Developing an E-commerce Operational Plan: A Case Study of BBQ Fun

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MANAGING OPERATIONAL
PLAN

TABLE OF CONTENTS
Assessment Task 1...........................................................................................................................1
Brief Summary.............................................................................................................................1
Resourcing Needs........................................................................................................................2
Action Plan..................................................................................................................................4
Performance Indicators for E-commerce Strategy to Target Financial and Operational Factors4
Development of Balanced Scorecard...........................................................................................5
Operational Plan Risks................................................................................................................6
Contingency Plan for Risk Management.....................................................................................7
Resourcing Proposal to Operational Manager.............................................................................8
Assessment Task 2.........................................................................................................................11
Implementation and Reviewing of Physical Resourcing...........................................................11
Implementation and Reviewing of Human Resourcing.............................................................11
IP Requirements.........................................................................................................................12
Interview Planning for Human Resource..................................................................................12
Evaluation of Assessment and Recommendations....................................................................13
Assessment Task 3.........................................................................................................................14
Monitoring Performance Plan....................................................................................................14
Remedies to Contingency Plan..................................................................................................14
Coaching Sessions for Managing Performance.........................................................................14
About Operational Plan.............................................................................................................14
Recommendations for Operational Plan....................................................................................15
References......................................................................................................................................16

LIST OF TABLES
Table 1: Essentials of operational plan............................................................................................3
Table 2: Action plan for e-commerce strategy................................................................................4
Table 3: Indicators of performance..................................................................................................4
Table 4: Balanced Scorecard...........................................................................................................5
Table 5: Risk register.......................................................................................................................6
Table 6: Resource needs..................................................................................................................8
Table 7: Investment plan at initial stage..........................................................................................9
Table 8: Interview plan..................................................................................................................12
Table 9: Evaluation and assessment plan......................................................................................13

Assessment Task 1
Brief Summary
BBQ Fun refers to industry that aids in offering consumer goods and services through internet
platform that functions with website. It has been found that it is currently lacking in e-commerce
functionality due to which CEO and board members has initiated e-commerce functionality that
aids in serving consumers in efficient and effective manner. The managerial board will be taking
responsibility for practising e-commerce strategy using best activities of operational planning. It
is essential for management as well as organisation to comply with privacy and security laws and
regulations that considers payments and transaction methods. It further requires to get register all
websites under trademark and copyright for protecting legal rights (Schwanke and Reimer,
2018). The organisation needs focus for creating operational plan for initiating e-commerce that
includes various targets that includes the following:
 For boosting sales revenues from estimation of last year sales.
 The basic needs and demands of consumer must be fulfilled by holding customer oriented
approach.
 The lack of functionality of e-commerce creates negative impact by high operational cost
that is targeted for reduction.
 The customer required to serve quality products and services by taking e-commerce help.
 Requires boosting consumer satisfaction for improving organisational profile.
In current time, BBQ Fun is aimed at dispensing online and quality business services to potential
or global consumers. The firm is planning for implementing and adopting operational plan that
will provide major changes in business functioning by targeting change in major areas such as
marketing, accounting, software development, IT, financial and contingencies policies. The firm
is facing absence of facility related to e-commerce that states requirement of creating operational
plan (Yao, et.al, 2019). The organisation will get huge benefits if it changes present plans of
operations by focusing on bringing e-commerce technique in business functions. For getting
successful results various models and methods must be practised in development plan that
includes –
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Action Outline – The customer survey must be done for determining operational planning needs
of business.
Defining Aims and Objectives – The goals of organisation can be managed effectively by listing
its strengths and weaknesses that can be obtained using swot model.
Rectifying Risk Factors – the factors that might impact business operation consist of external
competition, getting fail in complying with safety of health needs and not following rules and
regulations. Such issues can be determined by researching whole organisational situation.
Examining Performances – The performances of functioning can be identified through budgets
and key performance indicators (Long, et.al, 2017).
Resourcing Needs
There are several resource needs for strategising e-commerce in operational plan that consist of
funding source, human resources, machinery and equipment. The resource needs is essential to
find by indulging in regular meetings conducted by technology consultant as well as manager
sales and marketing. Following are different role plays that include:
1st Role Play
Consultant - The development of operational plan strictly requires new additions and changes.
Manager of S&M – According to me, the best idea will be hiring and appointing new workforce
in firm by eliminating old ones.
Consultant – This option is not relevant as replacing old employees will create burden on new
people and it will further incur high cost.
Manager of S&M – the best method will providing strong training to existing employees by
hiring some number of people so that seniors will be able to guide new ones that will save cost
too (Nickless, 2016).
Consultant – Yes, this idea is much better.
Based on above discussion held in meeting, there are several requirements that are essential
while creating operational plan such as:
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Table 1: Essentials of operational plan
Serial No. Resource Name Quantity Requirements Costing
1. Human resources in different
units:
 Service provider for
online customer care
 Delivery executives
 Warehouse operator
 8 resources
(online services
provider)
 6 executives
 4 workers for
warehouse
 The cost of
recruitment
consist of
$30000
 The training
for current
employees
will cost
$24000.
2. Machinery:
 Forklifts and trucks for
delivery
 6 trucks  Cost will be
$330000.
3 Fixed assets:
 Office for starting
activities and
operations
 $50000
2nd Role Play
Consultant – There are various problems and issues in current technology that requires safe and
secure measures for strategising e-commerce.
Technology Consultant – We are searching various measures for practising security and safety.
Consultant – can you give surety about copyright for firm’s website?
Technology Consultant – Yes, we are aware about is and taken website copyright in starting
only (Kavanagh and Johnson, 2017).
Consultant – What is cost identified for website development?
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Technology Consultant – For developing fresh website for BBQ Fun the budget must include
$100000 according to estimation.
Action Plan
Table 2: Action plan for e-commerce strategy
Milestone: Action or/end objective (to
achieve strategic aims of physical or human
resourcing)
Date Person
Responsible
Resources or
Budget (where
applicable)
Physical Resources:
 Buying vehicles for delivery
16/07/2013–
31/07/2013
Sales and
marketing manager
$330000
 Buying equipments & machinery 01/07/2013-
15/07/2013
Sales and
marketing manager
$30000
Human Resource Planning:
 New employee recruitment
01/08/2013-
30/08/2013
Human resource
manager
$30000
 Existing and new staff training
sessions
31/08/2013-
30/09/2013
Human resource
manager
$51000
 Channel of communication 01/10/2013-
16/10/2013
Human resource
manager
Need of rights of intellectual property: 16/10/2013-
15/11/2013
Sales and
marketing manager
$100000
Performance Indicators for E-commerce Strategy to Target Financial and Operational Factors
The operational plan development for requires successful estimation of budget that list each and
every activity that takes place in organisation. In reference to this, a key performance indicator is
essential to use as it refers to quantifiable measures for analysing organisational success as well
as growth (Parmenter, 2015). The strategy has been discussed with the consultant from
technology consultant and S&M manager that has aimed on following performance indicators
which are as follows:
Table 3: Indicators of performance
Key Performance Indicators –  Margin for net profit
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Financial Target  Price of products sold
 Margin for gross profit
 Sales revenues
Key Performance Indicators –
Operational Target
 Minimising cost of operations.
 Revenue improvements.
 Improvement in service and quality of products for
boosting level of consumer satisfaction
Development of Balanced Scorecard
Balanced scorecard is determined as management system and strategic planning that helps firm
in aligning business operations that has strong strategy and vision to monitor and check firm’s
performance in context to planned objectives and goals (Akkermans and Van Oorschot, 2018).
Thus, BQ Fun needs to mention plan of balanced scorecard for identifying performances that is
discussed below:
Table 4: Balanced Scorecard
Key Result Area
(KRA)
Target Key Performance
Indicator (KPI)
Result
Human Resource
Development
The injuries has target
to 0 and absentees
number must be less
than 3% from total
working hours
Zero injuries will
provide consumer
satisfaction and low
absentees will improve
revenues as well as cost
of operations.
This will be beneficial
for boosting employee
engagement by creating
quality and best services
for global and potential
consumers.
Improvement in Cost
Centre Performance
The management has set
incur cost target up to
$5004714
The best method will be
cost of product sold.
The method of
inventory management
and restraint from
budget will provide idea
of reducing prices for
matching with target set.
Human Resources The coaching sessions The method of It will prove to be best
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needs to be increased
and development of
training programs for
improving operational
activities.
improving quality of
products and services is
important.
and appropriate method
for making consumer
satisfied that boosts
consumer loyalty
towards firm.
Financial Resources $11 million has been
targeted by selling
products and earning
revenues.
Net profit margin, sales
revenues and gross
profit can be used
(Gibbons and Kaplan,
2015).
The mode of collective
operations needs to be
initiated for obtaining
sales revenue till $11
million that helps in
completing targets.
Operational Plan Risks
The creation of operational plan in BBQ Fun will bring and introduce inherent uncertainties and
risks. Thus, the organisation aim on managing risks using risk register that helps in identifying
risk impact and probability ratio according to firm’s performance (Sadghiani, et.al, 2015). While
knowing various risks contingency plans are created that helps in managing the situation but it
firstly requires listing the various risk that might occur in operational plan that is mentioned
below:
Table 5: Risk register
Risk Determined Impact Probability Current Control Measures
Ownership Right of
Intellectual Property
Medium Low It is essential for firm to comply with all terms
and conditions related to IP tools for handling
the risk that is essential for securing firm
rights to get exploited or misused.
Failed in Dispensing
Employee Training
Sessions and Programs
High Medium The managers of organisation need to motivate
team and employees for performing in better
manner for obtaining high incentives created
through management policies. It is important
to determine such risk for securing operations
and activities as it might affect quality of
6

products and services.
Failed in Complying
with Provisions of
Safety and Health Acts
High Low It is important to practise laws related to health
and safety in organisation for maintaining best
and better functioning. The organisation needs
to initiate WHS (Work Health and Safety Act
2011) that will dispense framework for
workers through welfare, health and safety at
workplace. It is important to maintain
regularity in work (Reason, 2017).
Contingency Plan for Risk Management
Contingency Plan
Company Name : BBQ Fun
Name of Person Developing Plan: Consultants
Who was consulted as part of this plan?
Name: Stakeholders Position: Management
Risks Identified:
 Losing ownership rights related to intellectual property
 Issues in regulation for employees related to health and safety act
 Problems in giving employee training sessions and program
Activities or Strategies for Minimising Risk By When By Whom
a) Privacy policy must be reviewed The issue when comes
related to literacy and
privacy that policies must
be rechecked from time to
time (Kliem and Ludin,
2019).
Handled by technology
consultants
b) Operational activities needs to go
through performance benchmark
standards
The problems will be
identified when employee
or team gets failed in
Tackled by management
team
7

achieving organisational
needs and requirements
related to aims and
objectives.
c) Monitoring must be done within
initiated provisions that should be
done on certain time for health and
safety acts
The issue will be easily
identified is employee
gets weak or hurt during
task that needs help of
WHS act.
Initiated by
management tem
Resourcing Proposal to Operational Manager
Business Proposal
To,
Operational Manager, BBQ Fun
The proposal is created for purpose for giving approval to resources for practising e-commerce
plans and strategies in organisation. It emphasizes on discussing physical and human resource
needs that helps in practising operational plan (Morgan, 2018). By considering staff and
management of firm there are various needs that are listed below:
Table 6: Resource needs
Requirements Particulars Resource Numbers
Physical Resources  Forklifts 3
 Space for warehouse and office 15000Sq m. (50% for
displays and 50% for
warehouse)
 Delivery trucks 6
Human Resources  Warehouse workers 4
 Representatives for customer service and
online sales
8
 Product delivery drivers 6
8

Aforementioned needs can be completed by developing initial investment plan that is important
for BBQ fun that includes:
Table 7: Investment plan at initial stage
Costing: Initial Investment (E-commerce strategy)
Resources Evaluation Costing
Promotional costs $300000
Equipment and plant  Forklifts $10000 * 3 = $30000
 Delivery trucks $50000 * 6 = $300000
Staff training Training for online consumer care $3000 pp = $24000
Website developers $100000
Recruitment pricing $30000
Configuration for office and warehouse $50000
Change management and leadership
training to leaders and store managers
$3000 each = 1 Gold Coast manager for store and 3 team
leaders, 4 Brisbane team leaders and 1 store manager *
$3000 = $27000
Total $861000
Based on above evaluation, three years will be required for investments returns according to
profit expectations. The employees will gain best returns within three years as the investment
done is appropriate and will handled according to top management. The whole process has been
discussed with chief financial officer that has given an estimation of investment returns in three
years that is listed below:
 1st Year - $200000
 2nd Year - $500000
 3rd Year - $800000
Thus the current cash flow includes $180000 + $600000 + $420000 = $861000. The project
planned is very much preferable as estimation related to profitability index of investment consist
of 1.39 that is higher than 1. The plans have been created by managers to deal with contingent
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