Unit of competency details

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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.