CTI_BSBMGT617_Learner Guide VI.2020 1
BSBMGT617 DEVELOP AND IMPLEMENT A
BUSINESS PLAN
LEARNER GUIDE
CTI_BSBMGT617_Learner Guide VI.2020 2
1. INTRODUCTION
The business plan is the document that summarises the reason for a business’ existence
and the ways in which it will attempt to achieve success.
BUSINESS PLAN INCLUSIONS
The business plan draws together all the different aspects of running a successful business,
including:
• Legal.
• Marketing.
• Financial.
• Operational.
• Human resources.
• Technological.
• Managerial.
• Quality control.
FORMULATING A BUSINESS PLAN
When formulating a business plan, it is important to use all of the knowledge you have
gained through reading and learning about all aspects of TH&E management. Essentially,
the business plan will describe how you will manage the financial operations of the
business, market your business in a strategic manner, manage your operations efficiently
and lead your staff in a legal and effective way.
GOALS OF A BUSINESS PLAN
The business plan should detail the long-term goals and strategies of the business. In most
cases, these include increasing market share and growing as a company. It is therefore
essential to include growth and change management strategies in the plan. It is also
important that the business plan is flexible. There are no certainties in business, so it is
important to revise the business plan periodically, or when a significant event that
impacts on the business occurs.
HUMAN RESOURCES COMPONENT IN BUSINESS PLANNING
In recent times, there has been a significant shift towards human resources planning
strategies in business plans. Particularly in Hospitality, which has significantly high staff
turnover rates, it is important to consider the people you employ as part of your planning
for the future. Take a look at employment advertisements and you will see the number of
HR Manager jobs available. This reflects the growing importance of managing people in
making a successful business.
CTI_BSBMGT617_Learner Guide VI.2020 3
BUSINESS PLAN SHOULD RESPOND TO TRENDS
A business plan must also take business trends into account. It is no use planning to
expand your operations if your guest numbers are declining. Instead, your business plan
should focus on ways in which you can reverse the trend, consolidate your existing
business and build your customer base. Essentially, your business plan should be realistic
and focus on ways of improving your situation.
1B. COMPONENTS OF A BUSINESS PLAN
Business plans are usually set up in the same logical order, starting with generalities of the
business and leading onto more specific detail of how the business will operate.
Select the navigational circles on the bottom of the screen to reveal more about business
plan components and what to include in them.
STEP 1
PART I: INTRODUCTION
The plan will start with an introduction containing a description or profile of the business,
outlining what the business does, including products and services offered as well as allied
marketing activities. The introduction also includes a description of the owners, their skill
sets, the ownership structure of the business and the management structure. There may
also be a brief background of the business and the scope of its operations.
STEP 2
PART II: ANALYSIS OF THE BUSINESS
Next will be an analysis of the business, containing:
• The business mission statement and business vision
• Brief overview of the market
• Overview of business assets
• Description of the skills of the management team
• Risk analysis.
STEP 3
PART III: FINAL SECTION
The final section should include the future objectives of the business and the strategies
for achieving those objectives. These may include financial indicators and other
productivity and performance targets such as:
• Community awareness or branding
• Environmental impact
• Governance or management
• Quality
CTI_BSBMGT617_Learner Guide VI.2020 4
• Sales
• Triple bottom line
• Workforce.
The strategic planning section of the business plan will define the operations of the
business in the various sections, e.g. financial, operational, human resources and
marketing. The strategic planning for these areas will dictate the processes that will be
followed by the business.
Strategic plans should establish the tasks, activities and budgets that you will need to run
the business. They should be in line with your business’ mission, vision, values, goals and
objectives.
STEP 4
USEFUL QUESTIONS TO CONSIDER
Some useful questions to consider when developing a plan are as follows:
• What do we want to achieve?
• How will we achieve it?
• What do we have to achieve it with?
A business needs to prioritise its goals so that it can then develop the essential steps in
the planning process. This means set long term objectives and plan on the methods and
the processes that will assist you in implementing these strategies to achieve your goals or
targets. Once a business has developed its strategies then these can help the organisation
to improve its performance.
STEP 5
BUSINESS PLAN TEMPLATES
There are many templates for constructing business plans available on the internet. A
good one can be found at Business.gov.au. This template will walk you through many of
the requirements of developing a business plan and provide useful guidance for the types
of information and data you need to include.
2. ANALYSING THE INTERNAL AND EXTERNAL BUSINESS ENVIRONMENTS
When constructing a business plan for any business, it is important to understand the
business, as well as the marketplace in which it operates. By analysing both the internal
business environment and the external business environment, you will start to gain an
understanding of how the business can become successful.
There is a number of tools that are useful for analysing a business’ situation. They are all
variations on the central theme of identifying the growth potential of the business and
problems it may face in the quest for growth. Two commonly used tools are SWOT and
PEST analysis. SELECT THE ICONS BELOW TO READ MORE ABOUT THEM.
CTI_BSBMGT617_Learner Guide VI.2020 5
There are other techniques, such as McKinsey’s 7S framework and Neil Borden’s 7Ps
Marketing Mix which are useful for analysing the marketplace and helping to focus a
business’ efforts in an effective direction.
SWOT ANALYSIS
The most commonly used technique for analysing a business’ current and future situation
is SWOT analysis, which allows you to identify:
• Strengths
• Weaknesses
• Opportunities
• Threats.
PEST ANALYSIS
A useful technique for analysing and predicting marketplace developments is known
as PEST analysis:
• Political and legal
• Economic and demographic
• Social and cultural
• Technological.
2A. SWOT ANALYSIS
SWOT analysis is a commonly used tool for identifying the strengths and weaknesses of a
business or product as well as opportunities and threats. This involves analysing the
internal and external business environments.
On the next few tiles, we will look at:
• Identifying Strengths and Weaknesses in the Internal Environment.
• Identifying Opportunities and Threats in the External Environment.
CTI_BSBMGT617_Learner Guide VI.2020 6
Once all the strengths, weaknesses, opportunities and threats have been compiled, it is
necessary to determine which of these are the most likely to occur and which have the
biggest potential impact on the business. Brainstorming sessions should be conducted to
identify possible solutions or approaches. It is essential that Marketing Managers involve
personnel from all areas of a business such as F&B, Conferencing and Rooms so that
feasibility of approaches can be determined and all sections of the business are kept
informed.
2A. IDENTIFY STRENGTHS AND WEAKNESSES – INTERNAL ENVIRONMENT
STRENGTHS AND WEAKNESSES IDENTIFICATION EXAMPLE
Identification of strengths and
weaknesses requires analysis of all the
factors under the control of the business
that can influence its success or failure.
Some factors that must be considered
are human and financial resources, staff
skill levels, equipment availability and
reliability, location and hours of
operation, and capacity for
communication.
For example, consider conducting an
analysis of a chain hotel with a bar,
restaurant and conferencing facilities. A table may be constructed which lists all the
identified strengths and weaknesses. SELECT THE BUTTON BELOW TO REVEAL AN EXAMPLE
OF ONE.
Here are some examples that you could include under the Strengths and
Weaknesses columns for a chain hotel with a bar:

CTI_BSBMGT617_Learner Guide VI.2020 7
IMPLICATIONS OF STRENGTHS AND WEAKNESSES
Once the strengths and weaknesses have been identified, the manager must determine the
implications of each strength and weakness and incorporate that knowledge into the
business plan.
SWOT analysis can be a very useful starting point for identifying appropriate marketing
strategies which will help maximise business potential. The marketing strategies outlined
in the business plan should be designed to build on the strengths of the business, such as
location or high level of customer service; and to play down weaknesses through tactics
such as highlighting proximity to public transport to lessen the impact of having no on-site
parking.
Strengths and Weaknesses Implications Example
For example, the fact that the hotel
discussed on the previous tile, is part of
a well-respected, recognised chain
means that there is little benefit from
using standard marketing techniques to
raise profile and public awareness. More
stress should be put on the fact that the
hotel is situated downtown with easy
access to shopping, restaurants and
nightlife; and that the hotel can host
large conferences in modern environs.
As there is little walk-in custom for the
restaurant and not much space for
advertising signage, the fact that the
head chef is well-known and respected
should be used as a selling point in your marketing activities.
It is also advisable to develop a website for the hotel, either as part of the national chain
or as a standalone entity. Hotels which do not have an easily accessible website with
information and booking facilities will miss out on significant business.
More in-depth analysis on each product and service can be conducted to identify which
products are performing well and which products are performing poorly. Once these have
been identified, ideas for what steps should be taken should then be developed. Strengths
should be built upon and exploited; weaknesses should be dealt with to reduce the
problem. Select the button below to reveal some examples relating to identifying the
hotel’s strengths and weaknesses, as well as ideas and solutions relating to them.
A form such as the one below can be constructed, to help you think about the implications
of strengths and weaknesses for the hotel business.
CTI_BSBMGT617_Learner Guide VI.2020 8

IDENTIFY OPPORTUNITIES AND THREATS – EXTERNAL ENVIRONMENT
Opportunities and threats are those factors outside the control of the business that can
have an effect on its success or failure. Opportunities and threats are identified by
analysing trends and developments in the external business environment and the
marketplace in which the products and services compete. These trends and developments
can involve changes in demographics, economic and political climates and other social
influences which impact upon consumer behaviour and competitor activity.
Some commonplace issues relating to the external business environment of a TH&E
business are:
• Domestic and international economic climates.
• Fluctuations in currency exchange rates.
• Increase or decrease in competition.
• Shifting supply and demand levels.
• Changes to the numbers and profile of international tourists.
• Changes in legislation, e.g. Industrial Relations, Taxation and Development grants.
OPPORTUNITY AND THREATS EXAMPLES
Long-term opportunities and threats can
be identified and periodically analysed.
.
CTI_BSBMGT617_Learner Guide VI.2020 9
Select the button below to reveal an example of opportunities and threats analysis for a
resort drawing on international clientele.

Other opportunities and threats present themselves at various times. For example, the
establishment of a new regional tourism bureau would be designated as an opportunity.
The bureau is an opportunity for the business to market itself in a previously unavailable
forum. Flyers can be installed in the bureau office and links to the business website can be
included in the bureau’s website. Alternatively, there may be an opportunity to form a
strategic alliance with other businesses in your region. It is necessary for a business to be
aware of developments such as this in order to take advantage of the opportunity before
its competitors do.
An example of a threat could be a sudden, unexpected increase in fuel prices. This
influences domestic tourism particularly, as more money must be spent on travel costs.
Also, suppliers will need to increase the cost of their products, particularly in regional
areas. This cost will be passed on to the business, meaning higher expenditure and fewer
customers. It is essential that a business remains vigilant so they can plan for such events.
REALITY CHECK: CASHFLOW
Many businesses in TH&E fail as they are short on cash and fail to plan. In this scenario, a
retrenched worker wants to use their payout to buy a café. Whilst being optimistic is
important, it is certainly not enough. Cashflow in particular is a major problem for
businesses and a detailed plan will highlight any weak spots clearly. Whilst you cannot
have a crystal ball it is better to amend plans instead of just flying by the seat of your
pants. Always consider the human capital that is wasted when a business does not
perform.
2B. PEST ANALYSIS
This marketing environment analysis tool explores the factors that impact on your target
market and customers in their purchasing decisions. At the centre of the model is your
target market. This is surrounded by the marketing influences on them and all other
variables which affect marketing. The surrounding influences can include products;
competitors; suppliers and distributors; economic and political factors. To aid in analysis
the influences can be divided into the 4 PEST classifications. SELECT EACH OF THE TABS
BELOW TO REVEAL THEM.
CTI_BSBMGT617_Learner Guide VI.2020 10
More recently, businesses have also had to consider the natural environment as an
influence on business strategy.
POLITICAL AND LEGAL
The political and legal environment aspect of PEST, looks at the legislation and
government agencies which impact upon marketing. Examples include trademarking and
copyright laws, consumer protection laws, etc.
ECONOMIC AND DEMOGRAPHIC
Economic and demographic categories include factors that influence how much people
spend as well as income levels, interest rates and inflation.
SOCIAL AND CULTURAL
Social and cultural aspects look at different societal and cultural groups and what their
behavioural patterns are like.
TECHNOLOGICAL
The technological aspect of PEST looks at how technology influences consumer behaviour.
POLITICAL AND LEGAL
The political and legal
environment consists of the legislation
and government agencies which impact
upon marketing and can differ between
societies. Much legislation is created in
order to protect companies. For
example, trademarking and copyrighting
prevents rival companies from using your
logos and business name in order to
exploit your public profile.
Legislation is also in place to protect the
consumer. The Australian Competition and Consumer Commission (ACCC) and Department
of Fair Trading were set up to ensure that businesses trade in a fair and legal manner.
These bodies act as watchdogs to ensure that businesses do not sell inferior quality
products or lie about available services. Local and regional laws and rules also affect the
ability of a business to market itself, for example a town may ban all advertising signage
from the main street.
CTI_BSBMGT617_Learner Guide VI.2020 11
ECONOMIC AND DEMOGRAPHIC
The economic environment incorporates all economic factors which influence how much
people can spend, as well as what, where, when and how they will spend. The economic
environment is influenced by fluctuations in income levels, interest rates and inflation.
Understanding how demographics and economic influences affect your target market’s
behaviour is vital.
PATTERNS OF EARNING
Changes in patterns of earning such as the increase in numbers of dual-income families
and single parents affect consumer buying power. Affluent families have more money to
spend on good quality products and services, but are also affected by interest rates. Many
have mortgages, which may be higher due to the location of the property. Speculation on
recessions and other economic changes often have impacts on the spending patterns of
customers.
INCOME DISTRIBUTION
Changes in income distribution affect consumer buying power. Traditionally, consumers
can be divided into upper, middle and lower socioeconomic classes, each with their own
spending patterns. As changes in the number of people in the different classes occur,
marketing efforts must be modified to accommodate this. Over the last few decades, the
traditional “blue-collar” workers have seen a rapid increase in average wages, resulting in
a new market for many products.
Annual analysis by Hays Recruitment provides an indicator of the average wages for
different industry sectors and different geographic locations. In 2013, for example, the
average salary for a Bank Branch Manager in Sydney was $85,000, while a welder working
in the mining sector in WA had a salary range $125,000-$145,000. A university graduate
geologist working in the same mine could be earning $70,000-$90,000. Changes of this
type can occur quickly and it is important for marketers to keep track of these trends and
to tailor their approaches appropriately.
DEMOGRAPHIC ENVIRONMENT
The demographic environment describes where people live and spend their money as well
as how different groups of people behave. In Australia, there was a large movement of
people towards Queensland and Western Australia throughout the 1980s and 1990s.
Movements of this type open up new markets and close other markets.
ETHNIC MAKEUP
Ethnic makeup can affect buying patterns within regions, for example, recent immigrants
tend to stick together in close communities and as a result, are not easily reached via
traditional marketing techniques. Adult immigrants often tend to shop locally, particularly
for fresh produce, while teenagers and young adults will tend towards the large shopping
centres and prefer pre-packaged food.
CTI_BSBMGT617_Learner Guide VI.2020 12
POPULATION PROFILES
Population profiles shift over time, which has implications for marketing. Groups such as
the baby boomers, born after World War II, have changed their spending patterns many
times as they have aged.
SOCIAL AND CULTURAL
People who grow up in different societal and cultural groups will behave differently as
consumers.
BELIEFS
Different groups often share similar core beliefs, such as respecting family and obeying
the law, while they can have different secondary beliefs, such as appropriate ages for
leaving home, or social acceptance of alcohol consumption.
When marketing towards particular groups, or subcultures, it is important to understand
what appeals to them. Working mothers, Christians and teenagers, as groups, will disagree
on many topics while agreeing on some. Marketers need to tailor their approach to the
particular social group.
POPULAR CULTURE
Popular culture has a large influence on people’s spending patterns. People emulate their
heroes, such as sport stars, musicians and actors. Marketers often use these people to
either sell their product or affect people’s attitudes towards products, e.g. using faux fur
in fashion.
SOCIAL PRESSURES
Recent social pressures have led to an increase in environmental awareness, a focus on
healthy eating and a reduction in cigarette smoking. Marketers need to keep track of
these social and cultural trends in order to keep up with the market.
TRIPLE BOTTOM LINE
The concept of triple bottom line is recognised as being important to businesses. This
concept describes the business operations in terms of sustainability in:
1. Economic terms, e.g. business profitability.
2. Environmental terms, e.g. conservation of resources and waste minimisation.
3. Social terms, e.g. diversity of staff and ethical HR procedures.
BELIEFS
Different groups often share similar core beliefs, such as respecting family and obeying
the law, while they can have different secondary beliefs, such as appropriate ages for
leaving home, or social acceptance of alcohol consumption.
When marketing towards particular groups, or subcultures, it is important to understand
what appeals to them. Working mothers, Christians and teenagers, as groups, will disagree
CTI_BSBMGT617_Learner Guide VI.2020 13
on many topics while agreeing on some. Marketers need to tailor their approach to the
particular social group.
TECHNOLOGICAL
The technological environment has a
huge influence on consumer behaviour.
Currently, the vast majority of people
use mobile phones. In this market, new
phones are continually being brought
out with features such as cameras,
internet access, GPS and apps.
In the wider sense, the technological
environment has led to better health,
increased transportation and worldwide
access through the internet. Many
businesses have websites displaying
their establishment and its services in
order to attract their Internet-savvy target market.
ENVIRONMENTAL
In the current social climate, the influence of the natural environment on consumer
behaviour is enormous. The trend towards environmental responsibility has been growing
since the 1960s and the hippie movement. Social pressures have led to governmental and
business responses such as the banning of CFCs, signing of the Kyoto Protocol and the
recent attempts to begin a carbon trading scheme.
BEING ENVIRONMENTALLY RESPONSIBLE
It is important for businesses to be seen as behaving in an environmentally responsible
manner. Australia underwent an extensive drought period throughout the late 1990s and
much of the following decade. Water shortages reached such a point that pubs in the
Goulburn region started purchasing plastic drinking cups in order to save water by not
washing up glasses.
Resorts and tourism destinations with outdoor gardens are increasingly using recycled or
tank water, rather than relying on town drinking water. The Voyages Brampton Island
resort in Queensland produces its own water via a desalination plant and advertises that
all gardens are watered with recycled water.
CARBON FOOTPRINT
Carbon footprint has become another common term in our vocabulary. It refers to the
impact that an individual or business has on the environment. By analysing the level of
emissions associated with all aspects of the business, you can then look at minimising or
neutralising it through offsets and changes in behaviour. This can then be publicised and
used as a competitive advantage whilst also making a positive impact on the environment.
Carbon footprints calculations incorporate:
CTI_BSBMGT617_Learner Guide VI.2020 14
• Energy consumption.
• Travel costs.
• Shipping costs.
• Logistics costs.
• Maintenance equipment.
CONTROLLING INDIRECT IMPACTS ON THE ENVIRONMENT
There are also many indirect impacts on the environment. Using renewable energy,
reducing energy consumption and avoiding unnecessary travel are ways of reducing your
carbon footprint. Think about ways of reducing your footprint in the TH&E industry:
• A restaurant sells only locally produced wines – reducing freight emissions.
• A resort uses “grey” water on its gardens – reducing wastage.
• Buying in bulk – reducing emissions and pollution from excess packaging.
• Offer tap water first – bottled water is shipped long distances and plastic
production involves large emissions.
• A conference uses online registrations – reducing the amount of paper needed for
sending and receiving registrations.
2C. COMPETITOR ANALYSIS
For a business to be successful, it must
constantly be comparing itself to its
competitors in order to find some kind of
advantage. Information about your
competitors that you will need includes:
•Who are the competitors?
•What are they trying to achieve?
•How are they trying to achieve it?
•What are their strengths and
weaknesses?
•How will they respond to your
presence?
WHO ARE THE COMPETITORS?
In any marketplace there will be existing or new competitors who offer the same service,
a similar service, or a different service that competes for your market.
of how to view competitors and what to consider when thinking about their business
identity and purpose.
CTI_BSBMGT617_Learner Guide VI.2020 15
CARAVAN COMPETITORS EXAMPLE
Consider the following competitors. 2
beachside caravan parks compete
directly by offering the same products
and services. The caravan parks also
compete with the low-budget motel
down the street, which offers a similar
service. In a broader sense the caravan
parks are competing with car
companies, sport stadia and restaurants
for the same consumer money. A family
may choose to have fewer holidays and go to the football more often instead.
It is important to address competition on each of these levels. Defining what industry or
area your products and services are relevant to affects how you analyse your competitors.
The beachside caravan park can classify itself as being in the beachside holiday market;
the family holiday market; the short-term accommodation market; the general holiday
market; and many others. Depending on how it classifies itself affects how it sees
competition and therefore how it will market itself.
MAINTAIN A WIDE SCOPE OF COMPETITION
It is important to maintain a wide
scope of competition in order to deal
with new products or competitors. In
many industries, new technologies
completely replace old technologies
and if businesses are caught unawares
then they will suffer. For example, in
the recording industry, records were
replaced by magnetic tapes, tapes
were replaced by CDs and CDs have
declined dramatically due to the
availability of downloadable files and managed services. It is necessary for companies in
this industry to see new technologies as competition, not just other companies selling the
same product.
FAST FOOD INDUSTRY EXAMPLE
In the fast food industry, burger chains
competed directly with each other for
many years, with similar products and
strategies. More recently they have had
to compete with “healthier” options such
as Subway and indirect competitors such
as coffee shop chains. The new
competition reflected a shift in society’s
opinions and the burger chains have had
to significantly remodel themselves to
CTI_BSBMGT617_Learner Guide VI.2020 16
stay competitive. Kentucky Fried Chicken even officially changed its name to KFC, to
remove the word “fried” from their name.
DIRECT COMPETITION EXAMPLE
Example of direct competition between businesses offering the same product to the same
target market.
INDIRECT COMPETITION EXAMPLE
Example of indirect competition between businesses offering different products to the
same target market.
WHAT ARE THEY TRYING TO ACHIEVE?
Once the competitors have been
identified it is necessary to determine
their objectives. Different competitors
will emphasise different goals in order
to achieve success. Some will emphasise
short-term profit, others will try to
become industry leaders in terms of
service or technology, while others will
try to offer low-cost alternatives.
CTI_BSBMGT617_Learner Guide VI.2020 17
Understanding how each competitor thinks will help to predict how they will react to
certain situations. A 5 star hotel will act considerably differently from a budget motel
when a new, internationally recognised luxury resort opens nearby.
HOW ARE THEY TRYING TO ACHIEVE IT?
It is useful to know the strategies and
techniques used by your competitors.
Two local pubs may offer vastly
different service levels and product
range and therefore compete for
different sections of the pub-going
market. One may emphasise their
extensive imported beer range and
knowledgeable staff, while the other
might emphasise its cheaper prices for
local draught beer.
If a third, new pub opens, it will have to
determine what strategies to use for
generating a market. It may choose to
directly compete with either of the existing pubs or it may choose to cater for a different
market segment, such as wine drinkers. If direct competition is chosen, then careful
analysis of the existing competitors’ successful and unsuccessful approaches needs to be
carried out.
2C. WHAT ARE THEIR STRENGTHS AND WEAKNESSES?
Assessing your competitors’ strengths and weaknesses allows you to determine their
capabilities. While financial and performance figures can be hard to obtain, estimations
can be made from research and personal experience. Visits can be made to rival
businesses to experience the products and services first hand.
Competitor information can be sourced from official documentation (recorded data),
research and analysis (observable data) and anecdotal information (opportunistic
data). SELECT THE ICONS BELOW TO REVEAL WHAT THE POTENTIAL SOURCES OF THESE
Recorded Data
• Annual financial reports.
• Press releases.
• Newspaper and magazine articles.
• Government and industry reports.
• Presentations.
Observable Data
• Advertising campaigns.
• Price lists.
• Promotions.
CTI_BSBMGT617_Learner Guide VI.2020 18
• Product trialling.
• Council and government tenders.
Opportunistic Data
• Supplier meetings
• Trade shows
• Conferences
• Ex-employee recruitment
• Social contacts
OBTAINING INFORMATION FROM COMPETITORS
Information that should be sought or is
desirable includes:
•Sales and profit figures.
•Individual product figures.
•Market share.
•Organisational structure.
•Advertising budgets.
•Distribution system.
•Marketing strategies.
•Customer attitudes and profiles.
•Customer satisfaction levels.
•Extent of customer database.
•Cash flow situation.
• Strategic partnerships.
• Supplier and distributor relationships.
HOW WILL THEY RESPOND TO YOUR PRESENCE?
Your competitors will respond to your
presence and decisions in a variety of
ways. By understanding how your
competitors think, you have an
advantage of predicting how they will
react. Some competitors will be quick to
react, others will be slow and some will
only react to certain situations. A
reduction in prices often results in a
quick reaction from competitors, as can
often be seen in the airline industry.
Some competitors simply won’t have the
capacity to react. A harbour tour
company may advertise its new boat but its competitors don’t have the time or money to
CTI_BSBMGT617_Learner Guide VI.2020 19
create a competing product. Some may choose to advertise their own point of difference
with you, but many will be unable to respond in a timely fashion.
Knowing how different competitors will react may help you decide who to directly
compete with most aggressively. Competing with weaker competitors can be easily
successful but does not bring large gains. Competing with stronger competitors can be
hard and sometimes end badly, but there are usually much larger gains to be made.
2D. CONSULTING WITH STAKEHOLDERS
As part of your research efforts when
developing a business plan, it is
important to source accurate and
relevant data. One aspect of this
involves ensuring that the correct
people have input. There are many
people who have opinions that can be
useful when developing the business
plan. It is important to seek out the
input of the following stakeholders:
• Customers
• Staff members
• Managers
• Owners and business partners
• Shareholders and business financiers
• Suppliers
• Strategic partners
• Business contacts and associates
• Industry bodies and representatives
• Legal, financial, technical and other advisors
• Local council
• Government agencies.
The data and information that you gather from these sources should be analysed, distilled
and summarised. This can then be drawn upon when formulating the business plan.
REALITY CHECK: BUSINESS PLANS
Business plans have sub-components such as the financial data, SWOT analysis and
marketing plan to name but a few. The GM uses in-house expertise to complete parts of
the overall plan. The various components have to mesh together. The external viewpoint
also helps to widen the scope and to make sure that as much input as possible is achieved.
It also provides commitment from staff to the overall plan and its sub-parts.
CTI_BSBMGT617_Learner Guide VI.2020 20
3A. IDENTIFYING BUSINESS OBJECTIVES
Having conducted your research on the internal and external markets, it is time to develop
the business plan.
The first step in developing the business plan is to identify the objectives of the business
and define how they will be measured. This will help you to develop the different
strategies for achieving your goals.
There is no point starting a business without an idea of what you want out of it. In many
cases the sole purpose for the business is to make money for the owners. In TH&E, there is
also a small subset of people who open a business for the love of it. In any case, it helps to
define the central values and directions of the business. To do this, you can develop a
mission statement.
VALUES
Values are the core drivers of a business – what it stands for, the reasons why it operates
the way it does, what the business stands for. Values can be physical, e.g. reliability and
responsiveness; organisational e.g. teamwork and cultural; and psychological, e.g.
creative and innovative. Values should serve to anchor how people act, and how they
approach their jobs.
BUSINESS VISION
It can also be useful to develop a business vision. The business vision describes how the
business wishes to progress and grow in the future. This could be a statement such as
“perfect Coffee, perfect time” highlighting the key focus of the business and then
explaining where the company wants to go. For example, this motto will be taken across
Australia and New Zealand via a franchise model. It is useful to include different
stakeholders when developing the mission statement and business vision. In particular,
committed staff should be involved in defining their purpose.
MISSION STATEMENT
The mission statement describes what it is that a business hopes to achieve. It is
important not to be too broad, e.g. “we want to make money” or too narrow, e.g. “we
want to serve coffee at $3”. For a café, a mission statement may be along the lines of “we
wish to deliver affordable food with a high standard of service to the local community. A
statement like this guides staff as to why they are doing their jobs and helps to focus their
efforts. It indicates what the central ideals of the business are, how they wish to achieve
those goals and who the general target market is.
CTI_BSBMGT617_Learner Guide VI.2020 21
OBJECTIVES
The specific objectives of the business can then be distilled out of the mission statement
and the business vision. These objectives should be realistic, clearly stated bad
measurable. You should always use the SMART method of establishing objectives, i.e. they
should be
• Specific
• Measurable
• Agreed
• Realistic
• Timed
An example of SMART objectives for a café could be: “to capture 10% of the local lunch
trade by January 2021”.
MISSION STATEMENTS EXAMPLES
Let’s look at mission statements of various businesses. Can you pick any specific objectives
of these businesses by reading their mission statements? Are these objectives realistic,
clearly stated and measurable?
Emporium Hotel
We will strive to be a profitable business
for our owners, an inspiring employer of
choice for our people, an exquisite
experience to our guests, a supporter to
our community and valued contributor &
inspiration to our industry.
Les Fougeres Restaurant
To achieve and maintain such
distinction in food and wine, service,
atmosphere and setting that the
restaurant, store and prepared foods
gain a first class reputation for
gastronomy, gracious and informed
hospitality, comfort and beauty which
draws new and repeat customers year
after year. More on www.fougeres.com
CTI_BSBMGT617_Learner Guide VI.2020 22
Doi Chaang Coffee
We strive to have Doi Chaang Coffee
recognized as one of the finest coffees
available and its name synonymous with
high ethical and sustainable business
standards. We are committed to
bringing economic and environmental
sustainability to the indigenous AKHA
hill tribe and Doi Chang Village through
our BEYOND FAIR TRADE® business practices to ensure shared economic sustainability and
prosperity.
Ritz-Carlton’s Credo
The Ritz-Carlton Hotel is a place where
the genuine care and comfort of our
guests is our highest mission. We pledge
to provide the finest personal service
and facilities for our guests who will
always enjoy a warm, relaxed, yet
refined ambience. The Ritz-Carlton
experience enlivens the senses, instills
well-being, and fulfills even the
unexpressed wishes and needs of our
guests.
Australian Eatwell
To provide and maintain quality
gourmet vegetable products that
contain important nutritional qualities,
are convenient and taste great.
CTI_BSBMGT617_Learner Guide VI.2020 23
Restaurant and Catering Association of
South Australia
Restaurant and Catering Association of
South Australia is the state’s peak
industry body representing members and
stakeholders through a commitment to
foster professionalism, excellence and
business success.
3B. BUSINESS RISK ANALYSIS
An essential part of the business plan is
an analysis of business risk. This can be
built on the SWOT analysis, competitor
analysis and other research that you
have conducted on the internal and
external business environments. In the
business plan, you may only need to
include a series of key points outlining
the risks involved with the business. A
separate, in-depth risk analysis record
should also be kept.
The business risk analysis should be
conducted in a similar fashion to WHS
risk analysis. Firstly, the hazards to a business must be identified, e.g. an economic
downturn or a shortage of staff. Next the likelihood of those hazards occurring and the
potential severity if they do occur must be identified. Once that happens, the risk can be
calculated. Risk controls must then be introduced to treat the risks, in order to minimise
the potential impact of the risks.
3C. DEVELOPING PLANS
A business may have as many objectives
as it likes, however it is not useful to
either have so many that it becomes
impossible to keep track of them; or so
few that the business plan lacks
direction. In general, you should at least
have objectives, plans and strategies
for:
• Marketing
• Operations
• Finances
• Human Resources.
CTI_BSBMGT617_Learner Guide VI.2020 24
In a similar fashion to the business risk analysis, these plans should be summarised in the
business plan, outlining the key points, targets and strategies involved. A detailed plan
can be kept separately.
OPERATIONAL PLAN
The operational plan is the overlying plan for how the business will carry out its
operations. It must take into account all of the goals of the business. The operational plan
will allow the different objectives to be tied in together, so that you will be able to
adequately resource and meet the objectives.
You may choose to group your goals and set them up in a grid, so that you can set out your
strategies and measures next to each objective. For example:

IMPLEMENTING OPERATIONAL PLANS
Within the operational plan, you should construct an implementation strategy or action
plan for meeting the business objectives.
RESOURCES FOR ACHIEVING OPERATIONAL GOALS
This implementation strategy will cover the resources that will be needed to achieve the
goals. The resources may be:
• Human.
• Technological.
• Financial.
• Materials.
• Systems.
• Equipment.
• Premises.
• Outsourcing, e.g. suppliers.
For example, if one of the goals of your restaurant is to increase the efficiency of service,
then in the implementation plan you will need to describe how this will be done. This may
involve training or coaching of staff to upskill them, e.g. carrying 3 plates instead of 2 will
mean 4 trips to a table of 12 instead of 6 trips.
By identifying areas of underperformance you can address the issues and implement
solutions to improve the performance. Coaching informally, either on-the-job or off-thejob can be a simple way to improve overall performance. Alternatively, you may wish to
invest in a better ordering system to streamline the flow of information from front-of
CTI_BSBMGT617_Learner Guide VI.2020 25
house to back-of-house. Either way, it is important to implement systems for ongoing
monitoring, evaluation and rectification of business operations.
METHODS FOR ACHIEVING OPERATIONAL GOALS
Whatever options you choose, it is important to specify the approaches you will take for
achieving your goals. It is also important to set timelines and methods of measuring
progress towards achieving goals. Equally important is specifying how you will monitor
your performance. Different reporting mechanisms will apply to the different goals and
objectives, depending on what they are. Not all objectives can be measured in the same
fashion. Some types of measurements include:
• Record keeping
• 360° feedback
• Comparison to budget
• Sales returns
• Market share
• Meetings reports
• Customer retention
• Reduction/increase in costs
• Periodic reporting
• Gap analysis
• Key performance indicators
• Compliance reports.
MARKETING PLAN
The marketing plan should summarise the key goals and strategies for marketing your
product and service offering. Essentially, the marketing plan should describe how you are
going to gain customers and keep them satisfied.
STEP 1
MARKETING COMPONENTS
Marketing plans can be broken down into a
number of components:
• Marketing Objectives:
What it is that the business hopes to
achieve by implementing the marketing.
• External Market Analysis:
Research into the state and make-up of the
current market.
• Internal Analysis:
Who in the business can be allocated to
specific tasks and what financial resources.
are available.
CTI_BSBMGT617_Learner Guide VI.2020 26
• Overall Marketing Strategy:
Defines which markets will be targeted for the product and the strategic reasons
for the decisions.
• Sales and Pricing Strategy:
Defines how the marketing will be carried out in terms of pricing structure.
• Distribution Channels:
Determines how the products will be distributed to customers.
• Promotion Strategy:
What types of promotion and advertising will be used and why.
STEP 2
MARKETING PLAN CONTENT
Depending on the size of the business, the depth
and formality of the marketing plan will vary. A
larger business will have more formal
requirements for a marketing plan,
whereas a small business will have a
simpler marketing plan. The marketing
plan may consist of the following:
•Your key products and services
•The major findings of the market
research, e.g. customer demographics,
strengths and weaknesses
• Summary of market share/position
• Pricing strategy
• Target market
• Sales targets
• Promotional strategy
• How products and services will be made available
• Marketing budget
• Financial forecasts.
STEP 3
PURPOSE OF MARKETING PLANS
Once you have analysed all the available data, the marketing strategy and objectives need
to be established. Your marketing strategy dictates the goals you wish to achieve and it is
imperative that any of the operations undertaken in pursuit of these goals do actually help
your business to achieve them. A marketing plan must also be flexible and adaptable to
any changes in the external or internal environment.
CTI_BSBMGT617_Learner Guide VI.2020 27
Individual plans for each product, market segment or geographical location can be
constructed. Each plan should be tailored to the different needs of the customers as they
vary between market segments and locations.
Your marketing plan should be able to be interpreted by anyone who is going to read it.
Bear this in mind when you are writing it. If your strategies are based on ideas or facts
that are only in your head, then the plan will not be of use to anyone else who might need
it. It should be clear why you chose the strategies. This means that a clear explanation of
what you intend to do is needed. This explanation will also help to guide the marketing
activities.
FINANCIAL PLAN
A major part of the business plan is the financial plan, which includes the master budget
and financial ratios analysis.
FINANCIAL PLAN INCLUSIONS
The financial section of the business plan should include items such as:
• The Master Budget which, depending on the size of the business, may include
departmental reports, as well as the overall budgeted Profit and Loss Statement.
• Clearly defined cashflow planning to ensure positive cashflow and liquidity of the
business.
• The existing ratio of debt to equity and the terms of debt, to prevent excessive
gearing.
• Control systems for stock, debtor and creditor levels.
• Financial objectives of the business in relation to volume of trade, associated costs
and pricing strategies.
• Financial record-keeping mechanisms to ensure effective monitoring and
compliance.
MICRO AND MACRO APPROACH TO FINANCIAL PLANS
Financial plans can be done for all levels within a business, whether it be an individual
projects such as a function; a whole department (also referred to as cost centre); or the
business as a whole. This micro and macro levels approach to management enables a clear
business focus that flows through the whole operation. The framework provided also sends
a clear message to staff that financial management and achieving budgetary goals are key
drivers and form part of the performance indicators of all staff. The implementation of
control systems that address business aspects such as yields, stock levels, float and cash
control sends clear messages to all staff that professional business behaviour is expected
and encouraged.
FINANCIAL PLAN FOR STARTING A BUSINESS
In many cases, your financial plan should also cover the amount of money that is needed
in order to start. When applying for finance from a bank or other backer, it is usually
necessary to provide a detailed financial plan. This is not only useful for the bank, but also
CTI_BSBMGT617_Learner Guide VI.2020 28
for yourself in order to determine exactly what is involved in starting and running a
business. It is also useful to include your break-even point analysis, in order to assist with
target setting.
FINANCIAL PLAN FOR BUYING A BUSINESS
The financial plan is also important when you are deciding whether to buy a business. It is
essential to determine the current value of the business and to estimate the goodwill
value (intrinsic value of the business, such as reputation).

When buying a business it is essential to seek advice from professionals. Refer
to Bussines.gov.au and the small business websites in your State for more information.
HUMAN RESOURCES PLAN
As mentioned in the introduction,
human resources issues are becoming
increasingly important to the success of
a business, particularly in TH&E.
Imagine if one of the top restaurants in
the world, such as Tetsuya’s, sacked all
of their experienced wait staff and
relied on unqualified and inexperienced
workers. It would not matter whether
the Chef produced the best food in the
world, if the staff forgot where orders
were going and spilled wine all over
their guests. TH&E is a service industry
so it is essential to the success of a
business that the quality of service is at the highest possible standard.
In order to achieve long-term success, a business must invest time, effort and money in its
staff. Training programs, professional development programs and other forms of staff
recognition and development are a must. The Park Hyatt in Sydney, Australia, is renowned
for having a best practice HR program. Initiatives such as job swaps have been heralded as
a success.
When devising an HR plan, it is important to consider the methods of staff development
and the amount of money that is to be spent. Training can be a huge cost to a business
CTI_BSBMGT617_Learner Guide VI.2020 29
when staff turnover is taken into account, so finding methods of training staff costeffectively and time-effectively is essential.
As the business plan covers the anticipated future of the business, the HR plan must
describe the anticipated HR needs and issues. If the business is expected to expand, then
workloads will be affected.
There are several options for dealing with growth in an HR sense. In small businesses, the
usual option is for the owner to work longer and harder, but this is not always the best
option. Another option is to hire new staff when required, at the level that is required.
Usually, more operational staff are required first, followed by more managerial staff.
Another option is to redefine job roles for existing staff and to introduce promotions when
the need arises.
MANAGEMENT PLAN
It is necessary to decide on the management structure of your business, in order to ensure
its smooth running. The initial step in the process is deciding on the ownership structure
of the business, i.e. whether it will be a sole trader, a partnership, a company, or some
other type of business entity. If the owners are involved in the running of the business,
then this will determine the structure of the top level of management.
There are always 2 requirements in a management structure:
1. Managers
2. Staff to manage
SMALL BUSINESSES
In the simplest of scenarios, such as in a small catering operation, an owner/operator may
do all of the managerial tasks as well as all of the operational tasks, perhaps with some
part-time assistance for the operational tasks. In small-medium size operations the owner
would employ managers and supervisors to cover the different operational areas.
LARGE BUSINESSES
Large businesses are spilt up into departments with staff, supervisors and managers
allocated to each department. The Department Heads report to the General Manager, who
in turn reports to the owners.
As a business grows, the management hierarchy generally becomes more and more
complex, due to the extra workload. Each structure and size presents its own unique set
of challenges. At the smallest end of the scale, it may be hard to remember everything
that needs to be done. At the largest end of the scale, communication, red tape,
anonymity and organisational inertia need to be overcome.
QUALITY MANAGEMENT
The process of overseeing, monitoring and reviewing quality service can be termed Quality
Management. Quality Management is essential for a business to ensure that the services
CTI_BSBMGT617_Learner Guide VI.2020 30
given to customers are of sufficient quality and are in line with the objectives of the
establishment.
Quality Management can be broken down into sections.
CUSTOMER FOCUS
As customers are the most important part of a business, it is important to focus on them.
This involves understanding the customers and ensuring that they receive the products and
services which they desire.
LEADERSHIP
No business could give quality customer service without leadership. Leaders establish a
unity of purpose and are responsible for creating a work environment which encourages
the staff to perform at their best.
STAFF INVOLVEMENT
If staff at all levels of the organisation, from the frontline cleaners, bar staff and wait
staff up to the management and Board of Directors, feel that they belong to the company,
then they will actively participate in achieving the business’ objectives.
PROCESS APPROACH
While it is important to break down goals and objectives so that people can conduct
specific tasks, it is also important to contextualise them so that they understand the
purpose of the task. If tasks can be seen as part of a process towards achieving a goal then
people will put more effort and care into them.
SYSTEMS APPROACH TO MANAGEMENT
Efficiency and effectiveness will be improved if systems are in place for managing
processes.
CONTINUAL IMPROVEMENT
This should be a permanent objective of any staff member, manager and organisation.
Striving for improvement will encourage commitment to the cause and improve service
quality.
FACTUAL APPROACH TO DECISION MAKING
Decision-making processes should be made in a logical, sensible fashion and based on data
and information analysis, rather than “gut instinct” or snap decisions.
MAINTAINING GOOD BUSINESS RELATIONSHIPS
Organisations and suppliers are interdependent and good service relies on the regular
supply of quality products. Poor relationships can jeopardise service quality.
QUALITY MANAGEMENT EXAMPLE
In a TH&E business, quality is extremely important. From the customer’s viewpoint, they
want a high-quality end product or service when they purchase an item from you. From
CTI_BSBMGT617_Learner Guide VI.2020 31
your viewpoint, you need to manage all of the production steps and processes involved, to
ensure that the end product or service is of high quality. The concept of quality
management involves managing all of the processes that impact on an end product or
service.
QUALITY MANAGEMENT SHOULD BE A KEY PART OF THE MANAGEMENT PLAN
When devising your management plan, you must take quality management into
consideration. Having a good management and communication system in place will lead to
better quality overall. Your human resources planning will also impact on quality
management. Having staff who are highly motivated, well-trained and committed to the
business will usually improve some aspects of quality. Other aspects of quality require
proper facilities and systems to be put in place.
QUALITY MANGEMENT EXAMPLE: HOW COULD WE APPLY QUALITY MANAGEMENT TO
A MENU ITEM?
The main concern of the customer is that their dining experience is high quality. For that
to happen, you must consider all of the steps in the process that lead up to the customer’s
enjoyment of your products. In order for the customer to enjoy their dining experience,
you must have high quality in at least:
• Food safety
• Supplier deliveries
• Storage facilities
• Freshness of produce
• Skill of chefs
• Communication process in the kitchen
• Communication between kitchen staff and wait staff
• Skill of wait staff
• Cutlery and crockery
• Fixtures and fittings
• Ambience
• Reservations policies
• WHS policies
• Customer service.
CTI_BSBMGT617_Learner Guide VI.2020 32
3D. OTHER CONSIDERATIONS
While there are many other
considerations to be made when
developing a business plan, they do not
necessarily need to be included as
separate items in the plan itself. The
areas talked about on the following
tiles should be considered throughout
the various sections of the business
plan. They include:
• Legal and ethical requirements.
• Sustainability.
• Staff Involvement.
You may choose to specifically highlight some of them in your business plan.
LEGAL AND ETHICAL REQUIREMENTS
Legal and ethical requirements are both important for a business and its social and legal
responsibility; they can often act as a moral compass for determining what are correct
practices and processes.
LEGAL REQUIREMENTS
There are many and varied legal requirements for a business and even more for a TH&E
business. Legal compliance is an extremely important consideration for a business, as
failure to comply can result in severe penalties, including permanent closure of the
business.
Compliance with WHS legislation and regulations is a must for any business and should
form part of the long-term human resources and operational strategies. Your business
must be a safe and healthy workplace, for both your staff and your customers. Likewise, it
must comply with food safety and licensing regulations. WHS systems and food safety
systems should be considered as major aspects of your operational plan.
Licenses are needed for many aspects of a business’ operations. Failure to comply with
licensing regulations can result in severe penalties. Appropriate training of staff in the
various licensing requirements could be factored into your business plan. The risk of being
punished for failure to comply with licensing requirements is quite high, particularly when
considering liquor service.
Visit Business.gov.au and ABLIS for information on different types of licences or permits
that a business may need.
CTI_BSBMGT617_Learner Guide VI.2020 33
ETHICAL REQUIREMENTS
Businesses should strive to behave ethically in all of their dealings with other businesses,
employees, customers and the community. For example, it is unethical to knowingly turn a
blind eye to drug dealing in your nightclub. On top of your legal responsibilities, you have
a moral obligation to inform the appropriate authorities of illegal activities that occur on
your premises. While it may temporarily increase income for your business, your
reputation will take a battering and your business can even be shut down.
Many businesses include some statement in their business plan that reflects their desire to
behave and operate ethically. Also, industries often have Codes of Practice which should
be followed. Best-practice models can guide you as to how you should conduct yourself in
an ethical, legal and socially responsible manner. For example, the manufacturing industry
has released reports and recommendations on how to reduce a business’ environmental
impact and also encourages industry self-regulation.
One issue that you may not have considered is the protection of children. Some businesses
will have families as a large portion of their customer base. Often there are playground
facilities to entertain the children while the parents entertain themselves. If unattended
children are common at your business, then you should consider conducting background
checks as part of your recruitment procedures. Resorts often have dedicated au pair
employees and these people must have background checks conducted on them, as well as
carrying the appropriate qualifications. Each state has legislation governing employment
of people who deal with children. Find the legislation in your state that governs
requirements for working with children.
SUSTAINABILITY
One of the major trends in society and
in business is the increase in
environmental awareness. For TH&E
businesses, environmental awareness
must be twofold: you must consider the
environmental impacts of the products
and services you offer; and you must
consider the impact of your business
itself.
Many of today’s best restaurants use
locally-sourced fresh ingredients which
are produced using environmentallyfriendly farming practices. Some
commodities are delivered to restaurants still in their own soil. This dedication to
freshness and quality local produce is becoming more and more common in the industry. It
does not have to be limited to the top restaurants, either. Commodities such as herbs are
easily grown in urban environments and can be picked straight off the bush and put onto
the plate.
CTI_BSBMGT617_Learner Guide VI.2020 34
Large businesses such as resorts and hotels definitely need to consider the environment in
their operations. Laundry requirements are huge for a large hotel and many have
instituted a policy of not washing towels unless they are left on the floor, when guests are
staying for more than one night. The impact of replacing shampoos and soaps at every
available opportunity can also be reduced by instituting similar policies.
Many resorts with large grounds use strict water control policies, as well as using recycled
or bore water for activities that do not involve drinking. Building codes require new
businesses to develop environmental impact statements and there are stricter
requirements than previously. In times of drought, non-essential activities may need to be
stopped. In Adelaide’s Botanical Gardens, fountains do not run in times of excessive
drought, due to the wastage of water.
International Standard ISO 20121 describes the building blocks of a management system
that will assist event organisations to improve the sustainability of their event related
activities, products and services.
Borne out of the London 2012 Olympics and based on the recent push towards better
sustainability and reduced environmental impacts, ISO 20121:2012 ‘Event sustainability
management systems – Requirements with guidance for use’ was created. The standard can
help event organisers improve their sustainability and environmental impacts throughout
the entire event management cycle. ISO 20121 has been designed to be applied to all
types of events.
The environmental impact of a business should be incorporated in the business plan.
Actions such as recycling policies and water waste minimisation can easily be implemented
as a means of reducing a business’ environmental footprint.
Visit www.pret.com/sustainability/about.htm to see what one large business has done about
the environment.
STAFF INVOLVEMENT
If one of the goals of your business is to include staff and other stakeholders in decision
making, then a good opportunity to start is to seek their feedback and input on the
business plan. One of your aims should be to set up a business culture that promotes
harmony and staff buy-in. This may help operational efficiency and reduce the amount of
staff turnover, which can save significant amounts of time and money.
An existing business may periodically ask its staff what it thinks the business is about and
what its primary cause, purpose and goals should be. This can help you to see your
business through other people’s eyes, which in turn can confirm that you are on the right
track, or tell you that something needs to change.
The concept of 360° feedback is based on the idea that everyone has an opinion and has a
right to express it. Staff, suppliers, managers, customers, owners and other stakeholders
CTI_BSBMGT617_Learner Guide VI.2020 35
will all have opinions and these will usually differ. Being able to distil the key points and
apply them is important.
DEVELOPING BUSINESS PLANS SUMMARY
Crucial components of a business plan
OPERATIONAL PLAN
The operational plan is the overlying plan for how the business will carry out its
operations.
It must take into account all of the goals of the business. The operational plan will allow
the different objectives to be tied in together, so that you will be able to adequately
resource and meet the objectives.
MARKETING PLAN
The marketing plan should summarise the key goals and strategies for marketing your
product and service offering.
Essentially, the marketing plan should describe how you are going to gain customers and
keep them satisfied.
FINANCIAL PLAN
Financial plan includes the master budget and financial ratios analysis. The financial
section of the business plan should include items such as: the master budget, cashflow
planning, the existing ratio of debt to equity and the terms of debt, control systems for
stock, debtor and creditor levels, financial objectives of the business and the financial
record-keeping mechanisms.
HUMAN RESOURCES PLAN
In order to achieve long-term success, a business must invest time, effort and money in its
staff. When devising an HR plan, it is important to consider the methods of staff
development and the amount of money that is to be spent.
HR plan must describe the anticipated HR needs and issues that come with the predictions
for the future of the business.
MANAGEMENT PLAN
Management plan defines the ownership and the management structure of your business,
in order to ensure its smooth running.
It also defines the parameters of Quality Management, which is essential for a business to
ensure that the services given to customers are of sufficient quality and are in line with
the objectives of the establishment.
CTI_BSBMGT617_Learner Guide VI.2020 36
4. USING A BUSINESS PLAN
A business plan is worthless if it is not used. A business plan has three uses: planning,
management and communication. The planning phase has been discussed in the previous
sections. Once the business plan has been developed, it can then be used as a
management tool and as a means of communication.
As a management tool, the business plan is useful for gauging progress. The objectives you
have set should be measured, to determine progress towards business goals. Referring
back to your planning document will allow you to compare actual progress to expected
progress. If you find that you are not progressing as you expected, then you should do
something about it.
As a communication tool, the business plan should inform its readers about your business
and where it is heading in the future. A business plan is essential when attempting to
procure financial backing. It can also be used to inform new or prospective employees
about your business.
4A. ACTION PLAN
One of the most important aspects of writing the business plan is to ensure that the set
objectives can be met. You need to be able to implement the procedures and actions that
will allow you to achieve your long-term goals. Hence, an Action Plan can help to specify
the steps that should be followed in order to achieve the objectives.
Your action plan should entail what is to be done, who is to do it and when it is to be done
by. The action plan should enable you to fix milestones on the pathway to achieving the
goals. Essentially the action plan will form the basis for the detailed operational planning
of each aspect. An example of how you can construct your action plan is:
CTI_BSBMGT617_Learner Guide VI.2020 37
KEY NOTES ON ACTION PLANS
The key to an action plan is to not get
into too much detail. It should cover the
major milestones and tasks required.
The trick is to assign realistic dates by
which the tasks should be completed.
However, it is hard to estimate
correctly without going into a lot of
detail. It is usually a good idea to err on
the side of caution when planning longterm.
One idea is to construct fairly detailed
operational plans for each of the
objectives, using Gantt charts or similar planning tools. You can assign dates and lengths
of time for the various processes, which will then give you fairly accurate dates and
timelines for the major milestones. These can then be written up in the action plan, to be
used as a reference point with an overall viewpoint.
INVOLVING STAFF
The implementation of the tasks
outlined in the action plan obviously
requires the involvement of staff. All
tasks will require at least some
involvement from a staff member, as
well as the person in charge of
managing that particular area. It is
essential to effectively communicate
what is involved in the business plan to
those who need to know. You must
ensure that the objectives, tasks and
the breakdown of responsibilities
associated with them are communicated
effectively.
Following the finalisation of a business plan, it is a good idea to hold a meeting to explain
the plan, or speak individually to the relevant people. For a small business, it is relatively
easy to gather everyone together and outline any new directions the business is taking and
allocate and explain specific requirements to the staff. Larger businesses would usually
hold an Executive Meeting where the Department Heads gather and have the new plans
explained to them.
Involving the staff is essential for team commitment and staff buy-in. It is important to
give the staff ownership by seeking their input and feedback. It is equally important to
discuss the new business plan with them so that they can see how their input and
feedback has been used. This does not mean that you have to agree to everything that
CTI_BSBMGT617_Learner Guide VI.2020 38
they say; rather it is important that you listen to them and explain the reasons for your
decisions.
Team commitment is required for the long-term success of the business. If you foster a
climate of unity and teamwork, then you will go a long way towards managing
successfully. A close-knit, hard-working team will work more efficiently and effectively.
They will also provide better customer service when they are dedicated.
The performance of the business plan must also be communicated clearly and
transparently. If you need to apply for more capital or otherwise show the performance of
your business, then your business plan and its performance must be displayed truthfully
and accurately.
In some cases, you will need to show the performance of the business plan to the owners.
The owners of large hotels often do not have anything to do with the operations of the
business. Instead, the management group is in charge of making the business profitable. In
this situation, the General Manager and the management group must use the business plan
and the performance measured against the business plan as an indicator of their own
performance.
4B. MONITORING THE BUSINESS PLAN
Setting goals and figuring out how to
measure success is only useful if you
actually do it. There is no point making
a planning document that outlines how
your business will become successful, if
you don’t refer to it. The point of a
business plan is to act as a guide for
how you do business. Making sure that
the business plan truly reflects the
direction of the business and that your
business direction reflects your business
plan, is important.
A business plan is not a static
document; rather it should be fluid and
changeable so that it reflects reality. In terms of monitoring and using the business plan as
a management tool, the following steps can be taken.
• Check your business plan periodically – You should periodically check that your
business plan reflects reality. This should be a scheduled process, i.e. you review
the business plan every 3, 6 or 12 months for its applicability to your situation.
• Compare actuals to expected – The milestones, performance measures and target
dates you set out should be compared to your actual results. This will tell you
whether you are on track, ahead of schedule, or if remedial action needs to be
taken. It will allow you to identify any areas where performance is lacking, so that
you can correct the problem.
CTI_BSBMGT617_Learner Guide VI.2020 39
• Operate according to plan – If you conduct your operations according to how they
have been set out in the business plan, then you will enable yourself to meet your
objectives. If you ignore what you have written in the plan and do something else,
then there is very little chance that you will achieve your objectives. Using your
plan will also make you grow closer to the document and get more out of it.
• Improve your plan – Your business plan does not have to be perfect and it probably
won’t be. You will improve with experience and the important thing is to learn
from your mistakes and successes. Establish which areas can be improved and
which areas work well.
• Use outside assistance – There are many sources of free advice for business
planning, particularly for small businesses. Each State Government has a
department that offers free advice for businesses. Industry bodies also often offer
advisory services, although these require membership. Lawyers, accountants and
other business advisors are also very useful sources of information helpful in
writing and maintaining business plans.
RESPONDING TO CHANGES
Although the business plan is a
document that outlines a long-term
strategy for success, this does not mean
that it must stay static. You will never
be able to predict all of the
possibilities, potential opportunities and
threats to your business. It is important
that you are able to respond to an
unexpected situation and one of the
ways you should respond is by revising
your business plan to reflect the new
situation.
It is possible that major opportunities
will arise and, if they do, you must be able to determine whether you can take that
opportunity. Planning is essential when deciding whether or not to make a significant
change and the business plan is central to this process. The goal of many business owners
is to grow their business, so if this is your goal, you will need to be able to respond to
opportunities for growth with a planned, thought-out approach.
Likewise, if things are not going to plan, or if major obstacles to success crop up, then you
will need to be able to react appropriately. Again, you will need to plan how you will cope
with the problem and move your business through the difficult period. If you find that
there are significant shortcomings in some areas, then you will need to identify why they
occurred and what to do about them.
Whenever changes are made to the business plan, those changes should be communicated
to the appropriate people. If objectives and goals change, then the affected people must
be informed. If roles and duties need to expand or contract, then this is an issue that you
CTI_BSBMGT617_Learner Guide VI.2020 40
will need to discuss with the relevant individuals.
Change management and people management are very important when you change the
direction of the business. If people’s jobs are affected, then they will be worried, scared,
excited, pensive, defensive, or have many other emotions, depending on the situation.
You should act quickly to avoid dragging the situation out. This will only make it worse.
Click here for an example business plan for Hotel Futura.
DAMAGE CONTROL: FUNCTIONS CENTRE
CASE STUDY
The functions centre secured a massive
new client, who agreed to have
functions 6 times per year for a week,
for as long as they were happy with the
service. As the functions centre was
doing well and was already operating at
near-full capacity, the business decided
to open a brand new function room,
which required a large amount of
building. It was anticipated that with a
new marketing push, the extra space
could quickly be used at high capacity,
generating a significant return on the
investment in a short period of time.
Unfortunately, after just 6 months of
operating at decent capacity, the massive client pulled out of the arrangement as they
were not happy with the level of service provided. The reason was that the functions
centre was not able to find adequate numbers of skilled staff and those skilled staff that
were available, were not rostered on for the most important clients.
Consider:
1. Why is planning important when any major decision is made?
2. Why must the business plan cover all aspects of operations?
3. What should happen in order for the functions centre to cope with the situation?
CTI_BSBMGT617_Learner Guide VI.2020 41
DAMAGE CONTROL: LOSS OF A MANAGER
CASE STUDY
Every business relies on its customers to
generate income; without them the
business would fail. At the Hotel, a longserving and popular manager decided to
leave his job for a higher-paying job
with better career opportunities, at a
rival hotel. Shortly after the manager
left, many of the regular corporate
travellers stopped staying at the Hotel.
It was suspected that the travellers had
been contacted by the ex-employee and
were now staying at the rival hotel.
Consider:
1. Why did the manager leave?
2. How could it have been prevented?
3. What should have been in the business plan?
4. What should be done with the business plan due to the significant drop in guest
numbers?