Element

Performance Criteria

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Analyse environmental factors influencing products and services.

1.1.Determine opportunities for expanding professional knowledge of a market.

1.2.Initiate research to review demographics and consumer habits for a specific product or service.

1.3.Anticipate changes in market conditions.

1.4.Confirm business to business sales and supply goals and expectations.

1.5.Analyse relationships with suppliers and strengthen to enable business opportunities to be realised.

2. Identify a business opportunity.

2.1.Secure sources of information about business opportunities in line with business direction and goals.

2.2.Explore potential business applications for creative ideas and innovative approaches.

2.3.Encourage individual entrepreneurial spirit and attitudes and orient towards potential business applications.

3. Evaluate a business opportunity.

3.1.Investigate business opportunities to determine their market and financial viability.

3.2.Secure documents and records for existing customers to assess the suitability of a business opportunity.

3.3.Map suitability of a business opportunity against business plans, market expectations, and capacity to respond.

3.4.Evaluate a business opportunity for compatibility with current business activities and customer relationships.

3.5.Assess return on investment from a business opportunity by identifying and analysing risks, opportunities, costs and benefits.

3.6.Quantify potential non revenue advantages from a business opportunity.

3.7.Identify and assess relevant situational factors affecting the potential of a business opportunity.

3.8.Determine options for proceeding with a business opportunity.

4. Seize viable business opportunities.

4.1.Determine viability of a business opportunity.

4.2.Gain approval for progressing a business opportunity according to business policy and procedures.

4.3.Seize viable business opportunities.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills

literacy and numeracy skills to:

read and understand business policy and procedures

read and interpret a range of written documentation

determine market and financial viability of business opportunities

analyse data

research skills to investigate and identify business opportunities

analytical skills to conduct a risk assessment

interpersonal skills to:

secure approval for viable business opportunities through clear and direct communication

ask questions to identify and confirm requirements

share information

give instructions

use language and concepts appropriate to cultural differences

use and interpret non-verbal communication

Required knowledge

marketing concepts and principles including:

techniques to identify and capture business opportunities

market trends and forecasts

marketing mix

market information, systems and research

product development cycle

price adjustment strategies

risk factors within specific markets

determining customer behaviour, needs, expectations and satisfaction levels

planning integration of development and maintenance functions

business policy and procedures regarding:

job role and responsibilities

approval processes

logistics

awareness of relevant industrial or legislative requirements, including Work Health and Safety (WHS)

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

performs quality investigative research on a range of business opportunities

produces concise evaluative and analytic reports on a range of business opportunities

advocates and secures support for business opportunities

accurately reports on return on investment or other advantages to be secured through a business opportunity

assesses and reports on success of realised business opportunities.

Context of and specific resources for assessment

Assessment must ensure access to:

a real or simulated work environment

relevant documentation, such as:

business policy and procedures manuals

product or service information

strategic plans

business mission statement

information on the internal and external operating environment

a market.

Methods of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

observation of the candidate in the workplace

third-party reports from a supervisor

a detailed case study

written or verbal questioning to assess knowledge and understanding

review of portfolios of evidence and third-party workplace reports of on-the-job performance.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.

Market may include:

local

national

regional

international.

Research may be carried out using:

electronic media, e.g. database, intranet, virtual private network, ultranet, internet

print media, e.g. newspapers, annual reports, ABS reports

visual media, e.g. videos, television news.

Market conditions may vary according to:

demographics

economics

competition

social and cultural factors

political influences

legal factors

natural factors

technology.

Sources of information may include:

contacts with others inside or outside the business

customers

staff

publications

business journals

newspapers

conferences and courses

internet

statistics

observation

market research.

Documents and records may include:

contact history

purchase requests and orders

tender submissions and proposals

invoices and payment requests

statements and petty cash vouchers

offer and contract documents

evaluation process documentation

records of authorised officers' decisions

corporate credit card transaction statements

records of supplier performance

financial statements

asset registers

records of conversation.

Customers may include:

new and existing customers

internal or external customers

business customers or individuals

people from a range of social, cultural and ethnic backgrounds and with varying physical and mental abilities

customers with routine or special needs.

Business plans may include:

sales

marketing

strategic

business

purchasing and procurement

disposal

human resource

public relations

contingency

risk management

environmental.

Evaluate a business opportunity may include:

stakeholder consultation

development of a business case

modelling results

cost-benefit analysis

data analysis

comparison of internal versus outsourced provision

whether to buy or lease.

Non-revenue advantages for business may include:

increased market share

strategic objectives met

positive brand value

performance benchmarks achieved.

Relevant situational factors affecting business opportunities may include:

market trends

Australian and international standards

industry standards

performance indicators

quality measures and criteria

planning milestones and timeframes

design brief

approval processes

manufacturer and supplier standards.

Business policy and procedures may relate to:

strategic planning

job role and responsibilities

approval processes.