FNS50315 National Finance Institute

FNS50315 National Finance Institute | Contract Operators Fill Shortfall

FNS50315 National Finance Institute | Contract Operators Fill ShortfallAssignment 1 – FNS50315 National Finance Institute- You are required to complete 1 submission to a lender on behalf of these clients

  1. Assignment 2 – CASE STUDY 2 –You are required to complete 2 submissions for these equipment finance clients
  2. Assignment 3 – THEORY ASSIGNMENT –This is an open book assignment on the units studied within this course
  3. Assignment 4 – SERVICING AND RESEARCH ASSIGNMENT –You are required to use what you have learned and your research skills to obtain information necessary to understand the complex legal requirements and risks when providing broking services to clients with complex loan needs
  4. Assignment 5 – SUSTAINABILITY PLANNING Business Plan –You are required to use the information provided in Unit 1 along with research on the internet to prepare a Sustainability Business Plan
  5. Compulsory Education Department Feedback form

Instructions?Instructions help you understand the questions and complete the assignment

Questions/Scenario ?There may be one or more questions relating to the competencies you are required to demonstrate.
Trainees must ensure that the Cover Sheet provided is included with the full completed 5 Assignment submission (ie. use the provided cover sheet as the front page to your 5 assignments and submit together).

The Assessment is comprised of online questions + 5 assignments that as a whole make up the complete Assessment. You are required to complete the online questions then submit the remaining 5 assignments together.

Please note, extensive answers are not always required. Brief answers may be appropriate for some questions as long as you ensure your response adequately addresses the question.

Important: Presenting your Assessment submission in a format that is clear and appropriately structured forms part of your assessment and also demonstrates your ability to communicate ideas and concepts and use technology.
After NFI has reviewed your Learning Activity question answers and your 5 Assignments have been marked, your marks will be advised put into the online platform.

All Assessments tasks should be submitted together ie. at the same time, either by mail or email or by uploading into the online platform.

Your completed assessments will NOT be returned to you as they are retained for audit purposes as required.
The assessment tasks will also be used to assess your language and literacy skills. The assessor will check your assignments to ensurethat they are accurate with correct grammar and punctuation

  • that they are appropriate to the target audience
  • that they show planning and organisational skill
  • that they demonstrate your ability to search for products and service information and use problem solving approaches to identify customer needs and expectations.

Time limits? You have six (6) months in which to complete all of your course assessments. You may submit your assessments at any time within this six month period. Extensions are only available after this time for an additional fee. If your six months expires you will no longer have online access available.

Pass mark? The assessments above together form the full assessment content of this Diploma course and you are required to achieve 80% on each assessment task in order to pass the course.

Keep a copy? With all assessments submitted you should ensure you retain an electronic or scanned or photocopied record of your submissions for your own files and in case of possible loss in transit.

Assignment 1

Overview: The purpose of this task is to allow you to demonstrate that you can complete the major steps required in broking or writing a moderately complex loan for a customer – through identification, development and implementation of loan options while assessing and managing risks. The samples in Appendix A may prove helpful. Remember that what you prepare will need to be presented to the client orally and thus must be understood by them.

FNS50315 National Finance Institute | Contract Operators Fill Shortfall

Instructions: Read the scenario provided and using the information and data supplied, prepare a formal loan submission for a lender using the following headings. Use subheadings where appropriate to ensure your submission will be easily read and understood by the lender.The client file should contain the standard client information and data that would be included in a typical submission for a loan of this complexity. Your lender submission should include as a minimum the following headings:

  • Borrower’s Details
  • Background
  • Loan Purpose
  • Facility Details
  • Funds Position
  • Servicing Capacity
  • Security
  • Risk Assessment and Management (according to lender policy, guidelines and relevant legislation). Consideration must be given to any environmental, heritage or native title implications
  • Recommendations
  • Attachments


Andrew Bisset has been a real estate agent for over 20 years and jointly with his wife Jane own 6 shops at 55 Park Road, Belmont. Mr and Mrs Bisset own the shopping centre under the Bisset Family Trust. The property was valued 2 years ago at $1,450,000 and has a current ABZ Bank Mortgage of $625,000.

Five of the shops are rented out for $96,000. The sixth shop is occupied by Mr Bisset’s real estate business, Bisset’s Real Estate Pty Ltd, which pays annual rental of $42,000 to the family trust. For tax purposes Bisset’s Real Estate pays rent which is $20,000 in excess of the fair market rental value of the shop it occupies.

Bisset’s Real Estate Pty Ltd was formed at the beginning of the last financial year to take over the real estate agency business, which was previously conducted by a partnership between Mr Bisset and Joseph Hooper. Bisset’s Real Estate Pty Ltd took over the business when Mr Hooper retired.

Mr and Mrs Bisset now wish to acquire 3,000m2 of land near their existing shopping centre and hold it for 1 – 2 years pending rezoning.. The purchase price is $600,000. The land was previously used as a State Government Health and Dental Centre, but the building was demolished when it became obsolete. The land is currently zoned ‘Special Purpose’, but the local council earmarked the land for future ‘Commercial’ use in it recently released Town Planning Scheme. The land is located at 423 Belmont Road, Belmont and has a two street frontage with considerable passing traffic.

The Bissets have contracted to purchase the property in their capacity as trustees of their family trust and settlement is due with 60 days. They wish to raise 100% of the purchase price plus $25,000 for stamp duty, financing and conveyancing costs. They are willing to offer both the land and their existing shopping centre as security for the proposed loan. They will contribute a further $20,000 over the next 1?2 years to cover the costs associated with re?zoning of the property and obtaining approval to develop another shopping centre.

Unfortunately, ABZ Bank policy does not allow them to lend against land zoned ‘Special Purpose’ and cannot assist with the purchase. The Bissets have appointed you to approach an alternative lender to refinance their ABZ Bank Loan and obtain the additional funds required.Assume an interest rate of 7% for a commercial loan, 9% for an overdraft.

Work History

Andrew has been a real estate agent for 22 years in the Brisbane South East area, he specialises in commercial and industrial property (rent roll comprises 75% commercial and industrial properties). His gross salary last financial year was $78,000. In the previous financial year he drew $55,000 from the partnership with Joseph Hooper.
Jane has worked as the property manager since Bisset’s Real Estate Pty Ltd took over the agency after the partnership. Her salary last financial year was $43,000. She did not work in the previous financial year.


Last Financial year Bisset’s Real Estate Pty Ltd recorded the following financial results:

Gross Revenue$346,000
Net Profit$72,000
Directors Superannuation$11,000

In the previous financial year the partnership of Andrew Bisset and Joseph Hooper trading as Bisset’s Real Estate recorded the following financial results:

Gross Revenue$422,000
Net Profit$ 84,000
Depreciation$ 16,000
Directors Superannuation$ 11,000

The Bisset Family Trust purchased the shopping centre at Park Road Belmont 18 months ago and its financial statements for the past financial year are as follows:

Gross Rental Income$138,000
Loan Interest$ 52,000
Management Fees$ 11,000 (paid to Bisset’s RE Pty Ltd)
Net Profit$ 50,000
Depreciation$ 25,000


Financial Position – Andrew and Jane Bisset

House at 12 Currumbin Close Carindale QLD



Share Portfolio (Blues Chip Listed Shares)$345,000
Motor Vehicles$ 60,000
Furniture$ 85,000
Cash at Bank$ 45,000

Home Loan with ABZ Bank



ABZ Bank Credit Card (Limit $20,000)$ 10,000

Financial Position of Bisset’s Real Estate Pty Ltd Assets

Business Goodwill$250,000
Plant & Equipment$35,000
ABZ Bank Overdraft (limit $40,000 secured by residence)$25,000

(Keep in mind that, in the absence of actual tax returns which would confirm the income distribution of the trust, any profit would be distributed and taxed in the hands of the beneficiaries. For the purposes of this assignment, assume company tax of 30%, even though in “real life” of course you cannot assume and the distributions would be clear in “real life” financials.)

Property being purchased

Vacant Land

423 Belmont Road, Belmont QLD 4171

Lot 84 on RP 9564 Zoning “Special Purpose” Area 3000m2

Existing Property

Shopping Centre

55 Park Road, Belmont QLD 4171

Lot 43 on RP 9542 Zoning “Commercial” Area 1850m2


TenantRentTermRent Review
J & R Blend

T/A Blend News

$22,000 pa net3 + 3 yearsAnnually by CPI
Copelin Accounting Pty Ltd$18,000 pa net1+ 1 +1 yearsAnnually by CPI
R Spragos

T/A Roger’s Deli

$28,000 pa net5 + 5 yearsAnnually by CPI
Vu Nguyen

T/A Care Pharmacy

$20,000 pa net3 + 3 yearsAnnually by CPI
M Goodson

T/A Good Alterations

$8,000 pa net3 + 3 yearsAnnually by CPI
Bisset’s Real Estate Pty Ltd$42,000 pa net3 + 3 yearsAnnually by CPI

Assignment 2


The assessment for this module is to prepare TWO    submissions (see A and B below):

Part A: This is for the client so that they have the facts on all their obligations and fees and the structure of the loan. Remember that what you prepare will need to be presented to the client orally and thus must be understood by them.

Part B: This is for the lender ? a loan application to the lender in order to gain pre? approval.

Part A – The Client

  1. Prepare a list of questions that you would need to ask your clients about the proposed transaction, that is, prepare your needs analysis (ie. Fact Find).
  2. In a suitable format, prepare a submission for the clients, a Proposal Document.

What your report should include:

  1. The parties to the loan
  2. The security
  3. The facility details
  4. Lender details (options, recommendations) that are able to lend
  5. Confirmation of the client’s complex requirements
  6. The personnel that maybe involved: eg. the client’s solicitor, accountant, financial advisor
  7. The client’s responsibilities, so the client fully understands the loan
  8. An outline as to the process timing and what the client needs to arrange
  9. The documentation needed to commence the borrowing
  10. The name in which the client will sign the contract to purchase
  11. A summary of all fees and charges
  12. Your notes detailing how you have provided appropriate contact with the client throughout the complex broking process

The samples in Appendix A may prove helpful.

Part B– The Lender

Prepare a loan submission to the lender for pre?approval.
Your submission should include as a minimum the following headings:

  1. Borrower’s Details
  2. Background
  3. Loan Purpose
  4. Facility Details
  5. Funds Position
  6. Servicing Capacity
  7. Security
  8. Risk Assessment and Management (according to lender policy, guidelines and relevant legislation). Consideration must be given to any environmental, heritage or native title implications
  9. Recommendations
  10. Attachments

Evidence Requirements
In order to be deemed competent, you will need to evidence the ability to:

  • Develop detailed broking options designed to maximise the client’s outcomes and reach client objectives which incorporate elements from research and which address complex needs and issues
  • Identify and describe key assumptions upon which the plan is based
  • Provide a detailed analysis of research strategies and findings
  • Test and make appropriate checks on a proposed plan for its integrity and compliance
  • Assess the impacts of taxation, social security, economic and other government policies on client investment and financial requirements
  • Interpret and comply with industry regulations and codes of practice
  • Identify the roles of associated financial advisers and work effectively with them
  • Assess broking options, financial markets and investment characteristics
  • Use appropriate sales and marketing methodologies and provide justification and research evidence
  • Gain client feedback on and/or agreement to the plan
  • Prepare materials and personnel to effectively implement complex loan structures
  • Establish appropriate audit trails and effectively document records and data.


Commercial Equipment Finance for Ray Henley and Steve Manning
The clients you met with this morning have been referred to you by another commercial client.

They are joint company owners Ray Henley and Steve Manning and they run a successful and growing transport company. They have a diverse client base spread over many industry sectors which is a conscious management strategy to ensure that they do not have significant business risk to a specific market segment or client. All contracts are written with 30 day payment terms. Background industry checks as well as credit history checks are completed on all new business prospects to ensure that there are no adverse issues that may impact on future trading arrangements.

Whilst they have only been trading for 34 months they have a solidbusiness plan with actual results to date exceeding projected sales and profit estimates included in their plan.

The business was established with unsecured (apart from Personal Guarantees) Seed Capital of $500k from a private investor based on a guaranteed return of $45k pa, and an overall term of 5 years which also requires a principal reduction of $100k pa. The loan can be repaid at any time without penalty.

Ray and Steve’s Requirements
To accommodate new contracts in hand and planned future expansion, the applicants require establishment of an Equipment Finance Limit of $500k to purchase Trucks and Dog Trailers in the next 12 months. On the advice of their accountant, a new entity, Henman Holdings Pty Ltd ATF The Henman Discretionary Trust, has been established to purchase equipment which will be internally hired to Henman Transport Pty Ltd (the trading entity). Hire charges will equate to finance payments. Ray and Steve are directors of both companies. The longer term intention is for the Trust to acquire premises to be occupied by Henman Transport Pty Ltd.

As part of this expansion the company has leased a second depot at a cost of $6,000pm and will also retain the existing depot.

They currently have 5 employees and where needed are using sub?contract operators to fill shortfall in their delivery capacity. Purchase of new additional trucks and trailers will provide additional capacity and flexibility and reduce reliance on sub?contractors who can be unreliable.

Whilst a limit is being sought, purchases will only proceed where additional work has been contracted or older equipment is being replaced. Applicants are happy to provide half yearly management accounts as an approval covenant to give a lender comfort that projected sales and profits are in line with budgets.

Applicants are keen to reduce debt as quickly as possible and have therefore decided to finance all new equipment over a 48 month term, without a balloon/residual and will commit a refund of GST Input Credits as additional repayments built into the contracted loan structure.

Initial Fact Find
Ray and Steve have both been in the transport industry for many years each being Financial controllers for major transport companies. Ray has an MBA and Steve a marketing degree. These combined skills complement each other and assist in the effective management of the business. Ray is married and has no dependants. His wife is a school teacher and she will be retiring at the end of the year.

Steve is single and is presently completing a HR degree as they feel that as the business grows these skills will be required.
Steve and Ray have provided the last two year’s financial accounts for the trading business, as well as interim accounts for the current financial year.

(Note: You need to calculate the required servicing for the new debt and surplus required for lender comfort. Assume an interest rate of 10% for the proposed debt)

Financial accounts

  • Year 1? Sales $700k Net Profit $240,000
  • Year 2? Sales $812k Net Profit $358,000
  • Current year interim indication? Sales 1.125m Net Profit $506,000 (10 months) Operating Costs include – Depreciation $86,000, Interest $52,000, Sub?contractors $71,000, Directors’ Superannuation $60,000
  • Wages to partner one $100,000 (paid as Fully Franked Dividend)
  • Wages to partner two $100,000 (paid as Fully Franked Dividend)
  • Payment to private investor (flat fee) $45,000? Expensed in P&L as Finance Cost
  • Existing Equipment Finance (Chattel Mortgages) repayments of $5,000pm

Key Balance Sheet Items



They currently meet all creditor payments at 30?day terms.

Debtor collection has been solid with active management of debtors and pre?contract investigation of new clients.

They have just signed a delivery contract with Organic Flower Growers who supply to Coles Supermarkets state?wide. To accommodate this work their initial purchase will be a refrigerated Pantec truck at a cost of $145000. Projected net profit from this contract is $60k pa

Assignment 3

  1. Describe how you gather the information required when establishing the client’s complex lending requirements?

In answering this question you should refer to:

  • Explanation of the services provided to the client
  • Listening and questioning techniques you employ
  • Your use of language appropriate to any cultural differences
  • Your interpersonal skills and how you would deal with any emotive issues sensitively
  • Your ability to build/establish rapport
  • Your professionalism
  • Your communication skills

Your provision of appropriate contact with client throughout the complex broking process

  1. Describe how you record and document your interaction with clients?

In answering this question you must refer to:

  • Templates used to gather information in initial interview
  • Diarising or recording telephone conversations
  • Procedures that are established for critical implementation, timing and priorities
  • The  documentation gathered
  • Any technology used to record or gather information.
  • How you access and use appropriate specialist software, organisational templates, spreadsheets and databases

How your recommendations and loan structures, as presented to clients, are documented according to organisation guidelines and procedures

  1. Describe how you research and consider complex broking solutions based on the clients’ needs?
    In answering this question you must refer to:
  • How special or complex features of a client’s situation and objectives are discussed, reviewed and clarified
  • The analysis of the client situation to determine opportunities and constraints
  • Research into loan structures or options including those which are new or non standard
  • Consideration of financial issues in terms of economic, legislation, taxation, legal, insurance
  • In what conditions would the broker need to refer clients to a Tier One advisor (eg. financial advisor or accountant)
  • How possible loan structure or options are analysed, modeled, prioritised, and measured
  • The process used to reject inappropriate options including checks to ensure compliance with relevant acts
  • Assessment of options to successfully achieve the client’s objectives

How you liaise with others, share information, listen and understand

  1. Describe and/or provide evidence of how you identify and manage risk when dealing with clients with complex loan requirements?

In answering this question you must consider:

  • Risk evaluation criteria eg undertaking risk categorisation and determining the level of risk
  • Risk assessment tools (eg. valuation practices)
  • Communication of the aspects of the valuation result/s to clients
  • Discussion on the issues around an adverse valuation
  • Establishment of the probability of risk including the severity and/or impact
  • Identification of stakeholders and how throughout the loan process
    • you seek their views
    • provide pertinent risk information – clearly describe risks
    • recommend amendments to existing controls and report any need for new controls
  1. How would you as a professional in the industry ensure that you comply with industry and government requirements and professional codes of practice?
  2. How would you read and interpret organisational and industry information?
  3. Provide an example of how you present the loan options to the client, including an explanation of why you chose that option or options. This also must state the name of the lender and an explanation of why you chose that lender.

In answering this question you must consider: how you guide the client through options including:

  • Discussion of impact– advantages, disadvantages, risks and financial implications
  • Fees charges and commissions inclusive of any fees paid by the lender directly to the broker
  • How would you explain to the client the lender conditions as they comply with relevant legislation, regulatory guidelines, industry sector compliance requirements and the lenders policy
  • Research and documentation provided to the client
  • Consultation required with other financial services professionals (eg. accountants, lawyers, financial planners, valuers, etc.)
  • Confirmation that the client understands the options presented and any concerns are addressed

Providing information on complaints resolution procedures (internal and external) as included in the information provided to the client.

  1. Prior to presenting the loan options to the client did you identify any concerns that the client may raise? What preparation was completed to respond to these concerns?


  • Research/documentation  materials
  • Alternative  recommendations
  • Regulatory limits and financier guidelines

In your answer you should also refer to your ability to:

  • Identify and respond appropriately to client concerns
  • Exercise restraint when dealing with clients in conflict situations

The process used to gain agreement to proceed from the client.

Assignment 4

Question 1: In this exercise we are analysing some financial statements in preparation for completing a submission to a financier. The scenario is provided below and an income statement and balance sheet is then provided for Wholesale Butchers.
You will then have3 tasksto do:

  1. Using the 2 financial statementsprovided for Wholesale Butchers Pty Ltd, calculate the ratios in the table provided and comment as to the risk using Low/Medium/High rating:
  2. Complete the manual Serviceability Analysis for Wholesale Butchers Pty Ltd by inserting the figures into the table provided
  3. List your comments on the outcome from your completed Serviceability Analysis as you would if presenting this in a submission to a lender.


Mr Brett Olsen has owned his wholesale butcher company “Wholesale Butchers” for the past four years. He is the sole director and shareholder of the company. The past six months has seen an influx in orders and, to keep up with demand, he requires another refrigerated van in order to maintain delivery standards and turnaround times to his respective buyers.

Mr Olsen is purchasing a second hand van, 1 year old, from RV Dealers for $55,000 and is considering a 5 year Chattel Mortgage (CM), with an interest rate of 9% and monthly repayments of $1,133.21. He has opted not to provide a deposit and is not seeking any balloon at the end of the loan term. As no deposit is to be applied, repayments will be monthly in advance.

Brett’s only business debts are an overdraft with CBA with a limit of $25,000 and current balance of $2,800 and his CM with Esanda for his existing refrigerated van, monthly repayments $1,058 pm with 2 years remaining.
His financials for the financial years ending 2014 and 2015 are provided here for your perusal and assessment.

Wholesale Butchers Pty Ltd
Income Statement
For the financial year ending 30 June 2015





Cost of Goods Sold291,000305,550
Gross Profit194,000203,700


Operating ExpensesAdvertising1,2501,300
Office Equipment1,0001,100
Vehicle Expenses9,70010,185
Total Operating Expenses161,222167,875

                                           Net Profit                                     32,778                  35,825


Wholesale Butchers Pty Ltd


Balance Sheet

For the financial year ending 30 June









Current Assets                  Cash22,94525,078
Stock on Hand5,5965,876
(May be recorded as Inventory)
Total Current Assets32,58235,197
Non-Current Assets         Plant and equipment24,00021,600
Other Non-Current Assets2,3482,574
Intangibles (Formation Costs)6,2505,750


Total Non-Current Assets







Total Assets100,18094,871
Current Liabilities            Creditors11,19211,752
Overdraft CBA (Limit $25,000)3,6002,800
CM Esanda Current Portion ($1058×12)12,69612,696
Provisions                          Employees4,0424,244
Total Current Liabilities32,12832,129
Non-Current Liabilities CM Esanda Long Term Portion22,25611,295
Total Non-Current Liabilities22,25611,295

Total Liabilities and Provisions







Net Assets45,79651,448

Part A? Using the financial statements provided ? Wholesale Butchers Pty Ltd ? you should fill in the table below by calculating the ratios in the 2014 and 2015 columns and in the Risk Grade column comment as to the risk using the grading of LOW, MODERATE  or HIGH.

You should also make comments/notes on your analysis.

RATIO20142015Risk Grade
1. Current Ratio
2. Quick Ratio (Acid Test)
3. Return on Equity (ROE)
4. Return on Assets (ROA)
5. Debt to Equity Ratio
6. Debt to Assets Ratio
7. Leverage Ratio
8. Interest Cover Ratio (ICR) – Existing Debt
9. Debt Servicing Cover Ratio (DSCR) – Existing Debt

Part B. Using the financial statements provided ? Wholesale Butchers Pty Ltd ? complete the serviceability analysis  below.

30 June 2030 June 20
Values in $000Values in $000
Net Profit Before Tax(Note  1)
Potential Add Backs
Depreciation / Amortisation (Note  2)
Directors Salaries / Superannuation (Note  3)
Other non?cash items
Extraordinary / Non recurring expenses (may be Plus or Minus) (Note 4)
Earnings Before Interest, Taxation, Depreciation, and Amortisation (EBITDA)
Taxation allowance (Note 5)**
Available for Debt Service
Interest Cover Ratio
Proposed Deductible Interest Costs:
Existing $            k @             % *
Plus Proposed        $          k @             %*
Total Proposed Interest Costs
Proposed Interest Cover(Note  6)

(EBITDA divided by Proposed Interest Cost)

Debt Service Cover Ratio
Existing O/D or Credit Card assumed fully drawn at prevailing interest rate interest only*
Existing Loan Repayments
Proposed Loan Repayments
Total Commitment Proposed
DSCR(Note 7)(Available for Debt Service divided by Total Commitment Proposed)

Part C. Complete comments on the outcome from the Serviceability Analysis, as you would if presenting this in a submission to the financier.

Wholesale Butchers Pty Ltd ? Serviceability Analysis Comments Comments may include but are not limited  to:

Question 2: Please research the Internet (eg. Google) on the subjects below and review the course material, then provide comprehensive answers to the following:

A Trusts

  • What is a Unit Trust?
  • What is a Discretionary Trust?
  • What is a Hybrid Trust?
  • What is a Discretionary Family Trust?
  • What is a Trustee?
  • Define the differences of each type of Trust, including the obligation/s of the Trustee
  • Provide an example of when each type of Trust would be used.

B Company

  • What are the legal requirements of a company?
  • What are the personal obligations of directors by law (please summarise)?
  • Can anyone be a director of a company?
  • What is the minimum number of directors required?

Question 3:From your research activities please provide answers to the following (from a Financial Accounting perspective)

  • What is a Balance sheet?
  • What is a Profit and Loss statement?
  • What is Depreciation?
  • What is Liquidity Ratio?
  • What is Current Ratio?
  • What is Debt to Equity Ratio?
  • What is a Cashflow Statement?
  • What is an Asset?
  • What is Liability?
  • How is a Net Profit determined?
  • How would you define Equity?
  • Under Australian taxation conditions, what are allowable expenses (provide 3 acceptable examples)?

Question 4: From your research activities please provide a definition of the following products and give examples:

  • Commercial Bank Bill
  • Invoice or Factoring Finance
  • Chattel Mortgage
  • Asset Finance product or Equipment Finance

Question 5: In the Australian Standard AS/NZS ISO 31000:2009 there are 11 Principles of Risk Management. List 6 of them and briefly state what each one is about.

Question 6: There are many ways that an Industry Analysis can be completed. We have provided a sample below of a simple process to categorise the overall risk of any business/industry that you may choose to analyse. Please review the entries on the table below. To simplify the process some factors have been grouped together to alleviate any overlap of impact.

Task:In approximately 200 words, explain why you believe it is necessary to categorise risks

Industry Risk FactorLow RiskModerate RiskHigh Risk

Life Cycle


Mature Industry


Mature or Saturated

Decline or Introductory



Stable trends


Unstable trends

Very unstable – strong trend impact

Cost Structure

Lower Fixed costs ?

Higher Variable Costs

Fixed Costs Higher than VariableVery High Fixed Costs, Very Low Variable Costs
EconomicEnvironmentNot impacted by Business CycleSome impact by Business CycleHeavily impacted by Business Cycle
PoliticalEnvironmentNone to little influence, some regulationSome to heavy, Influenced by regulationStrong Influence – heavily regulated

Buyer Impact


Many Buyers


Fewer Buyers

Few buyers, large search effort, high budget required

Supplier Impact


Many Suppliers

Limited or Few SuppliersDependent on one or few, large input value
Threat of New Entrant 

High barriers to entrant.

Lower start up costs, access to marketNo new entrant barriers? very low costs
Threat of Substitute Product/Service 

No Substitution

Some substitutes ?

low cost to switch

High level of substitutes no switching costs

Assignment 5

Task:Please construct a written plan for sustainability for your business (or proposed business). Please incorporate all the points below into your plan. Length should be approximately 1000 words ie. two typed pages. Note, if you are in, or propose to be in, a sole trader business or working within a structure that has their own business plan, then not all of the points may be applicable to you however they should be covered in your assignment. Simply say after the point “may not be applicable to my business” however most points should be. Also please note that profitability is crucial to sustainability and should be considered in any plan.

Additional assistance:

  • We provide a Government Sustainability Toolkit document in Appendix k
  • You can utilise the internet to assist with your research, for example:
    • http://sustainabilityskills.net.au/what?is?sustainability/my?business/
    • http://sustainabilityskills.net.au/what?is?sustainability/sustainability? practice/strategy?and?management/planning?and?procedures/

Points to cover in your plan:

  • Define scope of sustainability policy ? what do you want to  achieve.
  • Gather information from a range of sources to plan and develop policy.
  • Identify and consult stakeholders as a key component of the policy development process.
  • Include appropriate strategies in policy at all stages of work for minimising resource use, reducing toxic material and hazardous chemical use and employing life cycle management  approaches.
  • Make recommendations for policy options based on likely effectiveness, timeframes and cost.
  • Develop policy that reflects the organisation’s commitment to sustainability as an integral part of business planning and as a business opportunity.
  • Agree to appropriate methods of implementation, outcomes and performance indicators.
  • Promote workplace sustainability policy, including its expected outcome, to key stakeholders.
  • Inform those involved in implementing the policy about expected outcomes, activities to be undertaken and assigned responsibilities.
  • Develop and communicate procedures to help implement workplace sustainability policy.
  • Implement strategies for continuous improvement in resource efficiency.
  • Establish and assign responsibility for recording systems to track continuous improvements  in  sustainability approaches.
  • Document outcomes and provide feedback to key personnel and stakeholders.
  • Investigate successes or otherwise of policy.
  • Monitor records to identify trends that may require remedial action and use to promote continuous improvement of performance.
  • Modify policy and or procedures as required to ensure improvements are made.

David Marks

Dear sir/Ma'am

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On-time services maintaining deadlines
Experienced writers
Plagiarism and Grammarly report
Dedicate Team Leaders and Quality Checkers
Subjects we cover:
Marketing management
Human resource management
Environmental science
Business studies
Political science
Journalism and Masscommunication

Declaration: Working with us will give you the opportunity to avail divergent range of academic services at affordable rates in assistance with the dedicated team having members from different disciplines holding high degrees in their respective domains. We are experienced in developing B-plan, writing dissertations and theses having employed highly qualified and experienced writers.

You can reach us at-
Email:- ozpaperhelp@gmail.com
Oz Paper Help

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