BSBMGT517 Manage Operational Plan: Diploma of Finance & Mortgage

This report provides a detailed operational plan within the context of a Diploma of Finance and Mortgage Broking. It covers essential elements such as models and methods for operational plans, the role of an operational plan in achieving organizational objectives, a description of the zero-based budgeting process, alternative approaches for developing key performance indicators (KPIs) using the SMART method, and the relevant legislative and regulatory context. The report also addresses organizational policies, practices, and procedures directly related to the operational plan, and includes a SWOT analysis and viability assessment of a proposed cycling tour business named 'Cycling Zone,' complete with mission and vision statements, draft values, an organizational chart, and a management plan for the marketing unit. Furthermore, it identifies key result areas (KRAs), outlines an operational plan to achieve these KRAs, discusses the resources required for implementation, and presents key milestones, monitoring checklists, contingency plans, and intellectual property protection strategies. The document concludes with answers to specific questions related to managing operational plans.

Running head: Diploma of finance and mortgage broking
Diploma of finance and mortgage broking
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Running head: Diploma of finance and mortgage broking
Executive Summary
Operational planning is the procedure of planning the strategic goals in the context of tactical
goals and objectives. It further describes the conditions for success along with the milestones and
portion of a strategic plan to be executed in a particular fiscal year.
It forms the basis for justification of the yearly operating budget request. For every mortgage
broker, the operational plan is the safest way of leading the business towards success. It
represents the framework within which the mortgage broker shall operate.
So, the following report will inform the readers about various aspects of operational plans. It
shall also define one of the budgeting processes to be used by the organization.
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Running head: Diploma of finance and mortgage broking
Contents
Written Activity...........................................................................................................................................3
Introduction.................................................................................................................................................3
Models and methods for operational plans..................................................................................................3
Role of an operational plan in achieving the organization’s objectives.......................................................4
Description of a budgeting process used by the organization......................................................................5
Alternative approaches for developing key performance indicators to meet business objectives...............6
The legislative and regulatory context relevant to the operational plan of the organization........................6
Organization’s Policies, Practices and Procedures that directly relate to the Operational Plan....................7
Conclusion...................................................................................................................................................8
Observation/Demonstration.........................................................................................................................9
SWOT analysis of the proposed tour business.........................................................................................9
Viability of the proposed business...........................................................................................................9
Name of the business.............................................................................................................................10
Mission Statement for the business........................................................................................................10
Vision Statement...................................................................................................................................10
Draft Values Statement of the business.................................................................................................10
Organization Chart indicating the functional units of the business.......................................................11
Draft Management Plan of managing the marketing unit of ‘Cycling Zone’.........................................11
Key Result Areas (KRAs) for the Unit/Team........................................................................................13
Operational Plan that will achieve these 2 KRA....................................................................................13
Resources Required to Implement the Operational Plan.......................................................................13
Resources needed to achieve the goal...................................................................................................14
Strategy for obtaining any identified additional resources including approvals.....................................14
Key Milestones in the Implementation of the Operational Plan.............................................................16
A checklist for monitoring the progress and effectiveness of the Operational Plan..............................18
Methods to monitor and review the implementation of the Operational Plan........................................18
List of contingency plans for the operations..........................................................................................19
Plan for protecting the intellectual property..........................................................................................20
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Running head: Diploma of finance and mortgage broking
Questions...................................................................................................................................................21
Answer to Q1.........................................................................................................................................21
Answer to Q2.........................................................................................................................................21
Answer to Q3.........................................................................................................................................21
Answer to Q4.........................................................................................................................................22
Answer to Q5.........................................................................................................................................22
Answer to Q6.........................................................................................................................................22
Answer to Q7.........................................................................................................................................22
Answer to Q8.........................................................................................................................................23
References.................................................................................................................................................24
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Running head: Diploma of finance and mortgage broking
Written Activity
Introduction
Operational plan defines the milestones and conditions within which a portion of the strategic
plan shall be operated during a given time period. It is the procedure for planning the strategic
goals in the context of tactical objectives.
Thus, they form the basis to justify the yearly operating budget request. So, a five-year strategic
plan would require five operational plans sponsored by five operating budgets. In the context of
mortgage broking, the operational plan consists of strategies or tasks to be accomplished. 1
It shall also mention the individuals having the responsibility of each task and the timelines
within which they should be completed. The number of financial resources shall also be revealed
for completing the task.
So, this report shall discuss the various aspects of operational plans in the context of mortgage
broking. It shall also define one of the budgeting processes to be used by the organization.
Models and methods for operational plans
An operational plan can be subdivided into two forms comprising of a single use plan and
standing plan . A single-use plan can be developed for carrying a course of action which shall not
be repeated in the future. These plans are used for achieving the unique aims of the business.
1 Safari Books Online, The Role Of Operations Strategy (2019)< https://www.oreilly.com/library/view/operations-
management-an/9781118122679/ch2-sec004.html >
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Running head: Diploma of finance and mortgage broking
For example, if the mortgage brokers have a single event coming up, then they can use a single
plan for covering everything relating to that event. On the other hand, a standing plan has been
developed for activities occurring repeatedly over a period of time.
They are intended for solving the repetitive nature of problems of the business. The standing
operational plan shall advise the mortgage brokers about the solutions of the repetitive problems
which arise in the everyday routine of their business2.
Role of an operational plan in achieving the organization’s objectives
The operational plan provides specific information to people so that they can perform specific
tasks which are essential for running a company. The mortgage brokers should refer to the
operational plan frequently for executing their routine activities3.
The role of the operational plan is to provide the strategies and tasks to be undertaken. It also
mentions the people accountable for executing those strategies and tasks. It also mentions the
timelines within which the strategies and tasks must be executed.
2 John M. Bryson, Strategic planning for public and nonprofit organizations: A guide to strengthening and
sustaining organizational achievement (John Wiley & Sons., 2018) 1-50.
3 Malcolm McDonald and Hugh Wilson , Marketing Plans: How to prepare them, how to profit from them(John
Wiley & Sons., 2016) 1-10.
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It also states the number of financial resources which should be provided to complete a particular
strategy or task. So, the basic role of the operational plan is to provide a clear picture of the
responsibilities and tasks to the personnel of the organization.
Description of a budgeting process used by the organization
Zero-based budgeting is one of the commonly used budgeting processes used by the
organization. It starts with the supposition that the budgets of all the departments are zero. They
are to be rebuilt from scratch.
In this context, none of the expenditures are okayed automatically. Its aim to avoid all the
unwanted expenditures which are not considered essential for the successful operation of the
company. It can prove beneficial to use when there is an urgent requirement for cost-cutting. For
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Running head: Diploma of finance and mortgage broking
example, when the company is undergoing any financial restructuring, then it is required to
reduce its budget. 4
Alternative approaches for developing key performance indicators to meet business
objectives
SMART is one of the methods which can be used for developing key performance indicators for
meeting the business objectives. SMART is a method for setting the criteria for developing key
performance indicators for the business.
The results must be Specific, Measurable, Achievable, Relevant and Time –bound.
Specific – Are the Key Performance Indicators well defined and comprehended by everyone in a
team?
Measurable –Can success and failure be measured?
Achievable- Is the operational plan realistic?
Relevant- Are the Key Performance Indicator important for accomplishing the objective?
Time-bound: Are the timelines set for accomplishing the goal5?
4 Ekpenyong E. Ekanem ,’Zero-based budgeting as a management tool for effective university budget
implementation in university of Calabar, Nigeria’(2014) 2(11) European Journal of Business and Social Science 11
5 Kotler, Philip et al, Marketing(Pearson Higher Education AU ,2015) 1-10
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Running head: Diploma of finance and mortgage broking
The legislative and regulatory context relevant to the operational plan of the organization
The compliance plan of the company engaged in mortgage broking should comprise of methods
for meeting the credit obligations under the legislation. The checklist for compliance with the
credit legislation in Australia is as follows:
The management shall keep the records of the credit business which explains the transactions
and the financial position of the business as per Section 88 of the National Credit Act. The
director or senior employee of the company is responsible for maintaining the records.
Prior to providing credit assistance for a credit contract, the representative dealing with the
consumer must make a preliminary assessment of the suitability of the credit contract as per
sections 115-117 of the National Credit Act.It should be made within 90 days prior to the
assistance day.
Furthermore, he must inquire about the requirements, objectives and financial situation of the
consumer. The credit licensees are required to lodge a compliance certificate on a yearly basis as
per section 53 of the National Credit Act.
The credit licensees must ensure that people and employees are authorized to act on behalf of the
company. They must be trained and competent enough to engage themselves in credit activities.
For this purpose, a training register should also be maintained for keeping a track of the training.
Lastly, a risk management plan and checklist for client file should also be maintained by the
company.6
6 ASIC, Credit (2014) <https://asic.gov.au/regulatory-resources/credit/ >
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Running head: Diploma of finance and mortgage broking
Organization’s Policies, Practices and Procedures that directly relate to the Operational
Plan
The policies of the mortgage broking company must comprise of an effective compliance
program which can assist the staff in comprehending the obligations along with decreasing the
risks of breaching them. In this regard, the company should have a documented schedule for
testing against these policies.
Preparation and execution of a risk management plan are considered a good practice for the
broking business. It is also in compliance with the National Consumer Credit Protection Act
2009. The company must also have an effective financial resource and HR recruitment policy to
meet its objectives.
Conclusion
Hence to conclude, it can be said that an operational plan consists of a highly detailed plan which
states that how a team shall contribute to the accomplishment of the goals of the company. It
maps out the routine tasks required to run the business.
It specifies the policies and procedures for utilizing the resources of the company in order to
execute its long term competitive strategies. Hence the operational plan must be aligned with the
business strategies so that the company can achieve its long term plans.
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Running head: Diploma of finance and mortgage broking
Observation/Demonstration
The SWOT analysis of the proposed tour business
Strengths: The cycling tour business is proposed to be executed in the area of Tasmania, Clair
valleys in Southern Australia, etc. These areas serve as a hub in terms of support activities and
infrastructure. They also serve as a center for excellence for adventurous activities including
cycling7.
Weaknesses: There is a need for economic data and branding as it is a new and emerging
business. The business is required to communicate more with its consumers at large.
Opportunities: There is a lot of scope in the cycling tour business as it is an emerging business. It
can promote itself through media and various community events.
Threats: Lack of funds can prove to be the greatest threat to the business. There are chances of
volunteer burnout due to the fluctuating nature of revenues.
The viability of the proposed business
People who ride bikes, purchase them too. People riding bikes are more likely to repeat the
adventurous trips. People who ride bikes on adventurous tours buy food, incur travel costs and
pay for their lodging expenses.
7 ACT Government , CBR Cycle Tourism Strategy(2018)<
https://tourism.act.gov.au/wp-content/uploads/2018/06/CBR_Cycle_strategy_WEB.pdf >
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Running head: Diploma of finance and mortgage broking
So, this business can prove to be a profitable project for all the stakeholders. The risk
assessment includes preparing the business to respond to its exposure of risks along with taking
required actions to get back to business.8
Name of the business
The team has agreed to name the business as ‘Cycling Zone’.
Mission Statement for the business
Our mission is to get the people on bikes.We want to foster bicycling as a source of adventure
for the cyclists. It shall cater a means to address the disparities of health and wealth in the
community. We want to empower the cyclists so that they can manage their health,
transportation along with developing a sense for their community .9
Vision Statement
We want to see many franchisees of ‘Cycling Zone ‘ all over the world in the next five years.
Every center shall have its own focus but mainly will serve as a hub for access for bike and
promotion for the adventure trips to be done on bikes.
8 TRUiC ,Starting A Bike Tour Company (2019) <https://www.finder.com.au/business-loan-approval>
9 Nico P. Pronk , Chillstrom Simon Beth and Jason Gaikowski ,‘Bicycling to work at Quality Bicycle Products: A
case example for active transportation in the business and industry sector’(2014) 18(5) ACSM's Health & Fitness
Journal 49
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