DEVELOP AN OPERATIONAL PLAN
Assessment Submission details:
Please include following details on the top of your assessment:
Your Name
Your Student Id
Your Trainer’s name : Nihal Silva
Assessment Due Date
Actual Submission Date
Please Note: Any changes in the assessment due date must be approved by your trainer.
This assessment must be in Microsoft word format. Following settings should be made for this assignment to keep consistency among all the assessments:
|
Body text |
Page setup |
|
Font: Times New Roman Font size: 12 point Line spacing: Double Text style: Normal |
Top: 2.54 cm Bottom: 2.54 cm Left: 3.17 cm Right: 3.17 cm Header: 1.25 cm Footer: 1.25 cm |
Do not forget to attach the Cover Sheet at the front of the assessment.
Make sure you have signed the Cover sheet to declare this is your own work.
You can e-mail this assessment to your trainer’s e-mail address with following details: In ‘subject’ mention your ‘student Id – Your name’.
Achieving Competence:
To be deemed competent in this assessment you must:
Correctly address all the assessment requirements as described in this task
Correctly address all the submission instructions
Successfully complete the Assessment Questions
Submit assessment on or before the due date with an assessment cover sheet
Performance objective:
In this assessment task, you will demonstrate the skills and knowledge required to develop operational plans in consultation with key stakeholders.
Assessment description:
In response to a simulated business scenario, you will research resource requirements and develop (or amend) an operational plan in consultation with relevant stakeholders. As a part of the development of your plan, you will set performance indicators, plan for contingencies, and obtain approval in accordance with organisational requirements.
Assessment Questions:
Read the BBQfun scenario information provided in Appendix 1 and the BBQfun simulated business documentation provided by your assessor.
Write a brief summary of the BBQfun operational environment that includes:
an outline of the legislative and regulatory context that is relevant to BBQfun’s operational plan (available on pages 14–17)
an outline of the BBQfun policies and procedures that directly relate to the operational plan
an explanation of the role of an operational plan in achieving the successful implementation of the e-commerce strategy
a discussion of your intention to either develop a new operational plan for BBQfun, or to amend the existing operational plan; support your discussion with reference to different methods and models for developing operational plans – such as methods for setting goals, outlining actions, identifying risk and monitoring performance
an explanation of your budgeting process as part of your operational plan.
Research resource requirements for implementation of e-commerce strategy.
Arrange with your assessor to participate in two resourcing consultation role-plays.
Participate in consultation role-plays with relevant personnel to determine resourcing needs. You will role-play with the:
Sales and Marketing Manager – prepare to discuss human resourcing requirements
Technology consultant – prepare to discuss physical resourcing requirements related to development of e-commerce website.
Note: During consultation, ask questions and encourage the personnel to provide information.
Develop an action plan for the implementation of the e-commerce strategy. In your plan include:
physical resourcing (all major steps for resourcing, including procurement of different types of resources, but not to the detail of including all procurement steps for each resource type)
human resourcing (all major steps, e.g. recruiting, training, communication)
timelines and milestones for implementing the e-commerce strategy
consultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders)
an analysis of the resource requirements to ensure that the action plan meets the requirements for implementation.
An example action plan template is provided in Appendix 2.
Ensure plans adhere to organisational requirements set out in the scenario and in relevant policies and procedures.
Develop performance indicators for operational and financial targets and amend or develop existing operational plans to include KPIs and financial targets related to e-commerce strategy. Develop a balanced scorecard for an e-commerce customer service representative including three KPIs and associated targets.
Note: The current budget and operational plan for BBQfun is located in Appendix 1. A balanced scorecard template is located in Appendix 3.
Identify at least three risks to the implementation of the operational plan and develop a contingency plan for each risk (you may use the contingency plan template provided in Appendix 4). Risks must include:
one risk due to employee underperformance
one risk related to management of intellectual property (IP)
one risk due to breach of health and safety compliance responsibilities.
Develop a proposal for resourcing to be presented for approval to the Operations General Manager. Include in your proposal:
description of proposed implementation of resourcing
breakdown of costs
benefits to organisation
a list of different approaches to developing key performance indicators
risks to organisation by not implementing
outline of identified risks and contingency planning
description of sources of information used to develop proposal (use internet research on technical aspects of e-commerce and importance to retailers; use consultation, use company financial projections)
legal responsibilities and WHS considerations.
In a third role-play, present proposal for approval by the Operations General Manager.
Submit a portfolio of your implementation documents as outlined in the specifications below. Keep copies of your work for use in Assessment Tasks 2
and 3 and for your own records.
Specifications
You must:
participate in three role-plays:
consult with the Sales and Marketing Manager
consult with the technology consultant
present the resourcing proposal for approval from the Operations General Manager
submit a planning portfolio, including:
a summary of the operational environment of BBQfun
action plan
performance indicators for operational and financial targets (in the new/amended operational plan)
balanced scorecard for e-commerce customer service representative
proposal for resourcing.
Your assessor will be looking for:
reading and writing skills to use workplace information to write an operational plan that meets organisational requirements
oral communication skills to present information in a clear and professional manner, listen and comprehend information and confirm understanding through questioning and active listening
planning and organisational skills to take responsibility for developing and implementing a plan to achieve operational goals including resource needs, strategy development, sequencing activities, identification of risks and impact on operational performance and generating contingency plans
interaction skills to communicate and empathise with stakeholders during consultation processes and collaborate to achieve business outcomes
numeracy skills to work with an existing budget to allocate and manage financial resources
knowledge of models and methods for operational plans
knowledge of the relationship between an operational plan and organisational objectives
knowledge of budgeting processes
knowledge of legislation and regulations relevant to the operational plan of the organisation
knowledge of intellectual property rights and responsibilities relevant to the operational plan
knowledge of using KPIs to develop business objectives.
Appendix 1: Scenario – e-Commerce strategy
Background to scenario
The BBQfun Board of Directors and the CEO have decided to implement an e-commerce strategy to maintain or increase market share and revenue and satisfy customer needs in line with company strategic directions.
You have been hired as an external consultant to manage operational planning activities for BBQfun’s e-commerce strategy.
Under the strategy, BBQfun would offer all products in an online store. Stock could be stored at no extra cost at existing stores. Customers would cover delivery costs.
Currently, BBQfun has a website, but this website lacks e-commerce functionality. The website would need to be redeveloped to incorporate this functionality in line with relevant technical specifications. Existing infrastructure, such as office and store configurations, would need to be adapted to the new strategy. Additionally, assets, such as delivery vehicles would need to be acquired. New staff would need to be recruited and existing staff retrained or informed of the e-commerce strategy and associated operational and performance targets.
All resourcing must be acquired and operations undertaken in accordance with relevant internal and external standards – legislation and codes of practice; intellectual property (IP) rights and responsibilities; and organisational policies and procedures.
Preliminary approval has been given to amend existing budget and operational planning to incorporate this strategy.
It is now 30 June 2013 and e-commerce operations are expected to be underway in one year and three months, by 1Â October 2014.
Scenario task
As the external consultant, you will need to determine physical and human resourcing requirements. Review organisational documentation and undertake preliminary research on e-commerce. Consult with the following personnel to determine resourcing needs:
Sales and Marketing Manager
technology consultant.
You will then need to plan physical and human resourcing and establish associated performance measures and targets. You may consider the Management Team of BBQfun, including team leaders in warehouses, to be resources for the implementation. Use description of their roles in operational planning when assigning responsibilities.
Finally, you will need to propose resourcing and associated operational changes to the Operations General Manager, who will, in consultation with the CEO and Board of Directors, provide approval.
Resourcing and budget: e-Commerce strategy
After consulting with the management team at BBQfun, you determine:
eight online sales and customer service people will be needed to manage increased online customers
since stores are overstaffed, four of the required customer service staff could be sourced from existing employees at the two stores
no current staff have any online customer service skills
management would like to develop people through re-training rather than hire new staff to handle online sales
six delivery trucks needed to enable distribution
e-commerce website will take 50 days to develop
three forklifts are needed
four additional warehouse workers are needed
six additional drivers are needed
office space will need to be reconfigured.
The following operational costs are associated with e-commerce business strategy.
|
Costs: e-Commerce strategy (initial investment) |
|
|
Resources |
Costs |
|
Plant and equipment |
Delivery trucks $50,000 x 6 = $300,000 Forklifts $10,000 x 3 = $30,000 |
|
Promotional costs |
$300,000 |
|
Website developers |
$100,000 |
|
Staff training |
Online customer service training $3,000 per staff member = $24,000 |
|
Recruitment costs |
$30,000 |
|
Management change leadership training for store managers and team leaders |
$3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000 |
|
Warehouse and office reconfiguration |
$50,000 |
|
Total |
$861,000 |
In addition, ongoing staff costs will be incurred.
The expected life of the initial investment is expected to be three years.
|
Costs: e-Commerce strategy (ongoing) |
|
|
Resources |
Costs |
|
Additional staff: |
(At $40,000 year average annual salary) |
|
4 online staff |
4 x $40,000 ($160,000) per year for 3 years = $480,000 |
|
4 warehouse staff |
4 x $40,000 ($160,000) per year for 3 years = $480,000 |
|
6 delivery drivers |
6 x $40,000 = $240,000 per year for 3 years = $720,000 |
|
Total |
$1,680,000 |
The following expenses should be incurred in the 2014 financial year and be included in associated financial targets for spending:
|
Additional staff |
$400,000 |
|
Additional marketing |
$300,000 |
|
Additional training |
$51,000 |
|
Recruitment |
$30,000 |
Benefits to business
According to financial projection prepared by the CFO, the business expects the proposed strategy to be profitable over three years.
|
Profitability index over three years |
|||||||||||||||||||||||
PI>1 indicates project should be undertaken
|
|||||||||||||||||||||||
The expected additional profit for 2014 would be $200,000. This figure should be added to targets.
Risks to implementation
After consulting with stakeholders at BBQfun, you determine:
medium risk of poor online sales
high risk of customer service quality problems for online customers leading to a breach of consumer law
high risk of staff misunderstanding changes and considering online sales as threat to jobs
medium risk of not being able to recruit fully trained online staff
low risk of loss of IP relating to confidential information contained within the e-commerce strategy when employees leave the organisation
medium risk of loss of IP ownership if a relationship with the website developer contract ceases
low level risk of not complying with WHS legislation through lack of risk assessment conducted on potential musculoskeletal disorders resulting from poor customer service workstation design
medium risk of wastage due to overstocking product in anticipation of increased online sales.
All additional costs associated with contingency planning will be approved in accordance with BBQfun policies and procedures.
BBQfun 2013–2014 Approved budget by activities to be undertaken
|
Income: |
||
|
Sales |
$11,000,000 |
Barbecues and related equipment. |
|
Investment income |
$1,567,000 |
Real estate investment income and rental of office space. |
|
Cost of goods sold (COGS) |
($5,890,000) |
Cost of provision of goods, purchase of stock, distribution. |
|
Gross profit |
$6,677,000 |
Gross profit. |
|
Expenses: |
||
|
Wages, salaries and on costs |
$2,567,890 |
Wages, salaries, superannuation, work cover insurance, payroll tax. |
|
Consultancy fees |
$50,000 |
Project management: WHS management system; change management. |
|
Communication expenses |
$42,000 |
Telephone, ISP costs, IT support. |
|
Marketing |
$920,000 |
Cost of staff travel and associated costs for sales, etc. |
|
Premises expenses |
$1,000,000 |
Rent, electricity, maintenance, cleaning. |
|
Insurance |
$120,000 |
Liability insurance |
|
Depreciation and amortisation |
$177,569 |
Computers and capital equipment that is depreciated. |
|
Office supplies |
$65,068 |
Printing and stationery, postage, amenities. |
|
Training |
$62,187 |
Sales training: leadership, WHS, ethical/legal training. |
|
Total expenses |
$5,004,714 |
|
|
Net profit |
$1,672,286 |
Net income before tax. |
Operations
General operating hours
BBQfun operates Monday to Friday from 9 am to 5 pm. BBQfun will be operational year‑round except legislated holidays.
Human resources
Pat Mifsud, CEO
Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.
Riz Mehra, Chief Financial Officer
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.
Kim Chen, Operations General Manager
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects that affect operations of the organisation as a whole. Kim works with the HR Manager to coordinate systems and projects to achieve company-wide synergy.
Les Goodale, Human Resources (HR) Manager
Les is responsible for the productive capacity and welfare of people at BBQfun. With the Operations General Manager, Les works to coordinate projects and management systems, such as performance management, recruitment and induction.
Sam Lee, Marketing Manager
Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team.
Pat Sweeney, Manager: Brisbane (Kenmore)
Pat is responsible for the management of all aspects of the Brisbane store.
Alex Mitchell, Manager: Gold Coast
Alex is responsible for the management of all aspects of the Gold Coast store.
A summary of human resources at each of the two locations appears below:
|
Brisbane: Head office |
|
Employees: 30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system senior management team (five) + one store manager four sales team leaders one delivery truck driver one warehouse worker. |
|
Gold Coast operation |
|
Employees: 30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system one store manager three sales team leaders one delivery truck driver one warehouse worker. |
Office requirements
The office space is leased and will accommodate the necessary office equipment, such as computers, fax machine, photocopier and other engineering equipment.
|
Brisbane: Head office |
|
Location: Kenmore. Size: 15,000 square metres (50% warehouse, 50% display area). Warehouse area used at 45% of capacity, but poorly configured to accommodate heavy increase in distribution traffic. Large mezzanine office space (used to be occupied by online retailer, currently subdivided and occupied by the management team). Loading bay with large capacity (most of area incorporated into customer display area, could be easily and cheaply reconfigured to accommodate extra distribution). |
|
Gold Coast operation |
|
Location: Robina. Size: 12,000 square metres (50% warehouse, 50% display area). Warehouse area used at 50% of capacity, but poorly configured to accommodate heavy increase in distribution traffic. Large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company). Lots of spare office space. Loading bay with large capacity. |
Operating capital requirements
BBQfun requires approximately five million dollars in working capital to sustain and ensure the business meets all opening and ongoing financial obligations.
The company may experience financial pressures during slow sales periods.
A long-term strategy to maintain a positive cash flow during these periods will be to diversify the company’s product range and develop business opportunities such as e‑commerce to boost sales and sales capability overall.
|
Operational expenses |
|
|
Wages, salaries and on-costs |
$2,567,890 |
|
Consultancy fees |
$50,000 |
|
Communication expenses |
$42,000 |
|
Marketing |
$920,000 |
|
Premises expenses |
$1,000,000 |
|
Insurance |
$120,000 |
|
Depreciation and amortisation |
$177,569 |
|
Office supplies |
$65,068 |
|
Training |
$62,187 |
|
Total Expenses |
$5,004,714 |
Insurance requirements
BBQfun will have to incur costs for business liability insurance. The estimated cost for this requirement is $100,000 per year.
Operational workflow
Conduct market research to determine needs.
Negotiate with suppliers.
Receive and warehouse products.
Provide service and information to warehouse customers.
Receive payment.
Arrange delivery of items (if required).
BBQfun accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.
Operational plan (with strategic objectives, measures and tasks) FY 2013–2014
Appendix 2: Action plan template
|
Milestone: Action and/or objective |
Date |
Person responsible |
Budget or resources |
|---|---|---|---|
Appendix 3: Balanced scorecard template
|
KRA (key result area) |
Target |
KPI (key performance indicator) |
Result |
Appendix 4: Contingency plan template
|
Contingency Plan Company name: BBQfun Name of person developing the plan: Who was consulted as part of this plan? Name Position |
||
|
Risk identified: |
||
|
Strategies/activities to minimise the risk |
By when |
By whom |
|
Strategies to implement approved contingencies |
By when |
By whom |
|
Approved variations to the plan based on contingencies faced |
By when |
By whom |
Tags: assignmentexpert, assignmenthelp, assignmenthelpaustralia, assignmenthelper, assignmenthelpuk, assignmenthelpusa, assignmentwriting, bestpriceguaranteed, bestqualityguaranteed, london🇬🇧, myassignmenthelp, plagiarismfreework