Detailed Operational Plan Report for Leadership and Management Diploma

This report presents a comprehensive operational plan, focusing on resource allocation, key performance indicators (KPIs), and contingency planning within the context of a leadership and management diploma. It analyzes resource requirements, including personnel, facilities, and raw materials for a cafe, while also addressing performance monitoring processes, and developing contingency plans to mitigate risks. The report further explores effective communication with stakeholders, recruitment, induction, and performance management strategies. It includes a financial analysis of the cafe's performance, examining income statements, balance sheets, and financial projections to support resource proposals. The report also includes a case study analysis and a role-play scenario to demonstrate the practical application of the operational plan.

Operational plan
Diploma of Leadership
and Management
Student name
Professor name
Student ID
Date and time
University name

Operational plan
Table of content
Assessment 1...................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................6
Question 3....................................................................................................................................7
Assessment 2.................................................................................................................................10
Part A Case Study......................................................................................................................10
Part B Role Play.........................................................................................................................12
Assessment 3.................................................................................................................................16
Question 1..................................................................................................................................16
Question 2..................................................................................................................................16
Question 3..................................................................................................................................17
Question 4..................................................................................................................................17
Question 5..................................................................................................................................18
Question 6..................................................................................................................................18
References.....................................................................................................................................19

Operational plan
Assessment 1
Question 1
Consider yourself as an operational manager in your current workplace. You have to develop and
implement operational plan using information from your organization.
 Plan adequate resource allocation
Duke’s coffee: Location is very important for any café outlet. It is already being operated in
Melbourne location; and hence the operational plan only needs to be redefined by adding new
dining areas (space taking on rent adjacent to the current outlet). Here, I will list down the
resource requirements for Dukes coffee which would include aspects like experience, skills,
time, facilities, products, and raw materials. To operate efficiently in a Dukes coffee restaurant, I
would require 5 personnel operating between 9 AM to 5 PM and 9 personnel operating from 5
PM to 10 PM, 5 working hours. 3 personnel will be handling billing queues, 3 will be serving
orders and 3 will be handling kitchen operation. Less number of personnel will be able to serve
in morning time because of fewer customers visiting the store. All employees must have
experience of 2 years of more, having hotel management course or related degree. The sitting
arrangement for 30-40 people is needed: 7 tables (big) with 4 chairs each and 6 tables (small)
with 2 chairs each, as part of arrangement in the dining area. Raw material will include coffee
beans, pastas, burgers, vegetables, sauces and corn floor. As and when we will start our
operation, the head chef will send his or her requirements for cooking materials just-in-time to
avoid the unnecessary wastage. Furthermore, we have developed a ERP system where resources
are managed in real time with a timely update each morning (Høpfner, 2017). Budget will not

Operational plan
vary much as compared to last year; only a chunk of rent will be added to the current cost
budget.
 Choose relevant key performance indicators
The key performance indicators are described as below. It has been segregated into three
different operations such as kitchen management, front line management, and other operations
activities.
kitchen management KPI
Cooking time per dish
Profitability
Total inventory used
Total inventory wasted
Productivity per head
Front line staff KPI
Serving per head
Feedback of customers
Customers ordering suggested items
Staff turnover
Other operational cost KPI
Return on investment
Technological efficiency
 Put in place performance monitoring processes
The performance monitoring process is described in the figure for Dukes coffee café, it is very
important for a company to follow a particular performance management system to manage the
staff and companies’ annual performance.

Operational plan
For Dukes, above performance management system will be followed. The process will start by
collecting data from employees and end customers, and combining both the reviews would
eventually help us to analyze the current scenario of the company. It is essential for any company
to implement effective performance management system. This will enable us to recognize the
strength of our staff and areas of improvement. Dukes will encourage employees to fill the
feedback form and give yearly remarks for the same. Management will look at the remarks and
set new goals based on their past performance pattern. The entire Ifs and Buts will be discussed
with the management in the performance interview. Furthermore, underperformer needs to
justify their failure and trainings will be given if required to particular group of people (Leonard,
2019).
 Develop relevant contingency plans.
The ontingency plan for Dukes cafe is as described below in the table. Furthermore, mitigation
strategy or action will enable us to decrease the intensity of identified risk factors.

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Risk factors Intensity of
risks
Mitigation Actions
Less brand awareness Low Continuous monitoring on website traffic
Continuous evolving marketing strategy
Distributing flyers
Aggressive sales
pitching by competitors
in the market
High Continuous monitoring of promotional campaign
Promoting key differentiation of Dukes coffee
More discounts on purchase or combined product
marketing tactics
Difficult to get trained
chefs and employees
Medium Connect with recruitment consultancy
Designing appropriate training module
Regular check up on consumer proffered reciepies and
preparation
Continuous updated cooking tactics
Demand for certain experience and degree
New upcoming start up
or famous brand threat
High Continuous market environmental analysis
Consumer feedback and surveys for preferred coffee and
snacks taste and items
Adjustment in pricing and offering
Corporate discounts
Introducing happy hours to gain more attention
Question 2
Communicate effectively with relevant stakeholders (discuss with your assessor assuming him or
her as the relevant stakeholder of the organization) during the development and implementation
of the plan.
Based on the market analysis, it is observed that café business is growing every year by 5%
margin in Melbourne; hence it is important to rent the adjacent place to make café more
spacious. Based on the feedback, Dukes coffee cafe is liked by everybody within 500 meters. We
can observe on Dukes website and Google reviews page, that everybody has shared positive

Operational plan
reviews about the food and place, few of them have also shared group pictures. This creates
positive word of mouth in the industry. On renting out the next place will enable us to serve the
customer more efficiently. We would shift kitchen there and make the dining space more
spacious. The topic will be discussed with top management and facts will be supported to
negotiate well from budgetary perspective.
Question 3
Develop and implement strategies to achieve the operational plan within the organization’s
policies, practices and procedures.
 Recruiting, inducting and developing personnel accord to the organization’s policies.
Recruitment process involves the steps: obtaining approval from top management for finding the
employees, approval of budget from finance department, giving advertising in the recruitment
agencies or newspaper, or job portal, and receiving the pool of applications. After we get the
applications, we screen the applicant based on their hotel management degree and experience at
any food outlet. Based on the selected application, the interviews will be arranged. Front line
staff will be recruited directly but backend staff such as chefs will be asked for practical exams.
It is important to check their skills of cooking different items with different ingredients. It is
important to check the budget while recruiting experienced staff.
Furthermore, selected candidate is required to go through the induction process where they are
being introduced to several codes and conduct of Dukes coffee cafe. They have to note the legal
requirements needed at workplace, need to know about the evacuation plans in case of fire or
other emergency situation. Induction process talks about leave calendar, travelling facilities,
overtime bonus, canteen facilities etc to make employee clear about their working conditions.

Operational plan
We being new in the market, we don’t have such intellectual property registered. We don’t have
copy right or patent on any recipe or procedure. As mentioned, performance management system
in Dukes coffee is very clear and easy to understand. The process starts with data collection,
analysis and ends with implementation of new protocol. It is important for Dukes coffee to
develop, monitor, document and review the performance dashboards in order to achieve
productivity. The performance is measured thru direct sales, customer ratings or feedback, their
business rating and observation. It is essential to implement efficient performance management
system to monitor the annual sales targets of all the outlets (Bell, 2018).
Let us now identify the budget and financial performance of the company.
 Identify and analyze budgets and financial information
Based on the given budget and financial statements of previous years, I have successfully
extracted the data of Dukes cafe. Here we can see that café is generating profit near to 2 lakh
dollars every year. However, the profit is not increasing with the same growth rate every year but
it has increased the number of cups sold through the year. The reason could be giving more
promotional discounts and offers given to the end customers. Next year with the increasing rent
of adjacent place, the café must sell more number of coffees and desserts as compared to last
year to maintain the profitability. Overall it has been observed that, Dukes café is not gaining the
expected net profit, but it has certainly gained good brand image in the market. Looking at their
assets and liabilities, they have low liabilities over their assets. Duke’s café aims to increase their
reach to end customers rather than getting just higher numbers in profits.

Operational plan
Statement of Financial Performance of Dukes café (yearly projection)
Income
Food sales $120,000.00
Cocktails sold $4, 08,000.00
Catering fees $190,000.00
Total Income $7, 18,000.00
Cost of Sales
Food purchases $ 1, 00,000.00
Beverage purchases $105,000.00
Total cost of sales $2, 05,000.00
Gross Profit $5, 13,000.00
Expenses
Marketing $45,000.00
Depreciation expense $20,000.00
Insurance $10,000.00
Employment expenses
Wages and salaries $110,000.00
Other employer expenses $6,000.00
Rent $50,000.00
Telephone $1,200.00
Services
Electricity $6,000.00
Gas $6,000.00
Water $2,000.00
Total Expenses $ 2, 56,200.00
Operating Profit $ 2, 56,800.00
Other Expenses
Interest expense $14,000.00
Training $16,400.00
Total other expenses $30,000.00
Net Profit /(Loss) $ 2,26,800.00
Equity
Partner 1
Partner 1 drawings ($40,000.00)
Partner 2
Partner 2 drawings ($40,000.00)
Retained earnings $261,805.00
Current year earnings $226,800.00
Total Equity $408,605.00

Operational plan
Assessment 2
Part a Case Study
You have to read and understand the Case study and all documentation of Coffee Villa provided
carefully. Considering yourself as the Manager in the organization, you have to answer the
following questions in the form of a detailed report.
1. You have to identify information for supporting resource proposal ( for example you can
chose the financial information source both the CoffeeVille Budget and financial
Projections 2011/2012 and CoffeeVille Financial Statements 2011/2012 )
Information material Extracted information
Invoices Name of the café, postal address, phone
numbers, consumer details and areas
Orders and invoices of purchase Quantity of material, pricing of food ,payment
conditions to suppliers
Cash flow and cheques payment Receiving payments from end customers via
sales and recordings of expenses
Budgetary projections Net income, operational expenses of the Coffee
ville, furthermore, the detail of assets and
liabilities can also be studied reading out these
materials.
Information extract from financial statements Projected From financial statement
Total income $1,260,000 $1,200,000.00
Gross profit $660,000 $590,000.00
Operating profit $274,768 $192,340.00
Total expenses $385,232 $397,660.00
Net profit $232,768 $153,940.00
Total Assets $761,805.00 $737,017.68
Total liabilities $200,000.00 $141,272.68
Net Assets $561,805.00 $595,745.00

Operational plan
Total Equity $794,573.00 $595,745.00
Net Cash Flows from Operating Activities $236,018.00 $145,212.68
Net Cash Flows from Financing Activities ($120,000.00) ($120,000.00)
Net Increase/Decrease for the Period $116,018.00 $25,212.68
Based on the given financial statements and projections, the relevant information has been
extracted for CoffeeVille for the year of 2011 and 2012 (N.A, Financial statement , 2011-2012).
2. After identifying you have to write an email or letter to the management of the organization
highlighting the need for resources
To,
CoffeeVille management team,
CAN 300000000
3216 collins streets,
Melbourne ic 3000
P 031 1234 5678
Australia.
Dear Team,
With reference to the financial documents of CoffeeVille Melbourne outlet of 2011-12, it
was observed that we need more equity for maintaining profitability against higher expenses. We
can see in the comparison sheet, the income is more or less equal in projection and actual sheet.
But the gap is higher under the head of expenses, assets and liabilities. We can see that two
partners A and B are investing and withdrawing similar amount, but decreased level of net
income is accounted in paying taxes and corporate payables. Hence, it is important to increase
either sales or equity components to meet the projected profitability. The operating expenses are

Operational plan
higher than projected. It is imperative to take corrective actions to mitigate the risk and increase
the profitability of Cafeville.
Operational Plans
Here, we would just increase the equity and aim to add one more partner from our end. If not,
then for next 2 months we would focus more on social advertising rather than commercials
which effectively needs more investment.
Part B Role Play
Role Play 1
In the first scenario you have to consult with the health and safety specialist about changes to
organization policy which you did in Assessment 1
Consulting with health and safety specialist
Ø The consultant: hi good morning
Ø Me: good morning and very happy to see you at Dukes café. Today we are going to talk about
few health and safety measures which should be kept in mind as a part of restaurant management
team.
Ø The health and safety consultant: yes it is important to be safe first whether its frontline
operation or kitchen staff.
Ø Me: Please suggest few of the actions or measures we should take as a part of Dukes café.
First, let me take you to all operational places in order to understand the operations more
effective.