Range of VariablesThe Range of Variables explains the contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment requirements may depend on the work situations available |
Which key personnel might be consulted? | Other family members, partners, providers of finance, managers, staff, clients or suppliers may be consulted. |
Which specialist personnel might need to be consulted? | Accountants, solicitors, tax agents; regulatory bodies and government authorities; and trade, professional or industry associations might need to be consulted. |
What sort of accurate data may be accessed? | Previous business plans, business plan exemplars, equity evaluations, capital return analyses, enterprise gross margins, net present values, internal rates of return, cash flow estimates, profit and loss estimations, sales and product analysis, market information and trends, expense records, previous account records, taxation records, and annual and quarterly returns. |
Where might data be accessed from? | Sources may be internal or external to the enterprise. |
What trends and seasonal variations might need to be considered? | Markets, consumer trends, technological changes affecting production and sales, climatic conditions, weed, pest and disease outbreaks, water supply, resource and input availability, fluctuations in quantity and quality of crops and livestock quality could all be considered. |
Where might relevant strategic goals, targets and directions be sourced from? | May be sourced from existing or complementary strategic plans or related consultations in business/strategic plan development. |
What legal obligations might need to be understood and complied with? | State/Territory and Commonwealth taxation law, company and securities legislation and possibly legislation regarding wills and inheritance in regards to succession planning might need to be considered. |
What might be covered by operational goals and targets? | Goals and targets may be short, medium or long term and may relate to marketing and production targets, resource and asset development and management, acquisitions, capital, property improvements, and operational systems. Operational goals and targets may link directly to the enterprise strategic plan and also to OHS, environment, quality and customer/market satisfaction key result areas. |
What is included within a supply chain? | Supply chains relate to the network of facilities that procure raw materials, transform them into intermediate products (or services) and then finished goods (or services), and delivers them through a distribution system. It covers procurement production and distribution. Supply chains should be viewed as being interlinked as opposed to being discrete units and therefore any analysis should take account of the inter-connectivity within the supply chain. |
What risk management needs might there be? | Compulsory formal insurance (third party, workers compensation, public liability, occupational superannuation), personal accident and sickness insurance, and compulsory superannuation need to be considered. The need for formal insurance cover on assets if loss cannot be reduced to an acceptable level through management practices, needs to be addressed. Assessing whether losses without insurance would be too financially great for enterprise to bear is also a consideration. Other areas of risk that need to be considered are market risk, production risk, resource risk, financial risk, personal risk and management risk. Environmental/climactic and OHS concerns also need to be considered, as do resource peaks and troughs. |
What trial systems might be utilised? | Trial profit and loss statements, trial budgets, trial cash flow projections and reporting and operational systems. |
What indicators of operational performance might there be? | May relate to a range of key result areas both operational and tactical including: OHS, environment, product quality, employee performance and satisfaction levels, customer/market satisfaction levels, market and product expansion, acquisitions and expansion projections, yields and efficiency expectations, cash flow and profit and loss statements, and production and delivery timelines. |
What needs to be considered when introducing fiscal and operational systems? | Systems need to be implemented and phased to take account of enterprise production cycles and financial reporting considerations. |
What resource considerations might need to be considered? | Human, raw and processed materials, water, land, financial, plant and equipment, time and technological resources may be need to be addressed. |
What relevant parties may need to be informed? | Key and specialist personnel. |
How might performance be monitored? | By checking against key performance indicators and measuring inputs, throughputs and outputs using reliable and standardised measures incorporated into the business plan. |
For more information on contexts, environment and variables for training and assessment, refer to the Sector Booklet. |
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