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Elements and Performance Criteria

  2. Implement operational strategies and procedures
  3. Monitor business performance
  4. Review business operations

Required Skills

Required skills

analytical skills to develop criteria and targets for the business plan

communication skills to question clarify and report

literacy skills to interpret legal requirements company policies and procedures

numeracy skills to manage performance information and to control the finances

technology skills to use relevant business equipment

Required knowledge

methods for developing and maintaining networks

methods for implementing operation and revenue control systems

methods for monitoring performance and implementing improvements

OHS responsibilities and procedures for managing hazards

principles of risk management relevant to the business including risk assessment

quality system principles and methods

relevant industry codes of practice

relevant marketing sales and financial concepts

relevant performance measures

role of innovation

systems to manage staff stock expenditure services and customer service

technical or specialist skills relevant to the business operation

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge range statement and the Assessment Guidelines for the Training Package

Overview of assessment

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

Evidence of the following is essential

developing strategies and procedures to successfully manage the operation of the business

making appropriate adjustments to the business operations as required

knowledge of quality system principles and methods

Context of and specific resources for assessment

Assessment must ensure

access to relevant documentation

candidates individual circumstances and work in the context of running a small business are the basis for assessment

Method of assessment

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

portfolio of evidence including operational strategies and procedures

oral or written questioning to assess knowledge of principles of risk management relevant to the business including risk assessment

review of analysis of operating problems establishing causes and implementing changes as required as part of the business quality system

review of records proposing changes to the business operations

Guidance information for assessment

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

BSBSMBA Manage small business finances

BSBSMB406A Manage small business finances

BSBSMBA Manage a small team

BSBSMB407A Manage a small team.

Range Statement

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, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Operational strategies and procedures may be determined by:

business premises (size, location, layout)

financial control systems and procedures

management and administrative systems and procedures


physical and natural resources

plant and equipment , including OHS requirements

premises, plant and equipment, which may be new or previously owned

purchase (sole or shared ownership) or leasing

raw materials

requirements, which may be one-off requirements or recurrent requirements (such as equipment maintenance) specific to the nature of the business


use of existing, new and emerging technologies including e-commerce

Business goals and objectives may include:

customer needs/marketing projections

family or community benefits

financial projections

goals, objectives, plans, systems and processes

lifestyle issues

proposed size and scale of the business, market focus of the business

short-, medium- or long-term goals

social responsibility

Occupational health and safety and environmental issues must include:

controls, which may include instructions to workplace personnel concerning site hazards and controls, material safety data sheets, use of personal protective equipment, vehicle access, signs and barricades, traffic control, outside contractors

establishment and maintenance of procedures for assessing and controlling risks

establishment and maintenance of procedures for identifying risks to health and safety

waste and by-products

Quality system may include:

manual or computer quality control systems

quality assurance/management approaches

random inspections and assessments of goods and services against predetermined standards

random inspections and assessments of processes against predetermined standards

random sampling and follow-up of customers

Operational targets may include:

external targets, which may relate to market share and positioning and may involve exploring new markets, building national or international trade links

internal targets, which may relate to size, quality, quantity and diversity, wages to sales, sales to area/stock levels/stock turnover/average debtor payment periods and levels

staffing level and skills mix

targets, which may be short-, medium- or long-term

Technical standards may include:

current and generally agreed descriptions of what the product/service is, how it should be produced/delivered and the quality, safety, efficiency or other measures to determine the activity is done effectively