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Assessment Task 1(BSBMGT517) Assessment Task 1BSBMGT517 Manage operational plan Develop an operational plan Submission details Candidate’s name Phone no. Assessor’s name Phone no. Assessment site Assessment date/s Time/s The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective You will demonstrate 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. 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: a. an outline of the legislative and regulatory context that is relevant to BBQfun’s operational plan (available on pages 14–16) 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. 3. Research resource requirements for implementation of e-commerce strategy. 4. Arrange with your assessor to participate in two resourcing consultation role-plays. 5. Participate in 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. 6. 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 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 for implementing the e-commerce strategy d. consultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders). 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. 7. 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. 8. 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 (IP) c. one risk due to breach of health and safety compliance responsibilities. 9. Develop a proposal for resourcing 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). 10. In a third role-play, present proposal for approval by the Operations General Manager. 11. 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. Adjustment for distance-based learners · The role-plays can be adjusted for distance learning. The role-plays for this task can be varied to take place using Skype conferencing (or any other video conferencing tool available to both you and the assessor). · A follow-up interview may be required (at the discretion of the assessor). · Documentation can be submitted electronically or posted in the mail. 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. 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 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 operational costs associated with e-commerce such as additional staffing) $200,000 $500,000