Business Operational Plans and Strategies Report for [University]

This report delves into the core components of business operational plans, providing a detailed analysis of their development, implementation, and management. It begins by defining operational plans and identifying key stakeholders, information sources, and resource requirements. The rep...Read More

MANAGE BUSINESS
OPERATIONAL PLANS

Table of Contents
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
1...................................................................................................................................................3
2...................................................................................................................................................3
3...................................................................................................................................................3
4...................................................................................................................................................4
5...................................................................................................................................................4
6...................................................................................................................................................4
7...................................................................................................................................................5
8. Employee recruitment and induction strategies.................................................................6
9. Physical resource for an organization..................................................................................6
10. Service acquisition strategies..............................................................................................6
11. Key indicators of organizational performance.................................................................7
12. Budget and actual financial relating to profit and productivity.....................................7
13. Methods for preparing operational plans..........................................................................7
14. Methods for preparing contingency plans.........................................................................8
15. Role of an operational plan in achieving an organization’s objectives...........................8
16. Procedures and records associated with documenting performance..............................9
17. Approaches for developing KPI.........................................................................................9
18. Legislative and regulatory framework..............................................................................9
19. Fair trading laws and work health and safety..................................................................9
20. Organisational policies, practices and procedures that relate to the operational plan
...................................................................................................................................................10
TASK 2..........................................................................................................................................10
1.................................................................................................................................................10
2.................................................................................................................................................10
3.................................................................................................................................................11
4.................................................................................................................................................11
5.................................................................................................................................................12
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Inventory Management......................................................................................................13
 Average Inventory...........................................................................................................13
 Average Days to Sell Inventory.......................................................................................13
6.................................................................................................................................................13
7.................................................................................................................................................13
8.................................................................................................................................................13
9.................................................................................................................................................15
10...............................................................................................................................................15
TASK 3..........................................................................................................................................16
Role play 1.................................................................................................................................16
Role play 2.................................................................................................................................20
REFERENCES..............................................................................................................................23
2

MAIN BODY
TASK 1
1.
Business operational plan refers to a practical document through which key targets and activities
that an organization is going to undertake in a given period of time, say a year, are outlined. In
every plan concerning business operations, the processes, responsibilities of several departments,
activities and the time frame of the execution of the plan are stated (Moşteanu and Roxana,
2020).
2.
Stakeholders involved in the development & management of operational plan are as follows:
 Escalation points
 Colleagues
 Specialist resource managers
 Employees
 Unions
 Shareholders
 Vendors
 Regulatory agencies
 Owners
 Supply chain partners
 Community members
 & customers.
3.
Key information sources required for the development & presentation of proposal are as follows:
 Business records to analyze current business situation
 Projections to be done in case of new business
 Reviewing the marketing data
 Conducting the SWOT analysis
 Strategic plan of the business
 Previous operational plan
 Budget working papers
3

 Asset register
 Minutes of planning or committee meetings
 Consultation
4.
Resource requirement specialists work in specific groups or communities in order to get the
required help. Their duties involve identification of work to be performed and undertake to plan
in advance to determine resource needs. Accordingly, they confirm the availability of resources
and make arrangements for the shortages (Kyrylov and et.al., 2020).
5.
Consultation process association with operational plan development is the one where
management of the organization undertakes informal & formal interaction between the
organization & its stakeholders. At the time of development & management of operational plan,
consultation with a wide range of people is must which is done through engaging with external
entities such as suppliers, customers or clients, communities, contractors, etc. The consultation
can be done through meetings, interviews and brainstorming (Globocnik, Faullant and Parastuty,
2020). The process of consultation begins by stating the idea on which the whole communication
would be based, then discussion pertaining to the issues where views from stakeholders are
obtained. The purpose for which consultation took place is to invite stakeholders, so that they
can vote on the plans that the management of the company has created and is going to affect
them directly. In this way, information about needs, desires and expectation of organization’s
stakeholders are obtained.
6.
Outlining the content of the operational plan:
 Title page – the name of the company and the name & designation of the person
creating the plan is mentioned beforehand.
 Executive summary – It provides overview of what entire plan includes to give the
reader a rough idea of the entire plan along with encouraging them to continue
reading.
 Definition of mission and objectives of the company – At next step, the mission,
goals and objectives of the organization are determined which indicates the intention
of the company for the period under consideration.
4

 Provision of key performance indicator – it involves breaking down of business by
evaluating metrics that will be used for determining how successful was the planning.
Quality standards should form part of this section.
 Activities to be delivered
 Including a financial summary to indicate the desired outcome in monetary terms.
 Requirements for resources & staff
 Timescale
 A process through which progress would be monitored
7.
Organizational procurement process involves a series of processes & activities that are necessary
for the organization in an attempt to acquire products & services from the suppliers at the best
possible terms (Ávila and et.al., 2019). The procurement process comprises of four stages which
involves identification for the product or services to be acquired, evaluating suppliers and
selecting the best among several alternatives, placing the purchase order and getting the order
delivered as per the set terms & conditions. Therefore, the following steps form part of the
organizational procurement process:
 Identification of the product or services that the company is requiring
 Submission of purchase request
 Assessing and selecting the vendors
 Negotiating the terms & conditions with vendor
 Creation of the purchase order
 Receiving and inspecting the goods that have been delivered
 Approving the invoice and making arrangement for payment
 Recordkeeping
8. Employee recruitment and induction strategies
The recruitment process is consisted the attracting and securing individual to undertake
the specific organisational roles while the induction process is referred as the assuring the new
employees aware about the new roles and working environments. There are various strategies of
recruitment strategies that include the focus on the candidate experience, social media and the
recruiting must go hand in hand, promote and build the employers brand, recruiting metric must
in recruiting as well as career sites of employees are more important than the think (Johnson,
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2020). The recruitments strategies can be providing the training and motivational support to the
employees. The induction strategies involves the induction must be simple that employees can
understand, remember culture of organization, dint end on the first day, use the learning
management system for employees. The induction programs must be attractive and productive
which helps in present the new hires about the organization culture and organisational structure.
9. Physical resource for an organization
The physical resources of organization are materials, supplies, equipments, facilities,
infrastructure, etc. which are utilized in the organization project as well as resources which are
become the part of the organization project. The physical resources are consisted the various
process such as estimate activity resources, control resources, acquire resources and plan
resources management (Steuernagel, 2018). The physical resources are also included in the
business is building and office spaces, machinery and equipments, truck and vehicles,
distribution network and point of sake system, etc. all the resources those are used and important
in the organization and those resources which are important and business not able to run the
function of business without resources.
10. Service acquisition strategies
The service acquisition strategies helps in describe the plan of organization to achieve the
goals and objectives which are set in the service acquisition. It documents is known as the
acquisition plan. There are various service acquisition strategy that include step by step such as
form team, review current strategy, perform market research, define requirements, develop
acquisition strategy, execute strategy and manage performance.
11. Key indicators of organizational performance
The key performance indicator is defined as the measure and used to evaluate the success
of business organization and employees. It helps in meeting the objective for the performance
(Ali and Paris, 2019). There are various indicators which helps in measure the success of the
business and leading the hog success in future for organization such as communication
effectiveness, customers relationship, brand image, employee satisfaction, customers
satisfaction, distraction, trust, project management, supplier relationship, manage the customer's
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frustration, employees competence and competitors of business. The key performance indicator
helps in measure the performance of the business and the business can improve and enhance the
performance with the helps of key indicators.
12. Budget and actual financial relating to profit and productivity
The budget plan in relating to the productivity and profitability of organization is
important to measure the performance and monitor and manage the budget for business success.
Budgeting helps business to control the allocate resources and expenditure to maximize the
productivity and profit (Haralayya and Aithal, 2021). There are various methods of budgeting
which are used by the business such as activity based, value proposition, incremental, etc. the
actual financial is referred as the study of money process and management of acquiring the
required funds and the actual financial include the corporate finance, public finance and personal
finance.
13. Methods for preparing operational plans
Operational plan helps in describe the particular objectives and goals which are set by the
organization to become success in the future. There are two methods of the operational plan such
as standing plan and single use plan. In the context of standing plan, it refers as the plan which
are designed to be used again and again (Jeong and So, 2020). This plan includes the regulation,
procedures and policies as well as helps in support the organizational values and culture. It helps
in delegate the works between the employees and maintain the familiar behaviour with the
polices and procedures followed by the organization. In the context of single use plan, this plan
address at the one time events and projects. It helps in how to address the needs of the specific
situations. The length of the single use plan are varies but the types of single use plan is budget
and project schedules.
14. Methods for preparing contingency plans
The contingency plan is essential part of the business continuity strategy because it helps
in ensure that the business is ready for everything's. It is about the processing the risk
management strategies to tackle the issues in organization. The contingency plan have their four
basic aspects such as disaster recovery plan, business continuity plan, incident response plan and
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business impact analysis (Akinradewo, 2019). This helps in develop and maximize the
effectiveness of organization. There are steps of the contingency plan which helps in the
uncertainty situation such as program management, planning, implementing, testing and exercise
and program improvements. This all steps are most important for the business to manage and
handle the emergency and epidemic situation of organization. The last step of the contingency
plan is review about the contingency in business. There are strategies which can be used to
testing the contingency plan in business with the simulation, parallel testing, desk check, full
interruption and structure walk-through.
15. Role of an operational plan in achieving an organization’s objectives
The roles of the operational plan to assist in doing the work to schedule with the meeting
quality standards and budget as well as that include acceptance and involvement affected
people. It is the strategic documents that helps in define that how the differentiate departments
impart to reach the organization objectives and goals. The operational plan helps in achieve the
organization goals and objectives as well as it is the future oriented because it helps in analyse
the effects of its operations on profit and helps in set the organizational financial position,
enhance the profitability and identifies the weakness of organization (Koleck and Dreisbach,
2019). It also helps in define the processes which require finish to achieve targets and goals of
business. It helps in support the strategic plan and run the task efficiently as possible for achieve
the objectives of organization. The operational plan are important because the business can run
and responds better to change in the workplace.
16. Procedures and records associated with documenting performance
The documentation helps in provide the history of the organization as well as helps in
improve the performance of organization. The documenting performance helps in tracking the
trends and helps in observe the performance and helps in be consistent. The document
performance helps in describe proof of misconduct, present consequence align with the record of
past performance (Haseeb and Hussain, 2019). The record performance in documentation used
for determining the productivity under the standardization conditions and situations. In other
words, it helps in provide the evidence which helps in perform the issues as well as it also helps
in provide the history of employees improvements.
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17. Approaches for developing KPI
The approaches for developing the key performance indicators are most important in
organization to achieve the objectives that include the company health, measure the progress of
organization and analyse and recognize the patterns. There are four approaches which for
developing the key performance indicators such as determine the key strategic objectives, define
the success, decide on the measurements and then format the smart KPI (Jetter and Eimecke,
2018). Example: the KPI to measure the success of company such as financial KPI, customers
services, HR, sales, marketing, health and safety and change management, etc.
18. Legislative and regulatory framework
There are two legislative and regulatory frameworks relating to the implementation and
development of the operational plan in the organization such as work healthy and safety
environments and fair trading laws, both regulations are most important to apply in the business
organization and workers of company (Cejnar and Duke, 2018).
19. Fair trading laws and work health and safety
 Fair trading laws: It refers as the law allowing the company to manufacture of branded
as well as trademark goods to fix the minimum and actual resale prices of these products
by the resellers. This legislation and regulatory frameworks are relating to the
developments and implement the operational plan of the business to manage between the
manufacturers and contract dealers upon the resellers.
 Work health and safety: It is also known as the occupational health and safety. The
work health and safety involves the risk management of every person of organization in
the place of works. This can include the health and safety of every person who work for
the company as well as visitors, suppliers and customers (Boland, 2019). There are
various benefits of work health and safety such as it helps in keep the staff and
employees, improve the employee's productivity, reduce the accidents and injuries at the
workplace as well as reduce the workers compensation and costs of injury.
20. Organisational policies, practices and procedures that relate to the operational plan
The policies and procedures of company helps in provide and guide the roadmap for the
day to day operations plan. They are also ensured with the laws and regulations, streamlines the
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internal process and provide guidance related to the decision-making (Burnard and Bhamra,
2018). If the employees of organization not follow the polices and procedures guidelines then it
impact the bad on the organization.
TASK 2
1.
A policy is a statement which underpins how human resources management issues will be dealt
with an organization. It communicates values and the company expectation of employee’s
performance and behaviour.
Australian workplace has code of conduct in which employees has to follow business ethics
while dealing with customers and their other peers (Rajvanshi and et.al., 2020). Along with this,
the recruitment policy of the company is to hire only candidates that have good qualification and
experience so that it can work properly. Moreover, discipline and termination policy is also there
in which employees will be terminated on the basis of any illegal work or misbehave in the
company.
2.
Construction resource management is comprehensive process that entails planning,
scheduling and managing wide resources for the construction industry. Along with this, it helps
in accomplishing task and meet the project objective in limited frame. Moreover, it allows
manager to deliver project successfully by fulfilling project resources demands on time. There
are necessary resources in the construction project such as human resources. The workforce is
most crucial part in the industry like estimator responsible for estimating materials, cost, labour
needed to complete project (Narayanan, Lakshmi and Kamaraj,2020). In addition to this,
architect job is gather client and develop a creative solution in a blueprint as well as supervisor
acts as intermediator between the workers and the management as well as ensure effective
communication between the two parties.
Moreover, the equipment required for construction projects such as selection of the equipment
depends on the time and cost. Facilities not only improve worker’s welfare but also enhance
10

efficiency like living accommodations for the workers, sanitary and toilet facilities, drinking
water, changing room and lockers as well as canteen.
3.
Manger of the project is responsible for implementing operational plans and need to make use of
proper resources so that outcomes can be achieved in effective manner. Moreover, Australian
construction operational plan is to increase their market share in Victoria by 20% [ over the next
three financial years. Along with this, the company has analysed that in upcoming year there has
been increase in construction industry and to fulfil that it has set key performance indicators like
to enhance new safety building construction by 15% as well as to decrease operating expenses by
5%. The main aim to expand building construction services by opening offices in Victoria and
Canberra over the next three financial years (Guo, Zhang and Luo, 2021). Moreover, resources
required for the project such as site supervision, engineering, architecture, administration,
transportation and drivers. Physical resources required such as trucks, vans, engineering
equipment, project management software and computers.
4
Role Play
Project manager: Hello everyone it has been found that goals are not attended on time and because of that
project is lacking behind.
Site Supervisor: At site there is requirement of proper raw material such as training room so that
employees can be guided properly and the task can be completed in limited frame of time. Along with
this, another material like papers, chairs, pen and computer so that activity can be done smoothly.
Employees: Yes! There is requirement of basic material is must as it play crucial role in doing task.
General manager: what are the workplace documentation and resources relevant to required performance
evidence.
Project Manager: Proper code of conduct will be followed by the employees so that there is no chaos and
communication plan will be implemented so that employees are aware about their roles.
General Manager: Proper raw material need to be given to staff in order to bring out the outcome
properly.
5.
Operation plan template
Operational objectives: To cover large market area through increasing the number of new safety building
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contracts.
Operational
function/
strategy
Performance
standards Target/Key Performance Indicators (KPIs) Timeframe
Person/
Team
Responsible
Budget
Mar
ket
penetration.
To cover at
least 5
market area
of
Australian.
Sales Growth 1 months Marketing
manager
20000
Customer
engagement
strategy
To engage
with
customer
through
Omni
channels.
To identify
that needs
of customer
are satisfied.
 Customer satisfaction (CSAT)
 First-week engagement
25 days Project
Manager
10000
Inventory
Man
age
men
t
To check
the number
of inventory
turn.
 Average Inventory
 Average Days to Sell Inventory
15 days Project
manager
15000
6.
There is various contingency that can occur such as owner, contractor, resources are not proper,
lack of budget and contingency.
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7.
Contingency Plan
Department: Australian Construction Operations
Name of the Planner: (Your name)
Position: Operations Manager
Date: (Assessment date)
Contingency Identified Contingency planning action When Who
1 Contractor Contingency Adding extra fund to estimate cost 10 days Project
manager
2 Owner Contingency To make plan properly 15 days Project
manager
3 Resources are not proper. To purchase material from proper
suppliers
20 days Project
manager
4 Lack of budget To reduce extra expenses and set
the cost properly.
7 days Project
manager
5 Any mistake during constriction Setting the task and communicate
with the employees.
1 day Project
manager
8.
Recruitment plan template
Strategic goal Operational
function
Staff needs Recruitment method Recruitment
timeframe
Budget
Review
business goals
To review
government
key priorities
or emerging
direction that
can impact on
company
Manager Online and offline 10 days 1000
Scan the To identify Site supervisor Offline 7 days 2000
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environment external and
internal factor
that can impact
on the
performance of
the company.
Identify the
gaps
To evaluate
possible skill
shortage.
Human resources
manager
Offline 5 days 1500
Developing plan To include
human
resource needs
in business plan
and
communicate
them.
Project manager 10 days 2000
Measure the
progress
To establish
rules and
regulation in
the company.
Administration
staff
online 5 days 1000
9
Human resources Requirement Physical resources
Site Supervision Trucks
Engineering Vans
Architecture Engineering equipment
Supervision Project management software
Administration computers
Transportation Training room
14

For acquiring human and physical resources the company has to first identify the needs and look
for great suppliers. Along with this, for acquiring human resource company will be holding
online and offline review so that it can select best candidates (Thomas and et.al., 2018). The
requirement process will be having both practical and theoretical test for checking the knowledge
of interviewee. Whereas, for gathering physical resources the company will be contacting with
suppliers in order to get appropriate raw material
10
Intellectual property rights are associated with rights of assets owned by a person and company
which is used to protect against use without consent. Along with this, intangible asset refers to
nonphysical property including ownership. There is need to patent, domain names, industrial
design, trade mark and data base rights. The design patent is very essential for the project and
the company as it protect ornamental design patent as well as invention. All these tools are useful
for safeguarding the technological tools and information.
Self-Assessment Checklist
Assessment Task Activity Completed
as required
Case Study Yes No
1 Access Australian Constructions (Simulated workplace) documents including
policies and procedures and use relevant policies and procedures to undertake this
task. Read the case study operational planning information in the appendix.
✓
2 Research resource requirements for the Australian Constructions operation. ✓
3 Analyse the simulated workplace operational planning information, identify and
list resources required.
✓
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4 Consult the general manager (your assessor) in a role-play and discuss the
requirements for the operational plan development and seek the approval.
✓
5 Develop operational plan including key performance indicators for the simulated
workplace using the template provided in the appendix 2. (Note: the templates
provided in the appendix 2 are for guidance only. You are free to develop a plan
with different headings and columns as long as it addresses the requirements)
✓
6 Identify and list contingencies for operational plan. ✓
7 Develop a contingency plan using the template provided in the appendix 2. ✓
8 Develop a recruitment plan to acquire human resources using the human resources
management policies, practices and procedures in the appendix 2.
✓
9 Develop a plan to acquire physical resources using the simulated workplace
policies, practices and procedures.
✓
10 Identify requirements for intellectual property rights and responsibilities related to
acquisition of technological resources.
✓
TASK 3
Role play 1
Operational manager: Good evening all.
Work team (project managers, Foreman and supervisors): Good evening.
Stakeholders (Contractors, Builders and suppliers): Good evening.
Operation manager: I want to communicate the operational plan for the next one year with
regards to the “Australian Construction”. As we are into the business of providing services to
client who are required to build, extend, and renovate their homes. We will be going to manage
the construction projects right from planning, designing, permits and approvals right through to
lock up.
Contractors: what kind of permit would you obtain for the building construction?
Project manager: It can be any building permit or building approval obtained in written form
from municipal building surveyor.
16

Builders: Who would be responsible for seeking approvals such building permit or building
approval?
Operation manager: For obtaining building permit we need to appoint registered building
surveyor and through him only, application for building permit can be made. Let me know you
all about our strategic goals which includes:
 To be the leader of the industry involved in providing building construction services.
Foreman: How would we ensure that we have become the industry leader in providing building
construction services?
Operation manager: To ensure that we have met the goal of becoming industry leader, we need
to obtain or increase the number of new safety building contracts by 15%. Also, the time
duration within which we are planning to meet this goal is next three financial years.
Supervisors: What steps would we take to attain the target of new safety building contracts by
15%?
Operation manager: Yes, that’s the biggest matter of concern for us. For this, we have planned to
adopt the strategy of hiring and retaining the top talent, cultivate better image in the market
through using quality materials, hiring trained and experience contractors and builders, ensuring
availability of high quality and required quantity of resources all the time to ensure efficiency
and effectiveness in accomplishing the construction project within the allotted timeframes and
many more strategy we are planning to adopt in order to outperform the market.
Operation manager continuing with the strategic goals of the company….
Next is we will maintain excellence in work health & safety standards and to ensure that we have
met this goal we will increase safety performance by reducing the incident rate to 1% per
financial year.
Suppliers: what steps are you planning to take to reduce incident rate to 1%?
Operation manager: Yes, definitely, we have an attractive plan for meeting this goal such as:
 Provision of safety training
 Provision personal protective equipment such as hard hats for protection head, for eye
protection we will provide with safety glasses, goggles and face shields; for the
protection of hearing ability earplugs or ear muffs would be provided. In addition to this,
slip resistant boots, masks and heavy duty gloves will be provided as safety apparel and
17

would be required to be compulsorily worn by each individual present at the construction
site.
That’s all we are planning for ensuring excellence in standards related to work health & safety.
Next goal is to enhance revenue through new acquisitions and repeat business from current client
base. So, for ensuring repeat business from current client base we set target for securing client
retention rate to the extent of 80% for the ongoing contracts. For the new acquisitions, the target
is to acquire 2 ongoing construction business by having 95% stake in ownership.
Contractors: what qualities will you prefer for the acquired business?
Operation manager: the new business must be having experienced and trained team of
contractors and builders. Their supplier base should be able to supply key raw materials that are
necessary for the maintenance of high quality building construction services.
Supervisor: Do we have sufficient fund available for financing these acquisitions or else we will
acquire it from external sources?
Operation manager: Yes, we are planning to obtain funds from external sources.
Foreman: what are we doing for attaining the client retention rate of 80% for the ongoing
contracts?
Operation manager: We are leveraging through the customer data to determine how needs and
expectations are emerging in the contemporary world. We are also focusing on the productivity
of contractors and builders to ensure better quality services for greater customer satisfaction. The
directly associated labor force will be provided with automated technology which leads to faster
and cost efficient operations. Accordingly, construction projects would ensure to be delivered on
the set completion date along with offering reasonable construction rates to customers which in
turn would allow for penetrating market.
Next, we are planning for retaining high quality building construction staff to ensure the
achievement of set target which involves reduction in operating expenses by 5% per annum.
Supervisor: how high quality building construction staff would help in reducing operating
expenses?
Operation manager: for ensuring high quality staff for constructing buildings, we will take into
account the experience and training level of staff, there would higher level project specifications
for architects and engineers involved in the project along with establishing standards, investment
18

will be made in efficient technology and the supplier of high quality raw materials would be
preferred. In this way, work will be done in less resources in terms of time, cost and less
wastages due to the involvement of experienced & trained personnel. Accordingly, operating
expenses will get reduced.
The last goal that we are planning to achieve within the next three financial years is to grow our
business through expanding our operations into other states where we have planned to open new
offices in Canberra and Victoria.
Builders: What route will you use for business expansion?
Operation manager: We are planning for offering franchise ownership to the local entrepreneurs
of the region.
At next step operation manager has shown the organizational hierarchy to work teams and key
stakeholders of the Australian construction business to indicate who will report to whom and
who will receive order from whom. This was done to ensure better accountability and
responsibility within the entire organizational setting.
Contractors: What about the human resources of the organization, is it sufficient or else we need
to hire more?
Operation manager: We are having 16 vacancies at different position such as foreman, engineers,
architects, supervisors, admin staff and drivers.
Builders: What is your recruitment plan for this new vacancies?
Operation manager: We have created recruitment plan for social medias and are planning to
implement employee referral program.
Suppliers: Is there any need for physical resources or it is sufficiently available?
Operation manager: No, we still require trucks, Vans, engineering equipment, project
management software and computers for achieving our strategic goals within the set timeframe.
Is there any query from anyone of you present here? Or else should we wind up the meeting?
Work team: No sir, no queries from this side.
Key stakeholders: Same here sir.
Operation manager: Thank you so much all of you present here for giving your precious time.
All: Welcome Sir.
Role play 2
Operation manager: Good evening all….
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All (CEO, Accountant / finance controller, purchasing officer and human resource manager):
Good evening Sir.
Operation manager: Today we are here to assess the progress of operational plan in meeting
profit and productivity targets and plans. So, we will begin with the identification and discussion
of those areas in which we have underperformed.
The identified areas of underperformance are:
 Poor productivity
 Rising cost of raw materials
 Shortage of skilled staff
 Poor efficient due to lack of advanced technology
CEO: What can we do for higher productivity now?
Operation manager: We need to recruit skilled staff and adopt advanced technology for high
quality building construction services.
Purchasing manager: But for overcoming the issue of rising cost of materials, we need to either
increase our expense budget and offer price accordingly, or else we need to find some other
suppliers from or outside of the state who could supply at lower rates along with ensuring no
quality compromise at all.
Finance controller: We are already on the end node of our budget, it is impossible to raise budget
in the immediate duration of 6 months. We can go for negotiating term credit with suppliers for
financing short term supplies.
CEO: term credit would be the best option but we cannot raise our offer price because this would
lead to higher customer switching rate.
Operation manager: So, what about shortage of skilled staff due to which our productivity is
getting affected?
Human resource manager: We are in the process of implementing employee referral program
through social networking sites which is the best recruitment strategy of the contemporary world.
So, I am sure that would work well. We are also in search of good trainers who could train our
engineers, contractors, builders and architects.
Finance controller: It means we have to include additional component in our budget for
providing for training costs.
20

Human resource manager: Yes, obviously sir, training is necessary for improving the
productivity of staff. We are planning for specialization and quitting for multitasking because it
is found to be wastage of time and efforts as well. So, the training would also be provided
accordingly by determining in which area the staff could outperform.
CEO: I hope we should work on technological ground through which both efficiency and
productivity could be improved. Something like augmented reality, internet of things, machine
learning, etc. Also, there are options for advancing our processes such Glass Fiber Reinforced
Epoxy Pipe System, PVC / CVPC, etc.
Purchasing manager: that’s a good option, Glass Fiber Reinforced Epoxy Pipe System would
cost just 80% of the cost of carbon steel pipe and PVC is also preferred by modern construction
companies due to its feasibility in terms of longer service.
Finance controller: Then, we must go for these option as the same would be helpful in
overcoming the issue of rising cost of raw materials.
Operation manager: I have recommendation for high quality construction material which
involves self – healing concrete and aerogel insulation. These are highly suggested excellent
building material of modern time and our business partners are also using the same.
Next, we need to give higher concern towards the ongoing monitoring processes.
Finance controlling: Yes, monitoring is also necessary for financial resources along with human
and physical resources. So, I would request recommendations for the same.
CEO: Drones I hope would be the better option for the monitoring of human and physical
resources.
Operation manager: Agreeing with the CEO, drones are helpful in conducting survey of the
construction sites along with facilitating monitoring of ongoing construction’s progress.
Further, we need to concentrate on providing support to teams and individuals therein.
Human resource manager: Yes, support to teams and individuals is necessary which could be
possible through team building exercises. Also, if goals and targets for individual teams are
made, then the attainment of higher strategic goals and objectives of the company would be
possible. For the next year, I would suggest that we should go for implementing the opportunities
& responsibilities with respect to leadership among our existing staff which in turn will assist in
enhancing our productivity as well.
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Operation manager: There are certain variations I request in terms of increasing the operating
budget, requirements for physical resources and human resources.
CEO: please specify what variations are required in the operational plan?
Operation manager: The operating budget to be increased by 10% to ensure greater quality of
material and adoption of advanced technology. Also, training to existing and new staff would be
possible with this budget rise only.
CEO: referring to finance controller, I can approve these variations in operational plan, but what
about the financing of this increase in budget?
Finance controller: right now we have sufficient fund and loan proposal from financial
institutions that could be used for financing these variations.
CEO: that’s fine…
In addition to this, I would suggest the protection of technological software associated with
technological advancement.
Operation manager: Yes, definitely sir, I will ensure that the intellectual property rights would be
obtained in association with project manager to ensure the protection of our technological
software.
I will also ensure appropriate documentation of the performance and would request collaboration
from you all in overcoming the underperformance in several areas.
Thank you all for your suggestions and precious time.
All: Your Welcome….
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