Hire Our Tutors For FNS40815 Certificate IV In Finance And Mortgage Broking Exercixe 2

2.0 Situation analysis

2.1 S.W.O.T. Analysis

The SWOT analysis mainly helps in the understanding and the estimation of the different overviewing knowledge regarding the environment of the market. In this way, the business is able to measure the strengths and weaknesses of the business. Here, the mortgage broking business has been considered as the business concept in the business plan template. With the help of the SWOT analysis, it is understood that,

Strengths- The main strengths of the mortgage broking business is that there are high barriers in the time of entering the market. The owner comes operator is a very experienced personality in general times. In the case of the market segment, the competitors are more or less the same and the gross margins of the company are very high. The main strength of the business is that the business is to be situated in the suburbs of Melbourne and that is the primary positive feedback as the competition might be a bit less in such region and locality and the profitability as well as the variation of the services and the sales revenue success would be easily concealed and achieved.

Weakness- There are options and possibilities that the other competing companies may offer different and even similar products for lesser charges that increases the competition. The startup costs in these business ideas are lesser than imagined, and that is an obstacle in the way of the business expansion or even establishment. The transportation cost is high in terms of other business plans.

Opportunities- there is a scope for the business to continue in increasing the sales and expansion of the company (Andika and Susanti, 2018). The development of additional sales is a factor that might help in the acquisition of the capital. There is potential scope for the business owners to relate to its similar mentality vendors, and that helps in the proprietor of the products in the most effective way. The market segment of Austrealia in this sector provides the option of brokering business activities in the most unique way due to the situational position and the demographic of teh company.

Threats- the main threats, in this case, are that there is a possibility of the business getting impacted in a negative way due to the changes made in the legislation by the government. With the increasing risk in the product, saleability is a major competition that creates the facilities, and the insurance costs touch the sky by rising. These may stop the business from expanding. The company is facing the major threats due to the changes in the government schemes, interest rates and the specifications iof the clients. Without understamding the changes in the Asutralian customer market and the expectations of them will stop the company from conducting its business in a smoother way.

2.2 PEST Analysis

The PEST analysis helps in the moderation of the company's main base and its ethical consideration, but at the same time, it helps in generating the information regarding the different external factors (Liu et al. 2017). Without the judgement of the external factors, the business will fail to operate as per the authority and the industry based options. There are mainly four different factors that need to be judged to understand the requirements of the company and the risks related to it.

Political: Here, political factors play a great role in impacting the business in both positive and negative ways. Without the understanding of the Mortgage choices and the legislation options within the market, the business operation activities are impossible. Here, the taxation charges change frequently in the Australian market as well as with the bank sector being the primary part of the country's economy it has become tougher to manipulate the level of corruption within the market.The changes in the regulations of the PS146 legislation is a signified event that impacts the factors and the major sources of the company that might help in the proper utilization of the market strategies as well as the results from the establishment of such strategies.

Economic: Here, the economic segments and the interest rates of the mortgage broking business work differently, and due to such differences, the utilization of economic advancement is frequently stopped for the business plans. The economic instability and the changes in the inflation rates change the directions of the companies and businesses results in different directions (Ismail et al. 2018). Government interventions play a great role in impacting and affecting the business strategies of the company. Without the understanding of the host country economy, the exchange rate of the country affects the capitalism mindset of the business. In case of the interest rate the medium businesses generally bear the 3.16% on the outstanding loans per year and the new loans for 2.22%. Apart from that the large businesses bear 1.97% loans for the outstanding loans and 1.62% for the new loans. This creates the difference between the competition and the fairness of the business operations.

Social: The social factors mainly refers to the demographics and the requirements of the company that eventually affects the understanding of the class structures and the hierarchy existing within the culture and the company. Through the differences in the class, hierarchy and the culture, the attitude of the business customers change with time, and that might get frisky in many ways.

Technology: technical imparity is one of the major obstacles that the mortgaging business faces. Due to the high competitors, the competition of technological advancement is another major obstacle within the market industry. Without The comparison of the softwares, the business may seem steady and still, but after the comparison there lies several requirements for the business firm to advance and upgrade ist major technical skills and requirements.  

2.3 Competitive analysis

The competitive analysis here helps in identifying the main requirements and demands of services. Here, the main demands of the mortgage business are to establish credit loan planning on a lower interest rate in comparison to the banks of the country (Datta et al. 2017). The direct customers are mainly the business owners, and the different companies that need the capitals in the most effective form and the indirect customers are the general citizens who need the mortgage loan on an emergency basis. The main strengths of the competitors are that the competitors are more likely to attract more customers with lesser interest rates and greater paybacks. The market place has a grave requirement for the invention p[rocess of the systems; otherwise, the competition will keep increasing at an increasing rate.

2.4 Market Analysis

After the market analysis of the mortgage market operation, it was found out that the current market growth rate stands at 55.3%. The total market shares have almost increased by 0.4% in comparison to the previous financial year and period, without the wastage of the opportunity to work and function according to the competition and the business performance. There exist more than 6000 Mortgage brokers that are currently existing within the market.

The strengthening of the area’s economy and lower interest rates. It has more buyers at the present time by looking out the purchase homes. There are few types of changes that is made for boosting the real estate firms. Two types of mortgage business that are dealt with are “Wyndham Council area, Melbourne and Williams Landing shopping centre”.

3.0 Marketing goals

MArketing goals of any business is one of the primary requirements without which no planning is efficient enough. In this case, the main goal of marketing is to achieve the goal of at least 5% growth rate in the next 12 months and the expansion of the business in the international market with several different options as per the requirements of the customers.  Without any problems, sales are estimated to be increased by at least 10% in the next one year (Wu and Li, 2018). At first the staff members are estimated to be 6 but bby the same t9me of the next year it is expected to be increased to 50. The distribution channels will be established and increased by 5 more rather than the base amount of 10.

4.0 Marketing strategy

The market strategy mainly includes the product development program to increase the competition and gain the competitive advantage. The diversification of taking the new products and services into consideration is another part that needs appropriate challenges and considerations. Market penetration of the business helps in increasing the lending volumes.

5.0 Market Segmentation

5.1 Target Market

The main target margaret clients are the major clients of business owners and the startup owners as the capital requirements are more in this case dand due to such high demand the owners look for the best option of the mortgage brokers (Išoraite, 2016). The needs of the owners to protect their interests and the company to protect its is to increase the price of the product and lower the interest rate. This mainly is a psychological sector of the implemented plan for the company to achieve its goals of maintaining the clients as well as the interests of the business products and services.

6.0 Market Positioning

The name for the business must be something like, “To the future dream” as the main focus of the business strategy and statement is to help entrepreneurs with their capital requirements as well as the citizens by providing them with a home and car loan as an investment.

7.0 Marketing Tactics

7.1 Product Strategy

In the product strategy there is a primary goal of objective that the business will follow. The primary goal is to provide the capital loans, commercial and residential loans to the citizens and the capital loans as well as the personal loans to the owners of a startup (Bui et al. 2017). This way the market segment and the points covered will be wider than other companies. Without the establishment of the professional market competition and opportunities it is not possible to function smoothly. 

7.2 Service strategy

The service strategy of the business mainly will be conducted by considering the market strategy of the business so in that case the main  service strategy will be to conduct an interview in the professional level so that there is more communicative relation than any other to increase the focus of the company in the most effective manner. 

7.3 Pricing strategy

At first there will be no brokerage fee. First the trust and loyalty of the clients will be gained and earned after the first year there will be a minimum rate of brokerage fee and after 2-3 years the commission will be indeed and the bonuses will be existing from the first year only to increase the expansion and success rate of the company. Without this the understanding and the commissions of the differing biases will be eliminated (Gürel and Tat, 2017). Without the commission the profitability increase will be impossible and unacceptable. There will be no bonuses for the employees if there is no commission. 

7.4 Distribution strategy

The distribution strategy will help in the recognition of the distribution system of the business firm. The main focus will be to utilize the contacts and the connection in case of distributing the services through the right and most effective platform. Through the efficiency in terms of delivering the proportionate service by maintaining the timing and the expectations of the clients are the main course of priority set for the business firm. Without these sophisticated considerations and the distribution channels the firm will fail to meet the expectations and the satisfaction level of the clients. (mindtools.com, 2020)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

7.5 Promotion strategy

The promotional strategy focuses on the advertisement of the services and the programs that it has left in the business strategies. The main promotional strategy based platform is the internet, social media and the different hoardings on the street, with this strategy the citizens and the required people are able to identify the services the business firm provides and so on. (icdst.org, 2020)

7.6 People Strategy

The people strategy is the strategy that the business applies in order to maintain and eventually increase the training of the staff in a way that they are able to handle and satisfy the clients with the appropriate questions and queries asked by them (Phadermrod et al. 2019). Without the understanding and the n3eed if the communication system of the staff the business firm will fail to gain confidence and success in the desired way.

8.0 Research

8.1 Consumer research

The main focus of the service industry is to maintain and achieve the success rate in satisfying the clients. The desires and the requirements of the clients change very frequently and it is the responsibility of the firm to do research on the current and highly recommended market trends that will help the firm in measuring and maintaining the clients requirements and eventually implement the revised plan for such services (Kukuh et al.2019).  The encouragement in the insights of the client’s requirements bear a great deal within the company.

8.2 Market research

The main way of monitoring the trends of the economy and the market segment are through thorough research of the competitors and their dealings, p[rojects, clients, the requirements of the company’s managing structure. Without the considerations of these matters the sales, interest rates, legislations and other voluntary characteristics are impossible to judge (Abdel-Basse et al. 2018). Through the marketing strategy of research and connections the business firm will conduct the possible marketing research method and eventually will increase the potential scopes for the business to see the opportunities to change and improve within the service system. 

9.0 consumer Behaviour

The consumer behaviour focuses on the systems and the types of operations that can be considered to understand the advantage of the business firm and its concept. Without the understanding of the broking service and its need in the lives of the people the business firm would fail; to reflect the actual and primary concept and motive of the firm to the civilians. The main expectations of the clients are to bet the loan at a deal where the interest rate will be less and the time of the repayment will be more in terms of time (Bull et al. 2016).  The business firm is able to meet the basic standards of the satisfaction level and the expectations of the clients in the most effective and profitable way that will maintain the interests of both the client and the business firm.

10.0 Evaluation

From the set marketing activities it is confirmed that the promotional and the customer based activities are correctly maintained and achieved due to which the business plan would work and the profitability as well as the sales revenue will increase. Through the strengthening activities the external and internal factors are recognized. Through the recognition the possible risks and the opportunities that are existing within the market are established and recognized without which the company is unable to function. The ideal situation for the company is to make adjustments with the frequently changing trends and expectations that will help the business firm from incurring losses. These strategies are thoroughly fulfilled to help the business firm in succeeding in the correct rate. 

11.0 Implementation of Plan

Strategy- marketing strategy will help in the perfect planning creation of the appropriate use of the resources and knowledge through research. Here, without the research information and knowledge the business firm will fail to establish the requirements and the objectives of the business activities.

Actions- The actions would be mainly to search through the market segment by looking for the information of the trend and the economic stability of the company and also to find out the growth and success rate of the company (Bohari et al. 2017). Without the understanding of the problems and the issues the company would not be able to make the correct suggestions regarding the changes and the improvements. 

Responsibility- The main responsibility of the actions and the strategies fall directly onto the company owner and the manager in head to create the plan according to the requirements of the company. Without the understanding of the ideal outcomes and the implementation of the strategy in the right place. If any goes wrong the liability falls onto these two persons of the business firm.

Time- the finishing time of the strategy falls directly onto the efficiency of the company and its basic requirements that will help it to influence the understanding of the company’s estimation of the planning period and the implementation period.

Reference List


Andika, A. and Susanti, F., 2018. Pengaruh Marketing Mix Terhadap Keputusan Pembelian Parfum di Azzwars Parfum Lubeg Padang.

Liu, Y., Li, K.J., Chen, H. and Balachander, S., 2017. The effects of products’ aesthetic design on demand and marketing-mix effectiveness: The role of segment prototypicality and brand consistency. Journal of Marketing81(1), pp.83-102.

Ismail, M., Zainol, F.A., Daud, W.N.W., Rashid, N. and Afthanorhan, A., 2018. Application of Entrepreneurial Marketing to the Marketing Mix: Why it Matters to SMEs in Malaysia?. International Journal of Academic Research in Business and Social Sciences8(12).

Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?. Journal of Marketing81(3), pp.1-20.

Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social commerce. Internet Research.

Išoraite, M., 2016. Marketing mix theoretical aspects. International journal of research granthaalayah4(6), pp.25-37.

Bui, T.Q., Nguyen, H.V. and Pham, N.T., 2017. The Effects of Selected Marketing Mix Elements on Customer-Based Brand Equity: The Case of Coffee Chains in Vietnam. PRIMA: Practices & Research in Marketing8(1).

Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social Research10(51).

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management44, pp.194-203.

Kukuh, S.A., Ciptomulyono, U., Putra, N.I. and Suharyo, O.S., 2019. Navy ability development strategy using SWOT analysis-interpretative structural modeling (ISM). Strategic Management24(1), pp.30-40.

Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making. Symmetry10(4), p.116.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services17, pp.99-111.

Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and Space9(1).

Online Article

icdst.org, (2020) PEST Analysis Available at: http://dl.icdst.org/pdfs/files/2d89fe2521e3327388a4e68bbf59a72b.pdf[Accessed on: 20.06.2020]


mindtools.com, (2020) PEST Analysis Available at: [Accessed on: 20.06.2020]

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