Develop An Operational Plan: Submission Details

Assessment Task 1 BSBMGT517 Manage operational plan
Develop an operational plan

Submission details
Student’s name Student no.
Assessor’s name Phone no.
Assessment site
Assessment date/s Time/s
The assessment task is due on the date as mentioned in the Moodle. Any changes to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence/proofs attached. See specifications/details
below for details.
Performance objective
You will demonstrate skills and knowledge required to develop operational plans in
consultation with key stakeholders/participants
Assessment description
In response to a simulated/pretend 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, 1 plan for
contingencies/possibilities, and obtain approval in accordance with organisational
requirements.
Procedure
1. Read the BBQfun scenario information provided in Appendix 1 and the BBQfun
simulated business documentation provided by your assessor.
2. Write a brief summary of the BBQfun operational environment that includes:
Performance indicators (KPI) - A Key Performance Indicator is a measurable value that demonstrates
how effectively a company is achieving key business objectives. Organizations use KPIs at multiple
levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall
performance of the business, while low-level KPIs may focus on processes in departments such as
sales, marketing, HR, support and others.
LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. Modified sep 2020 1st
edition version: 3.1
Page 1 of 21
a. an outline of the legislative and regulatory (government rules etc)

context/relationship that is relevant to BBQfun’s operational plan (available on
pages 15–17)
b. an outline of the BBQfun policies and procedures that directly relate to the
operational plan
c. an explanation of the role of an operational plan in achieving the successful
implementation of the e-commerce strategy
d. 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
e. an explanation of your budgeting process as part of your operational plan.
3. Research resource requirements for implementation of e-commerce strategy..
4. Participate in a simulated consultation role-plays with relevant personnel to determine
resourcing needs. You will role-play with the:
a. Sales and Marketing Manager – prepare to discuss human resourcing
requirements
b. 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.
5. Develop an action plan for the implementation of the e-commerce strategy. In your plan
include:
a. physical resourcing (all major steps for resourcing, including
procurement/gaining of different types of resources, but not to the detail of
including all procurement steps for each resource type)
b. human resourcing (all major steps, e.g. recruiting, training, communication)
c. timelines and milestones 2 for implementing the e-commerce strategy
d. consultation and communication (ensure all affected staff are informed and
engagement is encouraged for all stakeholders)
e. 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.
Timelines and Milestones - A milestone is a definite achievement that one can check has or has not
been achieved on a given day. The project plan consists of a timeline and some milestones. The
milestones are specific achievements, and are attached to specific dates on the timeline.
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6. 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 3 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.
7. 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:
a. one risk due to employee underperformance
b. one risk related to management of intellectual property 4 (IP)
c. one risk due to breach/break of health and safety compliance responsibilities.
8. Develop a proposal for resourcing 5 to be presented for approval to the Operations
General Manager. Include in your proposal:
a. description of proposed implementation of resourcing
b. breakdown of costs
c. benefits to organisation
d. a list of different approaches to developing key performance indicators
e. risks to organisation by not implementing
f. outline of identified risks and contingency planning
g. 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)
h. legal responsibilities and WHS considerations.
9. In a third simulated role-play, present proposal for approval by the Operations General
Manager.
10. 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.
A balanced scorecard is a strategy performance management tool – a semi-standard structured report,

that can be used by managers to keep track of the execution of activities by the staff within their control
and to monitor the consequences arising from these actions.
4
Intellectual Property - Intellectual property (IP) refers to creations of the mind, such as inventions;
literary and artistic works; designs; and symbols, names and images used in commerce
5
Resourcing - work of finding things needed for project.

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Specifications
You must:
● participate in simulated 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/understand 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 activities6, identification of risks and impact on operational
performance and generating contingency/backup plans
● interaction/connection skills to communicate and empathise 7 with stakeholders during
consultation processes and collaborate to achieve business outcomes
● numeracy (understand figures) 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
Sequence Activities is the process of identifying and documenting relationships among the project
activities. So the fundamental reason for the sequence activities process is finalizing the
interrelationship of activities to finish the project scope and achieve the task objectives.
7
Empathise - understand and share the feelings of another.

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● 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.
Page 5 of 21
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 1 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.
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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 $3,000 each = 1 Brisbane store manager, 4 Brisbane

training for store managers and team leaders, 1 Gold Coast store manager and 3 Gold
team leaders Coast team leaders x $3,000 = $27,000
Warehouse and office $50,000

reconfiguration
Total $861,000
In addition, ongoing staff costs will be incurred.

The expected life of the initial investment is expected to be three years.
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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.
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Profitability index over three years
Profitability index (PI) Present value (PV) of future cash flows

= Present value (PV) of initial investment
PI>1 indicates project should be undertaken
FY 2014 FY 2015 FY 2016
Cash flow from operations (minus ongoing $200,000 $500,000 $800,000

operational costs associated with e-commerce
such as additional staffing)
Present value of future cash flows (discounted $180,000 +$420,000+$600,000 =

future cash flows with respect to opportunity $1,200,000
cost, inflation)
Present value of initial investment $861,000
Profitability index 1.39
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 8 resulting from poor customer service
workstation design
Musculoskeletal disorders (MSD) are injuries or disorders of the muscles, nerves, tendons, joints,
cartilage, and spinal discs
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● 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.
Budget summary
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 ($5,890,000) Cost of provision of goods, purchase of

(COGS) stock, distribution.
Gross profit $6,677,000 Gross profit.
Expenses:
Wages, salaries and on $2,567,890 Wages, salaries, superannuation, work

costs cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS management

system; change management.
Communication $42,000 Telephone, ISP costs, IT support.

expenses
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 $177,569 Computers and capital equipment that is

amortisation 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.
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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.
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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
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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 9 to sustain/carry on
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 10 during these periods will be to
diversify/expand 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
Working capital is the amount of available capital that a company can readily use for day-to-day
operations. Working capital is a measure of a company's liquidity, operational efficiency, and its short-
term financial health.
10
Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts,
reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future
financial challenges
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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
1. Conduct market research to determine needs.
2. Negotiate with suppliers.
3. Receive and warehouse products.
4. Provide service and information to warehouse customers.
5. Receive payment.
6. Arrange delivery of items (if required).
BBQfun accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.
Page 14 of 21
Operational plan (with strategic objectives, measures and tasks) FY 2013–2014

BBQfun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
1 Engaging with customers ● Completion of market/marketing ● Conduct quarterly surveys on customer satisfaction.
through marketing, research research.
● Evaluation of market and marketing data to determine
and personalised service.
● Completion of customer surveys. marketing opportunities.
● Completion of reports to identify
marketing opportunities.
2 Building reputation for ● Percentage of brand recognition in ● Audit of supplier quality.

quality products and quality sought-after categories in periodic
● Regular contact with suppliers.
customer service: customer surveys.
● Investigate resourcing needs: people, products.
● Raise organisational ● Percentage of customers with
profile by 20%. positive view of organisational ● Fulfil resourcing and distribution needs in accordance with
responsiveness, innovation, quality, policies and procedures.
● Improve client
ethics, safety. ● Maintenance of enterprise resource management (ERP), point
satisfaction
performance by 25%. ● Number of customer complaints. of sale (POS) and customer relationship management (CRM)
systems.
● Delivery times.
● Number of returned items.
LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. 1st edition version: 3.1
Page 15 of 21
3 Supporting people to perform ● Numbers of injuries ● Research effectiveness of possible incentives for: safe work
via training and performance (Target = 0). achievement; healthy lifestyle.
management.
● Numbers of absentees ● Engage workers with strategic goals of business and support
(Target = <3% of total hours). professional development in line with strategic goals. (Targets
to be set by individual managers).
● Anti-discrimination complaints
(Target=0). ● Management engagement with employees to achieve greater
buy-in of organisational goals.
● Lost Time Injury Frequency Rate
(Target=2) ● Include explanation of how activities work with organisational
strategic goals in all communications to internal personnel.
● Percentage completion of
performance plans and ● Regular coaching.
performance management process.
● Training needs analysis and training (leadership, WHS,
● Numbers of coaching sessions ethical/legal training).
completed.
● Strategic goals included in induction program.
● Numbers of operational-related
● Employee incentives for performance in all areas relevant to
training programs completed.
operational and strategic goals.
4 Increasing sales revenue. General ledger accounts; financial ● Marketing campaigns.

statements:
● Sales training for floor staff.
● Revenue target = $11 million
● Profit target = $1,792,286
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5 Reduce direct and indirect ● General ledger accounts; financial ● Renegotiate with suppliers.
costs of operations. statements:
● Research potential new suppliers.
○ wages
● Research new distribution possibilities, such as
○ cost of agent services e-commerce/delivery.
○ consultancy fees ● Management engagement with employees to achieve greater
employee support of organisational goals.
○ wastage and associated
expenses. ● Greater use by managers of budgets to encourage restraint.
● Expense target = $5,004,714 ● Greater focus on budget restraint in management of
projects/activities.
● COGS target = $5,890,000
● Inventory management through ERM to reduce overstocking
and risk associated with storage.
● Incentives (as part of manager/employee performance
management and bonus system).
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Appendix 2: Action plan template
Milestone: Action and/or objective Date Person Budget or resources

(to achieve strategic aims of physical or human resourcing) responsible (where applicable)
Page 18 of 21
Appendix 3: Balanced scorecard template
KRA (key Target KPI (key performance Result

result area) indicator)
© Innovation and Business Industry Skills Council Ltd 1st edition version: 3.1
Page 19 of 20
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
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Strategies to implement approved contingencies By when By whom
Approved variations to the plan based on contingencies By when By whom

faced
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Assessment Task 1 BSBMGT517 Manage operational plan

Develop an operational plan

Student’s name Student no.

Assessor’s name Phone no.

Assessment date/s Time/s

a. an outline of the legislative and regulatory (government rules etc)

A balanced scorecard is a strategy performance management tool – a semi-standard structured report,

Resourcing - work of finding things needed for project.

○ consult with the Sales and Marketing Manager

○ a summary of the operational environment of BBQfun

Your assessor will be looking for:

● knowledge of the relationship between an operational plan and organisational

Empathise - understand and share the feelings of another.

● knowledge of legislation and regulations relevant to the operational plan of the

Appendix 1: Scenario – e-Commerce strategy

Resourcing and budget: e-Commerce strategy

● 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.

Costs: e-Commerce strategy (initial investment)

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

Recruitment costs $30,000

Management change leadership $3,000 each = 1 Brisbane store manager, 4 Brisbane

Warehouse and office $50,000

In addition, ongoing staff costs will be incurred.

Costs: e-Commerce strategy (ongoing)

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

Additional staff $400,000

Additional marketing $300,000

Additional training $51,000

Profitability index over three years

Profitability index (PI) Present value (PV) of future cash flows

PI>1 indicates project should be undertaken

FY 2014 FY 2015 FY 2016

Cash flow from operations (minus ongoing $200,000 $500,000 $800,000

Present value of future cash flows (discounted $180,000 +$420,000+$600,000 =

Present value of initial investment $861,000

Profitability index 1.39

● low risk of loss of IP relating to confidential information contained within the e-

● medium risk of wastage due to overstocking product in anticipation of increased online

BBQfun 2013–2014 Approved budget by activities to be undertaken

Sales $11,000,000 Barbecues and related equipment.

Investment income $1,567,000 Real estate investment income and rental

Cost of goods sold ($5,890,000) Cost of provision of goods, purchase of

Gross profit $6,677,000 Gross profit.

Wages, salaries and on $2,567,890 Wages, salaries, superannuation, work

Consultancy fees $50,000 Project management: WHS management

Communication $42,000 Telephone, ISP costs, IT support.

Marketing $920,000 Cost of staff travel and associated costs

Premises expenses $1,000,000 Rent, electricity, maintenance, cleaning.

Insurance $120,000 Liability insurance