BSBMGT617: Report on Analyzing and Interpreting Business Plans

This report provides a detailed analysis and interpretation of two distinct business plans: Australian Hardware and Coffeeville. The analysis examines the strengths and weaknesses of each business plan, evaluating them against criteria for effective business plans. The report covers key aspects such as executive summaries, vision and mission statements, company structures, market strategies, financial overviews, and risk management. The comparison highlights the differing approaches of a large hardware supplier and a cafe, considering their respective target markets, operational strategies, and financial considerations. The report also touches upon legal and operational considerations, including supplier relationships, inventory management, communication channels, payment methods, and corporate social responsibility. The analysis aims to provide insights into the strategic approaches and operational efficiencies of both businesses, offering a comparative perspective on their business planning methodologies and overall market positions.

BSBMGT617 DEVELOP AND IMPLEMENT A BUSINESS PLAN
ASSESSMENT TASK 1- ANALYSE AND INTERPRET A
BUSINESS PLAN

Business Plan 1: Australian Hardware
Australian Hardware is a hardware supplier of Home Improvement products as well as provides
expert service and advise on the same. The company was established in the year 1921. The
company is based in Sydney and operates 138 stores all across Australia. The company became
public in the year 1982. The controlling interest of Australian Hardware is retained by
Greenwright family and the present so as well as the chair of the board of directors is held by a
person from the Greenwright family, Mr Holden Greenwright. The business plan helps in
understanding the market the company specialises in, the finances as well as the future planning.
The targeted market segment for Australian Hardware has been divided into three categories
which are mainly DYIs, home improvers and great persons. Since the company is operating in
home improvement and Hardware supplies industry the current target market is very suitable for
Australian Hardware. In order to market to the targeted consumers Australian Hardware employs
two pronged strategy which is characterized by the service differentiation and products that can
be essential to assist the targeted activities of marketing. Providing for a versatile consumer base
makes Australian Hardware a well-known entity in Australia.
The vision statement of the company helps in visualising the future objectives of Australian
Hardware. The company wishes to leave the market of hardware and home improvement
supplies in Australia within the next 5 year. In order to do so the clear cut objectives are
increasing the gross profit by increasing sales and revenue which will help in maintaining as well
as increasing the market share. In order to minimise cost it is needed to control the direct and
indirect costs of operations which will help in maintaining superior product as a rest service
quality standards that will help Australian Hardware to establish its brand identity and help in
increasing the same reputation without being disruptive to the environment.
The business plan of Australian Hardware highlights the hierarchical order and organisational
structure Existing within the company. The business plan provides details on the origin of the
business, the financial statements along with the current staffs and job vacancies. The
organisational structure helps in identifying the flow of power among the different chief
executive present in the company. The board of directors are the highest power in the
organisation and they elect a CEO either by hiring someone having the qualifications or
appointing someone who exist on the company payroll. The CFO, the COO, marketing as well as

human resources heads answerable to the CEO. The above-mentioned individuals monitor store
operations and deal with store managers.
In case someone was looking to get employed in Australian hardware, they are training options
that will help the staff to improve the skills that will in turn help the company to meet the
requirements of the business. Appointed staff members can undergo sales training technical
training in the product area. In order to stand up to the commitment Corporate Social
Responsibility and environment friendliness, staff members are also encouraged to undergo
environmental training health and safety training, community sensitivity training and several
such other training programs. This means that Australian Hardware looks forward to harvest
talent and train them that will help the society and economy by creating job opportunities.
It is also necessary for Australian Hardware to retain the Talent that they have harvested and
invested in by providing opportunities for development to the existing staff members. This will
include use of performance management practices that will be focused on developmental goals
that are specifically tailored for an individual that helps in meeting with the Expectations of the
business. Australian Hardware also believes in rewarding its loyal employees by paying salary
that is at par with the industry standards and if possible provide better wages than the
competitors. This option will be taken into consideration if the hiring is viable from financial
perspectives.
The business plan provides the product and service portfolio of Australian Hardware. The
product and service portfolio along with the other provided information helps in analysing the
market position of Australian Hardware and it has been done using the 7Ps of Marketing which
are namely price of products or services, place where the products and services are sold, product
variety, promotion of services, physical evidence, people and process. ABC company has the
potential for future growth if it is able to capture the market share by increasing revenue through
sales in targeted market segments.
In order to operator company it is necessary to undertake risks and liabilities which makes it
important to get an insurance. The compensation of the workers in the company is in accordance
with the legislative requirements of Australia. The company has insurance self of product
liability to 15 million dollars. They have also insured the current as well as fixed assets to the
current value. This has been done by creating of risk management metrics that helps in

determining the impact and level of a risk. The most notable risks are difficulty in Sourcing staff
members, wastage of stock in inventory, risks to community, legal obligations to name a few.
The rest of the Businessman provides the legal considerations that bind the organisation, the
operations and processes, suppliers, inventory, Trading hours, channels of communication, types
of payments, policy of credit, affiliations and memberships. The plan also highlights the
corporate social responsibility and the environmental responsibility. In order to fulfill the
responsibility the business plan identifies plan of actions necessary to be undertaken. The most
interesting part of the business is the market strategy and approach. It is to be noted that
Australian Hardware regularly conducts market research in order to understand the evolving
needs of the consumers that will help them in better organising the marketing mix.

Business Plan 2: Coffeeville
Coffeeville is a partnership that is owned and managed by Emma and Rufus Belcastran. It is a
cafe that has been in operation for 3 years because of its well reception in the consumer market
of Melbourne. While Rufus is an MBA having 15 years of experience of handling similar
establishments, Emma has a Diploma in Marketing with a 13 years experience in fields of
customer service, marketing and sales. In order to make sure that Coffeeville is successful in the
future as well as profitable it is very critical to continue the effective marketing strategies.
Coffeeville’s mission statement claims to provide high quality coffee beans and practice fair
trade. They also plan to have a menu of hot or cold gourmet beverages and food complimented
by friendly service which is fast and has high level of expertise and knowledge. Vision of the
company is to establish itself as a gourmet coffee and food for the socially aware and ethical
coffee drinker of Melbourne by expansions in the next 5 years.
Business plan provide the organisational hierarchy which identify the two partners as the
business owners and the decision making body of the organisation. The currently have two stores
and the store manager of each respective store is answerable for the employees working under
them to the business owners. The staff of the organisation are responsible for being the baristas
as well as take care of other responsibilities as cashiers. They also list the requirement for a cafe
manager and another barista cum cashier. The most commonly used recruitment options are
undertaken at Coffeeville such as word of mouth, trade publications and online recruitment.
It is very crucial for small business like Coffeeville to conduct training programs that will help in
improving the service offering to the clients. In order to achieve this Coffeeville will be looking
forward to implement training programs that will help in providing the recruited as well as
existing staff members to have knowledge of coffee or food preparation as well as customer
service. The business owners have decided to employ external trainers to coach the staff
members which is necessary for the sustenance of Coffeeville.
In order to remain functioning, Coffeeville needs to retain the skills that have been obtained by
the employees by implementing Strategies for skill retention. This will be done by continuous
monitoring of stock performance that is in compliance with the performance management policy
of the company. In order to reduce our plans it is necessary for the managers and employees to
collaborate together that will help in building skills as well as in sure greater employee
dedication efforts as our skills to move along the strategic direction of the company.

The business plan provides the list of items that are created by Coffeeville. This helps in
determine the position of the company in the market by utilising the 4 P's of marketing mix
which are namely product, place, price and people. The organisation works with ethics and is
very unique preposition to the target market.The pricing strategy employed by the business is
intended to increase the revenue without compromising and quality which is why the products
are higher price than that of the competitors. The Ambience of the cafe provides the customer a
luxurious and feel good life experience which is a reflection of the taste and ethical Awareness of
the consumers.
In order to sustain in the future market the company conducts consumer research that has
highlighted the growing Trend of sophisticated Cafe patrons. The recent demographic and
economic changes in Melbourne have given Coffeeville a chance to exist within the market and
hence it becomes necessary that the consumers identify the products as compelling and unique
value proposition. The main aim of Coffeeville is to analyse the sales figures to identify the
phases of the shift when the foot traffic increases.
In order to keep distance from the legal complications, risks, liabilities and unpredictability
Coffeeville is also insured. The compensation provided to the Employees working at Coffeeville
is in accordance with the legislative requirements present in Australia. The company has filed a
product liability insurance of 1 million dollars. Business Assets of Coffeeville are insured to the
current value. The option of insurance has been done by conducting the risk management
analysis which identify the severity and type of risk that the company might face. The most
notable risks are losing market share due to the aggressive sales and marketing techniques
employed by competitors and emergence of a new competitor who is geographically in
proximity.
The business plan helps in identifying the suppliers the operational process and the several
equipments that are necessary in the day to day operation of Coffeeville. It also helps identifying
the legal obligations of the company, the communication channels, the accepted payment types,
affiliations and memberships as well as inventory. In order to keep up the good will in the market
Coffeeville has developed sustainability plans that take into account the corporate social
responsibility and environmental impacts, identify the risks and formulate strategies.
Strengths Weaknesses Inference

Australian
Hardware
1. Covers all aspects
of a multinational
business
2. Detailed overview
on strategic
approach to
marketing.
3. Well defined
mission and vision
statement.
4. Financial overview
of the company
provided.
______
Australian Hardware is a company which
operates in a very large market in
comparison to Coffeeville which caters to
the luxurious cravings of the consumers.
Both the organisations are functioning in
different market segments that is ABC
company manufacturers and provides
consumer goods and services why is
Coffeeville is in hospitality segment. The
business pants of the respective
organisations are apt for the businesses
themselves. Australian Hardware has
become a brand over the years and in
order to maintain the brand image the
organisation turned totally corporate.
Text size IT company is going through
the growth phase and at the initial stage
the company has undertaken a
partnership type of ownership. Jasmine
that the operations and functions of both
the companies deferred greatly on basis
of type of ownership and market
segment. Wild ABC company SPC in
quality rating XYZ company is trying to
sustain which is why the aims and
objectives of the companies are a great
lot different.
Coffeeville 1. Perfect for small
and medium-sized
Enterprises.
2. Provide insight on
functioning of
partnership form
of ownership.
1. Does not
discussed
expansion
possibilitie
s.