BSBMGT517 Develop an Operational Plan Assignment Help

BSBMGT517 Develop an Operational Plan Assignment Help

BSBMGT517 Develop an Operational Plan Assignment Help

Brief Summary:

BBQ Fun is operating in retail industry and offers goods to consumers through internet website functionality. But it lacks e- commerce functionality, now boards members and CEO decided to implement e- commerce functionality in orders to serve consumers effectively and efficiently. Managerial board implement e- commerce strategy through operational planning activities (Kareem, Owomoyela & Oyebamiji, 2014). While implementing operational plans company need to follow proper security and privacy regulation in relation to the payment transaction and company should have registered copyright or trade make in relation to its websites. Company requires this operational plan for implementation of e-commerce with following motives:

1. Become customer centred and provide services to customers as per their basic requirements.

2. Provide quality services with the help of e- commerce and improvise organisational profile with an increase in customer satisfaction.

3. Increase sales revenue from previous years.

4. Reduce overall cost of operation which arises due to lack of e- commerce functionality.

BBQ Fun

Currently, BBQ Fun provides online business services and serves their customers online. If company adopts and implement such operational plan within the organisation then it will have to make changes in its marketing policies, Financial policies, accounting policies, policies related to IT and software development, policies related to contingencies and policies adopted for financial plans etc. Management identifies need of development of operational plan because of absence of e- commerce facility (Otniel, Nicolae & Claudiu, 2012). It is better for company to make changes in the current operational plans and bring e- commerce facility into functions. To successful implementation of operational plan, company should use different methods and models for development of plan.

Setting goals and objectives: SWOT analysis helps company in setting goals as per internal strength and weakness and external opportunities and threat.

Outlining actions:to plan actions under operational planning identifying through customer survey.

Identifying risk:Risk in relation external competition, non- compliance with applicable regulations and failure in meeting health and safety requirement at workplace can be identified by analysis of overall organisation.

Monitoring performance:Key performance Indicator and budgets can be used as milestone for monitoring performance.

Resource Requirement

For implementation of operational plans for e- commerce strategy requires resources such as human resources, equipment and machinery and sources of funding. To identify the actual requirement of these resources I have to attend a meeting with sales and marketing manager and technology consultant (Aslam, et. al., 2013).

Role Play with Sales and Marketing manager:

Consultant:Some changes and new additions are requiring making for implementation of operational plan.

S& M manager:I think we should recruit new personals for all the operations and replace them with existing personal.

Consultant:Replacement of existing employee with new recruits is not a good option it incurs cost.

S & M manager:Recruit some personal and provide training to existing employees will control cost.

Consultant:I think this is better option.

After consultation and meeting with managerial personals it is identified following requirements in relation to operational plan:

S. No.

Name of resources

Quantity requires

Cost

1.

Human resources in various departments:

  • Online customer care service provider
  • Warehouse workers
  • Delivery personal

8 resources for  online customer services

4 warehouse workers

6 Delivery personnel

Recruitment cost  can be $30,000 & training to existing personnel will cost $24,000

2.

Fixed asset requirement:

Office space for conducting activities,

 

$50,000

3.

Machinery :

Delivery Trucks & Forklifts

6 delivery trucks

$ 330,000

Role Play with Technology consultants:

Consultant: issues related to technology must be considered because e- commerce strategy requires safe and secure use of technology.

Technology consultant:We follow measures related to safety and security.

Consultant:What about copyright related with company’s website.

Technology consultant:We have already taken copyrights for the website.

Consultant:What is the cost of website development?

Technology consultant:  Company requires budget of $100,000 for developing new websites for the company.

Develop an Action Plan:

Milestone: Action and/or objective
(to achieve strategic aims of physical or human resourcing)

Date

Person responsible

Budget or resources
(where applicable)

Physical resources:

  1. Purchase machinery & Equipment

01/07/2013-14/07/2013

Sales & marketing manager

$30,000

  1. Purchasing delivery vehicles

15/07/2013-31/07/2013

Sales & marketing Manager

$330,000

Human Resource Planning

 

 

 

  1. Recruitment of  new employees

01/08/2013-31/08/2013

Human resource manager

$30,000

  1. Training to new and existing employees

01/09/2013-30/09/2013

Human resource manager

$ 51,000

  1. Communication channel

01/10/2013-15/10/2013

Human resource manager

 

Requirement of intellectual Property right

15/10/2013-15/11/2013

Sales & marketing manager

$ 100,000

 

 

 

 

Performance Indicators for operational and financial targets

To implement operational plan in successful manner Budget is allocated for every activity carried out in the plan. Key performance indicators are quantifiable measures used by company in order to evaluate success of an organisation. In consultation with sales and marketing manager and technology consultant following Key performance indicators are decided:

Key Performance Indicator for operational target

Key Performance Indicator for financial targets

  • Improvement in revenues
  • Reduction in overall cost
  • Improvisation in quality of services
  • Customer satisfaction (Gabcanova, 2012).
  • Gross Profit margin
  • Net Profit margin
  • Sales revenues (George, Schillebeeckx & Liak, 2015).
  • Cost of Goods Sold (COGS

Balanced Score Card:

Balanced Scorecard is a strategic planning and management system which is used by management to align business activity with the vision and strategy of the organisation and monitors organisation's performance against set goals and objectives (Giannopoulos, et. al., 2013).

KRA (key result area)

Target

KPI (key performance indicator)

Result

Human resources

Increase Number of coaching sessions.

Increase Number of  operational related training Program

Improvisation in quality of services

Customer becomes more satisfied with services of company and this will increase customer loyalty.

Development of Human resources

Number of injuries are targeted  to 0

Number of  absentees is targeted to less than 3 % of total hours

Customer satisfaction,

Improvement in overall cost & improvement in revenues

It increase worker engagement, provide more and better services to customers

Financial Sound

Target of earning revenue from sales services $ 11 million

Sales revenue, Gross profit, Net profit margin

With the collective  operations, company can achieve target of Sales $ 11 million

Improve performance of Cost Centre

Management set target of incur cost $ 5,004,714.

COGS

Budget restrained and inventory management help in reducing cost as per target.

Risk register of the organisation:

Identifying Risk and develop a contingency Plan:

Implementation of operational plan is inherent with risk and uncertainty. For effective risk management company prepares risk register where probability and impact of risk on the performance of the company (Saffin & Laryea, 2012). On the basis of identified risk Contingency plans are prepared.

BBQ fun Risk Register

Identified Risk

Probability

Impact

Current Control over risk

Failure in provide proper training to employees

Medium

High

Employees are encouraged by managers and receive incentives to follow performance management policy.

Loss of Intellectual property right ownership

Low

Medium

All the terms and conditions should be followed by company.

Failure to meet health and safety provisions for employees

Low

High

Implementation of policies related to health and safety at workplace.

 

 

 

 

Contingent Plan for risk:

Contingency Plan

Company name: BBQ fun

Name of person developing the plan:Consultant

Who was consulted as part of this plan?

Name: Stakeholders                      Position: Management

 

Risk identified:

  1. Failure in providing training to employees
  2. Loss of intellectual Property ownership
  3. Failure in meeting health and safety regulations for employees

Strategies/activities to minimise the risk

By when

By whom

  1. Set performance benchmark in all operational activities

When employee cannot meet the requirement

Management team

  1. Review of privacy policy

When any issue arises related to privacy or literacy

Technology consultants

  1. Timely review that applicable provisions related to health and safety followed in the organisation

Any issue arises related to employee's health and safety

Management Team

Proposal for resourcing to operational managers:

Business Proposal

To,

Operational General manager,

BBQ Fund.

t is a proposal for resourcing presented for approval to implement E- commerce within the organisation. This proposal explains the requirement of human and physical resources for implementation of operational plan. As per the consultation with management staff Following needs are identified:

Human resources requirement

Particulars

Number of resources

online sales and customer service representative

 8

workers for warehouse

4

Drivers required for product delivery.

6

Requirement of Physical resources

Particulars

Number of resources

Delivery trucks

6

Forklifts

3

Office and warehouse space

15000 Square meter (50% warehouse and 50% of display)

For fulfilling these requirement company has to make initial investment in the following area:

initial investment

It is expected that initial investment is expected to be returned within three years. As per discussion made with Chief financial officer, it is identified that investment is beneficial and it takes three years for giving returns to employees (GURAU, 2012).

According to the chief financial officer, This investment is expected to provide return in next three years are as follows:

1st Year after investment- $200,000

2nd Year after investment- $ 500,000

3rd Year after investment- $ 800,000

Present of future cash flow is $ 180,000+ $ 420,000+$ 600,000= $ 861,000.

Profitability index of such investment is 1.39 which is greater than 1 so the project is preferable.

Managers prepare plans for contingent situation and it is identified that if company succeed in achieving its target then it will earn net profit around $ 1,672,286.

Benefits to organisation: With the implementation of e- commerce strategy organisation have following benefits:

  • Improvisation in product or service quality
  • Increase in customer satisfaction
  • Help in improving sales revenue
  • Help in gaining competitive advantage.

Organisation faces following risk if it cannot adopt such operational plan:

  • Organisation fails to satisfy customers with its services.
  • Earn low profit
  • It may not exist in future.

Thus all these are requirement for the operational plan which is adaptable for the betterment of the organisation. All the information is collected through the market research, consultation and discussion with management. If the plan approved then it will be benefited to the organisation and it is a long term investment in organisation’s success.

References:

Kareem, T. S., Owomoyela, S. K., & Oyebamiji, F. F. (2014). Electronic commerce and business performance: An empirical investigation of business organisations in Nigeria. International Journal of Academic Research in Business and Social Sciences. Vol. 4(8) pages 215- 223.

Aslam, H. D.,Aslam, M., Ali, N., Habib, B. & Jabeen, M(2013). Human Resource Planning Practice in Managing Human Resource: A Literature Review. International Journal of Human Resource Studies. Vol. 3(1). Pages 200- 213.

Gabcanova, I. (2012). Human resources key performance indicators. Journal of competitiveness. Vol. 4(1). Pages 117-128.

George, G., Schillebeeckx, S. J., & Liak, T. L. (2015). The management of natural resources: An overview and research agenda. Academy of Management Journal. Vol. 58(6). Pages 1595-1613.

Giannopoulos, G., Holt, A., Khansalar, E., & Cleanthous, S. (2013). The use of the Balanced Scorecard in small companies. International Journal of Business and Management. Vol. 8(14). Pages1-22.

Saffin, T., & Laryea, S. (2012). The use of risk registers by project managers. Pros 4th West Africa Built Environment Research (WABER) Conference, Pages 1307-1320.

Otniel, D., Nicolae, B., & Claudiu, B. (2012). Risk management approaches and practices in IT projects. THE ANNALS OF THE UNIVERSITY OF ORADEA. Pages 1014-1020.

GURAU, M. A. (2012). The use of profitability index in economic evaluation of industrial investment projects. Proceedings in Manufacturing Systems. Vol.7 (1). Pages 45-48.