UNIT 20 business health check

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Unit 20:
Unit code: QCF level: Credit value:
Business Health Check
M/601/1749 5 15


This unit enables learners to gain understanding of the focuses of the business, gain skills to develop plans, and evaluate and develop management and staff skills.
Segmentation, Targeting and Positioning
Unit abstract

This unit introduces learners to the process of carrying out a business health check. Learners will study how techniques can be applied to track the progress of a business and amend its direction depending on what is happening inside and outside the business at any time. Learners will consider issues such as turnover, profitability, sales and marketing, customer and employee satisfaction, quality of products or services, productivity and product development. They will also take into account the interests of stakeholders, such as owners, customers, staff, backers and suppliers. Learners will also develop techniques to review management and staffing skills and enable them to respond to new challenges. Learners must ensure that their evidence relates to the hospitality industry.

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Unit content

1. Understand the focuses of the business Focuses: current positioning of business, priorities, successes, distracters, current/future aims (short-, medium- and long-term), strengths and weaknesses, stakeholders, sources of advice and guidance, potential for business improvement Factors impacting on the business: external, internal, resources, opportunities, threats

2. Be able to develop plans for businesses Review: areas eg products/services, marketing, sales, finances, staffing; effectiveness, overall business performance, business image, record keeping Business planning: forecasting eg for marketing and sales, design, productivity, quality, service, financial management systems; roles and responsibilities of staff and management, performance monitoring, laws and regulations (including updating), action planning, timescales, risk assessment, appropriate sources of advice, relevant information, information handling and administration

3. Be able to evaluate and develop skills of management and staff Evaluate: monitor performance to include current experience, skills and abilities (technical, operational, managerial); effect of current performance on the business, assess targets set, other relevant information, make informed judgements Planning and development: assessing re-skilling/up-skilling needs, setting clear targets, linking skills targets to business targets, advice and training, costs/benefits analysis Support and advice: free and paid-for help, personal contacts, networks, fees, limitations of advice and support, record keeping

Learning outcomes and assessment criteria

Learning outcomes
Understand the focuses of the business Be able to develop plans for businesses Be able to evaluate and develop skills of management and staff.

On successful completion of this unit a learner will:
Assessment criteria for pass
LO1 Understand the focuses of the business
The learner can:
1.1 analyse the objectives of the business
1.2 explain factors that impact on the business
1.3 determine potential improvements to the business organisation and/or operation

LO2 Be able to develop plans for businesses

2.1 review the effectiveness of the business
2.2 develop plans to improve the business, justifying their value
3.1 evaluate the current skills of management and staff
3.2 devise and justify plans for the development of skills for management and staff

LO3 Be able to evaluate and develop skills of management and staff


This unit has links with a number of other units within this qualification. Tutors and learners should take into consideration the core operation of the business being investigated and ensure that links with other relevant units are reflected in their work. This unit maps to the following Management NVQ units:

B1: Develop and implement operational plans for your area of responsibility
B2: Map the environment in which your organisation operates
 B5: Provide leadership for your team B6: Provide leadership in your area of responsibility
B11: Promote diversity in your area of responsibility
C1: Encourage innovation in your team
C2: Encourage innovation in your area of responsibility.

Essential requirements
Business priorities will vary and discussion groups will enable learners to consider a broad range of issues. In reviewing a business in order to develop plans, tutors will choose for learners group to work as a whole unit to support an existing business, or to use a case study. It is important to understand the development of health-check processes as the outcome of this unit. Capacity is limited by the time frame for delivering and assessing the unit and a wider coverage can be achieved through a group effort. Learners need to understand the range of support and help they can utilise when carrying out a business health check. Sources of advice and guidance learners will explore include business associates, business advice centres, business advisers, counsellors, coaches or mentors, specialist consultants, non-executive directors, accountants and other professionals.

Employer engagement and vocational contexts

Evidence should be gathered where possible from links with local business organisations willing to support the delivery of this unit. Learners must respect the confidential nature of data and other business-orientated information generated by their investigations. A clear policy statement from the centre reflecting this may encourage local industry to support both delivery and the generation of appropriate evidence. Learners must have access to a range of local business operations that are willing to co-operate with delivery and assessment, in return for practical guidance through the outcome of learners’ work. This should be supported by case studies used to illustrate theoretical points and issues, together with current cuttings and reports from the business press, which will contribute to vocational realism. Tutors should also establish relationships with business consultants and other providers of business support. This can be delivered to learners either as stand-alone presentations of business practice, or as part of a real business health check being provided for a local organisation.
Business research proposal