Unit of competency Outline

Date retreived
22/07/2026 5:43 AM AWST

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Analyse business performance

Analyse business performance

Unit of competency
National Code
AHCAGB604A
State Code
D6645
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/06/2011
View on TGA
State Implementation and Classification
Approved Date
13/12/2011
Field of Education
080301 - Business Management
Original Release Date
13/12/2011
Nominal Hours
50
Description
This unit covers the process of analysing business performance for an agricultural or horticultural enterprise and defines the standard required to: analyse financial reports; use financial analysis tools; identify profit drivers for the enterprise; benchmark business performance against other businesses; and develop strategies for improving business performance.
Notes
Elements and Performance Criteria
1. Analyse financial reports
  • 1.1. Taxation reports are correctly interpreted and accounts are determined to be true and fair.
  • 1.2. Management reports generated by the enterprise are reviewed and interpreted.
  • 1.3. Distribution of profit is determined.
2. Use financial analysis tools
  • 2.1. Gross margins and relevant breakdowns of profit and loss are calculated.
  • 2.2. Ratios related to production activity, solvency and liquidity, gearing and profitability are calculated.
  • 2.3. Relevant performance benchmarks are sourced and compared to the enterprise.
  • 2.4. Trends in production and profitability are identified and analysed.
3. Identify opportunities for increasing profit
  • 3.1. Yield/production potential is assessed and current position determined.
  • 3.2. Key issues related to production efficiency are identified.
  • 3.3. Key issues related to market return are identified.
4. Develop strategies for improving business performance
  • 4.1. Strengths, Weaknesses, Opportunities and Threats (SWOT) approach is used to determine possible strategies for addressing production and marketing issues.
  • 4.2. Sensitivity analyses are performed to evaluate strategies.
RANGE STATEMENT
The range statement relates to the unit of competency as a whole.
Financial analysis tools and reporting systems applied may include:
the range of primary production and related business activities.
EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
The evidence required to demonstrate competency in this unit must be relevant to workplace operations and satisfy holistically all of the requirements of the performance criteria and required skills and knowledge and include achievement of the following:
analyse financial reports
use financial analysis tools
identify profit drivers for the enterprise
benchmark business performance against other businesses
develop strategies for improving business performance.
Context of and specific resources for assessment
Competency requires the application of work practices under work conditions. Selection and use of resources for some worksites may differ due to the regional or enterprise circumstances.
Replaces
State Code National Code Title Type
S3385 RTE6901A Analyse business performance Unit of competency
Replaced By
State Code National Code Title Type
BAR16 AHCAGB604 Analyse business performance Unit of competency