• You are responsible for the Belconnen Sales Branch which includes a team of four sales staff who sell new cars for Kia
• You report to the General manager of the Belconnen car dealership
• There are two other Kia dealerships in Canberra, one in Phillip and one in Fyshwick
• You are paid a retainer and a performance bonus based on the number of cars you sell and the profit made over a twelve month period
• Kia currently has five models available for sale at their Belconnen dealership, the Rio (a small sedan), the Cerato ( mid range sedan), the Sportage (a midsize SUV) and the Sorrento (a full size SUV) and the Stinger (a high-performance sports sedan)
• Staff are paid the retainer component of their pay on a fortnightly basis
• The performance bonus is paid quarterly
• Staff get an automatic 5% pay rise for every twelve months they have served for the first five years of their service
• The sales target is 25 vehicles per month or 75 per quarter
• One quarter of these vehicles are sold to businesses who usually make payment on a 30 day account. Individuals have to pay the full amount up front.
• Peak sales months are January, February and June with sale numbers 20% above the monthly figure based on the annual average. Conversely low sales months are the months of August and September where sales are 25% below the monthly figure based on the annual average
• Deliveries of new vehicles are once a week from Sydney with 5 to 10 new vehicles per delivery. Deliveries to the two other Kia dealerships in Canberra are at the same time.
• The car yard is leased from Stavros and is on a three year fixed rate lease at $12,000 per month with the lease expiring on 31 December 2022.
• The dealership also offers a spare parts branch, vehicle servicing workshop and corporate leasing branch all of whom report to the General Manager like yourself

Sale price ranges (including GST) are:

Rio - $15,000 to 22,000

Cerato - $21,000 to 30,000

Sportago - $29,000 to $45,000

Sorrento - $ 34,000 to $51,000

Stinger - $48,000 to 60,000

New models come out in July 2022 and prices are expected to be similar to current prices. Older models will need to be sold off in May and June, typically at a 10% discount.

Sales staff retainers are $5000 per month plus superannuation and performance bonuses are $500 per vehicle for the Rio and Cerato, $750 for the Sportage and Sorrento and $1000 for the Stinger.

The sales manager is paid $7500 per month plus performance bonuses as above. It is expected that the sales manager will only sell half the number of cars as other sales staff.

Tasks

This assessment has two stages. You will be informed of the second stage once you have completed the first stage.

Stage 1: In groups of two or three people:

1. Develop a quarterly and annual budget of income and expenditure for 2021/22 financial year showing an annualized profit of 10% of turnover. Gross income is an average of $750,000 per month. You need to consider areas such as GST and other taxes and all major individual expense areas. In addition you should develop a cash management budget for 2021 on a monthly basis.

2. Develop information and a strategy to disseminate relevant budget information to your sales team. The information should include relevant KPIs.
   In addition discuss and develop a strategy to ensure that you consult with your sales team about the budget and that the sales team have a clear understanding of the budget.
   Furthermore discuss the need to consult with your General Manager and the managers of the other Branches before the budget is finalised.

3. Document what information you will need to obtain to prepare ongoing budgets and financial reports.

The budget will need to be sent to me during next week (date to be advised)
The presentations of this set of tasks will be done next week.
A second stage of this activity will be provided to you on Monday the 14^th December for completion

Final presentations will be done on the afternoon of Wednesday 17 November

The information will need to be presented in a professional manner as if you were making a presentation to the General Manager. Each person in the team will need to contribute to the presentation. The presentation will need to be 20 to 30 minutes in length for the group. Shorter presentations show lack of preparation and thought about the assignment and will need to be redone.

Each student is be required to upload a personal written report of this group activity covering Tasks 1 to 3 above into Performance Task 2 for this unit in Catapult. The report will need to include the budget and at least two typed pages of explanation.