BSBTEC601 - Review organisational digital strategy

Task 2 – Written Report

IH Sydney Training Services Pty Ltd

RTO Code: 91109 CRICOS Code: 02623G
Task summary
This assessment is to be completed using the Bounce Fitness simulated work environment.
There are four parts to this assessment:
Part A requires you to develop a digital strategy review plan (using Appendix A)
Part B requires you to collect and analyse the information (using Appendix A)
Part C requires to determine review findings and outcomes (using Appendix B)
Part D: requires you to distribute outcomes and document recommendations of review (using
Appendix C)

Required
 Access to textbooks/other learning materials
 Access to Bounce Fitness site via Canvas
 Computer with Microsoft Office and internet access

Timing
 Your assessor will advise you of the due date of this assessment via Canvas.

Submit
 This completed workbook.

Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily
address all the assessment criteria. If part of this task is not satisfactorily completed, you will be asked
to complete further assessment to demonstrate competence.

Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you
have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory
performance. Re-assessment attempt(s) will be arranged at a later time and date.

You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt
with unfairly or have other appropriate grounds for an appeal.

You are encouraged to consult with the assessor prior to attempting this task if you do not understand
any part of this task or if you have any learning issues or needs that may hinder you when attempting
any part of the assessment.

Assessment Cover Sheet

Candidate name:

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 Candidate ID

Trainer’s Name:

Date Submitted:

Candidate I declare that:

declaration:  I have read and understood all the information provided in relation to
the assessment requirements to complete this unit, the instructions
and the purpose and processes of undertaking this assessment task
 This assessment is my own work and where other’s works or ideas have
been used, I have appropriately referenced or acknowledged them
 I understand that plagiarism is a serious offence that may lead to
disciplinary action.

Candidate signature:

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 Task 2 – Written Report
Case Study: Bounce Fitness Group
Bounce Fitness Company has now accepted that increasing their cash flow is important for
sustained growth and to support a wider strategic goal of global market penetration. To this
end they are looking to move further on their customer engagement strategy by exploring
the potential revenue opportunities within their digital space (website and Facebook). As
you have already explored social media, including paid, owned, and earned media as well as
the user experience project around improving the usability of their digital assets. You have
also highlighted a potential new eBusiness product ‘Micro-Loans”; the Board of Directors
feels you are best placed to offer advice in this matter.

You have been asked to research the opportunities to turn their online presence into a
revenue stream generating $1 million in profit in the first year. You are also instructed to act
on behalf of Bounce Fitness Company to explore merchant accounts and payment facilities
with financial institutions to support the digital strategy.

The project will include:

1. Research and develop a digital proposal; and
2. Negotiate a Merchant Account and Payment Gateway with a financial institution.

The Board of Directors have forecasted the following Key Performance Indicators (KPIs)
for the digital strategy:

 Average $ sale per microloan: $1000

 Gross Profit Margin: 15%
 Conversion Rate: 0.12%

In addition to the relevant organisational policies and procedures contained on the Bounce
Fitness simulated website, Case Study Organisation resources folder in Canvas and the
background information about this topic you have learned throughout your term, there are a
range of other documents and templates found in the Appendix section of this document to
assist you complete the tasks.

Part A - Digital strategy review plan

For this task, Bounce Fitness company has asked you to design a way forward on setting up a payment
facility for their products page on their website. Bounce Fitness requires you to conduct some research
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and provide them a digital strategy proposal they can review at the next Board meeting. You will be
required to present your research findings using the Appendix A Digital Strategy Review Template.

You will find it useful to refer to the learning and activities in this module as they have sufficiently
prepared you for this assessment task. You will also need to conduct some more research for certain
areas of this proposal.

Important Note: To assist you, we have outlined each section of your digital strategy plan and the
information you must include in each below. You should also include a title page, table of contents,
introduction, and references in your plan.
1 Channel Analysis (100 words)
By way of introduction to your proposal, prepare a convincing argument that outlines the opportunities
for monetisation of the digital channel for Micro-Loans for Bounce Fitness.
Access Bounce Fitness various policies, procedures and review the course materials to determine which
three of the following reasons are the most compelling (and why).
• Create new revenue streams for Bounce Fitness and therefore improve Cash flow
• Increased reach for a fitness business – taking advantage of global connectivity by reaching
customers located outside Bounce Fitness geographic target
• Offer new solutions to customer needs
• Increase ROI on the Digital Channel
• Increase customer engagement
• Sell more products and services

1-Incraese ROI on the Digital channel:

Once we start measuring our digital marketing ROI, we can begin to look for areas of improvement. The first
step in measuring and improving our digital marketing return on investment is identifying clear goals that
allows us to achieve objective results.
2-Increase Customer Engagement:
Customer engagement benefits buyers and suppliers alike by increasing close rates while meeting current
B2B customer expectations. More customer interactions lead buyers to find their brand more valuable and
provide them with customer insights.
3- Create new revenue streams for Bounce Fitness and therefore improve Cash flow
Having multiple streams of income from our small business can help boost our profits and cushion against
losses during slow seasons. Diversification of revenues provides financial stability for our company, reduces
business risk and makes our business infinitely more marketable when it comes time to sell. Diversification
can be number of customers, geography of customers, and product offering.

1.1 Channel Strategy – The Monetization for Bounce Fitness (50 words)
Articulate the existing and proposed addition to Bounce Fitness channel strategy. Identify at least one
potential digital channel from the list below and give reasons for the consideration. You may want to
consider devices in your answer.
 Company website

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  Facebook
 Instagram
 EBay
 Fishpond
 Other social sites or intermediary (you must research and provide information)
 Devices (e.g., mobile, tablet, smart watches, PDAs, etc.)

1-Instagram:
Instagram stories is a way to get more direct with our audience, and, thanks to updates such as being able to
mention accounts, add stickers, and stoppable tags, it's also become a great way to promote products. Using
Instagram to test what resonates with our audience visually will help us develop our branding across the
board, and we can incorporate the imagery we use on Instagram into our other marketing channels, such as
our blog and email newsletters.

1.2 Digital Marketing Considerations (100 words)

What Digital Marketing considerations exist? Include an assessment of paid, owned, and earned
engagement opportunities for the new micro-loans business idea and ideally the role each of these
including the opportunity you identify to enhance the monetization of the digital channel for Bounce
Fitness Company.

Digital marketing can be broadly broken into 7 main categories which includes, Search Engine
Optimization, Pay-per-Click, Social Media Marketing, Content Marketing, Email Marketing, Mobile
Marketing, Marketing Analytics. Affiliate marketing means we get paid for every referral we make to
another company. When we add affiliate links to our website, we’ll receive a commission from each
person that clicks our affiliate link. Sponsored guest posts can bring us a steady source of revenue.
Adding a search box to our website can give an extra source of revenue. When we use a monetized
search box, we earn a commission every time the person conducts a search.

1.3 Bounce Fitness Digital Ecosystem (100 words)

Consider the elements of a Digital Ecosystem from the course materials and prepare a discussion around
Bounce Fitness Group’s Digital Ecosystem. Consider in your answer:
 How the monetisation of the Digital Channel may impact Digital Content, Customer Contact
Management, Social Media, and Digital Marketing.
 The date and time when the digital strategy review plan was shared with stakeholders.
 The date when the plan was approved.
Date and time of sharing plan with stakeholders XX-XX-2021

The media industry was among the first affected by digitization, because digital technologies have changed
content production, distribution, and consumption profoundly. The effect of online content monetization
strategies across media products and their online and offline channels While studies in the context of news
content exist, IS research could examine the applicability of digital paywalls beyond this type of content.
Besides the individualization of the paywall solution’s configuration and classification of the content
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 providers’ offer, ML can also be used to optimize communication strategies (e.g., personalized newsletters), to
engage customers by improving the audience’s website experience.

Date when plan was approved XX-XX-2021

2 Part B - Review Prior Experience

2.1.1 Internal Research – ROI on Existing Sales (50 words)
Calculate the ROI of Bounce Fitness Group’s Marketing Activity for microloans using the formula
covered in this course (you must show your working out). Compare your answer to the ROI for the
broader business. You should refer to the financial reports for Bounce Fitness as well as the information
in this module.

The rule of thumb for marketing ROI is typically a 5:1 ratio, with exceptional ROI being considered
at around a 10:1 ratio. Anything below a 2:1 ratio is considered not profitable, as the costs to produce
and distribute goods/services often mean organizations will break even with them spend and returns.

2.1.2 Internal Research – Review Site Analytics (50 words)

Outline your approach to Site Analytics for Bounce Fitness. Include how Analytics can be accessed and
what the reports can provide.

Access Analytics is a friendly monitoring solution which makes it easy to detect new issues that emerge and discover
important patterns or trends. Access Analytics lets you easily zero in on the critical areas so you can save precious time
and plan more efficiently. Get the most out of manually-intensive efforts by focusing on high-traffic pages, sections with
known issues, or any regressing areas.

2.1.3 Internal Research – Review Inventory Management (100 words)

What approach would be appropriate for the management of inventory of fitness product stock
availability. How does this approach cater for peak periods of customer purchasing which is expected
with online payment facilities? Include in your answer what brand and financial risks become apparent
here.

First-In, First Out (FIFO):

FIFO often results in a lower cost of goods sold number because older items generally carry a lower cost than items
purchased more recently, due to potential price increases. With a lower cost of good sold number, we can have higher
profits.
Last-In, First Out (LIFO):
On the other end of the spectrum, we have last-in, first out (LIFO). This inventory management method assumes the most
recently acquired product is also the first to be sold, and the most recent pricing is used to determine the value of the
merchandise that has been sold.

2.1.4 Internal Research – Review Resource Management (50 words)

How does monetization of digital channels impact our human capital (employees)? Does this strategy
require more staff? Less staff? Staff with different skill sets? What are the impacts on other teams such
as operations, customer service, finance, marketing, and product buying teams?

Social media allows people to freely interact with others and offers multiple ways for marketers to reach and
engage with consumers. Considering the numerous ways social media affects individuals and businesses alike.
It requires staff with multiple skills because they can control multiple things at a time.
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 2.1.5 Internal Research – Review Cash Flow (50 words)
Does Bounce Fitness have the liquidity to handle seasonal peaks and troughs in online
purchases? What KPI in this monetization strategy will work towards offsetting the initial
costs incurred for this strategy?

 Good business routines improve liquidity:

When one has set up good daily business routines, make sure they keep them up.
This will give them a good overview of their payments and actual cash position.
 Do invoicing as soon as possible
The faster one send their invoices, the sooner they will be paid.
 Talk to suppliers
 Deploy automated processes
With e-invoicing one can make sure that his invoices and reminders are sent in no
time.

2.2 Conduct External Research

2.2.1 External Research – Competitive Intelligence (50 words)
Who will our competitors be in the micro-loan market? What sources of information can we tap into to
remain abreast of competitive information like this?

Annual reports produced by competitors. Observing competitor activity. News about competitors on
the TV or in newspapers and magazines. Asking people using competitor products and services for
their views about the competitor.

2.2.2 External Research – Research Partners (50 words)

Identify three sources of research information which could help Bounce Fitness in the analysis and
ongoing development of the micro-loan business and that market segment generally.
Bank lending is the most common source of external finance for numerous SMEs and entrepreneurs,
which are often heavily reliant on traditional debt to fulfil their start-up, cash flow and investment
needs. Capital gaps also exist for companies undertaking important transitions in their activities, such
as ownership and control changes, as well as for SMEs seeking to de-leverage and improve their
capital structures.

2.2.3 Legal Considerations and Organisational Policy (100 words)

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What are Bounce Fitness Transaction Obligations, Service Obligations, Marketing Obligations, Privacy
Obligations in relation to this monetization project? Identify issues related to digital strategy in the
organisational documents accessed. Consider the World Wide Web Consortium (WC3) – what
considerations should Bounce Fitness’s organisational policies and procedures have in this regard?

2.3 Identify Potential issues or barriers to Streamlined Transactions (100 words)

What are three issues to streamlined transactions and how could Bounce Fitness overcome them?

There is broad consensus that access to a transaction account can help people better manage their life and plan
for emergencies. In every organization, there is a likelihood that there are several activities that are repetitive
and tedious leading to ennui and wastage of time. Unless these tasks are identified and a way is found to
automate these tasks and processes, there could be a lot of skill and time wastage. The language and means of
communication can be a barrier to streamlining operations. The need for a unified approach that enables us to
publish the content in multiple languages can be a big asset.

2.4 Benchmarking
2.4.1 SEO (100 words)
Using Google Keywords Planner Tool, locate high and low performing search terms for a micro-loans
business. Identify long tail search terms (including number of searches per month, and competitiveness
of each term as high or low). Are there any terms that could be a Key Opportunity for Bounce Fitness?
You should include a screen shot of your keywords report.

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 2.4.2 Engagement (100 words)
Conduct an assessment on the current customer engagement using these methods:
1. Time spent on website and significant landing pages
2. Time spent on social media
3. Customers responses to posts, infographics, videos, and other content
4. Rates of customers sharing, tweeting and general social involvement
5. Sales opportunities
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Include in your answer the concept of ‘social listening’. How can this be incorporated into
benchmarking engagement and are there any social listening tools that you recommend?

Best Social Media Listening and Tracking Tools

 HubSpot Social Media Management Software: We can handle all of our social accounts
from the tool as well as easily turn our content offers into social posts. With HubSpot, we
don't need to worry about logging into our social profiles to post content rather, we can
schedule posts weeks in advance on all of our profiles from within the tool to free up valuable
time.
 Sprout Social: Sprout Social is a comprehensive social media management platform that
provides powerful solutions for social listening and analytics, customer care, and employee
advocacy.
 Falcon.io:
The software has capabilities related to scheduling, engaging, social listening, publishing,
advertising, and analysing all aspects of our social media strategy. The platform makes it easy
to segment and target your customers for customized social campaigns.

2.4.3 Existing Website Traffic (30 words)

What approach to website traffic tracking and management would be appropriate for this monetization
strategy? What key data points would be applicable (e.g., repeat visitors etc.)? Is this an opportunity to
increase geographical reach (how and why)?

Here are 11 proven ways to monetization:

 Experiment with affiliate marketing.

 Create and sell a product (digital or physical)
 Start a paid membership website.
 Monetize access to your email list.
 Publish sponsored posts and product reviews.
 Gate some of your content.
 Accept donations.
 Monetize your expertise.

2.4.4 Establish KPIs (150 words)

When generating sales online, what are the 5 Important Considerations? How is this linked to
Optimisation and provide an example based on the known criteria of $1Million profit?

 Build brand’s awareness:

Use the full force of digital marketing to get people to our site but then make sure it is VERY easy for
people to add to cart, the more buttons or steps it takes to checkout, the more likely people are to
abandon their cart.
 Build email lists and use email marketing to stay engaged:
It’s time to take control of our email marketing to truly nurture our leads and retain more customers.
Use it to build a relationship with your customers. Another benefit of having an email list of relevant
leads is that it supports repeat purchases.
 Meet customers where they are on social media:

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 Use what we call the “ad stacking method,” which is a heavy focus on segmenting every single visitor
based on actions they do or don’t take on our ecommerce store and then placing the right message in
front of them at the right time based on where they are in the conversation, AKA our marketing funnel.

3 Development Plan (Select & Implement Tools and Technologies)

3.1 Organisational Impact
3.1.1 An Agile Team (150 words)
Is there a need for an Agile approach? Explain Agile methodologies as they impact marketers. What are
the benefits? Include the key benefits of taking an Agile approach over a Waterfall approach.

The Agile methodology is a way to manage a project by breaking it up into several phases. It involves constant
collaboration with stakeholders and continuous improvement at every stage. Once the work begins, teams cycle
through a process of planning, executing, and evaluating. Continuous collaboration is vital, both with team
members and project stakeholders.
Agile separates a project into sprints; Waterfall divides a project into phases. Agile helps complete many small projects;
Waterfall helps complete one single project. Agile introduces a product mindset with a focus on customer satisfaction;
Waterfall focuses on successful project delivery. Agile projects are typically inexpensive and can be delivered quickly.
They offer greater flexibility, but also produce less predictable results due to the uncertainty and unclear nature of many of
the project characteristics. Waterfall projects are typically more expensive and take longer to deliver. Agile methodology
is more flexible, product get to market faster, results in better communication.

3.2 Development Plan

3.2.1 Customer Trust (100 words)
What is customer trust in this project and why is it important? What are three consumer recommended
approaches to building trust? Are there any specific KPIs relating to retention and loyalty that could be
considered important?

When businesses build trust, they allow customer evangelists ready to advocate their business. It’s
simple enough no trust equals no customers. The reality is consumers have options. This means that
it’s going to take more than a marketing strategy focused on generating customers. Businesses need to
understand how they can establish trust with their customers. Keeping a competitive edge is often a
challenge for businesses. The market is continuously changing. Most companies work to keep up with
new trends to stay ahead. This makes it difficult to know what works and what’s a waste of time.
But keeping an advantage is not as difficult as you might think. In today’s digital economy, trust is a
must-have for consumers and the best way to capture their attention.

3.2.2 Ensuring Sales Success (100 words)

What are three methods for improving point-of-sale content with the purpose of closing the sale in the
context of Bounce Fitness? What highlights can you draw upon from the existing Bounce Fitness? Is the
website customer-centric (why)?

The way consumers make purchasing decisions is constantly changing, so it's important to continually
re-evaluate our sales strategy. Knowing the decision maker is crucial to a quick close. Many times the

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 decision makers will send someone else into the fire to learn all of the information they can about our
company. If this is the case, be sure to put yourself into the head of the decision maker so that one can
customize his sales pitch to that person's interests, even if they aren't there. A client can sense if we
are being genuine during the sales process. In other words, it's important to convey to the client that
we care about their business and not just the deal.

3.2.3 Content Strategy (150 words)

What recommendations do you have regarding content strategy as it relates to this monetization
strategy? Should it be its own project or strategy or part of this project? How does content strategy
planning affect transaction enablement in this monetization project? Can you provide a short example of
a Content Plan? You may need to conduct some research to complete this section.

Content marketing focuses on creating valuable content to acquire more customers, while content
monetization, on the other hand, has the goal of profiting from them. It gives publishers and content
creators the possibility of earning money from the content they create. So, monetization can give us a
way to profit even if we are not selling our content. Content should be original and different from
other options available for our audience. The uniqueness will help us rank higher in search engines,
give our audience more value and increase their engagement. Content strategy is the high-level
planning, execution, promotion, and on-going management of the content lifecycle to support key
business initiatives. More importantly, understanding the customer journey helps us empathize with
our audience. This ensures that we solve the right pain points, not just the ones we think are most
important.

3.2.4 Project Plan (50 words)

Using a simple excel spreadsheet, develop a Website Development Plan with a timeline on Bounce
Fitness website development in line with this monetization strategy. You may need to conduct some
research to complete this section.

 The free app with subscription model.

 The paid app model.

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  The partnership model.

 The free app with in-app purchases model.

3.2.5 Testing and Stabilisation Plan (50 words)

Outline your approach to Alpha/Beta Testing (A/B Testing). Include in your answer at least three
common errors that impede sales.

Alpha Testing is a type of software testing performed to identify bugs before releasing the product to real users
or to the public. As a consequence of sampling errors, statistical significance tests sometimes yield erroneous
outcomes. Specifically, two errors may occur in hypothesis tests, Alpha error occurs when the null hypothesis
is erroneously rejected, and beta error occurs when the null hypothesis is wrongly retained.

3.3 Transaction Enablement Partners (100 words)

Draw a flow chart/schematic showing the user journey and process between the customer and ETG for
online purchase. Ensure you include the following elements:
 Customer
 Order process
 Online store
 Payment Gateway
 Payment Processor
 Bank
 Merchant (Bounce Fitness)

Business-to-consumer (B2C) electronic commerce (e-commerce) allows customers to directly buy

goods and services from online retailers over the Internet. E-commerce technologies help companies
expand their marketplace by enabling them rapidly, easily, and cost-efficiently to locate not only more
customers but also the best contractors and the most suitable business partners both nationally and
internationally.

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 3.3.1 Payment Gateway (100 words)
Drawing from your ‘Compare Payment Gateway’ activity in this module, what is your recommendation
for a particular payment gateway product? Include in your answer a comparison table such as that in
your learning materials. As well as a rationale of why you selected that payment gateway product.

Features PayPal PayPal Pro

Monthly Fees $0 $25

Transaction Fees $2.9% + 30¢ $2.9% + 30¢

Countries 203 3
Currencies 25 23
Card Types 9 9
Limits $10,000 None
Form payments 
Recurring Billing  
Mobile Payments  
PSD2 Compliant  
PayPal is more suitable payment gateway.

3.3.2 Financial Institution (50 words)

Conduct some research on Merchant Accounts taking into consideration:
 Volume Commitments
 Contract Terms
 Settlement Terms
 EFTPOS considerations
 Interchange rates and fees
And how all these relate to sales volume of Bounce Fitness company.

A merchant account is a type of business bank account that allows a business to accept and process
electronic payment card transactions. Merchant accounts require a business to partner with a merchant
acquiring bank who facilitates all communications in an electronic payment transaction.
a contract with a volume commitment stipulation requires us to process a specified amount of money
each month through our merchant services accounts.

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 3.3.3 eCommerce Platform (150 words)
Conduct some research on eCommerce vendors. Provide a short evaluation of the platforms available
and select one that is suitable to large enterprises like Bounce Fitness. Outline why this is suitable to
Bounce Fitness’s monetization project.

Using a multi-vendor marketplace is a great way to manage all aspects of the website. We can manage
products, vendors, and commissions right from the dashboard without involving our developer or
every minor adjustment.
 Dokan Woo Commerce Plugin:
Dokan is a popular Woo Commerce multi-vendor plugin that’s optimized and ready to launch
your online ecommerce store. It offers features like front-end and product dashboard. We also
get the added advantage of having a vendor rating feedback system that’s similar to the style
used by eBay.
Pricing Plans:
 Basic: Free
 Starter: $149/Year
 Professional: $249/Year
 Business: $499/Year
 Enterprise: $999/Year

 Mayosis WordPress Marketplace:

To sell items such as arts, templates, music, eBooks, stock photographs/footage, themes,
plugins, codes, or software this is a great place to start with. Mayosis WordPress marketplace
helps create a unique user experience with the latitude to customize, organize, sell the
products/services that are aligned with our business goal.
Pricing Plan:
 Free Trial
 Regular Plan: $67/Year
 Extended Plan: $1990/Year

3.3.4 Authentication & Security Considerations (100 words)

Explain authentication and security requirements and why is it important factor to the monetization of
Bounce Fitness’s digital channels? Specify the authentication and security requirements for the Payment
Gateway you selected.

Security best practices for PayPal integrations:

The SSL/TLS protocols are the basis for secure communications on the web. They are also under
constant attack. Security experts try to stay one step ahead of cyber attackers by studying the
SSL/TLS protocols for vulnerabilities. The POODLE and Heartbleed vulnerabilities were the
outcome of such studies. To help keep your integration safe from current and future security threats,
we recommend that you follow the best practices outlined below.
1. Discontinue use of the VeriSign G2 Root Certificate
2. Upgrade to SHA-256 SSL certificates
3. Use TLS version 1.2 or higher
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 4. Let the protocol negotiate the highest version
5. Do not hard code specific ciphers
6. Allow Perfect Forward Secrecy
7. Stay vigilant

3.3.5 Analytics (100 words)

Outline your approach to analytics relating to transaction data. Provide a summary of three systems that
can be used and the data available for analysis.

1. Qualitative Analysis
This approach mainly answers questions such as ‘why,’ ‘what’ or ‘how.’ Each of these questions is
addressed via quantitative techniques such as questionnaires, attitude scaling, standard outcomes, and
more. Such analysis is usually in the form of texts and narratives, which might also include video and
audio representations.
2. Quantitative Analysis
Generally, this analysis is measured in terms of numbers. The data here present themselves in terms of
measurement scales and extend themselves for more statistical manipulation.  
The other technique includes: 
3. Text analysis
Text analysis is a technique to analyze texts to extract machine-readable facts. It aims to create
structured data out of free and unstructured content. The process consists of slicing and dicing heaps
of unstructured, heterogeneous files into easy-to-read, manage and interpret data pieces. It is also
known as text mining, text analytics, and information extraction.

Part C - Determine review findings and outcomes

This part provides you an opportunity to display your ability to negotiate with a financial institution for
the purposes of merchant account and payment gateway facilities.

Case Study: Bounce Fitness Company

As part of your research and to ensure you have sufficient information to assist in your final
evaluation report to come later, you are required to engage with a financial institution to
determine review findings and outcomes and seek advice on merchant account and payment
gateway options for Bounce Fitness.

A meeting has been arranged between yourself and Martin from First Choice Bank. Martin
is a Business Banking Consultant at First Choice Bank who specialises in SME and
Corporate clients. His role involves understanding customer’s business banking needs and
matching products and services to the needs and requirements of business customers.

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 For Martin to put together a Merchant Customer Proposal and prepare recommendations for
actions to improve digital strategy, he will need some information about Ethical Trading
company’s commercial operations and their needs in relation to merchant accounts and
payment gateways.

As you are representing Bounce Fitness it is also a condition and expectation that you will
present yourself professionally.

For this activity, you will be simulating a negotiation meeting with a financial institution wherein you
will discuss preliminary findings and provide the Bank with relevant information pertaining to Bounce
Fitness, identified issues, its operations and monetization plans to help ascertain the best Merchant
Account and Payment Facility for the project.
There are five (5) recordings available under additional resources for Task 2 on Canvas that you must
listen to and write your response in the space provided. A Transcript of each recording is in Appendix
B. Write your response to each recording in the space provided using Appendix B. (Approx. 300 words)
Recording 1
a) Listen to Recording 1 from the Banker at the financial institution.
b) In your own words respond to the Banker’s question. Ensuring your response includes
information about:
o Bounce Fitness and its organisational structure
o Projected revenue for the year
o Outline of the Micro-loan project
o Forecasted revenue of the Micro-loan business
o Purpose of the meeting – seeking information to advise Bounce Fitness
Board of Directors
o Annual Profit KPI of the Micro-Loan Business
o Reason why you are engaging a financial institution

Recording 2
a) Listen to Recording 2 from the Banker at the financial institution.

b) In your own words respond to the Banker’s question. Ensuring your response includes
information about:
o Answers for both lines of business (retail and digital channel)
o Includes number of transactions per month, average dollar value for
each sale
o Potential for repeat transactions, conversion rates and margin

Recording 3
a) Listen to Recording 3 from the Banker at the financial institution.
b) In your own words respond to the Banker’s question. Ensuring your response includes
information about:
o Transaction rates
o Fees and charges
o Interchange charge rates
o Settlement of funds clearance times
o Account Contract term
If you have time, it would be great to find out:
o POS or EFTPOS support available and Terminal charges

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 o Foreign exchange transaction charges
o Payment Gateway services on offer and security features
o Request a sample of a bank statement for merchant accounts

Recording 4
a) Listen to Recording 4 from the Banker at the financial institution.
b) In your own words respond to the Banker’s question. Ensuring your response includes
information about:
o Whether there are savings for Bounce Fitness by brining other business
to the bank
o Non-contact charges applicable
o Reinforcing the Internet Merchant account that offers EFTPOS
facilitates for retail stores and any applicable rates
o Focus is on online payment gateways but whether further savings can be
made with the adoption of retail outlet EFTPOS facilities

Recording 5
a) Listen to Recording 5 from the Banker at the financial institution.
b) In your own words respond to the Banker’s question. Ensuring your response includes
information about:
o If rates can be gained that are not published on their advertising (internet
and brochures)
o If revenue increases are further savings possible
o Interest rate on funds in the account and how/when they are paid
o What payment gateways integrate with the account and any API for this
o Wholesale rates can we buy funds from your bank
o What payment gateways do you offer

Part D: Performance Evaluation & Distribution Plan

Use Appendix C to complete Part D.

1 Reporting and Evaluation Process

1.1 Recommended Process for reporting and Evaluation
1.1.1 Method (150 words)
Considering the data sources that you evaluated in the last section of your proposal (Analytics), what
ERP solution is suitable for Bounce Fitness?

PUSHPRESS:
PushPress is a gym management system that is here to help us grow our fitness facility. With
PushPress, we'll be able to manage classes and privates, take payments, track attendance, manage
leads, and maintain member relationships all from the palm of our hand! PushPress was founded in
2012 to solve the modern-gym owner's problems. To truly understand those problems, we decided
to open a gym and go through the pains of building and running a gym. When we came up with
problems in our gyms, we would explore how technology could help solve them. The result is a
platform that can integrate with third-party software to allow gym owners to build the system their
business needs, a system that is easy and intuitive to use for the gym owner on the go, and paired
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 with rockstar customer support (who all have owned gyms).

1.1.1 Timing (150 words)

Outline your approach to the frequency of distributing and reporting financials (including your
rationale). Ensure your answer includes company financial reporting patterns as well as the regularity
of sales reporting. Can you draw links with Australian government requirements for financial and
accounting reporting?

Financial reports prepared for internal use are different from the financial reports that are accessible
to the public. Generally, internal financial reports tend to be more detailed in order to provide
management with enough information to help in the decision-making process.
Since the internal financial reports are not available publicly, the company is not required to follow
the Generally Accepted Accounting Principles (GAAP) when preparing the reports.
Internal financial reports may be used to provide information about employees. The management
may need internal employee reports that provide information on employee performance,
operational efficiency at the department level, whistleblowing activities, etc.
The management may use the reports to make decisions on promotions, deployment, and layoffs.
External financial reporting is a business practice that involves providing financial information on a
periodic basis to potential investors and shareholders.
The reports are primarily financial statements and other related information about the company
that investors require to make an investment decision. Usually, the reports do not contain
confidential information about the business, unless it is disclosed to achieve a specific purpose.

1.2 Tools for Data Collection and Analysis (150 words)

Expand on the ERP solution from the ‘method’ section of this assessment. Outline the data points or
analytics it can provide and how this is of benefit to the performance evaluation process for this
project.

ERP advantages
Benefits of ERP Software
 Increased Productivity: One major benefit of ERP software is automation, ranging from
invoice generation to marketing automation.
 Reduced Operational Costs: Through increased efficiency of operational processes, an ERP
can help cut costs and increase profitability across all departments in your organization, from
manufacturing to finance.
 Integrated Information: With an ERP, information gathered from across all the departments
is consolidated into a single source. This makes it easier to share consistent, unique, and
accurate data.
 Competitive Advantage: ERPs can be expensive. Acquiring a modern ERP system, however,
can put you ahead of the competition simply by having a level of intelligence that they don’t.

 Flexible Systems: Cloud ERP systems enable workers to operate remotely. Additionally, an
ERP system can be configured to accommodate workforce changes and more users as the
business expands, thus aiding scalability.
 Easier Reporting and Planning: An ERP suite means a single unified reporting system.
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 Accurate, real-time data can be generated and shared without the intervention of an IT
expert.
 Enhanced Data Security: Merging information into a single repository, whether on premise
or in the cloud, shores up security compared with scattered sources on disparate systems.
 Improved Customer Service: ERP systems enable customer service and sales teams to quickly
access customer data so they have an easier time addressing customer concerns and tracking
experience history.

1.3 Plan for Gap Analysis and Improvement

1.3.1 Monetization Vision and Goals (100 words)
Based on the revenue target, the ROI you calculated in the proposal, and the data you gathered
regarding potential opportunities and projected sales etc., summarise these in a vision statement with
key metrics for the following:
 Profit
 Marketing ROI
 Leads
 Conversion rate
 Repeat Purchases
 Micro-loan Revenue
 Marketing Budget
 Gross Profit (GP)

Components of a vision statement

 Oriented toward the future.
 Demonstrates ambition.
 Defines the organization's direction.
 Reflects organizational values.
 Inspires others.
 Uses concise formatting.
 Shows you are unique.
 Identify your organization's goals.
Monetization is essentially the final piece of a systematic look at a business model. For-profit
companies need to have a model that successfully generates revenue. A product-based reseller
monetizes by selling goods at specific price points to customers. Simply put, it's a plan to
generate revenue for your product. Like with any plan, it's not something that is fixed - it should
be flexible enough to develop with the product, the market the product exists in and its users.

1.3.2 Gap Analysis (150 words)

Consider the Marketing ROI for the Microloan business against the rest of the business, what does a
Gap Analysis identify? Is this in front or behind the benchmarks? What is the target-spend for
marketing? How can improvement be gained?

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 A gap analysis is a method of assessing the differences in performance between a business'
information systems or software applications to determine whether business requirements are
being met and, if not, what steps should be taken to ensure they are met successfully.
This gap analysis tool, named after consulting firm McKinsey & Co., is used to determine specific
aspects of a company that are meeting expectations. An analyst using the 7S model examines the
characteristics of business through the lens of seven people-centric groupings: strategy, structure,
systems, staff, style, skills and shared values. The analyst fills in the current and future state for each
category, which would then highlight where the gaps exist. The company can then implement a
targeted solution to bridge that gap.
The Nadler-Tushman organizational congruence model, named after Columbia University professors
David A. Nadler and Michael L. Tushman, examines how business processes work together and how
gaps affect the operational efficiency of the organization as a whole.

1.3.3 Roadmap (150 words)

Draw a table that shows the current state and future state (goals) with suggested target improvements
in conversion and margin achieving a stronger ROI.

Markdowns are notorious profit-killers, so avoid them whenever possible. Start by improving how
we manage our inventory. We should always have a handle on the merchandise we have on hand, as
well as what our fast and slow-movers are. This will help us make better decisions around
purchasing, sales, and marketing, allowing us to sell more products and reduce the need for
markdowns.
“First, cut overtime and excess staffing as much as possible, then focus on areas of waste. Minimize
supply: spend as little as possible, and ditch the fancy printed shopping bags, tissue fill, and excess
packaging wherever possible. If we’re not using an efficient point-of-sale to tie inventory, sales, and
marketing under one system, consider making a switch to a low-cost system. This makes our entire
store and staff run more efficiently.”
Another great way to streamline our operations is to automate specific tasks in our business. By
putting repetitive activities on autopilot, we can reduce the time, manpower, and operating
expenses required to run our business.

1.4 Digital Dashboard (150 words)

The Board of Directors are considering bringing in electronic reporting dashboards to assist in the
monitoring and reporting of the project’s effectiveness. Draw a picture/schematic of a Digital
Dashboard showing the KPIs and Benchmarked data for the Microloan business ensuring you include
all the data points and transaction and sales data you have recommended and included in your
proposal and this performance evaluation and improvement plan. As a minimum you should include:
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  Sales data
 Geographic reach
 KPIs
o Profit
o Marketing ROI
o Leads
o Conversion Rate
o Repeat Business
o Microloan revenue
 Marketing budget
 Web traffic
 Engagement
 Best performing keywords
 Best performing advertisements
 Other data you feel is important

A PIP should be used when there is a commitment to help the employee improve, not as a way for a
frustrated manager to start the termination process. Used as the latter, it's nothing more than a
document trail that should already exist, and it signifies to all employees that no such help is
available. Bottom line: HR needs to assess if a structured plan with time-sensitive goals is the
appropriate next step, or if a PIP will be more of a detriment than an aid.
Information on what acceptable performance levels are and how the employee's current
performance is deficient. Particulars regarding the unacceptable performance should be given,
including dates, data and detailed explanations. Attach the job description and any relevant
employer policies to further clarify expectations.
Specific and measurable objectives that are achievable, relevant and time-bound (otherwise known
as SMART goals). PIPs usually last 30, 60 or 90 days, depending on how long it would reasonably take
to improve the specific issue.

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Appendix A - Digital Strategy Review Template

1. Channel Analysis
1.1. Channel Strategy – the Monetization Opportunity for ETG
1.2. Digital Marketing Considerations
1.3. The ETG Digital Ecosystem

2. Review Prior Experience

2.1. Conduct Internal Research
2.1.1. ROI on Existing Sales
2.1.2. Review Site Analytics
2.1.3. Review Inventory Management
2.1.4. Review Resource Management
2.1.5. Review Cash flow Impact
2.2. Conduct External Research
2.2.1. Competitive Intelligence
2.2.2. Research Partners
2.2.3. Legal Considerations and Organisational Policy
2.3. Identify Potential Barriers to Streamlined Transactions
2.4. Benchmarking
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 2.4.1. SEO
2.4.2. Engagement
2.4.3. Existing Website traffic
2.4.4. Establish KPIs

3. Development Plan – Select & Implement Tools and Technologies

3.1. Organisational Impact
3.1.1. An Agile Team
3.2. Development Plan
3.2.1. Customer Trust
3.2.2. Ensuring Sales Success
3.2.3. Content Strategy
3.2.4. Project Plan
3.2.5. Testing and Stabilisation Plan
3.3. Transaction Enablement Partners
3.3.1. Payment Gateway
3.3.2. Financial institution (Oral Component)
3.3.3. eCommerce Platform
3.3.4. Authentication & Security Considerations
3.3.5. Analytics

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Video 1 Transcript
Martin: Good morning. Thank you for coming to see me today. I understand you work
with a business who trades in fitness products and materials and are looking to negotiate
the best financial services partner for your growing business. I can assure you with a
strong business such as yours, we can help you with a very good offering. Can you please
tell me about your business and what you are looking for?
Write your response:
I’m currently part of a Bounce Fitness and have no plans on going to any other gym. I’m a
relatively an old member, and I’ve been working extra hard on getting the movements
correct. A creative way to get my attention would be in improving and perfecting form. I
bet there are a lot of members that would love to develop their movements and would
gladly sign-up for more one-on-one training. Remember we can market to current
members to keep them happy, get them to purchase more and get them to become our
gym promoters.

Video 2 Transcript
Martin: What key performance indicators are you working with for your existing business
and the new micro-loans business?
Write your response:
 Revenue growth.
 Revenue per client.
 Profit margin.
 Client retention rate.
 Customer satisfaction.
Microloans are very small, short-term loans with a low-interest rate, extended to self-
employed individuals, new startups with very low capital requirements, or small
businesses with only a few employees. Microloans are generally a pretty versatile loan
product and can be used for a variety of business purposes.
Starting a new business
Working capital to buy inventory or supplies
Covering payroll or training employees
Covering seasonal expenses
Funding a new marketing strategy

Video 3 Transcript
Martin: Ok, great. Now you must have some questions for me so you can understand
what we have on offer here at our bank. What are the most important factors for your
business in selecting a financial institution?
Write your response:
 Security of our funds.
 Fees.
 Ease of deposit.
 ATM fees.
 Interest rates.
 Online banking features.
 Minimum balance requirements.
 Branch availability.

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Video 4 Transcript
Appendix B – Video Simulation Transcripts

Appendix C - Performance Evaluation and Distribution Plan

1. Reporting and Evaluation Process

1.1. Recommended Process for Reporting and Evaluation
1.1.1. Method
1.1.2. Timing
1.2. Tools for Data Collection and Analysis
1.3. Plan for Gap Analysis and Improvement
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 1.3.1. Monetization Vision and Goals
1.3.2. Gap Analysis
1.3.3. Roadmap
1.4. Digital Dashboard

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