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SIMULATED BUSINESS – Sim’s Hardware

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Table of Contents

BUSINESS PROFILE ..................................................................................................................... 5

Organisational Overview ............................................................................................................ 5

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

Tuesda

Wednesda

Thursda

Frida

Saturda

Sunda

Tota

Week

Targe

Actual

+ / -

Week

Targe

Actual

+ / -

Week

Targe

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Actual

+ / -

Week

Targe

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

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

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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