Appendix

Chapter 1 - Business plan (excerpt)

From Max Lionel Realty business plan FY 2018/19

About Max Lionel Realty

Max Lionel Realty (MLR) was founded in 2008 by property developer Max Lionel. The

company currently has 10 branches and employs approximately 100 people, 80 of

whom are licensed real estate agents.

Through its client agents, the organisation manages property sales and rentals (both

residential and commercial) on behalf of a range of clients. The organisation also

separately engages in investment activities, such as property and land development.

Max Lionel Realty has been a member of the Real Estate Institute of New South Wales

since 2008 and proudly follows the REINSW Code of Conduct.

Mission:

to achieve the highest returns for our clients and to deliver a client experience

that is second to none in the industry.

Vision:

to establish, within five years, the MLR brand the highest ethical standards

with best-in-breed performance for clients.

Values:

integrity

client-focus

active encouragement of excellence, innovation and continuous improvement

teamwork

recognition of the diversity and expertise of MLR employees and agents.

Strategic directions:

The strategic context in which Max Lionel Realty will achieve its mission and vision is

through:

engaging with customers and clients

building goodwill and reputation for integrity

supporting innovative thinking, management and leadership skills.

creating a high-performing, highly profitable organisation.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 4 of 19

Chapter 2 - Organisational chart and management profiles

Max Lionel Realty Pty Ltd organisational chart

Board of Directors

and CEO

Max Lionel

Chief Financial Officer

Riz Mehra

Operations General

Manager

Kim Sweeney

Career Development

Manager

You

Human Resources

Manager

Les Goodale

Manager Residential

and Commercial

Realty (Sales and

Rentals)

Pat Mifsud

Manager Investments

Peter Mitchell

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 5 of 19

Chapter 3 - Management responsibilities

Max Lionel, CEO

Max is responsible for working with the Board of Directors to oversee the business, set

overall strategic directions, manage risk, and authorise large financial transactions.

Riz Mehra, Chief Financial Officer

Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz

is also responsible for overseeing budgets for cost centres and individual projects. At the

completion of financial quarters and at the end of projects, Riz is responsible for viewing

budget variation reports and incorporating information into financial statements and

financial projections.

Kim Sweeney, Operations General Manager

Kim is responsible for the day-to-day running of the company. Kim oversees the

coordination, as well as the structural separation, of the Residential, Commercial, and

Investments centres. Kim is responsible for sponsoring projects which affect operations

of the organisation as a whole. Kim works with the Human Resources Manager to

coordinate systems and projects in order to achieve company-wide synergy.

Les Goodale, Human Resources Manager

Les is responsible for the productive capacity and welfare of people at MLR. With the

Operations General Manager, Kim works to coordinate projects and management

systems such as performance management, recruitment, and induction. Kim will need to

ensure aspects of the recently launched WHS management system, such as risk

assessment, management, consulting, reporting and continuous improvement, are

coordinated with all subsequent activities.

You, Career Development Manager

You are responsible for ensuring the Company's personnel are suitably qualified for their

job role and the organisations current and future human resources needs are met. You

will need to develop a collaborative partnership with a local Registered Training

Organisation in order to deliver the CPP40307 Certificate IV in Property Services to

current and future staff members who want to become licensed Real Estate Agents.

Pat Mifsud, Manager Residential and Commercial Realty

Pat is responsible for the management of all aspects residential and commercial realty.

Pat manages the activities of commercial agents.

Peter Mitchell, Manager Investments

Peter is responsible for the management of all aspects investment realty. Peter manages

the activities of investment agents. Peter works with the Operations General Manager to

ensure separation of investment from obligations to residential and commercial clients.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 6 of 19

Chapter 4 - Budget summary

Max Lionel Realty Pty Ltd 2018-19 budget by activities to be

undertaken

Income:

Commissions, fees from

clients

$2,566,000 Commissions and agents' fees for the

period.

Investment income $1,567,000 Real estate investment income.

COGS $150,413 Cost of provision of services.

Total Income $3,982,587 Gross profit.

Expenses:

Wages, salaries and on-

costs

$1,567,890 Wages, salaries, superannuation, work

cover insurance, payroll tax.

Consultancy fees

Training and development

expenses

$25,000

$25,000

Project management: WHS management

system; AD awareness program.

Cost of staff training and professional

development activities.

Communication expenses $42,000 Telephone, ISP costs, IT support.

Staff travel, transport and

accommodation

$55,500 Cost of staff travel and associated costs

for sales, etc.

Premises expenses $250,000 Rent, electricity, maintenance, cleaning.

Capital expenditure $120,000 Purchase of new office equipment (90%),

vehicles; purchase of properties, land.

Depreciation and

amortisation

$177,569 Computers and capital equipment that is

depreciated.

Office supplies $65,068 Printing and stationery, postage,

amenities.

Professional fees

(consultants, legal and

audit), insurances, taxes and

charges, subscriptions and

memberships

$62,187 Audit fees, external accounting costs,

bank charges, insurance except workers

compensation.

Total Expenses $2,390,214

Surplus $1,592,373 Net income before tax.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 7 of 19

Chapter 5 - Strategic plan

To expand from 10 to 15 branches over the next two financial years.

Chapter 6 - Operational plan

Max Lionel Realty Pty Ltd operational plan (summary) FY 2018/2019

Objectives Performance measures Tasks

1 Engage workers with

strategic goals of

business and

support professional

development in line

with strategic goals.

Sufficient number of qualified

staff to support the

organisations strategic goals.

MOU partnership reporting

systems.

Percentage completion of

performance plans and

performance management

process.

Numbers of coaching sessions

completed.

Numbers of operational-

related training programs

completed.

Management engagement with employees to achieve greater buy-in

of organisational goals.

In all communications to internal personnel, include explanation of

how activities work with organisational strategic goals.

Regular coaching.

Training needs analysis and training.

Strategic goals included in induction program for estate agents.

Employee incentives for performance in all areas relevant to

operational and strategic goals.

2 Engage with

customers/build

ethical profile:

Percentage of brand recognition

in sought-after categories in

periodic customer surveys.

Project to raise awareness of anti-discrimination, WHS and other

legislation/codes of conduct among agents, clients, tenants.

Conduct of quarterly surveys: clients and tenants.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 8 of 19

Max Lionel Realty Pty Ltd operational plan (summary) FY 2018/2019

Objectives Performance measures Tasks

raise

organisational

profile by 20%

improve client

satisfaction

performance by

25%.

Percentage of customers with

positive view of organisational

responsiveness, innovation,

quality.

Number of client/tenant

complaints.

Training needs analysis and training of agents.

Ensure agents disclose potential conflict of interest to clients,

tenants.

Development of ethical charter, including principles all agents must

follow.

3 Increase revenues by

20% within the third

quarter.

Total income.

Agent income.

Investment income.

Investigate resourcing needs: number of agents; personnel; office

equipment, cars, etc.

Fulfil resourcing needs in accordance with policies and procedures.

4 Reduce direct and

indirect costs of

operations by 10%.

General ledger accounts;

financial statements:

wages

cost of agent services

consultancy fees

wastage and associated

expenses.

Renegotiate with suppliers.

Research potential new suppliers.

Management engagement with employees to achieve greater

employee support of organisational goals.

Include explanation of how activities work with organisational

strategic goals in all communications to internal personnel.

Greater use by managers of budgets to encourage restraint.

Greater focus on budget restraint in management of projects.

5 Improve health of

employees (range of

specific areas).

Numbers of injuries (Target = 0).

Numbers of absentees

(Target = <3% of total hours).

Training needs analysis and training on WHS and implementation of

recently launched MLR WHS management system.

Research incentives for safe work achievement and healthy lifestyle.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 9 of 19

Chapter 7 - Operational risk register

Max Lionel Realty Pty Ltd risk register FY 2018/2019

Identified risk Probability Impact Current controls Future actions

Failure to recruit qualified real estate agents

due to increased competition.

Medium High Partnership arrangement with local

Registered Training Organisation.

All office equipment regularly

reviewed and updated as required; IT

security monitored and maintained.

Appropriate insurances held and

coverage reviewed annually.

Managers encouraged and

incentivised to follow performance

management policy.

Employee performance plans align

with business plan and six-monthly

review process in place.

Project to raise awareness of anti-

discrimination, WHS and other

legislation/codes of conduct among

agents, clients, tenants

Appropriate HR policies and

procedures in place.

WHS management system in place.

Industry benchmarking in

all areas of organisational

performance.

Conduct periodic reviews of

agent performance to

ensure professional

conduct.

Staff trained in use of

technology as needed.

Keep abreast of changes in

potential liabilities.

Review and develop HR-

related policies where

required.

Development of ethical

charter, including principles

all agents must follow.

Failure to realise revenue gains due to

recent slump in real estate prices.

High High

Inadequate insurance cover. Low High

Non-compliance on anti-discrimination. Medium High

Perception of discriminatory practice

reducing client and tenant base.

Medium High

Poor organisational culture; low level of staff

engagement and morale.

Medium Medium

Loss of knowledge and capability through

departing staff.

Low High

Failure to meet occupational health and

safety requirements.

Low High

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 10 of 19

Chapter 8 - Work Health and Safety

(WHS) policy

Max Lionel Realty Pty Ltd WHS policy

Max Lionel Realty recognises its responsibility to provide a healthy and safe working

environment for employees, contractors, clients and visitors. Max Lionel Realty is

committed to the continued wellbeing of its employees and to ensuring that all employees

are safe from injury and health risks whilst undertaking work-related duties, including

home-based work.

Purpose In order to ensure a healthy and safe working environment, Max

Lionel Realty will (in accordance with the WHS management

system):

undertake risk assessments and implement procedures to

adequately manage any risks in the working environment

provide written procedures and instructions for safe

working practices

ensure compliance with all relevant legislation

maintain safe systems of work including the work premises

and environment

provide appropriate support, instruction, training and

supervision to employees to ensure safe working practices.

Scope The scope of this policy covers employees and contractors of Max

Lionel Realty (MLR).

Resources Specific procedures for the implementation of this policy are

available below and on the company intranet.

Responsibility Max Lionel Realty management and employees are ultimately

responsible for ensuring that safe systems of work are

established, implemented and maintained.

Management is responsible for:

the effective implementation and regular review of WHS

procedures

consultation with employees regarding health and safety

issues and changes to legislation and/or working practices

which may affect the health, safety or welfare of employees

providing and maintaining a safe system of working

practices

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 11 of 19

providing support, training, and supervision to employees to

ensure safe and healthy workplace practices are carried

out, including relevant first aid training where appropriate

the provision of adequate resources for employees to meet

the WHS commitment, including an up-to-date first aid kit.

Individual employees are responsible for:

following all WHS policies and procedures

ensuring they report all potential and actual risks to

partners or managers/supervisors

taking care to protect their own health and safety and that

of their colleagues at work

ensuring their own or others' health and safety is not

adversely affected by the consumption of drugs or alcohol

encouraging others to follow healthy and safe working

practices in the workplace.

Policy

implementation

and review

This policy has been established and implemented through the

human resource functions of the organisation and will be

reviewed regularly in consultation with MLR management and

employees to ensure compliance with legislation, industry

standards and organisational changes.

Relevant

legislation, etc.

Privacy Act 1988 (Cwlth)

Property, Stock and Business Agents Act 2002 (NSW)

Anti-Discrimination Act 1977 (NSW)

Work Health and Safety Act 2011 (NSW)

AS/NZS 4804:2001 Occupational health and safety

management systems - General guidelines on principles,

systems and supporting techniques

Updated/

authorised

10/2018 - Riz Mehra, CFO

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 12 of 19

Chapter 9 - Anti-discrimination policy

Max Lionel Realty Pty Ltd anti-discrimination policy

Purpose The purpose of this policy is to ensure transactions with clients,

tenants and other employees are handled fairly and

transparently, and in accordance with organisational and legal

requirements. Generally it is unlawful to discriminate on the

basis of the following 16 characteristics:

sex

relationship status

pregnancy

parental status

breastfeeding

age

race

impairment

religious belief or

religious activity

political belief or activity

trade union activity

lawful sexual activity

gender identity

sexuality

family responsibilities

association with, or

relation to, a person

identified on the basis of

the above.

Scope The scope of this policy covers all employees and contractors of

Max Lionel Realty (MLR).

Resources Specific procedures for the implementation of this policy are

available below and on the company intranet.

Responsibility Responsibility for the implementation of this policy rests with all

employees, contractors and management of Max Lionel Realty.

Relevant

legislation, etc.

Privacy Act 1988 (Cwlth)

Anti-Discrimination Act 1977 (NSW)

Age Discrimination Act 2004 (Cwlth)

Australian Human Rights Commission Act 1986 (Cwlth)

Disability Discrimination Act 1992 (Cwlth)

Racial Discrimination Act 1975 (Cwlth)

Sex Discrimination Act 1984 (Cwlth)

Property, Stock and Business Agents Act 2002 (NSW)

Updated/

authorised

10/2018 - Riz Mehra, CFO

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 13 of 19

Chapter 10 - Procurement policy and procedures

Max Lionel Realty Pty Ltd procurement policy

Purpose The purpose of this policy is to ensure the acquisition of

resources is carried out consistently, fairly and transparently

and in accordance with organisational requirements.

Scope The scope of this policy covers the purchasing and acquisition of

resources by employees and contractors of Max Lionel Realty

(MLR).

Resources Specific procedures for the implementation of this policy are

available below and on the company intranet.

Responsibility Responsibility for the implementation of this policy rests with

those employees and management of Max Lionel Realty who

have responsibility for purchasing resources.

Relevant

legislation etc.

Privacy Act 1988 (Cwlth)

Property, Stock and Business Agents Act 2002 (NSW)

Anti-Discrimination Act 1977 (NSW)

Australian Securities and Investments Commission Act

2001 (Cwlth)

Corporations Act 2001 (Cwlth)

A New Tax System (Goods and Services Tax

Administration) Act 1999 (Cwlth)

A New Tax System (Goods and Services Tax) Act 1999

(Cwlth)

Income Tax Assessment Act 1997 (Cwlth)

Fair Work Act 2009 (Cwlth)

Work Health and Safety Act 2011 (NSW)

Updated/

authorised

10/2018 - Riz Mehra, CFO

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 14 of 19

14 Principles governing the Max Lionel Realty Pty Ltd procurement

process

1. Probity and ethical behaviour

The principle of probity and ethical behaviour governs the conduct of all procurement

activities. Employees who have authority to procure goods and services must comply with

the standards of integrity, probity, professional conduct and ethical behaviour. Employees

or directors must not seek to benefit from supplier practices that may be dishonest or

unethical.

2. Value for money

Value for money is the core principle underpinning procurement. Contracted

organisations must be cost-effective and efficient in the use of resources whilst upholding

the highest standards of probity and integrity. In general, a competitive process carried

out in an open, objective and transparent manner can achieve the best value for money

in procurement.

3. Non-discrimination

This procurement policy is non-discriminatory. All potential contracted suppliers should

have the same opportunities to compete for business and must be treated equitably

based on their suitability for the intended purpose.

4. Risk management

Risk management involves the systematic identification, analysis, treatment and, where

possible, the implementation of appropriate risk-mitigation strategies. It is integral to

efficiency and effectiveness to proactively identify, evaluate, and manage risks arising out

of procurement-related activities. The risks associated with procurement activity must be

managed in accordance with the organisation's risk management policy.

5. Responsible financial management

The principle of responsible financial management must be applied to all procurement

activities. Factors that must be considered include:

the availability of funds within an existing approved budget

staff approving the expenditure of funds strictly within their delegations

measures to contain costs of the procurement without compromising any

procurement principles.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 15 of 19

6. Procurement planning

In order to achieve value for money, each procurement process must be well planned and

conducted in accordance with the principles contained in this document, and comply with

all of the organisation's policies and relevant legal and regulatory requirements.

When planning appropriate procurement processes, consideration should be given to

adopting an approach that:

encourages competition

ensures that rules do not operate to limit competition by discriminating against

particular suppliers

recognises any industry regulation and licensing requirements

secures and maintains contractual and related documentation for the procurement

which best protects the organisation

complies with the organisation's delegations policy.

7. Buy Australian Made/support Australian industry

Employees who are involved in procurement activities must make a conscious effort to

maximise opportunities for Australian manufacturers and suppliers to provide products

where there is practicable and economic value. In making a value for money judgement

between locally made and overseas-sourced goods, employees are to take into account:

whole-of-life costs associated with the good or service

that the initial purchase price may not be a reliable indicator of value

the quality of locally made products

the record of performance and delivery of local suppliers

the flexibility, convenience and capacity of local suppliers for follow-on orders

the scope for improvements to the goods and 'add-ons' from local industry.

8. Pre-registered list of preferred suppliers

Max Lionel Realty shall maintain a pre-registered list of preferred suppliers, following a

request for expressions of interest and an evaluation of the submissions. Suppliers can

request to be evaluated for inclusion on the existing pre-register list at any time.

All purchases under $5,000 may be made from preferred suppliers without undertaking a

competitive process. Purchases above $5,000 where a preferred supplier exists should

include a competitive process if practicable.

This list is reviewed at regular intervals, with admission of interested parties on a rolling

basis. Care should be taken to ensure that such lists are used in an open and

non-discriminatory manner. Max Lionel Realty encourages new contractors to provide

information on their experience, expertise, capabilities, pricing, fees, and current

availability. It is in the interest of the organisation that the pool of potential suppliers is

actively maintained and updated. Employees should be encouraged to provide reports of

their experiences in working with each contractor/consultant to assist future decisions

concerning commissioning suitable contractors and consultants.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 16 of 19

9. Avoid conflict of interest

Employees and directors are required to be free of interests or relationships in all aspects

of the procurement process. Employees and directors are not permitted to personally gain

from any aspect of a procurement process.

Employees and directors shall ensure that to the best of their knowledge, information and

belief, that at the date of engaging a contractor no conflict of interest exists or is likely to

arise in the performance of the contractor's obligations under their contract.

Should employees or directors become aware of potential conflicts of interest during the

contract period, they must advise the CEO and the Board of Directors immediately.

Prior to any situation arising with potential for a conflict of interest, complete disclosure

shall be made to the CEO and the Board of Directors to allow sufficient time for a review.

10. Report collusive tendering

Employees should be aware of anti-competitive practices such as collusive tendering. Any

evidence of suspected collusion in tendering should be brought to the attention of the

CEO and the Board of Directors.

11. Competitive process

It is a basic principle of procurement that a competitive process should be used unless

there are justifiable circumstances. For purchases under $5,000, the list of preferred

suppliers may be used. The type of competitive process can vary depending on the size

and characteristics of the contract to be awarded.

12. Direct invitation (selective or restricted tendering)

A process of direct sourcing to tender may be used. This may involve:

an invitation to organisations deemed appropriately qualified for a particular

product or service (this may be appropriate for specialised requirements in markets

where there is a limited number of suppliers or service providers)

an invitation to tender to organisations on MLR's pre-registered list of preferred

suppliers, if applicable.

13. Evaluation and contract award

For projects being awarded, consideration will be given not only to the most economically

advantageous tender, but also to the track record of the tender respondent and the

degree of confidence that the panel has in the quality if the bid. It will be the normal

practice to have the evaluation of tenders carried out by a team with the requisite

competency.

14. Results of tendering process

All tender respondents should be informed in writing of the result of a tendering process

immediately after a contract has been awarded.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 17 of 19

Summary of procurement policy delegations

Authority Purchase amount Required number

of quotes

Comment

CEO and one

Director

Authority to sign

contracts for

products and

services over

$75,000.

Two or more

competitive quotes

for contracts over

$75,000.

Detailed services

contract required.

CEO Authority to sign

contracts for

products and

services up to

$75,000.

Two or more

competitive quotes.

Detailed services

contract required for

contracts over

$20,000.

General Managers

Delegated

authority only

through CEO

Authority to sign

contracts for

products and

services under

$30,000.

One or more

competitive quotes

preferred.

Provided they are

within the approved

budget and

consistent with

business/operational

and strategic

planning.

Managers Authority to sign

contracts for

products and

services under

$10,000.

One or more

competitive quotes

preferred.

Follow MLR

purchasing

procedures.

Agents Authority to sign

contracts for

products and

services under

$5,000.

Must use preferred

suppliers list.

Follow MLR

purchasing

procedures.

Contractors and

external

consultants

No authority. One or more

competitive quotes

preferred.

Must use preferred

suppliers list.

Contractors and

external consultants

must follow MLR

purchasing

procedures and must

seek approval for

purchases from

person holding

relevant authority.

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 18 of 19

Chapter 11 - Max Lionel Realty Pty Ltd current tenants list

BSBLDR803 Appendix 1 | Version: 1.1 | Implemented: 21st October 2019 | To be reviewed: 21st October 2021 | Page 19 of 19

Chapter 12 - List of pre-approved suppliers

Max Lionel Realty Pty Ltd

List of preferred suppliers and contractors

Ace Consultants: Project managers, IT technicians, technical writers, marketers,

subject matter experts for short- or long-term human resourcing needs

Innovative Travel: Business travel bookings

Melbourne Car World: Fleet sales and service

Ready Office Supplies: Computers, photocopiers, etc.

Coffeeville: Business function catering

Catering menu:

(viewed July 2015).

Questions

6. Answer the following:

a. Explain two (2) common data collection methods.

b. Which method will you use to develop a learning program for your team or

employees within an

organisation?

7. Explain the role of PEST analysis in external environment scanning in relation

to social, political, economic and technological developments?

8. Give examples of two positive workplace behaviours that should be used by

managers to assist in achieving business performance.

9. Explain emotional intelligence and its relationship to individual and team

effectiveness.

10. What are the four (4) four stages of transformational change in an

organisation? How can these

stages be managed?