Assessment Task 2 BSBSMB404A Undertake Small Business Planning

Assessment Task 2 BSBSMB404A Undertake small business planning

Contingency planning

Submission details

Candidate’s Name / Phone No.
Assessor’s Name / Phone No.
Assessment Site
Assessment Date/s / Time/s

The Assessment Task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The candidate must be able to objectively rate the impact of a possible scenario occurring and the impact on the business if it does. Form a plan that will either minimise the impact or remove the possibility of the event occurring.

Assessment description

Contingency planning for the operation of a Small Business involves planning for situations that could go wrong and minimising the impact if it does. It provides a pre-thought out road map to help businesses recover from serious incidents in the minimum time with the minimum cost and disruption. Also known as ‘Back-up plans’, ‘Worst-case scenario plans’, or just ‘Plan B’, these contingency plans are often devised by businesses who want to be prepared for anything that could happen and keep trading.

Below is a matrix that will demonstrate the competency of the candidate to examine possible issues and construct a contingency plan.

Procedure

Using the same business you have used throughout the Student Workbook and Assessment Task 1, you are required to create contingency plans for the scenarios listed below.
You will need to complete the following.
Rate the severity of the impact to your case study if this occurred.
Consider the potential implications.
Outline the contingency plan you would put in place to minimise the impact. A minimum of three contingencies are required for each scenario.

Specifications

You will need to provide:

· A completed table for every scenario given below.

· At least three contingencies for each scenario.

Your assessor will be looking for:

· All scenarios are addressed in a neat and concise manner.

· All contingency plans to be completed and at least three contingencies provided for each plan.

Adjustment for distance-based learners

· No variation of the task is required.

· A follow-up interview may be required (at the discretion of the assessor).

· Documentation can be submitted electronically or posted in the mail.

Example

Example 1: Competitors copy what you are doing.

Risk Description / SEVERITY / Potential Implications
Probability / Impact / Overall Seriousness
Competitors copy what you are doing / Is as likely as not to occur - High / Minor impact - Low / Medium / Loss of unique selling position
Price downward pressure
Add to overall market size

Contingency plan

· Register copyright on Intellectual Property (IP) or apply for patent or mark on product that copying is prohibited and that your organisation owns the rights to it.

· New products and upgrades introduced regularly.

· Maintain good supplier relationships and agree on protection of the plans for the product.

Scenarios

Scenario 1

You do not have enough cash flow for one particular month to cover your orders to cater for your annual peak season.

Risk Description / SEVERITY / Potential Implications
Probability / Impact / Overall Seriousness
You don’t have enough cash flow for one particular month to cover your orders to cater for your annual peak season.

(Proviso: if your case study is service based, or for some reason the scenario of orders does not apply adapt it to the situation of a lack of cash flow in a similar situation to cover your ability to provide your service to a client needed to provide the cash flow. For example, vehicle breaks down and needs repair, a software virus crashes your computer and repairs needed, etc.)

Contingency plan:

Scenario 2

A fire destroys your office or a malignant virus infects your software with the result that your records are either destroyed or a large percentage is lost.

Risk Description / SEVERITY / Potential Implications
Probability / Impact / Overall Seriousness
A fire destroys your office or a malignant virus infects your soft ware with the result that your records are either destroyed or a large percentage is lost.

Contingency plan:

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Scenario 3

A multinational takes you to court to prevent you from using your current business name.

Risk Description / SEVERITY / Potential Implications
Probability / Impact / Overall Seriousness
A multinational takes you to court to prevent you from using your current business name?

Contingency plan:

‘

Scenario 4

A disgruntled key employee takes all your valuable client information and contract agreements and goes to work for a competitor.

Risk Description / SEVERITY / Potential Implications
Probability / Impact / Overall Seriousness
A disgruntled key employee takes all your valuable client information and contract agreements and goes to work for a competitor?

Contingency plan:

‘