BSBINM601 Assessment 1

BSBINM601 Manage knowledge and
information
ASSESSMENT 1
Student Name:
Student ID No:
Group Student Name:

(other member of Group)
Trainer/Assessor Name:
Term and Year:
Course:
BSB60215 Advanced Diploma of Business
Unit Code and Name:
BSBINM601 Manage knowledge and information
Overview of Assessments
Assessm
ent Task
Description
Assess
ment
numbe
r
Obtain
informati
on on
business
issues
Candidates are required to source, gather and review

data and information and utilise formal and informal
networks to identify and analyse business problems
and issues. Candidates prepare a written report for
management supported by a portfolio of researched
information.
Analyse
informati
on and
knowled
ge
Candidates are required to identify patterns or

emerging trends, determine the causes and their
potential effect on the business by using statistical
analysis techniques.
Make
decisions
on
business
issues
Candidates are required to utilise risk management

plans, sensitivity and quantitative analysis techniques
and consultation processes to determine acceptable
courses of action and make a decision. Candidates
will then make a presentation to management
outlining their recommendations.
Assessme
nt
method/s
Project
work
Written
report
Portfolio
Project
work
Written
report
Portfolio
BSBINM601 Manage knowledge and information: Assessment 1

Page 1 of 27
Project
work
Written
report
Portfolio
Presentati
on
V 1.1 updated June 2016
Overview of Assessments
Dissemin
ate
informati
on
Candidates are required to ensure up-to-date,

relevant and accurate information is documented and
disseminated according to organisational needs, a
communication plan and within legislative
requirements. Candidates are required to design, test
and update information systems used to capture,
document or disseminate information for decision
makers.
Project
work
Written
report
Portfolio
In this Unit of Competency, to achieve the overall grade of Competent a candidate must satisfy all assessment items AND must satisfy all
Elements and Performance Criteria. Candidate may be reassessed and given feedback within the time period allocated in case of non
satisfactory performance in any of the tasks.

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Assessment 1: Obtain information on

business issues
Assessment Instructions
Prior to assessment:
Candidate needs to discuss with assessor for any individual needs.
Candidate must attain permission to use their work place document or any other
type of evidence. They also should discuss with trainer and have all work place
documents ready prior to assessment.
Assessment Resource
Access to a computer lab with Microsoft Office.
access to relevant business technology
access to authentic business information and documentation, or simulated
business documentation.
Instructions for Candidate

This task requires the candidate to source, gather and review data and information and
utilise formal and informal networks to identify and analyse business problems and
issues.
The candidate is required to review internal business and external environmental data
and information, identify sources of information that will support decision-making and
test their validity and reliability, and use formal and informal networks to gather
information. They will prepare a written report and answer questions.
Arrange a time with the candidate to discuss the portfolio of work and establish
authenticity.

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Performance objective
You will demonstrate the skills and knowledge required to obtain information to identify
and analyse business issues.

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Assessment description
Using the simulated business information provided in this task, and in response to a
scenario, you will source, gather and review data and information and utilise formal and
informal networks to identify and analyse business problems and issues.

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Assessment Task
1. Read the scenario information provided under CoffeeVille your brief in Appendix
1.
2. Review and familiarise yourself with CoffeeVilles general business information in
Appendix 1.
3. Review and evaluate business performance data and information in Appendix 2.
4. Review and analyse customer and marketing information in Appendix 3.
5. Review and analyse management and staff meeting summaries in Appendix 4.
6. Gather, organise and evaluate the data and information provided in the
appendices to identify and analyse CoffeeVilles potential business problem/s or
issue/s.
7. Test the validity and reliability of data and information you have used to identify
and analyse the potential business problem/s or issue/s in Step 6. Check sources of
information provided and their credibility and reliability. Determine if any are
ambiguous or contradictory.
8. Choose one of the business problem/s or issue/s you discovered in Step 6. Identify
types and sources of information required to determine appropriate courses of
action and support decision makers for your selected issue or problem.
9. Access and review information available through formal and informal networks
relevant to the business problems or issue. Networks could include formal and
informal industry networks, internal business networks, social media or internet
communities of practice.
10. Prepare a short written report for Rufus and Emma. The report should include the
following information.
A brief description of all the business problems or issues you have identified.
An explanation of how you reached this conclusion including a description of how
the data and information supports your conclusion?

A list of the types and sources of data and information required to determine
potential causes of the problem/s or issue/s and to support decision-making for

one of the problems or issues you identified.
Gather information from at least two sources on your list and briefly describe how
they support decision-making. Attach copies of gathered information to your

report.
What processes or techniques were used to test the validity and reliability of
data and information you have gathered?
What data or information was rejected as it was deemed contradictory or
ambiguous?
Describe the formal and informal networks that:

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assisted in identifying and analysing the business problem or issue;

may help establish the causes of the problem;
or can be used to determine and analyse appropriate courses of action.
Copies of data and information you have researched (other than those provided in
the Appendices) that is relevant to your analysis process and identification of the
business problem/s or issue/s should be attached to the report.
11. Submit the written report and any research information (if applicable) to your
assessor as per the specifications below.

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Specifications
You must submit:
a written report containing all information as specified in Step 10 above
any researched information that is relevant to or supports the reports activities.
Your assessor will be looking for demonstration of your ability to:

organise, evaluate and critique ideas and information
build and maintain understanding of a problem of issue
develop and write complex texts using appropriate conventions and writing styles
use numeracy skills to interpret complex statistical and researched information
gather and analyse data and seek feedback to improve organisational plans and
processes
use digital technologies effectively when sourcing, gathering and analysing
information to assist in the management of business operations.

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Appendix 1

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CoffeeVille your brief

Rufus and Emma Belcastran, CoffeeVilles owners, have approached you for assistance.
The business has been profitable and steadily expanding for the last 4 years. However,
recently expenses have started to climb and sales are dropping. In the last 3 months
they have started to address the issue of rising expenses by evaluating and updating
procedures and work practices in an effort to reduce costs. So far, their efforts have not
had a significant impact on expenditure and their sales revenue continues to be below
budget forecasts.
Its January 2016 and all four stores are closed for a summer break. Emma and Rufus
are using the down time to assess their businesss operational and financial status in
preparation for the year ahead.
They have asked you to help them analyse their business and the external environment
to identify potential reasons for their declining sales. Initially, they want you to review
and analyse their business data and information to determine if there is a cause for
their concern what problem/s or issue/s there are and what information is needed to
conduct further analysis to enable decisions to be made.

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CoffeeVille general information

The business
CoffeeVille supplies high quality, fair trade coffee and superior hot and cold gourmet
food and beverages to customers in Melbournes central business district (CBD).
Customers are served by well trained, knowledgeable staff who provide fast and
friendly service. It is owned and managed by partners Emma and Rufus Belcastran.
They opened their first store in 2009 and have since expanded to four coffee shops in
and around the CBD.
Business goals and objectives

Increase revenue through targeted marketing campaigns.
Control direct and indirect operational costs.
Maintain superior product and service standards.
Establish CoffeeVille brand as an ethically and environmentally responsible
company.
Maintain highly trained and motivated staff.

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Expansion timeline
2009
Opened first store in CBD
20092011
Consolidated position and market share, sales and profits

steadily grew as reputation spread.
July 2012
Opened second store two blocks south of original store in

CBD. This is the smallest of the stores located in a busy
retail and professional area of town.
July 2013
Opened third store four blocks east of original store in

CBD. Slightly larger than the original CoffeeVille store, it is
located in the heart of the business and legal district of
the CBD and in the path of foot traffic from Southern
Cross Station.
July 2014
Opened fourth store on the fringes of the CBD. This is

their biggest store with a larger sit-down area than the
other stores.
The CoffeeVille team

Initially, partners Emma and Rufus Belcastran shared responsibilities for the
management of all areas of their business. With the organisation expanding, Rufus has
taken on the role of Operations Manager across all four stores while Emma is
concentrating more on marketing the new and existing stores.
The business now employs:
3 full-time caf managers
4 fully trained baristas
6 full-time and 12 casual food service attendants
2 full-time cooks.
Market analysis
The profile for a CoffeeVille customer consists of the following geographic,
demographic, and behaviour factors:
Overview of the CBD
Large percentage of office workers (80% of daytime trade).

Area population growing at 8% per year.
Geographic
Our immediate geographic target is the area of within 500 metres of the cafe.
The total area population is estimated at 45,000.

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Demographics
Male and female.

Ages 2060; this is the age-group that makes up 83% of the available
daytime market.
Full-time employment.
An income over $50,000.
Behaviour factors
Eat out most times for lunch in a week.

Tend to patronise fast service cafes.
Enjoy a high quality meal.
Value ethical and sustainable practices.

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Appendix 2

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CoffeeVille business information

Business environment
Internal environment
Staff turnover has been relatively low in the last 18 months once the initial staff
training period was completed for the fourth store.

Menus for all stores have been updated in the last 12 months, keeping old
favourites and introducing new dishes from around the world.

Hot dish options in the external catering menu have been modified to reflect these
changes while cold options have remained essentially the same.
External environment
Utility expenses have risen steadily over the last 18 months due to regular price
rises. The business is currently implementing cost saving measures.

Wages have gone up 15% due to the need to pay higher wages for trained,
experienced baristas due to skills shortages.

Rents for each of the properties has rise between 10 to 18% in the last 12 months
and is expected to rise again early in 2016.

Coffee bean prices rose rapidly in early 2014 and stayed high until the end of the
year. Prices eased slightly in early 2015 but are expected to rise again later in the
year due to lower worldwide production and increased demand. The retail price for
all coffee menu items in all stores has been raised twice in the last 12 months.
Recently, red meat prices have started to rise with increases of up to 20% in the
last six months. So far, these price rises have been absorbed but Emma and Rufus
plan to raise menu prices for meat-based hot dishes in the cafe and catering
menus soon.
Business performance
General trends
Sales for first 6 months of 2015 are down across all sales categories and stores.
Overall, food sales are down 10%, beverages 12% and catering 17%. When
combined with rising expenses, profits are down for the first half of the financial
year by 19%
After opening a year ago, the fourth store is slowly building customers but is still
not performing to forecasted levels. Most of the marketing budget and Emmas
efforts have been focused on the fourth store.

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Productivity has increased with staff able to serve more customers per hour, per
employee. This is partly due to barista coffee preparation speeds increasing after
all barista staff completed an advanced barista course in Jan 2015.
Savings made in payroll and cost of goods due to productivity gains have been
offset by rising wages and food prices.
Store 1
Foot traffic is down by 5%.
Sales are generally steady but not growing as planned. Income is hovering just
under budget while profits are 1015% below budget due to increased expenses.
Emma and Rufus are not overly concerned yet as the budget forecast figures were
based on a 5% increase in sales.
Store 2
Foot traffic down by 10%.
Food and beverage sales have been consistently under budget for the July to
December period with budget variances steadily increasing.

External catering sales are down significantly, especially for November (21%) and
December (23%) which are normally the businesss busiest periods. Catering have
now been under budget for the last 18 months at this store with the budget
variance rate steadily increasing.
Store 3
Foot traffic down 15%.
Food and beverage sales have been under budget for the July to December period
with the highest budget variance figures for all stores.

External catering sales have been consistently under budget for the July to
December period with December down 16%. Catering has now been under budget
for the last 12 months at this store with the budget variance rate hovering
between 13% and 16%.
Store 4
Foot traffic up marginally by 0.05%
Food and beverage sales are a consistent 34% under budget.
External catering is down 5% on average with December bucking the trend and
meeting budget.
A new competitor is due to open 100 metres away in February 2016.
Sales have been very flat and not grown as hoped for this store over the last 12
months despite several promotions and advertising campaigns in the local area.

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Assessment 1
BSBINM601 Manage information and knowledge
Financial year July 2014 June 2015

JulyDecember 2014
Sales $
July
Aug
Sept
Oct
Nov
Dec
Food sales
285,668
279,805
273,942
262,580
250,078
199,251
Beverage sales
191,199
190,163
189,126
187,054
182,650
179,523
82,360
83,540
81,980
81,480
77,500
74,370
Total income
559,227
553,508
545,048
531,114
510,228
453,144
Total expenses
482,190
470,934
483,431
451,683
461,746
404,986
Net profit/loss
77,037
82,574
61,617
79,431
48,482
48,158
External catering
JanJuly 2015
Sales $
Jan
Feb
Mar
April
May
June
Year Total
Food sales
203,894
221,209
238,525
245,476
259,742
262,803
2,982,972
Beverage sales
181,220
185,263
187,263
188,263
189,560
191,208
2,242,492
57,284
60,926
67,853
68,853
51,853
49,137
837,136
External catering
Total income
442,398
467,398
493,641
502,592
501,155
503,148
6,062,600
Total expenses
413,064
421,865
442,733
447,512
464,198
478,630
5,422,972
Net profit/loss
29,334
45,533
50,908
55,080
36,957
24,518
639,629

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Assessment 1
Financial year July 2015June 2016

JulyDecember 2015
Sales $
July
Aug
Sept
Oct
Nov
Dec
Food sales
231,391
226,642
231,865
227,105
202,563
154,300
Beverage sales
148,065
147,262
153,192
158,323
135,088
129,705
External catering
60,207
60,358
56,476
55,457
52,111
47,597
Total income
439,663
434,262
441,533
440,885
389,762
331,602
Total expenses
373,713
364,780
366,472
374,752
339,093
288,494
Net profit/loss
65,949
69,482
75,061
66,133
50,669
43,108
Budget variance report All stores

Summary of variance results for comparisons of budget to actual income for the period 20112015
A positive variance indicates the percentage above budget, a negative figures indicates the percentage below budget.
Financial
year
2011-12
Jul-Dec
2011
2012-13
Jan-Jun
2012
Jul-Dec
2012
2013-14
Jan-Jun
2013
Jul-Dec
2013
201516
2014-15
Jan-Jun
2014
Jul-Dec
2014
Jan-Jun
2015
Jul-Dec
2015
Food sales
5%
8%
7%
12%
8%
1%
-3%
-8%
-10%
Beverage
sales
8%
2%
4%
5%
5%
-2%
-4%
-5%
-12%
12%
4%
7%
2%
5%
2%
-8%
-11%
-17%
Total income
8%
5%
6%
6%
6%
1%
-5%
-8%
-12%
Net profit/loss
7%
4%
-1%
6%
6%
-4%
-5%
-11%
-13%
External
catering

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Assessment 1
Appendix 3

Page 19 of 27
Assessment 1
Customer and marketing information

CoffeeVille customer information
Customer spending patterns
Average
spend 2011
Average
spend 2014
Variance
Comments
Coffee
$3.35
$3.85
15%
Food takeaway
$8.65
$9.80
13%
Food sit
down
$9.20
$10.45
14%
Catering
$18.00
$22.00
22%
While average
spend has risen,
Emma and Rufus
feel this is a
result of general
price rises, not
customers
purchasing more
items.
Item
Summary customer feedback forms JanDec 2015

Thanks for your friendly smile every morning. Ill miss that when we move.
Great coffee, great service.
Can you open a store near the new office in Fairfield?
Loved the vegetarian frittata!
Best mocha Ive had in weeks!
Do you deliver to Richmond? Im going to miss your coffee and healthy salads!
Expensive coffee
Service staff always happy to see you
Vote 1 Karlie best barista in town!!
Going to miss you all
Good coffee but expensive compared to Zeldas.
Summary customer comments Facebook JanDec 2015

Lunch time! Best focaccia ever!
Love that you guys do free trade.
Look at the art on this coffee!
Just wanted to say farewell. Thanks for excellent coffee every morning. Ill miss your
smiles. Any caf recommendations in Canterbury?

Lunch with the crew at CoffeeVille. Something for everyone, even our veggie sisters.

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Assessment 1
A big thank you from everyone at Milson Financial. Todays our last day If I get
another job in the city Ill definitely be coming back!

Thanks for my birthday coffee. Was looking forward to it all morning!!
Loyalty Club membership

Membership activity from December 2014 to May 2015.
Member
ship
Memb
ers
2014 *
Active
memb
ers
Inacti
ve^
Cancel
led
Total
memb
ers
2015 #
Store 1
48
43
48
Store 2
28
20
25
Store 3
32
21
27
Store 4
19
15
17
127
99
18
10
117
78%
14%
8%
Total
Analysis: Number of inactive and cancelled member has

increased 15% from previous period.
*Total members as at December 2014
^
Inactive = No account activity for a minimum of 3 months
Total members as at May 2015
Action Marketing survey results December 14, 2014

Action Marketing conducted a survey in the area within the boundaries of the three CBD
stores. A summary of feedback received includes the following.
Customers are buying less food over summer as they are trying to be healthy and
spend less money in the lead up to Christmas.

A number expressed concern about the possibility of losing their jobs due to
ongoing poor financial performance of their employer. Many were trying to save
money in case this occurred.
38% of customers said they had eaten at CoffeeVille but considered it a treat due to
prices.
Coffee was consistently rated as excellent; however, 58% of respondents who
purchased coffee from CoffeeVille said it wasnt their primary source.

Customers who regularly purchased food and/or beverages from CoffeeVille
supported their environmental and socially responsible position.

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Assessment 1
Key survey takeaways

price
general economic concerns
business environment in CBD
healthy lifestyle and eating
(closures)
habits.
Survey results
Question
Responses
Have you ever visited

a CoffeeVille store?
Yes
67%
No
33%
Which store do you

visit? (Can choose
more than one store)
Store 1
49%
Store 3
27%
Store 2
43%
Store 4
12%
How times a month,

on average, do you
visit the coffee shop?
14 times
25%
1015 times
31%
59 times
27%
Most days
17%
What is your purpose

for visiting
CoffeeVille? (Can
choose more than one
store)
For the coffee
69%
To meet others
22%
To relax
15%
How would you rate

the overall
friendliness of the
staff? (with 5 being
the most friendly)
5 = Excellent
53%
2 = Fair
3%
4 = Very good
32%
1 = Poor
0%
3 = Good
12%
0 = Awful
0%
How do you rate the

price of your food
and/or beverages?
(with 5 being an
excellent price)
5 = Excellent
22%
2 = Fair
15%
4 = Very good
28%
1 = Poor
6%
3 = Good
29%
0 = Awful
0%
How do you rate the

variety of products?
(with 5 being the best
variety)
5 = Excellent
33%
2 = Fair
2%
4 = Very good
32%
1 = Poor
0%
3 = Good
33%
0 = Awful
0%
How do you rate the

product quality? (with
5 being excellent
quality)
5 = Excellent
50%
2 = Fair
4%
4 = Very good
28%
1 = Poor
0%
3 = Good
18%
0 = Awful
0%
Have you found your
No, very fast
48%
Waited ages
2%
Get something to eat

46%
To read the papers
18%

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Assessment 1
wait in line to be too

long for your
satisfaction?
No, pretty quick 32%

A bit slow

Page 23 of 27
18%
Very slow
0%
Assessment 1
Appendix 4

Page 24 of 27
Assessment 1
Management and team meeting summaries

Meeting summaries
Management team meeting
October 31st, 2015
Topic: External catering Christmas bookings

Rufus Owner/Operations Manager
Catering bookings for corporate Christmas parties down across all
stores for Nov and Dec.

Stores 2 and 3 under sales budget forecasts by 2030%.
Emma Owner/Marketing
Made phone calls and personal visits to all previous clients who
have not rebooked this year.

Budget constraints common reason for not booking.
Some using another, cheaper caterer, some are not having a
catered Christmas event.
Sarah Manager, Store 1

Staff from two businesses CoffeeVille catered for last year have
mentioned management are only holding self-catered

morning/afternoon tea for staff, no formal Christmas party. Both
businesses employ 2030 employees.
Topic: 2016 budgets

All budgets for 2016 have been adjusted to reflect sales and
expenses trends.
Team meeting Store 3
November 4th , 2015
Topic: Sales trends, customer feedback

Sales down across all revenue streams.
Need a sales push to capture foot traffic in city for Christmas
shopping.

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Assessment 1
Leunie Manager, Store 3

Early morning period slower, less coffee and breakfast sales from
train station traffic.

Lunch time food trade from office staff down. Starting Christmas
shopping during lunch period?
Staff comments
Not as many groups dining in store at lunch time, more singles.
Customers choosing cheaper items, chatter about money being
tight.
Trying to push coffee/cake and meal/water deals but uptake low.
Several regulars from McKinnons say staff Christmas gathering
being held off-site this year, no external catering booked we

catered for them last year.
Hot food sales down, higher wastage. Preference for salads and
sandwich bar.
Received queries about getting Paleo options added to the menu.
Sales manager at XX department store said retail sales are sluggish
compared to this time last year. Lots of looking but not buying.
Hoping it will pick up soon.
Lots of general chatter about economic concerns, terrorism, home
interest loan rates possibly going up after Christmas. General feel

of customers is negative.
Staff expressed concern about job security due to lower revenue
figures.
Management team meeting
December 3rd, 2015
Topic: Revenue concerns

Revenue across all stores under budget.
Store 2 food and catering of real concern.
Store 3 food, beverages and catering all significantly under budget.
Emma Owner/Marketing
Shifting marketing focus from Store 4 back to CBD stores, focus on
Stores 2 and 3.
New campaigns to start when offices reopen in Jan 2016.

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Assessment 1
Sarah Manager, Store 1

Customers not spending as much, average daily spend per
customer down compared to previous years.
Christos Manager, Store 2

Two businesses within their building to close permanently at
Christmas.
Missing a number of regular customers at the register.
Leunie Manager, Store 3

One 50+ employee business in building next door moving to new
offices out of CBD.

One 20+ employee financial advisor have moved to new office in
suburbs as rent is cheaper.

Two For Lease signs for offices in buildings in same block as cafe.
Lots of chatter from clients working for professional services
companies about business retraction, possible redundancies.
Jordie Manager, Store 4

Nearby residential towers nearly completed construction, due to
open in February, potential to grow morning traffic.

Due to higher residential occupancy near store, raised potential for
take away dinner trade. Fresh cooked and packed for customers to
purchase on way home from work. Other alternative is a delivery
service within a specific radius. Might also work for Store 3 due to
proximity to train station and Docklands residential complexes.
Would mean longer opening hours to catch after-work commuters
and residents.

Page 27 of 27

BSBINM601 Assessment 1

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BSBINM601 Manage knowledge and

Group Student Name:

Term and Year:

BSB60215 Advanced Diploma of Business

Unit Code and Name:

BSBINM601 Manage knowledge and information

Candidates are required to source, gather and review

Candidates are required to identify patterns or

Candidates are required to utilise risk management

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

Candidates are required to ensure up-to-date,

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

Assessment 1: Obtain information on

Instructions for Candidate

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

the data and information supports your conclusion?

potential causes of the problem/s or issue/s and to support decision-making for

they support decision-making. Attach copies of gathered information to your

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

assisted in identifying and analysing the business problem or issue;

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

Your assessor will be looking for demonstration of your ability to:

information to assist in the management of business operations.

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

CoffeeVille your brief

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

CoffeeVille general information

Business goals and objectives

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

Opened first store in CBD

Consolidated position and market share, sales and profits

Opened second store two blocks south of original store in

Opened third store four blocks east of original store in

Opened fourth store on the fringes of the CBD. This is

The CoffeeVille team

Large percentage of office workers (80% of daytime trade).

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

Male and female.

Eat out most times for lunch in a week.

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

BSBINM601 Manage knowledge and information: Assessment 1

V 1.1 updated June 2016

CoffeeVille business information

training period was completed for the fourth store.

favourites and introducing new dishes from around the world.

changes while cold options have remained essentially the same.

rises. The business is currently implementing cost saving measures.