Unit 29: Producing a business plan (LEVEL 3)

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1 Unit 29: Producing a business plan (LEVEL 3) Learning outcomes By completing this unit candidates will develop a thorough knowledge and understanding of the purpose, content and production of a business plan. They will begin by presenting a business idea and progress to producing a professional business plan. In so doing candidates will be expected to make use of ICT tools. Candidates will produce evidence to meet the unit assessment objectives in order to show that they understand: how to identify and present an initial business idea existing business plan templates and how to compare and select a suitable template how to design and create a spreadsheet to support a financial plan the compilation and production of a professional business plan. It is anticipated that a candidate will require 60 guided learning hours to complete this unit. Assessment objectives 1 Identify and present an initial business idea 2 Search and compare existing business plan templates and select a suitable template Knowledge, understanding and skills Type of business: eg sole trader partnership new business/existing business limited company franchise Selling points: eg demand for business/product attractiveness of product competitive price market and competitors Other issues: eg profitability market trends availability of skills and knowledge Sources: eg Internet books small business advisors Selection criteria: eg content ease of use suitability of format simplicity/complexity OCR Level 3 Nationals in ICT 1

2 Assessment objectives 3 Design and create a spreadsheet to support a 3 year financial plan 4 Compile and produce a professional business plan Knowledge, understanding and skills Design: eg user requirements (purpose) structure cell formats Features: eg analysis of estimated income (sales) and outgoing (costs) breakeven analysis prediction of growth start up costs Tools: eg formulae mathematical functions (SUMIF, COUNT etc ) logical functions (IF etc ) absolute and relative cell referencing macros modelling appropriate formatting including colour, shading and borders Content aims and objectives mission statement summary type of business marketing plan operational plan resources: premises, equipment, materials, staff skills financial plan Quality of presentation: eg fit for purpose appropriately formatted consistent table of contents hyperlinks bullets and numbering referencing Assessment This unit is centre assessed and externally moderated. In order to achieve this unit, candidates must produce a portfolio of evidence showing that they have met all of the assessment objectives. Portfolios of work must be produced independently. They will need to be made available, together with witness statements and any other supporting documentation, to the OCR Visiting Moderator when required. Centres must confirm to OCR that the evidence produced by candidates is authentic. An OCR Centre Authentication Form is provided in the Centre Handbook and includes a declaration for assessors to sign. It is a requirement of the QCA Common Criteria for all Qualifications that proof of authentication is received. 2 OCR Level 3 Nationals in ICT

3 Guidance on assessment and evidence requirements Candidates may provide portfolio evidence for this unit using a range of suitable and appropriate techniques. These may include written data, the use of video, audio presentation and presentations within the body of the portfolio and display evidence. Where presentations or displays have taken place for which evidence cannot be easily included within the portfolio evidence assessor testimony/witness statements must be included, signed by the assessor(s), and supported by appropriate evidence (handouts, slides etc). Centres may wish to organise a link with a local business and write an assignment accordingly. This may be useful in the early stages of the course. In order to do this unit candidates should be familiar with spreadsheet software. This unit requires candidates to choose a business idea. Ideas could be provided by candidates themselves, by the centre or obtained from local business and enterprise organisations. Before candidates choose their own business idea they should research different types of businesses as outlined in the kus. They will also need to find out what each of the businesses selling points are. Candidates should use this research to select and present an initial business idea for Assessment Objective 1. For Assessment Objective 2, candidates will compare templates for writing a business plan. There are many templates available and candidates should search for different types of plans from several sources, evaluate them and then select one. Assessment Objective 3 requires candidates to apply their spreadsheet skills in developing a financial model of the business. This will then form the basis for the financial plan section of the business plan. The first three Assessment Objectives are brought together along with additional information to produce the business plan required by Assessment Objective 4. Candidates are required throughout to demonstrate their ability to apply their ICT skills. For Assessment Objective 1, candidates must provide evidence that they have identified a suitable business idea. They could present evidence for this in either written, note form or as a spoken presentation either to a group or one-to-one. Evidence could be either written, an audio/video recording or a transcript of the presentation. Candidate s own evidence should be supported by a detailed Witness Statement. For a Pass level candidates must outline the basic business idea. They are not required to justify their decision. For Merit and Distinction levels increasing levels of detail must be provided as well as a justification as to why they have decided on their chosen business idea. For Assessment Objective 2, candidates must provide evidence that they have searched for business plan templates from several sources and selected a suitable template for use. They will need to justify their selection. For merit and distinction grades candidates must use more sources and templates and demonstrate increasing levels of justification for their choice. For Assessment Objective 3, candidates must demonstrate that they can design and create a spreadsheet suitable for modelling the business idea. For a Pass level candidates are required to design and create a simple spreadsheet. For Merit and Distinction levels candidates must create a more comprehensive spreadsheet and demonstrate the use of more advanced features. Evidence of formulae must be clearly seen from printouts. Evidence for the macros produced should either be a printout of the macro code or the file could be provided electronically. For Assessment Objective 4, candidates must provide a complete business plan using the work they have completed for previous Assessment Objectives. The template used could be one that the candidate found in Assignment Objective 2. Candidates do not have to design their own. The business plan must be produced to a professional standard. For Merit and Distinction levels candidates must include more components of the plan, demonstrate the use of charts and the use of more professional methods of presentation. They must make more use of the ICT tools they have available. OCR Level 3 Nationals in ICT 3

4 Signposting to Key Skills The unit contains opportunities for developing the Key Skill, and possibly for generating portfolio evidence, if teaching and learning is focused on that aim. Assessing staff will need to check each candidate s evidence against the specifications to ensure all evidence requirements have been met. Additional evidence may also be required. Key Skill reference Key Skill reference Key Skill reference C3.1a N3.1 ICT3.1 C3.1b N3.2 ICT3.2 C3.2 N3.3 ICT3.3 C3.3 Mapping to National Occupational Standards Occupational Standards (e-skills UK) IT Users IT Users IT Users IT Professional Telecommunications IT Professional Contact Centres Telecommunications Title Make selective use of IT Operate a computer Spreadsheet software Data analysis and data structure design Interpersonal and written Communication General uses of IT Purposes for using IT Use IT software Use IT to exchange information Resources This section provides suggestions of suitable resources. The list is neither prescriptive nor exhaustive, and candidates should be encouraged to gather information from a variety of sources. Some suggested resources are intended for Tutor use. The resources in this section were correct at the time of production. Websites Bized. URL: Service for students and educators on business and economics related subjects. Natwest. URL: Information on finance and e-business The Times 100. URL: Resource for students and teachers. Case studies on real companies. HSBC. URL: Information on business banking. 4 OCR Level 3 Nationals in ICT

5 Business Link. URL: Practical advice for business Bplans. URL: How to write a business plan OCR Level 3 Nationals in ICT 5

6 Grading Assessment Objective AO1 Identify and present an initial business idea AO2 Search and compare existing business plan templates and select a suitable template AO3 Design and create a spreadsheet to support a 3 year financial plan Pass Merit Distinction Candidates present brief notes outlining their idea for a new business or development of an existing business. They identify the product and the type of business planned. They provide a basic justification of why they consider their idea to be a good business venture. Candidates provide evidence of searching for and obtaining at least two business plan templates. They use at least two sources. They compare the templates obtained and select a template for use in AO4. They briefly justify their selection. Candidates produce a simple spreadsheet design. The design includes the estimated costs and sales for the next 3 years. They create a basic spreadsheet from their design. The spreadsheet has columns and rows suitably labelled, and includes use of appropriate formulae and function, all of which should work. Candidates present clear notes outlining their idea for a new business or development of an existing business. They identify the product and the type of business planned. They provide a realistic justification of why they consider their idea to be a good business venture. Candidates provide evidence of searching for and obtaining at least three business plan templates. They use at least two sources. They compare the templates obtained and select a template for use in AO4. They use suitable criteria and clearly justify their selection. Candidates produce a detailed spreadsheet design. The design includes the estimated costs and sales for the next 3 years and estimated start up costs. They create a detailed spreadsheet from their design. The spreadsheet has columns and rows suitably labelled, appropriate formatting and includes efficient use of formulae and functions. Candidates present detailed notes outlining their idea for a new business or development of an existing business. They identify the product and the type of business planned. They provide a thorough justification of why they consider their idea to be a good business venture. Candidates provide evidence of searching for and obtaining at least four business plan templates. They use at least three sources, one of which should be a non-ict source. They compare the templates obtained and select a template for use in AO4. They use suitable criteria and comprehensively justify their selection. Candidates produce a comprehensive spreadsheet design. The design includes the estimated costs and sales for the next 3 years, estimated start up costs and a breakeven analysis. They create a comprehensive spreadsheet from their design. The spreadsheet has columns and rows suitably labelled, effective formatting and includes a range of effective formulae and functions, including at least one logical function. 6 OCR Level 3 Nationals in ICT

7 Assessment Objective AO4 Compile and produce a professional business plan Pass Merit Distinction Candidates produce a basic business plan for the business idea presented in AO1. The plan is based on the template selected in AO2. It includes a financial plan based on AO3. The spreadsheet may be separate from the rest of the business plan. At least three elements of a typical business plan are included. The business plan is appropriately formatted. It includes a table of contents which is hyperlinked to the plan. There may be some errors in its accuracy. Candidates produce a detailed business plan for the business idea presented in AO1. The plan is based on the template selected in AO2. It includes a financial plan based on AO3. The spreadsheet is imported into the word-processed plan. At least four elements of a typical business plan are included. The business plan is well formatted. It includes a table of contents which is hyperlinked to the plan and uses bullets and/or numbering as appropriate. There are few errors in its accuracy. Candidates produce a comprehensive business plan for the business idea presented in AO1. The plan is based on the template selected in AO2. It includes a financial plan based on AO3 and at least two charts which explain the spreadsheet. The spreadsheet and charts are imported into the word-processed plan. Most elements of a typical business plan are included. The business plan is consistently and well formatted. It includes bullets, referencing, outline numbering and a table of contents which is hyperlinked to the plan. There are no errors in its accuracy. OCR Level 3 Nationals in ICT 7

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