Assessment Submission details:

Please include following details on the top of your assessment:

Your Name

Your Student Id

Your Trainer’s name : Nihal Silva

Assessment Due Date

Actual Submission Date

Please Note: Any changes in the assessment due date must be approved by your trainer.

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Do not forget to attach the Cover Sheet at the front of the assessment.

Make sure you have signed the Cover sheet to declare this is your own work.

You can e-mail this assessment to your trainer’s e-mail address with following details: In ‘subject’ mention your ‘student Id – Your name’.

Achieving Competence:

To be deemed competent in this assessment you must:

Correctly address all the assessment requirements as described in this task

Correctly address all the submission instructions

Successfully complete the Assessment Questions

Submit assessment on or before the due date with an assessment cover sheet

Performance objective:

In this assessment task, you will demonstrate the skills and knowledge required to develop operational plans in consultation with key stakeholders.

Assessment description:

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

Assessment Questions:

Read the BBQfun scenario information provided in Appendix 1 and the BBQfun simulated business documentation provided by your assessor.

Write a brief summary of the BBQfun operational environment that includes:

an outline of the legislative and regulatory context that is relevant to BBQfun’s operational plan (available on pages 14–17)

an outline of the BBQfun policies and procedures that directly relate to the operational plan

an explanation of the role of an operational plan in achieving the successful implementation of the e-commerce strategy

a discussion of your intention to either develop a new operational plan for BBQfun, or to amend the existing operational plan; support your discussion with reference to different methods and models for developing operational plans – such as methods for setting goals, outlining actions, identifying risk and monitoring performance

an explanation of your budgeting process as part of your operational plan.

Research resource requirements for implementation of e-commerce strategy.

Arrange with your assessor to participate in two resourcing consultation role-plays.

Participate in consultation role-plays with relevant personnel to determine resourcing needs. You will role-play with the:

Sales and Marketing Manager – prepare to discuss human resourcing requirements

Technology consultant – prepare to discuss physical resourcing requirements related to development of e-commerce website.

Note: During consultation, ask questions and encourage the personnel to provide information.

Develop an action plan for the implementation of the e-commerce strategy. In your plan include:

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)

human resourcing (all major steps, e.g. recruiting, training, communication)

timelines and milestones for implementing the e-commerce strategy

consultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders)

an analysis of the resource requirements to ensure that the action plan meets the requirements for implementation.

An example action plan template is provided in Appendix 2.

Ensure plans adhere to organisational requirements set out in the scenario and in relevant policies and procedures.

Develop performance indicators for operational and financial targets and amend or develop existing operational plans to include KPIs and financial targets related to e-commerce strategy. Develop a balanced scorecard for an e-commerce customer service representative including three KPIs and associated targets.

Note: The current budget and operational plan for BBQfun is located in Appendix 1. A balanced scorecard template is located in Appendix 3.

Identify at least three risks to the implementation of the operational plan and develop a contingency plan for each risk (you may use the contingency plan template provided in Appendix 4). Risks must include:

one risk due to employee underperformance

one risk related to management of intellectual property (IP)

one risk due to breach of health and safety compliance responsibilities.

Develop a proposal for resourcing to be presented for approval to the Operations General Manager. Include in your proposal:

description of proposed implementation of resourcing

breakdown of costs

benefits to organisation

a list of different approaches to developing key performance indicators

risks to organisation by not implementing

outline of identified risks and contingency planning

description of sources of information used to develop proposal (use internet research on technical aspects of e-commerce and importance to retailers; use consultation, use company financial projections)

legal responsibilities and WHS considerations.

In a third role-play, present proposal for approval by the Operations General Manager.

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:

participate in three role-plays:

consult with the Sales and Marketing Manager

consult with the technology consultant

present the resourcing proposal for approval from the Operations General Manager

submit a planning portfolio, including:

a summary of the operational environment of BBQfun

action plan

performance indicators for operational and financial targets (in the new/amended operational plan)

balanced scorecard for e-commerce customer service representative

proposal for resourcing.

Your assessor will be looking for:

reading and writing skills to use workplace information to write an operational plan that meets organisational requirements

oral communication skills to present information in a clear and professional manner, listen and comprehend information and confirm understanding through questioning and active listening

planning and organisational skills to take responsibility for developing and implementing a plan to achieve operational goals including resource needs, strategy development, sequencing activities, identification of risks and impact on operational performance and generating contingency plans

interaction skills to communicate and empathise with stakeholders during consultation processes and collaborate to achieve business outcomes

numeracy skills to work with an existing budget to allocate and manage financial resources

knowledge of models and methods for operational plans

knowledge of the relationship between an operational plan and organisational objectives

knowledge of budgeting processes

knowledge of legislation and regulations relevant to the operational plan of the organisation

knowledge of intellectual property rights and responsibilities relevant to the operational plan

knowledge of using KPIs to develop business objectives.

Appendix 1: Scenario – e-Commerce strategy

Background to scenario

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

You have been hired as an external consultant to manage operational planning activities for BBQfun’s e-commerce strategy.

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

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

All resourcing must be acquired and operations undertaken in accordance with relevant internal and external standards – legislation and codes of practice; intellectual property (IP) rights and responsibilities; and organisational policies and procedures.

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

It is now 30 June 2013 and e-commerce operations are expected to be underway in one year and three months, by 1 October 2014.

Scenario task

As the external consultant, you will need to determine physical and human resourcing requirements. Review organisational documentation and undertake preliminary research on e-commerce. Consult with the following personnel to determine resourcing needs:

Sales and Marketing Manager

technology consultant.

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

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

Resourcing and budget: e-Commerce strategy

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

eight online sales and customer service people will be needed to manage increased online customers

since stores are overstaffed, four of the required customer service staff could be sourced from existing employees at the two stores

no current staff have any online customer service skills

management would like to develop people through re-training rather than hire new staff to handle online sales

six delivery trucks needed to enable distribution

e-commerce website will take 50 days to develop

three forklifts are needed

four additional warehouse workers are needed

six additional drivers are needed

office space will need to be reconfigured.

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

Costs: e-Commerce strategy (initial investment)



Plant and equipment

Delivery trucks $50,000 x 6 = $300,000

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

Promotional costs


Website developers


Staff training

Online customer service training $3,000 per staff member = $24,000

Recruitment costs


Management change leadership training for store managers and team leaders

$3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000

Warehouse and office reconfiguration




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)



Additional staff:

(At $40,000 year average annual salary)

4 online staff

4 x $40,000 ($160,000) per year for 3 years = $480,000

4 warehouse staff

4 x $40,000 ($160,000) per year for 3 years = $480,000

6 delivery drivers

6 x $40,000 = $240,000 per year for 3 years = $720,000



The following expenses should be incurred in the 2014 financial year and be included in associated financial targets for spending:

Additional staff


Additional marketing


Additional training




Benefits to business

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

Profitability index over three years

Profitability index (PI) =

Present value (PV) of future cash flows

Present value (PV) of initial investment

PI>1 indicates project should be undertaken

FY 2014

FY 2015

FY 2016

Cash flow from operations (minus ongoing operational costs associated with e-commerce such as additional staffing)




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


Profitability index


The expected additional profit for 2014 would be $200,000. This figure should be added to targets.

Risks to implementation

After consulting with stakeholders at BBQfun, you determine:

medium risk of poor online sales

high risk of customer service quality problems for online customers leading to a breach of consumer law

high risk of staff misunderstanding changes and considering online sales as threat to jobs

medium risk of not being able to recruit fully trained online staff

low risk of loss of IP relating to confidential information contained within the e-commerce strategy when employees leave the organisation

medium risk of loss of IP ownership if a relationship with the website developer contract ceases

low level risk of not complying with WHS legislation through lack of risk assessment conducted on potential musculoskeletal disorders resulting from poor customer service workstation design

medium risk of wastage due to overstocking product in anticipation of increased online sales.

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

Budget summary

BBQfun 2013–2014 Approved budget by activities to be undertaken




Barbecues and related equipment.

Investment income


Real estate investment income and rental of office space.

Cost of goods sold (COGS)


Cost of provision of goods, purchase of stock, distribution.

Gross profit


Gross profit.


Wages, salaries and on costs


Wages, salaries, superannuation, work cover insurance, payroll tax.

Consultancy fees


Project management: WHS management system; change management.

Communication expenses


Telephone, ISP costs, IT support.



Cost of staff travel and associated costs for sales, etc.

Premises expenses


Rent, electricity, maintenance, cleaning.



Liability insurance

Depreciation and amortisation


Computers and capital equipment that is depreciated.

Office supplies


Printing and stationery, postage, amenities.



Sales training: leadership, WHS, ethical/legal training.

Total expenses


Net profit


Net income before tax.


General operating hours

BBQfun operates Monday to Friday from 9 am to 5 pm. BBQfun will be operational year‑round except legislated holidays.

Human resources

Pat Mifsud, CEO

Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.

Riz Mehra, Chief Financial Officer

Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.

Kim Chen, Operations General Manager

Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects that affect operations of the organisation as a whole. Kim works with the HR Manager to coordinate systems and projects to achieve company-wide synergy.

Les Goodale, Human Resources (HR) Manager

Les is responsible for the productive capacity and welfare of people at BBQfun. With the Operations General Manager, Les works to coordinate projects and management systems, such as performance management, recruitment and induction.

Sam Lee, Marketing Manager

Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team.

Pat Sweeney, Manager: Brisbane (Kenmore)

Pat is responsible for the management of all aspects of the Brisbane store.

Alex Mitchell, Manager: Gold Coast

Alex is responsible for the management of all aspects of the Gold Coast store.

A summary of human resources at each of the two locations appears below:

Brisbane: Head office


30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system

senior management team (five) + one store manager

four sales team leaders

one delivery truck driver

one warehouse worker.

Gold Coast operation


30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system

one store manager

three sales team leaders

one delivery truck driver

one warehouse worker.

Office requirements

The office space is leased and will accommodate the necessary office equipment, such as computers, fax machine, photocopier and other engineering equipment.

Brisbane: Head office

Location: Kenmore.

Size: 15,000 square metres (50% warehouse, 50% display area). Warehouse area used at 45% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.

Large mezzanine office space (used to be occupied by online retailer, currently subdivided and occupied by the management team).

Loading bay with large capacity (most of area incorporated into customer display area, could be easily and cheaply reconfigured to accommodate extra distribution).

Gold Coast operation

Location: Robina.

Size: 12,000 square metres (50% warehouse, 50% display area). Warehouse area used at 50% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.

Large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company).

Lots of spare office space.

Loading bay with large capacity.

Operating capital requirements

BBQfun requires approximately five million dollars in working capital to sustain and ensure the business meets all opening and ongoing financial obligations.

The company may experience financial pressures during slow sales periods.

A long-term strategy to maintain a positive cash flow during these periods will be to diversify the company’s product range and develop business opportunities such as e‑commerce to boost sales and sales capability overall.

Operational expenses

Wages, salaries and on-costs


Consultancy fees


Communication expenses




Premises expenses




Depreciation and amortisation


Office supplies




Total Expenses


Insurance requirements

BBQfun will have to incur costs for business liability insurance. The estimated cost for this requirement is $100,000 per year.

Operational workflow

Conduct market research to determine needs.

Negotiate with suppliers.

Receive and warehouse products.

Provide service and information to warehouse customers.

Receive payment.

Arrange delivery of items (if required).

BBQfun accepts cash, EFTPOS and major credit cards. Credit terms are available for trades.

Operational plan (with strategic objectives, measures and tasks) FY 2013–2014

BBQfun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014


Performance measures



Engaging with customers through marketing, research and personalised service.

Completion of market/marketing research.

Completion of customer surveys.

Completion of reports to identify marketing opportunities.

Conduct quarterly surveys on customer satisfaction.

Evaluation of market and marketing data to determine marketing opportunities.


Building reputation for quality products and quality customer service:

Raise organisational profile by 20%.

Improve client satisfaction performance by 25%.

Percentage of brand recognition in sought-after categories in periodic customer surveys.

Percentage of customers with positive view of organisational responsiveness, innovation, quality, ethics, safety.

Number of customer complaints.

Delivery times.

Number of returned items.

Audit of supplier quality.

Regular contact with suppliers.

Investigate resourcing needs: people, products.

Fulfil resourcing and distribution needs in accordance with policies and procedures.

Maintenance of enterprise resource management (ERP), point of sale (POS) and customer relationship management (CRM) systems.


Supporting people to perform via training and performance management.

Numbers of injuries
(Target = 0).

Numbers of absentees
(Target = <3% of total hours).

Anti-discrimination complaints (Target=0).

Lost Time Injury Frequency Rate (Target=2)

Percentage completion of performance plans and performance management process.

Numbers of coaching sessions completed.

Numbers of operational-related training programs completed.

Research effectiveness of possible incentives for: safe work achievement; healthy lifestyle.

Engage workers with strategic goals of business and support professional development in line with strategic goals. (Targets to be set by individual managers).

Management engagement with employees to achieve greater buy-in of organisational goals.

Include explanation of how activities work with organisational strategic goals in all communications to internal personnel.

Regular coaching.

Training needs analysis and training (leadership, WHS, ethical/legal training).

Strategic goals included in induction program.

Employee incentives for performance in all areas relevant to operational and strategic goals.


Increasing sales revenue.

General ledger accounts; financial statements:

Revenue target = $11 million

Profit target = $1,792,286

Marketing campaigns.

Sales training for floor staff.


Reduce direct and indirect costs of operations.

General ledger accounts; financial statements:


cost of agent services

consultancy fees

wastage and associated expenses.

Expense target = $5,004,714

COGS target = $5,890,000

Renegotiate with suppliers.

Research potential new suppliers.

Research new distribution possibilities, such as e‑commerce/delivery.

Management engagement with employees to achieve greater employee support of organisational goals.

Greater use by managers of budgets to encourage restraint.

Greater focus on budget restraint in management of projects/activities.

Inventory management through ERM to reduce overstocking and risk associated with storage.

Incentives (as part of manager/employee performance management and bonus system).

Appendix 2: Action plan template

Milestone: Action and/or objective
(to achieve strategic aims of physical or human resourcing)


Person responsible

Budget or resources
(where applicable)

Appendix 3: Balanced scorecard template

KRA (key result area)


KPI (key performance indicator)


Appendix 4: Contingency plan template

Contingency Plan

Company name: BBQfun

Name of person developing the plan:

Who was consulted as part of this plan?

Name Position

Risk identified:

Strategies/activities to minimise the risk

By when

By whom

Strategies to implement approved contingencies

By when

By whom

Approved variations to the plan based on contingencies faced

By when

By whom