Case study Online Media Solutions is a marketing and web development business based in Melbourne, Australia. From idea to design, development and marketing, we achieve results for our clients and grow their business. We have ventured into the web service industry to offer our superior and unique services to small businesses and organisations. Our experience and expertise in web sales and e-commerce give us the backing to provide solutions that are currently lacking in the market. There is an all-time high demand for web development and marketing for small businesses with signs of rising further. Interestingly, few web developers have taken advantage of this opportunity, leaving the industry with no dominant provider. The high costs of the projects and the focus on more prominent companies and organisations could be the contributing factor as to why this market remains untapped. We have a system that will reduce the project costs dramatically, giving us the opportunity to offer quality services at reduced prices. Mission Our professional team of specialists with industry expertise deliver solutions not only for leading brands but also for non-profit organisations and innovative start-up businesses. We aim to reach success by providing unique yet creative solutions to our customers that will elevate their online presence. Our vision Quality web solutions with a sound technical foundation that enable our clients to impress their customers and improve their online image worldwide. We want to make our customers stand out in the online environment and become the leading provider of online services for small and medium-sized businesses. Keys to success We will offer quality web services to small businesses and organisations at affordable prices. Customised and tailored services. Establishment of alliances and partnerships with internet service providers and organisations involved in computer consultancy Services offered We offer the following services to our clients: Interface and Web Design Services o E-commerce o Web developmento Responsive web design WordPress Development Solutions . HTML and CMS Development Services Coding Graphic Design Application development Online marketing Search Engine Optimisation O Pay Per Click (PPC) Marketing Content marketing O Social media marketing o Online Email Marketing Copyrighting Content and Production Copyright Web hosting and support Values Quality service to our clients Integrity and accountability Reliability Quality Innovation Respect Organisational hierarchyGeneral Manager Operations HR Manager Manager Marketing Finance Manager IT Manager Manager Team members Team members Team members Current scenario The organisation has provided you with the budget and financial plans for the work team and want you to manage the budget and financial plan for the organisation for the next financial year. Financial plan and budget Financial objectives To achieve a minimum error rate in the financial transactions processes. Reconcile the accounts and ensure the books meet the legislative and regulatory requirements. Forecast The company is expecting a net profit of $712,250 by the end of the current year. Following is an excerpt from the financial forecasts for the financial plan and budget for the financial year: Expenses by MonthTotal expenses 390,000 380,000 370,000 360,000 350,000 340,000 330,000 320,000 310,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total expensesNet profit by Month Net profit 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Net profit Projected master budget Master budget with profit projections Online Media Solutions Master Budget/Financial plan FY 2018/2019 FY Q1 Q2 Q3 Q4 REVENUE Commissions (2.5% sales 77,500 17,500 25,000 17,500 17,500 Direct wages fixed 200,000 50,000 50,000 50,000 50,000 Sales 3,100,000 700,000 1,000,000 700,000 700,000 Cost of Goods Sold 400,000 100,000 100,000 100,000 100,000 Gross profit 2,422,500 532,500 825,000 532,500 532,500 EXPENSES General & Administrative Expenses Accounting fees 20,000 5,000 5,000 5,000 5,000 Legal fees 5,000 1,250 1,250 1,250 1,250Bank charges 150 150 150 150 Office supplies 5,000 1,250 1,250 1,250 1,250 Postage & printing 400 100 100 100 100 Dues & subscriptions 500 125 125 125 125 Telephone 10,000 2,500 2,500 2,500 2,500 Repair & maintenance 50,000 45,000 2,000 2,000 1,000 Payroll tax 25,000 6,250 6,250 6,250 6,250 Marketing Expenses Advertising 200,000 50,000 50,000 50,000 50,000 Employment Expenses Superannuateon 47,500 11,875 11,875 11,875 11,875 Wages & salaries 500,000 125,000 125,000 125,000 125,000 Staff amenities 20,000 5,000 5,000 5,000 5,000 Occupancy Costs Electricity 40,000 10,000 10,000 10,000 10,000 Insurance 100,000 25,000 25,000 25,000 25,000 Rates 100,000 25,000 25,000 25,000 25,000 Rent 200,000 50,000 50,000 50,000 50,000 Petty cash 1,000 300 300 200 200 Water 30,000 7,500 7,500 7,500 7,500 Waste removal 50,000 12,500 12,500 12,500 12,500 TOTAL EXPENSES 1,405,000 383,800 340,800 840,700 339,700 NET PROFIT (BEFORE INTEREST & TAX) 1,017,500 148,700 484,200 191,800 192,800 Income Tax Expense (30%% Net) 305,250 44,610 145,260 57,540 57,840 NET PROFIT AFTER TAX 712,250 104,090 338,940 134,260 134,960Sales cost centre expense budget Sales Centre A Sales Centre B Sales Centre C Commissions $30,000 $15,000 $15,000 Wages 5150,000 $75,000 $75,000 Telephone $4,500 52,250 52,250 Office supplies $1,500 $750 $750 Note that the company deems a standard variance in budgets of up to 5% acceptable. Your roles and responsibilities You are working as a Finance Manager. You undertake financial management in your organisation. It includes planning and implementing financial management approaches and supporting and evaluating the effectiveness of financial management processes As part of your job role, you have the following job responsibilities: Communicate with relevant people to clarify budget and financial plans, negotiate changes and disseminate information Prepare, implement and modify financial contingency plans . Monitor expenditure and control costs . Support and monitor team members Report on budget and expenditure Review and make recommendations for improvements to financial processes Meet record-keeping requirements for the Australian Taxation Office (ATO) and for auditing purposes.This assessment task requires you to demonstrate skills to undertake financial management in your organisation and manage the budget and financial plan for one reporting period. It includes planning and implementing financial management approaches and supporting and evaluating effectiveness of financial management processes. In the course of the above, you must complete the following activities: Activity 1: Plan financial management approaches Activity 2: Implement the negotiated changes in the financial plan and budget Activity 3: Prepare a contingency plan Activity 4: Communicate revised master budget/financial plan and contingency plan to the team members Activity 5: Implement variations to the financial budgets Activity 6: Report on budget and expenditure Activity 7: Recommend improvement to financial processes The roles and their responsibilities: Relationships with stakeholders such as team members and Operations Manager The assessment task requires you to communicate with a number of organisational stakeholders. The main roles applicable to the assessment task includes: Role number 1: Operations Manager: The General Manager is the individual who supervises or is in charge of the organisation. They belong of higher rank or status. Their job role and responsibilities are: Assign a team to you to complete the project Assist you in understanding the task requirements Provide you information about job roles and responsibilities Supervise you completing the assessment task and requirements Role number 2: Team members: The team members are student's co-worker or workfellow. They are associates that the candidate works with. Their job role and responsibilities are: Assist you in completing the project on time Help you to research and identifying relevant information Participate in a healthy and open discussion Communicate and collaborate with you for each assessment activity Note:The trainer/assessor will take on the role of Operations Manager. The trainer/assessor will assign the roles of team members for each activity. Each student will be assessed individually for all assessment activities. Timeframe to complete the project: Two weeks (You have two weeks to complete the project) Task requirements You will be assessed on your technical knowledge and skills to complete this project You will be assessed on working in a team environment and meeting your job role and responsibilities You must follow the instructions provided by the Operations Manager. All individuals must complete their role and assigned responsibilities and meet the specified deadlines The task must be completed in the specified timeframeActivity 1: Plan financial management approaches Activity context: The financial plan and budget was implemented for the first quarter. The following were the outcomes of the During the implementation of the financial plan and budget for the first quarter of financial plan, the following issues were identified. Poor sales due to economic downturn. The sales have declined by 20%% for first quarter. Cost of goods sold remained same. The government has changed the minimum wages by 3%. This has led to increase in wage expense. (All the wages after June 2018 are to be calculated 3% extra). Description of the activity: This activity requires you to arrange a meeting with the Operational Manager. Note: The trainer/assessor will take on/play the role of the Operational Manager. The purpose of the meeting is to clarify budget and financial plans and negotiate changes. Before the meeting, you are required to: Access budget and financial plans for work team (As given in the case study) The meeting agenda must be prepared, considering the objectives of the meeting and using the template provided. The meeting agenda must discuss the purpose of the meeting and provide details regarding the place, date and time of the meeting. After preparing the meeting agenda, you are then required to send an e-mail to the meeting participants to invite them to the meeting. Guidelines for writing the e-mail: Ensure the text written in the e-mail is grammatically correct and free of errors. . Use business style writing. The text must provide a summary of the attachment. Attach meeting agenda to the e-mail. After e-mailing the meeting agenda to the participants of the meeting, you are then required to conduct a meeting with them. When conducting the meeting, you must demonstrate effective and communication skills at all times: Use formal communication style, encouraging and respectful tone Ask questions to clarify and confirm understandingListen actively Understand the information needs of others . Adapt communication to suit the audience . Answer questions clearly and concisely . Use non-verbal communication skills that encourage discussion and feedback: nodding, smiling, eye contact During the meeting, you must: . Welcome the participants . Provide an introduction to the meeting's purpose . Consult them regarding your evaluation of the budget and financial plan outcomes and the changes required. . Negotiate any changes required to be made to the budget and financial plans Provide an opportunity for discussion. o Listen and comprehend information from a variety of spoken exchanges with the participants of the meeting Provide an opportunity for the audience to ask questions Respond to questions. o Acknowledge and respond to differences in opinions. During the meeting, the Operational Manager will agree to implement the following negotiations: . Increase advertisement budget by 15% and invest this amount in promoting the company products on social media. They think that this will increase the sales of the company and they will be able to achieve the budgeted targets. The advertisement expense will occur from the second quarter onwards. Reduce repair and maintenance cost by 10%. However, the repair and maintenance cost for the first quarter cannot be changed. Close the meeting: Summarise the agreed outcomes After the meeting, you must provide summary outcomes of the meeting using the meeting minutes template provided. After preparing the meeting minutes, send an e-mail to the attendees of the meeting. Guidelines for writing the e-mail: . Ensure the text written in the e-mail is grammatically correct and free of errors. Use business style writing. . The text must provide a summary of the attachment. Attach meeting minutes to the e-mail.Meeting agenda template: Date/Time: Location: Chairperson: Meeting Attendees: Full names and roles Agenda Item/Topic Discussion/Outcomes Action Officer Due Date Welcome (Agenda item 1) Topic? (Agenda item 2) Topic? (Agenda item 3) Topic?Summary Overall Summary Decision/s Action/s if any Next Meeting Time/date Meeting closed at: Minutes are a true and accurate | Approved/confirmed by whom? record of the meetingMeeting minutes template: Minutes of Meeting Meeting Objective: Attendees: Venue: Date: No. Points Discussed Actions Suggested Target Date Signature of attendee 1: Signature of attendee 2: Signature of attendee 3: Signature of attendee 4