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Business Plan : Long Term Objectives

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Describe about the Business Plan for Long Term Objectives.



Section I

Part A

Importance of strategic plan evaluation

Business plan is defined as a written document that describes in detail that how a business is going to achieve its goal in an effective and efficient way. On the other hand, strategic plan is the process of outlining long-term vision of the company. It is effectively used for managing and implementing strategic directions of the company.  Therefore, it is effectively important to evaluate strategic plan while developing business plan because strategic plan helps to achieve long-term objectives in the organization that leads to organization’s growth (Olsen, 2011). It also provides effective foundation for the business plan.  Moreover, business plan cover what and who of the business and strategic plan provides us how and when. This means that strategic plan helps to make effective strategy for creating long-term product value to the customer that is an important aspect of business plan. In addition to this, investments in business are also made for achieving long-term objective and strategic plan helps to identify strategies that are effectively required for achieving long-term returns. As making effective financial plan is an important aspect of business plan. However, business plan defines that where you want to take your business and strategic plan provides a detailed action plan that helps to achieve company’s goals effectively.

Steps to develop measurable business objectives.

Objectives are defined as building blocks for achieving growth in a company. Additionally, measurable business objectives are described as something that can be measured in quantitative terms.  It is effectively quantified in statistical terms to identify how a particular product or operation is performing in an organization.  Measurable business objectives are developed to focus on how much change is expected or required in the organization (Blyth, 2012).  Measurable objectives are important to identify the effectiveness of marketing efforts.  Development of measurable business objective includes clarity in the business goals to be set by the top-management. The management should also ensure that the objectives are time-specific and relevant. The goals of the business may be developed for long-term but they should be realistic. It provides the management to gain a sense of success towards the accomplishment of overall organization goals.

Steps for developing business plan

Executive summary:  It summarizes long term report of company that provides effective understanding and familiarity about the whole report. It includes an overview of business concept, business objectives, target market, ownership structure, competitive advantage, marketing strategy and summary of financial estimations (Williams, 2012).

Company overview:  Company overview is an essential part of a company’s business plan.  It includes discussion about industry, customer, products and services.  It also includes mission statement, Goals and objectives, value statement and vision statement of company.

Business environment:  The business environment includes the nature of company’s industry, directions of the current market and the level of competition.

Company description:  It includes specific capabilities and resources of company.  It also includes information about company’s management, operations, its organizational level and its market potentiality.

Business strategy:  This part of business plan includes effective strategies to deal with competitions in the industry. It also includes what steps a business is required to take for the success of its current strategy.

Financial review: It includes description about current financial position of company which is reflected through Company’s balance sheet, cash flow statement and profit & loss account.

Action plan:  Action plan includes the way that how we plan to carry out business plan. This part must involve the proposed changes in organizational structure of company (Tiffany, et al., 2012). It also includes effective skills required for the successful working of plan and also includes ways to create awareness for business plan in the organization.


Importance of continuously reviewing market.

For achieving the desired business objectives it is very important to make continue market analysis. This is effectively helpful in providing all the available information regarding the market, so that company can make effective changes in marketing plan accordingly. Moreover, effective market analysis also helps business to identify that how well it is performing the market using its current market techniques and strategies.  It also provides information about past performance of company that is effectively helpful to know that which project performed better than others. Along with this, effective review of market also helps to identify current needs and preferences of its customers and also changing market trends. This help business to make effective strategies that are helpful in meeting changing customer needs. It also helps business to maintain effective customer base that will ultimately results in long-term success and growth of business.  In addition to this, continue market review also helps business to identify its strong competitors, so that we can make effective strategies to gain competitive advantage over our competitors’ through setting unique value preposition (Fleisher and Bensoussan, 2015).  However, continue market analysis also helps to make effective assumptions about future by looking into current market growth and trends that will helps to create long-term benefits for the organization.

Customer Profile

Customer profile is the description of a customer or group of customers which includes demographic, geographic and psychographic characteristics. It also includes customers buying pattern and purchase history.

Important aspects of building customer profile

Geographic: This aspect defines where the customers and potential customers of company reside. This information helps company to effectively apply its market efforts into countries, region and states.

Psychographics:  This aspect defines lifestyle features of a consumer which includes belief, opinion, buying habit and customer values.  All these factors affect purchasing decision of consumers effectively (Peterson, 2011).

Demographics:  This aspect defines age, gender, income, household size, marital status and educational level of targeted customers.  These factors help to reach targeted customers effectively.

Behavioural pattern:  This aspect describes about customer buying pattern which includes frequency of product purchase, level of loyalty and identification of buying preference of consumer whether for price or for performance.

Importance of consulting stakeholders

Stakeholders are generally defined as investors in a company. It also includes employees, shareholders, suppliers, customers and board members.

Reasons of taking shareholders concern in development and revision of business plan

(a) The outcomes of business decisions of a company are determined by the actions of its stakeholders.  As business plan is prepared to achieve company’s goals and objectives in an efficient manner. Therefore, it is important to take advice of stakeholders while developing and revising business plan because they hold a stake in the organization.

(b)  At the time of developing business plan taking advice of company’s board member and managers helps to make effective strategy that will help to establish brand value and positioning of company in the marketplace (Allen, 2015).

(c) Taking feedback and views of customers helps to identify and track current need and expectations that helps to form effective business strategy accordingly.  Additionally, shareholders concern is also defined as valuable source of information that helps to improve project design and outcomes while revising business plan. 

Part B





Description of the business

Lifestyle architect is owned by Peter Drew and it is based in Brisbane. He has 25 years experience in designing and developing creative apartments. The business specially focuses on catering the needs of niche by designing effective and creative inner urban apartments that suits the lifestyle of professional workers.  In the initial stage the business will be home-based containing latest equipments that will help in producing CAD drawings and 3D model presentations.  Moreover, the large part of the work will include development of small and medium apartments.


Organisation’s purpose (mission, vision and value statement)

Vision: Premier architectural firm in Australia for creating contemporary urban development communities.

Mission: Design creative and community friendly inner urban apartments for the home and lifestyle of the working professional.

Value statement:  To provide convenient and modern architectural design apartments in agreed cost and time frame.


Organizational chart

The Lifestyle architect is the sole proprietorship business in which the owner of business is Peter Drew.


Key personnel/ statement

The key personnel of Lifestyle architects is Peter Drew, who is the sole owner of the business having 25 years experience in designing apartments, retail shops and hotels. The business is properly organized and managed by single person in a profitable manner.  He is also having effective network of contact with important client with whom he worked earlier.


Current target market and marketing strategy

Current target market:  Initially Brisbane was selected as the primary market because it is a highly populated city having population of 1.8 million people.  On basis of information gained from the forecast done by Office of Economic and Statistical Research, the current target market of Lifestyle Architects are working professionals  having demand of convenience and lifestyle of inner urban living.

Marketing strategy: To differentiate the business and to gain large market share, the marketing strategy of Lifestyle Architects include launching of special event at the owner’s home based office for the core clients and stakeholders in the industry. Along with this it also uses competitive low prices as a penetration strategy. Inclusion of personal marketing and networking in promotional activities of business to build relationships with potential clients and builders.  Presence of corporate website, advertisement in magazines and also use of printed materials like business cards and brochures to attract both tax savvy and non-tax savvy customers. Use of effective mobile communication technology with an aim to fulfil the needs of customers efficiently and timely.


SMART goals/ objectives and key performance indicators

To become a reputed specialist architectural firm within two years, in terms of designing inner urban apartments in Brisbane.

To offer high quality architectural services for 6 major clients in the initials year.

To build the business as pioneer in South East Queensland within three years and to provide effective solutions in context of residential development projects.

The key performance indicators include sales, gross profit margin and net profit margin.




The total start-up cost of business is estimated at $ 55127 and it is funded by way of $ 30000 from secured bank loan and $ 30000 in owner’s equity.  The profit for the first year of operation is estimated at $35310 and $72050 for second year. The company proposed that it will pay back its loan amount in two or three year period of time from the profits that business will earn in future.  The company is also using leasing and renting option for computer, equipments, car and business premises, so that it will effectively get free from burden of investing large amount on purchasing fixed assets in the initial stage of business. The negative cash flow of business for the first six month of business operations will be covered by $30000 in owner’s equity.


Product services (including market position, unique selling position/ value to customer, anticipated demand, market trends, pricing strategy, growth potential)

Customer profile trends: The target customer are working professionals include  couples without children and lone-person households having increasing standard of living which includes want to live in attractive places.

Market trends:  The population of Brisbane’s is expected to grow about 50% in 2031. This will leads to higher level of increase in demand for inner urban apartments among working professionals.  The level of competition is also increasing day by day. Possible marketing options to take:

The marketing options include forming of business-to-business relationship with property developers and also to develop strategic partnership with business design firms.



There are three types of insurance including their annual premium. These are Professional indemnity with annual premium of 1500, Loss income insurance of 500 premium and Property and content insurance with premium of 700. The commence date of all the insurance depends upon execution of contract.


Risk management

The various types of risk include dependency on small number of large clients for work which includes medium level of likelihood and high level of impact and priority. The preventive action to manage this risk includes taking large number of small clients to divide the risk and building of strategic partnership with designer firms. Another risk includes non payment by clients in which likelihood is medium and impact and priority is high. The management of this risk includes following of system for collecting outstanding debts and formation of formal contracts with new clients. The next kind of risk is inability to work for an extended time period and the likelihood for this risk is very low and impact and priority is very high. The preventive action to manage this risk is taking of insurance to recover the loss of income and inclusion of disaster recovery plan for the benefits of clients and associates.

The risk includes theft of equipments in which likelihood is low and impact and priority is on medium level. The management of this risk includes taking of insurance for the replacement of equipment and also for deadlocks on the doors and security screen.

There is also risk of equipment malfunctions and the likelihood level for this risk is low and impact and priority is on medium level. The preventive action for this risk includes orderly maintenance and effective storage of equipments. Also there must be agreement with supplier of equipment for repair and substitution of equipment within time period of 24 hours.


Legal considerations (including Acts, regulations, codes to comply with, permits and  licence required)

The lifestyle architects will be set up under the trust name of lifestyle architects so the legal requirements for the business includes registration of architecture, registration of trust , registration of business name and also requirement to obtain Australian business number (ABN, TFN, PAYG, GST). 


Strength and weakness of the plan


The business plan targets the potential customers in an effective manner thereby considering the customer profile and appropriate marketing to gain large market share.

Inclusion of risk management to mitigate potential risks and helps to recover outstanding debts.

Covering of insurance policies to minimize the loss of income and indemnity.

Inclusion of detailed competitor analysis which helps entrepreneur to get idea about goods and services that competitors are offering.

Presence of clear and realistic financial projections.


Non availability of detailed and appropriate market research.

Keeping the plan short is an essential feature of a good business plan but the current plan is too lengthy and cumbersome.



Areas for improvements

The plan should include effective detail about market trend that helps to create long-term benefit for the business.

The plan should also include details about potential investors and strategic partners.

Section II

Part A


Testing a performance measurement system

Performance measurement is the process of collecting, reporting and analyzing information related to performance of an individual, organization or system.  It helps to identify opportunities for improvement in the organization.  It also deals in providing rational basis for selecting what process improvements are to make first (Artz, et al., 2012).  The main purpose of testing a performance measurement system is that whether it leads to improvements in organization or not.  The system whether focuses on making use of inquiry and intake forms for gathering necessary data for the purpose of creating value in various programs.  The beginning of the performance measurement system requires effective leadership and a key program staff. Apart from this, a performance measurement audit is used to determine current measurement practices that various organizations have already adopted. The assessment of collected data is made to evaluate the performance of reports generated by the system. This will effectively leads to appropriate testing of performance measurement system.

Importance of business reports

Business report is an important document which depicts specific information about an organization.  Additionally, it is written to attract investors to the organization. Its purpose is also to keep the employees connected with company’s goals and achievements. It is important to provide report on key aspects of business to the management in the organization within appropriate time frame because it provides effective information which helps management to take decision and also in making corporate strategies timely. Business reports also help management to come up with effective and successful marketing strategy that helps to increase profitability of organization (Guffey and Loewy, 2015). Moreover, it also provides information to investors about the current standings of the company, that will helps them to make timely  decision whether to further invest in the company or not.  However, controlling is important function of management, business report provides information whether actual performance meets the standards or not for maintaining level of control in the organization. Business reports also develop strong information base for its major customers by providing effective details about its products, services and its effective quality that helps them to make effective purchasing decisions.  Providing important and timely information through business reports also serves as a mechanism to develop effective labour management relationship by keeping both level informed about each other.

Importance of balancing information in report

While preparing business report for an organization, the balance should be maintained between both financial and non-financial information that helps management as well as stakeholders in effective decision making, as it provides comprehensive view of position and performance of company in the market.  Balance between both financial and non-financial information in business reporting helps to present a clear picture of organization to its current and potential investors. In addition to information related to profitability and revenue, it is also required by company to provide information about its CSR activities, sustainability report and respect for human right matter. Effective presentation of both information helps to make clear communication to all stakeholders in the organization.  The non financial information helps to evaluate internal performance and measure the employee and customer satisfaction (Tench and Sun, 2014). On the other hand, financial information serves as effective record of overall success of an organization that effectively helps to attract new investors. It also serves as means of monitoring organization’s progress and identifying opportunities for growth. Balance between both financial and non-financial information helps organization to achieve strategic goals and mission effectively (Butler, 2014).


Part B

Scenario A

Effective communication of business plan is necessary to achieve desired business goals efficiently. Therefore, the management must choose appropriate methods that help to communicate business plan appropriately. Email is considered as an effective way to communicate the business information speedy and efficiently.  It is also more convenient method as it helps to send the same message to a large group of people in an effective way.  It also helps to save time and cost of company and make all stakeholders well informed about their performance requirement for timely and productive achievement of organizational objectives (Rasmussen, et al., 2012).  On the other hand, Video Conferencing is also another communication method that is gaining a massive level of importance in major business organizations.  It helps to make face-to face communication between all members in the organization even if they are working at different places or even in different countries. Video conferencing effectively helps to create a broader level of understanding regarding business plan. It is an appropriate method as it helps to gain competitive advantage over competitors because team that communicate through video will share information in an faster way, Along with this, they will be more informed that will effectively reduce the time require to bring product or service in the market place (Krizan, et al., 2010).  However, conduction of meeting for communicating business plan is also an important method because it effectively helps to capture attention of all members of company and create clear understanding about all aspects. It also helps to clarify the doubt of any member regarding understanding of any aspect of business plan. Therefore, effective understanding of business plan makes employees to work as per standard performance guidelines that help to achieve business objective timely and efficiently.
For communicating the business plan to all the members in organization through meeting, the documents that are required to prepare mainly includes agenda and minutes of meeting. These documents help to make effective communication in the meeting that helps to create effective understanding about business plan to every member of organization. Agenda is a written official document consisting list of various activities of business that re required to be done at a meeting. It also includes the nature and order of business to be presented at a meeting. It is presented by secretary of company with concern of chairperson. Copy of agenda is send along with notice of meeting to all members in the organization (Koneru, 2010). It also provides required information to the participants to prepare effectively for the meeting. On the other hand, minutes are the official records of series of activities at a meeting. It is summarized form of discussion that is held in meeting and what decisions are taken.  Minutes are required to be clear, effective, accurate and objective. Along with this, details related to date, time, location and name of members present or absent should be included in minutes of meeting. Minutes effectively reports the details that are presented.  Both of these documents help to serves the purpose of meeting in an efficient and effective way.  Moreover, preparing for session to communicate business plan also includes preparing power point presentation that highlights the major aspects to be understood by all members in the organization. It is also an effective way to communicate complicated subjects related to business plan in a brief and convenient way.

Scenario B

Training helps to increase the skills, capabilities and knowledge of staff for doing a particular work. It also leads to quality performance of employees. Effective training helps to increase the staffs capabilities and skills to implement the business plan and meet the performance measures efficiently.  This in turn leads to organizational development and success. The manager should provide effective training to inculcate necessary skills in employees.

Providing of Classroom training to staff:

This is considered as an important way to inculcate necessary skills into staff regarding functioning of a particular work. It helps to keep them focus on learning important things.  This training includes providing effective and detailed knowledge about customer service software to staff that helps them to perform their work accordingly. Providing of effective training makes employees to feel at ease.  In addition to this, providing comfortable and productive learning environment will motivate them to take challenges confidently and this in turn leads to generation of effective skills to implement the business plan successfully.

Providing of technical training to staff:

This is considered as important training method to create understanding among employees regarding technical aspects of the job (Dias, 2016). This helps to generate necessary skills among employees regarding operation of customer service software.  Therefore, effective understanding of employees helps them to perform their duties as per desired performance standards and helps to effectively implement the business plan.

Providing of Simulation training to staff:

Simulation training method is most important method of providing training to staff.  In this method, trainee (Staff) will be trained effectively on especially designed customer service software.  This leads to incorporating necessary skills into them regarding efficient handling of work that effectively helps them to meet the performance standards.  Therefore, effective training leads to generation of necessary skills regarding implementation of business plan successfully.

Scenario C

Proper working of a system in organization contributes in an effective way towards achievement of organizational goal. So the management of organization should take effective actions for maintaining the level of effectiveness in the organization. Firstly the collection of test samples should be done in effective way that helps to maintain the system efficiently. In addition to this, the analysis of data should be done in an effective way so that no biasness will occur in future. No business can survive without effective analysis of data. Appropriate analysis of data helps to make critical decisions from the findings. Moreover, effective assessment of selected parameters should be done and if any of the parameters are not clear then effectively reset the parameters and then make their implementation in an appropriate manner.  On the other hand, the effective communication must be made within working group for maintaining efficiency in system of company. Moreover, effective comparison between variations of actual and forecasted performance must be made. If any deviation is found in actual performance as compared to forecasted, then the organization should take corrective action for effective functioning of system in the organization.  Appropriate system of organization helps organization to achieve desired objectives effectively.

Section III

Part A


Importance of variance

Variance is the difference between standard result and actual result. It is useful for managers to compare budgets, material variance, labor variance and sales variance. Variance analysis has an important role in the performance analysis and provides some positive results to the company (Aruomoaghe and Agbo, 2013). It helps the company to be on track by measuring its actual performance with its pre-determined objectives, identifying gaps and take corrective actions. It helps to motivate the employee to achieve predetermined goals of the company and provide information about top management's orientation towards company's goals. It makes sure about companies current position in terms of the production and cost. Variance analysis helps to control the company cost and compare the actual budget and standard budget of the company.

Causes of variance

Favorable variance:  It is comparison of actual result with standard or expected result of the company and deviation shows favorable result to business. It can occur when actual cost is less than the standard cost. Reasons for favorable variance are (Verlag, 2011):

  • Appropriate prediction of budgeted values
  • Regular employee training for doing a particular task,
  • Proper utilization of the resources

Unfavorable variance: It compares the actual result with standard or expected result of the company which is not planned and deviation shows unfavorable result to business. It can occur when actual cost is higher than the standard cost. Reasons for favorable variance are:

Inefficient resource utilization leading to wastage

Changes in the actual cost in compare to the standard cost

High competition leading to less sales than projected.

Importance of reviewing objectives and performance indicators

Objectives and performance is the success criteria of the company. Objective is an important tool of the company that includes the planning, strategy to perform, and used to create policy of the company. It is important for any company to regularly review the objectives. Generally, companies set objectives for long term as well as short term. Reviewing short term objectives is necessary for growth. Review of the performance indictor is very important for company. Company performance is based on performance indicator (Parmenter, 2011). Performance indicators are used to measure results and compare them with pre-determined goals of the company. It is identified that company’s growth is based on its objectives and performance indicators, so reviewing of the objective and performance indictor is important for company.

Purpose of root cause analysis

Root cause analysis identifies the problem of the company and the underlying cause of company’s problem. It is a collective term that define various approach, tools and technique to identify the problem of the company. Root cause analysis has an important role to identify the performance and objective of the company. It is an effective tool of management as it helps to find the actual cause of events, facilitate corrective action, and preventing correction action (Latino et al, 2016).

Process Mapping

Process mapping is a technique of represent the company activity and the given information in the charts or diagram. It is the best way to represent the data of the company. Project mapping represent all the data as an effective manner that provide better result to company. Process mapping includes various flow charts, graphs, diagrams, symbols, box, arrow and other signs. Process mapping is an important tool for the micro level enterprises. Process mapping is useful for understand the business activity and helps to increases the performance of business (Damelio, 2011). It provides the big image of the given information of the company. Process mapping have involvement of all the organization in the process and identify the production, work procedure and time consumption in the particular process.

Part B

PDCA cycle is used to control and improve the process and service of company. This model includes following steps plan, do, check and act. PDCA cycle is interrelated with the technique of the process improvement. Process improvement include these techniques like, problem solving, control charts, check sheets, statistical process control, process mapping and many other charts and diagram (Autry et al, 2013). These techniques can be used in the PDCA cycle for improvement in the performance in the business.

Tools and technique of performance improvement with the help of the PDCA model of living outdoors.


It is related with the planning of the assigned work of the employee according to skills, attitude and knowledge of them. Company can use this process improvement technique like idle time reduction, increase productivity and motivate employees for doing a particular task.


This stage identifies the execution of the planned work of the company. In this stage company can use the technique like proper utilization of resources, reduction of rejection and wastage. These techniques provide better production to the company.


This stage used to evaluate the work and compare it with standard performance to actual performance. Company can use these techniques like, use of bar charts or pie charts, flowcharts and scatter diagram, which helps to compare the performance and check growth of the company.


In this stage company can take corrective action with the help of controlling process, conduct the training and development program and appreciate employee’s work.

Living Outdoor should use the training and development program for the growth in the employee work. It will provide better results to the company. It can be used to improve the knowledge, skills, behavior and employee competency for doing a particular task in the company. Company can conduct on the job training or class room training (Khan et al, 2013).

Company should analyze the training needs, need of skills improvement, after training benefit and training budget. After analyzing these factors, company can provide training to employees. Company can provide on the job training as well as off the job training, but Living Outdoor’s employee require on the job training. On the job training provide better knowledge to the employee because employees gain practical knowledge as compare to book knowledge. On the job training is cost saving and time saving. Company should provide better knowledge about practical work to employees. Company’s sales have declined because of lack of skills and knowledge of its employees. Company should focus on the communication and convincing skills of its employees. It needs to provide some practical knowledge through role playing, promotion technique, product presentation. Further, it can use mentoring, coaching and classroom training to improve the communication, leadership, management, and decision-making skills. Employees can apply these skills during the job, which will provide better result to the company as well as employees.



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The solution was done in time thank you do much for your efforts but please taking care for grammar is needed there was so many mistakes in grammar thank you


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