Risk Management in Business Operations

This assignment delves into the critical aspect of risk management within a business context. It examines supply chain risks, specifically outlining the process of raw material procurement through an auction-based system. The assignment further analyzes the concept of intellectual property (IP) and the associated risks businesses face. It highlights strategies to mitigate these risks, including legal agreements, confidentiality contracts, and claiming legal rights over IP assets.

Running head: OPERATIONAL PLAN
OPERATIONAL PLAN
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Name of the University:
Author’s Note:

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Table of Contents
Part A...............................................................................................................................................3
1. Human Resource Planning Model........................................................................................3
2. Sourcing Human Resources..................................................................................................5
3. Approach adopted for Sourcing Employee...........................................................................5
4. Assessment of Candidates....................................................................................................6
Induction of Successful Candidates...........................................................................................10
Part B.............................................................................................................................................11
Physical Resource Requirements...............................................................................................11
Options available for Resourcing..............................................................................................11
Physical Resourcing Option Approved.....................................................................................12
Potential suppliers......................................................................................................................13
Potential Suppliers.....................................................................................................................13
Specialization.............................................................................................................................13
Charles automobile company....................................................................................................13
Forklifts and Machinery............................................................................................................13
William and sons Pvt ltd............................................................................................................13
Trucks and automobiles.............................................................................................................13
King motor company.................................................................................................................13
Forklifts and trucks....................................................................................................................13
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Evaluation of Suppliers..............................................................................................................13
Selection of Supplier by Tender Bid Method............................................................................14
Part C.............................................................................................................................................14
Reference.......................................................................................................................................16
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Part A
1. Human Resource Planning Model
Human resource planning model refers to the plan which is prepared in order to addresses
the workforce requirements of the company. The planning for human resources requires
preparation of job descriptions, competency requirements and also develop strategies which will
be help in maximum retention of employees (Brewster and Hegewisch 2017). As per the
requirements of the BBQ fun, the company is trying to develop further its business from the store
operations to further online operations of the business. BBQ fun is trying to establish its own
websites in order to increase it sales with the help of e-commerce facilities. The human resource
model of BBQ fun reveals the forecasted demand for employees and also forecasted supply of
employee which the company expects considering the demography, technological changes,
employee turnover rates and other determining factors.
As per the plan of the business to expand its operations in websites using e-commerce
facilities to increase the overall revenues of the company (Finch 2016). The requirement of the
company as per the operational plan prepared by the company is to expand its business where the
company will be requiring eight online sales and customer services people who should have the
necessary skills and knowledge of e-commerce and how to handle the work process. The
company will also be needing to train the existing workers of the company in the new sales
website program which is to be followed by the company (Bratton and Gold 2012). The other
requirements of the company for employee includes six additional drivers and four warehouse
workers. The above estimates are prepared on the basis of the operational budget as prepared by
BBQ fun. The company plans to train the existing employee of the two stores for the purpose of
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Open new Website
which facilitates e-
commerce facilities
in BBQ fun
Requirement of
employees which are
8 online and
customer services, 6
drivers and 4
warehouse workers
Requirement of skill workers
for the website operations
and customers services with
knowledge of online
websites.
Appointment of supervisor
for the online website team
and customer services team.
The cost consideration
for establishing the new
team of e-commerce in
website and customer
service team and also
for the physical
resources
Setting of new
objectives and plan
which can improve
the business.
allocating them to the online sales services as required by the company. The company as per
estimates have extra workers in the two stores which can be used by the company to reallocate
them in the customer service process. The Human resource planning model of the BBQ is given
below:
Figure 1: (Chart showing Human Resource Planning Model)
Source: (Created by the Author)
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2. Sourcing Human Resources
As per the plan and estimated budget of BBQ fun, the company requires eight personnel for the
new team of employee which will be focusing on the online e-commerce services and customer
services of the company. The company will be requiring six additional drivers and four
warehouse workers due to the expansion of the business. The company has decided that the
current business has some additional workers which will be more productive if these additional
workers are reallocated to the new business division of online website and customers services
(Daley 2012). The company wants to train the existing employees of the company and does not
wants to hire new employee for the new e-commerce service division of the company. As per the
proposal of the company in the budget BBQ fun’s management has decided to train their existing
employees in the new e-commerce facilities which the company is going to provide. The
company will be hiring the warehouse workers and the drivers for the delivery trucks by ways
for walk in interview and advertisements for the job opening. The company plans to recruit the
warehouse workers and driver of the delivery trucks. The company plans to advertise the new
opening of the job and recruit employees on the basis of past job experience.
3. Approach adopted for Sourcing Employee
Recruitment sourcing strategies refers to the strategies which business uses to identify
potential employee which the company can recruit as per the requirements of the company. The
sourcing strategies of the company are looked into when the company has certain job openings
and the company wants to hire personnel for the job opening. The company will be sourcing the
employee as required by the company with the use of advertisement media partly and partly from
within the organization. The company will be hiring warehouse workers and drivers for the
delivery truck with the use of advertisement media which can be done through advertisement
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agency or through social media. The requirements of the online e-commerce team will be
recruited from within the organization as the management has decided that the sales team will be
trained such that employees from sales team can look after the e-commerce website and
customer services which the company is planning to establish.
One of the main reasons for selecting advertisement mode for recruiting process is
because in advertisement mode the company can provide a description of the job and announce
to the potential employees what the company is exactly requiring for the designation. And there
are also cases which shows that the through advertisement in social media, genuine candidates
apply for the designated post. Moreover when advertisement is done in social media, the
company receives applications from different candidates, which enables the company to shortlist
the number of employees out of which the company can select the employees. The company also
uses recruitment of employee from within the organization for the online e-commerce sales team.
The company wants to re-train the present employees of the company for the new sales e-
commerce team as such employee are already accustomed to the policies and environment of the
company.
4. Assessment of Candidates
For the purpose of this assignment, the assessment for the post of warehouse employee
and online e-commerce and customer service employee. The general approaches will include
interview and a program for training for employees opting for online e-commerce services.
The interview questions which can be asked to a candidate who is applying for the post of
warehouse employee are given below in the chart:
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Interview planning for the post of Warehouse Employee
Planning aspect Description Time
1. Type of
interview
Selection Interview
2. Objectives The objective of the management is to appoint an
individual who has prior experience in same field.
The personnel should have appropriate management
skills and problem solving ability.
3. Approach
and style
The company will be following tailor designed for
the specific job which is related to warehouse
management.
4. Schedule
1. Establish rapport with the employee
2. Set agenda of the business.
3. Collect information about applicant.
4. Discuss job and company thoroughly.
5. Invite applicant’s questions.
5 mins
10 mins
5 mins
10 mins
5 mins
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5. Topics and
questions
● Previous work experience in specific job
functions.
● Previous training and education.
● Hints of career plans and interests.
● Explanation of the job and company benefits.
Page
Interview planning for the candidate of online service department
Planning aspect Description Time
1. Type of
interview
Selection Interview
2. Objectives  To ensure that the candidate has basic
knowledge of the online websites and
how to handle the same.
 To recruit an individual who can handle
every situation with best possible
outcome
3. Approach
and style
The management will be adopting a conversational
approach so that the communication skills of the
candidate can be judged
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4. Schedule
1. Establish rapport with the employee
2. Set agenda of the business.
3. Collect information about applicant.
4. Discuss job and company thoroughly.
5. Invite applicant’s questions.
5 mins
10 mins
5 mins
10 mins
5 mins
5. Topics and
questions
● Previous work experience in specific job
functions.
● Previous training and education.
● Hints of career plans and interests.
● Explanation of the job and company benefits.
Page.
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Induction of Successful Candidates
The successful candidates who are selected by the above process will be firstly
introduced to the team under which the employee will be working and will also be introduced to
the team head to whom such employees will be reporting. The employee will be given an
overview and the work ethics of the team and will be provided new equipment which the
employee will be needing such as laptop. The above activities will be on the first day of the new
employee. The employee is then placed in training for a 1 or 2 weeks period and after that period
an official induction ceremony is conducted to officially welcome the employees to the
company. At the end of the training period and induction ceremony the employee will be
officially be working the team. As per the policy of BBQ fun the employee performance
evaluation will be conducted after a period of 3 months.
Part B
Physical Resource Requirements
BBQ fun is trying to expand its business with the help of e-commerce websites and
increasing the sales of the company. The physical resources which the company will be requiring
as per the budget prepared by the company are six trucks which will be necessary for the
distribution of the products (Van Wyk 2016). The company will also be requiring four forklifts
which will be necessary for the business. As per the capital requirement of the budget, the
company requires a capital of five million dollars for the smooth running of the business.
Options available for Resourcing
Resourcing Option Advantage Disadvantage
Open Market Purchase The basic advantage of the The disadvantage which the
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purchasing the resources from
open market is that the
company has a lot of options
available to it and a range of
prices is available in the open
market.
company faces is that the
market prices are in most
cases high and therefore also
there exists risks which are
associated with open market
purchases.
Second hand Purchase The main advantage of this
method of purchasing is that
the prices of the resources
purchased are quite low as the
products are second hand. In
comparison with new
resources, second hand
products are less costly.
The disadvantages which is
associated with this method is
that the resources such as
equipment and machinery can
be outdated or defective. The
machinery or equipment may
not have a long useful life
and will be useless for the
company in a period of few
years.
Tender The basic advantage of using
this method of purchasing is
that the company gets a wide
range of offers for the tender
and then the company can
choose the most competitive
and suitable price.
The only disadvantage of this
method of purchasing is that
the number of persons
showing up for the auction
will not be considerable.
Another disadvantage is the
complexity of the entire
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process associated with the
method.
Physical Resourcing Option Approved
The company has selected the open market purchase method for the purpose of acquiring
the assets like the six trucks which will be used by the business in the distribution of the products
from the warehouses and also for the purchase of the four forklifts. The main reason for the
selecting the open market purchase method is that the company plans to engage in the contract
with the supplier of resources so that the supplier can provide the resources in future at the
predetermined prices. Another reason is that the company get a wide range for the same product
at competitive prices.
Potential suppliers
Potential Suppliers Specialization
Charles automobile company Forklifts and Machinery
William and sons Pvt ltd Trucks and automobiles
King motor company Forklifts and trucks
Evaluation of Suppliers
Charles
automobile
William and sons
Pvt ltd
King motor company
Factor Weigh
t (W)
Score
(S)
Weighted
score
Score (S) Weighted
score
Score (S) Weighted
score
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Delivery speed 50 20 1000 40 2000 30 1500
Range of options 20 30 600 40 800 50 1000
Quality 60 20 1200 30 1800 20 1200
Total 130 70 2800 110 4600 100 3700
Price 30 100 3000 150 4500 200 6000
Total score/ 160 170 5800 250 9100 300 9700
The most appropriate supplier which can be determined from the above table is William and sons
private limited as per the above table.
Selection of Supplier by Tender Bid Method
BBQ fun will be requiring raw materials for which the company has decided to issue
tender which will allow the company to select the best bidder who will be selected and given the
tender to supply the raw materials for the company. First of all the company will be advertising
an article which will be inviting all potential raw material suppliers to come to the auction for
bidding for the tender. The company will be then appointing an auctioneer who will be
conducting the auction. The auction will be starting at a base price which will be predetermined
by the company as per the rate preferable by the company. The auction will begin at a base price
and the price will gradually increase part by part until it reaches a saturation point and the tender
will be given to the highest bidder and the supplier will be given the contract for supplying the
raw material.
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Part C
Intellectual property of the company refers to the intangible assets of the company which
the company possess such as patents, copyrights, trademarks. Risk management in relation to
intellectual property covers the areas where adverse events occurring can affect the useful life of
the property. The intellectual property of the company includes patents, copyrights. Every
company which has intellectual property which gives the company a competitive advantage is
likely to face certain risks (Bently and Sherman 2014). The intellectual property of the business
may be acquired or developed depending on the nature of the business. The company faces a risk
that the same intellectual may be developed or used by other third parties. There is a risk that the
trade secrets of the business which is also considered as an intellectual property of the business
may be leaked by the employees of the company when they either leave the employment of the
company or even during the employment of the company. In case where the company is using
intellectual property of a third party on a lease basis then there is a risk that employee might not
be aware hoe to use the same and damage the asset in the process (Drahos 2016). There is always
risk for suits against intellectual property violations which can be filed against the company
when there is a breach of intellectual property contract. The various measure which the company
can implement in order to avoid the above mentioned situation are given below:
1. The company ensure that the company has a contract which include a clause which clearly
points out that the company cannot use intellectual property of any third party without prior
consent on the matter (Williams 2013).
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2. In order to protect the intellectual property of the business, the company should make every
employee sign a confidentiality contract which forbids such employee to disclose the trade
secrets of the company even if the employee is out of the service of the company.
3. In order to protect the intellectual property of a business a person needs to claim the legal
rights of the property so that if a third party copies the same, the company can sue the third party
for the damages.
Reference
Bently, L. and Sherman, B., 2014. Intellectual property law. Oxford University Press, USA.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and practice in European human resource
management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Daley, D.M., 2012. Strategic human resources management. Public Personnel Management,
pp.120-125.
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