Manage Operational plan

Vocational Training Institute

AAMIR FAROOQ

VIT17T448
 Manage Operational plan

1. Research and document resource requirements

Ans: Resource Type :-
Human- VTI group needs chasing human resources for the implementation of their new approach:
o They need eight online sales and customer service staff who can manage their customers
online. They recruit four staff from their existing stores because some stores are abandoned
and four staff members from outside the stores.
o The VTI group would store their inventory in existing stores so that they need four additional
warehouse employees who can manage their products in stores.
o They will deliver their products to customers so they need six competent drivers for delivery.

Physical The VTI Group is required due to physical resources for its new e-commerce strategy:
o The VTI group would offer all products online so that customers pay their shipping costs. They
need six new trucks to distribute their products.
o To develop their business, they require three Forklifts for loading and unloading their
products.
o To increase their business and for maintaining record they need IT Equipment and hardware,
Point-of-sale systems.

Intellectual- At Present, the VTI Group has a website with no e-commerce functionality, so the website
needs to be redesigned to adopt a new strategy. The VTI group requires Website developers to
redevelop their site and Copyright and industrial design registration.
o At the same time they need some other function like patents and trademarks, licenses,
computer systems software, core technology

Financial- Management requires additional funding to implement this strategy, such as

o Management requires a recruiting cost for new online sellers and customer service staff. They
need $ 3,000 for recruitment.
o Currently, VTI teams do not have online customer service skills. Management would like to
train its existing staff rather than recruiting new staff so that they may need additional cost of
staff training.

2. In Consultation with your Marketing and HR Manager, research human resourcing

requirements (You can assume your assessor as respective manager).
Ans:-
How many online sales and customer service staff we need, who can manage our customers online?
How many additional warehouse workers we need to manage our products in the stores?

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How many competent drivers are necessary for delivery?

Which skills and attributes are required in staff members for online business?
Do we have people with the willingness to share experiences for a synergistic effect?
When and how we can provide the training to existing staff members to handle online sales?
How much cost we need for recruitment and for staff training?
Do we have the right partnerships, alliances and outsource partners for the plan?

3. In consultation with your Technology Consultant, research physical resource

requirements (You can assume your assessor as respective manager)
Ans:

Will our existing technology be able to keep pace with the action plan?
How many delivery trucks we need for distribution of products?
How many forklifts we need to get the work done?
How much cost we need to acquire new trucks and new forklifts?
Do we need to re- managed and organized our office space?
Do Company need to redevelop their website for fast processing?
How much time it will take to develop E-commerce website?
Do we have enough capital to acquire physical resources?

4. Develop an action plan for acquiring at least 3 physical resources. Include steps and
strategies
Ans :
Action steps Responsible Deadline Necessary Potential Result
person Resources challenges
Obtain quotations Young Fu, September Obtain Research
from suppliers to operations 8, 2017 quotations for
high value item like General from qualified
new forklifts, trucks Manager supplier service
from
different
suppliers
Get approval from Bill Smith, September CEO Prepare
CEO CEO 10, 2017 approval proposal
for CEO
Purchasing delivery Anna Burry, September Standard Research Successfully
trucks- get senior Chief 12, 2017 purchase for quality
level commitment, Financial order product at

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identify who is Officer requiremen reasonabl

involved, price and t- e price.
terms, require a $450,000 Meet the
purchase order costs is policy
required purpose,
for trucks outcomes
$60,000 and
cost is principles
required intended
for forklifts

Re- develop the Young Fu, September $10,000 Choose

website operations, 7, 2017 cost is best web
General needed for developer
Manager website company
developme
nt
Search
different
web
developers
companies

Select a specific Anna Burry, September Qualified Sufficient Successfully

product(computer Chief 15, 2017 suppliers capital
program) Financial
Be paid for at the officer
time of purchase:
petty cash system

Warehouse and John K, September $50,000 Recruit

office Manager 29, 2017 cost is the
reconfiguration Bill Smith, required technician
CEO Approval or expert
from top people
manageme
nt

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Procurement steps for each resource type:-

Smaller items (stationary or computer programs): be paid for at the time of purchase-petty cash
system
Major systems (machinery or vehicles): be spread out through hiring, agreements, credit terms
and quotas. (Payment of hire-purchase deposits and subsequent phasing of payments)-require a
purchase order
For items that are not purchased often and are of high value, it is likely that managers will need to
obtain quotation from suppliers.

5. Develop an action plan for acquiring at least 4 human resources. Include steps and
strategies to acquire resources in accordance with organizational policy and procedures
(write step by step procedure e.g. recruiting, training, and communication).
Ans:-

Action plan template

Objectives Actions/Activity Target dates Responsible Status

person

External Advertising 07/07/2017 Mike Wilcox , Ongoing

recruitment Internships HR Manager
Search the
employee pool
outside its own
employees to fill
positions

Internal Succession planning 04/07/2017 Mike Wilcox , Ongoing

recruitment Recommendation HR Manager
from key managers
Capabilities
discusses in staff
appraisals
Cross training of
staff in different
areas
Internal advertising
of vacant positions

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Induction A copy of the 01/07/2017 Mike Wilcox , Ongoing

businesss code of HR Manager
conduct
Annual report
Job description
The business plan
Marketing
materials
Organizational
chart
Operational plan
WHS information
Training Assess training 03/07/2017 John K, Ongoing
needs (increase Manager
customer service Alex Kemp,
quality) Manager
Set organization
training objectives
(online sale skills)
Create training
action plan
Implement training
initiative
Evaluate & revise
training

6. Recommend two potential recruits according to your plan.

Ans:-

The recruitment stage of the hiring practice occurs when the company tries to join a group of candidates
through job offers on corporate and external websites, job referrals, help wanted advertisements, campus
recruitment, recruitment of social networks and other recruitment activities.

Recruiters Recruitment Recruitment Role Skills and

types measures description attributes

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Michael External Use social Online sales Problem solver

Chen networking representative: Professional
sites like Maintain sales customer
Linkedin, and service skills
Facebook and profitability Telephone and
Twitter to targets for keyboarding
advertise job assigned skills
openings customers.
Delivering
professional
customer
service skills
and online sale
skills to group
members.
Steven Internal Internal Online sales Familiarity with
Smith advertising of manager: CRM systems
vacant Be responsible Knowledge of
positions for carrying VTIs product
Referrals out the online online
sales of the 5 years of
products and experience in
services online sales
assigned by
the client.

7. Develop a plan for timelines and milestones for implementing e-commerce strategy.
Ans:-

Advertisement
on website 5
Recruitment of
days
new staff 30
days

Providing FINISH
training to
existing staff 30

START 6
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Develop e-
commerce
website

50 DAYS

8. Develop communication and consultation strategy to ensure all affected staff and
stakeholders are informed and engaged. Ensure the strategy is in accordance with
organisational policies and procedures.
Ans:-
8.1 Effective and appropriate communication and consultation play a major role if residents, staff, members
and partners are to feel better informed about:

Our hopes and aspirations for the district;

The services we provide;
The challenges we face;
Our achievements;
The democratic and decision-making process;
What we do if things go wrong.

8.2 How to communicate with stakeholders and staff:-

Communication type Examples

Face to face Communication Feedbacks for others to share
experience and ideas, and also
ask questions
Meetings-evaluate the body
language of our peers, use visual
aids
Print and Written Communication Printed documents at as a
physical reference
Teleconference Videoconference for long
distance meeting
Electronic Method Email and electronic have
become standard delivery
systems for information (e.g.
normal business/commercial
email)

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Electronic media
Message management
Team Meeting Senior Management can explain
key aspect of the operational plan
Deal with question which raised
by staff members

Different type of communication with staff member:-

Team meetings
Inductions
Staff briefings
Staff newsletters
Email
Intranet
Internet

Procedures:-

Develop an area on the intranet for press releases and media requests and their responses so
staffs are aware of news before reading them in newspapers.
Develop "key communicators" within each division to contribute to articles relevant to the staff
newsletter.
Study and develop a "What's New" automatic screen message updated daily
Hold normal staff briefings and team meetings

Different type of communication with staff member:-

Directorate meetings with portfolio holders

Stakeholders briefings
Group leaders meeting
Email
Intranet
Internet

Procedures:-

Examine new and regular communication methods: for example, monthly group leaders meet
decisions.
Giving comments to employees to improve their customer service skills in time and keep away
from overstocking products.

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Conduct a survey to determine how informed stakeholders felt about VTI Group issues. Use
results to improve access and knowledge of stakeholders to client services, roles, plans and
policies.
Open meetings: stakeholders are invited to come to an open meeting or a series of meetings.
Invitations to send a written response, for example, stakeholders are invited to submit written
comments on a proposal or plan.

9. Develop KPIs for operational and financial targets.

Ans:

Operational and Financial Target

Quality of online Number or level of Numbers of
sales and service customer complains complaints less than
5 monthly (Target
=0)
Customer On a scale 0-10 that Currently VTI
satisfaction score stands for the Groups staff
extent from members are not
unsatisfied to familiar with online
satisfy. Keep the business even after
score always > 7 training and they do
(Target 9-10) not understand CRM
systems and
Improve client ordering processes.
satisfaction
performance by 25%

Tasks: maintenance
ERP and CRM
system

Investigate
resourcing needs:
people, products
Warranty claims & The number should Presently,
Number of defective be less than 1/10 of they have
products all the products 10%
information
Tasks: audit of or order
supplier quality
mistake.
However,

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management
have target
to reduce
their
complaints
to 1%.

Speed of service Completion time Speed of service Due to lack

(online) average of skills and
time for completion: knowledge,
20 minutes (Target there are
< 10 minutes) some extra
times taken
to get the
online order.
Due to length
of time, few
customers do
not complete
the order.
Currently
average time
for
completion is
20 minutes
but
management
have targets
to complete
their online
service
within less 10
minutes

Delivery time Taking 5-15 business Due to good

days since the driver team
product order is leader,
generated. delivery
speed is very

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good. Driver
attendance
of routine
training is
100% and
Driver
morale is
high.
Average time
of delivery is
2 days but
management
want to
increase it by
3 days.

E-commerce Currently VTI

implementation Group has a
website, but
without e-
commerce
functionality.
I will take 50
days to
develop. E-
commerce
implementati
on is on track
and is
scheduled
for launch on
1st October.

Online Sales Money made Online sales and

revenue=$250,000
(Target: $300,000)
Profit forecasts Increasing sales Currently,
revenue: Profit the VTI group
target=$1,667,000 has fewer
sales due to
Revenue target=$11

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million poor
customer
Tasks: Marketing service of $
campaigns 250,000.
However,
Sales training for management
floor staff aims to
increase
sales to $
300,000.
Online Revenue Item sold Increase inventory Due to
turnover from 6 to declining
10 (target: 9) sales of
products and
Sell 15,000 items services, the
per month through VTI group
online deals has less
profit, $
Tasks: Inventory 40,000, but
management management
through ERM to is aiming to
reduce overstocking earn $
and risks associated 80,000.
with storage Management
can increase
Training online sales profits by
skills reducing
costs and
increasing
sales.
Budget Customer Cost overruns due The objective
Interaction to the waste of of
order errors and management
overstock due to is to reduce
misuse of the this cost by
system. Staff providing
members work long training to
hours because of staff.
excessive customer
interaction.

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10. Identify and report at least 3 risks associated to the implementation of e-commerce
strategy.
Ans:

Transaction risk- All business dealings and transactions take place through online methods, so that the
VTI group can deal with the problem of attacks. There are various malicious attacks such as viruses,
worms and Trojans that can affect online activity.

Security risk- While security may be the broadest subject for an e-commerce site, the security risk
could have devastating effects for an organization should an incident occur, especially if the site
transmits or stores card holder.

Technology risk- Diverse Technology risk are linked with e-commerce implementation such as-
Intercepting and photocopying or changing credit card information during communication.
Third part catches your credit card information due to breeching in security of online
payment
Internet service provider server crashes
Software content risk that violates a copyright

11. Develop contingency plan for each identified risk.

Ans :

11.1 risks and assessment

11.2 develop mitigation strategy

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11.3 contingency plan

Possible Concerns Action to be undertaken

Increasing sales or production
Poor online sales to influence sales revenue
Giving customers discount

Diversification of outcomes

Misunderstanding by staff considering online

sales as threat to job cause staff turnover Contracting out or outsourcing human
resources and other functions or tasks

Mobilization meetings
Poor customer service quality that leads to Set a higher standard for customer service
damage reputation and make it a top priority until it becomes a
permanent fixture in operations.

Improving FAQ pages and newsletters

12. Develop a proposal to be presented for approval, Apart from above points, it should also
include the following:

Ans:-

1) Breakdown of Cost Breakdown structure

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Physical Resources Plant and Equipment Delivery trucks $75,000*6$450,000

Cost cost Forklifts $20,000*3=$60,000
Warehouse and Office $ 50,000
reconfiguration cost
Human Resource Staff Training Cost online customer service training
Cost $3,000 per
Staff
($3000*8= $24,000)
Recruitment costs $30,000

Additional staff $55,000 year

average=(4+4+6)*$55,000=$770,
000 per year for 3 years = $
2,310,000

Management change 1 Melbourne CBD store

leadership training for manager, 4 Melbourne CBD
store manager and leaders, 1Melbourne suburban
team leaders store manager and 3 Melbourne
suburban team leaders *$3,000
each =$27,000

Intellectual cost Website developers Contractors

$2,000*50=$100,000

Financial cost Promotional costs $500,000

Total $ 3,551,000

2) Benefits to the company: - The application of the e-commerce proposal will satisfy the
needs of customers as there will be an in-depth observation and investigation for customer
service, which will increase overall profitability. In addition, according to an overall budget,
the company does not face any astonishing costs or fees on the road. Another advantage is
to reduce the inventory period so that there is high income. According to financial projection
prepared by CFO, business expects the proposed strategy to be profitable over three years.

Profitability Index (PI) = Present Value (PV) of future cash flow

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Present Value of initial investment

= $ 1,900,000
$ 1,241,000

= $ 1.53

According to the profitability index if figure is greater than 1. It will be profitable for company.
Moreover, company is able to earn these profits within three years. So, overall it is good for business.

3) Risk to the company by not implementing the e-commerce strategy- if

company cannot develop the e-commerce strategy, company can face following risks-

Increase cost of business- The Company needs physical stores to manage its business if they do not
implement e-commerce strategy. This will increase their commercial costs.
Poor online sales- Online businesses can stay open 24 hours a day, 7 days a week, but physical stores
can be open for a limited time. The company can increase its profits through online activities, but
without e-commerce strategy, the company cannot increase its sales and profits.
Lose their customers- At the present time, people prefer online shopping rather than visiting the
shops. It is a very simple and convenient way of shopping. Customers can find a wide range of
products and get huge information about the products. So if the company cannot develop an e-
commerce strategy, it can lose its customers.

4) Importance of e-commerce to company and customers-

Importance to Company:-

Keep Eye on Consumers Buying Habit: The best thing is e-commerce retailers can easily keep a
constant eye on consumers buying habits and interests to tailors their offer suit to consumers
requirements.
Decreasing cost of inventory Management: With e-commerce business, the suppliers can decrease
the cost of managing their inventory of goods that they can automate the inventory management
using web-based management system. Indirectly, they can save their operational costs.
Competence: For effective business transactions, e-commerce is an efficient and competence method.
E-commerce taps into social media. For a smart business, an engaging social media presence can raise
their company profile and encourage traffic and sales.

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It can broaden Your Brand. E-commerce can be used to broaden your range of products for sale,
bringing you more custom and diversifying your sales.
E-commerce influences the purchase decisions of your customers because your website is your
showroom, where customers can research your product and see all the reasons it is right for them.

Importance to customers:-

Offer Product Datasheets: Consumers can also get description and details from an online product
catalogue. For your customers, it is very much important to get information about the product no
matter whether the time of day and day of the week. Through information, your customers and
prospects are making decision to purchase your products or not.
Convenience: For many people in the world, e-Commerce becomes one of the preferred ways of
shopping as they enjoy their online because of its easiness and convenience. They are allowed to buy
products or services from their home at any time of day or night.
E-commerce merchants can enjoy is store timings are now 24*7/ 365 Days as they can run e-commerce
websites all the time. It is beneficial for customers as they can purchase products whenever they want
no matter whether it is early morning or mid-night.
One of the best benefits of ecommerce for customers is they can get huge information that is not
possible in a physical store.
E-commerce is Convenient and easy way of shopping. This convenience combined with a quick
checkout process, order tracking and quick shipping is a winning combination.

13. Effects of e-commerce on financial projections.

Ans: E-commerce strategy provides the following:
Summary with key tables, key indicators and key assumptions. Simply change the assumptions to the
right and immediately see the effect on website traffic, orders, revenue, cash flow, and so on. On the
left and their impact on financial indicators specific to electronic commerce.
Running an ecommerce store can actually save you money: With a web-based management system,
you can automate inventory management and reduce associated costs. In addition, the use of an e-
commerce store does not have the same overhead as a physical store. The additional profit generated
by reaching more customers will offset the initial installation costs.
Increase sale revenue: revenue target =$11 million and profit target= $1,6677,000
Making the financial projection more accurate and simple due to the e-commerce strategy.
Monthly and Yearly financial projections for 5 years
o Monthly Income Statement, Balance Sheet and Cash Flow Statement
o Monthly Free Cash Flow to Firm (FCFF) calculation
o Payback period (FCFF) and required months till EBITDA breakeven

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o Cost per Acquisition (CPA) and Customer Lifetime Value (CLV) for paid advertisement
o Orders generated from different sources such as paid advertisement, organic search or affiliate
marketing
Yearly financial projections (Income Statement, Balance Sheet and Cash Flow Statement)
Forecasted financial ratios such as Debt/EBITDA, current ratio, ROE, ROIC, days sales, says inventory,
days payables, etc.
Amortization schedule for software development costs
Debt schedule which models two layers of financial debt (junior and senior debt)
Fixed asset depreciation schedule
Calculation of required funding amount, Net Present Value (NPV) via the Discounted Free Cash Flow
(DCF) Method and Project IRR
Reader and print-friendly layout including charts and graphs

Task 2

1. Prepare a plan for monitoring performance for e-commerce implementation. You can
use any monitoring template available over the internet or can ask your assessor to
provide you one. You plan must include the following points:
1) Budgetary Performance :-

Comparing actual costs incurred to forecasted estimates

Have sample budget for review where possible
Monitoring historical information for budgeting
Importance of monitoring financial performance
Areas of financial analysis
Using budget reports
Reviewing payments made

VTI GROUP 2017 Budget

INCOME Actual ($) Budget($) Difference($)

Operating Income
Online sales and revenue 250,000 300,000

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(50,000)
Profit 40,000 80,000
(40,000)
-
-
-
$
Total Operating Income $ 380,000
290,000 ($90,000)

Non-Operating Income
Interest Income -
Rental Income -
Gifts Received -
Donations -
Other -
Total Non-Operating Income - - -

Total INCOME $290,000 $380,000

($90,000)

EXPENSES ($)
Operating Expenses
consultancy fees 50,000 50,000
Advertising 5,000 5,000
Depreciation 150,000 150,000
Training 60,000 60,000
recruitment consultant 10,000 10,000
insurance expenses 120,000 120,000
wages and salaries and on coats 2,700,000
2,700,000
Office Supplies 80,000 80,000
recruitment cost 30,000 30,000
premises expenses 1,000,000
1,000,000
redevelopment cost 100,000 100,000
Marketing 8,000,000
8,000,000
promotional cost 500,000 500,000
-
communication expenses 40,000 40,000
-
office supplies 80,000 80,000

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-
Other -
Total Operating Expenses -
$12,925,000 $12,925,000

Non-Recurring Expenses
Furniture, Equipment and Software 510,000 510,000
Gifts Given -
Other -
$
Total Non-Recurring Expenses $ 510,000 -
510,000

Total EXPENSES $13,435,000 - $ 13,435,000

$
Net Income Before Taxes ($13,145,000) ($13,525,000)
380,000
Income Tax Expense -

NET INCOME ($13,145,000) $380,000 ($13,525,000)

2) Financial Performance :-

Cash flow:- A cash flow budget is a summary of expected cash inflows and outflows for a business over
a period of time. The period is generally a future accounting period and is divided into quarters or
months. As a forward planning tool, its main objective is to estimate the amount and timing of future
borrowing requirements and the ability of the company to repay loans. A cash flow budget can be used
for monitoring and control. The budgeted amounts can be compared to what actually happens.

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Monitoring receivables: - Keep an eye on the average collection period in relation to credit conditions
Use an aging schedule to determine the percentage of payments made late.

Current date: Total

Receivable

Invoice Invoice Customer Total Due date Balance Payment Payment

date Number Amount data methods

It is very important to monitor financial performance of business. Following are the different ways to
monitor financial performance:
Maintain cash flow statements, it include tell how much liquid cash is coming into the business.

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Every month, an aged debtors trial balance should be prepared, so that the company can keep track of
the all the customers who owe them money.
Company needs to produce a balance sheet and the profit/loss statement.
Human resources related activities should also be monitored. What is the employee turnover rate?
Company need to maintain accurate inventory record.

3) Productivity Performance :-

Productivity is to achieve maximum output with minimal effort or wasted expense. In order to achieve
high productivity, the company wants its employees to work in a well-organized and competent
manner using time management skills tailored to the company's objectives. The company can use the
objective method that reveals how much an employee's output contributes to your company's goals
and objectives. Second, they can use a quantitative method to measure productivity by the number of
parts or products used in a given period of time, for example, per hour, day or month.

Employee Productivity: - Worker productivity is about maximizing returns with minimal effort or
wasted expenditures. In order to achieve high productivity of workers, employees must work in a well-
organized and competent manner using time management skills tailored to the company's objectives.
The monitor's policies include a few steps:
Step 1: ask employees how well they are going
Step 2: Develop an Objective Measurement Scale for Activities & Tasks
Step 3: Develop a Subjective Measurement Scale for Activities & Tasks
Step 4: Develop measurements and metrics that reflect the multi-dimensional nature of the tasks your
employees are expected to be adept at

4) Employee Performance:-

Performance reviews are important not only to ensure the proper functioning of a business or
organization, but also to support employee motivation and career planning. We will use the following
employee performance model to measure employee performance:

SIMPLE PERFORMANCE REVIEW

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SIMPLE PERFORMANCE REVIEW

EMPLOYEE INFO

EMPLOYEE NAME XYZ DEPARTMENT Dispatch

REVIEWER
EMPLOYEE ID 11 XYZ
NAME

POSITION HELD Executive REVIEWER TITLE HR Manager

LAST REVIEW DATE 29/08/2017 TODAY'S DATE 7/09/2017

CHARACTERISTICS
QUALITY UNSATISFACTORY SATISFACTORY GOOD EXCELLENT
Works to Full Potential
Quality of Work
Work Consistency
Communication
Independent Work
Takes Initiative
Group Work
Productivity
Creativity
Honesty
Integrity
Co-worker Relations
Client Relations
Technical Skills
Dependability
Punctuality
Attendance

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GOALS
ACHIEVED GOALS SET IN PREVIOUS REVIEW?
Ability to work within team work, and fulfil the daily target

GOALS FOR NEXT REVIEW PERIOD

Improve delivery and dispatch on time

COMMENTS AND APPROVAL

COMMENTS
Overall employee performance was good but need to improve in some areas.

REVIEWER
EMPLOYEE SIGNATURE
SIGNATURE

5) Milestones achieved against targets:

It is very important to define a milestone of the plan. Once the milestones have been identified and
defined, use milestone to monitor progress. The milestones are more than planning devices (which
would be quite important), they are also communication and credibility devices, in order to define
expectations and share information about the status. Milestones have prepared the steps to measure
progress and, as such, need to be defined at the beginning, before costly work begins. Without the

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means to measure progress, your plan can quickly be out of control and you may miss important
signals regarding the viability of the plan.

Activity Early Early Late Late Baseline Baseline

start finish start finish start finish
Redevelop 30/06/17 15/08/17 07/07/17 23/08/17 30/06/17 20/08/17
website
Purchasing 15/07/17 31/07/17 30/07/17 07/08/17 20/07/17 05/08/17
vehicles
Recruit new staff 07/07/17 07/09/17 07/07/17 01/08/17 07/07/17 15/07/17

Training staff 03/07/17 16/07/17 05/07/17 15/09/17 05/07/17 15/08/17

6) Dates for monitoring activities: Regularly monitoring your projects agenda performance can
provide early indications of possible activity-coordination problems, resource conflicts, and possible
cost overruns. The organisation can describe an activitys schedule performance by noting the start
and end date of each activity in plan, the dates when milestone are reached.

Team Working July August September

objectives
Identify when team Ongoing Employee to Report back in
members need help observation collect feedback review meeting on
or assistance and from team 29th
offer that help members
Fully participate in Ongoing Observe at team
team meetings and observation meeting on 21st
training sessions
Identify ways the Agreed will report
team can work back on ideas by
together more 31st
effectively
Identifies and share Middle of July Collect feedback Report back in
knowledge and from project review meeting on
expertise of online manager 29th
sale skills
Effective use of Ongoing Report back in
team resources observation review meeting on
28th

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7) Resources used for monitoring: Benchmarking is a great way to get feedback on your company's
performance. Benchmarking compares measures such as cost, cycle time, productivity or quality of a
specific process or method to what is widely considered to be an industry standard or best practice.
Benchmarking provides a snapshot of your company's performance and helps you understand where
you are in relation to a particular standard. The results should be used to inform actions to be
improved.

2. Analyse and report operational performance

Ans:
The plan of implementing an e-commerce strategy has lots of benefits to company. These benefits may
include:
Online shopping is very easy and convenient way of shopping for customers. So, it will influence
their purchase decisions and attracts them towards companys products.
It will increase profit of company by increasing numbers of sales and customers.
It will also help to increase brand reputation of company.
However, company can face lots of risks and problems by implementing e-commerce strategy:
Due to lack of qualified staff, a company has poor online sales and poor customer service.
Staff members consider that online sales strategy as threat to jobs.
By implementing this strategy, the Company may face certain technological risks such as security risk,
information risk, etc.
Company also need to develop their website so it requires lots of money.
This will increase the operational cost of businesses because a company needs additional staff,
equipment and other resources to manage its online business.
Operational Analysis Objectives:
In addition to the development performance measures of "Are we in the schedule?" And "Are we in
the budget?" An operational analysis answers more subjective questions in the specific areas of

Financial Performance
Innovation
Customer Satisfaction
Strategic and Business Results

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In terms of customer satisfaction, the analysis should focus on whether the investment fully meets the
customer's needs and the cost is as low as possible for the results provided. The objective here is simply to
know whether the investment is the delivery of goods or services that it is intended to provide.
A Strategic and commercial results measure the effect of investment on the performing organization itself and
should provide a measure of the performance of the investment to meet the needs of the business,
contributing to the achievement of strategic objectives of the organization and continue to be aligned with
the strategic direction of the organization.

3. Provide at least 3 recommendations for operational improvements.

Ans:
A business can improve its business by increasing profits, reducing losses and costs, improving customers,
expanding the market, and so on. The VTI Group can improve its operations with the following suggestions:
Explore the new market and improve marketing- A business can start its year by exploring new
markets for their business. Whether they are looking to target a new demographics or to evolve their
business on the Web. They must take time for their plan and how they can expand their current
market. A company needs to look for ways to improve its marketing, whether it is gaining easy
advertising, organizing an open house or preparing direct emails.
Keep employees involved- At present, the VTI Group has an untrained staff for online sales and
believe that online business is a treat for their work. Management should provide appropriate training
to staff members to improve their performance. Good employees are hard to find, but they are an
important part of your business. Check to see if they get what they need and are part of the team.
Help them understand the importance of their role in your business and their impact on the business
as a whole. Review your relationship with your employees and find ways to keep your relationship
happy and avoid costly attrition.
Find the ways to cut your cost- A company needs additional staff and resources to manage its online
business; it will increase its operational cost. Management needs to find ways to reduce the cost of
doing business. Even if a company has secured financing from investors, they must constantly look for
ways to reduce their costs. From making double-sided paper copies to order bulk shipping supplies, a
company can reduce the wasted material, effort and time to manufacture, sell and deliver its product.
The result is an improvement in your company's profitability and an increased competitive advantage.
Streamline communications with customers- Interacting with customers effectively and efficiently
helps keep them satisfied - and few things are as important to your profitability as satisfied customers.
Linking an IP communication system to a customer relationship management (CRM) solution is one
way to improve communications with customers. When a client calls, a pop-up window of the
customer contact record appears on the screen of an employee's IP phone, on the computer screen or
both. Before the second ringtone, the employee answering the call has access to information about
customer calls, such as pending orders and recent returns.

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Improve employee retention and satisfaction- When your business has inefficient processes, such as
obsolete phone systems or a slow network, employees can be frustrated because they cannot do their
jobs with the tools provided. Clients may perceive this frustration and lose confidence in your business.
Worse, the valued employees can be burned and decide to move on. Not only have you lost a
productive worker, you have to spend time and money hiring a replacement. To help employees be
productive and satisfied, your company needs, at a minimum, a secure, reliable and always available
network.

4. Identifying under-performance areas and identifying possible corrective actions.

Ans:

Under-performance areas (common issues) :-

Lack of feedback means employee doesnt know they are underperforming

Low workplace moral or lack of motivation
Personal issues, including stress, alcohol problems or mental health complaints
Workplace bullying
Employee is unaware of goals and workplace standards
Mismatch between staff skills and the role they are doing

Possible corrective actions

Meet with the employees: no issues can be resolved without speaking with the employees, so set up a
meeting once identified and analysed the problems. In the meetings, managers should remain
encouraging, explore why there is a problem through asking plenty of questions (this is a two-way
process) and also summarize to ensure everyone is on the same page.
Remember six rules when confronting a poor performing employee: never confront in anger, do it
immediately, do it in private, be specific, use data and be clear.
Identify the problem: clearly identifying the problem will enable managers to understand the possible
reasons for underperformance.
Analysed the issue: How big is the problem? Is it affecting just one employee or an entire team or
office? Start to approach solutions through analysing the issue. In addition, judging how big the gap is
between expectation and what is being delivered.

Under target sales- The company's sales continue to occur under the target. This means that the
company's sales do not go according to the company's plan. This is a very serious issue for a
company because it can decrease the overall profit of a business.
In this case, a company must also take immediate action. First, they must follow sales. They must
look for clients to know their needs and needs and a level of satisfaction with the service. A

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company must also conduct research on new market conditions and what the current market
requirements are. In addition, competitions must be re-evaluated and processed.
Inadequate training program- The company does not take an appropriate training program for
employees who can improve their skills and knowledge required for online customer sales. In
addition, the duration of a training program is very short and not sufficient to be effective. Due to
the lack of support in job roles, continuing education and coaching, employees are not able to
perform well.
Company need to take immediate action to solve this problem because trained employees are
required to improve their online sales. Lack of proper training will reduce business sales and profit.
VTI Group needs to provide adequate training to cover required skills and knowledge.

5. What mentoring and coaching services are provided to an underperforming

employee?
Ans:
Mentoring service: Mentoring is a long-term process and the company can use mentoring to
address complex human resource challenges, such as increasing employee retention, enabling
business succession plans, and improving staff productivity. It is a relationship in which a more
experienced or competent person helps guide a less experienced or less informed person. An
organization can choose:

Focus and develop mentoring, by designing a mentoring tailored to the achievement of the
organisation's specific mentoring objectives.
Leave mentoring as an informal process, in which case it will operate randomly. Its impact on
individuals and the organisation will be a matter left to chance and will be largely unrecognised
by the organisation.
Help mentoring, by formally or informally providing an environment where mentoring is
regarded favourably, self-development is encouraged and it is acceptable to take time for the
mentoring activity.
Diversity Mentoring: a diverse workforce is required to stimulate innovation, cultivate
creativity, and steer business strategies. Mentoring empowers a diverse range of employees to
share their opinions, ideas, knowledge, and experiences on a level playing field. Through
diversity initiatives, employees learn cultural awareness to create an inclusive corporate
culture and learn of their own importance to their company.
Knowledge Transfer: helping employees acquire necessary knowledge, skills, and expertise is
essential for any organization. Mentoring is an effective approach to organize, create, capture,
and distribute knowledge. It supports short- and longer-term situational as well as topical
learning between individuals and groups. It also reduces the time required for knowledge

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transfer by providing direct access to a range of experts and peers who can share the required
knowledge and skills in an environment that promotes rapid learning.
Reverse Mentoring: popular among companies that believe everyone has something to bring
to the table, reverse mentoring partners an older, more experienced employee with a younger,
less experienced newcomer.
Monitor staff performance against behavioural objectives: observation, report back and
feedback from people on the staff members performance (e.g. team members or customers)

Coaching service- Coaching is a short-term and ongoing process that is designed to help an
employee become more competent and overcome barriers to improved performance.

Overall, there are 4 key and simple steps to coaching an underperforming employee, which are
explain, ask, involve, and appreciate.
Step1: Explain
Clearly describe why something needs to change. Answering the "why" question is a key motivator--it
gives meaning to our work.
Step 2: Ask
Confirm that your employee understands. Don't proceed until you and the employee are both
perfectly clear.
Step 3: Involve
Discuss ideas for potential solutions and approaches. Continue your discussion to identify the root
cause for the performance gap (focus on performance, not the person). Solving symptoms is easy (and
also futile), so ensure you identify the root cause.
Step 4: Appreciate
Recognize positive movement or effort in order to encourage continued progress toward the agreed-
upon goal. Look for things they are doing well and reinforce it. Demonstrate your appreciation for who
they are, not just what they are doing.

Company can assist coaches for employees. They encourage employees to make progress
toward their goals, and they recognize their successes.
The coach helps to clarify milestones or measures of success and holds the employee
accountable for them.
Short-term online courses can provide to employees which can increase their skills and
knowledge

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Coaching employees the right way we will:

Save valuable time and money correcting underperformance
Encourage improved employee performance
Give the staff new capabilities that will support him/her career progression
Delegate more effectively to the staff because coaching supports delegation
Improve employee engagement
Improve employee retention

6. What systems you will implement to ensure that procedures and records related to
documenting performance are managed in accordance with organizational
requirements.
Ans:-

Records management is an organizational function dedicated to the management of information in an

organization throughout its lifecycle, from the moment of creation or registration to its final
disposition. This includes identifying, classifying, storing, securing, retrieving, tracking and destroying
or permanently retaining records.
Here is the system that I will implement to ensure the management of producers and recordings:

Proper system of destroy and achieve records documents- Some recordings may be destroyed
after the expiration of their legal retention period. Records that must be kept permanently should
be archived and not destroyed. Documents of permanent value are historical documents, minutes
of meetings and legal documents. Archived records can be stored on-site or in an off-site storage
facility.
Put security and access of files and information- Electronic records should be given special
attention. For example, without an appropriate security system, an original document such as
meeting minutes may be modified without permission and / or easily detected. Electronic records
must be kept secure and at the same time easily accessible for retrieval.
Decide the appropriate way of store and manage records- how the recordings are stored will
depend on the purpose of the recordings, the type of recordings, the record retention period; and
access needs. Records can be stored on-site at the association's workplace. If space is insufficient
and appropriate, records can be stored offsite by storage companies. Essential documents are
stored in safe, secure and appropriate facilities.

The Records Management System (RMS) is the management of an organization's records throughout
the record lifecycle. The activities of this management include the systematic and effective control of
the creation, maintenance and destruction of records as well as the associated business transactions.
The system involves:

Enforcement of policies and practices regarding creation, maintenance, disposal of records

Creation of records store plan.

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Classification, identification and storing the records.

Coordinating internal and external access to the records keeping in view of data privacy and business
and data confidentiality.
Identifying the information which needs to be captured.
Information planning for the organization .

A Quality Management System (QMS) is a formalized system that documents processes, procedures and
responsibilities for achieving quality policies and objectives. A QMS helps to coordinate and lead an
organization's activities to meet client and regulatory requirements and to improve its effectiveness and
efficiency on an ongoing basis.

Standardization and implementation of documented procedures for the development of products,

services, and processes, all based on government regulations. The Quality Manual, including the
statement of Mission, Vision and Quality Policy;
Develop Documented Procedures (for control of documents, control of records, internal audit, control
of nonconforming products, corrective action, and preventive action) describing how the Service
carries out its work. Flowcharts may be used to describe core and support processes. Procedures
should be reviewed continuously and staff should be trained to implement them.

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