BSB61015 Advanced Diploma: BSBMGT608 Innovation and Improvement Report

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This report analyzes a case study of the A.C. Gilbert Company, focusing on the implementation of an innovative process to improve manufacturing efficiencies. The report addresses key systems and processes like supply chain, operational systems, and product/service delivery, developing a review strategy with KRAs, KPIs, and performance review processes. It analyzes performance data, identifies variances, and discusses trends. The report evaluates the company's strengths and weaknesses, identifies missed opportunities, and proposes an action plan. It also explores the potential use of specialist advice for technological advancements and electronic commerce opportunities, applying quality management and continuous improvement theory throughout the analysis. The report provides a comprehensive overview of the company's operations and suggests improvements to optimize business performance.
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Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Assessment Submission Sheet
Course BSB61015 Advanced Diploma of Leadership and Management
Unit Code BSBMGT608
Unit Name Manage innovation and continuous improvement
Assessor
Name
Student
Name
Student ID
Date Due
Please read and sign this assessment coversheet and submit it together with your assessment to
your Assessor by the due date.
Student Declaration
I declare that the work submitted is my own, and has not been copied or plagiarised from any
person or source.
I have read the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the
Student Handbook and I understand all the rules and guidelines for undertaking assessments.
I understand that by typing my full name in the student field this is equivalent to a hand-written
signature.
I give permission for my assessment material to be used for continuous improvement
purposes.
Student
Signature
Date
Submitted
Assessor Use Only
Assessment Items Result
Task 1 Case study S NS
Task 2 Report S NS
Task 3 Report S NS
Final Result for this unit C NYC
Student Declaration: I declare that I have been
assessed in this unit, and I have been advised of
my result. I am also aware of my appeal rights.
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have
provided appropriate feedback
Signature Signatur
e
Date
AIC-UP- BSBMGT608 –V3.0 Page 1 of 11
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Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Assessor Marking and Feedback Form
Assessment Task Satisfactory
Yes No Comments
Task 1
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Task 2
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Task 3
Question 1
Question 2
Question 3
Question 4
Question 5
Assessor’s Final Comments
AIC-UP- BSBMGT608 –V3.0 Page 2 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Task 1
Assessment Instructions
This is an individual assessment. Based on the case study provided, you will write a report in which you
outline a performance and sustainability review strategy, evaluate the strategy, analyse performance
reports and trends, and describe how you would seek advice from specialists to identify technological
solutions.
Procedure
Read the case study ‘AC Gilbert’ in Appendix 1 and analyse the information provided and prepare a report
addressing the following six (6) points and submit your report to your assessor as per the specifications
below. Ensure you keep a copy of all work submitted for your records
1. Describe the key systems and processes used by AC Gilbert:
a. Supply chain
b. Operational systems
c. Product/service delivery.
2. Analyse the three key systems and processes and develop the elements of
your review strategy: applying your knowledge of quality management and
continuous improvement theory, develop performance and sustainability
measures, assessment tools and techniques that you would use to evaluate
the effectiveness of the three key systems and processes.
In your report, include if applicable:
a. Lists of key result areas (KRAs)
b. Lists of key performance indicators (KPIs)
c. A description of performance review processes
d. A sample service level agreement.
3. Using the data provided for results up to 1966, for each of the three key
systems, describe how each of your measures, assessment tools and
techniques would monitor performance. Include specific examples or
hypothetical cases to test the effectiveness of the elements of your review
strategy. Write an evaluation of the effectiveness of your review strategy.
Suggest improvements to your strategy.
Refer to quality management and continuous improvement theory.
4. Using the data provided for results up to 1966, analyse the variances from
plans and targets for the key result areas (KRAs). Include discussion on
performance with regards to:
a. quality – design/manufacturing
b. sales
c. profit
d. supply chain performance (delivery)
e. business growth – staff and management performance and/or turnover.
AIC-UP- BSBMGT608 –V3.0 Page 3 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
5. Discuss trends relevant to the organisation. What trends did AC Gilbert fail to
identify in the late 1950s?
Consider the strengths and weaknesses of the AC Gilbert Company prior to
1960. Discuss the following in your report:
a. market share
b. reputation
c. stability
d. profit
e. sales
f. ability to adapt to change
g. customer service standards
h. innovation
i. employee performance
j. production and manufacturing.
Apply creativity skills to identify missed opportunities to improve business
performance. Describe at least one missed opportunity in detail. Include an
action plan for implementing the improvement in your report.
6. Imagine the company did not close in 1967 and has somehow managed to
continue operations until today. Discuss the possible use of advice from
specialists. What specialists could be consulted to advise on and identify new
technology or electronic commerce opportunities? Consider:
a. Internal – engineers, production staff, manufacturing staff, sales
personnel, human resources personnel.
b. External – marketing consultants, advertising experts, engineers or
designers, IT consultants.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
a written report submitted within agreed timeframe.
Question 1
a. Supply Chain: The management of A.C. Gilbert aims to effectively follow a distribution system so
that the business can reach out to most of the customers. The management distributes to
customers on order basis. This is the responsibility of the sales teams while the distribution team
is responsible for arranging the transport from the warehouse where the goods are initially stored.
The retailers then sold the goods to the customers directly. The supply chain which is followed by
the business is appropriate as the same depends on the demands of the customers.
b. Operational System: The operational process of the business mainly focused on reducing the
costs of the business and thereby also increasing the expenses on advertisement in order to
properly promote the product in the market. The operational process which is followed by the
AIC-UP- BSBMGT608 –V3.0 Page 4 of 11
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Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
management is to ensure that the business is able to adapt to changes which have been brought
about in the toy industry. The management of the company first of all puts emphasis on effective
planning so as to ensure that the visions and models for the toys can be converted into actual
toys for the company. The management orders the raw materials which are required by the
business on the basis of the toy which is to be made by the business. The review of the process
is the responsibility of the top level management of the company.
c. Product/Service Delivery: After the completion of the manufacturing process, the toys are
transferred to the care of the distribution unit. The management follows a two way process for
distribution of toys which are direct demand from the customers and orders from retailers. The
sales team secures the customers and ensure that the sales takes place. In addition to this, they
also focus on appropriate marketing for the products. The company is known to maintain its
reputation which it has gained from effective consumer services which is demonstrated from the
sales record which is maintained by the business.
Question 2
In order to effectively review the operational process of the business and also to ensure that the same
has been implemented by the business following measures are adopted by the business and the same
are disclosed below:
KRAs: The key results area are considered to be important for the purpose of measuring the
performance of the business in terms of quality of the products, cost per products, raw material
consumed. One area which can also be included in KRAs of a business is the efficiency level of
the workers. In the case of sales or delivery unit of the business, efficiency level of the team is
considered to be a KRA which can be improved by proper training program in the business.
KPIs: The key performance indicators of the business varies from business to business but the
common KPIs are profits, increase in the sales volume of the company, ease of availability of
financing sources. In case of product delivery service, the KPIs would be the reputational status
which is enjoyed by the business and efficiency in maintain customers relations.
Financial Performance of the Business: The financial performance of the business can be
reviewed with some of the financial estimates which are considered to be important such as net
profit, share value of the company, returns on investments. The management also has to option
to compute key ratios on which the performance of the business can be measured.
Sample Service Level Agreement: This is referred to as a service agreement which is allowed
to the customer by the service provider. . On the basis of such ab agreement transactions of
goods and services are provided to customers. A sample service level agreement is shown
below:
Authority Name and Signature Date
Sales Manager 15.06.18
Marketing Executives 15.06.18
Question 3
The monitoring of the business of AC Gilbert can be done effectively by following the following tools
which are discussed below:
Budgets: One of the effective tools which is used for monitoring performance and controlling the
activities of the business is budget. The targets are set by the management and these targets
are too be followed by the employees of the business.
Performance reports: This is a report which are prepared by each department under the
operational structure of the company on a monthly or weekly basis. This is also used for
exercising control over the operations of the business.
In case of product delivery services which is followed by the business, the following control measures
are followed:
Customer Satisfaction Index: This is an index which shows the satisfaction level of the
customers which are associated with the business. This index is an efficient means for receiving
feedbacks from the customers and also involves rating of the services which are provided by the
customers.
Number of Returns: A report which shows the returns of goods from customers or retailers for
poor quality, defective products or bad services is good source for identifying the deficiencies of
AIC-UP- BSBMGT608 –V3.0 Page 5 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
processes.
The important role of the business is to identify the key measures which are associated with the
business and on the basis of the same weaknesses or strengths of the internal management system is
judged. In addition to this, the business can use policies and tools such as Budgets, ratio analysis,
trend analysis, customer satisfaction index to review the overall performance of the business. The
improvements can be provided:
Appointment of quality control supervisors who would be monitoring the process of the
business.
Regular internal checks would promote monitoring, transparency and accountability.
Question 4
The variances which can be identified in the KRAs of the business are listed below:
Quality and Design: The quality of the products which is offered by the business are of good
quality and therefore, the same are also popular among the consumers of the business. In case
any variances arises than the same can be measured by quality control checks.
Sales: The sales of the business has decreased which is mianly due to the change in taste and
preference pattern of the consumers and changes which has taken place in the market.
Profits: As shown in the case study the sales of the business declines and thereby the business
earns losses. The business earned a loss of $ 5.7 million in 1963. Therefore, variances arise as
the plan of the management was to earn a revenue of $ 20 million in 1963.
Product Delivery Service: The delivery services as demonstrated by the case study shows the
structure for delivery services is appropriate for the management and therefore no variances
can be expected from such an area.
Business Growth: As per the case study, after 1960, the business started to change the product
line and further diversify the business which was expected to bring about growth and
development in the business but repetitive losses suffered by the company lowered the market
valuation of the business, hence the planned target of growth could not be achieved.
Question 5
a. Market Share: The business had an immensely strong market reputation for toys and the train
sets manufactured and therefore the business had high market valuation.
b. Reputation: This was one of the strengths of the business as the company enjoyed good
reputation due to the effective after sales services provided by the business.
c. Stability: Due to the intense competition, the market was dynamic and as per the analysis of the
case study the business was stable in the fifties.
d. Profit: As per the case study, the company was earning appropriate profits prior to 1960 and the
business had created a brand name for itself in the market.
e. Sales: The sales which was achieved by the business was appropriate as the products offered
by the A.C. Gilbert were in demand and also the after sales services were excellent and hence
this can be considered to be a strength of the business.
f. Ability to adapt to changes: The ability of the business to adapt to changes is a weakness as the
business has one major product line which is engineer sets.
g. Customer service standards: The business has an effective policy regarding customer services
and therefore such can be considered as strength of the business.
h. Innovation: The business does not make changes in product line and therefore from the
innovative point of view such can be considered as a weakness.
i. Employee Performance: The performance of the employees as shown in the case study shows
that the employees are a strength in the business management.
j. Production and Manufacturing: The production and manufacturing system of the company can
be considered to be a strength of the business.
Question 6
In case the business had existed and adapted to the changes in the market place, the management
should have seek advice from marketing professionals so as to come up with innovative strategies to
effectively promote the products and also attract the generation to the products offered by the business.
In addition to this, the management should have set up a R&D department for innovation and further
developments of products offered by the business.
AIC-UP- BSBMGT608 –V3.0 Page 6 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
AIC-UP- BSBMGT608 –V3.0 Page 7 of 11
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Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Task 2
Assessment Instructions
Based on the case study provided in Task 1, you will develop a performance improvement strategy,
brief a team of peers on the strategy, develop the strategy and encourage innovation within the group
session, and incorporate results of consultation into strategy. You will develop risk and cost-benefit
analyses which you will submit to your assessor for approval.
Procedure
Read the case study ‘A. C. Gilbert’ (Task 1). Assume no improvements have been made and the
company is still operating in the same way today as when it closed in 1967.
Consider the following scenario:
Your manager, as per organisational processes for continuous improvement, has asked you to develop
a performance improvement strategy, brief the management team, develop the idea with the team, seek
the team’s approval and seek final approval from your manager.
1. Develop a one page performance improvement strategy related to competitiveness. Include:
a. strategic goals
b. description of proposed process or amendment to current process
c. brief explanation of how proposal will improve performance and competitiveness
d. KRAs, KPIs, targets.
2. Prepare to deliver a 20–30 minute management team briefing and consultation session:
a. distribute your proposed strategies to team (team members may be other learners, or other
group approved by assessor)
b. ask team to consider strategy, including:
i. pros and cons
ii. changes or improvements to strategy
iii. preparing to discuss changes or improvements at team briefing and consultation
session
c. agree time for session (agree time with assessor to ensure assessor can observe session).
3. Lead session.
a. discuss options and work through group suggestions
b. use creative techniques to generate or develop ideas
c. work through implications of suggestions to trial them
d. encourage group to point out issues or potential problems during trailing
e. if and when applicable, accept failure of ideas and recognise successful ideas.
4. Summarise results of session and seek group’s approval for amended strategy.
5. Incorporate results of session into revised strategy.
6. Develop a risk analysis for strategy.
7. Develop a cost-benefit analysis for strategy.
AIC-UP- BSBMGT608 –V3.0 Page 8 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
8. Arrange a time to meet with assessor (as your manager) to discuss strategy, risk and cost-benefit
analyses. Explain costs and benefits. Seek approval for strategy.
9. Submit documents to your assessor as per the specifications below. Ensure you keep a copy of
all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
one page performance improvement strategy
20–30 minute team briefing and consultation session (team members may be other learners, or
other group approved by assessor)
revised one page performance improvement strategy
written risk analysis
written cost-benefit analysis.
AIC-UP- BSBMGT608 –V3.0 Page 9 of 11
Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Performance Improvement Strategy
The performance improvement strategies which are formulated by the business is for the purpose of
achieving the goals and objectives of the business:
Strategic Goals: The management of the company needs to focus on developing proper
strategies so that proper management of the operations is ensured . In order to do so the
business needs to conduct a market analysis which can include SWOT analysis and
Benchmarking techniques to identify the strengths of the competitors and formulate proper
strategies so that goals and objectives of the business. The operational structure of the business
needs to be improved following appropriate strategies. Business process re-engineering can be
another option for assessing the risks.
Description of Proposed Process: The management of the company needs to focus on
making changes in the operational process of the business. The management of the company
needs to incorporate new products and also make changes in the product of the business. In
addition to this a cost effective process is also suggested to the business.
Description of the Improvements Expected: The strategy of further diversifying the product
line and use of effective advertisement will help the management of the company to achieve
success in the market in terms of revenue generation. The management needs to formulate an
aggressive marketing plan which involves using television media, social media as well as
newspaper and magazine. Effective promotion of the activities of the business is one way to
adresss the changes which are taking place in the market.
KRAs, KPIs and Targets: The key result areas on which the management of the company
would which is formulated by the business will be sales, profits, variety of products, customer
feedbacks. The key performance indicators of the business will be improvements in overall sales
volume of the business, increase in profitability of the business, diversification and quality
improvements of the product lines which are offered by the company
Individual Briefing and Consultation Services
The plans which are formulated by the business needs to be according to the nature of the operations
of the business and the same needs to be communicated to the employees of the business. This can
be done in an annual or monthly meeting where the senior management can meet the superviors of
each department and engage in discussion regarding the pklan which is to be formulated. In such a
meeting the management can introduce a plan for improving the business structure and make wide
spreads improvements. The management needs to inform the marketing depart about the aggressive
sales strategy of the business and the role of the marketing executives and the sales team can be
explained with a help of presentation. The senior management would also be assigning new roles to
employees so that their responsibilities can be carried out effectively.
Analysis of the Strategy
The management then needs to encourage the employees of the business to consider the strategy
which is formulated and provide any strengths, weaknesses, suggestions and feedbacks which are
associated with the strategy. The supervisors are to review the roles which each department needs to
play in the improvement strategy which is formulated by the management and ask for clarification in
case of any doubt.
Cost Benefit Analysis
The plans which the senior management has developed for A.C Gilbert is sound one as it responds to
the deficiencies which the business was unable to cope up previously. Cost Benefit Analysis of the
business will allow the first to calculate the breakeven point of sales which the business needs to
achieve in order to continue its operations. This would also help the business in planning and
implementing different activities of the business. In addition to this, the viability of the activity would also
be assessed on the basis of cost and benefits,
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Document Page
Australian Ideal College
RTO No.: 91679 CRICOS Provider Code: 03053G ABN: 15 126 592 756
Sydney Campus: Level 7 & 8, 75 King St, Sydney NSW 2000
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000
Hobart Campus: Ground Floor, 116 Murray St, Hobart TAS 7000
Tel: +61-2-9262 2968 Fax: +61-2-9262 2938
Email: info@aic.edu.au Website: www.aic.edu.auEducating for Excellence
Task 3
Assessment Instructions
This is an individual assessment. Based on part 1 of the case study provided, you will develop an
implementation plan to embed a new process. Based on part 2 of the case study, you will need to
amend your plan to ensure success.
Procedure
Turn to the case study ‘implement an innovative process’ (Appendix 1) and submit documents to your
assessor as per the specifications below. Ensure you keep a copy of all work submitted for your
records.
Review ‘Part 1 – Implementation’. Examine all aspects of the new process to be implemented.
1. Develop action plans for 1) transition, and 2) communication. In each action plan, include:
a. activities, objectives, measures (KPIs), timeframes
b. activities to promote the process and sustainability
c. activities to reduce any negative impact on people.
2. Develop at least two contingency plans related to possible implementation issues you foresee in
relation to activities in your action plans.
3. Review ‘Part 2 – Follow up’. Examine implementation issues and failures.
4. Amend your action plans and contingency plans to address implementation failures.
5. Develop a schedule for evaluation and continuous improvement. Include regularly scheduled:
a. evaluation activities, regularly repeated over a suitable timeframe
b. evaluation activities to capture learnings from all work activities
c. activities to embed learning into work processes.
To be deemed competent you will need to successfully demonstrate the following:
You must provide:
action plans for transition, communication
two contingency plans related to transition and communication action plans
amended action plans and contingency plans based on data in part 2 of the case study
evaluation and continuous improvement schedule.
Type your answers here.
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