Developing and Implementing BBQfun's Operational Plan

This project details the development of an operational plan for BBQfun, a simulated business, focusing on implementing an e-commerce strategy. The plan includes a summary of the operational environment, incorporating legislative and regulatory contexts, and BBQfun's policies and procedures. It explains the role of the operational plan in achieving e-commerce success and discusses the amendment of the existing plan, supported by different development methods and models. The project outlines the budgeting process, researches resource requirements, and includes two resourcing consultation role-plays with a social media/marketing manager and an operations manager. An action plan is developed, covering physical and human resourcing, timelines, and milestones, along with an analysis of resource requirements. Performance indicators, including a balanced scorecard for a customer service representative, are created, and risks to the implementation of the plan, along with contingency plans, are identified. Finally, a proposal for resourcing is developed for the Operations General Manager's approval, detailing the implementation and breakdown of costs. The project demonstrates the ability to develop a comprehensive operational plan, manage resources, and mitigate risks.

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 27–29)
Industry practices in the hospitality industry from the Australian laws
revolve around the:
 Occupational Health and Safety regulated under Safe Works
provides codes of practice for preventing hazards and work
environment risks1. This prevents unnecessary injuries and
legal claims.
 Employer verses employee relations compliance indicates
the minimum wage and employment standards2. This is a
platform for resolving compensation infringements.
 Consumer protection has regulations for the food and
beverage industry features the Food Act and the Australia
New Zealand Food Standards Code3. The latter looks at food
processes, substances and safety4. Also covered is the liquor
licencing for the bar section5.
 Quality management laws such as outdoor dining facilitates
for use of public land6 while the ISO 9001 supports
efficiency7
 Online business operation policies in line with the Australian
Business Licence and Information Service Health Protection
Service8 which has codes of practice for each business type.
It also caters for training and environmental protection laws
b. an outline of the BBQfun policies and procedures that
directly relate to the operational plan
1 WHS/OH & S Act, regulations and codes of
practice<https://www.business.gov.au/risk-management/health-and-safety/whs-
oh-and-s-acts-regulations-and-codes-of-practice>
2 Workers Compensation Act,
1951<https://www.legislation.act.gov.au/a/1951-2/default.asp>
3 Food Standards Code, Food Standards (Australia and New Zealand)
<http://www.foodstandards.gov.au/code/Pages/default.aspx>
4 Ibid, 4
5 Liquor Act, 2010; A2010-35<
https://www.legislation.act.gov.au/a/2010-35/default.asp>
6 Outdoor dinning, s 3 <
https://www.accesscanberra.act.gov.au/app/answers/detail/a_id/2181>
7 Compliance Council (AS) What is ISO 9001
<https://www.compliancecouncil.com.au/standards/iso-9001-quality-management-
system>
8 Australian Business Licence and Information Service ( QN), ABLIS)
<https://www.business.qld.gov.au/starting-business/advice-support/tools/ablis>

Operating a registration process for the business in the hotel industry
involves details of its location needs for safety9. In this operation plan the
employee conduct policies include
 Employment classification indicates who gets employed on part
time, regular basis or overtime basis. This supports benefits and
wage allocation
 Non-discrimination and anti-harassment policies ensure that there is
ethics in the business operations such as training10
 Employment conduct policies explain rules for punctuality, work
attendance and schedules. It caters for leave and disciplinary action
in case of misconduct
 Safety and health policies indicate procedures for prevention of
work injuries and hazards.
 Advertising policies in the market system to protect intellectual
property define the effective use of social media
 Financial procedures are necessary for marinating its budget
objectives
c. an explanation of the role of an operational plan in
achieving the successful implementation of the e-
commerce strategy
An online operation plan guides inputs and outputs. This ensures that the
operations are within the processes, procedural elements and business
activities. An operation plan provides strategies for handling the tasks
within the stipulated goals and procedures11. It is a tool for maximizing the
potential of a business through digital platforms
9 Ibid, WHS
10 See Food Stands, construction and fit out of a food business
premises<https://www.accesscanberra.act.gov.au/app/answers/detail/a_id/2158>
11 Kenneth C. Laudon and Traver Carol Guercio, E-Commerce: business,
technology, society (2016).

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
Amending the existing operational plan is strategic because it seeks for a
cost effective plan for its operations. BBQfun already has clear objectives
and set targets for COG and expenses. Its operational expenses feature
$5,004,714 out of which $1,000,000 is for premises. An online platform reduces the
budget but needs proper implementation, risk management and
performance metrics12. Adherence to quality standards through a
monitoring process checks for risks and performance. Capacity planning
using performance indicators allows for effective training and
management of employees. It also identifies and reduces risks.
e. An explanation of your budgeting process as part of your
operational plan.
The budgeting process is a strategic allocation of finances across
operations. It starts with a planning process geared towards the success of
the business. A feasibility of this business indicates a high spending on
wages and salaries followed by premises. The budgeting process seeks to
level the revenue and spending for a balanced operational process. The
resolve to reduce spending comes from the financial information and is
useful in decision making processes13.
3. Research resource requirements for implementation of e-
commerce strategy.
Online business requires information, IT skills, finances for implementation,
IT equipment, tools and physical location14. The businesses model requires
an innovative approach to entrepreneurial organization15 . This could be a
business to business or business to customer plan16
12 Privacy Act 1988 ( Cth), Australian Privacy Law, s 2.2, Privacy Code of Practice,
privacy Amendment Act 2000
<https://www.loc.gov/law/help/online-privacy-law/2012/australia.php>
13 Paul. M. Collier, Accounting for managers: Interpreting accounting information
for decision making ( 2005), John Wiley & Sons
14 David. J. Teece, Business models and dyamic capabilities, (2018), 51 Long
Range Planning, 1, 40-9
15 V. Kumar and Werner Reinartz, Creating enduring customer value, ( 2016), 80
Journal of Marketing, 6, 36-8
16 Jing Elaine Chen, Shan. L. Pan and Tao Hua Ouyang, Routine reconfiguration in
traditional companies e-commerce strategy implimentation: A trajectory
perspective, ( 2014), 51 Information & Management, 2, 270-82

4. Arrange with your assessor to participate in two resourcing
consultation role-plays.
Resourcing Role Play #1: Social Media and marketing
Manager: I would like a successful implementation of a new IT system for
BBQ. Besides blogs, what are some online sources of information that I can
use for this? Our plan is to reach a regional audience but we want to start
with two sub branches in Queens.
Consultant: Well, Social media is a great way to start. However, your
company needs a wider scope of knowledge for effective sales and
marketing.
Resourcing Role Play# 2:
Operations Manager: How much experience do you have in e-commerce?
BBQ needs to create an online presence and start making money. What
are some revenue collection points for e-commerce? I would also like to
know how we can tackle customer complaints effectively
Consultant: According to your company policies, the first thing would be to
connect with your customers through links17. This takes a lot of creativity
and innovativeness. Fortunately this is cheap to implement and customers
can get portals for sharing comments.
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
Operations Manager: Our operational workflow involves dealing with
suppliers. We are engaging our employees on strategic business. These
activities are critical in sales and marketing but how can we maximize on
employee potential in order to meet our objectives?
Sales and Marketing Manager: Training supports performance in an
organization. However, this has to be within the relevant operations18. That
is why you need operation related training for strategic implementation of
company goals.
17 Wayne. F. Cascio, Leveraging employer branding, perfomance management and
human development to enhance employee retention, 2014, Taylor & Francis
18 Andrews, Hellen, The limits of Australian anti-discrimination law ( August 2016),
Research Report, National Library
https://www.cis.org.au/app/uploads/2016/08/rr17.pdf cited cases include Age
Discrimination Act 2004, Fair Work Act 2009, Sex Discrimination Act and
Antidiscrimination statute ( Cth)

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.
Operations Manager: Do we need any software packages for the online
implementation plan?
Technology Consultant: Intellectual property is critical therefore we need
credible sources for software licences. We can get this online but we shall
observe the patent rights laws for B2B, B2C management 19
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)
e. An analysis of the resource requirements to ensure that the
action plan meets the requirements for implementation.
Objective Activity Responsibility Date Budget
Develop
ERM
service
Technology
requisition
(software)
Procurement, IT
department
May Pending
Business
integration
Additional staff
training,
recruitment &
induction
Human
resource/ICT
June/
July
$480,00
0
Content Design e- ICT May $400,00
19 Giusepe Nocella, Donata Romano and Gianluca Stefani, Consumers' attitude,
trust and willingness to pay for food information, ( 2014) 38International Journal of
Consumer Studies, 2, 153-65

managem
ent
content for e-
networks
( information)
unit/Managemen
t
0
Sign e-
contracts
Create online
payment
system
(invoicing,
security details
etc.)
IT/Legal depts. May $30,000
Managem
ent
change
Develop e-
commerce
communicatio
n points
distribution
channels/supp
ort)
Consultant firm/
Human
Resource/Market
ing
May $24,000
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.
Food & beverages: The cost of goods ratio gives the financial targets.
Influenced by quality based training for sales staff and supplier the BBQ
KPI is the average spending per customer
Advertising Returns from sales; labour cost ratio is the KPI which means
BBQ invests $ 500,000 in advertising based on lower costs for higher
revenue target of $ 11M
Online rating: Give incentives to encourage positive customer feedback
on good or bad services compared to competitors

KRA (key
result area)
Target KPI (key
performance
indicator)
Result
Food &
beverages
$5,890,000 Cost of good
verses financial
targets
1.17%
Advertising
Returns
$62,187 Labour cost ratio
of advertising
verses profit
projections
0.04%
Online rating 1% error rate Overall online
rating
10%
Customer
communicati
on
<10 minutes per
interaction
Average
completion time
20
minutes
Financial
sales
$30,000 sales $ sales $ 50000
Professional
developmen
t
Participate in 2 hours
training
Training hours 152hrs
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:
 Delays in project completion arise due to poor training or
performance contracts. This could hinder the implementation of
the strategy. Lack of the necessary IT skills for ecommerce may
hinder effective completion of this plan.
 Breach of contract may lead to legal suits. This is a risk arising
from the competitive market and may affect marketing units of
the organization. Strict implementation of legal contracts is
necessary

 Safety and health as a hazard means food preparation and
distribution should be within the WHS rules20
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.
Contingency Plan
Company name: BBQfun
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified: Delays in project completion
Strategies/activities to minimise the risk By when By whom
Proper training in e-commerce and staff
retention
June HR unit
Timely implementation of procedures Immediat
ely
All depts.
Budget allocation May Financial
depnt
20 Abdul Gafar Khan, Electronic commerce: A study on benefits and challenges in
an emerging economy, ( 2016), 16 Global Journal of Management and Business
Research, 1<https://globaljournals.org/GJMBR_Volume16/3-Electronic-Commerce-
A-Study.pdf>

Approved variations to the plan based on
contingencies faced
By when By whom
Management transfer May 31 Operations
manager
Employee acceptance July All
departmen
ts
Contingency Plan
Company name: BBQfun
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified: Breach of contract
Strategies/activities to minimise the
risk
By when By whom
Adequate licencing for business design
model
June ICT unit
Legal implementation for trademarks,
copyrights and patents
Immediat
ely
Legal unit
Use of intellectual property (IP) rights and May 20 Management/

responsibilities in Information sharing , Staff
retention
HR
Approved variations to the plan based
on contingencies faced
By when By whom
Compliance with systems regulations
Training in intellectual property (IP) rights
and responsibilities
May 19 Operations
manager
Compensation to repair reputation July All
departments
Contingency Plan
Company name: BBQfun
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified: safety and health
Strategies/activities to minimise the risk By when By whom
Proper food handling May Distributio
n and
storage
unit
Timely distribution Same day distributio
n

Effective supply systems As per
need
All units
Approved variations to the plan based on
contingencies faced
By when By whom
Food replacement As per
customer
complaint
Customer
care unit
Change of distribution channel ‘’ Supply
chain
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
Numbe
r
Resources Costs
1. Plant & equipment $30,000
2. Promotional costs $300,000
3. Additional staff $480,000
4. Consultancy fees $50,000
Totals $860,000
c. benefits to organisation

After the three year span, BBQ expects to gain more revenue through new
channels. E-commerce benefits include:
 low costs of business operations and maintenance
 improved service delivery 21
 better brand image through PR strategies
 higher sales
 improved employee skills
 better customer interactions
d. a list of different approaches to developing key
performance indicators
 Target definition which prioritizes specific customers in specific
regions
 Customer satisfaction in new and return customers.
 Online analytical tools for business on social media tools for
Facebook and Twitter. Click through rate of customer accessing
website
 Effectiveness of end user benefits for sales and marketing team
influences transactions 22
 Branding strategies for revenue per visit projections and strong
brands compared to competitors.
e. risks to organisation by not implementing
 poor brand presence in the region
 low revenue returns
 lost opportunities
 market limitation
 higher operating costs ( e.g. transportation)
 legal suites from IP and copyrights violations
f. outline of identified risks and contingency planning
 poor brand presence needs an aggressive online marketing strategy
with social media tactics
 low revenue returns is avoidable through a balanced approach to
different links for sales and revenue collection
 lost opportunities arising from misuse of online links arises due to
poor training and inability to maximize on the internet as a
marketing platform
21 Jose Ramon Saura, Pedro Palos-Sanchez and Luis Manuel Cerda Suarez,
Understanding the digital marketing environment with KPIs and web analytics,
( 2017), 9 Future Internet, 4, 76
22 Benefits of doing business ( QN) <https://www.business.qld.gov.au/starting-
business/internet-start-ups/online-basics/benefits>

 Market limitation occurs when competitor brands rule the market
share. Curb this through improved e-commerce services
 Higher operating costs (e.g. transportation) can be less with efficient
distributions within specified customer needs. Avoid mistakes when
distributing food to customers
 Legal suites from IP and copyrights violations occur when there is
ignorance of existing laws. Updating the websites and software
facilitates for legal use of tools and online resources
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)
Government websites provide legal responsibilities and WHS
considerations while describing benefits of e-commerce23. Business
magazines have case examples and e-commerce strategies for
consideration24. BBQfun budget projections provide for use of technical
consultants in the implementation plan.
10. In a third role-play, present proposal for approval by the Operations
General Manager.
Operations manager: Having considered the profitability index, I have
prepared a proposal for resourcing. Its cost stands at $860,000 although
it leaves out operating costs for some responsibilities. It is my belief that
its implementation is in line with the organisational policies and
procedures.
Operations General Manager: Was the technology consultant beneficial
in this exercise? Let me have a look at it. You can organize for a
meeting with the implementing team.
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.
Portfolio
23 Econer, Costs & issues starting an e-commerce business or online store, (2019)
<https://www.ecorner.com.au/FAQs-Questions-Ideas-Centre/Costs-Issues-Starting-
An-eCommerce-Online-Business>
24 Geraint Holliman and Jennifer Rowley, Business to business digital content
marketing: Marketers; perception of best practice, 8 Journal of research in
interactive marketing, 4, 269-93

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.
Role Plays -Sales Marketing Consul
-Technology consult
-Operations General Manager
Implimentation
Docs
Planning
Portfoloia
-Summary of Operating plan
-Action Plan
Perfoamnce indicators
balanced score card
-Poposal 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

Costs: e-Commerce strategy (initial investment)
Resources Costs
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 $400,00
0

Additional
marketing
$300,00
0
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)
$200,00
0
$500,00
0
$800,00
0
Present value of future cash flows
(discounted future cash flows with
respect to opportunity cost, inflation)
$180,000 +$420,000+
$600,000 = $1,200,000
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
resulting from poor customer service workstation design
● 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
(COGS)
($5,890,000) Cost of provision of goods,
purchase of stock, distribution.
Gross profit $6,677,000 Gross profit.
Expenses:
Wages, salaries
and on costs
$2,567,890 Wages, salaries,
superannuation, work cover
insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS
management system; change
management.
Communication
expenses
$42,000 Telephone, ISP costs, IT support.
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
amortisation
$177,569 Computers and capital
equipment that is 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.
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.
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 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 to
sustain 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 during these periods
will be to diversify 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
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.

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 through
marketing, research
and personalised
service.
● Completion of
market/marketing research.
● Completion of customer
surveys.
● Completion of reports to
identify marketing
opportunities.
● Conduct quarterly surveys on customer
satisfaction.
● Evaluation of market and marketing data to
determine marketing opportunities.
2 Building reputation for
quality products and
quality customer
service:
● Raise
organisational
profile by 20%.
● Improve client
satisfaction
performance by
25%.
● Percentage of brand
recognition in sought-after
categories in periodic
customer surveys.
● Percentage of customers
with positive view of
organisational
responsiveness, innovation,
quality, ethics, safety.
● Number of customer
complaints.
● Delivery times.
● Number of returned items.
● Audit of supplier quality.
● Regular contact with suppliers.
● Investigate resourcing needs: people, products.
● Fulfil resourcing and distribution needs in
accordance with policies and procedures.
● Maintenance of enterprise resource management
(ERP), point of sale (POS) and customer
relationship management (CRM) systems.

BBQfun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
3 Supporting people to
perform via training
and performance
management.
● Numbers of injuries
(Target = 0).
● Numbers of absentees
(Target = <3% of total
hours).
● Anti-discrimination
complaints (Target=0).
● Lost Time Injury Frequency
Rate (Target=2)
● Percentage completion of
performance plans and
performance management
process.
● Numbers of coaching
sessions completed.
● Numbers of operational-
related training programs
completed.
● Research effectiveness of possible incentives for:
safe work achievement; healthy lifestyle.
● Engage workers with strategic goals of business
and support professional development in line with
strategic goals. (Targets to be set by individual
managers).
● Management engagement with employees to
achieve greater buy-in of organisational goals.
● Include explanation of how activities work with
organisational strategic goals in all
communications to internal personnel.
● Regular coaching.
● Training needs analysis and training (leadership,
WHS, ethical/legal training).
● Strategic goals included in induction program.
● Employee incentives for performance in all areas
relevant to operational and strategic goals.
4 Increasing sales
revenue.
General ledger accounts;
financial statements:
● Revenue target = $11
million
● Profit target = $1,792,286
● Marketing campaigns.
● Sales training for floor staff.

BBQfun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
5 Reduce direct and
indirect costs of
operations.
● General ledger accounts;
financial statements:
○ wages
○ cost of agent services
○ consultancy fees
○ wastage and associated
expenses.
● Expense target =
$5,004,714
● COGS target = $5,890,000
● Renegotiate with suppliers.
● Research potential new suppliers.
● Research new distribution possibilities, such as
e-commerce/delivery.
● Management engagement with employees to
achieve greater employee support of
organisational goals.
● Greater use by managers of budgets to encourage
restraint.
● Greater focus on budget restraint in management
of projects/activities.
● Inventory management through ERM to reduce
overstocking and risk associated with storage.
● Incentives (as part of manager/employee
performance management and bonus system).

Appendix 2: Action plan template
Milestone: Action and/or objective
(to achieve strategic aims of physical or human resourcing)
Date Person
responsible
Budget or resources
(where applicable)

Appendix 3: Balanced scorecard
template
KRA (key
result
area)
Target KPI (key
performance
indicator)
Result

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

Strategies to implement approved
contingencies
By when By whom
Approved variations to the plan based on
contingencies faced
By when By whom

REFERE