ASSESSMENT TASK - CASE SCENARIO
PURPOSE - This scenario requires you to research and apply the essential knowledge and skills required to assess an opportunity, develop and implement appropriate financial, operational and human resource management strategies, policies and procedures.
Practical application of theory contextualised to natural therapies practice, and a range of relevant situations is designed to demonstrate your ability to identify and effectively manage the tasks and contingencies required for sustainable business growth, legislative and regulatory compliance.
ASSESSMENT TASK - SCENARIO
You have been in business for almost two years, have been enjoying steady growth, have broken even and sales volumes and values continue to increase. Congratulations!
Working families seem to be a growth market, as you've noted a strong and growing demand for consultations, tailored eating plans for busy mums - for themselves and their children. You believe that this market represents significant opportunity, and would like to expand your product offering to include Skype consultations for follow up consultations, and a set of eating plans with healthy, easy recipes.
You recognise that this is going to require significant investment - both time and money; add a lot of operational complexity and risk. To determine whether or not this is a viable business opportunity, and if so, the likely return on investment, the first thing you need to do is review and, where appropriate update your business plan.
The next step is to develop implementation (or action) plans.
Part A - Business and Marketing Strategy
1. Research the family market segment in Australia, and write a revision to the business plan that updates the target market segment market size in terms of people and potential in terms of estimated spend on health and wellness per annum).
Their key features (demographics, lifestyle, values etc.), wants and needs.
How your new product and service offering can meet and/or create wants and needs.
Identify or make assumptions on their social habits and media consumption to identify the most relevant communication channels and methods to reach and engage them.
2. You can achieve your business and marketing objective of growth through any/all through market penetration, market development, product development and diversification. The concept you have in mind covers all of these.
Write three (3) new business goals using the S.M.A.R.T principles that you wish to achieve within the next twelve months.
For each goal, provide two (2) practical examples of how you will monitor your progress and measure the success.
3. Conducting an initial market scan and competitor analysis, you have identified 'Naughty Naturopath Mum' as your primary competitor for essences. Continue your scan and determine who your primary competitor is for meal plans and recipes. After reviewing the competitor's product range, and marketing strengths and weaknesses:
State who they are, and which product/services will compete directly with yours. Include the URL, and any images or marketing executions in the Appendix.
Write a brief vision, product description and positioning statement (150-200 words) that includes how you will price and deliver (e.g. subscription, download) your new range; and what your point of difference or unique selling proposition is.
Draft an action plan for your product launch that includes:
- Marketing campaign and execution budget
- Resources required
- Inventory management
- Time frame
- Roles and responsibilities
Part B - Operations and Human Resources
4. Make a list of business areas or activities that require review or development of policies and procedures to ensure that your new products and services are compliant with the following regulations?
a. Therapeutic Goods Act
b. Consumer Protection Laws
c. Privacy Act and National Privacy Principles
d. Anti-Spam Act and Direct Marketing Code of Practice
e. Child Protection Act
f. Anti-discrimination Act
g. Copyright and Trademark Laws
h. Environmental Protection Act and sustainability principles
i. Public liability and indemnity insurance
5. You recognise that you need support as well as additional funds, and will benefit greatly from professional advice on business expansion. Develop an action plan for identifying and meeting with appropriate organisations and/or individuals. This can be in bullet point form, and must include:
Who you want meet with, how your will initiate contact, and how/where you will meet
The purpose and objectives of the meeting
The agenda or key discussion topics
What resources you will need to prepare
6. You want to be hands on with product management and continue face to face consults, and know that you will only be able to maintain quality (and keep your sanity) if you enlist help. You are happy to hand-over some of the administrative tasks including order packing and dispatch, reception and finances; and are also considering the need for another Naturopath.
Make an assessment considering the scope of work, and available finances of how many people you need for what roles. For each role, briefly (50 - 100 words per answer):
a. List the minimum requirements for education, experience, skills, and attitude.
b. State if you would employ and/or contract them; and/or if a partnership meets your business goals and objectives.
c. List the applicable industrial award/s, salary guides or agreements.
d. Describe how you will promote and manage diversity - both in your recruitment strategies, and day-to-day communications with your team.
e. Describe how you will provide clinic guidelines, policies and procedures; support and develop individuals; monitor and manage performance according to regulatory requirements.
Part C - Financing and Viability
7. Making a realistic assessment of your capabilities, available time, and if it would be better spent else-where, decide which financial management activities that you will undertake, and which you will outsource. Research book keepers and small business accountants in your local area; payroll providers; billing and accounting software systems. Review their services, the expected benefits and decide upon which tasks that you will outsource. For each, estimate the one off or ongoing cost, and factor this into your operating expenses.
8. Prepare a cash flow forecast for the next twelve (12) months using the Business Victoria (2015) template and guidance.
What is the minimum amount of funding you will require for the next 12 months to implement your plan?
What is your preferred method of funding and why?
What is your likely return on investment?
In 100 words or less, state if you should continue to pursue this opportunity and implement your plans in the short-term (3-6 months). Why / why not? How could you minimise the risk?
Attachment:- CASE SCENARIO.rar