BSBWRK520
SIMULATED BUSINESS – Sim’s Hardware
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Table of Contents
BUSINESS PROFILE ..................................................................................................................... 5
Organisational Overview ............................................................................................................ 5
Vision Statement ...................................................................................................................... 10
Vision Statement ...................................................................................................................... 10
Australian Hardware Organisation Chart ................................................................................. 11
Risk Management Plan ............................................................................................................ 12
POLICIES, PROCEDURES, PROCESSES ....................................................................................... 18
Armed Robbery Procedures ..................................................................................................... 18
Customer Feedback Questionnaire ......................................................................................... 20
Customer service standards..................................................................................................... 21
Dealing with customer complaints .......................................................................................... 22
Department Sales Report ......................................................................................................... 24
Department Sales Report ......................................................................................................... 25
Safety ....................................................................................................................................... 26
Fire and evacuation procedures .............................................................................................. 29
Staff and customer accidents .................................................................................................. 30
Employee behaviour standards ............................................................................................... 32
EEO policy................................................................................................................................. 37
Incident Report Form ............................................................................................................... 39
Opening and Closing the Premises .......................................................................................... 40
Work Attendance ..................................................................................................................... 41
Pay rates and bonus schemes .................................................................................................. 42
Performance appraisals ........................................................................................................... 44
Performance Appraisal Form ................................................................................................... 46
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Policies dealing with Theft ....................................................................................................... 53
Customer's property ................................................................................................................ 56
Dealing with cash, credit, cheques and EFTPOS ...................................................................... 60
Dealing with cash holding and banking procedures ................................................................ 64
Returns policy .......................................................................................................................... 64
Staff general security ............................................................................................................... 66
Stock control policy and procedures ....................................................................................... 67
Stock handling .......................................................................................................................... 69
Store pricing policy .................................................................................................................. 70
Coordinating stocktake ............................................................................................................ 74
Stocktake sheet ........................................................................................................................ 79
Shrinkage sheet ........................................................................................................................ 80
Discrepancy sheet .................................................................................................................... 81
Mark-down Worksheet ............................................................................................................ 82
Store Safety Policy and Procedures ......................................................................................... 83
Store Security Policy and Procedures ...................................................................................... 93
Staff Induction Checklist ........................................................................................................ 113
Recruitment and Selection Policy .......................................................................................... 115
Procedure: To make a complaint ........................................................................................... 116
Grievance Policy ..................................................................................................................... 117
System to monitor sales performance .................................................................................. 118
COMPANY DOCUMENTS ........................................................................................................ 126
Head Office Financial Management Policies and Procedures Manual .................................. 126
Financial Performance 2016-2017 ......................................................................................... 139
Statement of Financial Position Ending FY2017 .................................................................... 140
Australian Hardware Marketing Plan 2017 ........................................................................... 141
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Business Plan .......................................................................................................................... 165
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BUSINESS PROFILE
Organisational Overview1
With 138 stores and approximately 10,000 staff across the country, Sim’s Hardware is one
of Austraila's largest hardware retailers.
Sim’s Hardware provides a wide range of products at competitive prices for the purpose of
home improvement
Sim’s Hardware has been a part of the Australian retail landscape from last many
decades.
What is now known as Sim’s Hardware opened its first store under the name of Sim's Home
Goods in George St Sydney. Sim’s Home Goods initially specialised in the manufacturing and
sale of small household furniture. The business quickly expanded from one to four stores
across Sydney's northern and western suburbs. The stores employed the equivalent of 60
full-time staff by the beginning of 1928. All of which were either family members or friends.
In 1930, the midst of the Great Depression, the demand for Sim’s Home Goods began to
decline. Over the next three years, the business closed three of the big stores.
In 1941, declining consumer demand in conjunction with the onset of World War II again
brought Sim’s Home Goods to the brink of closure. The business immediately initiated a
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change process that included re-training the existing manufacturing and sales staff and
modifying the company's supplier relationships and equipment to cater for new contracts.
This sustained the business through the war years.
In the early 1950s, the business was repositioned; this time to benefit from the housing
boom by supplying wood and other hardware items. The business was re-named Sim’s
Hardware and an expansion program commenced that took the business into all states over
the next 10 years.
The business has continued to expand to now have 138 stores and approximately 10,000
staff across the country.
Products
Employment
We aim to be innovative with the benefits we offer to help staff achieve the right balance
between work and life. These benefits include:
Flexible working options such as job sharing, off-site work, transition to retirement
and career break
Purchased leave of up to an extra four weeks annual leave can be purchased
through salary sacrifice
Carer’s, compassionate and personal leave is available to care for sick family
members
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Flexible leave to fulfil defense service duties
Parental and adoption leave options for when your family grows
Special purpose leave to enable our people to undertake activities in the community
Educational assistance and study leave to assist further education and development
Carer’s services for children, elderly parents or relatives
Employee assistance program offering counselling services for people and their
families
Recognition scheme and leadership development programs
Competitive remuneration including performance bonus structures and income
protection insurance
Employee share plan to assist employees to become part owners of Sim’s Hardware.
Community
Sim’s Hardware works in partnership with local community groups and sports clubs to help
fundraising activities. We provide opportunities for local clubs and organisations to run
produce stalls on Saturday mornings outside our stores.
We also provide discounts for materials being purchased for the construction or
maintenance of community facilities by community organisations.
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Environment
Sim’s Hardware has a commitment to minimising our environmental impact by:
using resources wisely;
ensuring our suppliers operate sustainably and ethically;
encouraging and educating customers about environmentally friendly alternatives;
and,
focusing on appropriate waste management principles.
We consider social, economic, cultural and environmental risks and benefits into our
business decision-making.
Stores
With over 130 stores nationwide there is bound to be one near you.
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Mission Statement
Sim’s Hardware provides the best quality hardware, homewares, garden supplies and
building materials from Australia and the world.
Sim’s Hardware is committed to providing customers and tradespeople withvalue through
everyday low prices, product quality, expert service, community engagement and
environmental responsibility.
Vision Statement
Within five years, Sim’s Hardware will lead the hardware and home-improvement market in
Australia.
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Sim’s Hardware Organisation Chart
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Risk Management Plan
Sim’s Hardware is committed to the effective management of risk, which is central to the
continued growth and profitability of the company. The purpose of this policy is to ensure
that:
● appropriate systems are in place to identify – as much as is reasonably possible and
practical – risks that the company faces in conducting its business
● the potential impact of identified risks are understood and appropriate limits are set to
assist in the management of exposures to those risks
● responsibilities are delegated to manage the identified risks
● assurance is provided as to the effectiveness of the risk management system and risk
controls
● any changes to the company’s risk profile are monitored and disclosed.
This policy covers all risks that could have a material impact on the company, including
those related to:
people
assets
objectives
customers
reputation
the environment
The Chief Financial Officer (CFO) is accountable for:
● identification and management of risks including risks in relation to all significant
investment decisions
● appointing the system owners, through whom appropriate systems and procedures for
the identification, reporting and management of risks are developed, implemented,
maintained and reviewed
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● provision of reports to the board on performance in relation to identification, assessment
and management of risks, including environmental risk.
Risk Management
Store managers are accountable for:
● the development, implementation, maintenance and review of appropriate policies,
procedures and systems for the management of all risks within their area of responsibility
● providing assurance that the systems of risk management and internal control within their
area of responsibility operate effectively in all respects.
The Chief Risk Officer at each store is accountable for:
● demonstrating, through a program of assurance and review, the effectiveness of, and
compliance against, those systems used to identify and manage risk
● providing an effective system for assurance, at six monthly intervals, from employees with
specific delegated responsibilities under this policy
● the provision of an appropriate insurance program
● the identification of material changes to the company’s risk profile and recommending
their disclosure
All managers, supervisors and employees are responsible for:
● taking all reasonable and practicable steps to perform their responsibilities delegated
under this policy and the related systems and procedures.
Reporting
For the approval of Sim’s Hardware annual financial reporting, the Chief Financial Officer
states to the board in writing that:
● the declaration provided in accordance with s295A of the Corporations Act 2001 is
founded on a sound system of risk management and internal control and that the system is
operating effectively in all material respects in relation to financial reporting risks.
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The CFO provides a report to the board indicating:
● the effectiveness of the company’s risk management and internal control systems in
relation to business risks
● the effectiveness of the company’s risk management and internal control systems in
relation to environmental and triple bottom line related risks.
Risk Management Strategy and Plan
Introduction
Sim’s Hardware recognises that risk management is an essential component of good
management practice and is committed to the proactive management of risks across the
organisation. The strategy is designed to:
● identify, evaluate, control and manage risks, including environmental risks
● ensure potential threats and opportunities are identified and managed
● inform store management, partners and staff members about their roles, responsibilities
and reporting procedures with regards to risk management
● ensure risk management is an integral part of planning at all levels of the organisation.
Guiding Principles
Sim’s Hardware is committed to achieving its vision, business objectives and quality
objectives. This will be achieved through the proactive management of risk at all levels of
the organisation. Sim’s Hardware acknowledges that embracing innovative ideas and
practices carries with it risks, but that these are identifiable and measurable and therefore
capable of being subject to realistic risk mitigation processes.
Responsibility and Authority
Store managers/partners have responsibility for ensuring that risk management is in place.
Managers/partners have the responsibility of reviewing the Risk Action Plan (outlined in the
table at the end of this document) on a monthly basis.
Staff support and implement policies approved by the partners.
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Key risk indicators will be identified, closely monitored and action taken where necessary,
by all employees of Sim’s Hardware.
LRES Training Management Pty Ltd
Risk Management Framework
This framework encompasses a number of elements that together facilitate an effective and
efficient operation, enabling Sim’s Hardware to respond to a variety of operational,
financial, commercial and strategic risks. These elements include:
● Policies and procedures: A series of policies underpin the internal control process.
● Reporting: Decisions to rectify problems are made at regular meetings of the partners and
store management.
● Business planning and budgeting: The business planning and budgeting process is used to
set objectives, agree on action plans and allocate resources. Progress towards meeting
business plan objectives is monitored regularly by the partners. Contingency planning is
undertaken as required.
● Risk management review: The partners are required to report monthly.
● External audit: The final audit of financial statements is controlled by an external
chartered accountant who provides feedback to the partners.
Definitions
Risks are identified on a scale of likelihood of occurring in the next 12 months and assigned
an impact or consequence of the risk as high, medium or low. High includes either a
significant shortfall of around 40% in achieving budget or a significant reduction in ability to
function. Medium includes either a shortfall of budget of between 10% and 20% or some
reduction in function, and low indicates minor reductions in achieving budget or minimal
reduction in performance.
Risk Management Action Plan
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POLICIES, PROCEDURES, PROCESSES
Armed Robbery Procedures
Our company policy is to provide a safe and healthy working environment. Do not attempt to
be heroic: your life is worth more than any amount of money.
However, in the event of a hold up the following procedures must be followed:
Remain calm and quiet
Stand still and do not make any sudden movements
Obey the offender's instructions
Do not draw attention to yourself, and speak only when spoken to
Avoid direct eye contact and do not stare at the offender
What to do immediately after the offender has left the scene:
Arrange first aid assistance if required
If possible, note direction and means of departure, not putting your self at risk.
When safe to do so advise security and the Manager who will ring the police 000 and
contact head office
The Manager will seal off the area where the event took place
The Manager in charge will ask all witnesses to remain until the police arrive and you
will be allowed to your notify parents and family, should you be required to remain
in the store
The Manager will complete the appropriate forms
Store safety tips
Do not chase offenders
If safe to do so observe the dress and physical appearance of the offender
Assess the offenders' height against a display stand, post or doorway
Do not attempt to answer a ringing telephone
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Do not attempt to delay the departure of the offenders; as soon as they leave you
are safe
Do not discuss the incident with other employees until you have spoken with the
police.
Do not drive a vehicle immediately after a hold up due to possible shock affecting
you
Do not touch anything as evidence could be destroyed
We recommend any trauma counselling that is offered by management
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Customer Feedback Questionnaire
Dear customer,
We value your comments about the kind of service you received while shopping in our store.
To help us to serve you better, your responses and suggestions guide us in making key
decisions regarding store operations.
1 Are our sales staff always friendly and helpful?
If No, please suggest some changes you would like to see in the future.
_______________________________________________________
_______________________________________________________
_______________________________________________________
Yes
No
2 Are you satisfied with how our sales are processed in terms of speed,
accuracy and the handling of credit or debit cards?
If No, please suggest some changes you would like to see in the future.
_______________________________________________________
_______________________________________________________
_______________________________________________________
Yes
No
3 Are you impressed with the store's presentation in terms of access in
aisles and at stands, cleanliness, lighting and signage?
Yes
No
4 Are you satisfied with our range of merchandise? Yes
No
5 How many times have you visited this store before today? 1-5
6-10
11-15
More
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6 Which age group do you belong to? 15-25
26-35
36-45
Over 45
Thank you for taking the time to help us to try and improve our service to you.
Your name (Optional): ___________________________________ Postcode: _______
Male
Female
Customer service standards
Customer service policy
Excellent customer service is our number one priority and we expect customers to be
treated with respect. Staff members at all times should do whatever it takes to create a
happy and satisfied customer.
Remember the first impression is very powerful.
Once this has been formed, it takes a long time to change it.
Greeting the customer
Welcome all customers with "Good morning/afternoon" and with a genuine smile and a
spontaneous approach. Call customers by their name wherever possible. Always use eye
contact, good body language and use facial expressions. Then leave the customer to view
store merchandise for a short while before re-approaching.
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Making the customer welcome
In a friendly professional manner, always let the customer know you are there to help. If
you are busy with another customer, advise the customer you will attend to them shortly or
ask another staff member to assist them. By starting a genuine conversation with a
customer you are showing an interest in them and their needs. Asking open questions is a
positive way to keep the conversation flowing.
Product knowledge
All staff members will be correctly trained in all product knowledge, as customers expect us
to educate them and inform them. It is crucial to understand the features and benefits of
each garment and explain to the customer how to care for the item e.g. dry clean only, hand
wash, the need for a water proofing spray.
Farewell the customer
Your farewell statement should be warm, friendly and genuine. You should always include
the words "Thank you. Let me know how the outfit went. Enjoy your day."
Always invite the customer back to the store. Your excellent customer service will always
make a difference. If you reinforce the customer's purchase and make the customer feel
good about the item they have purchased, then the customer will leave feeling satisfied
with their purchase instead of wondering did they really need it.
Good customer service is about doing a lot of little things better and about providing
something different and fun to experience.
Dealing with customer complaints
It is a challenge to convert an unhappy customer to a satisfied customer. Most customer
complaints can be resolved at store level, and by following our Company's three step
procedure, it can be done.
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Step 1: Manage the emotion
Listen to the customer
Show that you are listening by using eye contact. If need be, take notes. Never interrupt the
customer while they are explaining the problem. Assure the customer you can help them.
Empathise with the customer. Put yourself in the customer's shoes and show you
understand and support them. Use statements such as "I understand your frustration
sir/madam and I am sure we can resolve the problem."
Apologise
Always apologise for any inconvenience and assure the customer that you or another staff
member can help them. If you do not feel confident, call for your Supervisor. Do not make a
scene.
Step 2: Negotiate a solution
Identify the problem by agreeing with the customer's complaint. It is paramount all staff
members are correctly trained and have a sound knowledge of store policies and
procedures, specifically the returns and refund policy.
Assist the customer or refer the matter to the Supervisor, who will take the customer to the
Supervisor's desk. Ask what they would like to see happen, rather than what they want you
to do about it. Don't let the customer force you into a quick decision.
Step 3: Commit to action
Be positive when resolving a customer's complaint. Focus on the problem and don't dwell
on what went wrong. Determine a solution which is acceptable to both customer and the
Company.
Some solutions available are refund, exchange or a credit note. If a resolution cannot be
found at your level, it is Company Policy that a Supervisor attends to the customer.
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Points to remember when dealing with angry customers are:
The customer is always right
Always remain objective while a customer is being abusive
An angry customer should be dealt with quickly and quietly and away from other
customers
Department Sales Report
Department: ____________________Month: ___
Monda
y
Tuesda
y
Wednesda
y
Thursda
y
Frida
y
Saturda
y
Sunda
y
Tota
l
Week
1
Targe
t
Actual
+ / -
Week
2
Targe
t
Actual
+ / -
Week
3
Targe
t
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Actual
+ / -
Week
4
Targe
t
Actual
+ / -
Supervisor: ________________________________________
Equipment security
Our store has purchased equipment to make the company more efficient and professional.
Equipment is a valuable asset and it is the Supervisor's responsibility to ensure the
following rules are adhered to:
Equipment is serviced on a regular basis
Staff members are encouraged to treat equipment with respect
All staff are appropriately trained in the use of equipment and associated
occupational health and safety issues
Equipment is used in appropriate manner and not for personal use
All equipment should be stored in a locked cupboard
Keys are held by the Supervisor at all times
Equipment is not left lying around as theft could occur
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Safety
Occupational Health and Safety Commitment
At The Store, working together, we aim to provide both our staff members and our
customers with a safe and healthy environment. A safe working environment is not
something that just happens -we all have to make it happen.
What is Occupational Health and Safety (OH&S) Legislation?
Occupational Health and Safety Legislation aims to protect the health, safety and welfare of
people at work. It lays down general requirements, which must be met at all workplaces.
The Legislation covers self-employed people as well as employees, employers, students,
contractors and visitors.
The company will at all times provide a safe working environment
To do this we will provide:
A safe and healthy working environment for all our employees, contractors, visitors
and customers
A written safety policy
Encouragement for all staff members and employees to help maintain and improve
the health, safety and welfare of all employees
On-going safety training for all employees
Rehabilitation for injured workers
Safe entrances to and from the building
Safe equipment and working methods, including appliances, tools and a safe system
of work
Arrangements for ensuring the safe use, handling, storage and transport of
equipment and substances
The supervisor's role
Your supervisor will:
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Ensure the overall safety off employees and company property under his/her control
Ensure that no task will be undertaken if health and safety standards are
compromised
Ensure that all company rules and procedures are adhered to at all times
The employee's role
As an employee we expect that you will:
Follow all workplace policies related to safety
Practice safe work habits
Use protective equipment and clothing properly
Know emergency procedures
Not willingly place at risk the workplace health and safety of yourself or others
Safety Committee
Our Safety Committee meets the first Tuesday of each month. We have found this is one of
the most effective ways of involving employees in maintaining and improving health and
safety standards in the workplace. Our committee guidelines adhere to the OH&S Act.
The basic company guidelines are:
A committee must be established where a workplace has 20 or more people
The committee should consist of no more than eight people
At least one department manager or supervisor should be a member of the
committee
Committee members should consist of one employee from each department
Meetings should be documented and conducted each month on a set day
All safety issues should be discussed during safety meetings and acted upon
Two safety inspections must be conducted each month prior to meeting
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If you want to join the Safety Committee, please contact your store manager.
OH&S Resolution Strategy
If you become aware of an issue within your work environment that is unsafe, you should
try and rectify the problem if safe to do so before it causes an injury.
You should
assess whether you can fix the problem yourself safely. Never endanger yourself or others
under any circumstances.
If you cannot fix the problem report it to your OH&S representative, Supervisor or Manager.
Fixing safety issues as they arise will provide a safe environment for our employees to work
in and our customers to shop in.
Accident prevention
To prevent accidents we must always maintain:
Safe Equipment: Use the right tool for the job and check equipment for faults before
use. If unsafe, tell the appropriate person
Safe Environment: Inspect floors regularly for spillage of liquids or produce, and
stack shelves safely. Clean all spillages and use appropriate signs
Safe Behaviour: Only use the equipment that you have been trained to use. Never
endanger yourself, customers or other employees
Workers compensation
All employees are entitled to claim workers compensation if they suffer a work related
illness or injury. If an injury occurs you must:
Inform your manager or supervisor immediately and they will arrange medical
treatment
Complete an incident or accident report and get your supervisor to sign it
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Workers compensation forms are available from your manager
Fire and evacuation procedures
If you see a fire or emergency:
Stay calm and make an assessment of the situation
Assist any person in immediate danger if it is safe to do so
Notify your Store Manager
Ring emergency services on the phone number 000
Make an announcement over the PA system that there is a problem and request all
customers to leave goods and purchases and vacate the store in an orderly manner
### Show a map of emergency exits.
Fire wardens or a responsible member of staff should:
Direct all customers to the nearest safe exit
If safe to do so, secure cash and shut down computers
Proceed to your assembly area until the emergency is over
Inform premises on either side of the building about emergency
Account for all staff
Company responsibility:
All staff are trained in the fire and evacuation procedures
A fire warden is always on staff
All fire equipment is checked regularly by the local fire department
Fire alarm is working properly
Your responsibility:
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Know the fire drill procedures
Be aware of the location of portable fire extinguishes, hose reels, emergency exits and the
location of your store's assembly area
First Aid facilities and assistance
As part of our commitment to promote a safe and healthy working environment, we
encourage staff members who would like to become a first aid attendant to do so. To apply
you need to have been in our employment for more than 3 months. For more information
please contact your manager.
Staff and customer accidents
If you have an accident at work you should:
Seek First Aid if necessary
Report the accident to your store or department manager, whether you are injured
or not
Fill out incident or accident report
Take steps to avoid repetition of the accident
### Refer to Incident and Accident report
If you see a customer who has had an accident you should:
Remain calm
If possible, move injured person to a safe place
If unable to move, make the person as comfortable as possible
Arrange for first aid assistance to attendant the accident
If needed, phone the ambulance
Ensure the store or department manager is informed immediately
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Seek any friends or relatives of the injured person who may be shopping with the
customer
Never admit that the accident was the fault of the store or make promises to any
customer
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Employee behaviour standards
Our aim is to look professional for our customers and make them feel comfortable when they
visit our stores.
Employees' dress code
All staff are required to present themselves in a professional manner for their employment
roles. Staff member's appearance is a reflection of our company's image. Uniforms will be
supplied but it is up to the staff member to make sure all uniforms are cleaned and pressed
prior to commencement of shift. In some circumstances protective clothing is supplied and
must be worn according to company policy.
Cleanliness
Normal standards apply including bathing, the use of deodorant and keeping fingernails and
hands clean.
### For more information refer to Food Handling and Hygiene manual.
Hair
Should be neatly trimmed and combed hair. Long hair must be tied back
Moustaches are permitted, but must be neat and clean; sideburns should be neatly
trimmed.
Footwear
All staff must wear blue/black solid, closed footwear to protect their feet from injury.
Caps and aprons
Caps and aprons must be worn at all times for hygiene purposes.
Name badges
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Name badges must be worn during your shift.
Jewellery and cosmetics
We appreciate that everyone is an individual but we as a team need to give a professional
image to our customers. When at work, please do not wear anything that might offend our
customers such as loud hair colour, body piercing, etc.- Conservative use of cosmetics is
permitted, however nail polish and false nails are not allowed.
For safety reasons jewellery must be minimal and conservative. Body piercing and tattoos
must be covered during your shift. This is for health and safety and food safety reasons.
Smoking
Smoking is not permitted in any area of the store. A smoke free policy covers all buildings at
all times.
Alcohol and other drugs
Under no circumstances must you start your shift under the influence of drugs, alcohol or
any illegal substances.
While on the premises it is also unacceptable to sell or consume alcohol or other drugs, or
illegal substances. Breaking of this rule will result in instant dismissal and possible police
notification.
Grievances and discipline
Our store promotes the idea of open communication in a non-threatening atmosphere.
However in a corporate environment a certain level of conflict is inevitable. The key to
effective resolution is that any grievance should be dealt with as close to its source as
possible.
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Grievance resolution procedures
The employee's role
Everyone in the store has the responsibility and the right to solve any problems or
grievances if they occur. Create open communication channels and ensure that the
workplace is free from discrimination.
Discuss any complaint or grievance in a clear and logical way by following the correct
procedural steps:
Employees shall notify the supervisor or manager in writing and state the remedy
sought
Take the complaint to the manager if the complaint involves a supervisor
Reasonable time limits must be allowed for discussion at each level of authority
While procedures are being followed, normal work must continue
The supervisor's role
As a supervisor you have a responsibility to develop trust and mutual respect, therefore all
matters concerning grievance and discipline should be treated in a professional manner and
in the strictest of confidence.
Procedural steps:
Be assertive and ensure the problem is solved in a reasonable matter; be fair, non-
discriminating and make sure you have all the facts before discussion commences
Allow reasonable time limits for discussion. Listen actively to employee complaints
and grievances in an empathetic manner and reassure the employee that complaints
will be resolved
Attempt to resolve the conflict by discussing the problem with all parties close to the
dispute
Encourage each party to state the problem and have both parties work together to
find a solution
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The supervisors must provide a response to employee's grievance if the matter has
not been resolved
If a resolution is not achieved refer the matter to the Manager
The manager's role
Arrange for a further meeting between all parties to try to resolve the dispute. If the dispute
can not be resolved at this level, as a last resort the following options are available:
Procedural steps:
All employees and employers have the right to be represented by an industrial
organisation
Employ a professional mediator or counsellor
Disciplinary action
Termination of employment
Misconduct by an employee will result in 2 verbal warnings being issued, then a written
warning, which will be signed by Management and the employee.
The written warning will be kept on file for a period of twelve months and should the
company need to issue another warning, the employment will be terminated.
On termination of employment and within 7 days of the termination date, you will receive
your wages, along with any holiday pay that you are owed.
Misconduct
Once employed with the store you must comply with our conditions of employment. If you
fail to do so you may be terminated or issued with a verbal or written warning.
Acts of misconduct are:
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Creating general disharmony among employees
Verbal abuse of employees
Abusive language, swearing or offensive behaviour
Frequent absentee and lateness without explanation
Refusal to follow instructions
Not following the dress code standard
Instant dismissal
In some circumstances, unacceptable behaviour may include wilful misconduct. In such
situations employees will face instant dismissal without notice.
The following actions may result in instant dismissal:
A serious breach in OH&S procedures
Committing a criminal offence at the workplace
Giving unauthorised discounts
Sexual harassment or discrimination of customers or employees
Committing sexual acts on the premises
Causing of any harm or intentional abuse to any employees or customers
Under no circumstances may you start your shift under the influence of alcohol or other
drugs, or any illegal substances.
While on the premises it is also unacceptable to sell or consume alcohol or other drugs, or
any illegal substances.
The store will not tolerate theft of any kind, whether it be money or stock. If you are caught
with any of these in your possession you will be dismissed immediately and police action will
be taken.
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EEO policy
Our aim is to create a harmonious and enjoyable work environment for all employees. We
all have a duty to prevent discrimination in the workplace. Our aim is to identify and
eliminate discrimination. Failure to obey this policy could mean instant dismissal.
Anti-discrimination and equal opportunity
We have a commitment to prevent discrimination in the workplace. The Anti-discrimination
and equal opportunity laws make it generally unlawful to discriminate against a person
because of:
Religious preference
Gender or age
Physical impairment and condition
Sexual preference
Racial or ethnic background
Marital status
HIV/AIDS, hepatitis and other infectious diseases
Pregnancy and family responsibility
Sexual harassment
Under Federal and State laws, sexual harassment in the workplace is unlawful.
Our company will not tolerate harassment of any kind. Failure to obey this can lead to
instant dismissal.Conduct doesn't have to be deliberate or intentional to amount to sexual
harassment if it is unwelcome.
Sexual harassment is verbal, written or physical behaviour of a sexual nature that is
unwelcome and uninvited.
Some examples are:
Offensive comments, jokes or gestures
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Persistent leering or staring at you or your body
Flashing
Patting, pinching, fondling
Intrusive enquires into your private life
Jokes about someone's appearance body shape, etc.
Affirmative Action
Our affirmative action program is to seek the right person for the right job. We strive to
ensure equal access to promotion, training and development opportunities, and all other
aspects of employment to all classes and groups of individuals. We have a number of
affirmative action programs.-For more information please contact your supervisor.
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Incident Report Form
When did the incident occur?
Date: _____ / ___ / 20____ Time: ____: _______ AM /PM
Who was involved? (Please tick one or more boxes)
Office staff Store staff Customer Contractor Other
Was anyone injured? Yes No
Name of person injured:__________________________________________
Address:
__________________________________________________
__________________________________________________
Phone: Day: _____________ Night: ____________ Mobile: ____________
Was there a witness? Yes No
Witness details (Please tick one box only)
Office staff Store staff Customer Contractor Other
Name of witness: _____________________________________________
Address:
__________________________________________________
__________________________________________________
Phone: Day: _____________ Night: ____________ Mobile: ____________
What type of incident was it?
Minor injury Assault Trauma Vandalism
Break and enter Robbery Theft Other
Were the police contacted? Yes No
Where did the incident occur?_______________________________
What happened?
____________________________________________________________
____________________________________________________________
Describe the injury or damage
____________________________________________________________
____________________________________________________________
What type of treatment was used?
____________________________________________________________
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____________________________________________________________
What immediate action did staff members take?
____________________________________________________________
____________________________________________________________
I agree that this information about the incident is true.
Signature of injured party _________________________ Date____________
Who is reporting this incident?
Name: ________________________________________________
Position: ________________________________________________
Follow up actions taken:
____________________________________________________________
____________________________________________________________
Signature of reporting party________________________ Date: _____/____/_____
Opening and Closing the Premises
For the safety of yourself and others please follow these opening and closing procedures.
Opening the store
On arrival, please enter through staff entrance and sign in.
Secure your belongings in your locker
Sign for keys and count float in cash office
Secure your float in the cash register
Make sure all windows and doors are open and customer entrances are open and
clear of obstacles
Vacuum the floor if needed
Turn on all equipment eg radio, air conditioning
Turn on lighting
Closing the store
All staff must leave before closing procedure is started
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No friends or relatives allowed during closing procedure
Alarms will be activated by the Supervisor and security officer and all keys to be handed in to
the security officer and signed off in the key register
Ensure that only the appropriate lighting is left on
Check all toilets, fitting rooms and do a quick run around to make sure no one is left
in the store
Make sure all doors and windows are closed
Make sure all equipment is turned off eg radios, air conditioning
All registers clear and cash taken to the cash office
Note: If your car is parked in a dark place make sure a security officer accompanies you to
your vehicle.
Cash office security
After hours security is responsible for managing and maintaining building security
Keys to the office are provided to all executive staff and to other staff members, as the
occasion requires
Doors must be kept locked at all times
Two people must always be present when opening the safe and counting money.
Work Attendance
Punctuality
All staff are required to be in their working area ready to commence at the start of their
shift.
Please use the toilet, put your bags away and have a drink before commencing your shift.
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Public holidays
If you are rostered on a shift the day before or the day after a public holiday and you call in
sick, a doctor's certificate must be supplied. This means if a public holiday falls on a Monday
and you call in sick on either the Friday or the Tuesday a certificate will need to be supplied.
Probation period
All new employees will be on a three-month probation period. During your probation period
there will be monthly reviews. At the end of the probation period a meeting will be
organized for the employee, Dept. manager/supervisor and branch manager to discuss your
progress.
Absence forms
If you know you are going to be absent, you are obliged to phone in or have someone else
phone in before your start time on each day of non-attendance.Absence of more than three
consecutive days without notification may be considered abandonment of your job and may
result in instant dismissal.
Pay rates and bonus schemes
Pay rates
All staff members will be paid the award wage as stated by the Department of Industrial
Relations and covered under the award in each State. Furthermore, all staff members are
entitled to the following penalty rates:
Overtime
Weekend and late night penalty rates and loading
Public holidays
For more information regarding awards, refer to Industrial Relations website in your State.
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Staff members requiring additional hours
A memo will be distributed to all staff members one month prior to peak trading e.g.
Christmas, Easter or extended trading hours, to advise staff of additional hours available.
Please advise your Supervisor in writing if you are interested in additional hours.
Staff members who require a variation to the forthcoming roster e.g. annual leave, rostered
day off, or sick leave, should complete a Roster Variation Form, which is available from your
Supervisor.
The Supervisor who allocates the roster will take all requests into account, but it is not
always possible to please everyone. Preferences are given to employees who have been
with the company the longest.
Bonus schemes
The store recognises excellence in sales achievement and offers incentives to continue
enhancing sales performance in the future. Bonuses will be awarded to staff members who
achieve individual sales targets.
Monthly targets
Staff members are set achievable sales targets. Bonuses are paid as follows:
Sales assistants 2%
After 2 years of service 2.5%
Supervisors 3%
Bonuses are calculated as follows:
Employee A:
Sales target for the month was $25,000. Achieved amount was $30,000. Therefore $5,000 x
2% = $250.00, less the appropriate tax.
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All bonuses will be paid on the seventh day of the following month.
Performance appraisals
Motivating the Sales Team
One of the keys to motivate your team is to identify their individual strengths and
weaknesses. This is done by way of a Performance Appraisal conducted by the Supervisor
every three months.
Once individual strengths and weaknesses are identified, the Supervisor can:
assist with improving weakness through training
direct staff members to tasks that enhance strength and reward staff members
strengths.
When the Performance Appraisal has been completed, it is reviewed and kept by Personnel
Department.
Performance Appraisal begins with the job description, tasks and competencies. Use these
as the criteria against which key objectives will produce a performance judgement. The job
description provides the clear and definitive standards required for objective measurement.
Key points to successful performance appraisals
Staff need to be made aware of the appraisal system. It should never be a surprise. They
should know:
why they are being appraised
what they will be appraised on
how the appraisal will be carried out
how it will help them
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What use is made of the result?
To be effective, the appraisal should produce a positive, creative and learning
situation.
The appraisal is used for development rather than blame.
An important function is the creative aspect i.e. new targets, plans and goals need to
be set.
It is the Supervisor in conjunction with the Personnel Department to provide help in
setting new goals to gain commitment from staff to work towards achievement of
the agreed goals.
An appraisal is a valuable tool for the Personnel Department to identify strength and
weakness as well as prepare a training strategy to enhance and address the
development needs of staff members.
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Performance Appraisal Form
Employee's name: _______________________ Supervisor ____________________
Position Held: ___________________________ Time in Position: ________________
Period Appraised: ________________________ Position Status: FT / PT / CAS
Key:
O = Outstanding
H = Highly Proficient
S = Satisfactory
N = Needs improvement
Instructions:
Rate yourself on each of the areas by circling the applicable appraisal key letter.
Make any necessary comments in the space after each section.
The appraisal covers all areas of your job function.
The form has been designed to bring out your strengths and development needs. It will be
discussed with your Supervisor.
This appraisal is personal and confidential.
Future Objectives (complete this part in the discussion phase of your appraisal)
A ____________________________________________________
Action Date: ______/_______ /__________
B ____________________________________________________
Action Date: ______/_______ /__________
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C ____________________________________________________
Action Date: ______/_______ /__________
D ____________________________________________________
Action Date: ______/_______ /__________
A Sales, service and promotion of products and services Employee Supervisor
Shows a friendly nature and provides efficient service
to customers
O H S N O H S N
Provides accurate and helpful advice on products and
services available
O H S N O H S N
Actively sells and promotes all products and services O H S N O H S N
Actively sells additional merchandise at every
opportunity
O H S N O H S N
Comment: _______________________________________________________________
________________________________________________________________________
B Processing of sales transactions and procedures Employee Supervisor
Follows procedures for all transactions O H S N O H S N
Operates register correctly O H S N O H S N
Maintains cash security and follows cash handling
procedures
O H S N O H S N
Comment: _______________________________________________________________
________________________________________________________________________
C Complaint handling Employee Supervisor
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Handles complaints confidently and effectively O H S N O H S N
Knows level of authority O H S N O H S N
Comment: _______________________________________________________________
________________________________________________________________________
D General Employee Supervisor
Maintains a neat and tidy appearance at all times O H S N O H S N
Shows punctuality and reliability O H S N O H S N
Requires little supervision with work assignments O H S N O H S N
Demonstrates decisive, practical and reliable decisions O H S N O H S N
Shows good listening skills and speaks clearly and
concisely
O H S N O H S N
Demonstrates awareness of others' needs and is a
good team player
O H S N O H S N
Willing and able to accept greater responsibilities O H S N O H S N
Awareness to show regard for health and safety issues O H S N O H S N
Always looking to improve procedures and processes O H S N O H S N
Takes every opportunity to develop own skills O H S N O H S N
Comment: _______________________________________________________________
________________________________________________________________________
Major strengths
What areas of my job description do I excel in? _________________________________
________________________________________________________________________
Development needs
What specific areas of my job should I work towards improving my understanding or level of
skills? __________________________________________________________________
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________________________________________________________________________
Particular training or retraining I need to complete_______________________________
________________________________________________________________________
________________________________________________________________________
Supervisor's comments ____________________________________________________
________________________________________________________________________
________________________________________________________________________
Employee's signature: ________________________________ Date: __/____ /____
Supervisor's signature: _______________________________ Date: __/____ /____
Point of Sale Questionnaire
Department: _________________________ Staff Member: ____________________
Date: ________________ Conducted by: _____________________________
Level of service
What time period elapsed before the salesperson acknowledged the customer?
1 - 5 seconds 6 - 10 seconds 11+ seconds
What was the salesperson's first communication?
no greeting at all / customer made first contact
a simple acknowledgement e.g. "Hi"
an acknowledgement and greeting
Did the salesperson apologise for any inconvenience as customers lined in a queue?
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Yes No
Was the correct amount charged for the goods purchased?
Yes No
Did the salesperson offer any additional merchandise or service?
Yes No
Did the salesperson mention any promotion or specials?
Yes No
Did the salesperson enter the sale into the system without error?
Yes No
Cash sale only:
Did the salesperson
call the amount tendered by the customer?
Yes No
get change before placing amount tendered in cash drawer?
Yes No
count back the change to the customer?
Yes No
pass the change directly into the customer's hand?
Yes No
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Card sale only:
Did the salesperson
process the sale efficiently using electronic or manual methods?
Yes No
give the customer the correct copy of the receipt?
Yes No
pass receipt (& pen if appropriate) directly into customer's hand?
Yes No
pass back the card using the customer's name?
Yes No
Were the customer's goods placed in a bag or wrapped appropriately?
Yes No
What was the salesperson's farewell?
no farewell simple farewell e.g. "Thanks" farewell plus parting comment
Staff appearance
Is the salesperson wearing approved uniform or appropriate clothing?
Yes No
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Is the salesperson clean and tidy?
Yes No
Is the approved name badge being worn?
Yes No
General
Are promotions current?
Yes No
Have all old promotional materials been disposed of?
Yes No
Are all store facilities operational? (If not, report immediately)
Yes No
Are customer complaints handled accordingly?
Yes No
Comments and overall impression:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Signature: ____________________________________ Date: _____________
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Policies dealing with Theft
Preventing theft
Shop lifting is a huge cost to our business and must be reduced where possible. It is our
company policy that with the proper training you can prevent shoplifting before it happens.
Keep an eye on anyone acting suspicious, be alert and watch out for the signs. All staff must
be on the lookout for all acts of dishonesty and all incidents must be reported to the
Manager.
Our company policy is to prevent theft by the RGD method
R: Recognise suspicious behaviour
G: Good customer services
D: Danger spots and times
Recognising suspicious behaviour
Shoppers who loiter in an area for a long time
Persons shopping in a group who split up but maintain eye contact
Groups of school children with large bags
Shoppers who avoid a staff member's attention
Shoppers who wear unusual or bulky clothing
Good customer service prevents theft
Through good customer service there are ways to reduce the risk of shoplifting.
The preventive measures our company follows are:
Always count the number of items customers take into the change room (company
policy is no more than three items)
Always count the number of items when the customer is leaving the change rooms
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Check customer and staff bags
Acknowledge customers on entering and leaving the store
Always offer customers assistance if they are wandering around
Look for customers watching you and ask if you can help them
Check that all lighting is turned on and working
Ask customers holding goods if they would like to pay for them
Make sure counter displays are fully stocked
Always keep cupboards locked that should be locked
Always keep the staff room door closed
Always keep your staff lockers locked
Danger spots for theft
Always maintain a clear view across the shop and have no hidden areas that may provide an
easy opportunity to conceal merchandise. Areas of the store which are most likely to attract
thieves are:
Displays near exits
Change rooms
Toilets
Unlocked doors
End of aisles
Danger times for theft
Shoplifters are most likely to steal during danger times so be alert and remember RDG.
Keep your mind on the job during these times:
Late night and Saturday mornings
Holiday periods when store has busy peak times
Opening and closing times of the store
Staff changeovers
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While attending to fitting room, lay-bys, changing displays, restocking and while
using a ladder
As a preventive measure, the store safety policy states that three limbs must be on the
ladder at all times and a second person must support the ladder. That way they can also be
keeping an eye out for any suspicious behaviour.
Apprehension of shoplifters
Be aware as shoplifting can happen unexpectedly. Apprehension of shoplifters should be the
last resort. Our store policy is prevention is easy and a far more effective approach.
False accusation or wrong apprehensions may leave our store open to charges.
If you suspect a customer of stealing, try to encourage them to purchase the item by using
statements such as:
Would you like to purchase that item (use the name of the item if you know what
they have taken)
You can pay for that item at the register when you are ready
Do you know we have a lay-by system?
If the customer has left the store and has not paid for the goods, use the following
statements:
I am sorry but I think you have forgotten to pay for that item
Did you know you have not paid for the item in your possession?
Procedure if apprehension must occur
Alert another staff member to contact security by calling extension 71
Inconspicuously follow the accused if it is safe to do so
Never accuse the customer of stealing or touch them in any way
Ask the customer to accompany you to the security office
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If customer refuses to wait for security to arrive, inform security of the following details:
Which direction they went
Description such as what they wearing, nationality, anything that stands out, eg
tattoos, facial markings, hair colour and length
What they were carrying
What you suspect they stole
A note of where the goods were concealed
If they drove away, give a good description of the car, egcolour or registration if possible
Inform your Manager of all the details of the event and fill out a loss or apprehension report
immediately
Reporting theft
Our company policy is to follow all legal obligations so remember, when filling in a report,
never exaggerate. Never accuse or use discriminatory language (age, race, sex, etc) and
don't make judgements about why they have stolen or the situation they are in. Shoplifting
is a criminal offence and has to be dealt with according to the law.
When filling in the report, stick to the facts and keep all answers simple and clear.
Describe the facts, what you saw, where it happened, when it happened, what you did,
what happened then and what was said.
Customer's property
What is the Bag Check Code of Practice?
The Bag Check Code of Practice is a joint initiative of retailers and the Department of
Consumer Affairs and has been developed as a compromise between the interests of
privacy, retail and consumer groups.
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The purpose of the code is to provide principles and practices in relation to property checks
so that shoppers and retailers can approach the situation with knowledge of their rights and
obligations.
Our customer property policy adheres to the principles of the Code of Practice.
Our policy
Our store conducts property and bag checks in an attempt to control theft. All staff are to be
trained in the property and bag check procedures and be aware of the store's legal position.
Legal position
The store must notify customers of its intention to conduct property checks. A prominent
notice that clearly sets this out must be displayed at a point where customers can see it
prior to entry.
Store policy
Signage is prominently displayed at entrances to our stores establishing entry conditions,
which includes:
All bags and property will be checked when leaving the store
All school bags will be checked when leaving the store.
All shopping trolleys and prams will be checked upon leaving the store
Staff are encouraged to ask students to leave their school bags with security at the front
entrances.
The store's right to conduct property and bag checks
Legal position
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A customer who enters our store does so under licence. The shopkeeper may make that
entry conditional upon showing bags, trolleys, prams, cartons, parcels and containers for
checking.
Store policy
Personal handbags will not be checked unless larger than a sheet of A4 paper.
Legal position
Staff members who forcibly conduct a property or bag check against a customer's will, may
have committed an assault.
Store procedures
All customers upon leaving the store should be requested to open their bags or property for
inspection either at the register or the customer exit point.
Requests should be courteously made so as to minimise the degree of intrusion.
The employee should request that the customer personally open the bag.
There should be no direct physical interference by the employee.
Where a view of the bag is obstructed by a large parcel, trolley, pram, coat or similar item,
the employee may request the customer to remove the obstruction but should not touch
the obstructing item.
Dispute Procedures
Legal Position - A Shopper can refuse to allow a property/bag check. Employee's needs to be
absolutely certain that the shopper has committed an offence in order to detain or search
the shopper's processions.
Store Procedures
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The employee should not under any circumstances enter into a dispute with the customer
over a request to check bags or a suspected theft
Under no circumstances will the employee attempt to forcibly restrain the customer or
interfere with bags or property
If any dispute arises the employee should immediately summon the store Supervisor
The Supervisor will explain the conditions under which the customer entered the store. If
the customer again refuses to offer the bags and property for checking, the Manager may
ask the customer to leave the store and not return or summon a Police Officer
In summary, it is paramount that all Supervisors understand the rights and obligations of
customer's property.
Rights and Obligations of Customers
Rights
Customers have the right to know before entry that the store conducts property/bag checks
Right to refuse interference with your person, property or with your bags. Checking means
that staff can look and not touch.
Under the Property Code the store has agreed not to check a personal handbag unless it is
larger than the size of a sheet of foolscap paper
Obligations
Having entered the store knowing that property/bag checks are conducted, customers have
accepted the store's right to ask you to open you bags for checking.
IMPORTANT NOTES
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Customers whom refuse inspection of their property/bags can be asked to leave the store
and not return.
The Supervisor/Security Officer will only hold a customer and call the police where the
employee is sure that an offence has been committed.
If an employee forcibly detain you or forcibly searches your goods, and you have not
committed an offence, you are entitled to complain to the management or the police or
consult your solicitor to determine what legal rights you have.
If you feel that the Property Code has been breached, you should contact the Retail Traders
Association in your state.
Dealing with cash, credit, cheques and EFTPOS
Correct handling of payments during sales transactions (cash, cheques, credit cards and
EFTPOS) is important to minimise losses through fraud or theft. Errors by staff can include:
Giving the wrong change
Incorrect pricing
Discounting incorrectly
Not checking goods properly
We realise that occasionally people make mistakes and the possibility of a shortage in our
cash registers does exist. For this reason you will not be required to make up shortages.
However, this is a serious matter so if you regularly have significant cash shortages, you will
be notified and cash register procedures will be reviewed.
Cash register procedures
Always count your float in the cash office.
Never use another staff member's cash register.
Always cash up your own register
Total the sale and advise the customer the total amount.
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It is essential that you enter the amount the customer gives you to ensure the change
required is recorded and shown on your register.
Place the notes or chequeson the cash drawer. Do not put in the register at this
stage.
Make up the change.
Count the change back to the customer.
Place the amount tendered into the appropriate compartments of the drawer.
Close the cash drawer.
Failure to follow cash register procedures will result in disciplinary action
Cash handling security procedures
Supervisors need to watch for signs of cash theft. Some signs are staff who use the
no-sale button often or are working out of the drawer and have excessive over-rings.
Store policy is never open the drawer and give change. If a customer complains
about change given, record customer details. At end of day if the till does not
balance, the supervisor will contact the customer. Never take the customers word.
No unauthorised persons are permitted behind the counter for any reason.
Never leave your cash drawer open or the register open for any reason. Notify the
cash office when you require a cash pick up.
Cash is never to be counted in view of the public. Office staff and a security member
will collect cash and it will be counted in the cash office.
Security measures and procedures should never be discussed with anyone other
than the Manager.
Cheque transaction procedures
Bounced cheques cost our company valuable profits. A cost is incurred to the company
when a cheque is returned.
The following procedures are important for our store:
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Make sure the correct company name is used.
All corrections must be initialled by the customer.
Cheques should be signed in front of the Supervisor.
Make sure cheques are marked Not Negotiable with the correct date and amount
Ensure writing is in black or blue pen and never RED.
Our store does not except post-dated or 'cash'cheques (that is, cheques made out to 'cash').
You must phone for authorisation for cheques over $100.
All interstate and overseas cheques must be authorised by telephone.
Verify that words and figures match.
Verify that the signature on the cheque matches the identification used.
Identification can be either passport or drivers license
Record on the reverse side of the cheque address, phone number, license number and
identification used.
Credit card transaction procedures
The risk of credit card fraud is on the rise as over half the store transactions are paid for
using credit cards. Although we have an electronic system in our store, sometimes there
may be a system failure or default with the card from a damaged card. Manual procedures
must then be used.
Manual credit card procedures
Ensure sales voucher is filled in correctly.
Check card has not expired.
Check the name on the card matches the person using the card.
Verify the signature.
Ensure all information has been entered on all copies of the sales voucher.
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Ensure the correct amount is written on the docket.
Credit card purchases must be over $20.
No cash out can be given on credit card transactions.
For all transactions over the $150 floor limit, you must phone for authorisation.
Check the card against the stolen card list. If the number appears on the list, retain the card
and telephone the bank. They will advise what to do.
Electronic EFTPOS and credit card procedures
Check that the card has not expired.
Verify correct amount and circle Approved.
Initial the credit card slip.
Check the customer's signature.
Ensure the customer receives the correct copy.
Cash out can be given on EFTPOS but cannot exceed $200.
Purchases must be over $20.
End of shift procedures
Fifteen minutes before your shift ends, a Supervisor will complete a reading on your register
and EFTPOS machine.
At the end of each shift, it is your responsibility to take your cash drawer to the Cash Office.
In the presence of Cash Office staff or a Manager, the sales assistant will count and reconcile
takings.
The float amount will be left in the cash drawer.
All takings and reconciliation from register are to be placed in a security pouch with a seal a
signed by the sales assistant.
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All takings and floats will then be deposited into the safe.
Cash Office staff will re-count all takings and float.
Dealing with cash holding and banking procedures
Cash holding security procedures
Access to the safe is only available to Manager. The combination to the safe is kept
confidential.
For security reasons, the following must be adhered to:
All cash is kept in the safe at all times
A Manager and a staff member must be present to open the safe. There must always
be two people present.
The safe register must be completed whenever opening or closing the safe. Ensure
the safe register is filled in correctly with date, time, and reason.
To open the safe enter the combination and insert the Manager's key.
All money placed in the safe must be in pouches with reconciliation forms or banking
slips.
Banking procedures
Cash Office staff handle all banking procedures.
The safe is opened by the Manager and all cash is counted.
A banking deposit slip is then completed.
A security firm collects all money three times per week.
Returns policy
Our returns policy means customers can shop at our store, knowing that with a receipt, we
can offer convenient repairs, exchanges and refunds, provided goods are:
Returned within six week from date of purchase
In as-new order and condition
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Identification must be supplied. Acceptable ID includes any document or card with the
customer's name, address, signature and preferably a photograph, eg a driver's licence.
With a receipt
Customer can easily bring the goods back with a receipt to the service desk for a repair,
exchange or refund.
Without a receipt
If a customer has misplaced the receipt, the store can offer a repair or exchange if the goods
were purchased in-store, with acceptable ID. However, the store is not obliged to give a
refund if proof of purchase cannot be provided.
This service is in addition to customer's statutory rights to return faulty merchandise for
repair, exchange or refund.
When can a Supervisor refuse a refund?
In these cases we do not refund or exchange:
Where a customer wants to change goods because they are cheaper elsewhere.
When a fault was made known to the customer at the time of sale.
When the customer has caused the item to fail.
The service desk is to complete a refund form and refer all refunds to their supervisors for
approval.
Supervisor's duties
Check that all requirements of the refund policy are met.
Establish with the customer why goods are not required or satisfactory.
Check date of purchase with receipt and condition of goods.
Check the refund form is completed correctly and sign the Supervisor's section.
Check the customer's identification.
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Present customer with a cash or credit refund.
Sales targets formula
Sales targets are set based on a formula which takes into account previous trading patterns
and actual hours worked. Each employee is allocated a monthly target to achieve based on
this formula.
Team rewards
Team dinners will be awarded to Departments that achieve sales targets. It is the
Supervisor's responsibility to motivate their team members to achieve these targets. One
percent of the overall Department sales target will be deposited into a social fund.
Salesperson of the Month
All employees of the month receive a store gift voucher to the value of $50. Their photo is
placed in the staff room and on a public noticeboard and they are given a special award
badge.
Staff general security
Giving away products
You may be asked by customers and friends to give away merchandise but at no time should
you give away products. Giving away products is a very serious offence and a breach of store
policy and will lead to disciplinary action.
Procedures for staff purchases
After 3 months of employment a discount card will be supplied to all staff members. This
will entitle you to a 12% discount on all goods. This is for employee use only and not to be
abused and will be monitored.
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All staff purchases must be made before or after your shift. If you wish to make a staff
purchase see your Supervisor who will document the purchase. A check seal sticker must be
placed on all items purchased before your shift.
Staff holds: are permitted for 24hours and will be kept at the supervisors counter.
Staff lay-bys: are permitted with the same conditions as customer lay-bys.
Property
It is company policy that all bags must be available for inspection by the security officer or
Manager if requested. Staff are permitted only to enter and exit the store through
designated staff entrances. All emergency exits are alarmed and employees must only enter
if there is an emergency.
Lockers
Lockers are provided for all staff to keep their personal effects in while at work. It is each
individual's responsibility to make sure their locker is locked
Valuables
Do not bring valuables to the store, as the store will not be responsible if they go missing
Stock control policy and procedures
Inventory control
The store has clearly defined policies and procedures in place and it is the Supervisor's
responsibility to ensure inventory control is efficient, as loss of stock and damages result in
a loss of profit.
The buyer's role
Forecast sales and budget orders
Keep up-to-date with trends
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Order merchandise
Ensure a variety of merchandise
Understand the target market
Monitor stock levels
Supervisor's role
It is the Supervisor's responsibility to train staff members in the correct procedures for
receiving stock.
Minimise shrinkage (theft and waste)
Control the level of mark-downs
Monitor stock levels
Monitor fast and slow sellers to avoid sell-outs
Coordinate stocktake and prepare reports for Management
Ensure all merchandise is correctly priced, following Company procedures
Monitor re-order levels for fast selling merchandise
Liaise and communicate with the buyer over the sales performance of stock
Inform all staff of new product lines and price changes
Staff member's role
Check the load
Check delivery records and procedures
Check the quantity and quality at delivery
Check the quantity and quality after delivery
Store the stock securely
Deal with damaged and missing stock after delivery
Inform Supervisor of any damaged or missing stock
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Stock handling
Stock handling and storage of goods
Care must be taken in the storage of goods to ensure against damage and theft. A
fundamental part of your supervisory duty is to ensure the personal safety of your staff
members, and to provide a safe working environment. For more information, refer to the
Safe Work Practices Manual. A few issues relating to the safe handling of stock are:
All fire exits and fire extinguishers should be kept clear of stock for easy access in
case of an emergency
Stock is to be stacked to prevent it from falling on staff members and customers
There should be at least 30cm clearance above stock and around fire extinguishers
Empty pallets should not be stacked too high and are to be laid down flat and not
stored on their sides
Be aware that poor manual handling accounts for the majority of accidents in the retail
environment
Stock safety
Stock needs to be placed in security areas and put away as soon as possible. Store
procedures are to handle stock in the following manner:
Special items, such as handling stock, must be stacked in the appropriate way and
hung on the appropriate fixtures
Fragile items should not be stacked on other stock or on high shelves
Perishable items must be stored at the specified temperature to keep them fresh
e.g. milk and frozen foods
Flammable items should be kept clear of heat or combustible materials
Storage for hazardous items must follow manufacturer's storage and handling
instructions
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Stock re-orders
Although our Company has a Stock Controller and Buyer, the Supervisor still plays an
important role in monitoring stock controls. Our policy is to always try and avoid the
situation of stock out by frequently communicating with the buying office. By doing this, all
staff members can be aware of planned promotions, target markets and be informed of new
stock items and trends for the new season.
An empty looking store or an overcrowded store will impact badly on sales.
Re-stock shelves and display stands from stock in reserve
Fax or email all order requests to the buying department with an order number
File order forms in due date order
Place orders on a regular basis; weekly or more often if required
Supervisors are responsible for re-ordering all standard stock lines.
The buyer handles all other items, which are known as specialty lines.
Store pricing policy
The Store's image is up to date, stylish merchandise. The type of customer our store attracts
is more image-conscious than price-conscious.
Our merchandise is medium- to high-priced, however, our emphasis is on supplying a wide
selection of quality merchandise as well as providing excellent customer service.
Furthermore, our store is known for our end of season mark-down sales where merchandise
is cleared at bargain prices.
Considering this, the purpose for a store pricing policy is for prices to reflect and fit in with
the store image, so that prices are competitive and most importantly, the store makes a
profit.
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Mark-up and profit margin policies
Mark-up and profit margin polices are confidential to Management, the Stock Controller,
Buying Department and selected Supervisors.
There are two key elements to consider when developing a pricing policy. These are mark-
ups and margins.
Price Points are to be as follows:
Below $1: to be priced in even multiples of 10c, 20c, 50c, 70c, etc.
$1 and $2: as even dollar amounts $1 and $2
Over $2: prices should end in .95c so $3 becomes $2.95, $5 becomes $4.95 and $10
becomes $9.95
Over $30: revert to even dollar amounts $1 below the $10 multiples. So $50 becomes $49,
$70 becomes $69, $100 becomes $99 etc.
Mark-up
Mark-up is the amount added to the cost price of merchandise to give a selling price that
meets profit requirements. All items are to be marked up 150% of their true cost price.
The cost price should be multiplied by 150% and added to the cost price. For example:
Cost Price Mark-up Selling price
$10 150% $25 rounded to price point of $24.95
$20 150% $50 rounded to price point of $49
$50 150 % $125 rounded to price point of $125
$100 150 % $250 rounded to price point of $249
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Profit margin
Profit margin is the estimated gross profit that would be achieved by selling goods at full
selling price. It is calculated by deducting the cost of goods sold from the selling price. For
our store to be viable, a profit margin of 60% needs to be achieved.
$25 - $10 = $15 profit.
To convert this to a %, use the formula below:
((selling price - cost price) selling price) 100 = Profit Margin
(($25 - $10) $25) 100 = ($15 $25) 100 = 0.60 100 = 60%
It is important to understand that marking up merchandise 150% will only achieve a 60%
profit margin. If merchandise is sold for less than the recommended selling price for reasons
such as stock losses, mark-downs, shrinkage etc., the overall gross profit is reduced.
Some elements that contribute to the level of profit margin and mark up are:
cost price
freight
storage
wages
rent
Supervisor's role in mark-downs
All supervisors should be aware of the reason for mark-downs. Remember unwanted stock
takes up valuable space and costs our store valuable profits. It is the supervisor's
responsibility to keep an eye out for slow-moving stock and suggest strategies to rectify the
problem. Supervisors must keep good records so that Management can keep track of what
is being marked down.
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When should supervisors mark-down merchandise?
Merchandise is to be marked down at the end of its selling season or if it is slow moving,
obsolete, damaged or priced higher than that of our competitors. It is preferred mark-
downs are planned for holiday programs or special events.
Benefits of mark-downs:
Increase the traffic flow of customers
Increases the sales of other merchandise in store
Procedures for Mark-downs
Supervisors must carry out a weekly inspection of merchandise in their department
and fill in report of slow moving merchandise and suggest mark-downs figures
Mark-down sheet is sent to the Stock Controller for approval and sign same
Once the mark-down sheet is approved and signed by the Stock Controller, it is the
Supervisor's responsibility to inform all staff members of the price mark-downs to
prevent embarrassing situations of staff members quoting old prices to customers
The mark-down sheet is to be filed in the mark-down book, which is kept under the
counter for easy reference to all staff.
Supervisors have permission to discount up to 15% on any items that are damaged or
stained without permission from the buying office. However it must be recorded on the
mark-down sheet. It is important for shrinkage and profit records that these are recorded
accurately.
A Mark-down Worksheet is attached later in this document.
The Supervisor should carry out spot checks to ensure:
All staff mark merchandise with the correct price and are following store policy
All price tags and tickets have been changed
Staff or customers are not fraudulently changing mark-downs
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Price marking
Price marking is a critical area, which, if not properly controlled, can cause major problems
with customers.
All price tags are to be attached to the inside label of clothing garments.
Never insert plastic tags through the garments.
Other merchandise price tags are always to be placed on the right-hand corner of
the item.
When a price is reduced, over stamping the old label with the mark-down price is
permitted.
When the price goes up, all of the old label must be removed without fail.
The price of merchandise on sale is correct and clear to the customer.
Coordinating stocktake
Stocktake is the physical count of stock that is in the store at a certain period of time being a
true measurement between the physical stocktake figures and the book stock.
Supervisor's role
Preparation
Preparation and supervision are the key to a successful stocktake. Supervisors need to keep
updated. Give staff members clear direction and training of the store's procedures. Tasks
should be allocated to staff members. Furthermore, all tasks on the stocktake preparation
checklist must be carried out.
Rosters
It is the Supervisor's responsibility to consider budget allocation and time constraints.
Always ensure extra staff are rostered on to attend to customers' needs during this period.
Stocktake is only to take place outside normal trading hours. If time constraints allow, finish
stocktake before 10am.
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Supervisor's responsibilities
When in progress:
Allocate tasks in a logical order to ensure efficient progress and good end results.
Stocktake should be completed in the shortest possible time.
Issue staff members with stock sheets and direct them to appropriate area to count.
As a control measure, carry out random spot checks on staff counting and recording
procedures to ensure that tasks are completed.
On completion:
After the stocktake has been completed for a certain area, another staff member carries out
a spot check. It is Company procedure to choose five fixtures from an area and complete
their own stocktake.
These records are then compared with the original stocktake documentation and, if there is
a discrepancy, a report is compiled.
Discrepancies must be investigated and reported when preparing accurate reports for
Management. (Discrepancy Report attached)
Stocktake checklist
Preparation and supervision is the key to successful stocktake. All Supervisors are to
ensure all tasks are carried out before commencing a stocktake
Develop a concise set of instructions that can be used. Explain how to carry out
stocktaking to a new staff member
Design a roster, allocate group members areas of responsibility
Conduct a price check of tagging and bar code of fixtures
Be aware of cut-off points for orders, deliveries and shelf filling. Plan a cut-off day or
time that these activities are carried out
Ensure lay-bys are put aside and follow up and record any stock out of store on loan
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Design a floor plan of the department where all fixtures are labelled and numbered
for easy identification. Numbered stock sheets are allocated to correct staff
members
Discrepancy reports
Obvious discrepancies to identify:
Mark-downs that are not recorded for known shrinkage e.g. damage and theft
Incorrect registration of mark-downs and transfers in and out
Stock in the wrong position on fixtures for example, in reserve areas, above eye
level, on display, in drawers or closed bins
Bar code for an item that does not correspond with fixture bar code
Invoices or credits input incorrectly
Staff incorrectly counting or pricing items
Stocktake staff training
It is the Supervisor's responsibility to ensure all staff members are trained in the correct
procedures. The following instructions will make a good starting point for training staff.
To ensure a successful stocktake, please observe the following instructions:
Your Supervisor will issue you with the appropriate stocktake sheets
and direct you to the area you will be counting.
You must count each fixture as a separate unit because each has a
separate stocktake sheet.
Every fixture is numbered and this number appears on the top-right
hand corner of the stocktake sheet.
You must count each shelf from left to right, starting at the top shelf
and working your way down to floor level.
You must not interfere or talk to other staff members when they are
counting.
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You must not leave your fixture in mid count.
You must always count from physical stock to the stocktake sheet to
minimise counting errors
You must make sure the fixture bar code corresponds with the
product bar code.
Your supervisor will carry out random spot checks for quality control.
Our Company has developed a coloured tagging system as a communication tool to ensure a
successful and accurate stocktake.
Green stickers indicate that all items are checked and correct.
Red stickers indicate there is a problem with the count or the bar code needs
investigating.
Yellow stickers indicate counting is in progress and a Supervisor is to be called for
clarification.
Blue stickers indicate second count has occurred.
Preparing accurate reports
When the physical count has been completed and recorded on stock sheets, stock sheets
need to be collated and put in fixture numerical order. Check that all addition, cross
calculations and totals are correct. Keep an eye out for obvious discrepancies. After
investigating any obvious discrepancies and reporting, it is the Supervisor's responsibility to
collate into a report as follows:
Computer Data
Department Name:
Sales figures:
Stock level computer print out for the department:
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Previous stocktake results for comparison:
Manual Data
Stocktake sheet for actual stock figures for the department:
Shrinkage sheets, mark-down sheet and a discrepancy report:
Shrinkage report
Our store allows for 3% shrinkage in our budget as we realise mistakes will happen.
However, effective stock control can minimise shrinkage. If you neglect control of shrinkage,
you may be out of a job. It is the Supervisor's responsibility to ensure all shrinkages are
recorded correctly on the shrinkage sheets.
Possible valid reasons for shrinkage:
Goods expire or go past their Use By date.
Thefts sometimes occur.
Items are wrongly priced.
Goods sometimes are accidentally damaged.
Display items get damaged or soiled.
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Stocktake sheet
Fixture number:
Product
reference
Quantity Price Total
quantity
Total
value
167929 $1.55 15 $23.25
723496 $2.45 4 $9.80
235782 $6.55 45 $294.75
1122341 $7.45 2 $14.90
Staff member: _________________________________________
Supervisor: ____________________________________________
Date: ____/____/____ Time: ____:____AM/PM
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Shrinkage sheet
Description Ref No Dept Qty Price New
Price
Reason Total
loss
Gardening Gloves 4702 7 1 $12.95 $7.95 Damaged $5.00
Staff member: _________________________________________
Supervisor: ____________________________________________
Date: ____/____/____ Time: ____:____AM/PM
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Discrepancy sheet
Area Fixture/
Item
Description Price Original
count
Recount Variance
Socks I/N:
2891335
Scheurich 14 x
12cm Royal
Shine Indoor
Pot
$11.95 20 17 3
Staff member: _________________________________________
Supervisor: ____________________________________________
Date: ____/____/____ Time: ____:____AM/PM
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Mark-down Worksheet
Fix-ture
No.
Product Brand Size Bar Code Qty Price Mark-
down
%
New
Sale
Price
I/N:
2012170
Hume
Doors &
Timber
Flush
Door
Hume 2040 x 820
x 35mm
Primecoat
Honeycomb
97341249907 11 $29.95 25% $22.95
Staff member: _________________________________________
Supervisor: ____________________________________________
Date: ____/____/____ Time: ____:____AM/PM
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Store Safety Policy and Procedures
Supervisor's responsibility
Supervisors are accountable for the working environment under their control and for
ensuring all staff members are given equipment, information and instructions necessary to
ensure a healthy and safe work environment. Supervisors should ensure that individuals
maintain a high level of awareness when it comes to health and safety issues and encourage
all staff to carry out safe work practices by reporting any faulty equipment immediately.
Employees' responsibility
Employees are expected to take reasonable care with regard to the health and safety of
others at the work place and to co-operate with the employer in ensuring a safe and healthy
work environment. Employees must report potential or health and safety hazards to their
Supervisor using the correct reporting procedures.
The store aims to provide both our staff members and our customers with a safe and
healthy environment. A safe working environment is not something that just happens: you
have to make it happen!
Accident prevention
All employees are to be conscious of the factors that contribute to store accidents.
These factors include such things as:
Slippery floors from oil, chemical or other dripping substances
Electrical equipment with frayed cords
Using ladders incorrectly by not having three limbs on the ladder at all times.
The key to accident prevention is for all staff and management to always maintain:
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Safe environment: inspect your work area regularly for dangerous objects that people could
trip or fall over
Safe equipment: check equipment for faults before use and always use the correct tool for
the job
Safe behaviour: perform your duties in a safe manner and only use equipment you have
been trained to use.
Always remember Prevention is better than cure and you should:
Constantly be on the look out for potential hazards
Never endanger yourself or others for any reason
If you identify a potential hazard take immediate action to prevent an accident occurring
First aid treatment
The store's safety policy is for all Supervisors to be trained in First Aid Procedures and be
able to remain calm and deal with any emergency situation if it arises.
First Aid boxes are located in every department behind the Supervisor's desk, cashier's
office and staff room.
If an accident does occur, and medical attention is needed, you must advise the Supervisor
as soon as possible. Furthermore, if a customer or non-employee has an accident, it is very
important that they are happy with the attention and first aid treatment they are receiving.
Be sympathetic and caring to the person involved, but most importantly, do not admit fault.
For information on recording an accident, refer to your Induction Handbook.
It is extremely important that you make sure after using any medical equipment that it is
cleaned and you have told the Supervisor on duty what was used, so he or she can restock
the First Aid kit. If you can handle the problem, do so, but if not, see your First Aid Officer in
the workplace.
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If an emergency situation arises, the following steps should be followed:
Remain calm and assess the situation
Ensure the scene is safe for you, others and the casualty
Work as a team
Delegate a responsible staff member to keep other customers away from the
incident
First aid treatment for non-electrical burns
Remain calm and assess the situation
Put out the flame
Use plenty of cold water for at least ten minutes or until the ambulance arrives, if
needed
Call 000 for an ambulance
Do not apply creams, ointment or lotions
Do not break blisters
If the patient is in shock, place him or her in the recovery position
First aid treatment for cuts (incisions and lacerations)
Remain calm and assess the situation
Ensure you do not come into contact with the patient's blood; wherever possible,
use gloves
Check the wound for any foreign matter
Apply pressure to stop any bleeding
If necessary, call 000 for an ambulance
Do not use adhesive dressing
Immobilise and elevate the injured limbs if injuries permit
Do not apply creams or lotions; only use saline lotion if it is available
First aid treatment for sprains
Remain calm and assess the situation
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Ask a responsible staff member to keep the area clear so no one else slips
For the pain:
Use an ice pack
Elevate the sprain
Arrange for someone to assist the customer in getting any further medical treatment
if required
Spillages
Our Company has provided a non-slip floor surface to help minimise the risk of slipping or
falling. There are two main types of spillage: liquid or dry. When you cause or note a
spillage, your responsibility is to prevent an accident occurring by attending to the area in
the appropriate manner until the floor is safe to walk on again.
Guard the spillage to prevent staff members or customers slipping
Ask a nearby staff member to obtain Caution Wet Floor signs and place one at each
end of the spillage
If no one is close by, place a carton or trolley over the spillage
Check to see if the spillage is chemical, which may require special cleaning
Obtain cleaning equipment and clean the floor ensuring every trace of the hazard is
removed
Dry any wet areas
When the floor is completely dry, remove the signs and place them back in to
storage
If a staff member cannot deal with a hazard, you should immediately report to the
Supervisor on duty.
Safe work practices
Always remember with safe work practices: Prevention is better than cure. You should never
endanger yourself or others.
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It is every staff member's responsibility to play their role in ensuring their work place is a
safe and healthy place to work, and that set standards are met in accordance with
Occupational Health and Safety issues and store policy. All staff members in our store are
responsible to bring work place hazards to the Supervisor's attention if you cannot deal with
it yourself.
Employees who follow in safe work practices will dramatically reduce the risk of an accident
occurring. Should you have any concerns with safety issues, it is a good idea to report them
to the Store Safety Committee.
Safe manual handling
It is essential that all staff members follow the Manual Handling Code of Practice.
Any manual handling which requires a staff member to exert force to lift, lower, push, pull,
carry or otherwise move, can be at a potential risk of injury. Retail staff will be involved in
manual handling tasks every day. It is important to be aware of the potential for accidents
and know how to prevent them. Being aware and practicing the correct manual handling
techniques will enable you to work accident and injury free.
To prevent or reduce injuries, we need to identify, assess and control manual handling risks.
In our store, these risks relate to our work methods as well as the design of our work areas.
Refer to the Safe Manual Handling manual for more guidelines to assist you in maintaining a
safe work environment. Supervisors are to encourage staff members to follow the
guidelines for safe manual handling as well as attend regular training sessions held by an OH
and S representative.
Broken glass
Broken glass should not be picked up by hand. Always use a dustpan and brush and dispose
of in a safe manner. If there is no recycling bin, then wrap the broken glass in newspaper.
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Hair
Hair must always be tied back securely and the hairnets and caps supplied are to be worn at
all times when handling food.
Footwear
Suitable footwear helps prevent slips and falls by providing better grip on floors. So, for your
safety, closed in rubber sole shoes are a must in case of an accident.
Protective clothing
Always use all supplied protective equipment and clothing. This equipment is provided for
not only your protection, but for your safety as well. This includes wearing suitable footwear
and uniform for your particular job. Where required, protective clothing is supplied and
must be worn to protect yourself against injury.
This clothing was designed with staff safety in mind, does not restrict movement, and allows
loads to be carried close to the body. If you are spending a long time in the freezer and cold
rooms, use the freezer jackets provided, which are on the hook outside the door of the
freezer.
Gloves
Protective gloves are supplied to protect your hands from cuts, abrasions and extreme
temperatures. To ensure safe handling of food from the oven or freezer, gloves must be well
fitting and not worn through. Mesh gloves are to be worn on your non-dominant hand when
slicing or cutting meat and using the slicing machine.
Aisles and passageways
Always ensure aisles and passageways are free of rubbish, boxes and merchandise, as we
must provide a safe and convenient environment for our customers and staff members at all
times. Never leave cleaning equipment in aisles. Always remember to tidy as you go.
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Use of equipment
Some of the equipment in your department may be dangerous if used incorrectly. Do not
use equipment until your department Supervisor has shown you how to use it effectively
and safely.
You must sign an acknowledgment form that you have read The Work Safe Practices for
your department. It is your responsibility to use equipment correctly.
If you notice any damaged or faulty equipment, report it to your Supervisor so a tag can be
placed on the item. Never put yourself or others at risk by trying to fix faults. If you see a
piece of equipment with a tag, do not attempt to use it.
Carton cutters
The most common piece of equipment used in all departments is the carton cutter. Carton
cutters are also one of the major sources of injury.
When using a carton cutter, follow these simple rules:
Always keep the blade sharp and cut away from your body
Make sure fingers or other body parts are not in harm's way
Be careful to avoid damage to yourself or stock - always keep your eyes on your
work
Always retract the blade after use
Do not leave carton cutters unattended in the selling area
Ladders
Safety steps and ladders should be used whenever you have to reach above head height to
perform any of your tasks:
Check the steps and ladders are in good condition before use
All ladders should be adequately supported at the base
Do not use a ladder on a wet, slippery, or uneven surface
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The person using the ladder must always have 3 limbs on the ladder at all times
A second person should support the ladder
Never climb higher than the third rung from the top of the ladder
Always work within easy arms reach from the ladder
Ladders should be stored away when not in use
Dangerous goods and hazardous substances
Dangerous goods and hazardous substances are goods and chemicals that can cause harm
or injury to one's health. Our store provides Material Safety Data Sheets (MSDS). These
contain information describing the product's safe handling instructions, health hazards and
first aid procedures.
Dangerous goods are items, which are explosive, flammable, corrosive, chemical reactive,
combustible, toxic, radioactive or infectious. These substances come in many forms, for
example cigarette lighters, pool chlorine and fire lighters. A coloured diamond on the
packaging can usually identify these products.
Hazardous substances are liquids, solids, vapours, gas, fumes and dust. These all have the
potential to cause harm or injury to one's health. Some dangerous goods are also hazardous
substances, for example oven cleaner. Colourful writing and warning pictures can identify
these goods.
Safety audits
It is a requirement of our store to carry out regular safety audits to assess any possible
problems or hazards in the workplace. These audits are carried out on a weekly basis.
Employees should inform their Supervisor or Manager of any hazard or safety issue they
have come across. When recognising a hazard, Supervisors are to carry out inspections of all
areas in their specific department with employees identifying everything that could possibly
be harmful. Information gained from carrying out an inspection is essential for ensuring the
workplace is safe and assists in recognising training needs.
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By using a checklist to identify risks, Supervisors will be able to recognise safety factors such
as:
What moves
What substances you work with
What equipment you use
How and where you use these things
The way you do things
Cleaning, maintenance and repairs.
Potential hazards
Avoiding hazards, such as the following, will not only eliminate potential risk, but also
ensure that in case of a more serious problem, quick and safe evacuation can be carried out
in an emergency:
Floor hazard in spills and boxes left lying around
Bad lighting, damaged equipment, fixtures and fittings
Trolleys, ladders or shelving not put back in correct place
Stock that has been packed away or stacked incorrectly
Risk control
To be able to provide a healthy and safe work environment, our store must have the
following process:
Identify hazards in the workplace
Assess risks that may result from a hazard
Control those risks
For more information on risk control, please refer to the Maintain Store Safety brochure.
OH and S issue resolution
What procedures should you follow if you notice an OH&S issue in your store?
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Communication is important, and staff should be trained in the following procedures:
Advise customers of hazards by using signs for example, an Out of Service tag)
Whenever possible remove the hazard completely
Know who to approach to repair the hazard
In any case the supervisor or Store Manager must be informed
Some OH and S issues are a spill of a chemical, faulty piece of equipment, faulty playing
equipment or broken furniture. Remember to always follow safe work practices as
Prevention is better than cure, and never attempt to use any piece of equipment with an
Out of Service tag.
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Store Security Policy and Procedures
Our aim
The Store insists on the highest level of security to prevent theft and insure a safe working
environment for staff members and customers alike.
Staff general security
Giving away products
You may be asked by customers and friends to give away merchandise but at no time can
you give away products. Giving away products is a very serious offence and a breach of store
policy and will lead to disciplinary action.
Procedures for staff purchases
After three months of employment a discount card will be supplied to all staff members.
This will entitle you to a 12% discount on all goods. This is for employee use only and not to
be abused and will be monitored.
All staff purchases must be made before or after your shift. If you wish to make a staff
purchase see your Supervisor who will document the purchase. A check seal sticker must be
placed on all items purchased before your shift.
Staff holds: are permitted for 24hours and will be kept at the supervisors counter.
Staff lay-bys: are permitted with the same conditions as customer lay-buys.
Property
It is company policy that all bags must be available for inspection by the security officer or
Manager if requested. Staff are permitted to enter and exit the store only through
designated staff entrances. All emergency exits are alarmed and employees must only enter
if there is an emergency.
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Lockers
Lockers are provided for all staff to keep their personal effects in while at work. It is each
individual's responsibility to make sure their locker is locked
Valuables
Do not bring valuables to the store, as the store will not be responsible if they go missing
Equipment security
Our store has bought equipment to make our company more efficient and professional.
Equipment is a valuable asset and it is the Supervisor's responsibility to ensure the following
rules are adhered to:
Equipment must be serviced on a regular basis
Staff member must treat the equipment with respect
All staff must be appropriately trained in the use of equipment and associated
occupational health and safety issues
Equipment must be used in an appropriate manner and not for personal use
All equipment should be stored in a locked cupboard
Keys are to be held by the Supervisor at all times
Equipment must not be left lying around as theft could occur
Visitors and contractors access
For insurance purposes all visitors and contractors must fill out their details in the Visitors
Register before carrying out their business in the store. They must report to the office on
arrival where they will sign the Visitors Register, be issued with a security badge and
informed of their access to various locations within the store. Security will be notified to
escort visitor to required location.
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Deliveries
The receiving bay must be locked at all times. All deliveries are received through the
receiving bay and never the front entrance. All goods must be received either by the store
person or a department Supervisor and signed for after checking the delivery. This is one of
the main places where theft can occur so extra vigilance is called for.
Armed robbery procedures
Our company policy is to provide a safe and healthy working environment. Do not attempt
to be heroic: your life is worth more than any amount of money.
However, in the event of a hold up the following procedures must be followed:
Remain calm and quiet
Stand still and do not make any sudden movements
Obey the offender's instructions
Do not draw attention to yourself, and speak only when spoken to
Avoid direct eye contact and do not stare at the offender
What to do immediately after the offender has left the scene:
Arrange first aid assistance if required
If possible note direction and means of departure, not putting your self at risk.
When safe to do so advise security and the Manager who will ring the police 000 and
contact head office
The Manager will seal off the area where the event took place
The Manager in charge will ask all witnesses to remain until the police arrive and you will be
allowed to your notify parents and family, should you be required to remain in the store
The Manager will complete the appropriate forms
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Store safety tips
Do not chase offenders.
Observe the dress and physical appearance of the offender but only if it is safe to do
so.
Assess the offender's height against a display stand, post or doorway.
Do not attempt to answer a ringing telephone
Do not attempt to delay the departure of the offenders because the sooner they
leave, the sooner you are safe.
Do not discuss the incident with other employees until you have spoken with the
police.
Do not drive a vehicle immediately after a hold up as it is possible that you could be
affected by shock.
Do not touch anything as important evidence could be destroyed.
We recommend that you take up any company offers of trauma counselling.
Opening and closing the premises
For the safety of yourself and others please follow these opening and closing procedures.
Opening the store
On arrival, enter through staff entrance and sign in.
Secure your belongings in your locker.
Sign for keys and count your float in the cash office.
Secure your float in the cash register.
Make sure all windows and doors are open and that customer entrances are open
and clear of obstacles.
Vacuum the floor if needed
Turn on all equipment such as radios and air conditioning
Turn on lighting
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Closing the store
All staff must leave before closing procedure is started.No friends or relatives are allowed
during closing procedure.
Ensure that only appropriate lighting is left on.
Check all toilets, fitting rooms and do a quick run around to ensure no one is left in
the store.
Make sure all doors and windows are closed.
Make sure all equipment such as radios and air conditioning are turned off.
Ensure that all registers are cleared and the cash is taken to the cash office.
Alarms are to be activated by the Supervisor and security officer and all keys are to be
handed to the security officer and signed off in the key register
Note: If your car is parked in a dark place ensure that a security officer accompanies you to
your vehicle.
Cash office security
After hours security is responsible for managing and maintaining building security.
Keys to the office are provided to all executive staff and to other staff members, as the
occasion requires.
Doors must be kept locked at all times.
Two people must always be present when opening the safe and counting money.
Policy for dealing with cash, credit, cheques and EFTPOS
Correct handling of payments during sales transactions (cash, cheques, credit cards and
EFTPOS) is important to minimise losses through fraud or theft. Errors by staff can include
giving the wrong change, pricing, discounting incorrectly, not checking goods properly.
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We realise that occasionally people make mistakes and the possibility of a shortage in our
cash registers does exist. For this reason you will not be required to make up shortages.
However, it is a serious matter if you frequently have significant cash shortages. You will be
notified and your knowledge of cash register procedures will be reviewed.
Cash register procedures
Always count your float in the cash office.
Never use another staff member's cash register.
Total the sale and advise the customer the total amount.
It is paramount to enter the amount the customer gives you to ensure the change required is
recorded and shown on your register
Place the notes or cheques on the cash drawer; do not put it in the register at this
stage.
Make up the change.
Count the change back to the customer.
Place the amount tendered into the appropriate compartments of the drawer.
Close the cash drawer.
Failure to follow cash register procedures will result in disciplinary action
Always cash up your own register
Cash handling security procedures
Supervisors need to watch for signs of cash theft. Some signs are staff that use the no-sale
button often or are working out of the drawer and have excessive over-rings.
Store policy is never open the drawer and give change. If a customer complains about
change given, record the customer's details. At the end of the day, if the till does not
balance, the supervisors will contact the customer. Never take the customer's word alone.
No unauthorised person is permitted behind the counter for any reason.
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Never leave your cash drawer or the register open for any reason. Notify the cash
office when you require a cash pick up.
Cash is never to be counted in view of the public. Office staff and a security member
will collect cash and it will be counted in the cash office
Security measures and procedures should never be discussed with anyone other
than the Manager
Cheque transaction procedures
Bounced cheques cost our company valuable profits. A cost is incurred to the company when
a cheque is returned.
The following procedures are important for our store and must be used:
Ensure that the correct company name is written on the cheque.
All corrections are initialled by the customer.
Cheques should be signed in front of the Supervisor
Make sure cheques are marked Not Negotiable with the correct date and amount.
Ensure writing is in black or blue pen never RED.
Our store does not except post-dated or cash cheques
Telephone for authorisation for cheques over $100.
All interstate and overseas cheques must be authorised by telephone
Verify that words and figures match
Verify that the signature on the cheque matches the identification used
Identification can be either passport or drivers license. On the reverse of the cheque record
the customer's address, phone number, license number and identification used.
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Credit card transaction procedures
The risk of credit card fraud is on the rise, as over half the store transactions are paid for
with a credit card. Although we have an electronic system in our store, sometimes there
might be a system failure or a damaged card. Manual procedures must then be used.
Manual credit card procedures
Ensure the sales voucher is filled in correctly
Check that the card has not expired
Check the name matches the person using the card
Verify the signature
Ensure all information has been indented on all copies of the sales voucher
Correct amount on docket
Purchases must be over $20.00
No cash can be given on credit card transactions
For all transactions over the $150.00 floor limit, please phone for authorisation
Check card against stolen card list, if the number appears on the list, retain the card and ring
the bank (The bank will advise what to do)
Electronic EFTPOS /Credit Card Procedures
Check card has not expired
Verify correct amount and circle approved
Initial credit card slip
Check signature
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Ensure customer receives the correct copy
Cash out can be given on EFTPOS
Cash cannot exceed $200.00
Purchases must be over $20.00
End of Shift Procedures
Fifteen minutes before your shift ends a Supervisor will complete a reading on your register
and EFTPOS machine.
At the end of each shift it is the staff member's responsibility to take the cash draw to the
cash office
In the presence of cash office staff or a Manager the sales assistant will count and reconcile
taking
The float amount will be left in the cash drawer
All takings and reconciliation from register are to be placed in a security pouch with a seal a
signed by the sales assistant
All taking / float will then be deposited into the safe
Cash office staff will re-count all takings and float
Cash Holding - Security Procedures
Access to the safe is only available to Manager (the combination is confidential), for security
reasons the following must be adhered to:
All cash is kept in the safe at all times
A Manager and a staff member must be present to open the safe. (Always two people
present)
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Then safe register must be completed whenever opening or closing the safe. Ensure the safe
register is filled in correctly with date, time, and reason
To open the safe enter the combination and insert Manager key
All money placed in the safe must be in pouches with reconciliation forms or banking slips
Banking Procedures
Cash office staff handle all banking procedures
Safe is opened by the Manager and all cash is counted
A banking deposit slip is then completed
A security firm will collect all money three times per week
Policies dealing with Theft
Preventing Theft
Shop lifting is a huge cost to our business and must be reduced where possible. It is our
company policy that with the proper training you can prevent shoplifting before it happens.
Keep an eye on anyone acting suspicious, be alert and watch out for the signs. All staff must
be on the lookout for all acts of dishonesty and all incidents must be reported to the
Manager.
Our company policy is to prevent theft by the RGD method
R Recognise suspicious behaviour
G Good customer services
D Danger spots/times
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Recognising Suspicious Behaviour.
Shoppers who loiter in an area for a long time
Persons shopping in a group who split up but maintain eye contact
Groups of school children with large bags
Shoppers who avoid staff member's attention
Shoppers who wear unusual or bulk clothing
Good Customer Service Prevents Theft
Through good customer service there are ways to reduce the risk of shoplifting. The
preventative measures our company follows are:
Always count the number of items customers take into the change room (company policy is
no more than three items)
Always count the number of items when the customer is leaving the change rooms
Check customer and staff bags
Acknowledge customers on entering and leaving the store
Always offer customers assistance if they are wandering around
Look for customers watching you, ask if you can help them
Check that all lighting is turned on and working
Ask customers holding goods if they would like to pay for them
Top up counter displays so they are fully stocked
Always keep cupboards locked that should be locked
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Always keep the staff room door closed
Always keep your staff lockers locked
Danger Spots
Always maintain a clear view across the shop and have no hidden areas that may provide an
easy opportunity to conceal merchandise. Areas of the store, which are most likely to
attract thieves, are:
Displays near exits
Change rooms
Toilets
Unlocked doors
End of aisles
Danger Times for theft
Shoplifters are most likely to steal during danger times so be alert and remember RDG. Keep
your mind on the job during these times:
Late night/Saturday mornings
Holidays periods when store has busy peak times
Opening and closing times of the store
Staff changeovers
While attending to fitting room, laybuys, changing displays, restocking and while using a
ladder
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As a preventative measure Store safety policy states 3 limbs must be on the ladder at all
times and a second person must support the ladder, that way they can also be keeping an
eye out for any suspicious behaviour.
Apprehension of Shoplifters
Be aware as shoplifting can happen unexpectedly. Apprehension of shoplifters should be the
last resort. Our store policy is prevention is easy and a far more effective approach.
Approaches to avoid apprehension
False accusation or wrong apprehensions may leave our store open to charges.
If you suspect a customer of stealing, try to encourage them to purchase the item by using
statements such as:
Would you like to purchase that item,(use name if you know what they have taken)
You can pay for that item at the register when ready, eg basketball
Do you know we have a lay-buy system
If the customer has left the store and has not paid for the goods, use the following
statements:
I am sorry but you have forgotten to pay for that item eg basketball
Did you know you have not paid for the item in your possession, eg pram, bag, basket
Procedure if apprehension must occur
Alert another staff member to contact security by calling extension 71
Inconspicuously follow the accused if safe to do so
Never accuse the customer of stealing or touch them in any way
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Ask the customer to accompany you to the security office
If customer refuses to wait for security to arrive, then inform security of the following
details:
In which direction they went
Description, what they wearing, nationality, anything that stands out, eg tattoos, facial
markings, hair colour and length
What they were carrying
What you suspect they stole
A note of where the goods were concealed
If they drove away, give a good description of the car, egcolour or registration if possible
Inform your Manager of all the details of the event and fill out a loss/apprehension report
immediately
Reporting of theft.
Our company policy is to follow all legal obligations so remember when filling in a report
never exaggerate. Never accuse or use discriminatory language (age, race, sex, etc) and
don't make judgements about why they have stolen or the situation they are in. Shoplifting
is a criminal offence and has to be dealt with according to the law.
When filling in the report, stick to the facts and keep all answers simple and clear.
Describe the facts, what you saw, where it happened, when it happened, what you did,
what happened then and what was said.
Customer's Property
What is the Bag Check Code of Practice?
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The Bag Check Code of Practice is a joint initiative of Retailers and the Department of
Consumer Affairs and has been developed as a compromise between the interests of
privacy, retail and consumer groups. The purpose of the code is to provide principles and
practices in relation to property checks so that shoppers and retailers can approach the
situation with knowledge of their rights and obligations. Our customer property policy
adheres to the principles of the code of practice.
Our Policy
Our store conducts property/bag checks in an attempt to control theft. All staff are to be
trained in the Property/Bag check procedures and aware of the stores legal position
regarding this matter.
Legal Position - The store must notify customers of its intention to conduct property checks.
A prominent notice that clearly sets this out must be displayed at a point where customers
can see it prior to entry.
Store Policy - Signage is prominently displayed at entrances to our stores establishing entry
conditions, which includes:
All bags and property will be checked when leaving the store
All school bags will be checked when leaving the store; (Staff are encouraged to ask students
to leave their school bags with security at the front entrances.)
All shopping trolleys and prams will be checked upon leaving the store
The Store's Right to Conduct Property/Bag Checks
Legal Position - A customer who enters our store does so under licence. The shopkeeper
may make that entry conditional upon showing bags, trolleys, prams, cartons, parcels and
containers for checking.
Store Policy - Personal handbags will not be checked unless larger than a sheet of foolscap
paper.
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Legal Position - Staff members who forcibly conduct a property/bag check against a
customer's will, may be liable for assault.
Store Procedures
All customers upon leaving the store should be requested to open their bags/property for
inspection either at the register or the customer exit point
Requests should be courteously made so as to minimise the degree of intrusion
The employee should request that the customer personally open the bag
There should be no direct physical interference by the employee
Where a view of the bag is obstructed by a large parcel, trolley, pram, coat or similar item,
the employee may request the customer to remove the obstruction but should not touch
the obstructing item
Dispute Procedures
Legal Position - A Shopper can refuse to allow a property/bag check. Employee's needs to be
absolutely certain that the shopper has committed an offence in order to detain or search
the shopper's processions.
Store Procedures
The employee should not under any circumstances enter into a dispute with the customer
over a request to check bags or a suspected theft
Under no circumstances will the employee attempt to forcibly restrain the customer or
interfere with bags or property
If any dispute arises the employee should immediately summon the store Supervisor
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The Supervisor will explain the conditions under which the customer entered the store. If
the customer again refuses to offer the bags and property for checking, the Manager may
ask the customer to leave the store and not return or summon a Police Officer
In summary, it is paramount that all Supervisors understand the rights and obligations of
customer's property.
Rights and Obligations of Customers
Rights
Customers have the right to know before entry that the store conducts property/bag checks
Right to refuse interference with your person, property or with your bags. Checking means
that staff can look and not touch.
Under the Property Code the store has agreed not to check a personal handbag unless it is
larger than the size of a sheet of foolscap paper
Obligations
Having entered the store knowing that property/bag checks are conducted, customers have
accepted the store's right to ask you to open you bags for checking.
IMPORTANT NOTES
Customers whom refuse inspection of their property/bags can be asked to leave the store
and not return.
The Supervisor/Security Officer will only hold a customer and call the police where the
employee is sure that an offence has been committed.
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If an employee forcibly detain you or forcibly searches your goods, and you have not
committed an offence, you are entitled to complain to the management or the police or
consult your solicitor to determine what legal rights you have.
If you feel that the Property Code has been breached, you should contact the Retail Traders
Association in your state.
Returns Policy
Our returns policy means customers can shop at our store, knowing that with a receipt, we
can offer convenient repairs, exchanges and refunds, provided goods are:
Returned within six week from date of purchase
Goods must be in new order and condition
Identification must be supplied. (acceptable ID includes any document or card with your
name, address, signature and preferably a photo, eg a drivers licence)
With a receipt
Customer can easily bring the goods back with a receipt to the service desk for a repair,
exchange or refund.
Without a receipt
If a customer has misplaced the receipt, the store can offer a repair or exchange if the goods
were purchased in-store, with acceptable ID. However, the store is not obligated to give a
refund if proof of purchase cannot be provided.
This service is in addition to customer's statutory rights to return faulty merchandise for
repair, exchange or refund.
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When can a Supervisor refuse a refund?
In these cases we do not refund or exchange:
Where a customer wants to change good because they are cheaper elsewhere.
When a fault was made known to the customer at the time of sale.
When the customer has caused the item to fail.
.
The service desk is to complete a refund form and refer all refunds to their supervisors for
approval.
Supervisor's Responsibilities
Check that all requirements of the refund policy are met.
Establish with the customer why goods are not required or satisfactory.
Check date of purchase with receipt and condition of goods.
Check the refund form is completed correctly and sign the Supervisor's section.
Identification is to be checked by the Supervisor.
Supervisors then present customer a cash or credit refund.
Supervisor's Audit Roles
In summary, Supervisors play an important part in implementing store security. The three
main areas of concern are: vendor theft, customer theft and employee theft. It is the
Supervisor's responsibility to carry out regular audits to help prevent loss. The types of
audits required are random spot checks of cash, stock, employees and regularly perform
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follow-up phone calls for refunds to customers. Further, to discourage visitors or friends
visiting staff members during work times, restrict access to the stock room, and always
make sure the back door is locked.
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Staff Induction Checklist
This checklist is used to guide the induction process for new employees. Once the induction
checklist is completed, both the supervisor and new employee should sign-off as it is
completed. The completed checklist will form part of the new employee’s training records.
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Recruitment and Selection Policy
This Recruitment and Selection Policy establishes guidelines for the recruitment and
selection of Sim’s Hardware staff.
Sim’s Hardware aims to attract and employ the most suitable person for the position who
will support the organisation’s values, culture and goals in order to achieve its strategic
directions. Recruitment and selection of staff at Sim’s Hardware will comply with all legal
requirements, and with relevant equal opportunity, human resource management
principles, policies and guidelines adopted by the organisation.
This policy applies to all fixed-term, part-time and full-time appointments.
Principles
The following principles guide decision-making in relation to recruitment and selection of
staff to work at Sim’s Hardware.
● The aim of the recruitment and selection process is to appoint the most suitable person to
the position.
● Recruitment and selection will be informed by Sim’s Hardware’s
strategic directions and priorities and will take place following an evaluation of the need for
the role given the staffing requirements to achieve these directions and priorities.
● Recruitment and selection will be guided by requirements of relevant legislation and other
relevant human resource management policies in use by Sim’sHardwaresuch as equal
opportunity and anti-discrimination policies.
● Recruitment and selection processes will be conducted on the basis of fair, equitable and
respectful treatment of all applicants.
● Positions will be advertised on a range of sites including print and web media (where
appropriate), which are most likely to maximise the field of suitably qualified applicants.
● Appointments will be made in open competition from the widest field of applicants
attracted by both internal and external advertising.
● All appointments will be made on the basis of careful and consistent application of the
principle of merit and adherence to the key selection criteria and requirements of the
position as outlined in the position description.
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● Recruitment and selection processes will be transparent, consistent, professional and
timely. Accountability will be achieved by recruitment and selection processes being open
and subject to appropriate scrutiny and review, having regard to the confidentiality of the
applicants.
● All recruitment and selection processes will be conducted so as to ensure the
confidentiality of the applicants and to preserve the integrity of the process.
● Decision-making is the responsibility of the store general manager or as delegated.
Responsibilities relating to this policy
Offers of employment are made by the store manager or a person delegated by the owners
to make the decision of employment.
The Store General Manager is responsible for the operation, development and continuous
improvement of this policy and for providing information about all legal aspects of the
contract.
Procedure: To make a complaint
If you believe you are being, or have been, discriminated against, sexually harassed or
bullied, you should follow this procedure.
1. Tell the offender the behaviour is offensive, unwelcome, and against company policy and
should stop (only if you feel comfortable enough to approach them directly, otherwise
speak to your manager). Keep a written record of the incident/s.
2. If the unwelcome behaviour continues, contact your supervisor or manager for support.
3.If this is inappropriate, you feel uncomfortable, or the behaviour persists, contact another
relevant senior manager. Employees may also lodge a complaint with the Australian Human
Rights Commission, or the Fair Work Ombudsman.
Employees should feel confident that any complaint they make is to be treated as
confidential as far as possible.
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When a complaint is received by a manager/owner, the manager/owner will listen to both
sides of the story separately, taking written notes for documentation purposes. You should
check these notes carefully, where required, before agreeing on the accuracy of the notes. A
further investigation will only take place if agreed upon by the manager and complainant.
If, after investigation, management finds the complaint is justified, management will discuss
with the complainant theappropriate outcomes which may include:
●disciplinary action to be taken against the perpetrator (counselling, warning or dismissal)
●staff training
●additional training for the perpetrator or all staff, as appropriate
●counselling for the complainant
●an apology (the particulars of such an apology to be agreed between all involved).
Grievance Policy
Sim’s Hardware supports the right of every employee to lodge a grievance with their
manager if they believe a decision, behaviour or action affecting their employment is unfair.
An employee may raise a grievance about any performance improvement action taken
against them.
Where a grievance may contravene Sim’s Hardware’s equal employment and opportunity
(EEO) policy or where the grievance constitutes bullying, discrimination or harassment, the
grievance should be resolved in accordance with the procedures outlined in the Anti-
discrimination policy outlined in the Wollongong General Operations Manual.
We aim to resolve problems and grievances promptly and as close to the source as possible.
When necessary, Sim’s Hardware will escalate a grievance to the next higher level of
authority for more discussion and resolution, and continue escalating it to the level above
until it is resolved.
Managers will do their utmost to action grievances objectively, discreetly and promptly. Be
aware that grievances that are misconceived, vexatious, and lacking substance may result in
disciplinary action being taken against the employee lodging the grievance.
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Procedure
1.The employee should try to resolve the grievance as close to the source as possible. This
can be informal and verbal. At this stage, every possible effort should be made to settle a
grievance before the formal grievance process starts. If the matter still can’t be resolved,
the process continues and becomes formal.
2.To start the formal grievance, the complainants must fully describe their grievance in
writing, with dates and locations wherever possible and how they have already tried to
settle the grievance.
3.The person/s against whom the grievance/complaint is made should be given the full
details of the allegation/s against them. They should have the opportunity and a reasonable
time to respond in writing before the process continues.
4.A manager should have a discussion with both parties in an effort to resolve the grievance
at the workplace level.
5.If the grievance still can’t be resolved, refer the matter to the most senior manager for
consideration and a final decision. A grievance taken to this level must be in writing from
the employee.
Should the issue recur, a review may be undertaken at any stage thereafter by the most
senior manager or owner. Further reviews may be held if required.
System to monitor sales performance
It is the Supervisor's role to promote excellence in customer service, achieve sales targets
and monitor performance of their Department. Supervisors should ensure data is recorded
correctly so customers receive quality service and your store makes a profit. Supervisors
need to monitor and evaluate selling systems in order to see the big picture and improve
the strategy where necessary.
A supervisor's three key functions are:
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Implementation of store sales policies and procedures
Monitor the achievement of sales targets
Provide feedback and rewards
Step 1: Implementation of store sales policies and procedures
Identify store policies and procedures related to selling
It is the Supervisor's responsibility to ensure all policies and procedures which relate to
selling are understood and followed. All staff members are to be trained accordingly. Our
store manuals which relate to selling are:
Customer Service Standards, which include dealing with customer complaints and
greeting the customer.
Selling, which includes approaching the customers, establishing the customers
needs, presenting of merchandise, dealing with objection, selling related items (add
on sales), closing the sale.
Store Security Procedures, dealing with preventing theft and apprehension of
shoplifters, point of sale transactions dealing with cash register procedures, credit,
cheques and EFTPOS, refunds, returns, exchanges and repairs.
Monitoring staff selling performance
To ensure customers are satisfied with our service, and sales targets are met, in accordance
with store policy and procedures, it is essential that the Supervisor monitors staff members
at point of sale area for:
Implementation of store sales policies and procedures.
Accurate data entry (incorrect information put into the system can affect the stock
processes such as ordering and stocktake results, as well as lead to poor sales and
adverse customer perception)
Efficient sale processing of goods through the point of sale area (service and selling
quality is essential)
Appropriately matching customer needs to product and services.
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Processing returns should include the reason for the return to determine whether
the problem is with the stock (faulty), or staff member sold the inappropriate stock
to the customer.
Store customer service and selling techniques are implemented.
Monitoring customer service is a critical factor in identifying deficiencies and making
improvements.
Evaluating staff selling performance
Our store has devised two ways to evaluate staff selling performance. The evaluation needs
to look beyond the sales result and into the area of procedural performance. The Supervisor
should regularly monitor performance in this area and provide necessary feedback to staff.
Point of Sale Questionnaire: to be completed by the Supervisor on individual staff
members at least once a month (see attached)
Customer Satisfaction Questionnaire: is an informative way of measuring service
quality. Place at information stands throughout the store and encourage customers
to complete and return to the store.
Remember the Point of Sale area is often the last contact a customer has with our store and
last impressions count. The Point of Sale area provides opportunities to reinforce our store
image, advertise services, sell add ons and display coordinates.
Just because the store is achieving sales targets, it doesn't necessarily mean that everything
is working well. The target may have been achieved because of a hard sell approach by
some staff members. The impact of this can be detrimental on return custom and sales will
reflect this in future months.
Step 2: Monitor the achievement of sales targets
Monitor sales staff
It is the Supervisor's role to report staff performance, evaluate areas and identify where
further training is required to maximise profit. A sense of balance is required to keep staff
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members happy, customers satisfied, reaching sales targets and achieving required profit
margins. To carry out the above, procedures must be followed.
Setting sales targets
It is the responsibility of an accountant to allocate sales targets, which are then approved by
Store Manager and passed onto Department Supervisors. Department sales targets are
formulated based on previous trading patterns of the store. Each Department is given a
monthly sales target and it is the Supervisor's responsibility, on a daily level, to ensure
targets are being met.
Recording of sales targets
Supervisors need to evaluate sales results as well as selling systems. Our store has a
computerised system which updates all sales information based on daily sales. Supervisors
have computer password to assess the Department sales targets and any individual sales
targets. Sales results should be circulated by superiors during staff meetings. It is the
Supervisor's responsibility to print out daily sale sheet, file in appropriate folder and
complete store sales target sheet. A Sales Performance Chart is updated daily and displayed
on a staff noticeboard. (see Department Sales Report attached)
Measuring sales performance
Our store measures sales performance in dollar terms and customer satisfaction. An
indication of dissatisfied customers could be from returns and complaints.
Our Company's procedure for informing staff members of their sales performance are as
follows:
Performance Reviews: carried out on a monthly basis. Supervisors will complete Point of
Sale Questionnaire.
Performance Appraisals: carried out every three months.
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Staff Meetings: Supervisors are to hold monthly staff meetings to improve communication
with staff members and reinforce sales targets and achievements. Recognising and
monitoring good service performance reinforces their behaviour. Good individual
performance should be discussed with all staff members at these meetings. Further staff
meetings can provide a forum for open and positive discussion of grievance.
Training Sessions: Our Personnel Department provides monthly training sessions to enhance
sales performance. Supervisors must attend as an opportunity of being able to refine and
improve any changes with staff members. The advantage of monthly training sessions is to
practise changes by using role plays, ensure understanding of revised or new policies and
procedures.
If sales targets are not being met by staff members, personnel will offer and carry out
Workplace coaching (one on one)
Individual counselling
To improve sales performance, staff members are encouraged to improve their customer
service skills with signage posted in various locations in the store.
Step 3: Providing feedback
Feedback to management
Supervisors are required to report to Management as follows:
Daily: Department Sales Sheet (takings)
Weekly: Sales Performance Report
Monthly: Sales Performance Report
It is of paramount importance that these reports are completed correctly and indicate:
The Sales targets for the month
Reason for not achieving sales targets or reason for exceeding sales targets
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Action you plan to take if an individual or your department's sales targets were not
achieved.
Feed back and rewards to be provided to staff for exceeding targets.
The reasons for achieving or not achieving sales targets need to be indicated. Take
appropriate action if staff member or Department sales targets were not achieved and
provide feedback to staff members for exceeded targets.
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Providing feedback to staff members on sales performance
Supervisors must review results staff members are achieving and give appropriate feedback.
Recognising excellence in achievement of sales targets is motivating for staff members, and
provides incentive to continue enhancing their sales performance in the future.
Recognising achievements can take a number of forms. The simplest is by personally
congratulating individuals and teams on their performance. The biggest reward one can
sometimes get is a pat on the back for a job well done. Tangible forms of reward our
Company offers are bonuses, team dinners or gift vouchers.
Our Company offers a number of incentives for staff members who achieve sales target.
They are:
Sales Employee of the Month
Team Member of the Month
Award for Outstanding Customer Service.
As a Supervisor, please nominate your staff member for these awards to the Personnel
Department. Please see bonus schemes for more information.
Poor performance
Giving feedback on poor performance is sometimes harder to do than giving positive
feedback. We need to look not only at why sales targets were not met, but what remedies
we can apply to improve performance. There are a number of strategies we can implement
to support sales staff that are experiencing performance problems. Some ideas are:
Counselling
Training
Coaching
Job aids
Remember, when giving feedback to enhance a staff member's performance, wherever
possible, give them an opportunity to improve.
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Furthermore, as a Supervisor, the Personnel Department's Human Resources Manager is
your support. For any staffing matters, please do not hesitate to contact them for assistance
regarding any staff member especially in the area of poor performance.
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COMPANY DOCUMENTS
Head Office Financial Management Policies and Procedures Manual
Sim’s Hardware Financial Management Policies
Financial Management Policy
Sim’s Hardware promotes a best practice approach to all aspects of its operations.
Sim’s Hardware values ethical and compliant practices and the highest level of service to all
stakeholders.
All facets of financial management will reflect the following:
● all activities will be conducted ethically
● all activities will reflect the company’s strategic goals
● all activities will be undertaken to achieve the key goals and financial benchmarks
identified in the annual business plan.
All activities will comply with the following where applicable:
● Australian Securities and Investments Commission (ASIC) operating and reporting
requirements
● Australian Accounting Standards (AAS)
● relevant state and federal legislation
● relevant state or federal government contractual requirements.
All procedures will be designed to support the successful operation of Sim’s Hardware’s
operation and services.
Financial Reporting Policy
Reports should provide analysis of all income and expenditure, balance sheet and cashflow
items in relation to the endorsed budget by the board of directors.
Budgeting Policy
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All budgets are prepared at the direction of the Finance, Audit and Risk Management
(FARM) Committee (chaired by Chief Financial Officer) and must respond to business and
strategic goals.
Cash Control and Investment Policy
All investments must be endorsed by the board of directors and be subject to reviews and
recommendations from the Finance, Audit & Risk Management (FARM) Committee.
All money received is to be banked by the Chief Financial Officer (CFO) or delegated
authority in a timely manner.
Bank accounts are to be monitored by the CFO to ensure there are sufficient funds to meet
daily operational requirements. If there is excess money in the Business Operating Account
the CFO is to arrange for this to be transferred to the Investment Account.
If funds are low in the Business Operating Account the CFO is to transfer an amount from
the Investment Account into the Business Operating Account.
Credit Policy
All activities undertaken in collection must endeavour to minimise bad debt.
All activities undertaken must comply with federal and state legislative requirements
relating to PAYG employees, WorkCover and modern award conditions.
Fixed Asset Policy
Management of assets must comply with Australian Accounting Standards. The assets of the
company must be maintained to ensure maximum usage.
Taxation Policy
All activities must comply with taxation law including maintaining tax exemption status.
Insurance Policy
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Insurance coverage must protect the company against any loss or liability in relation to the
following:
● business assets
● public liability
● workers’ compensation
● professional indemnity
● director and officer liability.
Invoice Policy
Accounts receivable
● Invoices need to be in the accounting system by the end of each month to provide
accurate accounting information.
Accounts payable
Sim’s Hardware’s terms of payment are 30 days from date of invoice.
All invoices need to be verified, job numbered and approved by the authorising staff
member and the CEO. The assistant accountant is responsible for inputting all invoices for
the month into Sim’s Hardware’s accounting system to ensure accurate accounting
information.
Cash Receipts Policy
Payment for a product or service can be made in the following way:
● electronic funds transfer
(EFT)
● credit card
● cheque.
The payment terms for all products and services are 14 days from date of invoice.
Project Expenditure Policy
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● Project funding must cover all project costs including fixed costs, management,
administration, coordination costs and direct project costs.
● All project activity must be reported upon bimonthly by the CFO for reporting to the
FARM Committee and board.
● All project contracts are signed in accordance with the procurement policy.
● All projects, upon signing of contract, will be formally established in the Sim’s Hardware
accounting system by the assistant accountant through completion of the project number
and budget.
● All expenses related to projects will be job and account coded by the project managers
and then entered by the assistant accountant into the Sim’s Hardware accounting system.
● The project manager will verify and approve all projects under their responsibility. The
CEO, CFO and or Director will sign all payments and requisitions to ensure the amounts
reconcile prior to payment.
● Project managers must operate within project budgets at all times.
● Project managers must confirm all verbal commitments in writing and have it approved by
the CEO and CFO.
Sim’s Hardware Financial Management Procedures
Full disclosure of the processes and procedures are essential to the financial report’s
credibility. Information should be disclosed in a way that enables the Finance, Audit and Risk
Management (FARM) Committee and external auditors to attest to its reliability.
Management Accounts
● The CFO has the overall responsibility for preparing the monthly and quarterly
management accounts for the FARM Committee and the board of directors. The CFO has
responsibility for compiling quarterly management reports from stores (currently 138
stores).
● The management accounts are to be available for review by the FARM
Committee and board members prior to board meetings.
● The management accounts are to be prepared using Australian Accounting Standards and
with regard to the Australian Income Tax Act 1986 and Corporations Act 2001.
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● The management accounts are to be prepared from the Sim’s Hardware accounting
system Accounting package with detailed working papers of reconciliation.
This includes a reconciliation of all balance sheet items and ensuring the accuracy of these
items.
● Accrual accounting is used throughout the reports except for the cash
flow statements.
● Monthly and quarterly management accounts should include an operating statement with
year to date results, a detailed balance sheet and cash flow statement.
● The profit and loss account should detail the budget year to date, actual results year to
date and variances year to date.
● Notes should explain any significant variances that the board should be aware of for
decision-making.
● The CFO needs to ensure the end of month reports are completed by the 15th of the
subsequent month.
End of Month/Quarter Checklist
Note: Management accounts are given to CEO and FARM Committee monthly and
quarterly.
1. Adjust all previous month’s/ quarter’s accruals where required.
2. Update depreciation schedule and record journal in Sim’s Hardware accounting system.
3. Prepare all standing journals for accrued income, amortised expenses and liabilities.
4. Ensure all project-related income/expenses are reconciled.
5. Analyse prepayments and record expenses accordingly.
6. Ensure all payroll is finalised and reconciles for month prior to closing quarter end
accounts.
7. Check that all invoices for payment have been entered into the creditors sub-ledger for
the period.
8. Review creditors to ensure no adjustments required.
9. Review debtors sub-ledger to ensure no adjustments required.
10. Ensure that bank statements reconcile to general ledger.
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11. Ensure that all payroll clearing accounts are reconciled, e.g. PAYG, EFTs, superannuation
and salary sacrificing payments.
12. Annual leave liability entries to be reconciled and journalised.
13. For projects that have not been completed, the unexpended funds are recorded in the
balance sheet as liabilities.
14. Reconcile all balance sheet items.
15. Reconcile GST reports to the balance sheet and quarterly BAS returns.
16. Prepare operating accounts, including actual results and YTD (year to date) budget.
17.Material unfavourable variances and abnormal items should be noted in the accounts
and reasons noted for FARM Committee.
18.Ensure that all working papers are clear and concise for audit. File to be labelled clearly
with a copy of the operating accounts, balancesheet, profit and loss account and cash flow
statements.
19.Deliver and discuss company's results with FARM Committee. Should budget not be
expected to be achieved in any area, this must be highlighted to the FARM Committee.
Budgeting Procedures
● The annual budget should be finalised prior to the commencement of the new financial
year. If considered necessary, the budget may be subsequently adjusted.
● The annual budget (1 July –30 June) must be prepared as directed by the FARM
Committee, board of directors and CEO.
● It is the responsibility of the CFO to prepare annual budget parameters including revenue
and expenditure, staffing, administration and resource implications.
● The initial annual budget estimates should be based on the current expenditure
projections to end of year plus relevant wage increases, revisions to employment awards
and contracts, and an assessment of the projected increase in operating expenses.
● Expected interest rates and investment options should be evaluated and projections
prepared.
● All fixed costs should be reviewed and projected for the twelve month period including
rental premises, insurance, cleaning, office equipment etc.
● All taxes and legislative costs to operate, must be considered including audit costs.
● All annual budget working papers must be documented, including:
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○ assumptions
○ papers from the board advising strategic plan and business plan
○ papers from the CEO to support projected numbers and costs.
● The annual budget will be finalised and submitted to the FARM Committee and board of
directors for approval.
● The annual budget for the next financial year should be presented to the board of
directors.
● The CFO is responsible for monitoring the organisation’s expenditure, reviewing the actual
and budgeted expenditures, and reporting on the progress of such expenditure.
Project Budgeting
● All project budgets must be developed by project managers in collaboration with, and
approved by, the CFO before finalisation of the annual budget.
● The CFO will allocate each approved project budget a number code, and this will also
become the project identification code across all Sim’s Hardware systems.
● Project managers are responsible for ensuring projects do not run over budget; that
deliverables meet contractual obligations;
that the sign-off of invoices, and the provision of the signed invoice to the assistant
accountant for processing.
Preparation for Annual Audit
● A review of all year end balances in the balance sheet and operating statement must be
undertaken.
● All balance sheet general ledger accounts are reconciled. This would
include examining in detail:
○ The bank reconciliation –including sighting a copy of the bank statement.
○ Petty cash reconciliation – ensuring the amounts reimbursed balance with the nominal
balance to be held.
○ The debtors accounts – including any amounts not contained in aged debtors report. This
will also include analysis of amounts outstanding greater than 30 days with reports on
action taken.
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○ Examine asset register to ensure there are no obsolete items being depreciated (e.g.
obsolete computer hardware/upgraded software applications).
○ Ensure that pre-paid expenses relate to future periods and are recorded in the balance
sheet.
○ Review the creditors report to ensure all expenses are current and credit notes have been
processed where applicable.
○ Ensure that all expenses are included as accrued expenses if the amounts have not been
included in the accounts payable ledger.
Examine accrued expenses to ensure liability had arisen at balance date (i.e. sight
documentation).
○ Ensure that all contingent liabilities are raised.
○ Examine payroll reports to ensure wages/deductions/superannuation and taxation
balances in the clearing accounts.
○ Examine leave liability reports to ensure provisions are correct and current for period
including long service leave which is accrued after five years service.
○ Ensure that a liability is raised for any net project funds which have not been expended at
closing date. A net result should not appear in the general profit and loss.
● The following financial management systems should be checked in particular:
○ Payroll – Check the direct payments report to ensure no additional employees or collusion
between staff members.
○ Payroll– Check that amounts paid are recorded in payroll system correctly.
○ Payroll– Ensure that PAYG reconciles.
○ Payroll – Ensure that all third party payments for packaged employees are currently
recorded for fringe benefits tax (FBT) liability where applicable. The FBT incurred by this
expense, should reduce the cash residual of the package payable to the employee (if stated
in the employment contract).
○ Payroll – Ensure that no terminated employees are on current payroll, excepting
employees who have been subsequently re-engaged on a casual basis.
○ Accounts payable – Ensure that the authorisation procedure is being followed. Ensure that
all goods and services paid have been received.
○ Accounts payable – Test data to ensure expense classifications are correct.
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○ Accounts receivable – Ensure that invoices are being raised correctly, sight source data.
○ Accounts receivable – Ensure that all payments are being matched correctly and banked
promptly – ensure no delays to cash flow.
○ Accounts receivable – Examine unpaid accounts and action taken – give advice and assist
where necessary. Attempt to identify any clients who show signs of becoming slow payers
(e.g. timing between payments becoming greater or unwilling to be bound to terms of
payment).
Potential bad debt cases should be identified as soon as possible to minimise the amounts
that could be lost.
○ Ensure that all asset registers are up-to-date by comparing the written down values with
the general ledger.
○ Ensure all accrued interest on term deposits or interest on loans is reflected in the
accounting records.
○ Ensure taxation and statutory compliance is being met.
● A review of WorkCover policies will be made by examining the working papers supported
by source documentation such as payroll reports, contractors creditors file (if applicable)
and FBT returns (if applicable) – estimates for future periods.
● A review of the annual payroll will be made by examining the working papers supported
by source documentation such as payroll reports and cash/EFT entries to staff, payments to
the ATO, payments to superannuation funds and other deductions made.
● A review of the FBT return will be made by examining the working papers supported by
source documentation such as payroll reports and salary packaging arrangements, and
general ledger reports.
● All internal audit checks should be applied at year end to ensure information presented to
external auditors follows the Australian Accounting Standards. A detailed working paper file
of all reconciliations and copies of source documentation (where applicable) are included.
● The end of month checklist should be examined to ensure all month end work is being
reviewed.
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Accounts Receivable Procedure
● Cheques and cash should be deposited in a timely manner by the assistant accountant or
CFO.
● Ensure that all credit card payments are processed within 24 hours of receipt.
An invoice/receipt with the EFT Machine payment receipt needs to be mailed to the client.
● Monies received needs to be recorded in the deposit master file and reconciled with the
bank statement on a bimonthly basis.
● Follow the collections procedure(below) to obtain any overdue funds.
Collections Procedures for Tradespeople
● Ensure that all credit terms are printed clearly on all invoices and agree with the
customers’ contract for terms of business.
● The collection procedure is:
○ Net payment is required with 14 days from invoice date. Beyond 14 days, further
collections procedures are enacted.
○After 30 days –issue a duplicate invoice with a reminder notice
○After 45 days –contact the debtor by telephone and record on
the Sim’s Hardware collections database all relevant information such as the person spoken
with and any agreed action
○After 60 days –issue a letter of demand and retain a copy.
Ensure that the following items are included in the correspondence:
–Claim the debt owed by the debtor.
–Give the debtor sufficient details to identify the debt.
–Allow the debtor a reasonable time to respond (14 days).
–Indicate that if the payment is not received within the time stated that the debt will be
passed onto Sim’s Hardwaredebt collection agency for further demand and/or possible legal
action.
–After90 days –All debtors are passed onto the debt collection agency and no sales orders
will be accepted by the sales officersuntil the debt has been paid.
–All accounts at 90 days and over are to be kept at a maximum of 5% of total receivables.
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●The FARM Committeehave authority to approve write-off on any one debt.
●Any changes to the procedures outlined above must be authorised by the FARM
Committee.
Accounts Payable Procedures
●Payments will be made for invoices authorised by the appropriate project manager or
senior manager.
●Statements are not to be paid; they are to be used for reconciliation purposes only, except
where a statement and invoice are combined.
● Allcheques will show the payee’s name in full and be crossed (except petty cash) and will
be signed by two signatories.
● All EFT payments will be authorised by the CEO and CFO.
● Petty cash will be reconciled whenever a cheque is required to be drawn or each month. A
receipt must be present for each and every disbursement.
● All payments should be made under terms of business and the credit time utilised to the
company’s advantage.
● All invoices must be job coded and approved by the appropriate manager.
● All current month invoices must be entered into the system prior to end of month to allow
for the expense to be captured for end of month reporting and cash flow calculations by the
CFO.
● The cut-off date for month end processing is as advised by the CFO.
● All corrections to invoices entered in a previous month (e.g. incorrect amount, GST code,
account allocation, invoice cancellation) must be brought to the attention of the assistant
accountant, prior to processing.
● The accounts payable is to be reconciled each month end.
Payroll Procedures
● It is the responsibility of the CFO or delegated authority to confirm all conditions of
employment including:
○ basis of employment (full-time, part-time, casual)
○ annual remuneration
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○basis remuneration calculated, i.e. inclusive of superannuation, leave loading, other
benefits
○ leave entitlements including loading provisions applicable/not applicable
○ choices available in packaging –if any
○ terms of notice required
○ superannuation
○ Date of commencement.
●It is the responsibility of the CFO to ensure that all employment declarations,
superannuation forms and trainee indentures are completed and lodged.
● All payments are to be made by EFT to the employee’s nominated bank account on a
fortnightly basis.
● Requests by terminating employees for group and/or separation certificates must be
provided promptly.
● All payroll transactions are to be entered into Sim’s Hardware accounting system. No
wages are to be paid in cash and all payments must be recorded.
The payroll payments report is to be reconciled to ensure that all group certificates agree
with wages paid for the year.
● Should a payroll amount not be received by an employee, firstly check payments
deducted on payroll reports.
Request a copy of the employee’s bank statement as evidence the payment has not been
deposited. Ensure that the pay has not been returned to the company.
Contact the bank to report the error and to run a trace on the lost funds.
Pay employee again as soon as possible. Ensure that the credit for pay when it is located is
recorded to ensure cash paid agrees with wages recorded.
● The payroll area is not to disclose to other parties information of a private nature. Should
a lending organisation require income information, the CFO may only confirm the amount
paid as wages or other details where the lending organisation has already been supplied
with this information by the employee.
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Fixed Assets Procedures
● All fixed asset expenditure must be within the board’s annual budget.
● Any additional expenditure over $200,000 must have authorisation from the FARM
Committee.
● All assets must be recorded in the fixed asset register and financial accounts.
● All disposals must be at a fair market price.
Discounts on disposal must be approved by the Chairperson and FBT must be paid.
● All assets are recorded in the asset register with a code relating to the assets’ location and
description.
● An audit of fixed assets must take place annually by the CFO.
● All assets must be kept in good condition and be productive. Non-productive fixed assets
could be reducing funds that could be earning interest.
● A copy of the fixed asset register must be kept offsite.
● The level of insurance cover should be reviewed annually.
● A depreciation schedule must be maintained monthly using the straight line method to
expense depreciation over each asset’s expected useful life.
Tendering and Purchasing Procedures
All employees must adhere to Sim’sHardware ’s procurement policy and procedures.
Insurance Procedures
● The CFO is responsible for ensuring the following insurance policies are current:
○ business assets
○ public liability
○ indemnity cover for directors and employees
○ WorkCover for employees and paid Directors.
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Financial Performance 2015, 2016 and 2017
2015
(Figures in $
millions)
2016
(Figures in $
millions)
2017
(Figures in $
millions)
Sales
Less COGS
3,600
(1,800)
3,800
(1,900)
3,500
(1,750)
Gross Profit 1,800 1,900 1,750
Less SG&A
expenses
(1,080) (1,140) (1,050)
Less depreciation (100) (100) (100)
Earnings before
interest and tax
620 660 600
Less interest expense (23) (26) (28)
Pre-Tax Income 597 634 572
Cumulative Pre-Tax
Income (NOL)
597 1,230 1,802
Taxes 239 253 229
Pre-Tax Income 597 634 572
Less taxes (239) (253) (229)
Net Income 358 380 343
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Statement of Financial Position Ending FY2017
Balance at the end of
reporting period
(Figures in $ millions)
Cash 958
Inventory 110
Accounts receivable 264
Total Current Assets 1,332
Gross property, plant & equipment 700
Less accumulated depreciation (300)
Total Assets 1,732
Accounts Payable 88
Bank notes payable 62
Total Current Liabilities 150
Long term debt 200
Shareholder’s equity 1,382
Total long-term debt and shareholder’s equity 1,582
Total Liabilities 1,732
Sales 3,500
Less COGS (1,750)
Gross Profit 1,750
Less SG&A expenses (1,050)
Less depreciation (1,050)
Earnings before interest and tax 600
Less interest expense (28)
Pre-tax income 572
Cumulative pretax income 1,802
Taxes 229
Pretax income 572
Less taxes (229)
Net Income 343
Plus depreciation 100
Less increase in inventory 73
Less increase in accounts receivable 174
Plus increase in accounts payable (58)
Cash flow from operations 632
Less investment (100)
Cash flow from operations and investments 532
Plus net new equity capital raised -
Less dividends paid -
Plus net new long term debt -
Plus net new borrowings (7)
Cash flow from operations, investments and finance 525
Beginning cash balance 432
Ending Cash balance 957
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Sim’s Hardware Marketing Plan 2017
1.0 Executive Summary
Sim’s Hardware was founded by Percy Greenwright in 1921 and was known as Sim’s Home
Goods until 1952. In 1982, Sim’s Hardware, seeing expansion opportunities but requiring
investment capital, restructured and relaunched as a public company. It was floated on the
Australian Stock Exchange in September of that year.
The Greenwright family has retained a controlling interest in the company since its
founding. At present, Percy Greenwright’s great grandson, Holden Greenwright, performs
dual functions of chair of the board of directors and CEO.
Sim’s Hardware owns and operates 138 warehouses throughout Australia, with plans to
continue expanding at the rate of 2–3 stores per
year.
At a Glance –Sim’s Hardware
●Location: Sim’s Hardware stores are located all around Australia in
themajor cities and in the larger regional centres.
●Design: (Has been described as having a ‘Bunnings feel’crossed with elements of
international home design show). Large, open-plan warehouse, but suggesting excitement
of trade fair containing displays of latest and best Australia and the world has to offer in
home design; realistic and interactive, mock-up displays of installed products to provide
visual and tactile sense of design quality, aesthetics and luxury attainable for customer’s
home; product experts at every display or booth; otherwise, no-frills, no-nonsense decor
exhibiting sustainability features, such as water tanks, recycling bins, and solar arrays, for
example, in plain sight.
● Size: 15–20,000 m each location on 2–4 hectare sites.
● Employees: Approximately 10,000 across Australia.
● Types of transactions: Retail (point-of-sale) and account (trades customers).
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According to the company mission, Sim’s Hardware provides the best of Australia and the
world in quality hardware, homewares, garden supplies and building materials to Australian
consumers and tradespeople. Sim’s Hardware is committed to providing customer value
through everyday low prices, product quality, expert service, community engagement and
environmental responsibility. According to the Sim’s Hardware vision, within five years,
Sim’s Hardware will lead the hardware and home -improvement market in Australia.
Key strategic directions:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish reputation of Sim’s Hardware as socially and environmentally responsible
company.
Marketing objectives include:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1,000 people per day per store (from 800)
● increase website traffic to 20,000 visits per day
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
This marketing plan has been prepared to ensure marketing activities are coordinated with
company strategic directions to achieve company mission, vision and values.
This marketing plan comprises of:
● a situation analysis to identify market characteristics and key strengths and weaknesses of
the business relating to meeting consumer demand
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● a marketing strategy to identify marketing objectives, leverage strengths, target key
segments effectively, and position Sim’s Hardware to achieve the company mission and
vision
● a detailed budget of marketing expenditure for the year
● a section on control of marketing activity, which includes milestones for achievement of
marketing objectives and contingency planning.
The 2013 financial year represents an important opportunity for Sim’s Hardware to refocus
on core market segments and differentiate its product and service offering, setting the
foundation for future revenue growth.
2.0 Situation Analysis
2.1 Market Summary
Sim’s Hardware has undertaken extensive market research.
Information on the market and the attributes of targeted customers has been sourced
through:
● market research purchased from private consultancies (Action
Marketing, IBISWorld)
● marketing research undertaken by Sim’s Hardware and Action Marketing on targeted
customer groups –information collected at point-of-sale; through website traffic
monitoring; social media monitoring; interviews; focus groups; and surveys.
2.1.1 Market Analysis
The profile for anSim’s Hardware customer consists of the following geographic,
demographic, and behaviour factors:
● Geographic
○ our customers live in Australia, generally within 50 km of a major city or regional
population centre.
● Demographic
○ male and female, ages 20–60
○ full-time employment
○ an average income of $60,000.
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● Behaviour factors
○ own home/mortgage or long-term rent and/or own or manage trade business
○ tech literate
○ moderately price sensitive
○ value style and luxury
○ value convenience
○ value quality
○ value customer service
○ value customer experience
○ value ethical and sustainable practices.
Numbers of customers estimated to be up to seven million people.
See target market segments for more detailed information on specific attributes.
2.1.2 Market Needs
The basic market need is for an extensive range of quality hardware and homeware s at
reasonable prices able to be accessed conveniently.
Consumers also demand expert and efficient service and socially and environmentally sound
business practices.
According to market research, Sim’s Hardware seeks to provide the following benefits to
represent value to their customers.
● Selection: A choice of popular national brands.
● Convenience: Conveniently located warehouses; e-commerce options.
● Accessibility: Street-level premises, wheelchair accessible. All reasonable accommodation
made for persons with disability or special cultural needs.
● Customer service: Sales employees need to be knowledgeable or expert or able to locate
such sales staff quickly and efficiently.
● Competitive and appropriate pricing: All products/services will be competitively priced
relative to our hardware/home-improvement competition.
● Ethical and environmentally responsible business practices: Sim’s Hardware products are
sourced through sustainable sources.
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Packaging is kept to minimum. Advertising is electronic, or if printed, printed on recyclable
material where possible. Triple bottom line reporting is publicised and available to
customers.
2.1.3 Market Trends
The following market trends exist for Sim’s Hardware’s target market:
● Demand for product quality: Customers expect products to be of the highest quality
and be fault-free and fit for purpose.
● Demand for product innovation: Customers expect new products with innovative features
such as, for example, easy -peel wallpaper or paint that indicates coverage. Information on
new products introduced into European and North American markets is readily available
and Sim’s Hardware is expected to keep up with a world-class product range.
● Demand for service quality: Customers are increasingly aware of products and highly
critical of inexpert advice or service. Customers expect efficient, expert service.
●Demand for environmental sustainability: Customers are increasingly aware of the
environmental impact of consumer goods and expect companies like Sim’s Hardware to
conduct business operations in an environmentally responsible manner and to stock green
options where possible.
● Demand for social responsibility: In addition to environmental responsibility, consumers
are increasingly demanding that the activities of businesses such as Sim’s Hardware should
contribute positively to local community and also promote social equity both within
Australia and within source countries for products.
● Expectation of immediate access to information on products, services, promotions,
discounts, company practices and policies: Customers have expectations that information
should be readily available to potential customers through internet sources such as websites
and social media.
● Distrust or scepticism towards more traditional, wide-casting media such as newspapers,
television and radio: Delivering promotional messages through electronic social media and
word-of-mouth to specific groups of consumers –represents an increasingly popular,
effective and cost-effective method of reaching specific target markets. Consumers targeted
in this way are more likely to identify Sim’s Hardware products and services with positive
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qualities they attribute to electronic social media such as trustworthiness, personalisation,
responsiveness, immediacy, and ‘coolness’.
2.1.4 Market Growth
Market research indicates that the hardware/home -improvement market will continue to
grow. According to IBISWorld market research, in 2012, the average Australian household
was expected to spend $2,554 on home renovations and improvements . This figure was
expected to increase by 4% over the next few years to reach $2,651 per household by 2017–
18.
2.1.5 PEST Analysis
Political environment
The political environment includes legislation and government legislative direction.
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
●Corporations Act 2001(Cwlth)
●A New Tax System (Goods and Services Tax Administration) Act 1999(Cwlth)
●Income Tax Assessment Act 1997(Cwlth)
●Fair Work Act 2009(Cwlth)
●state-based OHS (occupational health and safety)/WHS (work health and safety) legislation
●packaging and labelling laws
●increasingly stringent environmental laws.
The last two types of legislation may be particularly important for Sim’s Hardware’s business
and marketing activities. As noted, sustainable business practices are becoming more
important to customers. More stringent packaging laws may allow Sim’s Hardware to
highlight its environmentally sustainable approach to business.
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In a similar way, environmental legislation may allow Sim’s Hardware to promote its low-
impact approach to advertising while also disadvantaging the competition, which may need
to alter their practices to comply.
Finally, Sim’s Hardware anticipates that the Australian Government’s focus in future
legislative direction and fiscal policy will be centred on promoting growth in the face of the
continuing international debt crisis, poor growth and subdued consumer confidence.
Economic environment
Interestingly, sluggish growth and moderate increases in the Australian unemployment
figures may present an opportunity for hardware and home-improvement retailers such as
Sim’s Hardware. This opportunity exists despite other retailers suffering from low consumer
confidence, poor sales and overseas competition, particularly through e-commerce.
Hardware retailers have benefitted from the sense among homeowners that now is the
time to choose renovation and home improvement rather than selling and moving to a
renovated house.
According to IBISWorld, the trend towards home improvements is linked to the increase in
residential housing prices, which is due to the housing shortage, easier access to finance and
government incentives, amongst other factors. If current trends continue, the industry is
expected to grow by 23% over the next five years to reach $14.2 billion in 2016–17
Social environment
Consumers are increasingly aware of the impact of business activity on local community.
Consumers demand that the business consider the impact of its activities and work to
promote healthy community involvement.
Moreover, consumers are increasingly aware of working conditions in other countries and
increasingly want to contribute to better social and economic outcomes globally.
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Consumers are also concerned about the environment. Sim’s Hardware will endeavour to
promote itself as environmentally and socially responsible and conduct business operations
accordingly. In this way, Sim’s Hardware will offer value to the socially and environmentally
aware consumer and position itself as a leader in social and environmental responsibility.
Technological environment
Internet, information, and social networking technologies continue to evolve and provide
new challenges and opportunities for marketing. Sim’s Hardware will continue with its
effective use of its website to promote and sell products and social networking to reach its
target markets.
2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses of the company,
and describes the opportunities and threats facing Sim’s Hardware.
Strengths
● excellent staff, highly skilled at sales, product demonstrations and explaining product
features
● great locations
● product offerings that meet or exceed competitors’ offerings in quality and innovation
● strong marketing budget
● consistent brand recognition across Australia
● 8% market share
● secured real estate to limit growth of competitors
● e-commerce developed with online store for most products.
Weaknesses
● high cost of sales associated with environmental and socially responsible choices
●low customer loyalty to brands.
Opportunities
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●strong market potential. A significant percentage of the target market still not visiting
Sim’s Hardware on a daily basis
● extension of business hours
● expansion of e-commerce
● new partnerships with suppliers of innovative suppliers
● opportunity to bulk buy and reduce prices through economies of scale
● opportunities to market and differentiate Sim’s Hardware on the basis of training, product
range, product innovation.
Threats
● competition from new entrants into market, especially e-commerce
● uncertainty of worldwide economic climate and impact on Australian spending
● growth of international e-commerce (exacerbated by strong Australian dollar)
● potential lack of prime locations for large warehouses where Bunnings has already
secured prime real estate.
2.3 Competition
Competition
Note: Sim’s Hardware currently enjoys an 8% market share
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2.4 Service Offering
Sim’s Hardware will endeavour to recruit service staff with a proven record of customer
service.
Where skills and knowledge are inadequate, Sim’s Hardware will commit to training and
retraining staff to achieve a level of customer service which distinguishes us from the
competition.
In addition, Sim’s Hardware will provide ongoing training to hone customer service skills,
develop staff and promote retention of skilled staff.
As service is seen to be an important expectation across targeted market segments,
promotional activities will highlight the skill and knowledge of our staff.
2.5 Keys to Success
From a marketing perspective, it will be important to work to maximise the promotional
impact of Sim’s Hardware strengths, while seizing the opportunity to increase custom and
market share.
Sim’s Hardware will need to effectively position itself as distinct from the competition, or,
where directly comparable, as offering better value.
Key differentiators will be:
● service and staff product knowledge
● product range
● product innovation
● retail space and experience.
Promotional activity will need to highlight our value proposition and be distributed in a way
that both appeals to our target market and underscores our stated commitment to social
and environmental responsibility.
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On the other hand, resources will need to be utilised in the most cost-effective way to reach
customers given cost pressures. Threats may be minimised through positioning Sim’s
Hardware correctly to offset the impact of competitors’ marketing activities.
3.0 Marketing Strategy
Sim’s Hardware takes a two -pronged strategic approach to marketing characterised by
product and service differentiation along with select targeted marketing activities. Market
research has indicated a growing hardware and home improvement market, particularly for
our unique offering. Consequently, Sim’s Hardware does not need to capture market share
from competitors to grow; we focus on underscoring our difference and growing our
customer base within our specific target markets.
Sim’s Hardware does not actually compete on price and simply ensures that its prices are
not undercut severely by competitors. As former CEO and Chairman Eric Greenwright once
remarked: ‘We don’t sell really cheap hammers. You can by a cheaper hammer elsewhere.
We sell the singular experience of buying just the right tool for today’s needs’. Sim’s
Hardware’s approach may be described as a hybrid of a differentiation strategy and a
segmentation strategy. Because Sim’s Hardware’s strategies have evolved over time, to
arrive at our present, mixed approach, Henry Mintzberg’s emergent model may also be seen
to apply.
Because of Sim’s Hardware’s unique customer experience, we are different from our
competitors: we sell better, more innovative products; we know more about our products;
we showcase our products’ lifestyle benefits. Sim’s Hardware perceives its target markets to
be most, but not all, Australians. Our customers are slightly more affluent, slightly more
demanding, or have their own trade customers with these attributes.
Marketing activities within our marketing mix will continue to set the foundations for
achieving the company vision of building and maintaining the Sim’s Hardware brand and,
within five years, leading the hardware and home-improvement market in Australia. Sim’s
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Hardware will lead not so much by directly capturing market share from competitors but by
exploiting a large market which is not catered to by our competitors.
To this end, marketing budget has increased to $100 million. This money will be spent in
targeted campaigns to achieve business and marketing objectives.
3.1 Mission
Sim’s Hardware provides top-quality hardware, homewares, garden supplies and building
materials to Australian consumers and tradespeople. Sim’s Hardware is committed to
providing customer value through everyday low prices, product quality, expert service,
community engagement and environmental responsibility.
3.2 Marketing Objectives
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
●increase foot traffic to 1,000 people per day per store (from 800)
●increase website traffic to 20,000 visits per day
●drive sales and revenue growth in line with financial goals
●establish good will within our target marketso that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
3.3 Financial Objectives
●generate at least $300 million in sales per month
●minimum 10% increase in gross profit income each year
●reduce the overhead per store through cost control
●decrease the cost of sales.
3.4 Target Marketing
To meet the needs of all segments, Sim’s Hardware offers top-quality products, everyday
low prices, expert service, community engagement and environmental responsibility.
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The market has been divided into three target markets or segments: Home improvers; DYIs;
tradespersons (owners and managers of small to medium sized businesses and individual
contractors).
Attributes of target segments as well as specific value propositions appear under the
headings that follow.
Home improvers: ‘I’m on the move up’
According to market research undertaken by Action Marketing, the estimated size of this
segment is potentially as much as 3 million people.
The profile of a customer within this segment is:
● aged between 20 and 40
● fun and active
● fashion and trend conscious
● travel internationally and domestically
● luxury moderately important
● single or young family (increasingly may be single-parent, or gay couple)
● single, professional female
● income over $50,000
● moderately price-sensitive but may see higher price as indicator of quality
● moderately sensitive to service quality
● sensitive to peer influences
● consider themselves socially and environmentally responsible
● Prefers local and Australian products but will not compromise on price or design quality: ‘I
like to see Australian leading the world in design quality!’
● very concerned about rising energy prices; worried about impact of carbon tax
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read home improvement magazines occasionally
● watch free-to-air TV and, increasingly, Pay TV.
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Value proposition: Sim’s Hardware helps you save money with the best of Australia and the
world in quality hardware and home improvement products. Let our experts show you how
smart, sustainable living can enhance your active lifestyle.
DYIs: ‘I’ve arrived’
According to market research carried out by Action Marketing, the estimated size of this
segment is potentially as much as 2 million people.
The profile of a customer within this segment is:
● aged between 35 and 60
● fashion and trend conscious
● young to established family (increasingly may be single-parent, or gay couple)
● single professional female
● family activity, holidays and education highly important
● travel internationally and domestically
● luxury moderately to highly important
● income over $70,000
● highly sensitive to product quality
● moderately price sensitive
● sensitive to peer influences
● may consider themselves socially and environmentally responsible
● prefers local and Australian products but will not compromise on price or design quality: ‘I
want my kids to feel proud of quality Aussie design!’
● very concerned about rising energy prices; worried about impact of carbon tax
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read home improvement magazines occasionally
● watch free-to-air TV and increasingly Pay TV.
Value proposition: Sim’s Hardware gives you access to the best of Australia and the world in
quality, sustainable hardware and home improvement products. Let our experts show you
how you can provide your family with the benefits of green, resort-style living.
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Tradespersons
According to market research undertaken by Action Marketing and Sim’s Hardware, the
estimated total potential size of this market is 1.5–2 million people, including independent
contractors and small to medium sized business owners.
The profile of a customer within this segment is:
● aged between 35 and 60
● owner or operator of trade business
● highly sensitive to product range and product quality
● sensitive to price
● income over $60,000
● prefers local and Australian products but will not compromise on price or design quality to
suit clients: ‘My clients prefer Aussie products, but not at any cost’
● customers and clients are very concerned about rising energy prices
● moderately to highly concerned about the environment
● technologically literate: users of online social media
● read trade magazines
● watch free-to-air TV and, increasingly, Pay TV.
Value proposition: Sim’s Hardware lets you offer your clients the best of Australia and the
world in quality, sustainable renovations and home improvements on any budget. Let our
experts show you how we can support you as you grow your business.
3.5 Positioning
Sim’s Hardware is a competitively priced hardware and home-improvement supplier. Sim’s
Hardware consumers who appreciate high-quality, innovative products will recognise the
value and unique offerings of Sim’s Hardware.
For target segments, Sim’s Hardware positions its product offering as per the following:
● Product: Sim’s Hardware supplies consumers and trades with high quality and world class
innovative products. To differentiate on product, Sim’s Hardware actively seeks Australian
and international suppliers who can fulfil requirements for both consistent quality and
exceptionally innovative solutions. Our competition, on the other hand, focuses on a more
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mass appeal. The competition’s customers expect a level of quality consistent with the
lowest prices possible.
●Price: Sim’s Hardware prices its products to stay within the range of prices offered by
competitors. Sim’s Hardware offers a range of discounts and incentives for trade customers.
Sim’s Hardware does not collude with competitors on pricing but does not seek to undercut
competitors. Such a pricing strategy is intended to maintain margins and signify higher
quality and brand prestige. While not seeking to pay more, our customers will generally risk
paying a little more for truly unique offerings and to ensure quality and expert service.
● Service and customer experience: Consistently high level of fast and friendly service
provided by skilled and experienced staff in an exciting and interactive environment. Service
is a key differentiator of Sim’s Hardware’s offering.
Onsite and offsite service will be delivered as per customer needs and expectations in line
with the Sim’s Hardware market positioning as a premier service. For
details see Sim’s Hardware customer service policy and charter.
● Social and environmental responsibility: Social and environmental responsibility is also a
key differentiator of Sim’s Hardware’s offering.
As with some competition, Sim’s Hardware stores use recycled rainwater collected in tanks
for use on plants. Sim’s Hardware also recycles extensively. Sim’s Hardware also sponsors
community and sports events and provides support for charities. The business actively
promotes awareness of the social and environmental activities of Sim’s Hardware thorough
media campaigns.
Unlike our competition, however, Sim’s Hardware promotes its active research into
improving its environmental and social performance. Sim’s Hardware has committed to
public and detailed triple bottom line reporting and associated performance goals.
See business plan for sustainability plan.
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In addition, our products reflect our commitment to the environment and Sim’s Hardware
customers can expect to find our product range includes world-class green technology.
Where our competition has ‘hedged their bets’, Sim’s Hardware has fully committed to
supporting environmentally responsible living. Marketing to specific segments will broadly
follow the positioning strategy outlined above, but will be tailored, where needed and
applicable, to meet the specific requirements of those segments.
3.6 Strategy Pyramids
All marketing activities are coordinated with company strategic directions to achieve
company mission, vision and values. Sim’s Hardware’s key strategic directions (from
business plan) are:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish reputation of Sim’s Hardware as socially and
environmentally responsible company.
Sim’s Hardware marketing objectives and operational tactics have been developed to
support the key strategic directions. The marketing objectives are:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1,000 people per day per store (from 800)
● increase brand recognition and awareness of value proposition
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
Marketing activities are intended to provide the most benefit (in terms of achieving
strategic directions) for the least cost. See marketing expenditure section for details on
marketing costs.
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See the marketing mix section below for specific tactical/operational approaches to achieve
marketing objectives.
3.7 Marketing Mix
In general, through an integrated marketing mix, the marketing strategy will seek to
maintain and build customer loyalty and brand recognition. The marketing strategy will also
aim to demonstrate the value of shopping at Sim’s Hardware to each target market.
Sim’s Hardware’s marketing mix is comprised of the following approaches to pricing,
distribution (place), advertising/promotion, product and people.
Pricing
Pricing is intended to position Sim’s Hardware as similarly priced to its competitors. This
pricing strategy is intended to both increase revenue and underpin Sim’s Hardware’s
message of higher quality. Our target market should feel confident that they would not be
able to get the same combination of customer service and quality product for a lower price
from competitors through any channel.
Place
Sim’s Hardware warehouses are bright and functional. Warehouses are designed to
facilitate easy location of products and services. No-frills, no-nonsense decor exhibits Sim’s
Hardware’s sustainability features, such as water tanks, recycling bins, and solar arrays, for
example, in plain sight.
Coming to our warehouses is a unique experience for customers. Warehouses are designed
to capture the excitement of an international trade show containing displays of latest and
best Australia and the world has to offer in home design. Enticing mock-up displays of
installed products provide visual and tactile sense of design quality, aesthetics and luxury
attainable for customer’s home. Local and Australian products feature strongly in the mix of
displays. Displays are updated monthly.
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Sim’s Hardware also actively promotes e-commerce and distributes a range of products
through its partnership with Australia Post. Sim’s Hardware positions itself as the easiest
and most convenient access to the products our target markets need or expect in the least
amount of time possible.
Promotion
The core message that Sim’s Hardware will seek to communicate to potential and existing
customers is that Sim’s Hardware offers a superior customer experience and superior
products. Sim’s Hardware is committed to providing customer value through everyday low
prices, product quality, expert service, community engagement and environmental
responsibility. For any inaccurate trend predictions, promotions will be required to move
stock that is at risk of becoming obsolete.
This basic message will be communicated through a variety of methods.
● Trade publications
Sim’s Hardware will advertise in a range of national and local trade publications, including
Landscape Manager Magazine, Plumbing Connection Magazine, Australian National
Construction Review,and The Australian Woodworker magazine.
●Paper flyers
Despite concern for the environment amongst target groups, paper flyers remain an
important way to reach our customer. Sim’s Hardware will continue to use paper flyers until
alternative electronic methods such as direct email and digital catalogues are customers’
preferred method of receiving information. Sim’s Hardware will continue to monitor
customer response to this method. Meanwhile, flyers will be printed on recycled material as
per the Sim’s Hardware environmental policy.
● Advertising in local magazines
A common attribute of all target market segments is that they value their local community.
Sim’s Hardware will therefore place regular advertising in local magazines deemed to appeal
to target segments.
Sim’s Hardware will also advertise in national publications such as,
Home and Garden, Grand Designs Australia, and Renovate.
●Encouraging articles and reviews in local media
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Sim’s Hardware will attempt to get articles and reviews in local magazines. These can
include information on new products and design trends and environmental practices, etc.
Sim’s Hardware will regularly provide local media with press releases to encourage use of
our content.
●Direct mail/email to local businesses
Sim’s Hardware uses direct email/mail campaigns to local businesses to communicate
directly with the trade segment. Additionally, marketing research undertaken by Sim’s
Hardware indicates that trades prefer flyers delivered to their business mailing address/
inbox.
● TV (Free-to -air and pay) According to Action Marketing, TV remains an important method
of reaching our customers. However, wide-casting TV advertising is diminishing in
importance and so Sim’s Hardware will focus advertising on lifestyle shows and dedicated
Pay TV lifestyle channels.
● E-commerce/website
Sim’s Hardware will continue to build its online presence through regular updating and
review of its website. It is anticipated that as expansion plans proceed, the ability of
potential customers from a wider geographic area to access online information and perform
transactions will become increasingly important. Promotional messages may include
discounts and information on special promotional days.
● Online presence, advertising and social networking
Sim’s Hardware will encourage existing customers to interact with Sim’s Hardware and
other potential customers to receive loyalty rewards and discounts. As marketing research
indicates, consumers targeted through online social media are more likely to identify Sim’s
Hardware with the positive qualities they attribute to electronic social media such as
trustworthiness, personalisation, responsiveness, immediacy, and ‘coolness’.
Sim’s Hardware will ensure that promotional messages are prominent and accessible online.
Sim’s Hardware will also use YouTube to place positive messages with the potential for viral
marketing.
Sim’s Hardware will continue to place targeted, search-related advertising with advertising
platforms such as Google, Facebook, etc.
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Product and service
Despite the temptation to lower costs through sourcing lower-quality products, Sim’s
Hardware must always ensure the highest possible quality products to remain consistent
with our brand. Word of mouth on slipping quality or service standards may severely
undermine the marketing strategy.
People
A key aspect of Sim’s Hardware’s marketing strategy is its people. Sim’s Hardware will
continue to train its staff so they both offer the service expected by the market and become
effective good will ambassadors for Sim’s Hardware.
3.8 Product Sourcing
As market research identifies unmet customer needs, Sim’s Hardware will continue to offer
new and innovative offerings to position the company as being responsive to customer
requirements. Sim’s Hardware will actively seek new suppliers and form partnerships to
deliver innovative, top-quality products.
Product sales are monitored to gauge market response to menu items.
3.9 Market Research
Market trends need to be accurately predicted to ensure that stores stock the most desired
product range for the evolving needs of customers. Service needs and other needs relating
to components of the marketing mix will also need to be anticipated. Product life cycle
needs to be predicted so that stock in stores is sufficient to support sales initially but over-
stocking – which would give rise to a large accumulation of outdated product – is avoided.
Access to ongoing market research will be achieved through regular research activities
carried out by Action Marketing and Sim’s Hardware.
See the implementation milestones section for specific research activities.
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The Marketing General Manager, Elizabeth Madden, will manage market and marketing
research and liaise with Action Marketing. Customer feedback and suggestions are readily
sought for improvement of marketing activities.
4.0 Marketing Expenditure
This section will provide information on budget expenditure for the current and previous
financial years.
4.1 Marketing Budget Compared by Year
Expenses 2015
Figures in $
millions
2016
Figures in $
millions
2017
Figures in $
millions
Paper flyers 12 11 10
Magazine and trade
publication
advertising
14 12 10
Media promotions 5 5 5
Free to air TV 15 20 15
Pay TV 10 15 20
Social media 1 3 5
Emails, e-catalogues 1 2 3
Website advertising
and maintenance
3 5 10
Online advertising 3 5 10
Goodwill and
sponsorships
3 4 5
Research 3 5 7
Total 70 87 100
5.0 Controls
5.1 Implementation Milestones
The following milestones identify the key marketing activities.
Milestones
Marketing General Manager, Elizabeth Madden, will manage most marketing activities,
including market and marketing research and liaise with Action Marketing.
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5.2 Contingency Planning
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Business Plan
Business Plan Summary
The Business
Business name: Sim’s Hardware Ltd
Business structure: Public company since 1982
ABN: 4000000000
Business location: Sim’s Hardware is headquartered in Melbourne, Victoria.
The business owns and operates 138 stores throughout Australia.
Date established: 26 January 1921.
Products/services: Sim’s Hardware supplies hardware and home improvement products and
provide expert advice and service.
The Market
Target market: The market has been divided into three target markets or segments: Home
improvers; DYIs; tradespersons.
Marketing strategy: Sim’s Hardware takes a two-pronged strategic approach characterised
by product and service differentiation along with select targeted marketing activities.
The Future
Vision statement: within five years, Sim’s Hardware will lead the hardware and home-
improvement market in Australia.
Strategic directions for FY2015: The Sim’s Hardware strategic directions are:
● increase sales revenue and gross profit
● maintain or increase market share
● control direct and indirect operational costs
● maintain superior product and service quality standards
● establish Sim’s Hardware’s reputation as a socially and environmentally responsible
company.
The Finances
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Sim’s Hardware operations and investment activity are financed through reinvested profits
from previous years’ operational activities and investments.
Business details/history
Sim’s Hardware was founded by Percy Greenwright in 1921 and was known as Sim’s Home
Goods until 1952.
In 1982, Sim’s Hardware became a public company and was floated on the Australian Stock
Exchange.
Sim’s Hardware owns and operates 138 stores throughout Australia, with plans to continue
expanding at the rate of 2–3 stores per year.
Product and service offering
Sim’s Hardware supplies products in the following categories to general and trade
customers:
● timber
● hardware
● tools
● paint
● housewares
● outdoor
● garden.
Wherever possible, a number of different models and brand names will be available to
ensure that customers will find a product of choice.
Service offered will include expert advice from suitably qualified sales staff.
Registration details
Business name: Sim’s Hardware Ltd
Trading name(s): Sim’s Hardware Ltd
Date registered: 1 July 1982
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Location registered: Melbourne, Victoria
Business structure: Sim’s Hardware is a public company, listed on the Australian Stock
Exchange. As such, it is bound by relevant company law under the Corporations Act 2001.
ABN: 4000000000
GST: Registered for GST
Organisational Chart
Business premises
Business location/s
Sim’s Hardware stores are located around Australia in the major cities and in the larger
regional centres. In areas experiencing growth in population and significant growth in
residential building, the demand for products sold by Sim’s Hardware is considered likely to
grow. These areas are targeted by Sim’s Hardware for either expansion of any existing
stores or the building of a new store if none exists.
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Key personnel
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Recruitment options
Sim’s Hardware will deploy targeted advertising in trade magazines and online using
organisation such as Seek. Sim’s Hardware will undertake an investigation of competitor
wages and seek to match or better.
Training programs
Sim’s Hardware will offer a range of ongoing training options to meet business requirements
and develop staff skills:
● sales training
● technical training in product areas
● managerial and leadership training
● environmental training
● community sensitivity training
●health and safety training
●support or subsidies for external training, including TAFE and tertiary education.
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Skill retention strategies
Sim’s Hardware will focus on training and development opportunities for existing staff.
Performance management will focus on individually tailored development goals in line with
business expectations Sim’s Hardware will undertake investigation of competitor wages and
seek to match or better if viable from a budgetary perspective.
Products/services
Market position
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Sim’s Hardware is a competitively priced hardware and home-improvement s supplier. Sim’s
Hardware consumers who appreciate high-quality, innovative products will recognise the
value and unique offerings of Sim’s Hardware.
Product
Sim’s Hardware supplies consumers and trades with high quality and world class innovative
products. To differentiate on product, Sim’s Hardware actively seeks Australian and
international suppliers who can fulfil requirements for both consistent quality and
exceptionally innovative solutions. Our competition, on the other hand focuses on a more
mass appeal for ‘tried and true’ products. Their customers expect a level of quality but will
compromise for the lowest prices possible.
Price
Sim’s Hardware prices its products to stay within the range of prices offered by competitors.
Sim’s Hardware offers a lowest price guarantee to consumers and a range of discounts and
incentives for trade customers.
Sim’s Hardware does not collude with competitors on pricing but does not seek to undercut
competitors. Such a pricing strategy is intended to maintain margins and signify higher
quality and brand prestige. While not seeking to pay more, our customers will generally risk
paying a little more for truly unique offerings and to ensure quality and expert service.
Service and customer experience
Sim’s Hardware offers a consistently high level of fast and friendly service provided by
skilled and experienced staff in an exciting and interactive environment. Service is a key
differentiator of Sim’s Hardware’s offering. On-site and off-site service will be delivered as
per customer needs and expectations in line with the Sim’s Hardware market positioning as
a premier service. For details see Sim’s Hardware customer service policy and charter.
Social and environmental responsibility
Social and environmental responsibility is also a key differentiator of Sim’s Hardware’s
offerings.
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As with some competition, Sim’s Hardware stores use recycled rainwater collected in tanks
for use on plants. Sim’s Hardware also recycles extensively. Sim’s Hardware also sponsors
community and sports events and provides support for charities. The business actively
promotes awareness of the social and environmental activities of Sim’s Hardware thorough
media campaigns.
Unlike our competition, however, Sim’s Hardware promotes its active research into
improving its environmental and social performance. Sim’s Hardware has committed to
public and detailed triple bottom line reporting and associated performance goals.
In addition, our products reflect our commitment to the environment and Sim’s Hardware
customers can expect to find our product range includes world-class green technology.
Where our competition has ‘hedged their bets’, Sim’s Hardware has fully committed to
supporting environmentally responsible living.
Anticipated demand
Market research indicates the demand for hardware and home improvement products will
continue to grow. According to IBISWorld market research, in 2012, the average Australian
household was expected to spend $2,554 on home renovations and improvements. This
figure was expected to increase by 4% over the next few years to reach $2,651 per
household by 2017–18.
Pricing strategy
Sim’s Hardware will maintain an average mark-up on purchase price of 35%. A review of this
strategy will be undertaken every six months to assure that gross profit remains within
target parameters set by the organisation.
In addition, if Sim’s Hardware price is identified by a customer to be above a competitor’s
price then price will be reduced to match the price offered by the competitor. Customers
are encouraged to offer documented proof in the form of competitors’ advertising material
or written quotes.
Value to customer
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To meet the needs of all segments, Sim’s Hardware offers top-quality products, everyday
low prices, expert service, community engagement and environmental responsibility.
Growth potential
Sim’s Hardware sees opportunity for growth through capture of market share and
increasing revenue through targeted marketing to Desired segments. According to
IBISWorld market research, if current trends continue, then revenue in the areas of
hardware and home -improvement is expected to grow by 23% over the next few years to
reach $14.2 billion in 2017–18.
Insurance
Even if current market share is maintained, Sim’s Hardware expects to capitalise on the
general growth of the market with the opening of 2–3 warehouses per year over the coming
four years.
Workers compensation
Sim’s Hardware provides workers compensation for employees in accordance with
legislative requirements.
Product liability
Sim’s Hardware has product liability insurance to $15 million.
Business assets
Sim’s Hardware fixed and current assets are insured to current value.
Legal considerations
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
● Corporations Act 2001(Cwlth)
● A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
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● Income Tax Assessment Act 1997 (Cwlth)
● Fair Work Act 2009 (Cwlth)
● state-based OHS (occupational health and safety)/WHS (work health and safety)
legislation
● packaging and labelling laws
● increasingly stringent environmental laws.
Operations
Process
National marketing campaigns, warehouse look and feel, marketing mix, policy, preferred
suppliers and strategic directions are set by the board of directors and senior management.
Strategic directions set at the national level cascade to individual warehouses and are
reinterpreted by general managers to match local conditions at the store level. All staff KPIs
and targets for performance management reflect national and store strategic directions.
Each Sim’s Hardware store is run in most operational respects as an independent business.
Each store generally buys stock from approved suppliers; however, where appropriate,
store general managers have discretion to buy products to suit local market conditions.
Store general managers hire and train local staff and have wide discretion to participate in
community events and sponsorships.
Suppliers
Current Sim’s Hardware preferred suppliers are:
● Ace Consultants
● Action Marketing
● Australian Garden Furniture and Nursery
● Australian Timber Yards
● Australian Plumbing Supplies
● CoffeeVille
● National Homewares.
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Sim’s Hardware will endeavour to maintain good relations with suppliers through regular
owner level contacts as required.
Sim’s Hardware suppliers provide credit terms of 30 days, to which Sim’s Hardware will
strictly adhere.
In addition to maintaining good relations with current suppliers, Sim’s Hardware will
continue to identify new sources of products that will appeal to the evolving needs of
targeted segments. All suppliers to Sim’s Hardware are subject to regular audit by quality
assurance staff to ensure that they meet the standards outlined:
These standards include:
● financial viability
● control and continual improvement of processes to restrain costs
● awell documented and traceable quality system
● respect for the environment
● responsible control of remuneration for own employees and any sub-contractor
employees.
Plant and equipment
A detailed asset register of plant and equipment purchased and maintained by each
individual warehouse is maintained by the Operations General Manager and Store General
Manager.
Sim’s Hardware also maintains a detailed registry of fixed assets such as real estate held by
the company. This registry is the responsibility of the Chief Financial Officer of the company.
Inventory
Inventory for each warehouse is the responsibility of the Operations General Manager and
Store General Manager. Sim’s Hardware stock is tracked through its in-house enterprise
resource management (ERM) system.
Trading hours
Sim’s Hardware trades 7 days a week, 6am to 8pm.
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Communication channels
Customers are encouraged to contact us through email or Facebook. A telephone number is
provided on our website.
Payment types accepted
Sim’s Hardware accepts cash and all major credit cards and debit cards. EFTPOS is available
in all warehouses.
Credit policy
Sim’s Hardware has 30 day credit terms for approved tradespersons.
Memberships and affiliations
Sim’s Hardware is a member of the following organisations:
● Hardware Industry Working Group (HIWG)
● The Hardware Association of New South Wales (HANSW)
● The Housing Industry Association (HIA)
● The Master Builders Association (MBA).
Sustainability plan
Environmental/resource impacts
Sim’s Hardware packaging, waste and use of resources may impact the environment.
Community impact and engagement
A key component of the Sim’s Hardwaremarketing strategy is to communicate our
commitment to the environment and community.
Sim’s Hardwarewill engage with the community through our website and Facebook
campaigns to raise awareness and seek feedback.
Risks/constraints
Risks include high cost of sustainable packaging and potential opportunity cost of
environmental practices such as energy reduction. Staff may also be unaware of Sim’s
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Hardware strategic directions with regard to economic and social responsibility and may
need additional training.
Strategies
Sim’s Hardware will conduct monthly environmental audits and review. Sim’s Hardware will
also seek community engagement and feedback through media channels such as our
website and Facebook page.
Action plan
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The Market and Strategic Approach
Sim’s Hardware takes a two -pronged strategic approach to marketing characterised by
product and service differentiation along with select targeted marketing activities. Market
research has indicated a growing hardware and home improvement market within Sim’s
Hardware’s target markets. Consequently, Sim’s Hardware does not need to capture
competitors’ market share to grow; we focus on emphasizing our difference and growing
our customer base within our target markets.
Sim’s Hardware does not compete on price and simply ensures that its prices are not
undercut severely by competitors. As former CEO and
Chairman Eric Greenwright once remarked:
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‘We don’t sell really cheap hammers, you can by a cheaper hammer elsewhere. We sell the
singular experience of buying just the right tool for today’s needs’.
Sim’s Hardware’s approach may be described as a mix of a differentiation strategy and a
segmentation strategy. Sim’sHardware’s strategies have evolved over time, so to arrive at
our present, mixed approach, Henry Mintzberg’s emergent model may also be seen to
apply.
Because of Sim’s Hardware’s unique customer experience, we are different from our
competitors: we sell more innovative products; we know more about our products; we
showcase our products’ lifestyle benefits.
Sim’s Hardware customers are slightly more affluent, slightly more demanding, or have their
own trade customers with these attributes.
Market research
Market trends need to be accurately predicted to ensure that stores stock the most desired
product range for the evolving needs of customers.
Service needs and other needs relating to components of the marketing mix will also need
to be anticipated. Product life cycle needs to be predicted so that stock in stores is sufficient
to support sales initially but over-stocking does not give rise to a large accumulation of
outdated product.
Access to ongoing market research will be achieved through regular research activities
carried out by Action Marketing and Sim’s Hardware.
See the implementation milestones section for specific research activities. Marketing
General Manager, Elizabeth Madden,will manage market and marketing research and liaise
with Action Marketing. Customer feedback and suggestions are readily sought for
improvement of marketing activities.
Marketing objectives and sales targets
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Marketing objectives are:
● to position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points
● increase foot traffic to 1 ,000 people per day per store (from 800)
● increase website traffic to 20,000 visits per day
● drive sales and revenue growth in line with financial goals
● establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
Sim’s Hardware sales targets are:
● $3 .7 billion annual sales
● Average $27 million per store.
The macro environment
Political environment
The political environment includes legislation and government legislative direction.
Relevant legislation may include, for example:
● Privacy Act 1988 (Cwlth)
● state-based anti-discrimination Acts
● Australian Securities and Investments Commission Act 2001 (Cwlth)
● Competition and Consumer Act 2010, including the Australian Consumer Law (ACL)
● Corporations Act 2001(Cwlth)
● A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
● Income Tax Assessment Act 1997 (Cwlth)
● Fair Work Act 2009 (Cwlth)
● state-based OHS (occupational health and safety)/WHS (work health and safety)
legislation
● packaging and labelling laws
● increasingly stringent environmental laws.
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The last two types of legislation may be particularly important for Sim’s Hardware’s business
and marketing activities. As noted, sustainable business practices are becoming more
important to customers. More stringent packaging laws may allow Sim’s Hardware to
highlight its environmentally sustainable approach to business.
In a similar way, environmental legislation may allow Sim’s Hardware to promote its low-
impact approach to advertising while also disadvantaging the competition, which may need
to alter their practices to comply.
Finally, Sim’s Hardware anticipates that the Australian Government’s focus in future
legislative direction and fiscal policy will be centred on promoting growth in the face of the
continuing international debt crisis, poor growth and subdued consumer confidence.
Economic environment
Interestingly, sluggish growth and moderate increase
in the Australian unemployment figures may present an opportunity for hardware and
home-improvement retailers such as Sim’s Hardware. This opportunity exists despite other
retailers suffering from low consumer confidence, poor sales and overseas competition
particularly through e-commerce.
Hardware retailers have benefitted from the sense among homeowners that now is the
time to choose renovation and home improvements rather than selling and moving to an
already renovated house.
According to IBISWorld, the trend towards home improvements is linked to the increase in
residential housing prices, which is due to the housing
shortage and easier access to finance and government incentives, amongst other factors. If
current trends continue, the industry is expected to grow by 23% over the next five years to
reach $14.2 billion in 2016–17 .
Social environment
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Consumers are increasingly aware of the impact of business activity on the local community.
Consumers demand that businesses consider the impact of their activities and work to
promote healthy community involvement.
Consumers are also becoming more aware of working conditions in other countries want to
contribute to better global social and economic outcomes.
Consumers are also concerned about the environment. Sim’s Hardware will endeavour to
promote itself as environmentally and socially responsible and conduct business operations
accordingly. In this way, Sim’s Hardware will offer value to the socially and environmentally
aware consumer and position itself as a leader in social and environmental responsibility.
Technological environment
Internet, information, and social networking technologies continue to evolve and provide
new challenges and opportunities for marketing. Sim’s Hardware will continue with its
effective use of its website to promote and sell products and social networking to reach its
target markets.
Our customers
Sim’s Hardware’s customers span a wide range of the community and include tradespeople
and the general public. Many of these require little assistance, if any, to purchase product
whereas others rely heavily on the advice they can get to purchase product. Sim’s Hardware
encourage customers to come to their stores to take advantage of the service offered and
ensure that they will purchase all the items and equipment needed for a particular job.
In addition there is a growing number of online customers who are able to determine their
needs from the information they obtain from the Sim’s Hardware website. Continual
upgrade of Sim’s Hardware’s web site is required to counter existing and emerging
competitors. Some of these competitors most certainly will begin to sell online as a major
strategy to attract customers.
Key differences between our customers and customers of the competition:
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● our customers value quality more than price
● our customers require expert, knowledgeable service
● our customers are tech literate
● our customers demand sustainability
● our customers dream style and luxury.
Customer demographics
The profile for anSim’s Hardware customer consists of the following geographic,
demographic, and behaviour factors:
● Geographic
○ Our customers live in Australia, generally within 50Km of a major city or regional
population centre.
● Demographic
○ male and female, ages 20–60
○ full -time employment
○ an average income of $60,000.
● Behaviour factors
○ own home/mortgage or long-term rent and/or own or manage trade business
○tech literate
○moderately price sensitive
○value style and luxury
○value convenience
○value quality
○value customer service
○value customer experience
○value ethical and sustainable practices.
Numbers of customers estimated to be up to 7million people. See target market segments
for more detailed information on specific attributes.
Target segments
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The market has been divided into three target markets or segments: home improvers (3
million); DYIs (2 million); tradespersons – owners and managers of small to medium sized
businesses and individual contractors(up to 2 million).
Customer management
Sim’s Hardwarewill communicate with customers through mass media TV and magazines;
trade magazines; targeted direct mail; and social media campaigns. The company will
encourage feedback through email and social media and will highlight positive company
responses to feedback in marketing messages.
Sim’s Hardwarewill work to develop its strict customer service and product quality
standards and incorporate these into employee handbooks.
The micro environment: S.W.O.T. analysis
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Our competitors
Competitor details
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Advertising and sales
Sales and marketing objectives
● To position Sim’s Hardware as a provider of top quality, brand name hardware and expert
service at attractive price points.
● Increase foot traffic to 1,000 people per day per store (from 800).
● Increase brand recognition and awareness of value proposition.
● Establish good will within our target market so that seven out of ten people rate Sim’s
Hardware as socially and environmentally responsible.
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Sales and distribution channels
The Future
Vision statement
Within five years, Sim’s Hardware will lead the hardware and home-improvement market in
Australia.
Mission statement
Sim’s Hardware provides the best quality hardware, homewares, garden supplies and
building materials from Australia and the world. Sim’s Hardware is committed to providing
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customers and tradespeople with value through everyday low prices, product quality, expert
service, community engagement and environmental responsibility.
Strategic directions for FY2018
● Increase sales revenue and gross profit.
● Maintain or increase market share.
● Control direct and indirect operational costs.
● Maintain superior product and service quality standards.
● Establish reputation of Sim’s Hardware as socially and environmentally responsible
company.
Action plan
Please note: This table does not include sustainability or marketing activities as they are
listed in the sections above.
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The Finances
Key objectives and financial review Financial objectives
1. Generate at least $300 million in sales per month.
2. Minimum 10–15 % increase in gross profit income each year.
3. Control fixed costs through disciplined growth.
4. Maintain COGS (cost of goods sold) at 50% of gross revenue.
Finance
Sim’s Hardware operations and investment in fixed assets are financed through reinvested
profits from previous years’ operational activities and investments.
Assumptions
The financial tables on the subsequent pages are based on the assumptions listed below:
● The unemployment rate in Australia remains at under 6%.
● Steady or moderately falling interest rates continue to underpin business and consumer
confidence.
● Growth across the economy proceeds at a modest 2–3%.
● Demographic and immigration trends for Australia continue.
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