Description
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Objective | To provide you with an opportunity to demonstrate your knowledge of the foundation skills, knowledge evidence and performance evidence. |
Complete the following individually and attach your completed work to assessment task 2 cover sheet. The answers to the following questions will enable you to demonstrate your knowledge of:
Answer each question in as much detail as possible, considering your organisational requirements for each one.
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Estimated Time | |
Objective | To provide you with an opportunity to demonstrate your knowledge of the entire unit. |
This is a major Task – your Trainer/Assessor will let you know whether you will complete it during class or in your own time. Attach your completed answers to ASSESSMNET 3 COVER SHEET. You must individually, answer the following questions in full to show your competency of each element:
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Explanation & Answer
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Identify and implement
business innovation
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Activity 1C
Estimated Time
Objective
To provide you with an opportunity to analyses and contrast current business
relationships, business processes and methods of doing business with other innovative
businesses.
Identify four methods of finding out about other businesses.
The methods of finding out about other businesses or competitors are;
1.
2.
3.
4.
Visiting the business websites and analysing their SEO strategies.
Social media where you engage them on different platforms.
Checking industry reports.
Attend professional conferences (Petersen, 2018).
Explain the concept of business benchmarking and how it can help in the comparison of your processes
against other businesses.
Business benchmarking is viewed as the process of comparing your business’s processes and its performance
statistics to industry best practices from companies operating in the same industry. Benchmarking can also be
defined as the process of comparing your organization/business, processes, or operations to other
organizations in the large market place or in your operating industry (Governmnet, 2017). The main areas of
assessment when it comes to business benchmarking is quality, time, costs, and process effectiveness and
customer satisfactions. The core intention of benchmarking is to generate ideas from the competitors’ analysis
and use them to improve your own approaches, technologies and processes to reduce costs, increase profits
and better customer satisfaction and loyalty.
It helps in comparing to other businesses by providing data and statistics that you compare to your own
business statistics. It also helps in developing internal perspective about other businesses and how they
operate which enables a business to compare positively. Benchmarking also helps in comparing by identifying
gaps in service delivery and product promotion (REH, 2017).
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Activity 2A
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Objective
To provide you with an opportunity to investigate business strategies to identify
opportunities for innovation and reform.
Describe the use of each of the following methods of strategic analysis and the ways in which they enable you
to identify opportunities for innovation and reform.
➢ SWOT analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is used by organizations and businesses
to analyse external and internal factors affecting them. It is used to minimize threats and weaknesses while
maximizing strengths and taking advantage of available opportunities in industry of operation. Secondly, it is
used to brainstorming, strategic planning and decision making. SWOT analysis also addresses
individual/organizational challenges (Staff, 2017). It helps in taking up opportunities by analysing realizing
business strengths and weaknesses which determines which needs to be improved through innovations and
reforms.
➢ Scenario planning
Scenario planning refers to the process of visualizing what the future holds for your business either positive or
negative, that is, probable events or assumptions. It can also be defined as the process of making assumptions
on how the future will be and how the business environment will change over time (identifying set of probable
uncertainties). Scenario planning is used for; (1) identifying company driving forces, (2) identifying critical
uncertainties, (3) developing a range of probable/plausible scenario, and finally (5) discuss the scenarios
implications (mariton, 2018).
➢ Critical factor analysis
Critical factor analysis refers to the process of looking at all what is required for success of your organization. It
can also be described as a critical activity or factor that is essential to ensure the success of an organization.
Success factor refers to the things that must go well as intended by the company for it to be successful. It is used
to identify the areas that need improvement and resources allocation. Critical factor analysis concerns
strategizing on people, power, contingency strategy, plan and processes.
Highlight and describe three business areas where there are likely to be opportunities for innovation and
reform.
1. Information technology. There has been a lot of advancements in technology and therefore there is
need for businesses to adopt new technologies. Telecommunication have designed special software
tailored to particular businesses to improve their operations and processes. Also, these new
technological software have the ability to offer decisions on what needs to be done accurately and
implement new strategies. Everyone is embracing technology and migrating from manual ways of doing
things to automated systems that are intelligent and profitable.
2. Sales and marketing strategies. As mentioned above, many people are embracing technology and
therefore businesses need to change their marketing strategies to meet the changing needs of
customers. Many people are spending a lot of time over the internet and business should create their
online presence for marketing strategies.
3. Production processes. Technology has brought more accurate product optimization tools that businesses
can take advantage of and reform their product production processes. Automation of production
systems is a very crucial aspect that businesses can innovate and reform
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Activity 2B
Estimated Time
Objective
To provide you with an opportunity to assess opportunities for their compatibility with
business goals and objectives, and conduct a cost-benefit analysis for each.
This Task will require you to consider one opportunity for the innovation or reform of your business. You
should carry out a cost-benefit analysis in order to find out whether this opportunity is feasible. You should
provide details of the calculations and methods of cost-benefit analysis that are used. A recommendation
should be made based upon your findings.
Cost-benefits analysis
The cost benefit analysis process estimates the benefits and costs of an investment for two reasons:
1. To determine if the project is viable; if it is a good investment
2. To compare one project investment with other competing projects, to determine which is more feasible.
It allows decision makers to appraise projects in a consistent and comparable manner. The methods used are;
1. Incremental Cost Benefit Ratio
This method helps to determine the margin by which a project is more beneficial or costly than another project.
It is used to compare alternative options to help determine which is more feasible over the other(s). The formula
is: Incremental BCR = (Σ B1 - Σ B2) / (Σ C1 - Σ C2) where ΣB1 = total benefits for project ‘1’ and ΣC1 = total costs
for project ‘1’.
2. Benefit Cost Ratio (BCR)
This is the ratio of project benefits versus project costs. It involves summing the total discounted benefits for a
project over its entire duration/life span and dividing it over the total discounted costs of the project.
[𝜮 𝑩𝒊 / (𝟏 + 𝒅)𝒊 ] [𝜮 𝑪𝒊 / (𝟏 + 𝒅)𝒊 ] 𝑩𝑪𝑹 = 𝒔𝒖𝒎𝒎𝒆𝒅 𝒐𝒗𝒆𝒓 𝟏 = 𝟎 𝒕𝒐 𝒏 𝒚𝒆𝒂𝒓𝒔
Where Bi = the project’s benefit in year i, where i = 0 to n years
Ci = the project’s costs in year i, where i = 0 to n years
n = the total number of years for the project duration
d = the discount rate
3. The Payback Period
This is the time period required for the total discounted costs of a projec...