Elements and Performance Criteria

The Range of Variables explains the range of contexts within which the performance and knowledge requirements of this standard may be assessed. The scope of variables chosen in training and assessment may depend on the work situations available.

What data may be gathered and analysed?
Sales data, expected revenues, expenditures, attributable costs, market share figures, trends in consumer purchases, borrowing costs, transport costs and delivery times.

What types of enterprise may be applicable to this standard?
Meat production, dairy sheep, wool production, studs, commercial bulls, export beef, vealer production, feedlot, local beef, store production, mohair, cashmere, cashgora, meat production (including capretto), dairy goat, and studs. Other enterprises may include those engaged in floriculture, production horticulture, cropping, landscaping and wholesale nurseries.

What historical information may be included for enterprise performance analysis?
Rainfall, fertiliser, stocking rates, livestock health records, pasture improvement history, soil tests, maintenance records, financial, enterprise plans and enterprise production records.

What operational structures may be included for review and analysis?
Management process, reporting arrangements, decision-making authorities, financial accounting procedures, promotional activities, and operational resources.

What enterprise strengths and weaknesses may be evaluated?
Recording systems, work practices, attitudes to risk, market profile, debt to equity ratios, asset values, and productivity.

What market conditions may be included for analysis?
Product and service demand, availability of funds, cost of financing, supplier costs, delivery constraints, availability of substitutes and competitors.

What standard financial analysis techniques may be applied?
Cost benefit analysis, 'what if' analyses, time series and trend, expenditure and revenue ratios, break-even analysis, accounting standards and cash flow schedules.

How might a sustainable enterprise be determined?
Sustainable enterprises are economically viable enterprises that may be operated for an indefinite period without degrading natural resources.

What performance indicators may be developed?
Sales targets, revenue estimates, waste reduction, erosion replacement and reversal, environmental sustainability, variable cost ratios, investment returns, and diversification.

What impact of natural conditions may be monitored and anticipated?
Rainfall, soil erosion patterns, salinity, weather patterns (frost, fog), geographical aspect (sun), native vegetation, windbreaks, distance, natural pasture, water supply, and topography.

What sustainable resource practices may be considered by the enterprise?
For example, where applicable, the use of livestock as a part of overall land management, and the integration of a livestock enterprise with other livestock or crop enterprises.

What data may be gathered and analysed?
Sales data, expected revenues, expenditures, attributable costs, market share figures, trends in consumer purchases, borrowing costs, transport costs and delivery times.

What types of enterprise may be applicable to this standard?
Meat production, dairy sheep, wool production, studs, commercial bulls, export beef, vealer production, feedlot, local beef, store production, mohair, cashmere, cashgora, meat production (including capretto), dairy goat, and studs. Other enterprises may include those engaged in floriculture, production horticulture, cropping, landscaping and wholesale nurseries.

What historical information may be included for enterprise performance analysis?
Rainfall, fertiliser, stocking rates, livestock health records, pasture improvement history, soil tests, maintenance records, financial, enterprise plans and enterprise production records.

What operational structures may be included for review and analysis?
Management process, reporting arrangements, decision-making authorities, financial accounting procedures, promotional activities, and operational resources.

What enterprise strengths and weaknesses may be evaluated?
Recording systems, work practices, attitudes to risk, market profile, debt to equity ratios, asset values, and productivity.

What market conditions may be included for analysis?
Product and service demand, availability of funds, cost of financing, supplier costs, delivery constraints, availability of substitutes and competitors.

What standard financial analysis techniques may be applied?
Cost benefit analysis, 'what if' analyses, time series and trend, expenditure and revenue ratios, break-even analysis, accounting standards and cash flow schedules.

How might a sustainable enterprise be determined?
Sustainable enterprises are economically viable enterprises that may be operated for an indefinite period without degrading natural resources.

What performance indicators may be developed?
Sales targets, revenue estimates, waste reduction, erosion replacement and reversal, environmental sustainability, variable cost ratios, investment returns, and diversification.

What impact of natural conditions may be monitored and anticipated?
Rainfall, soil erosion patterns, salinity, weather patterns (frost, fog), geographical aspect (sun), native vegetation, windbreaks, distance, natural pasture, water supply, and topography.

What sustainable resource practices may be considered by the enterprise?
For example, where applicable, the use of livestock as a part of overall land management, and the integration of a livestock enterprise with other livestock or crop enterprises.

What evidence is required to demonstrate competence for this standard as a whole?
Competence to select the type of enterprise requires evidence that the candidate can research, collate and manipulate business data in order to develop and present an image of the operations of rural businesses. Evidence must be demonstrated in forecasting and estimating resource use and determining opportunity costs. The candidate must be able to identify and track the effects of natural conditions on economic performance. The skills and knowledge required must be transferable to a different work environment. For example, the capacity to review performance indicators in this context will support the ability to identify performance indicators in other contexts, e.g. in evaluating the success of a marketing plan.
What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this competency standard are listed below:

rates of return for products and/or services
financial analysis techniques
structure and operation of small businesses
relevant State/Territory OHS legislative requirements
environmental conditions, positive environmental practices and negative impact minimisation measures
human resource requirements for the enterprise
transport requirements for the enterprise
enterprise/property improvement requirements.

In addition, where applicable to the activities of the enterprise:

market performance in commodities
statutory marketing requirements
regulations related to exports of Australian agricultural products
animal husbandry.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, appropriate literacy and numeracy levels as well as some complementary skills are required. These include the ability to:

analyse market requirements
match the enterprise to resources
set enterprise objectives and make financial and economic determinations
monitor and manage resources (human, physical, environmental)
evaluate land capability and natural resources(where applicable to the enterprise)
research, analyse and evaluate enterprise information and requirements
communicate orally to present information to and negotiate with management or clients
document plans and write reports
calculate and forecast financial and economic data.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

What specific knowledge is needed to achieve the performance criteria?

Knowledge and understanding are essential to apply this standard in the workplace, to transfer the skills to other contexts, and to deal with unplanned events. The knowledge requirements for this competency standard are listed below:

rates of return for products and/or services
financial analysis techniques
structure and operation of small businesses
relevant State/Territory OHS legislative requirements
environmental conditions, positive environmental practices and negative impact minimisation measures
human resource requirements for the enterprise
transport requirements for the enterprise
enterprise/property improvement requirements.

In addition, where applicable to the activities of the enterprise:

market performance in commodities
statutory marketing requirements
regulations related to exports of Australian agricultural products
animal husbandry.

What specific skills are needed to achieve the performance criteria?

To achieve the performance criteria, appropriate literacy and numeracy levels as well as some complementary skills are required. These include the ability to:

analyse market requirements
match the enterprise to resources
set enterprise objectives and make financial and economic determinations
monitor and manage resources (human, physical, environmental)
evaluate land capability and natural resources(where applicable to the enterprise)
research, analyse and evaluate enterprise information and requirements
communicate orally to present information to and negotiate with management or clients
document plans and write reports
calculate and forecast financial and economic data.

Are there other competency standards that could be assessed with this one?
This competency standard

Essential Assessment Information
There is essential information about

There are a number of processes that are learnt throughout work and life, which are required in all jobs. They are fundamental processes and generally transferable to other work functions. Some of these are covered by the key competencies, although others may be added. The questions below highlight how these processes are applied in this competency standard. Following each question a number in brackets indicates the level to which the key competency needs to be demonstrated where 0 = not required, 1 = perform the process, 2 = perform and administer the process and 3 = perform, administer and design the process.
Communicating ideas and information
Information about the enterprises performance may need to be explained to other persons. (3)

Communicating ideas and information
Information about the enterprises performance may need to be explained to other persons. (3)

Collecting analysing and organising information
Data used to evaluate the enterprises performance may need to be collated and recorded for analysis and organised in reports. (3)

Collecting analysing and organising information
Data used to evaluate the enterprises performance may need to be collated and recorded for analysis and organised in reports. (3)

Planning and organising activities
Specific analyses may need to be scheduled in tandem with related activities, e.g. raising of equity may commence at the same time as the performance evaluation. (3)

Planning and organising activities
Specific analyses may need to be scheduled in tandem with related activities, e.g. raising of equity may commence at the same time as the performance evaluation. (3)

Working with others and in teams
The assessment of the enterprise may need input and advice from others. (3)

Working with others and in teams
The assessment of the enterprise may need input and advice from others. (3)

Using mathematical ideas and techniques
Estimation techniques may be necessary to determine returns expected from sales. (3)

Using mathematical ideas and techniques
Estimation techniques may be necessary to determine returns expected from sales. (3)

Solving problems
Problems may arise that need to be addressed through adjustments to resources or timetables. (3)

Solving problems
Problems may arise that need to be addressed through adjustments to resources or timetables. (3)

Using technology
Technology may be used to monitor and to record and distribute the benefits. (3)

Using technology
Technology may be used to monitor and to record and distribute the benefits. (3)