Operational Planning, Budgeting, Resource Efficiency, Quality Standards, Customer Feedback and ABC Company Case Study

Assessment
SHORT ANSWER QUESTIONS
Instructions
Please respond to all the following questions. You can write your answers under each
question directly. You might have to undertake the appropriate research to answer these
questions.
1. Broad consultation with other members of the organisation, from team members to senior
management is a good way to contribute to the success of operational planning. When, in
the planning cycle, should it be carried out? What outcomes would you hope to achieve
from this process?
It is important to maintain broad consultation from the start of the operational plan. This can
be done in two ways; formal and informal. In formal way, such as meetings, sessions,
workshops or focus groups, while informal way is through stakeholders. In the planning
cycle, it should be an ongoing process from the start so as to sure the strategic plan and
activities of the operational plan. As a result, accurate outcome can be achieved and
complaints can be solved quickly.
Acceptable answer – main points covered 28 Aug MD
2. Why do budgets need frequent reviews and adjustments? Who is responsible for ensuring
that budgets and other financial documents are accurate? When creating financial reports,
what sources of information need to be analysed?
The audit reviews regarding budget are conducted for understanding the genuine circumstance
of the spending limit. The senior administration or more significant position authority board
of trustees is in charge of guaranteeing the precision of spending plans and other money
related records. During the report presentation, wellsprings of data, for example, spending
plan, reports of present and future figures and financial execution of the organization is
required. While conducting the project management activities, constant review can help the
companies to avoid unnecessary errors in the budget calculation. It helps in conducting an
accurate budget forecast in future. Based on the financial transactions such as sales, purchase
and other cost, the organisation can evaluate and develop the budget.
Marambage, please refer to the Operation & Project textbook for the answer to this question,
28 Aug MD
3. Today, more and more businesses understand that being successful is about more than just
economic performance, but that it is also about their environmental and social
performance. They are aware that increasing use of the Earth’s natural resources places a
@NIET Version 1.0 Page 1 of 14

Assessment
strain on the planet. Responsible businesses are, therefore, making every effort to ensure
that they use resources efficiently. What does the term resource efficiency refer to?
Identify five things an organisation could do to reduce the amount of paper and energy
used and wasted.
Resource efficiency implies the manner by which the assets are utilized proficiently. In other
words, resource efficiency refers to recycle the natural resources used in the companies so
that energy can be saved for future generation. In order to maintain resource efficiency five
steps can be taken by the organisation. Firstly, the organisation can focus on centralising the
purchasing process and introduce policy for recycling for office supplies. Secondly, the
organisations can focus on introducing waste management process. The waste management
process helps to avoid pollution of rivers and other water source. Thirdly, the companies can
focus on using renewable sources such as solar power to save energy. Fourthly, the
organisation can use soft copies of documents instead of hard copies. Documents can be
provided through digital device for reducing wastage of paper. Finally, the organisation can
reduce usage of fuel cars and instead use electrical cars for saving natural resources and
reduce carbon emission.
Marambage, please refer to the Operation & Project textbook for the answer to this question,
28 Aug MD
4. In any organisation there are both internal and external customers. These are all part of the
customer–supplier chain. For the customer/ end-user to receive quality products/ services it
is necessary that all aspects of the customer–supply chain meet specific quality objectives.
Who actually sets these quality standards and how are they set?
The more significant position authority of the administration, for example, directorate
alongside the common comprehension of the marketing and senior power sets the quality
principles. Likewise, the targets with respect to quality standard are set by discovering the
item details and HR experts are enlisted to assume responsibility for the nature of the items
and the lower level administration are approached to execute them. Based on the guidance of
higher authority, employees perform their activities regarding quality development. In some
cases, the senior executives develop a governance structure that includes the quality standard
properly for the employees. Based on the instruction in the governance structure, the company
conducts their activities properly.
Marambage, please refer to the Operation & Project textbook for the answer to this question,
which includes customers, 28 Aug MD
5. How can an organisation encourage suppliers—both internal and external—to participate
in actively ensuring quality standards are maintained so that fewer customer complaints are
likely?
The best way to provide quality goods and services is to establish a business contract with the
suppliers. In the business contract, the organisation can clearly describe facilities that will be
@NIET Version 1.0 Page 2 of 14

Assessment
presented to them. However, the contract will clearly describe that in exchange of the
facilities, the suppliers should provide better quality raw materials to the organisation.
Otherwise, the organisation will take strict action against this issue. Based on the strict legal
terms in the business contract, the suppliers can be forced to provide appropriate raw
material.
Marambage, please refer to the Operation & Project textbook for the answer to this question,
which includes customers and suppliers, 28 Aug MD
6. How can you collect customer feedback about customer service levels, their satisfaction
with products and services and any complaints they might have?
Customer feedback can be collected thorough various process such as survey, interview and
social media reviews. In recent times, customer segmentation is used for gathering knowledge
regarding the issues of customers. In case the organisation is capable of conducting customer
segmentation, then higher authority can personally interact with the customers for identifying
their issues. In this regards, appropriate action can be taken for mitigating the issues of
customers in the upcoming years. In some cases, the customer reviews in social media such as
Facebook, Twitter and Instagram can also help in identifying the issues of customers.
Marambage, please refer to the Operation & Project textbook for the answer to this
question, which includes customers. This answer is too short; a single sentence
answer is not acceptable at this Aug level of study. 28 MD
Instructions:
Please read the case and respond to all the assessment questions. You can provide your
answers under each question.
ABC Company sells a range of exclusive products across Australia through 1 online and 100
retail stores. The organisation is committed to:
- Offer innovative product solutions and meet the changing needs of customers
- Providing high quality and innovative products and services to customers
- Deliver great customer service
- Employing professional and enthusiastic staff
- Adopting sustainable work practices and provide ‘green’ products
- Undertaking continuous improvement processes
The business has a 5 years plan which is to consolidate its position in the market as a lead
retailer for ‘green’ and sustainable solutions for high quality exclusive products. To do this,
ABC will focus on the following business goals:
Financial stability:
@NIET Version 1.0 Page 3 of 14

Assessment
- Increase revenue by 15% (compared to the previous 12 months) by the end of the
financial year
- Maintain annual profit levels of 15% of revenue for all products and services,
calculated at the end of each financial year
- Reinvest 75% of profit back into the business at the end of each financial year
Market position:
- Maintain the number one rating in the annual national industry customer service
awards
- Launch new high quality exclusive consumer products to meet customer demand,
ahead of competitors, within budget and by the agreed deadlines
Right people:
- Provide induction training at the commencement of employment to train new
employees to be knowledgeable, helpful and enthusiastic
- Provide the physical, human and time resources to support an annual professional
development program for all ABC employees
Stakeholders include senior management team, retail store manager, sales staff, online store
manager, customers and recruitment agency.
Activity
(What is to
be done?)
Objective
(Why will
we do it?)
Resources
(Where
will it be
done?)
Procedures
(How will it
be done?)
Responsibl
e person
(Who will
do it?)
When? Budget
Revisit
sales
budgets
and
develop
outlet-by-
outlet sales
strategies
that add
onto the
national
sales
strategy.
To
increase
the sales
of the
services
componen
t of the
business
by 15% by
30 June
It will be
done
across the
150
outlets.
Update each
outlet’s sales
budgets to
reflect the
increased
targets.
Each outlet is
to develop a
sales strategy
to support the
new targets.
Outlet
managers
30 June $3,000,0
00 total
and
needs to
be
supporte
d by a
business
case
from
each
store
Acquire
additional
resources –
video-
conferencin
g
equipment.
To
facilitate
communic
ation
between
all retail,
online and
phone
outlets
Install a
multi-
channel
dedicated
video-
conferenci
ng facility
at each
outlet.
Contact ABC
IT service and
support to
arrange for
supply and
installation.
Allocate costs
back to each
outlet.
Outlet
managers
31
August
$5,000
per outlet
@NIET Version 1.0 Page 4 of 14