King Edward VII College has been operating since 2015. The College is based in Melbourne CBD and has...

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King Edward VII College has been operating since 2015. The College is based in Melbourne CBD and has an additional campus in Sydney. The College offers a range of courses in management, marketing, human resources and international business. It cu
ently has 195 students enrolled across all of its courses and both campuses. Courses are offered at all levels, from Certificate II to Graduate Diploma.
King Edward VII College is very popular due to its competitive pricing structure, innovative teaching methods and state of the art facilities.
The College cu
ently employs 24 staff members that include the CEO, a Sales and Marketing Manager and Sales and Marketing Assistant, Promotions Officer, Human Resources Manager, Operations Manager, Administration Manager, Office Assistant, Receptionist, Academic Manager, Student Services Officer and approximately 14 trainers and assessors.
Cu
ently the company is preparing the financial forecasts and projections for the year ahead.
The College is planning to open two new campuses, one in Brisbane and one in Adelaide in the next year, and that will have to be factored into the forecasts.
As the Operations Manager for King Edward VII College, you have been tasked to prepare the financial forecasts and projections for the upcoming year. This will be used to inform the preparation of budgets and to develop a deeper understanding of the business’s potential.
You will also be required to look at various data storage and access systems that could be adopted, and that have the potential to grow with the business.
Complete the following activities:
BSBINM601 Manage knowledge and information Student Assessment Tasks
Vocational Training Institute RTO 41111 CRICOS 03487C Version: October 2019 v1.0
© J&S Learningwork 2018
Page 10 of 17
1. Write a business expansion Briefing Report.
You are required to write a report to inform a staff meeting on the proposed company expansion.
To do this you will need to review the company’s:
· Business Plan
· Financial Policy and Procedures
· Financial Data
· Profits and Loss Statements for the previous three years.
· Staff Survey Results
· Student Feedback
Your report is to include the following:
· A review of business performance data
· Financial forecast. Use the Forecasts Spreadsheet Template to record your figures.
· A review of staff survey results
· A review of student feedback
· Identify, define and analyse business problems and issues
· Identify further sources of information on VET
· Analysis of trends
· A sensitivity analysis on any proposed options
· Data storage and access options
· A risk management plan
Use the Briefing Report Template to guide your work.

This document is Briefing Report Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBINM601.
King Edward VII College
Business expansion
iefing report
Introduction
Give the objectives of the report.
Business performance
Provide an analysis of the Profit and Loss Statements and Exception report for the 2015/16, 2016/17 and the 2017/8 financial years. This should include a review of the exception reports and whether they conflict with the information and assumptions in the business plan and if so any actions that need to be taken.
Financial forecast
Provide an overview of the forecasting process, key assumptions and parameters and relationship to business plan and external trends.
Forecast for 2019
Using trend analysis based on previous profit and loss amounts, data provided by Administration and Marketing, the forecasted sales and expenses and profit or loss for the upcoming two years are as follows.
Net sales
Total expenses
Profit or loss
Forecast for 2020
Net sales
Total expenses
Profit or loss
Staff feedback
Review the Staff Survey Results and identify any staffing issues which may impact the future growth.
Customer Feedback
Review the student feedback and identify any staffing issues which may impact the future growth.
Business problems and issues
Describe the main issues or potential problems that could challenge the success of the proposed business expansion.
VET Information
Identify at least two formal and two informal networks that can provide information.
These should include specialists and other relevant groups and individuals.
You should use information that you find at these sources to contribute to this document.
Trends analysis
Identify patterns and emerging trends and interpret causes and effects
Decision process
Describe the process that must be taken before a major investment is undertaken by the company.
Compliance
Describe the company’s organisational objectives and values that must be complied with.
Data storage and access options
Describe at least two options that would allow the College to store and access across all campuses.
Sensitivity analysis
Apply what if scenarios to available data storage and access options
Validity and reliability of source data
Describe how the data that you have used to a
ive at the business options is both valid and reliable.
Risk Management
Identify at least five risks for the planned expansion and give at least three mitigating activities that could be undertaken.
BSBINM601 Manage knowledge and information
Vocational Training Institute RTO 41111 CRICOS 03487C      Page 1 of 2
Version: October 2019 v1.0
© J&S Learningwork 2018

task-2-ins-qbuyidau.docx briefing-report-template-nxpc5gna.docx forecasts-spreadsheet-template-t4wvffto.xlsx

Tanmoy · Accepted Answer

King Edward VII College – Business Expansion Briefing Report
Introduction
King Edwards VII commenced its operation in the year 2015 as a RTO – registration and trading organization imparting training and development skills to the students in the business management segment. It has performed quite well since its operation as per the information received from the students and the staffs. The college now wants to expand its operation by increasing the course fees, admitting more students and hiring new staffs. Based on the 2016, 2017 and 2018 actual financial records we will prepare a forecasted financial record of 2019 and 2020 to roughly estimate the potential future growth opportunities of the college.    
Business Performance
	Income:
	2016
	2017
	2018
	Sales
	8,00,000
	12,70,000
	18,60,000
	Expenses:
	 
	59%
	46%
	Electricity and gas
	6,000
	6,000
	6,600
	Internet
	2,200
	2,200
	2,420
	Office supplies 
	2,400
	2,400
	2,900
	Rent 
	4,40,000
	4,40,000
	4,40,000
	Stationary
	2,600
	2,600
	2,600
	Wages and salaries
	2,50,000
	3,50,000
	8,00,000
	Superannuation
	23,750
	33,250
	76000
	Travel and accommodation
	5,600
	5,600
	6,150
	Water 
	5,300
	5,300
	5,830
	Work cover insurance 
	4,000
	4,000
	4,400
	Total cost of sales:
	7,41,850
	8,51,350
	13,46,900
	Gross Profit before tax
	57,550
	4,18,650
	5,13,100
As per the above financial records, the growth in sales in 2017 and 2018 were 59% and 46% respectively. As per the exception report it was 58% increase in 2017. But the actual record shows a 1% more increase than the previous year. All the sales figure were based on the number of students admitted in the year multiplied by the fees per student which is $10000 till 2018. With the increase in sales there was also increase in total cost of sales from 2016 till 2018. The gross profit after tax has increased formidably in 2017 to a mammoth 627% compared to 2016 but declined slightly due to rise in cost to 23% in 2018. The exception report of 2018 states 10% increase in all the cost expect for rent and wages. But, since wages is a part of salaries it has been distributed on a pro-rata basis. 
Financial Forecast
The financial overview of the various forecasting process, key assumptions, parameters, relationships to business plans and external trends are in accordance with the information provided by the marketing and sales department and are as follows:
1. For financial forecasting of sales of 2018-19 we have considered the Sydney and Melbourne expected students (100+120) and calculated it based on the increased fees of $12000 per student. Similarly, for 2019-20 we have considered the expected student figures of Sydney, Melbourne, Adelaide and Brisbane (150+180+44+50) and multiplied it with $12000 to derive the expected sales figures.
2. The cost figures in 2018-19 were considered for Sydney and Melbourne as $685575 and $795575 respectively whereas for 2019-20 it was Sydney, Melbourne, Adelaide and Brisbane figures of $754132, $875132, $330000 and $330000 respectively.
3. The key assumptions taken in order to adjust the cost figures for 2018-19 with the individual expenses, there was an increase of 14.5% increase for each items except for Rent as it is same for all the years. Similarly, for 2019-20, we have considered all the individual items to increase at $15000 in order to match with the expected cost barring Electricity charges, superannuation, wages and salaries and work cover insurance.
4. The parameter considered were the growth in student admission, rise in college fees and increase in staff hiring over the forecasted years due to which the projected sales and cost of the college have increased in 2018-19 and 2019-20.
5. The estimated financial statement has been commensurate with the expected growth of the college and is in accordance with the external factors like high demand for education and skill developmental program and quality of the education.     
Forecast for 2019
	Forecasted Profit & Loss FY2019
	 
	 
	Sales
	 
	Income from courses
	$26,40,000
	Net Sales
	 
	 
	 
	EXPENSES
	 
	Electricity and gas
	$7,557
	Internet
	$3,000
	Office supplies 
	$3,321
	Rent 
	$4,40,000 
	Stationary
	$3,000
	Wages and salaries
	$9,16,000
	Superannuation
	$87,020
	Travel and accommodation
	$7,042
	Water 
	$7,000
	Work cover insurance 
	$7,211
	 
	 
	TOTAL EXPENSES
	$14,81,150
	 
	 
	Profit or Loss before Tax
	$11,58,850
The forecast of 2019 states that there is an increase in sales by 42%, 10% increase in the cost and 126% increase in profits over the previous year. This is basically due to increase in the sales due to rise in expected students’ admission and the fees of the college from $10000 to $12000.

King Edward VII College has been operating since 2015. The College is based in Melbourne CBD and has an additional campus in Sydney. The College offers a range of courses in management, marketing,...

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