Assessment 3 -Role Play No 2

Monitor and review operational performance

Scenario:

Imagine you are reviewing the company's performance for the two new sites for six months from July to

December 2016.

You will be provided with a profit and loss account for review, which you will be required to analyse and

provide a report to the CEO outlining performance in relation to the budget.

You have also been asked to review costs associated with electricity, office supplies and water as a means

of assessing the company's use of resources.

Based on the performance of the company, you will also be required to seek a variation to the Operational

Plan to recruit two new Academic Managers, one for each campus. This is because the higher than

expected student numbers led to a lack of time for the existing Academic Manager to manage all three

campuses.

1. Analyse the information provided in the interim Profit and Loss Account including:

? Calculation of net profit or loss for each campus

? Calculation of variances between actuals and budgeted expenses - noting that variances of up

to and including 10% are acceptable and do not need to be reported

COMPLET ALL AREAS HIGHLIGHTED IN YELLOW.

2. Based on your analysis of the profit and loss account, develop a short report to send to the CEO

that:

a) Outlines financial performance based on the figures in the profit and loss account

b) Identifies variances higher than 10%

c) Compare the performance of each campus

d) Recommends solutions in relation to expenditure items where variances are higher than 10%

e) Seeks a variance to the original operational plan - due to the large number of enrolments - to

recruit two new Academic Managers, one for each campus

Ensure your report is structured in a logical format that makes use of headings. You may also include

graphs and charts to visually represent your data. Submit your report to your assessor.

3. Based on your review of the expenditure on energy usage as documented in the profit and loss

account, you are required to develop and send a memo to all staff about effective and economical use of

resources. The purpose of the memo is to coach staff in using resources wisely and so you should include

at least 10 simple actions that all staff can follow to conserve energy.

For the role play you will negotiate the recommendations for a variation in the Operational Plan.

Meet with the CEO (your assessor) to discuss your variation recommendation of employing two Academic

Managers.

The purpose of this meeting is to use your skills to gain approval for the variation from the CEO (your

assessor). This means that you will need to demonstrate a range of high-level communication and

interaction skills such leadership, influence, negotiation and collaboration. You may decide how to present

this information to gain the approval. You will have 10 minutes to do so. Ensure that you decide with your

assessor for access to any type of equipment for your meeting. Based on your meeting with the CEO, your

assessor will approve the variation to the operational plan.

Profit and Loss - six months to Dec 16 - Year 1 SYDNEY Description Budget Actuals Variance (+/-) Sales /Income: $450,000 $475,000 Expenses Electricity and gas $1,500 $3,000 Internet $1,000 $1,100 Office supplies $700 $1,200 Rent $225,000 $220,000 Stationery $800 $1,300 Wages and salaries $115,000 $117,000 Superannuateon $15,000 $16,000 expense Travel and $2,500 $2,700 accommodation Water $2,000 $2,600 Work cover insurance $900 $900 Total expense $363,400 Net Profit $86,600Profit and Loss - six months to Dec 16 - Year 1 BRISBANE Description Budget Actuals Variance (+/-) Income/Sales $350,000 $410,000 Expenses Electricity and gas $1,200 $2,800 Internet $1,100 $1,100 Office supplies $650 $1,300 Rent $185,000 $190,000 Stationery $700 $1,250 Wages and salaries $115,000 $117,000 Superannuateon $15,000 $16,000 expense Travel and $2,100 $2,300 accommodation Water $1,900 $2100 Work cover insurance $870 $870 Total expense $323,520 Net Profit $26,480