
income, credit worthiness in relation to payment history and credit utilization and the
down payment. Many people nowadays default from paying their loans, Therefore, in
order for banks to accept mortgage loans, the applicant must have a good credit history
and be financially stable so that he can be meeting his or her monthly payments. This is
because financial institutions want to keep the risk of default at minimum.
In regard to Tom and Steve’s case, there are two parties that are involved in the issuing
of the mortgage loan. The Australian Aggregators will be the lender and will issue Tom
and Steve a mortgage loan at mark-up of 4.2% for residential flats and 5.7% for
commercial unit. Also the ABC general insurance will provide an insurance cover to the
lender should the investment fail to yield the expect returns. The fact that an insurance
company is involved, it provides a great opportunity for the two brothers since loans
that are covered by insurance companies are approved faster unlike loans which rely on
government securities and physical assets. The insurance can also provide a cover
through mortgage indemnity guarantee for the two investors for the lose that may occur
as a result of default payment. Therefore, the two brothers should utilize the
opportunity.
parties involved:-
Australian Aggregators:--It will provide residential and commercial loans at their
standard terms and conditions i.e. the mark-up for the residential flat is 4.2% and for the
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Commercial unit it is 5.7.
ABC General Insurance-This insurance company will help our clients in case the
commercial unit goes unbooked and in case the shortage of finance is faced with
Investment options to be used
There are many options available for the clients. However, the client will have to choose
the best alternative that suits his or her needs.The alternate options available for the
clients under study is the insurance scheme offered by ABC General Insurance and
XYZ Life. Further, it is assumed that the existing properties which the clients were
about to sell are proposed to be fixed with the surety bonds. Under mortgage policy of
CCF&MB the clients are being offered the capital amount on easy instalments.
Name of the apartment
It can be registered as: Steve Tom luxury apartments or Joy bringers Apartments
Lenders available
Residential lenders
Adelaide Bank Homeloans Limited Pepper Home Loans
AMP Homeside Phoenix-Circle Credit Union
ANZ ING Direct PLAN Lending
Australian Financial Keystart PN Bank
Australian First Mortgage La Trobe Resi
Bank of Melbourne Liberty Financial St George Bank
BankSA Macquarie Suncorp
Bankwest ME Bank The Rock Building Society
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Bluestone Mortgage Mart Westpac
Citibank NAB Wide Bay Australia Ltd
Commonwealth Bank Newcastle Permanent
Heritage Bank Peoples Choice Credit Union
i) Commercial lenders
Adelaide Bank Commercial Bibby Financial Services Pty Ltd Liberty Financial Commercial
ANZ Commercial Commonwealth Bank Commercial NAB Commercial
Australian First Mortgage Commercial IMB Commercial St George Commercial
Bank SA Commercial ING Direct Commercial Suncorp Commercial
Bankwest Business Banking LaTrobe Commercial Westpac Commercial
Adelaide Bank Commercial Macquarie Leasing Westpac Equipment Finance
ANZ Asset Finance Commonwealth Bank Asset Finance Liberty Asset Finance
processing the loan
1. Knowing your needs- Tom and Steve should first establish their business needs and convert
it to monetary terms. They should be able to tell the amount they require from their business
needs.
2. Understanding the types of loans available for them and choosing the best that suits them in
terms of costs that will be incurred, terms and conditions and payment period.
3. They will be needed to compare the offers from different lenders in the market. They should
keep in mind that their credit score will matter a lot as some lenders such as banks may not
approve their loans if their credit score is low (Bloomquist).
4. Determine if the lender is eligible so as to avoid fraudulent activities and legal complications
in the future.
5. Prepare the documents that are needed for loan application. These documents include
identity documents, and other documents for collateral and that which show their financial
position to be able to determine if they can payback the loan.
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6. They will also be needed to provide the business plan. This will help the lenders to know
how viable the business idea is and determine whether it can be able to pay back the
required loan amount.
7. Submit a personal credit report and annual tax returns to determine if they have other credit
responsibilities.
Steps to be followed
 Getting a licence to sell investment products.
 Getting approval from Financial Industry Regulatory Authority (FINRA) by
registering as a member.
 Registering with Securities Investor Protection Corporation (SIPC).
 Approval from the Securities and Exchange Commission (SEC)
Lenders that need personal guarantors.
i) XYZ Life
ii) ABC General Insurance
The maximum LVR to the consumer
The total price of both units amounts to $730,000/- however, the total cash maintained by both the
partners amounts in total to $ 420,000/.
Loan amount demanded $ 310,000
LVR =$310,000/420,000*100
Hence the LVR is 73.8%.
Fees and charges
Purchase Price= $730,000/-
Page 27 of 107

Body Corporate fee= $5,000/annumx7 years= $35,000/-
Mark-up @ 4.2% and 5.7%= $20,910/-
All fee and charges= $55,910 to be paid over the spam of 7 years.
Strata Company are the entities who are specialized in the field of property management which
are involved in day to day operations. It comprises of common areas, multiple units and common
facilities. It is the common ownership to apartment and building. However, in case of community, it
is a group of people who are having same characteristics and coming together to achieve a common
goal. Torren titles are the registration system of land, which is maintained by state. The method has
been able to revolutionize the method used in registering of land ownership.
Permanent rental property is different from that of occasional holiday rental. In case of
permanent rental, the rent agreement between the tenant and owner is prepared to assure that they
receive rent every month. However, in case of holiday rental, there is no agreement between the two
and rent is charged based upon the number people days and nights the particular individual have
stayed in the accommodation.
Joint tenants are totally different from tenants. Joint tenants are when two or more
individual, who do not belong to same family share their ownership. However, tenants are the one
individual or family in one building.
The three common facilities of credit facilities to meet the requirements of the client are
loan from bank, loan from the creditors, loan from the shareholders. The common method of loan
sanctioning is through bank loan as it is the safest way to get the finance at a fixed interest rates.
However, he can proceed with this method if he gets a guarantor who is able to fulfill the
requirement of getting the loan sanctioned from the bank. Moreover, if in case of urgent
requirement of finance, creditor is the best option as the process of loan sanctioning requires time.
Page 28 of 107

Assessor feedback: Resubmission required?
Your report should be address to your clients identifying the State or
Territory your clients reside and the State or Territory of the properties being
purchased. This is need as there are different legal requirements depending of
the were the properties are.
Your report should contain enough information for the clients to make an
informed decision and hopefully award you the mandate to arrange finance
on their behalf.
Carefully read the requirements of this Task and to assist you, but not
limited to:
 You need to provide one option of borrowing 100% of purchase price
and advise what the security will be and who will be party to the loan
 The other option can be using 20% deposit.
 You should explain the difference in the way Lenders will treat a
property that is subject to holiday lettings compared to a permanent
rental.
 What is the difference between strata, company, community and
torrens titles.
 What is the difference between joint tenants and tenants in common.
 Review up to three possible credit facilities that will meet your
clients needs.
 Make a recommendation as to which loan they should proceed with
and why.
 What interest rates and fees your recommended lenders for each
option will charge.
 Will Marie be required to go guarantor to the loan and if not why not.
 Make a recommendation as to which loan they should proceed with
and why.
 etc
Yes
Page 29 of 107

Task 3a — Implement complex loan structures
Tom and Steve have accepted your recommendations and have given you authority to proceed with
their application.
As part of implementing their loan application you are required to prepare a formal written loan
submission to the lender for pre-approval. Your loan submission must include the following:
• Serviceability calculations.
• The proposed structure of the loan given there are two brothers and there is a variance in income.
• The loan amount.
• The property style, size, use.
• Any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• Your obligations under the NCCP (if any).
• Maximum loan amount.
• Maximum loan terms.
• Any ATO consideration to be made.
• Your state legislation and OSR requirements.
• Your general advice restrictions.
• Property purchase requirements.
(800 words)
Note: Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
Client response to Task 3a
Formal Written Loan Submission to the Lender
Serviceability calculations:-
All fee and charges= $55,910 to be paid over the spam of 7 years.
Structure of the loan
$310,000+$55,910=$365,910/-
Page 30 of 107

To be recovered in 84 months @ $4,356/month
Mr. Tom Broad will deposit $2,163/month, and
Mr. Steve is required to deposit $2,193/month
total loan
$310,000/--
The loan amount is $310 and it will be used to purchase apartments for business purpose. This loan
will be repaid back in a total of 84months and a fixed interest rate will apply all along regrades the
changes in the economy and market forces. Tom and Steve will be required to deposit $2,163 and
$2,193 per month respectively.
structure
The loan that will be used for the purchase of property for business purpose, will involve two
borrowers. This loan will be secured through mortgage origination on the two brothers’ property so
that in case of default of payment instalments or any event that will make them unable to pay the
loan, the property will be seized to cater for the same. The lender of the loan is a commercial banks.
The loan documents will show; the interest that supposed to be paid, period the loan will take to
mature, the method that will be used in remitting monthly instalments and terms and conditions.in
case of default or fail to abide by the terms and conditions set for the loan, there will be a structured
process for the lender to get back value of his money.
Requirements of the loan.
Before lenders approve a loan request, there is a lot of information that they need disclosed to them
by the borrower. Any lender will need to assess the credit score of any borrower (Frame &Scott,
2006) These are the maximum requirements for the loan application;
1. Details of residence- the two brothers will be required to provide details of their area of
residence. They will give the address and also landlord names and their address if they live
Page 31 of 107

in rented apartments. This information will help the lender to physically locate them, in case
of any hazy issue.
2. Declare their assets. - The brothers will be needed to declare their assets that they both own
jointly and individually. They will also provide details of their bank statements over the past
six months so that the lender can be able to see their saving and asses their credit worthiness.
This will also help the lander to know if there will be any security for the money is about
offer.
3. Employment details. - Steve and Tom will be needed to provide information on the
employment status if employed they will provide name of employer and monthly incomes.
They will have to produce their payslip and records of past tax returns.
4. Detail on debt- they will have to provide details whether they owe anybody money and the
mount that is held as debts. Names of creditors will be included and their addresses.
5. Proper documentation. - In order for the loan request to be approve, there must be proper
documentation. This documentation will determine the ability of the borrower to pay the
loan (Demyanyk & Hemert).
NCCP Requirements.
NCCP defines the requirements and the obligations of each party before credit transactions take
place. In this obligations, the lender is supposed to;
1. Do through research about the borrower; know what he requires and his objectives.
2. Do research about the financial position of the borrower and gather enough prove that the
borrower can afford to pay back the loan. This will involve examining bank statements and
other income options.
3. Check around if the borrower has unpaid loans that he has not stated. Relying on credit
organisations’ information may give a false picture (Coval)
4. Examine the borrower’s assets and their living condition to ensure that the assets are not
Page 32 of 107

overvalued and the borrower too is not overrated.
obligations of the borrower will be;
1. Abide by the terms and conditions of the loan.
2. Financial obligation where by the borrower will pay the instalments monthly until the loan is
repaid.
3. Disclose all the information that the lender needs to see his financial position.
4. Use the money for the purpose it was intended.
5. Provide financial assistance to the borrower.
Legislation and purchase process.
1. Investment catalogue – after going through the investment catalogue, you will make select
the preferred apartment or project.
2. Payment of booking fee as you do more research on the property and consult on method of
payment.
3. Actual payment – this will define all terms related to apartment such as interest rate,
instalments to be paid and payment period.
4. Offer letter- this will show the purchase price and terms and conditions.
5. Provision of legal documents. - This documents will be used by lawyers as prove of
purchase and registration of title deed.
6. Registration of the acquired title deed.- after all transaction have taken place and all
necessary payments have made, the title did is registers in the name of the buyers.
7. Issuing of the new title deed.
Formal Loan Application Letter
Page 33 of 107

Name of borrower: Tom Broad and Steve Broad
Address:
Tom: Unit 12, 22 Wentworth Lane, Highville,
Steve: 23 Dury Lane Pennant Tops
Phone:
Tom: 9001 2121
Steve: 9002 1212
This letter is a formal loan request presenting to you to have your formal approval by
sanctioning the loan amount.
Purpose of Loan
The main purpose of our requested loan is to acquire business apartments situated in
Seaside Lane, Coastville for our property business.
Loan amount
We need maximum loan of $310,000 for building purchase, it will be a commercial
property, each one is expected to generate a rental income of $450 per week for Tom and yearly
income of $45,000 to Steve.
Funding position:
The requested loan will be the joint responsibility of us, currently, Tom earns an annual
income of $85,000 and Steve get annual income of $65,000. Tom works in a PAYG scheme and
working with the same employer since last 10 years whereas Steve is a self-employed sole trader
since 12 years. We are financially capable to fulfill our loan commitments timely and have a net
worth of $650,000 and $450,000.
Security:
We are ready to mortgage any of our assets or properties to secure the requested loan
amount, so that, in case of any financial trouble, property can be seize to meet our loan
commitments.
Property owned:
Tom Broad Steve Broad
Cash at bank $250,000 $150,000
Superannuation $150,000 $150,000
Page 34 of 107

fund
Content insurance $100,000 $130,000
Motor vehicle $60,000 $30,000
Total $560,000 $460,000
Borrowing history:
Currently, Tom and Steve owned a term home loan of $300,000 and $100,000 @ 7.2%
interest rate for 25 years. Besides this, Tom has a credit card which limit is $5000 and cleared per
month at 3% minimum payment whereas Steve has a credit card limit of $15,000, which is clear by
paying $5000 debt at 3% min. payment, we always pay our borrowings timely.
Loan term and repayment structure
Yes, we need long-term debt worth $310,000 for a time span of 7 years, total of 84 months
at a fixed rate of interest regardless any economic force. Tom and Steve will repay loan amount
inclusive legal fees and charges worth $365,910 at fixed monthly installment payment of $2163 and
$2193 along with chargeable interest.
Serviceability calculation:
1. Loan amount: $310,000
2. All fees and charges: $55,910
3. Total: $365,910
4. Loan recovery period: 84 months
5. Fixed monthly installment: $365,910/84 months = $4,356/month
6. Expected payment by Tom: $2,163/month
7. Expected payment by Steve: $2,193/month
Obligations under NCCP:
 Assessing financial position to know their debt payment ability
 Examining their current assets, liabilities and net worth
 Credit position
 Contacting other banks to know their credit and to assess that whether loan commitments are
successfully meet out or not
 Verifying all the documents submitted for loan by independent examiner
Borrower’s obligation
Page 35 of 107

 Payment of loan liability as per repayment schedule
 Submitting needed information to the lender
 Supplying all the materialistic information to the lender without any manipulation
 Present financial statements to the bank
 Bank statements
We both like to have your kind approval for the loan application submitted and we assure
the authenticity and accuracy of the statements and information submitted.
Page 36 of 107

Assessor feedback: Resubmission required?
This Task is foremost and academic exercise to demonstrate to the Assessor that you can apply
the knowledge you have learnt and as such, you were asked to prepare a formal written loan
submission to the Lender, that you will recommend in Task 2a.
At this stage you have not provided sufficient detail/explanation for a lender to enable them to
assess the submission for pre-approval of finance. A lot more detail is required, such as but not
limited to:
 serviceability calculations
• the proposed structure of the loan given there are two brothers and there is a variance
in income
• the loan amount
• the property style, size, use
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• your general advice restrictions
• property purchase requirements.
To assist you a Standard written application is laid out as follows (and should contain all the
information required as detailed above):
 Borrowers
 Address
 Phone, Fax, email, mobile, date of birth, licence number
 Purpose of Loan
 Amount
 Funding Position
 Security (including guarantors if applicable)
 Detailed description of each property
 Borrowers background and history
 Loan Term and Repayment Structure
 Servicing Calculations
 Recommendation
 Attachments
Refer to Topic 1.2, section 15 (Completion then Loan Application) and section 17
(Commercial Finance Application).
Yes
Page 37 of 107

Case study B — Ray Murdoch and Steve Brown
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Background
You have just met with Ray Murdoch and Steve Brown, referred to you by another commercial
client.
Ray Murdoch and Steve Brown jointly own a successful and growing business that manufactures
metal pallets. They trade under the name Pallets-R-Us Pty Ltd. The pallets are manufactured using
material that is lightweight and durable. There has also been a very structured approach to the
research and development for the engineering and design of the pallets. The pallets are used in all
industry sectors. Part of the process involves powder coating the finished product, which is
currently outsourced to a local well-established contractor.
It is critical that Ray and Steve’s product meets market needs. They need to maintain sustainable
production and operating costs if they are to forecast their sales and cost of sales.
They have a well-established client database that provides them with repeat ‘business to business’
dealings. Whilst they have only been trading for 26 months they have a solid business plan with
written supply contracts with three major business clients and several smaller business clients.
Ray and Steve now require a loan to assist them with the purchase of a sophisticated machine, using
the technical platform system CNC. This machine can be programmed to rapidly fabricate multiple
components. The machine has an expected commercial lifespan of at least 15 years with operating
software to be updated every three years. This software and upgrades is included in the purchase
price of $800,000.They need to import the machine from the US. Initial enquiries with the US
supplier have indicated that they will require a letter of credit for the import of the machine.
Their business employs five people and, with the expected increase in business through the
automation of production, they have forecast that they will need to recruit an additional two staff
members in the next 3–6 months to meet sales/production demands.
Steve has been in the metal fabrication field all his working life. He has an MBA and understands
financial management. He also has solid engineering skills and developed the majority of the design
works for the business. He is married and has no dependants. His wife is a school teacher and she
will be retiring at the end of the year.
Page 38 of 107

Ray worked with Steve at ‘Protech’ as a foreman. His skills are in production and managing
project/job flow. He has high level technical skills and can complete works to specification at a high
standard. Ray is divorced.
Steve and Ray have provided the last two year’s financial accounts for the trading business, as well
as interim accounts for the current financial year.
Page 39 of 107

Applicant information
Client Ray Murdoch Steve Brown
Current address: Unit 43, 25 High St Northville, <Your State> and
has lived there for six years
23 Desmond Lane Northville, <Your State> and has lived
there with Kate for seven years. They own property jointly.
Value $750,000 $900,000
Home phone: [phone] 1212
Status Ray is divorced with no dependent age children Steve is married with no dependents
Employment Self-employed business owner Self-employed business owner
Income $100,000 per annum $100,000
Property $750,000 $900,000
Cash at bank $12,500 $9,600
Contents $100,000 $85,000
Superannuation $250,000 Steve $350,000, Kate $60,000
Motor vehicle $40,000 $55,000
Home loan $250,000 @7.2% P & I Term 18 years $350,000 @7.2% P & I Term 22 years
Credit card $25,000 limit with debt of $15,000 payment @3% $10,000 limit with debt of $3,000 payment @3%
Car loan $0 $15,000 payment @ 9% payable 4 years
The business
Year 1 net profit after tax $200,000
Year 2 net profit after tax $220,000
Current year interim profit (10 months trading) $200,000
Wages to partner 1 – years 1 and 2 $100,000
Wages to partner 2 – years 1 and 2 $100,000
Dividend to private investor (flat profit fee) – years 1 and 2 $45,000
Key balance sheet items
Cash $25,000
Debtors $220,000
Creditors $100,000
Notes The business currently meets all creditor payments at 30-day terms.
Debtor collection has been solid. They invoice an upfront payment of 50% of the sale price, which assists in
funding their production.
They have orders of $1m over the next 3 months and have made an increase in their gross profit margin.
The orders are from several clients, so their debtors will be well spread.
Page 40 of 107

Task 1b — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Ray and Steve about the proposed transaction.
Calculate the required servicing for the new debt, and the lender comfort surplus.
Outline the process and the risks (potential and real) of which Steve and Ray should be aware.
(800 words)
Client response to Task 1b
Answer here
Assessor feedback: Resubmission required?
Page 41 of 107

Task 2b —Develop complex broking options
You are required to prepare a full report for Ray and Steve by outlining the process and the risks
(potential and real) of which Ray and Steve should be aware.
In a suitable format, document the process that is required for Steve and Ray to obtain appropriate
finance for their equipment and set up the loan.
In developing your report you should cover the following:
1. The parties to the loan
2. The product type you would recommend, including an appropriate term, interest rate and residual
(if any)
3. The framework and contents of the letter of credit requirements
4. A list of the lenders that are able to lend
5. The procedure to commence a loan
6. The steps that will need to be in place
7. The client responsibilities, so Steve and Ray fully understand the loan
8. An outline as to the process and what the client needs to arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract to purchase
11. A statement of those lenders who may also require a personal guarantee from the borrower’s
spouse
12. A summary of all fees and charges — including those for setup and those of the lender.
(800 words)
Client response to Task 2b
Answer here
Assessor feedback: Resubmission required?
Page 42 of 107

Task 3b — Implement complex loan structures
Ray and Steve have accepted your recommendations and have given you authority to proceed with
their application.
As part of implementing their loan application you are required to prepare a formal written loan
submission to the lender for pre-approval. Your loan submission must include the following:
• serviceability calculations, including all borrowing facilities of Directors
• the proposed structure of the loan
• the loan amount
• the property style, size, use
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• your general advice restrictions
(800 words)
Note: Any assumptions you make should be listed, and not be in conflict with the case study
information already provided.
Client response to Task 3b
Answer here
Assessor feedback: Resubmission required?
Page 43 of 107

Case Study C — Bill Smith and John Jones
Only complete Tasks 1–3 for one (1) of the case studies in Section 1
Background
You are meeting with prospective clients, Bill Smith and John Jones. They have been referred to
you by their accounting firm, Buckland Accountants.
The prospective clients need assistance with the acquisition of owner-occupied premises to replace
their current business premises which is rented and becoming too small for their growing business.
True Blue Pty Ltd trades as True Blue Real Estate and was purchased as an existing real estate
business three years ago. Bill Smith and John Jones are the directors.
The shareholders of True Blue Pty Ltd are Bill Smith, John Jones and a private investor, Amanda
Williams, who does not work in the business and has no involvement in its day-to-day operation.
Each holds an equal one-third share in the company.
Bill and John have each been in real estate for approximately 15 years, focusing on residential sales
and leasing. They have gained their work experience in the local area. A wealth of knowledge of the
area, coupled with an ever-expanding client base, has resulted in sustained and solid growth for the
business.
Details of the property
Sale price of the property is $950,000. (There is no GST requirement as it is being purchased as a
going concern.)
A deposit of $95,000 has been paid and is being held in the trust account of the settlement
agent/solicitor.
A cash contribution of $233,240 will be made from the general working account of the business.
Property purchase and loan to be in the name of a new entity — True Blue Pty Ltd as trustees for
the Smith Jones Unit Trust. There are a total of 99 units in the trust and the unit holdings mirror the
shareholding of the trading entity, True Blue Pty Ltd.
The property is situated at 100 Smith St, Yourtown, with contracts exchanged at today’s date and an
anticipated settlement date of 90 days.
Page 44 of 107

General observations about the property
The property is in good condition and is well located in the same street as the current rental
premises.
It is anticipated that the premises will meet the needs of the business for the next 10 years.
Page 45 of 107

Summary of initial client fact find
Bill and John have provided the last two years’ financial accounts for the trading business, as well
as interim accounts for 10 months of the current financial year.
True Blue Real Estate’s financial accounts
Year 1 Year 2
Net profit after tax $92,000 $140,060
Current year projected - $175,000
Add back (rent) $47,000 $49,142
Additional superannuation to director $31,400 $34,539
Wages to partner one $70,640 $70,640
Wages to partner two $70,640 $70,640
Payment to private investor (fixed flat profit fee) $45,000 $45,000
Applicant information — Bill Smith
Personal details
Address 26 Nowry Road, Yourtown, 1234
Date of birth 17 February 1958
Phone [phone]
Financial details
Gross income $70,640
Owner occupied property valued at $550,000
Outstanding debt on owner-occupied property $210,000 @ 6.2% p.a. on a principal and interest basis
Credit card with limit $15,000 Outstanding debt — $5,000
Superannuation $250,000
Motor vehicle valued at $30,000 (nil debt)
Page 46 of 107

Applicant information — John Jones
Personal details
Address 14 Mary Street, Yourtown, 1234
Date of birth 14 October 1970
Phone [phone]
Financial details
Gross income $70,640
Owner occupied property valued at $750,000
Outstanding debt on owner occupied property $300,000 @ 7.2% p.a. on a principal and interest basis
Credit card with limit $5,000 Outstanding debt — $1,000 cleared monthly, monthly
Superannuation $200,000
Motor vehicle valued at $45,000
Outstanding debt on motor vehicle $15,000 (Assume five year term at 9% p.a. interest)
Business details
Cash in business account $400,000
Other information
Applicants’ solicitor Moffat and Co (contact is Maree Moffat)
16 Tatlor Street, Yourtown, 1234
Phone [phone]
Applicants’ accountant and registered office Buckland Accountants (contact is Simon Williams)
28 Mary Street, Yourtown, 1234
Phone [phone]
Applicants’ banker Westcoal Building Society, Yourtown, 1234
Notes:
• Assume for credit card debts, the minimum monthly commitment should be calculated at 3% of the
credit limit.
• Each of the working directors has appropriate death, income and disability insurance in place.
• A sensitisation factor of 2% should be used when calculating financial commitments.
Page 47 of 107

Project tasks (client to complete)
Task 1c — Identify the clients’ complex broking needs
Prepare a list of questions that you would need to ask Bill and John about their history, experience,
business performance and the property purchase.
In preparing your list of questions you should ensure that you cover the following:
• The complex features of Bill’s and John’s situation and objectives.
• Potential risks and Bill’s and John’s tolerance of risk. In considering risk you should consider:
– How you would identify the risks and the criteria you used to evaluate these risks
– How you would assess their current exposure, the tools you would use in terms of probability,
impact and the consequences.
(800 words)
Client response to Task 1c
Answer here
Assessor feedback: Resubmission required?
Page 48 of 107

Task 2c — Prepare complex broking options
You are required to prepare a full report for Bill and John by outlining the process and the risks
(potential and real) of which Bill and John should be aware.
In a suitable format, document the process that is required for them purchase the new property and
establishing the loan.
In developing your report you should cover the following:
1. The parties to the loan
2. The best physical set up with the lender — are they using their own property as cross security or
the investment property?
3. What name should the title be registered in given there is a Trust involved and advise what state
you are basing your answer in
4. The procedure to commence a loan for a property like this
5. The steps that will need to be in place
6. The client responsibilities (Bill and John should fully understand the loan that is proposed)
7. An outline as to the lending process and what the client needs to arrange
8. The documentation needed to commence the borrowing
9. The name in which the client will sign the contract to purchase
10. The state revenue requirements
11. A statement as to whether guarantees from spouse’s or any other security will be required and why
this is/is not the case
12. The maximum LVR
13. Suggest three (3) lenders to client’s that would be likely to consider this request
14. A summary of fees and charges — including those for setup and those of the lender.
Note: You may make any reasonable assumptions necessary in order to complete the proposal.
(800 words)
Client response to Task 2c
Answer here
Page 49 of 107

Assessor feedback: Resubmission required?
Page 50 of 107

Task 3c — Implement complex loan structures
Bill and John have accepted your recommendations and have given you authority to proceed with
their application.
As part of implementing their loan application you are required to prepare a formal written loan
submission to the lender for pre-approval. Your loan submission must include the following:
• serviceability calculations
• the proposed structure of the loan given the purchases is in the name of a new Unit Trust entity
• the loan amount
• the property style, size, use
• proposed security
• any other information that is relevant to the lenders requirements.
In additional to these requirements you should also include:
• your obligations under the NCCP (if any)
• maximum loan amount
• maximum loan terms
• any ATO consideration to be made
• your state legislation and OSR requirements
• restrictions on overseas purchase, if any
• your general advice restrictions
• property purchase requirements.
Notes:
• Any assumptions you make should be listed, and not be in conflict with the case study information
already provided.
• You will need to calculate and include your workings of the required servicing and debt service cover
ratio for the new debt and existing borrowings of Directors. Comment on the DSCR comfort level for
lender.
• You may make any reasonable assumptions necessary in order to complete the proposal.
Client response to Task 3c
Answer here
Page 51 of 107

Assessor feedback: Resubmission required?
Page 52 of 107

Page 53 of 107

Page 54 of 107

Section 2: Business management skills
Task 4 — Developing and nurturing relationships with clients,
other professionals and third party referrers
George and Mildred now require you to write a plan to assist in developing and nurturing
relationships with clients, other professionals and third party referrers.
Your plan should address the following:
1. How CCF & MB’s policies and procedures and legislative, regulatory and professional codes of practice
impact on developing and nurturing relationships
2. How you would use CCF & MB’s social, business and ethical standards to develop and maintain positive
relationships
3. The importance of confidentiality and how you would maintain it in your dealings with colleagues,
clients and other parties
4. How you would adjust your Interpersonal style to the needs and situation of other parties
5. How you would go about developing and maintaining business and professional networks and other
relationships to benefit the organisation, and how you would use them to identify and cultivate
relationships in order to promote and market the organisation
6. How you could use and cooperate with other professionals and third parties to expand and enhance the
reputation of the organisation, and to identify new and improved business practices
7. How you would build referral business through appropriate communication channels to find and secure
new business relationships
8. How you would identify referral needs and provide information p about CCF & MB’s relevant products
and services
9. How you would secure interviews with referral business so that then needs of clients can be met.
(1,000 words)
You may use any format for your plan but it must address each of the points above. If you are
unsure as to how to write a plan, you can refer to the Business Growth and Marketing topic and use
the suggested SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the
information provided in the background information.
Client response to Task 4
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Impact of CCF &MB’s policies and procedures and legislative, regulatory and
professional codes of practice and developing and nurturing relationships.
ELEMENT PERFORMANCE CRITERIA
1. Professional codes of
practice on
developing and
nurturing
relationships.
1.1. All workers are expected to observe maximum
etiquette whilst at work. This includes physical
appearance and relating with clients. Habits like
divided attention should be avoided as they create a
bad impression to the clients and it is against the
organisation’s regulations and professional behaviour.
1.2. In order to uphold and enhance the reputation of the
organisation, all dealings should be carried out with
equality honesty and integrity.
1.3. All aspects of the clients should be handled
confidentially and relationship with other parties
concerning the matters of the organization should be
approached formally.
1.4.The way the workers intract with clients should
portray the true values of the company. Their
behaviour should show exemplary personality.
2. Creating and
maintaining
constructive business
relationships.
2.1. For an organization to achieve a reputable brand
name, it should ensure that there still exist amicable
relationships between the organization and then
involved parties.
2.2. The organisation should be able to identify the
common goals and values that exist between other
parties in the business and ensure that they are given
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ELEMENT PERFORMANCE CRITERIA
priority.
2.3. Seek reliable referrals or meaningful connections
that will help the organization gain in the near
future .Other professionals and third parties are
consulted on ways that can be used to enhance the
reputation of the organisation.
3. Improve
relationships by
building on referral
business for the long
term engagement
3.1. Seeking for referrals is the most reliable business
development strategy an organization can engage in.
Therefore the organization should offer exemplary
services that will ensure customer satisfaction. The
satisfied customers will not only be more than willing
to provide referrals to the business but also avail
themselves for long term business interaction.
3.2. Give priority to the needs of the refereed customers;
provide all the necessary information that they may
need. This will establish customer loyalty and build a
strong bond.
3.3. Build a great customer base and actively seek for
referrals since they can give a major boost to a
flourishing business or improve the revenue of the
organisation.
Building positive relationship
Emphasis on integrity and honesty.
Integrity and honesty are virtues that are associated with good behaviour in any profession. In any
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organisation, these virtues come first as they not only help the organisation to stick to its vision but
also serve the interests of the customers. Honesty means that workers present information to
customers the way it is, they don’t deceive customers so as to make sale or achieve an objective.
Integrity in the other hand means being principles and doing what is supposed to be done either
morally or in relation the organisation’s rules and regulations. In order to develop and maintain
positive relationships, the ethical standards of the organisation should be improved. This can only
be achieved through honesty and integrity. By so doing, customers will develop trust which will
consequently lead to long term engagement.
Respect and concern for other
The respect for human dignity should still stand. Equality and interests of all the clients should be
taken into consideration and catered for. Help should be provided to those who need it without any
form of discrimination .when you care for others, there will be no conflict of interest.
Accountability and commitment to excellence
Workers should perform their duties effectively so as to ensure customer satisfaction. Ethical
standards, call for person responsibility in case the action of a worker has a negative impact to the
organisation or the client.
Abiding by the law
For the reputation of the company to grow and the business and
ethical standard to develop, the organisation must abide by the law.
All the products offered and services should be relevant o the law.
Importance of confidentiality and how you can maintain it
Confidentiality means limiting access of personal information from unauthorized people. Any
organisation should keep the client’s information from anybody in the work place. This is because if
the personal information is made accessible to everybody, some interests of individuals will be
compromised thus the organisation may end up losing key customers due to lack of dignity.
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Importance of confidentiality
 It builds trust between the organisation and the client thus the organisation will be able to
get any information it will deem useful from the client.
 Confidentiality will lock any loophole for fraudulent activities in an organisation. Some
disgruntled employees can get such information and use it to commit illegalities that will
lead to further loss to the organisation.
 Most customers demand that their information be private and confidential, failure to abide
by their request will lead to loss of customers.
How to maintain confidentiality.
 Information saved electronically should be encrypted and made accessible by use of
passwords.
 Confidential documents should be locked up in a room only accessible to the
authorized workers.
 Workers should not discuss confidential matters in public areas or send crucial
information via emails as they can be hacked.
 All computers that have confidential information should be handled with caution.
 Marking all the information all documents as confidential.
.
How you would adjust your Interpersonal style to the needs and situation of other parties
Human behavior is governed by different interpersonal styles. The styles that dominate in the
human behavior are; dominance, influence, steadiness and conscientious. In an organization,
people have different interpersonal styles. One may be very good in a certain field but be very
unreliable in the other. In this situation, interpersonal styles can be achieved by encouraging team
work and making people realize the importance of each other; This will make them be more
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accommodative to each other.
Reputation of the organization
An organisation cannot grow by itself without relying on other parties. For an organisation to
flourish, it must depend on other parties such as client, other businesses, suppliers, the government
and investors. A reputable organisation can be achieved through;
 Providing quality services and goods to the client’s contention.
 Paying suppliers in time to avoid high debts that can scare away investors.
 Paying taxes as stipulated in the law.
 Paying employees their wages and other benefits on time.
 Paying dividends on time and fairly.
Securing business relationships
 Use face to face communication to be able to counter objections raised by new clients.
 Give after sale services and make follow-ups to ensure that the customer continues to enjoy
the product.
 Engage in other social economic activities that are intended to benefit the community at
large.
 Give customers new updates concerning products and the policies of the organisation.
 Be part of their lives by engaging yourself in non business activities such as wishing them a
happy birthday, happy new year or happy anniversary.
Interviewing referrals
 Identify yourself with their social activities such as sponsoring games or engaging in
communal activities.
 Use the right people to secure interviews of referrals. It will be easy for a person who
referred you to organise an interview for you with the new client.
 Conduct information interviews. The company may schedule meeting that are meant to
disseminate information to the clients, the organisation can then use this chance to advertise
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their new products and also seek for new clients.
Assessor feedback: Resubmission required?
You have demonstrated that you are competent regarding this Task. No
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Task 5 — Growing the business
Having considered how you would go about building and nurturing relationships, George and
Mildred now require you to turn your attention to marketing and promoting CCF & MB’s business.
This requires you to develop a marketing plan for the business.
In developing your marketing plan you should consider the following:
1. Your plan should be developed in line with CCF & MB’s vision statement
2. The identification of target markets using a combination of research and your own personal experience
3. The identification of your major competitors (at least two) with a competitor analysis developed for
each competitor
4. The identification of CCF & MB’s market position based on your research findings and analysis
s5. How you would promote CCF & MB’s brand and the tools you would use to achieve this
6. The provision of options for increasing yield per existing client
7. How you would implement your plan and monitor it to ensure objectives/goals/performance indicators
are being met
8. How you would adjust your plan if required.
(1,000 words)
You may use any format for your plan but it must address each of the points above. If you are
unsure as to how to write a plan, you can refer to the Business Growth and Marketing topic and use
the suggested SMEAC format outlined in Part 5, Section 12.
When completing this task, assumptions are permitted although they must not be in conflict with the
information provided in the background information.
Client response to Task 5
Develop a marketing plan for the business
Executive summary
CCF and MB is a mortgage and finance broking company owned by George and Mildred Spencer.
It was established 13 years ago to offer a range of mortgage and finance broking services. Since
then, it has availed a zillion of programs and lenders to the clients which have lead to its faster
growth. This marketing plan focuses on marketing strategy of the company, target market,
competitive analysis, promotion plan and the implementation process.
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Marketing strategy
CCF and MB company‘s major goal is to expand the business and build strong bonds with other
clients for long term engagement. This will help it to achieve its vision of being the mortgage of
finance broker of choice in the greater metropolitan. In order to achieve this, the company will first
utilize the available opportunities of capitalizing on establishing credible alliances with the
available partners such as agents, accountants, legal firms who will in turn give reliable referrals.
The company also will consider applying e-commerce where it will introduce its services in online
platforms. Social media will help the company to reach many people and get new
opportunities .This will not only help the company to reach new market segment but also build the
brand name of the company.
Mission statement
The company mission is to operate professionally in accordance with the law, its licence and
enhance accountability. This is what the company ought to achieve in the near future and it lays the
foundation for other action plans.
Target market
Since CCF and MB company is committed to offer quality services, it has applied differentiation
strategy whereby it has introduced specialized services that meet different needs of clients. The
ability to tailor its services to suit different needs has translated to increased revenue as many clients
prefer it over other companies. The company’s target audience consists of; employees who are
willing to own homes but it will take them quite some time and investors who need to invest in real
estate business. The target market is metropolitan area.
Competitive analysis
Recently, mortgage business has gained popularity due to change of peoples; attitudes and
perception regarding to this kind of investment. Many investors have identified this opportunity and
are heavily investing. As a result, there is a stiff competition between mortgage brokers and lenders
of mortgage loans. Mortgage brokers do not have fixed clients like mortgage banks. Despite this
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stiff competition, mortgage brokers have a competitive advantage since they offer many options or
programs available for their clients. They can also choose the lender who best fits the client.
Unique selling prepositions.
Unlike other organisation which provide services similar to CCF and MB company, the company‘s
way of operation is unique. This company has mobile agents who can serve customers from their
comfort zone without necessarily visiting the premises of the company. This gives it an upper hand
considering that there are many employees and investors who have very tight schedules.
Promotional plan
The company’s promotion plan will be
 Establishing a reputable brand name through maintaining professionalism, being
trustworthy, offering quality services and being a market leader.
 Making use of social medial platforms for intensive advertising and establishing a customer
base.
 Building successful relationships from the referrals by meeting them face to face, analysing
their situation then meeting their needs.
 Conducting face to face talks so as to be able to gather information on client needs and
handle objections and give room for suggestions.
Market plan
The success of a market plan can be tracked from its successful implementation. (Melo
&Martha ,1996)After coming up with a market plan, CCF and MB should follow the following
steps in order to successfully implement it.
1. The company will outline its expectations after a given period of time. The results obtained
will be compared with the expected results and if the expectations are not met, new changes
will be done.
2. Provide enough resources needed in the implementation including enough personnel. This
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will be in terms of money, time and human resource. The personnel should be highly skilled
and experienced.
3. Let everybody in the organization and the marketing team understands the plan and what is
expected of them.
4. Have an action list and the time frame when it is supposed to take place.
5. Have measurement criteria for tracking the success achieved so far.
6. Compare results with set expectations periodically.
7. Adopt any changes that may occur in the process willingly. In the implementation process,
there may be changes in the market forces that will call for changes in strategies used. High
flexibility is required so as to willingly accept any changes that come by.
8. Let the organization know what has been achieved and celebrate. The eventual results
should be communicated to the employees and motivational activities carried out.
Assessor feedback: Resubmission required?
Would have liked to see a bit more analysis and detail but you have
demonstrated that you are competent in regards to this Task.
No
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Task 6 — Identifying risk and applying risk management processes
George and Mildred have become very concerned about the potential risks that could jeopardise
CCF & MB’s business operations. They were very impressed with your growth and marketing plans
for CCF & MB so they have now moved you into more of a general manager’s role with expanded
responsibilities, including managing CCF & MB’s risk. As part of your new responsibilities you are
required to develop a risk management plan.
In producing this plan you are required to:
1. Establish the context for CCF & MB’s risk management plan
2. List and explain the tools you will use in assessing the risks you identify
3. Identify the stakeholders you would consult in establishing context and the tools you would use in
identifying CCF & MB’s risks
4. Identify at least two risks that CCF & MB could face for each of the six categories of business risk
including strategic risks, compliance risks, financial risk, operational risks, market and environmental
risks and reputational risks with an appropriate risk statement for each identified risk
5. Conduct a risk analysis and risk evaluation for the risks you have identified
6. Identify treatments for them
7. How you will monitor and review them in your risk management plan.
When you are defining the risk criteria you intend to use you are required to create your own risk
matrix to address likelihood and consequence.
Document your risk treatment plan using a risk register.
You may make any assumptions in producing your plan but these should be documented either in
the body of your plan or separately before you produce it.
(1,000 words)
Client response to Task 6
CCF & MB’s Risk management plan
Context for CCF & MB’s risk management plan
Even though the company is determined to achieve its objectives in the near future, it faces risk that
can hinder the achievement of these objectives. This risk can be divided in two groups namely;
1. External risks- These are risks arising from the environment in which the company operates
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and it has no control over the risks. This can be regulatory risks and market forces which are
influenced by the economic conditions. Other external risks that CCF & MB face are;
culture, political stability, competition and legislative risks.
2. Internal risks. - These are risks that emanate from the organization as a result of decisions
taken by the management. The organization has control over such kind of risks and can
easily be mitigated by application of effective mechanisms.
Mitigation of the above the above risks will be considered by CCF & MB’s risk
management. When coming up with the mitigations, the external and internal stake holders
will also be considered.
Tool used in assessing the risks.
In order to assess the vulnerability of this risks, CCF & MB will use
 Risk matrix- this will help to identify risks in order of their priority. The risks with adverse
impact will be mitigated first.
 Probability methods in order to determine the cost analysis and likely hood of the risk to
take place.
 Program risk management that will also help to give priority the risks and also reduce the
effect of the risks to the organization.
 Analyzing the threat of the risks to the organization.
 Investment risk management which also gives other options available for investment so as to
avoid the risk.
Stake holder to be consulted in establishing tools
When coming up with tools that will help in the risk management process, CCF& MB will take into
consideration the view and position of other stakeholders. This will ensure there will be no conflict
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of interest in carrying out the activities of the organization. The stakeholders that will be consulted
include external and internal stakeholders. They are;
 Employees of the organization.
 Investors
 Lenders.
 Suppliers.
 Law firms.
 Regulatory bodies.
Risks that CCF & MB would face.
1. Strategic risks-
a. Less profit than expected caused by uncertainties – this can be as result of
change in competitive strategies.
b. Change in technology – change in technology will adversely affect the way
the company relates to its clients since it may take quite some time to adopt
the new technology
2. Financial risks-
a. Interest rate risk-change in interest rates c will make people to change tastes
preferences and opt for cheaper options.
b. Credit risk- the company may have unpaid debts which are very high.
3. Operational risk-
a. Political risk- the company can face this risk if there is political instability.
This will affect the normal operation of the company.
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b. Legal risk- there maybe change of laws or amendments of laws that will also
affect the way the company operates with its clients.
4. Market risk
a. Equity risk- associated with buying of stocks by the company.
b. currency risk- depreciation of the value of the currency can be a great risk
since it reflects the economic condition
5. compliance risk
a. Environmental risk- the company fail to comply with the requirement of
protecting the environment.
b. Corruption risks- employees engaging in unethical acts
6. Reputational risks
a. Loss of profit- when the reputation of the company is spoiled, it risks losing
revenue.
b. Increased operating capital- damage of reputation may call for additional
costs in conducting adverts.
Risk analysis and evaluation
RISK IDENTIFICATION RISK ASSESSMENT
EVENT CAUSE CONSEQUE
NCES
LIKELIH
OOD
CONSEQU
ENCE
RATING
Less profits
generated
Change of
strategies in
the market.
Poor cash
flow
LIKELY MAJOR HIGH
Change in
technology
Innovation Change of
mode of
relationships
LIKELY MAJOR HIGH
Change in
interest
rates
Economical
changes
Change in
tastes and
preferences of
LIKELY MAJOR MEDIUM
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clients
High credit
risk
Too much
lending
Poor cash
flow
UNLIKEL
Y
MINOR LOW
Political
status
Political
instability
loss of
revenue
UNLIKE
LY
MAJOR LOW
Legal
requiremen
ts
Change of
laws
Change of
operation
UNLIKE
LY
MINOR LOW
Equity risk Buying of
excess stock
Poor cash
flow
UNLIKE
LY
MINOR LOW
Currency
depreciatio
n
Poor
economy
Decrease in
profits
UNLIKE
LY
MINOR LOW
Environme
ntal risk
Non
compliance
to
environment
al law.
High cost due
to fines
UNLIKE
LY
MINOR LOW
Corruption
risks
Lack of
ethical
standards
Damage
reputation
Likely MEDIUM HIGH
Loss of
profit
Poor
reputation
High costs in
adverts
LIKELY MAJOR HIGH
TREATMENTS AND MONITRONG THE RISKS
Risk
identification
Action
plan
Monitoring
Financial risks REDUCE Reduce the amount of credits given
Reduce the effect of change in interest rates
Compliance
risks
AVOID Avoid acts that show non compliance to the state
rules and regulations
Strategic rislks REDUCE Reduce actions that can led to generation of less
profit.
Reputation risks AVOID Avid being biased.
Avoid offering services of poor quality
Market risk AVOID Avid acts that can led to unfair competition in
the market.
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Operational risk AVOID Avoid issues related to non compliance to the to
the law
Monitoring and reviewing
These risks will be monitored and the progress of each plan compared to the set targets. This will
happen periodically and there will be people in charge of each action plan.
Financial risks will be reviewed on monthly basis since they directly affect the revenue of the
organization.
Compliance risks will be reviewed quarterly and changes in regulation and rules communicated and
incorporated in the company’s program.
Reputation risks will also be reviewed quarterly to determine if the reputation is deteriorating or
appreciating.
Market risks will be reviewed on a monthly basis in order to remain at bar with the competition
posed by others. Operational risks will be reviewed on a monthly basis to determine if the activities
that are carried out by the organization are in line with the objectives and will help it to achieve the
set goals. After reviewing the process and comparing it with the set targets, the company will be to
determine if it was successful.
Assessor feedback: Resubmission required?
You have demonstrated that you are competent regarding this Task. No
Page 71 of 107

Task 7— Improving the business
Over the last few months business for CCF & MB has been very good with a number of new clients
coming on board as a result of implementing your business growth and marketing plans. However
neither you or the business owners are satisfied with maintaining the status quo; as you and they are
committed to a program of continuous improvement.
You all feel that CCF & MB’s competitive advantage needs to be strengthened and a SWOT should
be undertaken to establish CCF & MB’s strengths and weaknesses including benchmarking the
business against the industry. You now decide that you will carry out a diagnosis of the business
including a SWOT analysis and a benchmarking exercise to improve CCF &MB’s competitive
advantage and its business. You are to produce a document covering your diagnosis which will be
distributed amongst CCF & MB’s key personnel.
As a minimum your document should cover the following:
1. The data you have used as part of your diagnosis to identify CCF & MB’s competitive advantage
2. A SWOT analysis to identify CCF & MB’s strengths and weaknesses, its threats and opportunities
3. How you identified and sourced relevant benchmarking data
4. How you selected the key indicators (and who you consulted with) for your benchmarking exercise
5. A consolidated list of the areas for improvement you have identified with a cost-benefit ratio
established for each of them.
6. Recommendations on the changes that may be required that will affect existing workflows or CCF &
MB’s organizational structure.
7. A high-level action plan that will implement and monitor the recommended changes to be made.
(1,000 words)
In addition to the material on your Subject 2 learning guides the following links give you access to a
step-by-step guide to benchmarking and determining competitive advantage:
• <http://www.business.vic.gov.au/marketing-sales-and-online/increasing-sales-through-marketing/
benchmark-your-business>
Client response to Task 7
CCF & MB ‘s Competitive advantage
Mortgage industry is an area flooded by reputable companies which offer mortgage services at
reliable rates and competitive terms and conditions. This is because over the recent years, mortgage
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business has gained popularity since most people consider owning homes sooner than later, when
this is the case and there is less capital available, mortgage business becomes a choice. Stiff
competition has been witnessed between the mortgage brokers and lenders of mortgage loans.
Mortgage brokers, where CCF & MB lies do not have fixed clients but they have a great
competitive advantage since they have a range of programs available for their clients. There is also
a list of lenders from which the company advices the client the lender that suits his or her program.
The company also has mobile agents who carry out the business of the organization from the
location of the client without necessarily visiting the main office.
SWOT ANALYSIS OF CCF & MB COMPNY
SWOT analysis
Strengths.
 CCF & MB provides a range of mortgage and finance broking services.
 The company has qualified employees with experience and necessary
 It has numerous programs and lenders available from which the client can choose the best
that suits him or her. This has made mortgage brokers to generate more loans than the
lenders, (Garmaise).
 Its services can be offered anywhere the client feels comfortable since the company has
mobile agents. The mobile agents also facilitate face to face interaction which reduce the
risk of default (Garmaise).
 The company has great access to lenders and most of them are not known to the clients and
it’s easy to find a good deal.
Weaknesses
 Charge relatively high the fees than what the bank charges.
 The company acts as a broker and therefore cannot compete reliably with other financial
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institutions.
 Sometimes the interest of the company may conflict that of a client
Opportunities
 Banks have outdated mortgage plans which give CCF & MB a great opportunity since it has
a range of programs that can meet different needs of clients.
 Banks have a complex criteria w3hn dealing with mortgage loans thus many clients will opt
for Mortgage brokers, CCF and MB in this case.
 Most of the information in the bank such as premium and commission is not known to the
client unlike when dealing with a mortgage broker who will disclose all the information and
advice you accordingly.
Threats
 CCF& MB face a threat of change in attitudes towards mortgage business.
 This company also faces a threat of survival in case the owners divorce.
 Threat from uncertainties.
 Competition from other companies.
Benchmarking data
Before organizing for bench mark, the company should be adequately prepared by seeking for
benchmarking data this will help the organization to carry out a successful bench mark that will
receive a meaningful feedback. Company can obtain bench marking data in three ways;
1. Seeking for assistance from organization to provide their data on previous bench
marks. Some associations also have benchmarking data for different industries which
can be used in benchmarking.
2. Consulting other business organizations which provide this data and technical advice
at a fee.
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3. Utilizing the available experts in the organization to conduct own benchmarking.
Indicators of bench marking
Every bench marking process needs key performance indicators that will help to identify how
successful the process was. Key performance indicators can be drafted by ;
 Studying the market periodically and taking into considerations the trends that exist after
assessing them. And also assess the rate at which the industry is growing or experiencing
changes.
 Knowing what one is going to bench mark will help in determining on the criteria that could
be used to measure the performance.
 Having knowledge on competitors in the same industry, on how they operate and what have
made them to achieve what they have achieved.
 Analyzing the objectives that the benchmark is supposed to meet, then coming up with
appropriate tool that can help measure the performance against the set objectives.
Areas that require improvement
After any bench marking process, there must be new things learnt because different
organizations do things differently. When an organization is doing very good in a certain
sector, it’s prudent for the benchmarking organisations to employ the strategies employed by
the later. CCF organization should consider improving in the following areas;
1. Consider revising the prices charged or fee charged to clients. Since there is stiff
competition the company should charge relatively cheaper prices so that it can have
a high turnover ratio that may increase revenue earned.
2. Avoiding false promises. In many cases the employees of the company may make
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false or unrealistic promises so as to get a business. This is not only unethical but
also unacceptable.
3. Incompetence- the company should ensure high degree of competence by always
hiring qualified and experience staff that will enhance the reputation of the company
Changes to be implemented
After a successful benchmark, a number of changes can be implemented to help improve the
performance of the organization so as to achieve its set objectives. The following changes
that may be implemented can affect the organization structure of the company.
1. Customer value- the need to serve customers more efficiently may require recruitment of
new employees so as to avail enough personnel.
2. The need to produce high quality products and services can call for employment of more
skilled staff that will turn this dream into reality. Other employees may lose job.
3. The need for the company to ensure compliance does not only abide by state laws but
also rules and regulations of the company may call for introduction of legal officer in the
organization’s structure.
Action plan
After benchmarking and identifying areas of weaknesses, the company suggests the changes that it
needs to implement. This must be what the company that was bench marked does. After these
changes have been outlined, their implementations require an action pln. The action will ensure that
the changes are implemented effectively, enough resource allocated and personnel in charge of a
specific action. This will not only ease measurement of the achievements but also ensure that the
desired results are achieved.
TASK 7
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Australian mortgage industry is currently running in the maturing stage of the life cycle and it
forecasts to grow at annual growth rate of 3.5% over the next decade. It significantly contributes to
the economic GDP. With the growing participation of borrowed in the area of real estate market so
as to have their own house brought an impressive growth for the sector. In order to assess CCF’s
competitive position, website source, credit union, other bank’s performance will be examine.
Despite this, growing interest to own house make the industry extremely challenging.
Strengths
 CCF and MB specializes in commercial lending, business lending, home loans, personal and
motor vehicle finance and other broking facilities for the clients, thus, it has a strong product
portfolio.
 Partnership with Australian Aggregators helps to serve clients with the best facilities.
 Services anywhere provide convenience to the people through mobile brokers and service
agents
 High level of experience: George has an experience of more than 35 years in the finance
sector and Midred with 22 year of lending experience. Moreover, all the consultants and
team are highly experienced.
 Since establishment, it has built loan of AUD 1.2 billion
Weakness:
 It does not have a credit license, therefore, cannot compete directly with other banks
 High charges from the consumers
 Despite of strong mortgage portfolio, cash rates cuts declined its revenue base
 Complex business structure
Opportunities:
 Housing boom and appreciating real estate market will enable CCF & MB to increase its
revenue
 Service digitalization through investing more on online mortgage services
 Investment in data security as well as wealth management
 Economies of scale
Threats:
 Changing economic factors like interest rate and cycles i.e. recession threaten its survival
 Competition from the leading mortgage banks such as Commonwealth Bank, ANZ, NAB
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and Westpac. These four bank holds collectively 78% market share of the home loan.
 Changing social preferences as now, borrowers are navigating mortgage options.
 Rising interest rates on loan may possibly deter investors
 Change in legislator requirement including NCCP rules, mortgage industry regulations and
others
Benchmarking data:
 Key industry statistics and reports to know current trends
 Competitor’s strategic practices and operations
 Expert consultation and advice
Benchmarking indicators
 Interest rate
 Digitalization practices
 Upfront fees
After reviewing and analysis the prevailing trends, it is found that according to IBIS World,
currently there are 630,000 mortgage settled by the brokers and banks have paid approximately
AUD1.8bn as upfront fees and commission to the brokers. Out of all the homeowners, around 53%
uses mortgage brokers. Currently digital disruption is the main risk faced by the mortgage brokers.
The coming of Fintech companies in the home loan sector is seen as a biggest change, which are
offering innovative services at the Banks like Westpac and others also invested in online mortgage
facilities through Fintech to change their existing process. It offers wonderful lead generation
opportunities to the brokers, in which, transactions are carries out on online platform (Corderoy,
2016). Thus, it is better for CCF & MB to join hands with Fintech to understand borrower demand
and make better mortgage plans. In future, it is expect that property price and interest rate will go
further up.
Areas of improvements
 Service charge mechanism
 Digitalization to design innovative business structure
 Consumer-centric business approach
 Regulatory compliance
Recommendations:
 Revising service charges: Currently, cut official cash rates enables lender to offer
competitive prices to borrowers. Borrowers benefited from it by negotiating dealing with the
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lenders. Thus, it is essential for CCF & MB to revise its charging policy and modify it to set
it an affordable level.
 Investment in Fintech: It will help to minimize issues associated with its current complex
business structure and target the key people easily by satisfying their demand.
 Customer-centric system: Fintech will enable CCF & MB to identify the need and demand
of borrower data to build trust and serve more people.
 CCF & MB must assure proper compliance with the mortgage industry laws and regulations
and thereby build trustworthy relationship with the clients.
Action plan
 A regulatory compliance committee must be design by CCF & MB who will track and
monitor workers practices that whether they properly follow up business value, ethics or not.
Strict action needs to be making against person who found in default or any manipulation
activity.
 For digitalization, it can either invest in Fintech or join hands with the existing FinTech to
strengthen its competitiveness by enforcing innovation.
 Being a mortgage broker, CCF & MB must use dynamic CRM software to know consumer
perception and fulfill it accordingly.
 A risk monitoring committee needs to be establishing who will identify, evaluate and
examine different risk and make plans to overcome it. It will also compare own result with
the industry benchmark and set plans.
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Assessor feedback: Resubmission required?
On the right track but as this Task is set at Diploma level, there is
insufficient detail to determine if you are competent in regards to this
Task.
For example but not limited to, you are required to include in your
document a high-level action plan that will implement and monitor the
recommended changes to be made. It is not sufficient to say; “After
benchmarking and identifying areas of weaknesses, the company
suggests the changes that it needs to implement. This must be what the
company that was bench marked does. After these changes have been
outlined, their implementations require an action pln. The action will
ensure that the changes are implemented effectively, enough resource
allocated and personnel in charge of a specific action. This will not
only ease measurement of the achievements but also ensure that the
desired results are achieved.”
Yes
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Task 8 —Managing people performance
One of your key responsibilities as general manager is to develop and implement ways to improve
the performance of CCF & MB’s consultants and other staff members.
Answer the following questions:
1. Why is it important to consult with stakeholders when allocating work? What are the possible
consequences of allocating work without consultation?
2. Describe the process you might follow when developing quantitative and qualitative performance
criteria. You should explain how you ensure that the criteria relate to CCF & MB’s objectives and how to
motivate staff members to achieve these objectives.
3. Describe the different ways you might gather information about a staff member’s workplace
performance.
4. What are the benefits of evaluating and monitoring staff members on a continuous basis?
5. Describe how you might do this in CCF & MB.
6. Why is it important to document the performance management process? Explain the possible
consequences of not retaining appropriate records of this process.
7. How can reward and recognition influence the work output of employees? Describe non-financial ways
of motivating employees.
Your answers should be 250 words for each numbered question above.
8. Design a high-level performance management process for CCF & MB to be rolled out to all staff
members.
9. Who should you consult when designing the performance management process? List who you
would consult and the reasons why.
10. Develop a checklist for delivering regular performance appraisals, including a section for team
leaders and supervisors to complete a section for team members participating in the performance
appraisal process.
(800 words)
Martin and Luis are working together on project involving the preparation for a loan application for
one of CCF & MB’s most influential clients, a property developer. Martin missed a deadline and the
whole project is now behind schedule by a week. This is the third time in a month that he has
missed a deadline. Martin has had problems with meeting deadlines in the past and has already had
a written warning.
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As the general manager you have been monitoring Martin’s performance over the past month,
providing informal feedback about his role in the project. Although he has made several
improvements regarding his performance, his inability to meet deadlines has forced the delay of the
client’s development a further month. CCF & MB made a commitment to the client that the loan
application would be with prospective lender two weeks ago.
The client is not happy that his he does not yet have an approval and is considering cancelling the
agreement he has with CCF & MB and going elsewhere.
11. You have arranged to meet with Martin to talk about the project and his input. How would you go
about providing constructive feedback to Martin?
(500 words)
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Client response to Task 8
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Why is it important to consult with stakeholders when allocating work
Effective decsison making demands that the stake holders be involved the process of decision
making. All the activities of the organization affect the stake holders that are involved. It’s
important to consult stakes holder before assigning works because;
1. It will ensure maximum satisfaction from the stake holders since they are part of the
decision making process, they will understand that they will take responsibility of
any liability. This will help them to work harder and achieve the objectives of the
organization.
2. When stake holders are involved, it’s easy to make more informed decisions in
assigning of work so that the manager is able to conduct specialization. Workers will
be place in the areas that they are most familiar with. This will not only save costs of
operation but also encourage team work.
3. When stakeholders are involved in consultation, there is a likelihood that the process
or changes that will be implemented will succeed. They will also be eager to
celebrate the success and they will work harder to achieve the desired results.
4. Consulting stake holders is a good sign of enhancing communication the company. it
shows transparency and superior governance and recognizes the efforts put by others
in achieving the objectives
If stake holders are not involved in consultation, there may be lack of contention; employees will be
disgruntled which is a big stumbling block to achievement of set objectives.
Performance criteria
In order to ensure that the company continues to perform as expected, there must be a defined
process or formula that will be used to analyse the performance. The following process can be used.
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1. Create performance evaluation form- this will cater for the needs of the employees and the
interests of the organization in achieving the objectives and the results expected. The form
will show performance areas which the company needs to concentrate on. Aspects such as
quality of work, quantity of work done should be incorporated in the form.
2. Standard measures of performance- there should be a way in which the performance of the
employees is assessed and rated.
3. Provide a platform for feedback. - It should have a good system that accommodates
response from all the stakeholders, the responses should be taken into consideration.
4. Give constructive feedback- don’t criticize an employee or praise him so much. This will
encourage employees to work harder and correct their mistakes. It will further help them to
major on their strengths.
5. Put expectation for improvement- identify the areas that employees need to improve and
give details on how you will help them improve.
6. Ensure that you have disciplinary and procedure to be followed in case of termination. - This
will help in handling employees who may misbehave. It can also be done through verbal and
written warning.
7. Have an evaluation that will help you gauge the performance over time.
Evaluating staff performance
The manager can gather information about the performance of an employee’s without
necessarily involving him or her since his or her involvement may not give the clear
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picture of the performance of the employee. The management can gather the
employee’s information by ;
Interviewing others and getting feedback.- other staff members can provided the
needed information about an employee. This information can portray the character of
the employee and the performance. however this criteria cannot be relied upon since it
can give a biased feedback to the management. Staff members may collide to tarnish
other employee’s reputation.
Check the performance data obtained - organizations in most cases conduct surveys
from customers to see how effective the services of the company are. Poor feedback in a
certain department can means that employees in that department are not assertive. The
performance can also be obtained from feeling questioners or feedbacks provided in the
suggestion box.
Performance of the department- a competent employee will strive to achieve the best
results ever. If the work place of an employee is transparent, files are organized, no loss
of data and provides periodic reports , it will suggest that the employee is doing the job
right. If the place of work is disorganised, there is no report, there is constant loss of
information and there are a number of complaints from other employees will show that
something fishy is taking place. Therefore the management can act accordingly.
Employee monitoring
Every company employees of different characters. In a company there exist those employees who
can work with no supervision, with less supervision, with supervision and others work under
pressure. This is the sole reason why the management of a company should continuously monitor
the progress of the employees to assess their performance. Monitoring employees in a regular basis
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will benefit the organization in the following way;
1. It helps the management to keep track of the performance of the employees and define
whether they are sticking to the objectives of the organization.
2. The company will be able to identify new opportunities that exist in its work force. These
opportunities can be talents and work specialization. This will help the management in
project of tasks or work specialization and also help the organization to identify key
employees who it can build career wise so as to be more resourceful to the organization.
3. It will help the company to identify weaknesses that exist in their work places and make
informed decisions in terms of staffing and wages. They will be able to assess the volume of
work done d know whether to add more staff members.
4. Monitoring employees will always keep them in toes and they will ensure to work hard so as
to achieve the desired goals or expectations of the company.
5. It will help the organization to identify top performers and reward them accordingly. This
will encourage others to work harder.
Describe how you might do this in CCF & MB.
For any company to achieve the desires result and be in line with the objectives of the
organization, there must be continues monitoring from the management. CCF and MB is not an
exceptional. In monitoring the employees of this company, the following ways will be employed;
1. Keeping watch as employees do their job. This is the most effective way since it will help
the management get first hand information. It will help the manager quickly identify the
weaknesses of the employee and areas that require improvement. When job is done
perfectly under the manager’s watch, it will create confidence in the manager and the
employee. However this method may not apply to some employees who can feel a little
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nervous and may not produce their best.
2. Checking performance e of individual employee. The performance of each employee will be
analysed after a certain period. The best performers will be rewarded and the others
encouraged to work harder.
3. Using tools such as performance appraisal and asking employees questions on an interview
about his or her performance. This will make them feel guilty where they have not worked
hard and they will perform the next time.
4. Getting information from other staff member, - this is a dangerous way of monitoring
employees as it can create enmity in the work place but that does not make it less effective.
It will create a working culture in the work place as employees will tend to work without
supervisor for the fear of negative feedback from their colleagues.
Performance records
In any organization performance must be documented. This is because it is very useful to the
organization not only in the present but also in the future. documenting performance is important
because;
1. It is used as tool for improvement. - This will show how the organization performed and the
performance can be compared with other organizations in the same industry to help the
company come up with ways of improving the performance.
2. Evidence for legal issues. - documenting of performance for each worker will help the
company to sort out legal issues if need will rise. This is relevant where by an ex employee
my decided to sue the company over damages.
3. In case the economy forces the company to lay off some employees, the documentation of
performance will help determine the employees who will be lid off first. Unproductive
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employees will be held victim of circumstance.
4. It helps the company to know what it can achieve given the available resources; this will
also be beneficial in setting targets for the company.
If the company fails to keep proper performance records, it might face challenges such as
1. Denial of loans since the performance of the company is not known.
2. Lack of motivation to new employees since it will create a picture that the organization does
not recognize efforts of employees.
3. It will be hard to compare the performance of the organization to other organizations in the
same industry.
Rewarding of employees
Every organization has a set procedure for identifying performers and rewarding them accordingly.
(Roussel & Russell, 2009) Employees’ performance should be identified and rewarded so as to
create a working culture. A working culture in an organization can be only achieved by motivating
performers and not applying other mechanisms like being too strict. It’s good for n organization to
come together once in a while and celebrate the success that it has achieved so far. It not only
identifies employees with the company but also motivate the worker to work harder so as to have
the same experience next time. Reward and recognition of performers will positively influence the
output of employees (Nohria, 78). An organization can motivate its employees through non
financial means such as;
1. Organizing trips for employees
2. The company can recognize or motivate employees by offering free training that is meant to
enhance their career development.
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3. Giving them benefits such as healthy cover that can be enjoyed with their families.
4. Employees can also be motivated by being promoted to senior positions.
5. Giving certificates of merit for good performance and other trophies that signify high
performance
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TASK 8
1.
Before allocating work, it is necessary to consult with the stakeholders so that work can be
allocate in the best manner taking into account work specification. Consulting with them helps to
know staff members interest and desires and they can be assign with the interested area of
responsibility in which they are competent and have good knowledge. As a result, they will put their
best efforts, carry out their assigned job duties willingly, and put maximum efforts. It will also
motivate them because they feel proud to being a part of work allocation decisions and foster
coordination, communication, teamworking and build trustworthy relationship with workforce.
Consequences of work allocation without consultation
 Staff may feel burden, if they are not assigned with the interested job duties.
 It demotivate people because they are not invited to give their opinion, resultant less
productivity.
 It may raise staff turnover issues, because, employees may wish to perform their interested
area of job duties.
 Lack of contention
 Conflicts among staff members
2.
CCF &MB’s vision is to become a champion in the mortgage and broking sector. Business
neds to regularly examine their performance through Key Performance Indicators (KPIs) such as
total loan and mortgage, new loans, consumer base, profitability and others. Here, the most
important thing is all the strategies and plans must be align with its mission and vision; so that,
every work carried out by work directly contribute towards goal achievement. In this respect,
reward mechanism plan should be prepared for the staff wherein, staff must be promoted and
rewarded considering their performance i.e. productivity, total amount of loan sanctions, new loans
and mortgage offered, profit each customer and others. Incentive plan must be target-based, so that,
every worker works towards achieving the minimum set target. It must be communicate to the staff,
so that, every worker has a clear mind set to contact more and more people and offer mortgage
loans and financing facilities to show excellent performance and thereby get promotional
opportunities. It definitely boosts workers motivation, commitment and performance, which in turn,
achieve defined objectives. Besides this, time to time feedback must be taken from staff members to
resolve queries and any conflicts and maintain good relationship among all.
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3.Ways to gather staff members performance
 360-degree feedback is the best way, wherein all the members such as other staff members,
consultants, agents, consumers, top level managers and others are invited to present their
opinion about an employee. However, biasness and individual judgment may be sometimes
a reason for negative feedback for the worker without any reason.
 Consumer satisfaction survey: By using CRM, CCF & MB can remain in touch with the
consumers to whom loan, mortgage and other facilities are rendering by different agents. It
helps to know that how extremely they are satisfied with a particular agent and consultant
advices an financial services
 Records and documents: Every worker need to properly record all the details about their
work in a systematic manner. Thus, CCF & MB’s managers time to time review their
performance and its trend to know his or her progress and strategies adopted to deal with
different users base. In this, it must be assess that how quickly; an employee achieves its
target and contacts more and more people. Field observation may be sometime a useful way
to check their way of working, coordination and cooperation with colleagues and others.
4.
Employee’s performance monitoring is a system of supervising, directing and checking their
work progress on a regular basis to help them to overcome issues whatever they face and improve
performance.
Benefits of staff monitoring:
 It helps to know people who work dishonestly, violate values, ethics and principles and
involved in any illegal practices such as manipulating accounts, sharing confidential
information with competitors, use of business resources for personal use and others
 Reduce reoccurrence of mistakes and errors
 Monitoring helps to acknowledge the strengths of the employees and helps in correct
allocation of work as per their specification (Miksen, 2015).
 Maintain proper documentation of all the details
 Enhance staff productivity by maximizing their potential
 Reduce complexities in the business structure
 Identify areas of improvement by finding weaknesses
 Creating a right reward mechanism plan
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5
5.
Monitoring staff work progress serves as a watchdog for CCF & MB, which helps to
overcome key concerns and maximize productivity. It will be perform through taking timely
reviews from the top-level managers about all the agents, consultants and other. Staff monitoring is
not just about finding weaknesses in their performance, but also, aims to know staff issues and
thoughts. Thus, in order to know it, one-to-one confidential meetings must be organize, in which,
both the George and Midred must communicate with them and ask what issues they face i.e.
communication issues, work-load and others. They must be acknowledge with their key strengths
and then communicate the areas where improvement required. Self-appraisal also must be use to
know the areas where worker feel that he or she requires improvement through organizing training.
Besides this, a monthly performance review meetings must be organize and issues will be discuss
openly without targeting a specific worker. Any staff member can express their opinion to
overcome the same either via training, hiring more candidates, investment in e-commerce etc.
6.
Documentation is important to maintain legal proof and evidences of all the events. CCF
and MB must assure well documentation of all the processes, activities, feedback reports, self-
appraisal details and other that were the part of its performance management system. It helps to
maintain records about witnessed policy breach, disciplinary action, and maximum contribution,
reward details, training requirements and areas of weaknesses, so that, necessary plans can be make
to combat weak point and improve productivity.
Consequences:
 Poorly structured performance management system may raise issues to monitor, supervise
and compare candidate’s performance over the period.
 Company cannot gather details about past events and lesson learned through previous
meeting and discussions to make strict plans against dishonest people.
 It may raise conflicts among workers due because if worker who performed exceptionally is
not rewarded or poorly rewarded can feel demotivated.
 Due to inappropriate documentation, there will no evidence in legal controversies
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7.
Reward plays an important role in employee motivation because employees mainly work for
salary and other benefits including both financial and non-financial. Reward works as a factor of
motivation for the people, wherein, every member works harder to get better monetary pay,
promotional growth and other benefits by meeting their loan targets resultant high productivity.
Monetary includes pay-scale, bonus, incentives, promotion, commission and others. However, non-
financially, CCF and MB can reward workers through giving them holiday package, acknowledging
their performance, career development trainings, insurance coverage, performance certificates, job
enlargement, job enrichment through delivering greater responsibilities by assigning complex tasks,
providing technical training and others.
8.
Performance management process
 Weekly meetings, in which, performance of all the agents, consultants and other members
will be review, the best candidate will be acknowledge, and key areas of concerns will be
found.
 Employee complaint and suggestion box needs to be keep at workplace, where worker can
share their issues any time and give suggestions; which helps them to perform better.
 Within 15 days, manager will provide their feedbacks to George and Midred to inform them
about employee’s practices.
 Monthly performance review sessions will be conduct, where the key strengths and
weaknesses need to be assessed. In this meeting, best performer who had made extra-
ordinary contribution will be reward, however, decisions will be make for areas of key
concerns i.e. lack of competencies, building digitalized skills among workers and others
through training.
 Every month, customer survey results will be share with the staff to aware and draw
attention of the members towards weak points, in which, they needs to improve.
9.
Consultation requirement for designing performance management process
 HR professionals: They provide details about different candidates profile, qualification,
experience and others that help to align performance management plan with the key goal of
boosting staff productivity at higher level of motivation. Discussion with them also enables
CCF & MB to know reasons of key concerns i.e. high turnover, lack of motivation,
absenteeism and others.
 Managers: They are the top-level managers who ultimately approve the plan, therefore, they
must be communicated to know their suggestions to design an excellent performance
management plan.
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 Leaders and supervisors: They are well familiar with the subordinates strength and
weaknesses. Therefore, discussion with them helps to determine area, which requires more
attention to boost productivity.
10.
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Employee Performance Appraisal
Name: ______________________
Designation:__________________
Reporting authority: ____________
Date of joining: ___________________
Appraisal period: From ___________ To____________
Self performance ranking
Hig
h
Averag
e
Poo
r
Job knowledge
Punctuality
Work quality
Dependency
Relationship with
colleagues
Attendance
Ability to learn
Time-management
Overall ranking
Please write comments in the space below:
Attributes Comments
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How well employee had
performed their job duties?
On which aspects of job,
improvements are required?
On which aspect, employee
require to be trained?
Job continuity
Performance challenges
Is worker is able to handle
challenging work?
_________________
Signature of team leader
Thank You!
11.
Do not meet deadline on time is a serious concern for CCF & MB and possibly, it will lose
one of the most important clients, thus, being a general manager, it is necessary to provide a issue-
focused constructing feedback to Martin. At the starting point of feedback, I will praise Martin for
his efforts, enthusiasm and areas where he brought improvement. Then, moving to the key concern,
I will be straightforward and tell Martin that meeting deadline is the most important requirement to
satisfy clients to retain them, however, in the past months, Martin never meet deadline. Company
had given him many chances, still, issue not been resolved and this time, believing his work, he has
been assigned with a reall;y important project, still, as a result of delay, client may wish to cancel
the agreement. Thus, it resultant serious trouble to the business, by this way, Martin can be clearly
communicate with a tone of concern that company cannot entertain it further. At the end, he will be
warned that it’s his final chance and he has only 15 days to prove himself that he can meet deadline,
otherwise, unfortunately, he will be terminated.
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8.
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11.
Assessor feedback: Resubmission required?
Please carefully read the requirements of this Task as there are ten
specific sub-Tasks requiring different levels of responses. To give you
some guide, it is expected that to adequately cover what is required the
minimum work count would be 3,000 words not counting your
personal performance plan.
Yes
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Task 9 — Showing leadership in the workplace
Leadership is defined as the ability to influence others. This assessment task requires you to reflect
on your own ability to positively influence others in the workplace and the negative aspects of poor
leadership.
1. Reflect on a situation where you have had a positive impact in the workplace. Please include in the
reflective writing the skills, decisions and or behaviors you demonstrated that contributed to this
positive change and what the impact was for the team, clients and the organisation. (400 words)
2. Reflect on a situation which was or could have been damaging to the organisation. Please include the
behaviors, standards or values that were demonstrated and explain why they were detrimental.
(400 words)
3. In your role as the general manager of CCF & MB create your own personal performance plan.
You may use your own personal performance plan or alternatively you can use the example below.
In developing your personal performance plan you should ensure that your personal KPIs reflect CCF &
MB’s goals and objectives and how you can help in building CCF & MB’s integrity and credibility.
What are my
development
objectives?
Priority What activities do I need to
undertake to achieve my
objectives?
What support/resources
do I need to achieve my
objectives
Target date for
achieving my
objectives
Actual date of
achieving my
objectives
Good customer
service
Custo
mer
relatio
n and
satisfac
tion.
To educate other
workers on public
relations matters.
Figure out some of
the needs of our chief
customers
Enough capital to
facilitate field
works.
Adequate staff to
accompany me.
In five
months’
time.
Exactly after
five months.
Ensure
increased
profits.
Produc
tivity
Bring in more clients.
Ensure the existing
clients increase their
investments.
Offers to attract
more customers
and retain the
existing ones.
In two
months’
time
At the end of
my second
month in this
position.
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Employee
Retention
Emplo
yee
turnov
er
Ensuring employees
are productive.
Maintaining a
positive employee
environment.
All employees’
cooperation.
In one
months’
time.
At the end of
my first month
in service.
Review date:
4. Feedback from colleagues, staff and management may be gathered informally and formally including
performance review feedback. Why is it important to analyse and interpret all feedback? (400 words)
Client response to Task 9
Question one:
Since leadership is the relationship between the manager and employees
(Yukl), I undertook fieldwork activities on the marketing of our products, and by doing so, I
encouraged fellow workers to participate in fieldwork activities. This provided a platform to
colleagues to encounter challenges that one comes across during field survey and the possible
actions that one can undertake to overcome them. Though fieldwork activities are tedious, my
leading by example helped other employees develop a positive attitude towards this work and
motivate them towards goal achievement (Kelly-Heidenthal). This will also help in creating an
active staff which could handle challenges that they might come across in later endeavours. Field
survey enabled us to understand our clients’ preferences and market variation thus making us
produce products which maximized our customers’ utility.
I practiced right customer relations which enabled our clients to build confidence for our services
and products. The customers’ confidence attracted more clients who in turn aided in transforming
our organization to be one of the best finance and mortgage provider. I recommended my staff to
improve on their customer relations tactics to safeguard the clients’ satisfaction. These techniques
help us to respond to the queries arising from our service provision.
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I employed practical training on our staff and moreover the newly recruited staff. Variations of the
customer need and wants might be challenging thus the need to continuously train our staff on
appropriate skills to deal with these rapid changes. This facilitated the company workers to acquire
the necessary knowledge to handle trends in the finance and mortgage market. Researching on the
vital information on the variations which had occurred and those likely to happen in this market
assisted in making valid and sound decisions in modifying our services to suit our customers’
demands.
Modification of our products and services to suit the current market needs. The initially offered
products and services in our organization could not address the varying demands of our clients in
the ongoing market changes. This brought forth the need to modify the products and adopt new
designs to satisfy the customer’s needs. The current market requires more exciting products which
would attract clients. For instance, I introduced family group health and life assurance policies
enabling different families to subscribe to benefit from the systems.
Developed platform for educating clients on the current products which might be crucial to them
thus, improving public awareness of our products and services. The eradication of existing public
perception of insurance products by educating them on the need for insurance coverage has had the
impact of attracting more clients to our organization.
Question two:
Long and tedious procedures while offering services like loans and insurance policies affected the
organizations’ progress. The proceedings were time-consuming thus discouraging clients to opt for
our products. These lengthy procedures rendered some products almost invalid. For example,
bureaucratic processes to secure emergency loans to cater for hospital bills made the outcome
meaningless and expensive as the bill would have accumulated to unnecessary amounts which
would have been avoided if the procedure was short.
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Delayed surrender of sum assured to the clients lowered their confidence to the organization.
Postponed compensation of the recommended insurable perils which had occurred jeopardized the
progress of many insurance products. Tedious procedures to acquire mortgage products where
clients were supposed to pay the substantial amount over a short period scared them to opt for their
own homes. The clients who wanted to invest in the organization to put up commercial and
residential properties were shun away by the short repayment period.
Partial participation of general staff and the clients on the decision-making processes was one of the
problems the organization encountered. The company relied on the directors and other senior staff
on decision making thus neglecting essential opinions from the general staff, clients and the public.
The premises goal to satisfy the public needs failed due to lack of involvement of the customers in
the decision-making process as the company’s understanding of the consumer's tastes, and
preferences were mere assumptions. This resulted in poor planning and implementation of the
amount charged on essential products like insurance policies and mortgage as well as unfavourable
repayment period.
Improper location of mortgage products proved to be a challenging factor as they failed to impress
the clients. The area where this property should be situated is vital since different clients prefer
different locations. We opted to locate our mortgages near commercial areas with the notion that
many clients prefer to be near their workplace. This did not work our way as clients turned out to
prefer residing in the outskirts of the town and cities. The customers need to have sufficient space in
their homestead for ample parking, and small kitchen garden posed trouble for our first central
business district residential as it was expensive to provide such space. Poor location of our
mortgage products made them costly such that most clients could not afford them. Most places were
impassable during rainy seasons and noisy due to their nearness to the commercial sites.
Question 4
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Importance of analysing and interpreting feedback.
Feedback mainly refers to supportive information or reproach about a previous deed or behaviour
from a person or organization to the dourer of the action or the practice. The information received
thereby can be used modify and progress the present and later engagements and behaviour.
Feedback may include how a customer responds to the services offered commonly referred to as
consumer feedback or worker performance feedback which entails how that particular employee
perceives the management of the organization. The response is based on the expected outcome, and
the actual performance realized. Feedback may be assembled either formally or informally.
Nobody disputes the importance of feedback, whether positive or negative its significance is
enormous. It can be used in decision making and organizations which envision to grow should
deliberately be asking for input from employees, vendors, suppliers, clients, stakeholders and even
consumers. One of the reasons why it is prudent to analyse and interpret responses is the act that
reaction will always be there. When you confront someone and ask for feedback at any time, they
will still have something to say. The person may talk about training assessment, recital evaluation
or a worker review. Every time we link to customer, clients or employees what we are doing is
feedback communication.
Feedback is useful listening and the person providing it should be understood and made to believe
that their feedback counts and shown how it will be used. By asking feedback from employees can
motivate them to perform better. Workers will feel valued and included when asked to make
comments to be used in the decision-making process. Feedback originating from suppliers, clients,
vendors, and stakeholders can be used as a motivating factor to establish good operational
associations.
Feedback can be used to improve performance especially constructive criticism can aid in making
plans to expand and rise return in future. Similarly, it can be used as a tool for progressive learning.
Learning about how other people experience working with your organization is a positive move and
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helps one to work within the confines of the set goals, generate policies, produce the right products,
services perfections and develop consumer and employees relations.
In conclusion, every organization should not only be willing to accept and ask for feedback but also
analyse and interpret it. It is essential to examine it since it aids in decision making to improve
operations and performance and even highpoint the fortes and flaws of a particular individual or
organization.
Assessor feedback: Resubmission required?
You have demonstrated that you are competent in regards to this Task. No
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Works cited
Bloomquist, Eric, Robert Spellman, and Barbara Joan Wilson. "Mortgage loan customization
system and process." U.S. Patent No. 7,089,503. 8 Aug. 2006.
Coval, J., Jurek, J. & Sta_ord, E, `The economics of structured _nance', The Journal of Economic
Perspectives pp. 2009
Demyanyk, Y. & Van Hemert, O. , `Understanding the Subprime Mortgage Crisis',
Frame, W. Scott, Aruna Srinivasan, and Lynn Woosley. "The effect of credit scoring on small-
business lending." Journal of money, credit and banking (2001): 813-825.
Nohria, Nitin, Boris Groysberg, and Linda-Eling Lee. "Employee motivation." Harvard business
review 86.7/8 (2008): 78-84.
Garmaise, M. , `After the Honeymoon: Relationship Dynamics Between Mortgage
Brokers and Banks', UCLA Working Paper 2009
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