10 10 12 14 18 20 22 24 26 28 30 32 34 36 38 40 42 Case Study - KING EDWARD VII COLLEGE King Edward VII College has been operating for 5 years. The College is based in Sydney CBD and has an additional campus in Melbourne. The College offers a range of courses in management, marketing, human resources and international business. It currently has around 500 international students enrolled across all of its courses. Courses are offered at all levels, from Certificate II to Graduate Diploma. King Edward VII College is very popular due to its competitive pricing structure, innovative teaching methods and state of the art facilities. However, due to the decline in international students because of COVID-19 it wants to expand into other areas, most notably enrolling Australian students. The College currently employs 25 staff members that include the CEO, a Finance manager, Sales and Marketing Manager and Sales and Marketing Assistant, Promotions Officer, Human Resources Manager, Operations Manager, Administration Manager, Office Assistant, Receptionist, Academic Manager, Student Services Officer and approximately 14 trainers and assessors. There is also a Board of Directors consisting of the four owners of the company. As the Sales and Marketing Manager for the company, you are allocated a budget each year to spend on marketing. The marketing budget is a key item to achieve overall sales targets. This year the budget you have been allocated is $80,000. Your budget does not include salaries and wages of staff, which is accounted for through another cost centre. The marketing plan for the year includes the activities below. The amounts in brackets are the cost projections for each activity: Redesign web site to improve branding ($4,000 in December, another $4,000 in April and $2,000 in May) Design and implement an incentive scheme for referrals by students ($500 per month) Conduct a radio advertising campaign from the start of February until the end of June, costing $4,000 per month Online communications: newsletters, websites. Blogs, Twitter (zero cost: staff time only) Google ads ($500 per month) Graphic design ($5,500) Stand at the Education Expo in December (Package deal $10,000) Develop and publish Promotional Brochure in November ($2,500) Sponsor a community organisation to improve local community profile ($20,000 in March) There is a desire to conduct a TV advertising campaign and a quote of $30,000 has been received to run the campaign over a week. This is obviously well over the budget limit. However, it is considered that this type of advertising will be beneficial. This year due to the high marketing expenses the usual contingency amount of $10,000 has not been factored in. Executive Summary King Edward VII College Strategic Business Plan 2021-2023 King Edward VII College Strategic Business Plan 2021-2023 Established five years ago, King Edward VII College is a Registered Training Organisation (RTO) that provides training to students in business and management. Our principal purpose is to provide high quality training services to satisfy students' needs. Our training is nationally recognised and accredited to meet vocational and educational standards. Courses are designed by highly qualified staff with extensive industry and training experience to achieve teaching and learning excellence, flexibility and personal satisfaction. We draw on our established relationships with industry and other stakeholders to ensure our courses are appropriate to the demands of our clients and consistently meet their expectations. Quality is maintained in compliance with the national VET Quality Framework and through our continuous improvement system. A key objective is to develop the required knowledge and skills for clients to be job ready and competently undertake their chosen role in a wide range of business areas. Mission King Edward VII College provides high quality industry training that engenders participation and achievement. Strategic Objectives To be a leader in vocational education and training To be a leader in innovation in the vocational education and training sector 2 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 46 48 Executive Summary King Edward VII College Strategic Business Plan 2021-2023 Established five years ago, King Edward VII College is a Registered Training Organisation (RTO) that provides training to students in business and management. Our principal purpose is to provide high quality training services to satisfy students' needs. Our training is nationally recognised and accredited to meet vocational and educational standards. Courses are designed by highly qualified staff with extensive industry and training experience to achieve teaching and learning excellence, flexibility and personal satisfaction. We draw on our established relationships with industry and other stakeholders to ensure our courses are appropriate to the demands of our clients and consistently meet their expectations. Quality is maintained in compliance with the national VET Quality Framework and through our continuous improvement system. A key objective is to develop the required knowledge and skills for clients to be job ready and competently undertake their chosen role in a wide range of business areas. Mission King Edward VII College provides high quality industry training that engenders participation and achievement. Strategic Objectives To be a leader in vocational education and training To be a leader in innovation in the vocational education and training sector To establish and maintain high quality infrastructure supporting clients and staff To be well led, high performing, profitable and accountable To develop our people and resources Values The core values underpinning our activities are: Sustain excellence in training and assessment. Promote innovation across all of our business operations. Be a collaborative and caring community. Embrace difference and diversity. Demonstrate integrity and equality of opportunity in all activities. Operate with openness and accountability. Overview This new business plan reflects our approach to the coming years. We commenced operations five years ago with relatively low student numbers which then increased significantly. We do not expect these numbers to increase significantly over the period 2021-2023 as we are currently nearing capacity in our Melbourne and Sydney campuses. We also expect stable costs for our existing campuses with no major increases expected. However, there will be significant financial investment required for the new campuses. Resourcing Financial Due to the success of the College to date, there are significant cash reserves to fund the new campuses, plus general initiatives, including quality training and assessment and continuous improvement and innovation. Our financial objectives are to maintain these cash reserves, whilst still investing in the future. Our sales targets are $5,000,000 per year. Maintain a net profit ratio of at least 40%. Staffing Regarding staffing, existing staff will perform key functions across the new campuses such as human resources and marketing. They will also perform any new functions arising such as responsibility for quality and innovation. Operational Objectives The following identifies the operational objectives we plan to achieve in pursuit of our strategic objectives. 2021 July September October December 2022 January January Priorities Improve web site information to attract more students Conduct annual internal audit Develop and implement a cultural sensitivity and awareness program for staff Staff performance reviews Priorities Identify staff required for new campuses Provide information sessions showcasing the College (existing campuses) Key performance indicators 10% increase in students by June 2021 Improve market share by 5% Audit conducted, and continuous improvement identified All staff trained in cultural awareness All staff performance reviews conducted Key performance indicators Staff recruited and in place Identify at least 50 potential sign ups 0 6 8 10 12 14 16 December 18 20 Staff performance reviews 22 24 26 28 30 32 34 36 38 40 42 46 48 All staff performance reviews conducted 2022 January January March July November 2023 February July November The Market Market characteristics & conditions Priorities Identify staff required for new campuses Provide information sessions showcasing the College (existing campuses) Develop online learning for all courses Conduct annual internal audit Staff performance reviews Priorities Undertake scoping study for possible offshore campus Conduct annual internal audit Staff performance reviews Key performance indicators Staff recruited and in place Identify at least 50 potential sign ups All courses offered online by end 2022 Audit conducted, and continuous improvement identified Increase student numbers by 12% by June 2022 All staff performance reviews conducted Key performance indicators Scoping study completed by June 2023 and decision made as to whether to proceed Audit conducted, and continuous improvement identified All staff performance reviews conducted King Edward VII College has two broad segments to its target market consisting of people wishing to gain entry to the industry, as well as people already working in business and management who want to formalise or develop their skills. Workforce needs for this sector have been identified as the need to develop an adaptive, responsive and diverse workforce, keep up with technology and to build effective leadership and management skills. This has informed King Edward VII's choice of course delivery. We also intend to capitalise on market needs for delivery of blended (classroom and online), as well as online courses. There are many training providers in our sector and King Edward VII seeks to offer a point of difference through our competitive pricing structure, innovative teaching methods and state of the art facilities. Situation Analysis Strengths Price, value and quality Clear understanding of student requirements Delivery mode suitable for client requirements High quality learning & assessment materials Committed to quality ethical practice Ability to adapt to changing market conditions Effective and practical policies and procedures Competitive pricing Friendly organisational culture Level of available finance for investment Opportunities Potential for offshore delivery Target market experiencing growth To target other States and Territories Current portfolio of courses popular in target markets Potential to apply for Government funding Explore innovative processes and product offerings Marketing Strategies Weaknesses Focus on business and management courses only High staff turnover of trainers Lack of diversity in workforce Threats Changes in Industry/Government legislation affecting students Adverse effects of government policies High level of competition Other RTO's bad/malpractice creating poor perception of training providers to clients Predicted uncertainties in the world economy impacting level of demand for training Low price competitors Failing to satisfy clients demands Potential students make their decisions based on the reputation of the organisation, quality of courses, pricing, employment options and personal recommendations amongst other factors. Our strong vocational emphasis and continual industry consultation will ensure our courses are appropriate to develop the skills and knowledge currently demanded by employers and students. Our market decisions are based on extensive and continuous market research, targeting market segments and clients within industry. We collect our data from a variety of sources including current and potential clients, VET and business sectors, competitors, media and government along with many other sources. We plan to develop our market share by: Offering online and blended learning Providing face to face information sessions Improving our web site Continually improving the quality of service given to clients' pre-enrolment, during course delivery and through the provision of support services while remaining price competitive Focusing on the provision of courses required by industry Maintaining effective communication channels with all stakeholders to ascertain industry requirements and then develop products and manage services accordingly Continually improving communication channels with all our stakeholders, ensuring a flow of timely and accurate information to facilitate effective planning and decision making Consistently satisfying individual client needs and demands at the same time as developing the knowledge and skills required by industry Targeting identified growth markets with planned, market appropriate campaigns employing a variety of promotional strategies and advertising mediums Offering attractive fee structures to our clients Continually improving the skills, knowledge and effectiveness of King Edward VII College through our commitment to training and development Regularly reviewing the effectiveness of all our operations and making improvements when and where necessary 0 10 12 14 20 22 24 26 30 32 There are many training providers in our sector and King Edward VII seeks to offer a point of difference through our competitive pricing structure, innovative teaching methods and state of the art facilities. Situation Analysis Strengths Price, value and quality Weaknesses 36 38 40 42 48 Clear understanding of student requirements Delivery mode suitable for client requirements High quality learning & assessment materials Committed to quality ethical practice Ability to adapt to changing market conditions Effective and practical policies and procedures Competitive pricing Friendly organisational culture Level of available finance for investment Opportunities Potential for offshore delivery Target market experiencing growth To target other States and Territories Current portfolio of courses popular in target markets Potential to apply for Government funding Explore innovative processes and product offerings Marketing Strategies Focus on business and management courses only High staff turnover of trainers Lack of diversity in workforce Threats Changes in Industry/Government legislation affecting students Adverse effects of government policies High level of competition Other RTO's bad/ malpractice creating poor perception of training providers to clients Predicted uncertainties in the world economy impacting level of demand for training Low price competitors Failing to satisfy clients demands Potential students make their decisions based on the reputation of the organisation, quality of courses, pricing, employment options and personal recommendations amongst other factors. Our strong vocational emphasis and continual industry consultation will ensure our courses are appropriate to develop the skills and knowledge currently demanded by employers and students. Our market decisions are based on extensive and continuous market research, targeting market segments and clients within industry. We collect our data from a variety of sources including current and potential clients, VET and business sectors, competitors, media and government along with many other sources. We plan to develop our market share by: Offering online and blended learning Providing face to face information sessions Improving our web site Continually improving the quality of service given to clients' pre-enrolment, during course delivery and through the provision of support services while remaining price competitive Focusing on the provision of courses required by industry Maintaining effective communication channels with all stakeholders to ascertain industry requirements and then develop products and manage services accordingly Continually improving communication channels with all our stakeholders, ensuring a flow of timely and accurate information to facilitate effective planning and decision making Consistently satisfying individual client needs and demands at the same time as developing the knowledge and skills required by industry Targeting identified growth markets with planned, market appropriate campaigns employing a variety of promotional strategies and advertising mediums Offering attractive fee structures to our clients Continually improving the skills, knowledge and effectiveness of King Edward VII College through our commitment to training and development Regularly reviewing the effectiveness of all our operations and making improvements when and where necessary. King Edward VII College Financial management Policy and Procedures King Edward VII College Budget Policy and Procedures Purpose of the Policy King Edward VII College will operate in a financially sustainable manner balancing revenue and expenditure. Our financial planning process are as follows: Financial objectives set for each year. Budgets set for each year. Procedures Budgets are set for each applicable department. Budgets are based on expected sales and expenses. Budgets will be set by the finance team. Each manager must review their budget and may contact the finance team for any revisions. They must present a clear argument for any changes. A contingency amount is usually included in each budget to account for unexpected costs. Managers are expected to inform their team of the budget and to provide them with the required resources and systems so as to fulfill their roles. Generally this will include regular meetings to monitor the budget. Team members are expected to report all expenses to managers by providing receipts and so on. Budgets should be monitored by each Manager every month using our accounting system, Xero, to make sure expenses are on track. Where changes are required, the finance team may be contacted to discuss this. This should also include where contingency amounts need to be varied. Each manager must review their budget amount versus actual amount at the end of the reporting period. Variances of up to 5% over budget are acceptable. Differences between actual and budgeted amounts must be described, as well as justifications for such. King Edward VII College Finance Authorisation Policy and Procedures Purpose of the Policy All finance transactions as noted in this policy are to be authorised by the noted authorised person prior to the transaction being undertaken. This policy is to be read in conjunction with other specific finance policies where relevant. Dessadurse 10 12 14 16 18 20 22 26 28 30 34 36 38 40 42 48 King Edward VII College Finance Authorisation Policy and Procedures Purpose of the Policy All finance transactions as noted in this policy are to be authorised by the noted authorised person prior to the transaction being undertaken. This policy is to be read in conjunction with other specific finance policies where relevant. Procedures Prior to any of the following finance transactions being undertaken, the authorising person noted must authorise the transaction. Where additional policy is noted, this policy must also be adhered to when undertaking the finance transaction. Finance Transaction Bank Accounts Issuing Petty Cash Business Credit Card Authorising New Customers Authorising New Suppliers Purchasing Stock Purchasing Assets/ Equipment Debt Collection Payment of Invoices Petty Cash Policy Purpose of the Policy Authorised Person CEO/Finance Manager Senior Managers Senior Managers Finance Manager Finance Manager Senior Managers CEO Senior Managers Senior Managers Petty cash should be used to pay for small business expenses up to $100 where payments through accounts payable or credit card are not justified or appropriate Procedures Issuing Petty Cash Petty cash vouchers must be completed before any cash is taken from the petty cash float. Only up to $100 can be disbursed at any one time. All petty cash vouchers issued must be approved by a Senior Manager. Once the petty cash is spent, a receipt or invoice should be attached to the voucher and returned to petty cash with any balance of monies unspent All completed vouchers must have the following details included: Issue date of voucher; Name of person who issued the voucher; Amount of monies disbursed; Details of expense; Invoice or receipt Signature of approval person Reconciling Petty Cash Petty cash float is to be reconciled at least monthly. This is the responsibility of {insert relevant job title here} All petty cash expenditure must be entered into the financial system once the petty cash has been reconciled. The balance of monies and vouchers must equal the petty cash float amount before reimbursement can be made. Reimbursement of petty cash will be authorised by a Senior Manager. Use of Business Credit Card Policy Purpose of the Policy This policy provides guidelines for the issue and use of business credit cards. Procedures An employee will only be issued a credit card once the Credit Card Authorisation Form has been completed. The business credit card can only be used for travel, authorised entertainment and purchases of small value expenses or equipment up to the value of $500. No cash advances are to be taken using the business credit card unless authorised by the Finance Manager. Where a business credit card is lost or stolen, the owner of this card is to notify the Finance Manager, who is responsible for notifying the issuing agency and ensuring the card is cancelled. The business credit card is not to be used for personal expenses. All holders of business credit cards are required to reconcile the monthly credit card statement to the expense form, attach all receipts for payments made on the credit card and have the expense statement authorised by the Finance Manager. Upon completion and authorisation of the monthly expense statement, these documents are to be forwarded to the Finance Manager for payment of the credit card statement. All business credit cards are to be returned to the business when the person is requested to by the Finance Manager or where they are no longer an employee of the business. New Supplier Policy Purpose All new suppliers to the business must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the business objectives. Procedures Choosing a New Supplier A new supplier must provide our business with quality products, great service, competitive pricing and efficient delivery. The following information table must be completed prior to agreeing to services Supplier Selection Background Information Business Name of Supplier: 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 46 48 Upon completion and authorisation of the monthly expense statement, these documents are to be forwarded to the Finance Manager for payment of the credit card statement. All business credit cards are to be returned to the business when the person is requested to by the Finance Manager or where they are no longer an employee of the business. New Supplier Policy Purpose All new suppliers to the business must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the business objectives. Procedures Choosing a New Supplier A new supplier must provide our business with quality products, great service, competitive pricing and efficient delivery. The following information table must be completed prior to agreeing to services Supplier Selection Background Information Business Name of Supplier: Location of Supplier: Products/Services provided by supplier: (Attach a list if necessary) Name of business owner/ sales representative: For how many years has the supplier been trading? Supplier Selection Review Checklist For each new supplier being considered the following checklist must be completed: Is the supplier pricing competitive? What are the payment terms for this supplier? What is the return policy for this supplier? Does the supplier provide warranties, guarantees etc.? Are the suppliers' representatives knowledgeable of the products/services and industry? Is there an alternative to this supplier, has the alternative supplier been considered? What are the delivery services of the supplier? Has a credit check been undertaken for the supplier? (attach to this checklist) Has the Personal Property Securities Register (PPSR). been reviewed? Has the supplier been trade checked? (attach this to this checklist) Insert relevant additional information to assist in the decision of appointing a new supplier Appointment of Supplier The appointment of a new supplier will be authorised by the Finance Manager. All relevant details of the supplier will be entered into the financial system by Administration Assistance once approval is obtained from the Finance Manager. The Finance Manager will review information entered into the financial system and independently verify the bank account or other payment details of the supplier to ensure payments made are to the correct supplier Supplier Payment Terms All purchases from suppliers must be supported by a purchase order. Payment terms for all suppliers must be reviewed by (Insert relevant job title here} every {Insert timing of review here, recommended at least once a year). Following this review each supplier must be approached to seek improved payment terms by Finance Manager. All supplier payment terms must be a minimum of 30 days. Any variation to the above must be authorised by Finance Manager. All supplier payments are to be reviewed once a quarter to ensure that payment terms are adhered to. For payments made to any suppliers earlier or later than the agreed terms. The Finance Manager will prepare a report that details the reasons why payment terms have not been adhered to. This report will be reviewed and authorised by the CEO. Please review this report in order to be able to complete Section 3 of your Portfolio. Website Referral scheme Radio advertising Google ads Graphic design Television advertising Education expo Promotional brochure Community sponsorship Notes on budget: Budget Report - end of reporting period Actual marketing spend $12,500 $470 per month - 5640 Cancelled $700 per month $5,550 $30,000 $10,000 $2,500 $20,000 Purpose 10 12 14 16 18 20 22 26 28 30 32 34 36 38 40 42 46 48 All new suppliers to the business must be reviewed and accepted in accordance with this policy to ensure that the supplier service is aligned with the business objectives. Procedures Choosing a New Supplier A new supplier must provide our business with quality products, great service, competitive pricing and efficient delivery. The following information table must be completed prior to agreeing to services Supplier Selection Background Information Business Name of Supplier: Location of Supplier: Products/Services provided by supplier: (Attach a list if necessary) Name of business owner/ sales representative: For how many years has the supplier been trading? Supplier Selection Review Checklist For each new supplier being considered the following checklist must be completed: Is the supplier pricing competitive? What are the payment terms for this supplier? What is the return policy for this supplier? Does the supplier provide warranties, guarantees etc.? Are the suppliers' representatives knowledgeable of the products/services and industry? Is there an alternative to this supplier, has the alternative supplier been considered? What are the delivery services of the supplier? Has a credit check been undertaken for the supplier? (attach to this checklist) Has the Personal Property Securities Register (PPSR). been reviewed? Has the supplier been trade checked? (attach this to this checklist) Insert relevant additional information to assist in the decision of appointing a new supplier Appointment of Supplier The appointment of a new supplier will be authorised by the Finance Manager. All relevant details of the supplier will be entered into the financial system by Administration Assistance once approval is obtained from the Finance Manager. The Finance Manager will review information entered into the financial system and independently verify the bank account or other payment details of the supplier to ensure payments made are to the correct supplier Supplier Payment Terms All purchases from suppliers must be supported by a purchase order. Payment terms for all suppliers must be reviewed by (Insert relevant job title here} every (Insert timing of review here, recommended at least once a year). Following this review each supplier must be approached to seek improved payment terms by Finance Manager. All supplier payment terms must be a minimum of 30 days. Any variation to the above must be authorised by Finance Manager. All supplier payments are to be reviewed once a quarter to ensure that payment terms are adhered to. For payments made to any suppliers earlier or later than the agreed terms. The Finance Manager will prepare a report that details the reasons why payment terms have not been adhered to. This report will be reviewed and authorised by the CEO. Please review this report in order to be able to complete Section 3 of your Portfolio. Website Referral scheme Radio advertising Google ads Graphic design Television advertising Education expo Promotional brochure Community sponsorship Notes on budget: No contingency amount factored into the original budget. Monthly monitoring missed on three occasions. Staff report difficulty in understanding how to monitor budgets. Budget Report - end of reporting period Actual marketing spend $12,500 $470 per month - 5640 Cancelled $700 per month $5,550 $30,000 $10,000 $2,500 $20,000