List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Evaluate and plan retail financials. | 1.1.Access and accurately interpret budgetary and financial plans of the business. 1.2.Measure financial results, identifying patterns and trends, including variances from budget and financial plans. 1.3.Identify factors that could improve financial performance and limit variances from budget and financial plan. 1.4.Identify contingency actions to be adopted if financial circumstances change. 1.5.Clarify and negotiate, with relevant personnel, changes required to the budget and financial plans. |
2. Monitor and control financials. | 2.1.Monitor financials regularly to accurately identify actual results against budget and financial plans. 2.2.Identify trends and patterns including variances from budget and financial plans, and take prompt corrective action within work role where significant deviations occur. 2.3.Review variable and semi-variable costs to highlight opportunities. 2.4.Complete workplace documentation and other records of budget performance and expenditure, and report to relevant personnel. 2.5.Recommend, and implement within work role, activities that improve business financial performance and limit variances from budget and financial plan. |
3. Positively impact the financials. | 3.1.Consult relevant internal personnel, including work team, on ways to increase productivity and reduce labour spend. 3.2.Identify and document strategies to increase productivity and reduce labour spend. 3.3.Promote the strategies adopted to improve productivity and financial profitability, including advising the work team on their roles in improving business financials. 3.4.Monitor implementation of strategies, and support team to improve sales results. 3.5.Identify changes to strategies to improve uptake and outcomes. 3.6.Delegate responsibilities and accountabilities relevant to budget and financial achievement in accordance with organisational policies. |
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
evaluate financial performance of a retail business over a specific organisational financial period
develop and document a financial plan for the same retail business detailing:
strategies to drive sales
strategies to reduce labour spend
strategies to reduce cost of goods
contingency planning
implement the above financial plan demonstrating the following financial monitoring and control activities:
communicating and delegating responsibilities:
team or individual sales targets
roster to labour spend
shrinkage targets
measuring financial results to identify trends
reviewing variable and semi variable costs
consulting the team on financial management and performance.
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
retail financial planning and reporting
for the specific industry sector:
external factors impacting on financial results
competitor activity
market performance
for the particular retail organisation:
budgets and financial plans
internal factors impacting on results
individual store circumstances impacting on financials
process to amend stock allocation
promotional calendar
recruitment process
shrinkage targets
financial results including:
sales
variable costs
semi variable costs
financial contingencies and contingency planning:
amending stock allocation
sales promotions
recruitment strategies
strategies to monitor retail financials:
measuring results to identify trends:
team or individual performance
trading days or times with peak or low performance
external market factors
reviewing variable and semi variable costs:
labour
utilities
consumables
financial management strategies:
management of variances
driving sales by:
increasing average spend
increasing customer loyalty
increasing traffic
reducing labour spend:
increasing productivity
reducing non-contact hours
reducing overtime if applicable
reducing cost of goods:
reducing aged stock and markdowns
reducing internal theft and fraud
reducing external theft
managing administrative errors.
Skills must be demonstrated in a retail environment. This can be:
an industry workplace
a simulated industry environment.
Assessment must ensure access to:
organisational budgets and financial plans
organisational financial results including:
sales
variable costs
semi variable costs
stakeholders and team members with whom the individual can interact; these can be:
relevant personnel and team members in a retail workplace, or
people who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.