Bsbmgt 617- assignment Task 3 PDF

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Develop a Business monitoring and evaluation report Ozhouse Clean Business monitoring and evaluation report

Business overview Ozhouse Clean is based in Melbourne and offers professional, residential cleaning services, including regular home cleans, as well as spring cleans. The company is a family business established in 2005 by James and Nancy Anderson. James and Nancy are the Directors of the company. Their daughter, Sarah is employed by the company in the role of Administration Manager. Company has made business plan to increase the amount of customer and profit. It is one year since the business plan was implemented and as the Operations Manager. Data provided by the accountant for this financial year show the following figures: 1. Total sales revenue - $450,000 2. Total cost of sales - $320,000 3. Debtor days - 30 4. 15 new commercial customers

Non-financial information With the number of customers increasing, the number of staff work costs has also increased. Because of this, the quality of staff services has declined. This caused some customers to complain because they thought the staff did not have the motivation to complete their work earlier than the specified time. In addition, customers also complain that the staff does not detail cleaning small parts in the customer's home. Customers have moved to competitors where they feel that service is better than the company. .

Performance indicators Based on the business performance obtained from the financial department there are some improvements obtained, namely: 1. Sales increased from $ 360,000 to $ 450,000 2. The total fixed cost is $ 320,000 3. Debtor days are shorter than 40 days to 30 days 4. The number of customers increased from 70 customers to 85 customers

Sales and cost of sales $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0

Before

After Sales

Total cost

Customer and Debt days 90 80 70 60 50 40 30 20 10 0 Before

After Debt Days

Customer

KPI A 20% increase in total sales revenue.

achieved

A gross profit margin of 20%.

not achieved

Reduction of 50% in debtor days 10 new commercial customers in the first year of the business plan

not achieved achieved

Business Plan Evaluation The strength of the business plan created is marketing activities that can increase the number of customers so that they can increase profits. The disadvantage is that an increase in the number of customers is not followed by a change in staff strategy where part-time staff should be replaced by full-time staff so that staff turnover can be reduced. In addittion, suppliers for eco friendly cleaner products can be better sought by looking for suppliers who can provide wholesale prices where companies do not need to experience an increase in cost of sales.

http://coba.belmont.edu/fac/schenkelm/etp3000/Course_Documents/Business%20Plan %20Assessment%20Template.pdf

Recommendations 1. Improve staff systems by recruiting existing staff into full time staff 2. Looking for suppliers who can provide products that are eco friendly but at a low price. 3. Provide training to staff to increase their skill and knowledge

Summary Overall, It is recommended that the existing staff should be kept and their working conditions to be changed to fulltime so that they do not have to be trained from scratch. For the upcoming year, the business should focus on searching suppliers that have a competitive pricing and are also environmentally stable and friendly. The company employees should be provided additional training and skills assessments so that their skill sets are developed and more knowledge is brought to the organization.

Send an email to the management team (your assessor). To: Management Team From: Happy Subject: Business monitoring and evaluation report Dear team, Good Morning. After do monitoring and evaluation, I have found some information. About the KPI that company make, only 2 KPI can achieved and other are not. This show that company have to increase the performance to reach other KPI. Sales and new customer has increase, but gross profit and the reduce of the debtor days, company can’t reach as the company target. I have send the file as attachment in this email. Please read and give some feedback. Thank you. Regards, Happy...