Strategic Business Planning for Wannaburger: HR and Management
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This report provides a comprehensive strategic business plan analysis for Wannaburger, a fast-food company. It delves into the organizational structure, highlighting the roles and responsibilities of the human resource department and its impact on employee performance, training, and development. The report examines the importance of effectiveness and efficiency within the company's operations, including strategies to improve food quality, customer satisfaction, and overall profitability. It also addresses human resource requirements, including the need for additional personnel and technological advancements to support the company's expansion. Furthermore, the report evaluates management efficiency and effectiveness, emphasizing the importance of employee morale, incentives, and competitive compensation to drive productivity and achieve business objectives. The report also covers how critical tasks will be assigned and monitored, as well as gaps in the team regarding skills and numbers.

Running head: STRATEGIC BUSINESS PLANNING FOR WANNABURGER 1
Strategic Business Planning for Wannaburger
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Strategic Business Planning for Wannaburger
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 2
Strategic Business Planning for Wannaburger
Task 4
Human Resource Plan for Wannaburger
Organizational Structure and Chart with Infrastructure and Responsibilities
The human resource department is the center of every organization because it is the
department that provides employees who are critical to the daily operations of the firm (Kristina
& Wijaya, 2017). The department carries out activities such as hiring and firing of employees,
remuneration, the provision of company rules and regulation, and performance appraisal
(Shyamala, 2018). It, therefore, ensures that employees are placed in the right department, and
their performance is evaluated against a set of key performance indicators to determine if they
are adding value to the organization (Haberberg & Rieple, 2001). Therefore, to ensure that it
succeeds, Wannaburger needs to have a human resources plan in place.
At Wannaburger, the company is divided into three principal departments. These are the
human resource department, the supply, and logistics department, as well as the food production
and service department. When the human resource department hires different personnel, they are
sent to various departments based on their skill sets and the organizational requirements.
The human resource department has three employees who work together to ensure that all
organization activities are running smoothly. The head of the department is Ruth Khan who
works together with Janet Miller and Jackson Stewart. Ruth Khan oversees all activities carried
out by Ruth Khan and makes the final decision on the employees who should be fired. She does
this by comparing the performance of employees against the set performance levels.
Janet Miller, the human resources assistant, also perfoms performance appraisal activities
to determine if any employees need further training in their field to facilitate their activities. In
Strategic Business Planning for Wannaburger
Task 4
Human Resource Plan for Wannaburger
Organizational Structure and Chart with Infrastructure and Responsibilities
The human resource department is the center of every organization because it is the
department that provides employees who are critical to the daily operations of the firm (Kristina
& Wijaya, 2017). The department carries out activities such as hiring and firing of employees,
remuneration, the provision of company rules and regulation, and performance appraisal
(Shyamala, 2018). It, therefore, ensures that employees are placed in the right department, and
their performance is evaluated against a set of key performance indicators to determine if they
are adding value to the organization (Haberberg & Rieple, 2001). Therefore, to ensure that it
succeeds, Wannaburger needs to have a human resources plan in place.
At Wannaburger, the company is divided into three principal departments. These are the
human resource department, the supply, and logistics department, as well as the food production
and service department. When the human resource department hires different personnel, they are
sent to various departments based on their skill sets and the organizational requirements.
The human resource department has three employees who work together to ensure that all
organization activities are running smoothly. The head of the department is Ruth Khan who
works together with Janet Miller and Jackson Stewart. Ruth Khan oversees all activities carried
out by Ruth Khan and makes the final decision on the employees who should be fired. She does
this by comparing the performance of employees against the set performance levels.
Janet Miller, the human resources assistant, also perfoms performance appraisal activities
to determine if any employees need further training in their field to facilitate their activities. In

STRATEGIC BUSINESS PLANNING FOR WANNABURGER 3
case a given employee is taking too long to serve a customer, Janet Miller organizes training
sessions to improve their customer services. Additionally, if an employee is seen to produce low
quality food, she organizes training sessions to help the employee gain the skills to deliver the
standard food quality. After the training sessions, the employees are required to adhere to the
company’s standards and thus improve their performance levels. If the employees are seen to
keep providing sub-standard goods and services, that is when Ruth Khan decides to either hire
them or give them a warning.
Moreover, Janet Miller names the most productive employees who are rewarded by the
company using different monetary or non-monetary gifts. This aids in motivating the rest of the
employees to produce high-quality results. These actions of the human resource department are
in line with the Scientific management theory by F.W Taylor where he asserts that man is highly
motivated by money and other gifts, and will, therefore, work hard to increase his or her
performance in a bid to gain more rewards (Itika, 2011).
The company also carries out actions that are in line with the Human relation theory by
Elton Mayo. According to the theory, it is crucial for the management to consult with its workers
and take an interest in the work they do (Itika, 2011). This is crucial because it makes the
employees feel that their opinions are valued by the company which increases their levels of
motivation when carrying out their roles in the company. By this theory, Jackson Stewart, who is
the recruiter, encourages the employees to voice their opinions and concerns regarding the
organization’s operations in a bid to improve efficiency and effectiveness.
Jackson Stewart also ensures that the working environment for the employees is safe and
conducive to work in. Additionally, he ensures that employees depict the company’s values in
their internal and external interactions. The human resource department also provides an
case a given employee is taking too long to serve a customer, Janet Miller organizes training
sessions to improve their customer services. Additionally, if an employee is seen to produce low
quality food, she organizes training sessions to help the employee gain the skills to deliver the
standard food quality. After the training sessions, the employees are required to adhere to the
company’s standards and thus improve their performance levels. If the employees are seen to
keep providing sub-standard goods and services, that is when Ruth Khan decides to either hire
them or give them a warning.
Moreover, Janet Miller names the most productive employees who are rewarded by the
company using different monetary or non-monetary gifts. This aids in motivating the rest of the
employees to produce high-quality results. These actions of the human resource department are
in line with the Scientific management theory by F.W Taylor where he asserts that man is highly
motivated by money and other gifts, and will, therefore, work hard to increase his or her
performance in a bid to gain more rewards (Itika, 2011).
The company also carries out actions that are in line with the Human relation theory by
Elton Mayo. According to the theory, it is crucial for the management to consult with its workers
and take an interest in the work they do (Itika, 2011). This is crucial because it makes the
employees feel that their opinions are valued by the company which increases their levels of
motivation when carrying out their roles in the company. By this theory, Jackson Stewart, who is
the recruiter, encourages the employees to voice their opinions and concerns regarding the
organization’s operations in a bid to improve efficiency and effectiveness.
Jackson Stewart also ensures that the working environment for the employees is safe and
conducive to work in. Additionally, he ensures that employees depict the company’s values in
their internal and external interactions. The human resource department also provides an
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 4
opportunity for the existing employees to develop their skills to ensure that the company can
carry out internal promotions without necessarily hiring new people for specific roles.
The different infrastructure materials used by the company include the use of HR
software systems that automate time tracking and payroll runs. The company also uses different
software through which employees can provide feedback on different company operations,
provide their ideas, or lodge their complaints to the company’s management. The structure of the
human resource management team is shown in figure 1 below.
Figure 1
Elements Relevant to the Management to Increase the Effectiveness and Efficiency of the
Organization and its Processes
Effectiveness refers to the outcomes of actions of managers and employees in an
organization. Effective employees provide high-quality results in all their efforts (O’riordan,
opportunity for the existing employees to develop their skills to ensure that the company can
carry out internal promotions without necessarily hiring new people for specific roles.
The different infrastructure materials used by the company include the use of HR
software systems that automate time tracking and payroll runs. The company also uses different
software through which employees can provide feedback on different company operations,
provide their ideas, or lodge their complaints to the company’s management. The structure of the
human resource management team is shown in figure 1 below.
Figure 1
Elements Relevant to the Management to Increase the Effectiveness and Efficiency of the
Organization and its Processes
Effectiveness refers to the outcomes of actions of managers and employees in an
organization. Effective employees provide high-quality results in all their efforts (O’riordan,
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 5
2017). Therefore, an effective workforce in Wannaburger will ensure that the food products
made are of a high quality which leads to increased customer satisfaction, and this leads to the
improvement of the company’s brand. It is hence crucial for Wannaburger to ensure that its
employees are effective in their operations because this will determine the revenues made by the
company as well as improve the company’s reputation. As an expansion and growth strategy,
Wannaburger will provide healthy and nutritious foods in a bid to attract customers who are
living a healthy lifestyle. Additionally, the company targets to sell smoothies that are high in
nutrition value to its different customers. The company will, therefore, be effective in the
production and provision of these products in a bid to retain its customers and attract new ones.
Effectiveness is therefore crucial as it will enable the company to stand out from its competition.
Conversely, efficiency refers to the time that a company takes to carry out its operations
(Truss, 2009). Wannaburger needs to be efficient in its activities to reduce the time taken in
different activities such as food production and service since this will also aid in saving the
firm’s costs. Efficiency also involves the use of the least resources to produce different products.
Efficiency will enable the company to serve more customers within a short period as well as save
on its expenses by using minimal resources in its operations. In the long run, this will aid in
increasing the number of customers served in the restaurants and minimizing the costs incurred
in the process.
Hence, the human resource department should carry out training and development
exercises to ensure that its workforce is both efficient and effective in the provision of different
food products and services to its customers (Simms, 2017). This will aid in saving time and
resources for the company which will also lead to increased revenue and thus profits (Jackson,
Schular & Werner, 2008). In cases where employees are identified as being ineffective, the
2017). Therefore, an effective workforce in Wannaburger will ensure that the food products
made are of a high quality which leads to increased customer satisfaction, and this leads to the
improvement of the company’s brand. It is hence crucial for Wannaburger to ensure that its
employees are effective in their operations because this will determine the revenues made by the
company as well as improve the company’s reputation. As an expansion and growth strategy,
Wannaburger will provide healthy and nutritious foods in a bid to attract customers who are
living a healthy lifestyle. Additionally, the company targets to sell smoothies that are high in
nutrition value to its different customers. The company will, therefore, be effective in the
production and provision of these products in a bid to retain its customers and attract new ones.
Effectiveness is therefore crucial as it will enable the company to stand out from its competition.
Conversely, efficiency refers to the time that a company takes to carry out its operations
(Truss, 2009). Wannaburger needs to be efficient in its activities to reduce the time taken in
different activities such as food production and service since this will also aid in saving the
firm’s costs. Efficiency also involves the use of the least resources to produce different products.
Efficiency will enable the company to serve more customers within a short period as well as save
on its expenses by using minimal resources in its operations. In the long run, this will aid in
increasing the number of customers served in the restaurants and minimizing the costs incurred
in the process.
Hence, the human resource department should carry out training and development
exercises to ensure that its workforce is both efficient and effective in the provision of different
food products and services to its customers (Simms, 2017). This will aid in saving time and
resources for the company which will also lead to increased revenue and thus profits (Jackson,
Schular & Werner, 2008). In cases where employees are identified as being ineffective, the

STRATEGIC BUSINESS PLANNING FOR WANNABURGER 6
human resource personnel should provide constructive criticisms to them which will highlight
the areas they need to improve in (Simms, 2017). Additionally, the human resource department
needs to carry out performance reviews regularly to ensure that employees maintain the
company’s effectiveness standards (Farndale, 2005). To have an effective workforce, the human
resource personnel should hire highly skilled and experienced employees who have the
motivation to add value to the firm (Sheehan, 2012).
On the other hand, it is vital for Wannaburgers to provide the necessary tools and
resources that will enable employees to be efficient in performing their different tasks. To ensure
that they facilitate efficient operations, the human resource department should communicate with
employees to determine ways in which they can change the workplace to provide an environment
that supports efficient operations. The company should also provide all the tools and
technologies needed to promote efficiency (Jackson, Schular & Werner, 2008).
Human Resources Requirements
The human resource department at Wannaburger needs to have more personnel in the
department as the company expands to keep up with the higher number of employees and
recruits who will require training and development. The recruits will also need a constant
appraisal to ensure that their work is up to standard. The company will also need highly
innovative technologies to make their work more efficient.
How Critical Tasks Will Be Assigned and Monitored.
According to (García-Lillo, Úbeda-García & Marco-Lajara, 2016), it is not only crucial
to hire the best employees available, but it is also critical to ensure that the hired personnel work
in their area of strength to produce high-quality outputs. Hiring the right staff members and
stationing them in their areas of strengths will also enable the company to have a highly
human resource personnel should provide constructive criticisms to them which will highlight
the areas they need to improve in (Simms, 2017). Additionally, the human resource department
needs to carry out performance reviews regularly to ensure that employees maintain the
company’s effectiveness standards (Farndale, 2005). To have an effective workforce, the human
resource personnel should hire highly skilled and experienced employees who have the
motivation to add value to the firm (Sheehan, 2012).
On the other hand, it is vital for Wannaburgers to provide the necessary tools and
resources that will enable employees to be efficient in performing their different tasks. To ensure
that they facilitate efficient operations, the human resource department should communicate with
employees to determine ways in which they can change the workplace to provide an environment
that supports efficient operations. The company should also provide all the tools and
technologies needed to promote efficiency (Jackson, Schular & Werner, 2008).
Human Resources Requirements
The human resource department at Wannaburger needs to have more personnel in the
department as the company expands to keep up with the higher number of employees and
recruits who will require training and development. The recruits will also need a constant
appraisal to ensure that their work is up to standard. The company will also need highly
innovative technologies to make their work more efficient.
How Critical Tasks Will Be Assigned and Monitored.
According to (García-Lillo, Úbeda-García & Marco-Lajara, 2016), it is not only crucial
to hire the best employees available, but it is also critical to ensure that the hired personnel work
in their area of strength to produce high-quality outputs. Hiring the right staff members and
stationing them in their areas of strengths will also enable the company to have a highly
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 7
motivated staff. The roles and responsibilities of all company employees need to be defined very
clearly in any organization to ensure that operations flow smoothly and to increase accountability
of the employees. Therefore, Wannaburger will hire employees who are well skilled in fast food
preparation, customer service, and inventory management. These employees will then be
assigned roles in the areas where they will be able to optimize the company’s overall operations.
The employees will also have different degrees of responsibility and authority with some
overseeing the activities of other employees.
The employees who will work in the preparation of burgers and other food products will
be the people who are well trained in catering. Those who will interact with the customers need
to be emotionally intelligent and outgoing. This will ensure that everyone produces high-quality
results because they have the skills and motivation to perform their tasks.
Gaps in the Team Regarding Skills and Numbers
Wannaburger can expand either internally or externally. However, for the company to
develop, it requires financial resources. The company, therefore, needs to raise capital to expand.
Internal expansion refers to the type of growth whereby a company grows by opening more
businesses in different locations (Shyamala, 2018). This could either be in the country or
internationally. If Wannaburger expands externally, it is going to either merge with other
companies in the same field or acquire other fast food companies. In this case, the company will
also need resources for the merger and acquisition activities. Therefore, one significant gap that
the company needs to fill is to raise capital. Additionally, the company needs to hire more
employees in the new businesses. The employees need to be highly qualified, and they should be
able to work in different departments within the company. The employees also need to be
conversant with various technological advances that the company may use in a bid to increase
motivated staff. The roles and responsibilities of all company employees need to be defined very
clearly in any organization to ensure that operations flow smoothly and to increase accountability
of the employees. Therefore, Wannaburger will hire employees who are well skilled in fast food
preparation, customer service, and inventory management. These employees will then be
assigned roles in the areas where they will be able to optimize the company’s overall operations.
The employees will also have different degrees of responsibility and authority with some
overseeing the activities of other employees.
The employees who will work in the preparation of burgers and other food products will
be the people who are well trained in catering. Those who will interact with the customers need
to be emotionally intelligent and outgoing. This will ensure that everyone produces high-quality
results because they have the skills and motivation to perform their tasks.
Gaps in the Team Regarding Skills and Numbers
Wannaburger can expand either internally or externally. However, for the company to
develop, it requires financial resources. The company, therefore, needs to raise capital to expand.
Internal expansion refers to the type of growth whereby a company grows by opening more
businesses in different locations (Shyamala, 2018). This could either be in the country or
internationally. If Wannaburger expands externally, it is going to either merge with other
companies in the same field or acquire other fast food companies. In this case, the company will
also need resources for the merger and acquisition activities. Therefore, one significant gap that
the company needs to fill is to raise capital. Additionally, the company needs to hire more
employees in the new businesses. The employees need to be highly qualified, and they should be
able to work in different departments within the company. The employees also need to be
conversant with various technological advances that the company may use in a bid to increase
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 8
efficiency (Jackson & Morgan, 2011). Therefore, the company needs to make use of new
technological tools and train its employees on how to use the different tools in its operations.
Task 5
Evaluating Management Efficiency and Effectiveness
Organizational structures that are efficient and effective enable business operations and
growth to become more manageable and save time and resources (Clarke & Scurry, 2017).
Efficient and effective structures ensure that the company has a culture that encourages
employees to have high morale and it also makes sure that there is cohesiveness in the firm
(Bartuševičienė & Šakalytė, 2013). Additionally, it ensures that the company can produce a
marketing message that is uniform in all its marketing platforms (Baik, Chae, Choi & Farber,
2012). It also ensures that an organization has consistent communication throughout the
company (Ask, Magnusson & Frisk, 2012). An efficient and effective organizational structure,
therefore, has a variety of elements that Wannaburger should adhere to make sure that all
company operations are efficient. If Wannaburger is both effective and efficient in its operations,
it will produce high-quality work, save time and resources, as well as increase revenue and
profits.
First, the company needs to ensure that the employees have high levels of morale
(Marieta & Pompiliu, 2010). High morale is crucial in any organization since it will aid to
improve the productivity of the company (Sonza & Kloeckner, 2013). Additionally, when
employees are motivated, they offer new ideas to the management that can help improve the
company’s productivity (Lin, Ma & Su, 2010). Wannaburger, therefore, needs to reward
employees who perform beyond certain levels by creating incentives that will motivate them to
produce high-quality work. It is also crucial for the company to compare the payments it
efficiency (Jackson & Morgan, 2011). Therefore, the company needs to make use of new
technological tools and train its employees on how to use the different tools in its operations.
Task 5
Evaluating Management Efficiency and Effectiveness
Organizational structures that are efficient and effective enable business operations and
growth to become more manageable and save time and resources (Clarke & Scurry, 2017).
Efficient and effective structures ensure that the company has a culture that encourages
employees to have high morale and it also makes sure that there is cohesiveness in the firm
(Bartuševičienė & Šakalytė, 2013). Additionally, it ensures that the company can produce a
marketing message that is uniform in all its marketing platforms (Baik, Chae, Choi & Farber,
2012). It also ensures that an organization has consistent communication throughout the
company (Ask, Magnusson & Frisk, 2012). An efficient and effective organizational structure,
therefore, has a variety of elements that Wannaburger should adhere to make sure that all
company operations are efficient. If Wannaburger is both effective and efficient in its operations,
it will produce high-quality work, save time and resources, as well as increase revenue and
profits.
First, the company needs to ensure that the employees have high levels of morale
(Marieta & Pompiliu, 2010). High morale is crucial in any organization since it will aid to
improve the productivity of the company (Sonza & Kloeckner, 2013). Additionally, when
employees are motivated, they offer new ideas to the management that can help improve the
company’s productivity (Lin, Ma & Su, 2010). Wannaburger, therefore, needs to reward
employees who perform beyond certain levels by creating incentives that will motivate them to
produce high-quality work. It is also crucial for the company to compare the payments it

STRATEGIC BUSINESS PLANNING FOR WANNABURGER 9
provides to its employees with those of other organizations to ensure that it remains competitive
and does not lose its employees to the competitors (Mouzas, n.d.). In case issues arise in the
organization, the company should also encourage the employees to voice their concerns and
provide any feedback they feel is necessary to the organization (Roghaniana, Raslia & Gheysari,
2012). Wannaburger also needs to hold regular meetings such as on a monthly basis to talk about
the company operations and to identify any areas that require improvement or change.
Another way in which Wannaburger can increase the company’s efficiency is by
encouraging clear and constant communication across the entire company. To make sure that all
company operations go smoothly, all the different departments should be able to communicate
with each other easily (Wong, Soh, Chong & Karia, 2015). Incidentally, the supply and logistics
department should be able to communicate with the food production department to find out
which ingredients are required. Additionally, the supply and logistics department should be able
to communicate with the human resource department in case they need an extra employee. To
ensure there is effective communication in the company, Wannaburger, therefore, needs to
purchase technological devices that will make connection fast, easy, and reliable.
Finally, Wannaburger needs to explicitly name all its decision makers to make sure that
all employees are undoubtedly aware of them. This will ensure that decisions are made faster by
being brought to the attention of the right decision makers. When the company expands, it will
have managers at different levels of operation. To minimize the time taken to make decisions,
employees need to be aware of how to move issues to higher levels of management, where
necessary.
It is also crucial for Wannaburger to measure its effectiveness levels. The importance of
measuring organizational effectiveness is that it highlights any areas that the company needs to
provides to its employees with those of other organizations to ensure that it remains competitive
and does not lose its employees to the competitors (Mouzas, n.d.). In case issues arise in the
organization, the company should also encourage the employees to voice their concerns and
provide any feedback they feel is necessary to the organization (Roghaniana, Raslia & Gheysari,
2012). Wannaburger also needs to hold regular meetings such as on a monthly basis to talk about
the company operations and to identify any areas that require improvement or change.
Another way in which Wannaburger can increase the company’s efficiency is by
encouraging clear and constant communication across the entire company. To make sure that all
company operations go smoothly, all the different departments should be able to communicate
with each other easily (Wong, Soh, Chong & Karia, 2015). Incidentally, the supply and logistics
department should be able to communicate with the food production department to find out
which ingredients are required. Additionally, the supply and logistics department should be able
to communicate with the human resource department in case they need an extra employee. To
ensure there is effective communication in the company, Wannaburger, therefore, needs to
purchase technological devices that will make connection fast, easy, and reliable.
Finally, Wannaburger needs to explicitly name all its decision makers to make sure that
all employees are undoubtedly aware of them. This will ensure that decisions are made faster by
being brought to the attention of the right decision makers. When the company expands, it will
have managers at different levels of operation. To minimize the time taken to make decisions,
employees need to be aware of how to move issues to higher levels of management, where
necessary.
It is also crucial for Wannaburger to measure its effectiveness levels. The importance of
measuring organizational effectiveness is that it highlights any areas that the company needs to
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 10
improve on provides employees and investors with an idea of the company’s strengths which
should be. Additionally, it views how well the company is achieving its set goals and how close
it is to its vision (Jiang, Frazier & Prater, 2006). Organizational effectiveness looks across the
entire company at the adherence to company’s core values, its internal structure, long-term
planning, and financial performance which are critical components in any firm (Tzelepis,
Tsekouras, Skuras & Dimara, 2006).
Task 6
Risk Management Plan
According to Kristina and Wijaya (2017), risk management is the process in which
uncertainties are identified, analyzed, and responded to in a bid to maximize the positive
outcomes and reduce the effects of adverse events.
The process of risk assessment involves four significant steps. First, it is vital to identify
the risks, categorize and rate them, find ways to manage the risks, and finally review the chosen
methods to determine if they are efficient (Aloini, Dulmin & Mininno, 2007). Wannaburger can
face different types of risks in the future which may or may not be anticipated. The risks that
businesses face may lead to severe losses and others may even cause a company to go bankrupt.
It is therefore critical for Wannaburger to come up with a risk management plan that will enable
the company to look at the different risks in a systematic manner and form strategies to minimize
or eliminate the risks.
First, the company may face strategic risk, especially during the expansion process. In
case Wannaburger chooses to expand by acquiring already existing businesses in the food
production sector, it has to create a business plan that will be influenced both by the past
business performance as well as the market forces of supply and demand. However, business
improve on provides employees and investors with an idea of the company’s strengths which
should be. Additionally, it views how well the company is achieving its set goals and how close
it is to its vision (Jiang, Frazier & Prater, 2006). Organizational effectiveness looks across the
entire company at the adherence to company’s core values, its internal structure, long-term
planning, and financial performance which are critical components in any firm (Tzelepis,
Tsekouras, Skuras & Dimara, 2006).
Task 6
Risk Management Plan
According to Kristina and Wijaya (2017), risk management is the process in which
uncertainties are identified, analyzed, and responded to in a bid to maximize the positive
outcomes and reduce the effects of adverse events.
The process of risk assessment involves four significant steps. First, it is vital to identify
the risks, categorize and rate them, find ways to manage the risks, and finally review the chosen
methods to determine if they are efficient (Aloini, Dulmin & Mininno, 2007). Wannaburger can
face different types of risks in the future which may or may not be anticipated. The risks that
businesses face may lead to severe losses and others may even cause a company to go bankrupt.
It is therefore critical for Wannaburger to come up with a risk management plan that will enable
the company to look at the different risks in a systematic manner and form strategies to minimize
or eliminate the risks.
First, the company may face strategic risk, especially during the expansion process. In
case Wannaburger chooses to expand by acquiring already existing businesses in the food
production sector, it has to create a business plan that will be influenced both by the past
business performance as well as the market forces of supply and demand. However, business
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STRATEGIC BUSINESS PLANNING FOR WANNABURGER 11
operations are ever-changing activities, and even though the company may have a business plan
in place, it may become outdated quickly in the changing business environment (Odeyinka,
Lowe & Kaka, 2012). One company that faced this risk is Kodak which dominated the market of
film photography. In 1975, the company’s engineers invented the digital camera, but the
company failed to develop the model since it saw it as a threat. Consequently, this caused Kodak
to go bankrupt (Ahmed, Kayis & Amornsawadwatana, 2007). Therefore, if the company had
analyzed the risk appropriately, it would have continued to thrive in the film photography
market. Wannaburger, therefore, needs to find ways to reach its goals and targets even when its
initial strategy becomes ineffective. This risk has a medium rate of occurrence in businesses at
about 35%.
Another risk that may face Wannaburger is the operational risk. This type of risk occurs
in case of unexpected failure in the day to day business operations. The risk may be caused by
different elements such as the company employees, the company operational processes, or a
technical failure (Sanchez, Robert, Bourgault & Pellerin, 2009). Once Wannaburger expands its
operations, it will need to improve its equipment, and these are subject to failure. The company
thus needs to be prepared for such cases by having insurance policies in place. Operational risks
may also be caused by natural disasters which may be unpredictable (Power, 2004). To ensure
that the company gets back to the financial position it was in before the tragedy; it is crucial for it
to have an insurance policy that will prevent bankruptcies or massive losses. This type of risk has
a 50% chance of occurrence (Wu, Kong, Shi, Karimi & Zhang, 2014). This is averaged based on
the area where the business is located.
Third, Wannaburger may face compliance risks. These are risks that are associated with
the failure of a company to comply with all the necessary laws and regulations that apply to that
operations are ever-changing activities, and even though the company may have a business plan
in place, it may become outdated quickly in the changing business environment (Odeyinka,
Lowe & Kaka, 2012). One company that faced this risk is Kodak which dominated the market of
film photography. In 1975, the company’s engineers invented the digital camera, but the
company failed to develop the model since it saw it as a threat. Consequently, this caused Kodak
to go bankrupt (Ahmed, Kayis & Amornsawadwatana, 2007). Therefore, if the company had
analyzed the risk appropriately, it would have continued to thrive in the film photography
market. Wannaburger, therefore, needs to find ways to reach its goals and targets even when its
initial strategy becomes ineffective. This risk has a medium rate of occurrence in businesses at
about 35%.
Another risk that may face Wannaburger is the operational risk. This type of risk occurs
in case of unexpected failure in the day to day business operations. The risk may be caused by
different elements such as the company employees, the company operational processes, or a
technical failure (Sanchez, Robert, Bourgault & Pellerin, 2009). Once Wannaburger expands its
operations, it will need to improve its equipment, and these are subject to failure. The company
thus needs to be prepared for such cases by having insurance policies in place. Operational risks
may also be caused by natural disasters which may be unpredictable (Power, 2004). To ensure
that the company gets back to the financial position it was in before the tragedy; it is crucial for it
to have an insurance policy that will prevent bankruptcies or massive losses. This type of risk has
a 50% chance of occurrence (Wu, Kong, Shi, Karimi & Zhang, 2014). This is averaged based on
the area where the business is located.
Third, Wannaburger may face compliance risks. These are risks that are associated with
the failure of a company to comply with all the necessary laws and regulations that apply to that

STRATEGIC BUSINESS PLANNING FOR WANNABURGER 12
specific business segment (Wu, Kong, Shi, Karimi & Zhang, 2014). As Wannaburger expands, it
may face additional regulations which it may need to comply with. To be able to minimize the
likelihood of this risk occurring, Wannaburger should ensure that its employees are well trained
in the different laws and regulations that relate to the food production sector. The various
elements that the company may need to look at in new markets include labeling rules, food
safety rules, among others. If the company operates in a foreign market or nation, the risk has a
chance of 70% of occurrence (Wu, Kong, Shi, Karimi & Zhang, 2014).
Fourth, Wannaburger may be affected by the market environment as well as different
economic trends. Incidentally, it may face stiff price competition from other food providers,
technological changes, and changes in regulations in regards to accounting, taxation, and laws. It
hence needs to remain informed and highly competitive to stand out from its competitors. The
chance of occurrence of this risk is 80% because market forces are very prevalent.
Fifth, with the company’s expansion, the firm faces project management risks. If the
company carries out a merger or acquisition transaction, it will need to carry out renovation
activities to ensure that the new businesses match the company’s design and layout. This could
lead to cost overruns (Raj Sinha, Whitman & Malzahn, 2004). The company hence needs to
identify any problems that may arise during the construction activities and ensure that the
resources allocated are well used. In an expanding company, the probability of this risk occurring
is 70%.
Wannaburger could also face risks that are associated with investment decisions made
during the expansion process. The company may need to introduce new products and enter new
markets to expand its business and strengthen its competitive levels. In this case, the firm needs
to review all its investment decisions, carry out research and development activities, and
specific business segment (Wu, Kong, Shi, Karimi & Zhang, 2014). As Wannaburger expands, it
may face additional regulations which it may need to comply with. To be able to minimize the
likelihood of this risk occurring, Wannaburger should ensure that its employees are well trained
in the different laws and regulations that relate to the food production sector. The various
elements that the company may need to look at in new markets include labeling rules, food
safety rules, among others. If the company operates in a foreign market or nation, the risk has a
chance of 70% of occurrence (Wu, Kong, Shi, Karimi & Zhang, 2014).
Fourth, Wannaburger may be affected by the market environment as well as different
economic trends. Incidentally, it may face stiff price competition from other food providers,
technological changes, and changes in regulations in regards to accounting, taxation, and laws. It
hence needs to remain informed and highly competitive to stand out from its competitors. The
chance of occurrence of this risk is 80% because market forces are very prevalent.
Fifth, with the company’s expansion, the firm faces project management risks. If the
company carries out a merger or acquisition transaction, it will need to carry out renovation
activities to ensure that the new businesses match the company’s design and layout. This could
lead to cost overruns (Raj Sinha, Whitman & Malzahn, 2004). The company hence needs to
identify any problems that may arise during the construction activities and ensure that the
resources allocated are well used. In an expanding company, the probability of this risk occurring
is 70%.
Wannaburger could also face risks that are associated with investment decisions made
during the expansion process. The company may need to introduce new products and enter new
markets to expand its business and strengthen its competitive levels. In this case, the firm needs
to review all its investment decisions, carry out research and development activities, and
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