Business Plan ‘World class industry-embedded training’ Australian College of Trade

Business Plan
‘World class industry-embedded training’
Australian College of Trade Pty Ltd
Number FA0056
859 High Street Thornbury
Victoria Australia 3071
Version .03
ABN: 31 126 145 686
Phone: +61 (03) 94848787 Fax: +61 (03) 94848989
Email: [email protected]
Australian College of Trade Pty Ltd
CRICOS: 03082B
RTO: 21983
Date: 28/12/2011
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Index
1.0 Business Plan Summary .............................................................................................. 3
1.1 The Business ............................................................................................................ 3
1.2 Market Environment ................................................................................................. 3
1.3 The Future ................................................................................................................ 3
1.4 The Finances ............................................................................................................ 3
2.0 The Business ................................................................................................................ 4
2.1 Business details ....................................................................................................... 4
2.1.1 About the business .......................................................................................... 4
2.1.2 Pedagogy......................................................................................................... 4
2.1.3 Products and services ..................................................................................... 5
2.2 Registration details ................................................................................................... 5
2.3 Business premises ................................................................................................... 5
2.3.1 The Thornbury Theatre .................................................................................... 5
2.4 Organisation chart .................................................................................................... 6
Members of the Executive ............................................................................................ 6
2.4.1 Chief Executive Officer .................................................................................... 6
2.4.2 Chief Operating Officer .................................................................................... 7
2.5 Management & ownership ....................................................................................... 7
2.6 Key personnel .......................................................................................................... 8
2.6.1 Alan Silver........................................................................................................ 8
2.6.2 Aakash Kumar ................................................................................................. 8
2.6.3 Rachel Ma........................................................................................................ 8
2.6.4 Other staff ........................................................................................................ 8
2.7 Products/services ..................................................................................................... 8
2.7.1 Business Programs ......................................................................................... 9
2.7.2 Performing Arts ................................................................................................ 9
2.7.3 University Business Preparation Program ....................................................... 9
3.0 The Market.................................................................................................................... 9
3.1 Market assessment .................................................................................................. 9
3.2 Market Target ......................................................................................................... 10
3.3 Environmental/industry analysis ............................................................................. 10
3.3.1
Government Policy ....................................................................................... 10
3.3.2
Business Environment .................................................................................. 10
3.3.3
International Factors ..................................................................................... 10
3.4 S.W.O.T. analysis ................................................................................................... 10
3.5 Competitors ............................................................................................................... 11
4.0 The Future .................................................................................................................. 12
4.1 Vision statement ..................................................................................................... 12
4.2 Mission statement .................................................................................................. 12
4.3 Goals/objectives ..................................................................................................... 12
4.4 Action plan .............................................................................................................. 12
Australian College of Trade Pty Ltd
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1.0 Business Plan Summary
1.1
The Business
This strategic business plan covers the calendar years 2012 to 2015 and was adopted
by the Executive, representing the new owners at a meeting held on 28 December
2011. The mission is to provide, quality, compliant education and training to assist
participants gain suitable employment and/or articulate into university using the
education and skills gained at the Australian College of Trade (ACOT).
1.2
Market Environment
The major thrust during 2012 is to target students disillusioned with the current
confusing situation in the international marketplace. In order to be competitive the
business programs will be offered at a discount rate of $7000 during 2012 and offer
weekend options to students.
ACOT will predominantly offer business/management programs over the next 3
years, developing new program offerings in accounting, small business, information
technology, performing arts and a new university preparatory program (Australian
and US).
ACOT will develop appropriate short course offerings during 2012/13 including
responsible service of alcohol and coffee making.
1.3
The Future
ACOT will retain its hospitality offerings over the next three years but redirect its
focus towards Business Management and Performing Arts to enable it to develop a
strong and quality approach to the Australian market and target these programs to
local students in 2014.
ACOT plans to reach a student target of 300 capacity full time international students
between 2013 and 2015, achieving between $2.1 million and 2.5 million in annual
revenue generated across all study areas, aiming ultimately to achieve a net
operating profit in excess of 20% of revenue.
1.4
The Finances
The new ownership is committed to providing as much working capital as necessary
to ensure the next 3 year revenue targets are met. The first major expenditures will
include investment in computers, desks, chairs, projectors, library resources, new
offices and classrooms [downstairs].
Achieving recruiting targets as follows will also be crucial to the financial success of
ACOT. The targets are as follows:
December 2012 -100 students revenue target $700000
Profit target 10% of turnover approximately $70,000
December 2013 -200 students revenue target $1.4 million
Profit target 10% of turnover approximately $140,000
December 2014 - 300 students revenue target $2.5 million
Profit target 10% of turnover approximately $250,000
Australian College of Trade Pty Ltd
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# based on average course revenue of $7,000 per annum for 2012/13 and
$9000 for 2014.
2.0 The Business
2.1
Business details
2.1.1 About the business
Australian College of Trade Pty Ltd (ACOT) is an enterprise based, Registered
Training Organisation (RTO).
Registered as an Australian Proprietary Company in June 2007, ACOT is
Government accredited to deliver Nationally Accredited Programs having
received Government recognition as an RTO in July 2007. The company
changed ownership in March 2010, whilst maintaining continuity with
regard to key personnel.
Delivering skills based vocational training within working businesses, ACOT is
part of a new breed of Vocational Education and Training (VET) provider,
existing to satisfy the increasing expectation of business and individual
learners, and it is demand driven, client focused and industry embedded.
2.1.2 Pedagogy
ACOT’s pedagogy is focused on providing quality training and
practical/performance experience within a ‘live enterprise’ environment.
This is achieved through our ‘Centre of Excellence’ concept of an RTO run
enterprise that delivers customised ‘industry embedded’, nationally
accredited training programs primarily within its own facility and also in
conjunction with local industry.
ACOT’s ‘Centre of Excellence’ will be refocused to specialise in Business
Management and Performing Arts, as our dual purpose facility functions as
both training centre ‘Australian College of Trade’ and as an event and
entertainment venue ‘The Thornbury Theatre’, operating as separate
business entities co-operating to achieve profit targets, with senior
management responsible for both business.
Via ‘The Thornbury Theatre’, ACOT has the capacity to operate large scale
Events on multiple nights each week within its 416 seat Council approved
ballroom/performance space and attached bar and commercial kitchens,
providing our students with genuine opportunities to gain relevant
practical/performance experience.
This strategic approach ensures ACOT is uniquely placed to meet the major
challenge facing VET – shifting as much training as possible from campus
based classrooms to the workplace/performance space.
This initiative increases the relevance, value and immediacy of all our
training and constitutes our main point of difference within the market.
Australian College of Trade Pty Ltd
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2.1.3 Products and services
Current capacity for enrolments is 300 international students. ACOT will
function as a Business Management and Performing Arts Training College,
specialising in Event Management, Small Business, Accounting, Information
Technology, as well as offering quality training for general business and
performing arts, embedding the delivery and assessments into the ongoing
operations of ‘The Thornbury Theatre’.
Training products will range from short courses in coffee making and
Responsible Service of Alcohol (RSA) to Diplomas and Advanced Diplomas in
Business Management, with a focus on articulation to higher education both
domestic and international.
2.2
Registration details
Company name:
Australian College of Trade Pty Ltd
Trading name:
Australian College of Trade
Company registered:
June 2007
Location registered:
859 High Street, Thornbury, VIC Australia 3071
Business structure:
Propriety Company
ABN:
31 126 145 686
GST:
Registered to report quarterly
Domain name:
www.acot.vic.edu.au
Licenses and permits:
RTO 21983
CRICOS 03082B
2.3
Business premises
2.3.1 The Thornbury Theatre
ACOT operates out of the historic Thornbury Theatre Located at 859 High
Street Thornbury, (www.thethornburytheartre.com), which is a dynamic
entertainment, event and training complex. It consists of over 2,000 square
metres of floor space that can be utilised as training areas for combination
of practical and theory classes.
Established in 1925 the Thornbury Theatre ran as a grand picture palace
until the 1960’s when it was reconfigured as a reception centre. It consists
of a grand entrance hall with ornate domed ceiling, a bar and lounge, two
commercial kitchens, ground floor banquet hall and 1st floor grand ballroom.
This magnificent venue is truly a one of a kind facility, capable of running
diverse range of events, from fully catered weddings, local business
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conferences and dinner dances, to fashion parade, live music events and
comedy festival performance in addition to operating as a training college.
The Thornbury Theatre is conveniently located within walking distance of
both train and tram and is situated in the heart of the region where a vast
number of potential students live.
The lease agreement on ACOT’s premises is a 3 X 3 X 3 and has recently
been renewed for the second of the three years.
2.4
Organisation chart
Members of the Executive
2.4.1 Chief Executive Officer
The position principal responsibility is to ensure that the Chief Operation
Officers are implementing the strategic outcomes agreed by the Executive
Group of which the C.E.O. is chairperson, and in synergy with the Business
Plan of each business i.e. Australian College of Trade and The Thornbury
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Theatre. The long term strategy emanates from the C.E.O. in consultation
with the Executive and the C.E.O. ensures that the agreed budgets are
reviewed monthly, and the performance of each business unit analysed and
evaluated as to its contribution in paying expenses and generating profit.
The position delegates to the Chief Operating Officer for the efficient and
effective management of the day-to-day operations of each business unit.
The position reviews the audits of the training organisation to ensure it is
SNR and ESOS compliant and its scope of registration appropriately
maintained. The position initiates internal quality audits and ensures ACOT
staff participates in external audits relating to SNR and ESOS compliance and
continuous improvement as appropriate.
The position requires highly developed management skills and a
comprehensive knowledge of the vocational education and training system
in order to facilitate client’s achieving their educational and vocational
objectives.
2.4.2 Chief Operating Officer
The position is responsible for planning and controlling the efficient
operations of the training organisation on a day to day basis. This includes
the responsibilities of managing the business development, planning,
marketing and implementing processes to efficiently control and run the
operation. A major part of this involves the recruitment of students and
maintain and effective hands on fee collection system. The position also
manages the internal quality audit process and participates in external
audits relating to SNR and ESOS compliance and continuous improvement.
As the position is central point of contact with regard to ACOT operations, it
is responsible for overseeing the selection and recruitment of suitably
qualified staff as well as the efficient and effective enrolment of clients into
ACOT, in accordance with SNR and ESOS compliance requirements.
The position interacts with a wide and diverse range of clients and demands
initiative and working independently.
In addition the position specifically focuses on managing the curriculum,
trainers and assessors at ACOT. The position is responsible for ensuring and
maintaining SNR and ESOS compliance in all aspects of the delivery of
nationally recognised courses within the organisation.
2.5
Management & ownership
Name of owners:
Details of management &
ownership:
Experience:
ACOT Pty Ltd (50%)
Ozbiz Enterprise Pty Ltd (50%)
Day to day operations of Australian College of Trade Pty Ltd
will be managed by the senior management team with private
shareholders as strategic investors only.
Refer to senior management profiles (Key Personnel 2.6.1 to
2.6.3 below).
Australian College of Trade Pty Ltd
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2.6
Key personnel
2.6.1 Alan Silver
(Dip Ed.; B.Ed.; M.Ed.; B.Ec.) Alan has been involved in senior management
in education and training for more than 30 years, formally the Director of
RMIT International and Head School of Business at RMIT University
Melbourne. His international education career has included appointments as
visiting associate professor at the University of Science and Technology,
Wuhan, China and Director of International Programs, Green River
Community College, Seattle Washington, USA. Alan brings to the company
the unparalleled experience and networks needed for an organisation to
succeed.
2.6.2 Aakash Kumar
3 Year Diploma in Hotel Management, Catering Technology and Applied
nutrition from Institute of Hotel Management, Gwalior India. Certificate III in
Asian Cookery (VETASSESS), Cert III in Commercial Cookery, Advanced
Diploma of Hospitality, Advanced Diploma of Management and Certificate IV
in Workplace Training & Assessment from Melbourne. He has also worked
as a Chef in 5 star International Hotels and Casinos in India and Australia.
Aakash brings operational and administrative experience resulting from
many years of first-hand experience in the hospitality industry and business
management. Aakash has had extensive experience in the international
education area in Australia over the last seven years, holding a variety of
senior positions in RTO’s.
Aakash was the recipient of the South Asian Communities, “Business
excellence Award 2011” in the field of Education.
2.6.3 Rachel Ma
(B.Bus.- International Trade; M.Bus. – Professional Accounting) Rachel has a
strong track record and well developed skills in helping and dealing with
International students and their requirements. This combined with her
strong multicultural communication skills and well developed computer
skills (inc MYOB accounting system) provides ACOT with tremendous
strength in recruiting, nurturing and assisting students whilst understanding
the financial impact on the College of fee collection.
2.6.4 Other staff
All of the other staff will be or have been engaged as per ACOT’s
recruitment policy (which is published on ACOT’s intranet site), sourcing
applications externally where required to ensure that the required skill sets
are achieved.
2.7
Products/services
ACOT currently has a range of Hospitality Programs and Business Management
Programs on scope which are regularly updated on the web site. It is the intention to
minimally offer the Hospitality Programs over the next three years and focus on a
mix of Business Programs and Performing Arts. Each will be developed to appeal to a
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particular market segment as detailed below along with an indicative pricing and
structure.
2.7.1 Business Programs
Upgrade and redesign the existing Business Program to include an
Advanced Diploma of Management and develop new course offerings in
accounting, small business and information technology. This will be done via
our newly appointed Board of Studies.
2.7.2 Performing Arts
As a consequence of the structure and set up of the facility (The Thornbury
Theatre) and the availability of suitable personnel, attached to the live
entertainment venue the development of a performing arts program will be
investigated.
2.7.3 University Business Preparation Program
A one year University Preparation Program specifically designed for clients
to articulate to the second year of an Associate Degree [transfer] at Green
River Community College (GRCC) and to then complete the final two years a
four year US business degree at a number of selected prestige US
universities [1+1+2 program].
ACOT will continue negotiations with a range of educational institutions to
facilitate articulation to a three year Australian degree program with up to
one year credit. The course will be Business in nature and is designed to
appeal to international and Australian students who require additional skills
prior to entering higher education.
The development of this program will be completed in consultation of
experts appointed to the ACOT Board of Studies. It will be a unique product
accredited via ASQA with all intellectual property being retained by ACOT.
3.0 The Market
3.1
Market assessment
The vocational education and training (VET) sector was the strongest performing
sector ranking first on both enrolments and commencements for the calendar year
ending December 2009, having experienced a 33.3% and 25.3% growth in
enrolments and commencements respectively. However 2010 saw a significant
reduction. This was particularly apparent in Public VET Institutions. During 2010 only
3.65% of students in Public VET Institutions were International students.
The VET market is slowly coming out of the slump but is not expected to grow
rapidly as the Government focus appears to be more on the Higher Education
segment where 22.3% of students in 2010 were Internationals.
During 2011 the two largest source countries in the VET sector were India (with
54,958 enrolments) and China (with 18,455 enrolments) accounting for 43% of the
total enrolments. ACOT will direct its recruitment efforts to these two countries.
Australian College of Trade Pty Ltd
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3.2
Market Target
ACOT will be targeting small numbers of international students principally from India
and China, within the VET market. Our aim is to have 100 full time students enrolled
by the end of 2012, building up to 300 full time enrolments by the end of 2014
which amounts to less than 0.04% of the total VET market. Due to the numerically
small target ACOT will also be selective in respect to areas within these countries
that are targeted. Since its inception ACOT has relied heavily on internet based
communication in all facets of the business and will limits it’s targeting to computer
savvy populations of students.
3.3
Environmental/industry analysis
There are a number of external factors that will affect the operating environment of
the organisation including:
3.3.1 Government Policy
Immigration policy together with new policies being implemented by ASQA
is having a major impact on the international student market as well as
existing providers and potential new providers [competitors]
3.3.2 Business Environment
Confusion and fear and uncertainty probably best describe the current RTO
consumer environment. In order to survive and prosper ACOT must ensure
compliance and co operation with government at all levels as well as
working smart and delivering the needs of our students.
3.3.3 International Factors
The high value of the Australian dollar has and will continue to negatively
influence the number of international students coming to Australia. This has
been compounded by the perception of international students offshore of
the safety issues highlighted by attacks on international students in Australia
during 2010 - this is particularly relevant in the Indian market but has also
had a major impact in other markets including China. The recent changes in
immigration policy related specifically to the VET sector are also having a
major negative impact.
3.4
S.W.O.T. analysis
Strengths
• Centre of Excellence concept increases the relevance, value and immediacy of all
ACOT’s training
•
Effective operational structure enables ACOT to respond quickly to shifts in
market needs and trends compared to competitors
•
Credible and experienced Management Team embodies a high level of
confidence in potential students that services will be delivered
•
Unique facility provides a significant point of difference within the market both
as a Training College and as an Entertainment and Event Facility
Australian College of Trade Pty Ltd
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•
Sub Lease Agreement of 3+3+3 years provides secured, comparatively low
infrastructure costs
•
Financial commitment of new shareholder/owners
•
Council approval for education facility of 500+ capacity
•
Strong and supportive working relationship with Landlord
•
Effective Internet and Intranet portals
Weaknesses
• Shrinking markets for international students choosing Australia
•
ACOT’s dependency on overseas students market
•
The significant time associated with developing and implementing strategic
alliances and partnerships with industry
•
Operating in a highly competitive industry of established RTO's
Opportunities
• Capacity to build on connections in Bihar (India) and Kuala Lumpur (Malaysia)
•
Potential Green River Community College [USA] strategic alliance
•
Potential strategic alliances with other RTO's around sharing infrastructure
•
Development of university pathway
•
New product development
Threats
•
Competitors to ACOT – TAFE’s and other RTO’s
•
Changes to Government legislation around the funding of local students and the
requirements for General Skills Migration
•
Loss of key personnel
•
Replication of the Centre of Excellence model by competitors
3.5 Competitors
•
Direct competitors for ACOT are other Private RTO’s and TAFE Colleges
•
TAFE Colleges all potentially offering a combination of similar nationally accredited
courses at various price points
Australian College of Trade Pty Ltd
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•
Because ACOT is located outside the main concentration of providers within the
CBD, geographically speaking it has relatively few direct competitors within its
immediate location
•
The main difficulty ACOT has when competing in the overseas student market is its
lack of corporate profile. However, this lack of brand capital should be overcome in
the longer term through effective marketing which embraces further developing our
long term strategy of positive ‘word of mouth’.
4.0 The Future
4.1
Vision statement
Delivering skills based vocational training within working businesses, ACOT is part of
a new breed of Vocational Education and Training (VET) provider, existing to satisfy
the increasing expectation of business and individual learners, and it is demand
driven, client focused and industry embedded.
4.2
Mission statement
Our mission is to provide quality, compliant education and training to assist
participants gain suitable employment using the skills gained at ACOT
4.3
Goals/objectives
Key performance indicators include annual revenue, quantity of courses offered,
number of Centres of Excellence in operation and total amount of students enrolled.
Within the next 3 years ACOT aims to reach full capacity of 300 full time enrolments,
achieving $2.5 million in annual revenue generated across all study areas, ultimately
realising a net operating profit in excess of $250,000. However we are very aware
the market and market forces remain very volatile. To combat this ACOT has the
flexibility to adjust to a lower capacity should our projections not be realised and still
remain financially viable.
4.4
Action plan
ACOT’s specialised ‘Centres of Excellence’ will deliver customised, nationally
accredited training programs that are focused on providing quality practical
experience within a ‘live enterprise’ environment.
This strategic approach ensures ACOT is uniquely placed to meet the major
challenge facing VET - shifting as much training as possible from campus based
classrooms to the workplace.
This initiative increases the relevance, value and immediacy of all our training and
constitutes our main point of difference within the market.
The quality of our training will be on par with industry leaders but will be priced only
slightly above the market average.
International Marketing will initially be focused on developing representative offices
in Bihar and Kuala Lumpur. They will be supported with various printed materials
and underpinned with a strategic web presence.
Australian College of Trade Pty Ltd
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This targeted approach leverages the significant influence of representative offices
within the target market and focuses our message at the critical point within the
decision making process of potential students.
Australian College of Trade Pty Ltd
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