BSBMKG608 SD Boutique Build Strategic Plan V1.0 (ID 102342)

Reeves College Pty Ltd
ABN 50 605 041 656

Campus and Head Office Address: 14 Railway Pde
BURWOOD NSW 2134 AUSTRALIA
Telephone- +61 451 106 967
Info@reevescollege.edu.au
www.reevescollege.edu.au
RTO Provider Code- 41366
CRICOS Provider Code- 03863F
Strategic & Operational Plan
2016 - 2018
Boutique Build Australia
Doc Name: BSBMKG608 SD Boutique Build Strategic Plan Version: 1.0 Date: 23.08.2020
ABN 50 605 041 656
Telephone- +61 451 106 967
Welcome
Welcome to the very first Strategic Plan for Boutique Build Australia.
This document sets out our vision for the next three years and how we hope to achieve it.
We hope you enjoy reading this document.
CEO
Boutique Build Australia
ABN 50 605 041 656
Telephone- +61 451 106 967
Executive Summary
Established in 2013, Boutique Build Australia is a building company specialising in the design and
build of high quality designer homes for the Sydney metropolitan and surrounding areas.
Our vision to be the best home builder in Australia drives everything we do from the friendly
greeting we give to customers at our display centre to our supplier relationships and to our
employees’ professional development.
Vision
To be the best quality home builder in Australia.
Our values are:
Core values underpinning our activities are:
 Quality
 Innovation
 Leadership
 Respect
 Honesty and Reliability
Strategic Priorities
Key strategies:
To be well led, high performing, profitable and accountable

o Ensure that all financial operations, performance indicators and results support the
strategic policies
o Identify new and expand existing sources of revenue
o Achieve profits of at least 10% per annum.
Build high quality residents to meet customer needs and aspirations
 Increase sales of homes in current Sydney market by 10% per annum over the next three
years.
 Establish a presence in Queensland and build at least 100 new homes in Brisbane and
the Sunshine Coast during the period of the Strategic Plan.
 Research and plan for the launch of new innovative, environmentally friendly homes
Continue building deeper customer relationships

 Customer-centred practice, with a focus on meeting their total needs for a high quality
home
 Strengthen the skills of our people, to better support customers
 Drive innovation to better meet customer demands
ABN 50 605 041 656
Telephone- +61 451 106 967
Attract, engage and develop the best staff

 Continuing the drive to a customer centred, high performance workforce and culture
 Strengthening the skills of our people, to better support customer needs
 Empowering innovation and responsiveness to change
 Continuing to enhance the diversity of our workforce.
Our Operational Objectives
The following table identifies the operational objectives we plan to achieve in pursuit of our strategic
objectives.
Date Priorities Key performance indicator

Employ at least 3 permanent site
June 15 Site staff in place
staff
Commence recruiting for key
Key staff established for Brisbane
July 15 positions in Brisbane and Sunshine
and Sunshine Coast
Coast
Develop and implement work-life Increased employee satisfaction as
August 15
balance programs measured by surveys.
Commence promotions in the
Brisbane and Sunshine Coast market
Oct 15 Presence in Brisbane established
Set up display centre in Brisbane and
Caloundra QLD
All staff performance reviews
conducted using new performance
review system
November 15 Staff performance reviews
Learning and development plans
documented and implemented for all
staff
2016
Develop and implement strategies for
Number of females in company
Jan 16 increasing number of women in the
increased by at least 4 by mid 2016
workplace
Commence design of
March 16 Designs completed
environmentally friendly homes
Commence marketing Build at least 4 environmentally
May 16
environmentally homes friendly homes by the end of 2016
All staff performance reviews
November 15 Staff performance reviews
conducted
2017
Feb 17 Review other potential markets Potential markets explored

Number of women in workforce
Sept 17 Analyse workforce diversity
continuing to increase
Nov 17 Staff performance reviews All staff performance reviews
ABN 50 605 041 656
Telephone- +61 451 106 967
conducted
ABN 50 605 041 656
Telephone- +61 451 106 967
The market
Market characteristics & conditions
The construction industry had been facing a stagnant phase in recent times, however experts
predict a turn around, providing real opportunities in the sector.
Although much of the construction industry is expected to see real growth in the coming 12
months, it is the residential building sector that should experience the most.
The Housing Industry Association (HIA) recently released the summer 2015 edition of its National
Outlook and announced that this year would see a new record of homes commenced.
According to the statistics, a record 195,936 new dwelling commencements are forecast in
2014/15 - a 7.7 per cent growth on the previous year. It is also important to note that this
represents the third year in a row where residential construction has improved - a vital part of the
overall Australian economy.
Although 2014 saw a rise in overall numbers, a significant portion of building approvals never
started- sparking further opportunities when these begin in 2015.
Project Managers, Structures Forepersons and Commercial Contract Administrators will be at the
top of any wish list for construction businesses this year.
Although a number of states are set for an increase, the Sunshine State to experience the most
growth.
The Queensland Government is providing support by offering first home buyer/builder grants as
well as easier procedures for development application approvals.
If you are to compare all the major industries of Australia - construction, manufacturing,

engineering and mining - construction is the only one that is expected to see real growth in the
coming years.
Globally it is expected that the construction industry will grow from $7.2 trillion to over $12 trillion.
The global construction industry has a number of challenges and opportunities according to a
recent report by Global Construction Perspectives and Oxford Economics. A number of factors
are expected to affect outcomes:
 Countries’ decisions with respect to carbon reduction, climate change, waste disposal,
clean technology and renewables?
 Emerging economies in general are expecting large population increases in the coming
decade creating demand for construction activity whereas population growth in
developed countries will be flat.
 Relatively speaking developing countries are expected to grow at 2 to 3% per year and
emerging countries at 6 to 7% per year.
 Emerging countries currently represent about 35% of global construction output and this
is expected to increase to 55% by 2020.
 The key area of construction growth in emerging countries will be infrastructure:
transport, energy, social infrastructure, schools, hospitals, government accommodation,
water, defense infrastructure and natural resources. These projects are expected to
increase by 130% in developing countries by 2020 but by only 20% in developed
countries.
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 Amongst developed countries North America is will see the highest growth rate mostly in
residential construction which will grow at double digits annually. South and Central
America, the Middle East and Africa will grow moderately with Western Europe seeing
the lowest growth.
 Eastern Europe and Russia are expected to expand construction by 100% primarily led
by Poland and Russia by 2020.
 China is expected to become the world’s leading construction market by 2018 with a
construction output of $2.5 trillion.
In the future, trends in technology, particularly information technology (IT), may be the greatest
driver of change in the building and construction industry. Electronic tendering and
documentation, data communication, virtual design, shared project data and databases,
construction automation, and energy management will have a significant impact on industry
practices. Those parties that are slow to react to these trends will have difficulty in remaining
competitive.
Situation Analysis
Strengths Weaknesses
 Value and quality  Focus on Sydney market only
 Strong management  Marketing strategies in their infancy
 Customer loyalty  Brand name not developed as yet
 Friendly organisational culture  High turnover of casual workforce
 Level of available finance for

investment
Opportunities Threats
 Housing sector experiencing growth  Environmental effects
 Potential for growth in Brisbane and  Changes in Industry/ Government

Sunshine Coast markets legislation affecting construction industry
 Innovation in environmental housing  Possible adverse effects of

government policy formulation
 High level of competition
 Predicted uncertainties in the world

economy impacting level of demand for
housing
 Low price competitors
 Failing to satisfy clients demands
ABN 50 605 041 656
Telephone- +61 451 106 967
ABN 50 605 041 656
Telephone- +61 451 106 967
Marketing Strategies
Our marketing strategies aim to:
 build trust,
 generate leads now,
 help to convert those leads quickly, and
 will form the basis of ongoing relationships and referrals.
We plan to develop our market share by:
 Improving our marketing and advertising

 Continually improving the quality of service given to clients
 Maintaining effective communication channels with all stakeholders to ascertain industry
requirements and then develop products and manage services accordingly
 Continually improving communication channels with all our stakeholders, ensuring a flow
of timely and accurate information to facilitate effective planning and decision making
 Targeting identified growth markets with planned, market appropriate campaigns
employing a variety of promotional strategies and advertising mediums
 Offering attractive fee structures to our clients
 Continually improving the skills, knowledge and effectiveness of Boutique Build Australia
through our commitment to training and development
 Regularly reviewing the effectiveness of all our operations and making improvements
when and where necessary
Risk Management
The following section identifies the associated risks in pursuit of our strategic objectives and how
we will deal with them.
Strategic Objectives
1. To be well led, high performing, profitable and accountable

2. Build high quality residents to meet customer needs and aspirations
3. Continue building deeper customer relationships
4. Attract, engage and develop the best staff
Risk Australian government changing policy in relation to industry
 Accepting policy change will be a constant factor to manage

 An understanding of this should be instilled in all staff
 Develop ability to foresee and react quickly to change
 Maintain effective communication channels with stakeholders
 Diversification of source markets
 Develop product range
Related to Strategic Objectives: All
ABN 50 605 041 656
Telephone- +61 451 106 967
Risk Significant drop in cash flow
 Identify operating costs as per future plans and past performance

 Identify available finance available
 Efficient invoicing and debt recovery
 Accurate income projections
 Close monitoring of expenditure
 Arrange overdraft facilities
 Scenario planning
Risk Failure to recruit planned number of clients
 High quality delivery of all services

 Swift reaction to feedback
 Skilled motivated staff
 Attractive fee structures
 Effective market research
 Monitor performance
 Take early corrective action if not meeting targets/ expectations
 Maintaining effective relationships with clients
 Maintaining effective communication channels with all stakeholders
Risk The world recession and the domino effect
 Diversification of target market

 Target markets with strong growth forecasted
 Monitor the economic trends
 Regularly review performance in line with anticipated market conditions
 Develop culture of accepting continual change
 React quickly to change
Related to Strategic Objectives: 1, 2
Risk Over committing resources
 Balance activities with amount of finance available for investment

 Financial planning
 Monitoring of cash flow
 Review invoicing/ debt recovery system
 Swift response to identified issues
 Accessing financial advice
ABN 50 605 041 656
Telephone- +61 451 106 967
Related to Strategic Objectives: 1, 2, 4
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Telephone- +61 451 106 967
Risk Adverse changes in market conditions
 Effective communication channels

 Continuous market research
 Monitor new markets and overall recruitments trends for all market segments
 Develop working knowledge of potential markets
 Networking
Risk Changes to Acts and other relevant legislation
 Emphasis on professional, ethical practices with all stakeholders

 Staff training
 Leading by example
 Policy implementation and monitoring
 Effective communication channels with all stakeholders
 Ability to manage change
 Managing available finance for re-investment
Risk Shortage of/ Difficulty in recruiting appropriate qualified and skilled staff
 Development of HR policies and procedures

 Offer attractive salary package
 Provide opportunities for career progression
 Develop stimulating and enjoyable working environment
 Commitment to training and development
 Commitment to professional development
Related to Strategic Objectives: 5
Risk Failure to meet and manage client’s expectations
 Accurate and timely communication with potential and current clients

 Management of recruitment activities
 Continuous improvement system
 Regularly review learning and teaching approaches, resources, structure and systems
 Client management policies in academic and support services
 Industry liaison
 Reviewing effectiveness of communication channels with clients
 Employing a continuous improvement approach to all operations
 Continuous market research and action
 Systematic feedback on management performance and personal reflection
ABN 50 605 041 656
Telephone- +61 451 106 967
Risk Failure to comply with legislation
 Consistently implement compliant policies and procedures

 Continuous improvement system
 Commitment to training and development
 Systematic review of policies and procedures
 Regular reviews of all operations
Risk Failure to control expenditure
 Effective financial planning and review

 Co-ordination of activities
 Systematic review of practice
 Financial management and control systems
 Facilities management
 Implementation of efficient processes
 Efficient procurement of products and services
 Cost comparisons prior to purchasing
Related to Strategic Objectives: 1, 4
Risk Only providing boutique homes
 Weighting between diversification/ specialisation

 Monitor recruitment trends per market
 Forecasting
 Cost benefit analysis
 Developing reputation for being a specialist in high quality homes
 Developing market share for boutique homes
Risk Ineffective planning
 Experienced management team

 Continuous market research
 Planning system
 Organisation structure and systems
 Regular review of structure, systems and procedures
 External liaison
ABN 50 605 041 656
Telephone- +61 451 106 967
ABN 50 605 041 656
Telephone- +61 451 106 967
Risk Competitors undercutting prices
 Maintain competitive pricing policy

 Monitor competitors prices vs quality
 Regularly review financial management models/ processes
 Continue focusing on quality
 Continue strategy of quality brand promotion
Risk Rate of growth in client numbers
 Systematic review of systems and practice

 Buying in knowledge and skills
 Sourcing reliable market information
 Strategic and operational planning
 Review/ amend management structure
 Develop policies and procedures
 Regular reviews of capacity and operation of all functional and curriculum areas
 Good communication channels with stakeholders
 Recruitment policy
 Finance available for expansion
Related to Strategic Objectives: 1, 2, 3, 4
Risk Unethical/ unprofessional practices of staff
 Staff selection processes

 Staff monitoring systems
 Previous experience of managing staff
 Swift reaction to feedback
 Termination of agreements
 Maintain currency of market recruitment trends
 Maintain relationships with HR organisations
Risk Casual staff team
 Develop database of contract staff

 Employ a permanent team of staff
 Planning for holidays/ leave
 Maintain relationships with HR organisations
 Offer incentivised pay structure for casual staff

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Reeves College Pty Ltd

ABN 50 605 041 656

Strategic & Operational Plan

Boutique Build Australia

We hope you enjoy reading this document.

Our values are:

Core values underpinning our activities are:

To be well led, high performing, profitable and accountable

Build high quality residents to meet customer needs and aspirations

Continue building deeper customer relationships

Attract, engage and develop the best staff

Our Operational Objectives

Date Priorities Key performance indicator

Feb 17 Review other potential markets Potential markets explored

Market characteristics & conditions

If you are to compare all the major industries of Australia - construction, manufacturing,

 Strong management  Marketing strategies in their infancy

 Customer loyalty  Brand name not developed as yet

 Friendly organisational culture  High turnover of casual workforce

 Level of available finance for

 Potential for growth in Brisbane and  Changes in Industry/ Government

 Innovation in environmental housing  Possible adverse effects of

 High level of competition

 Predicted uncertainties in the world

 Low price competitors

 Failing to satisfy clients demands

Our marketing strategies aim to:

We plan to develop our market share by:

 Improving our marketing and advertising

1. To be well led, high performing, profitable and accountable

Risk Australian government changing policy in relation to industry

 Accepting policy change will be a constant factor to manage

Related to Strategic Objectives: All

Risk Significant drop in cash flow

 Identify operating costs as per future plans and past performance

Related to Strategic Objectives: All

Risk Failure to recruit planned number of clients

 High quality delivery of all services

Related to Strategic Objectives: All

Risk The world recession and the domino effect

 Diversification of target market

Related to Strategic Objectives: 1, 2

Risk Over committing resources

 Balance activities with amount of finance available for investment

Related to Strategic Objectives: 1, 2, 4

Risk Adverse changes in market conditions

 Effective communication channels

Related to Strategic Objectives: 1, 2, 4

Risk Changes to Acts and other relevant legislation

 Emphasis on professional, ethical practices with all stakeholders

Related to Strategic Objectives: All

 Development of HR policies and procedures

Related to Strategic Objectives: 5

Risk Failure to meet and manage client’s expectations

 Accurate and timely communication with potential and current clients

Risk Failure to comply with legislation

 Consistently implement compliant policies and procedures

Related to Strategic Objectives: All

Risk Failure to control expenditure