Developing and Implementing a Business Plan: Report and Analysis

This report provides a comprehensive guide to the development and implementation of a business plan, covering key aspects such as market analysis, financial planning, and performance monitoring. The report begins with an overview of the initial steps involved in business plan development, in...Read More

Developing and implementing a business plan

Table of Contents
Task 1: Developing a business plan ..................................................................................................3
Task 2: Monitor performance................................................................................................................6
Task 3: Respond to data performance...................................................................................................7
Business plan.........................................................................................................................................8
References...........................................................................................................................................15

Task 1: Developing a business plan
1. What is the best method to review operational and business plan when the business
has not been started yet
Answer: The first step is to review the strategic plan that has been implemented for
doing business successfully. The management should see whether the strategic plan is
suitable to fulfil the vision and objectives of the business. The second is to examine
whether the business plan and operational plan are working as per the strategic plan.
The third step is to monitor and evaluate the implemented plan that is whether the
plan fulfil the goals and long term vision of business or the strategy needs some
modification.
2. Provide potential source of a business plan, a mission statement, vision statement, and
a values and objective statement.
Answer: According to Gerasymenko, De Clerc & Sapienza (2015), there are different
sources to arrange funds for starting a business such as personal investment, venture
capital, bank loans, business incubators, love money, subsidies and grants from
government, and angels.
Mission statements- XYZ retail outlet will provide good quality products and services
to all its consumers at affordable price and will work with integrity and honesty.
Vision statement- our vision is to make XYZ retail outlet the world best retail stores
which will provide superior quality of products and will render outstanding services to
our customers
Value statement- We sell innovative products and are accountable to our customers
and also provide harmonies relationships with the customers.

3. Why do we consult with stakeholders?
Answer: there are two types of stakeholders such as internal stakeholders and external
stakeholders. According to Farooq, Rupp & Farooq (2017), stakeholders are the
persons who invest in the business, who provide financial sources to the business as
well as provide equipment and skilled employees to the organization. The
management should consult with them so that they can share their ideas and
knowledge to the business as well as provide sound decisions or the organization.
4. How could you review market requirements for the product or service, research
pricing options, profile customer needs?
Answer: The requirement of products in the market can be reviewed by analyzing the
competitor’s sales of their goods or services. Prices of the product can be fixed by
evaluating the prices of the main competitors in the industry and the prices in the
initial stage should be fixed at a lower price so that the outlet will be available to
increase their sales.
5. Develop performance objectives and measures through consultation with key
stakeholders?
Answer: as opined by Bititci, Cocca, & Ates (2016), the management should consult
the performance of the organization with the key stakeholders so that they can share
their knowledge and experiences to enhance the performance of business
6: outline what do you mean by, ‘identify financial, human and physical resource
requirements for the business?
Answer: According to Cawsey & Rowley (2016), identifying human resources means
that the owner before starting the business should identify skilled employees for the
organization for achieving mission and vision of organization. Identifying financial resources

means that the proprietor should arrange the sources from where the business would be
acquiring funds for carrying on the business activities. The last one that is identifying
physical resource which means arranging equipment’s and tools from the market or industry.
7: Why do we need to consider any permits and licences that may be required for new
activity?
Answer: according to Alsos et al. (2016), to start a new business licence are necessary for the
area where the establishment has been set-up. The permits are important for doing business
effectively without any hindrance such as government policy, regulations, and rules, etc.
8: Write a business plan
XYZ is a retail outlet which is a kind of departmental store situated in Perth, Australia
and the proprietor of the store is James.
Business products and services: the products which will be available in the stores are
jewellery, electronic goods, toiletries, sportswear, sports equipment, books, toys, apparel.
Company will market its products online as well as by distributing samples, pamphlet’s. The
important financial indicators of the business to analyse the performance of business would
be current ratio, liquidity ratio, accounts payable ratio, accounts receivable ratio. To increase
the awareness of brand the management will apply the process of branded packaging. The
other process to increase the brand image is to use google Adsense, and also can take the help
of twitter. The retail outlet will be selling high-quality products and will also sell innovative
products at a cost that would be affordable for the citizens of Australia. Sales will be carried
at a discount rate and the potential customers of the outlet will be given gifts and extra
discount so that the business can be able to retain their customers. The outlet will take active
participation in social responsibility so that it can fulfil the social needs because society
provides an environment to work and they also provide cordial atmosphere for the

organization to work effectively. To build a community awareness the owner should offer
incentives and gifts to the consumer and also opening party should be hosted by the
proprietor. Another way of creating commodity awareness is through the use of social
network. There are different ways to create branding of new business such as by
understanding the target market. The logo of the company should look different from other
companies. The new business should not initially think of making profit only. Therefore, they
should initially sell their product at low cost so that they can attract customer for the new
business. They should provide high quality of product at least cost. Company should set up a
grievances committee for the employees and the environment of workforce should be such
that the employees feel comfortable at their workplace. To build the value of business
proprietor should follow the strategy of triple bottom line that is they should analyse the
performance of the business by contributing their time and money toward environmental and
social aspects.
Task 2: Monitor performance
1. Why do we communicate business plans to all relevant parties and ensure
performance requirements and time frames?
Answer: the business plan should be communicated to all the relevant parties so that
they can assist the business in doing business smoothly and also helps to make better
decisions that would be fruitful for the organization. They provide necessary
resources as well as innovative ideas which will be beneficial for business.
2. How do we ensure skilled labour is available to implement plan?
Answer: Before setting the development plan of employee the management should
align the needs of the organizations with the needs of the employees. The next step is
that the management should communicate with the employees and explain the goals

and targets to them, and then the employees should be well trained so that they can
effectively implement the strategies of business plan.
3. How do we ensure timely reports on all key aspects of business
Answer: According to Porter, & Kramer (2019), the business plan should be written
in a particular format and it should include a time frame to complete a task and the
actions and responsibilities should also be mentioned in the business plan. If these
things are implemented in the business plan then the management can ensure report in
a particular time frame.
4. Report system failures, product failures and variances to the business plan as they
occur
Answer: If the business plan fails then it should be immediately changed or modified
and then it should be implemented again and monitored and reviewed by the
controlling department. According to Mueller & Shepherd (2016), whenever there is a
system failure in the organizations it should be immediately reported to the higher
authority or the controlling department so that they can fix the system as earlier as
possible so that the work can be carried in effectively and smoothly.
Task 3: Respond to data performance
1. Why do we analyse performance against planned objectives?
Answer: As opined by Reynolds (2016), the performances are measured against
planned objective so that sound financial and operational decisions can be taken for
the business. The performances are also measured so that to ensure that the desired
objectives of the business have been fulfilled or not and also to examine the strategy
or method used in the business.
2. How do we review performance indicators and refine them if necessary?

Answer: there are two types of performance indicators one is internal and the other is
external. They are compared with the performance of own company with the other
companies. According to Prajogo (2016), if the organization is working effectively
and can meet the internal goals as well as external goals then the performance
indicators can be used to so that to compare the performance of one company with the
benchmark company.
3. Ensure groups and individuals contributing to under performance are coached, and
provide training where appropriate
Answer: training and seminars should be conducted inside the organization so that the
employees can be able to provide efficient services to the organization without
wasting any resources. The employees should be motivated so that they can assist the
business to attain the desired objectives and goals of the business
4. Why do we review system processes and work methods regularly as part of
continuous improvement?
Answer: the method of work and the system process are reviewed regularly so that if
the process needs any modifications or improvement the processes are modified
accordingly. There are different strategies which state that continuous improvement in
the methods and process are necessary for the business because it helps to achieve the
short-term as well as long term objectives of the organization. The different strategies
such as six sigma, benchmarking, and total quality management (TQM) specifies that
the process of the business should be reviewed continuously to enhance the value of
business.
Business plan
Statement of Funding Requirement

XYZ Departmental Store
Australia
Sources of Funds AUD
Own Contribution 150,000
Bank Loan 70,000
Loan from Relatives 30,000
Total Fund requirement 250,000
Fund Expenses AUD
Furniture 50,000
Inventories 118,750
Store Opening Event 11,750
Employee cost 10,000
Telephone bills 12,000
Electricity bills 15,000
Advertisements expenses 19,000
Rent 5,000
Insurance 1,000
Office stationaries 7,500
Total Expenses 250,000
Statement Showing Sales Forecast
XYZ Departmental Store
Australia

Particulars
Year 1 Year 2 Year 3
(in Units) (in AUD) (in Units) (in AUD) (in Units)
(in
AUD)
Electronic appliances 100 10,000 115 11,500 125 12,500
Jewelries and apparels 500 25,000 575 28,750 625 31,250
Sports wear 1,000 25,000 1,150 28,750 1,250 31,250
Books 2,000 10,000 2,300 11,500 2,500 12,500
Toys 1,500 22,500 1,725 25,875 1,875 28,125
Cosmetics 5,000 50,000 5,750 57,500 6,250 62,500
Toiletries 3,500 70,000 4,025 80,500 4,375 87,500
CDs & DVDs 2,500 25,000 2,875 28,750 3,125 31,250
Total Sales 16,100 237,500 18,515 273,125 20,125 296,875
Year 1 Year 2 Year 3
-
50,000
100,000
150,000
200,000
250,000
300,000
CDs & DVDs
Toiletries
Cosmetics
Toys
Books
Sports wear
Jewellaries and apparels
Electronic appliances

Statement of Profit and Loss (Projected)
XYZ Departmental Store
Australia
Particulars Year 1 Year 2 Year 3
Sales 237,500 273,125 296,875
Cost of Sales 118,750 136,563 148,438
Gross Profit (Gross Profit Margin @50%) 118,750 136,563 148,438
Employee cost 10,000 13,000 15,000
Depreciation 5,500 4,950 4,455
Telephone bills 12,000 10,000 7,000
Electricity bills 15,000 14,000 13,500
Advertisements expenses 19,000 15,000 8,000
Rent 5,000 5,000 6,000
Insurance 1,000 1,000 1,000
Maintenance and repairs 2,000 2,000 2,000
Office stationaries 7,500 6,500 4,000
Other general expenses 5,822 4,036 3,009

Total Operating Expenses 82,822 75,486 63,964
Operating Profit 35,928 61,077 84,474
Interest expenses 7,000 6,000 15,000
Profit before deducting tax 28,928 55,077 69,474
Tax @30% 8,678.40 16,522.95 20,842
Profit after deducting tax 20,250 38,554 48,631
Projection of Cash Flow
XYZ Departmental Store
Australia
Particulars Year 1 Year 2 Year 3
Opening Balance 10,000 120,250 148,803
Cash Incoming
Cash Sales 237,500 273,125 296,875
Bank loan received 70,000 - 100,000
Loan from relative 30,000 - -
Total Incoming 337,500 273,125 396,875
Cash Outgoing
Purchases 118,750 136,563 148,438
Bank loan payment 10,000 10,000 20,000

Salaries and wages 10,000 13,000 15,000
Depreciation 5,500 4,950 4,455
Telephone bills 12,000 10,000 7,000
Electricity bills 15,000 14,000 13,500
Advertisements 19,000 15,000 8,000
Rent 5,000 5,000 6,000
Insurance 1,000 1,000 1,000
Maintenance and Repairs 2,000 2,000 2,000
Office stationaries 7,500 6,500 4,000
Interest 7,000 6,000 15,000
Tax 8,678 16,523 20,842
Others 5,822 4,036 3,009
Total Outgoing 227,250 244,571 268,244
Closing Balance 120,250 148,803 277,435
Balance Sheet (Projected)
XYZ Departmental Store
Australia
Particulars
Year
1 Year 2
Year
3
A. Equity and Capital
Owner's Capital 150,000 150,000 150,000
Reserves
Profit for the year 20,250 38,554 48,631

Total (A) 170,250 188,554 198,631
B. Non-current Liabilities
Long-term liabilities
Bank Loan@10% 60,000 50,000 130,000
Total (B) 60,000 50,000 130,000
C. Current Liabilities
Short-term liabilities
Loan from Relatives (Interest free) 25,000 20,000 15,000
Total (C) 25,000 20,000 15,000
Total Equity and Liabilities
(A+B+C) 255,250 258,554 343,631
D. Non-current Assets
Property, equipment, and plant
Furniture (less depreciation) 55,000 49,500 44,550
Total (D) 55,000 49,500 44,550
E. Current Assets
Inventories 80,000 60,250 21,647
Cash Balance 120,250 148,803 277,435
Total (E) 200,250 209,053 299,082
Total Assets 255,250 258,553 343,632

General Assumptions
XYZ Departmental Store
Australia
Particulars
Year
1
Year
2
Year
3
Bank Loan Interest Rate 10% 10% 10%
Tax Rate 30% 30% 30%
Sales Growth Rate 0 15% 25%

References
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and external corporate social responsibility influence organizational identification and
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Gerasymenko, V., De Clercq, D., & Sapienza, H. J. (2015). Changing the business model:
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Porter, M. E., & Kramer, M. R. (2019). Creating shared value. In Managing sustainable
business (pp. 323-346). Springer, Dordrecht.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business
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Economics, 171, 241-249.
Reynolds, P. D. (2016). Start-up actions and outcomes: What entrepreneurs do to reach
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Mueller, B. A., & Shepherd, D. A. (2016). Making the most of failure experiences: Exploring
the relationship between business failure and the identification of business
opportunities. Entrepreneurship Theory and Practice, 40(3), 457-487.