Assessment 1 – Develop operational plan

Submission details

Student name Student no.
Assessor’s name  
Assessment date/s Time/s

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The candidate will demonstrate skills and knowledge required to develop operational plans in consultation with key stakeholders.

Assessment description

In response to a simulated business scenario, you will research resource requirements and develop an operational plan in consultation with relevant stakeholders. As a part of the development of your plan, you will set performance indicators, plan for contingencies, and obtain approval in accordance with organisational requirements.


  1. Read the BBQfun simulated business information provided in Appendix 1 of this task.
  2. Research resource requirements for implementation of e-commerce strategy.
  3. Consult with relevant personnel to determine resourcing needs:
    1. Human resourcing requirements – Sales and Marketing
    2. Physical resourcing requirements – Technology to development of e-commerce website.
  4. Using appropriate word processing or project management software, develop an action plan for the implementation of the e-commerce strategy. Include:
    1. physical resourcing (all major steps for resourcing, including procurement of different types of resources, but not to the detail of including all procurement steps for each resource type)
    2. human resourcing (all major steps, e.g. recruiting, training, communication)
    3. timelines and milestones for implementing ecommerce strategy
    4. consultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders)
      1. an example action plan template is provided
      2. ensure plans adhere to organisational requirements such as policies and procedures.
    5. Develop key performance indicators (K.P.I.) for operational and financial targets and amend existing operational plans to include KPIs and financial targets related to e-commerce strategy.
    6. Develop balanced scorecard for e-commerce sales and customer service representative including three KPIs and associated targets.

Note: The current budget and operational plan for BBQfun is located in Appendices 2 to 3 of this task.

  1. Identify at least three risks
    1. Include at least one risk due to inefficiency or wastage.
    2. Include at least one risk due to employee underperformance.
  2. Submit a portfolio of your implementation documents as outlined in the specifications below. Keep copies of your work for use in Assessment Tasks 2
    and 3 and for your own records.


You must:

  • submit planning portfolio, including:
    • Proposal for resourcing. (Human resource, Physical resource like technology to development of e-commerce website)
    • action plans
    • performance indicators for operational and financial targets (amended operational plan;
    • balanced scorecard for e-commerce customer service representative)
    • Risks control

Your assessor will be looking for:

  • literacy skills to access and use workplace information and to write a succinct and practical plan.
  • technology skills to use software to produce plans
  • planning and organisational skills.
  • numeracy skills to allocate and manage financial resources.
  • knowledge of models and methods for operational plans.
  • knowledge of budgeting processes.
  • knowledge of alternative approaches to improving resource usage and eliminating resource inefficiencies and waste.


Appendix 1: Scenario – e-Commerce strategy

Background to scenario

The BBQfun Board of Directors and CEO have decided to implement an e-commerce strategy to maintain or increase market share and revenue and satisfy customer needs in line with company strategic directions.

Under the strategy, BBQfun would offer all products in an online store. Stock could be stored at no extra cost at existing stores. Customers would cover delivery costs.

Currently, BBQfun has a website, but this website lacks e-commerce functionality. The website would need to be redeveloped to incorporate this functionality in line with relevant technical specifications. Existing infrastructure, such as office and store configurations, would need to be adapted to the new strategy. Additionally, assets, such as delivery vehicles would need to be acquired. New staff would need to be recruited and existing staff retrained or informed of the e-commerce strategy and associated operational and performance targets.

All resourcing must be acquired and operations undertaken in accordance with relevant external standards, such as legislation and codes of practice, and internal standards, such as organisational policies and procedures.

Preliminary approval has been given to amend existing budget and operational planning to incorporate this strategy.

It is now 30 June 2015 and e-commerce operations are expected to be underway by 1 October 2016.

Scenario task

You will need to determine physical and human resourcing. Review organisational documentation and undertake preliminary research on e-commerce. Consult with relevant personnel to determine resourcing needs:

  • Sales and Marketing Manager
  • Technology consultant.

You will then need to plan physical and human resourcing and establish associated performance measures and targets. You may consider the Management Team of BBQfun, including team leaders in warehouses, to be resources for the implementation. Use description of their roles in operational planning when assigning responsibilities.

Finally, you will need to propose resourcing and associated operational changes to the Operations General Manager, who will, in consultation with the CEO and Board of Directors, provide approval.

Resourcing and budget: e-Commerce strategy

After consulting with the management team at BBQfun, you determine:

  • eight online sales and customer service people will be needed to manage increased online customers
  • since stores are overstaffed, need for four online people could be met from drawing from existing employees at the two stores
  • no current staff have any online customer service skills
  • management would like to develop people through re-training rather than hire new staff to handle online sales
  • six delivery trucks needed to enable distribution
  • e-commerce website will take 50 days to develop
  • three forklifts are needed
  • four additional warehouse workers are needed
  • six additional drivers are needed
  • office space will need to be reconfigured.

The following operational costs are associated with e-commerce business strategy.

Costs: e-Commerce strategy (initial investment)
Resources Costs
Plant and equipment ●      Delivery trucks $50,000 x 6 = $300,000

●      Forklifts $10,000 x 3 = $30,000

Promotional costs $300,000
Website developers Contractors $2,000 x 50 = $100,000
Staff training Online customer service training $3,000 per staff member = $24,000
Recruitment costs 30,000
Management change leadership training for store managers and team leaders $3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $2,000 = $27,000
Warehouse and office reconfiguration $50,000
Total $861,000

In addition, ongoing staff costs will be incurred.

The expected life of the initial investment is expected to be three years.

Costs: e-Commerce strategy (ongoing)
Resources Costs
Additional staff $40,000 year average = (4+4+6 ) x $40,000= $560,000 per year for 3 years =$1,680,000

The following expenses should be incurred in the 2013 financial year and be included in associated financial targets for spending:

Additional staff $400,000
Additional marketing $300,000
Additional training $51,000
Recruitment $30,000

Benefits to business

According to financial projection prepared by the CFO, the business expects the proposed strategy to be profitable over three years.

Profitability index over three years

Profitability index (PI) = Present value (PV) of future cash flows
Present value (PV) of initial investment

PI>1 indicates project should be undertaken

2013 2014 2015
Cash flow from operations (minus ongoing operational costs associated with ecommerce such as additional staffing) $200,000 $500,000 $800,000
Present value of future cash flows (discounted future cash flows with respect to opportunity cost, inflation) $180,000 +$420,000+$600,000 = $1,200,000
Present value of initial investment $861, 000
Profitability index 1.39

The expected additional profit for 2013 would be $200,000. This figure should be added to targets.

Risks to implementation

After consulting with stakeholders at BBQfun, you determine:

  • medium risk of poor online sales
  • high risk of customer service quality problems for online customers
  • high risk of staff misunderstanding changes and considering online sales as threat to jobs
  • medium risk of not being able to recruit fully trained online staff
  • medium risk of wastage due to overstocking product in anticipation of increased online sales.

All additional costs associated with contingency planning will be approved in accordance with BBQfun policies and procedures.

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