Assessment Task 1

Assessment Task 1 BSBMGT517 Manage operational plan
Develop an operational plan.
Submission details
ALBERT AIR AVILA Student

Student’s name CRI0100IKL
VEGA no.
Assessor’s Phone
name no.
Assessment
site
Assessment
08/05/2021 Time/s
date/s
The assessment task is due on the date as mentioned in the Moodle. Any
changes to this arrangement must be approved in writing by your assessor.
Submit this document with any required evidence/proofs attached. See
specifications/details below for details.
Performance objective
You will demonstrate skills and knowledge required to develop operational

plans in
consultation with key stakeholders/participants
Assessment description
In response to a simulated/pretend 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,1 plan for contingencies/possibilities,
and obtain approval in accordance with organisational requirements.
Procedure
1. Read the BBQfun scenario information provided in Appendix 1 and the

BBQfun simulated business documentation provided by your assessor.
1
Performance indicators (KPI) - A Key Performance Indicator is a measurable value that demonstrates
how effectively a company is achieving key business objectives. Organizations use KPIs at multiple
levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall
performance of the business, while low-level KPIs may focus on processes in departments such as
sales, marketing, HR, support and others.
LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. Modified sep 2020 1st
edition version: 3.1
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2. Write a summary of the BBQfun operational environment that includes:

a. an outline of the legislative and regulatory (government rules etc)
context/relationship that is relevant to BBQfun’s operational plan
(available on pages 16–18)
b. an outline of the BBQfun policies and procedures that directly relate
to the operational plan.
c. an explanation of the role of an operational plan in achieving the
successful implementation of the e-commerce strategy.
d. 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.
e. an explanation of your budgeting process as part of your
operational plan.
3. Research resource requirements for implementation of e-commerce
strategy.
4. Participate in a simulated consultation role-plays with relevant personnel
to determine resourcing needs. You will role-play with the:
a. Sales and Marketing Manager – prepare to discuss human
resourcing requirements.
b. 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.
5. Develop an action plan for the implementation of the e-commerce
strategy. In your plan include:
a. physical resourcing (all major steps for resourcing, including
procurement/gaining of different types of resources, but not to the
detail of including all procurement steps for each resource type)
b. human resourcing (all major steps, e.g., recruiting, training,
communication)
c. timelines and milestones 2 for implementing the e-commerce
strategy.
Timelines and Milestones - A milestone is a definite achievement that one can check has or has not
been achieved on a given day. The project plan consists of a timeline and some milestones. The
milestones are specific achievements, and are attached to specific dates on the timeline.
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d. consultation and communication (ensure all affected staff are

informed and engagement is encouraged for all stakeholders)
e. 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.
6. 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 3 for an e-commerce customer service representative including
three KPIs and associated targets.
Note: The current budget and operational plan for BBQfun is in Appendix
1. A balanced scorecard template is in Appendix 3.
7. 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:
a. one risk due to employee underperformance
b. one risk related to management of intellectual property 4 (IP)
c. one risk due to breach/break of health and safety compliance
responsibilities.
8. Develop a proposal for resourcing 5 to be presented for approval to the
Operations General Manager. Include in your proposal:
a. description of proposed implementation of resourcing
b. breakdown of costs
c. benefits to organisation
d. a list of different approaches to developing key performance
indicators.
e. risks to organisation by not implementing.
A balanced scorecard is a strategy performance management tool – a semi-standard structured report,

that can be used by managers to keep track of the execution of activities by the staff within their control
and to monitor the consequences arising from these actions.
4
Intellectual Property - Intellectual property (IP) refers to creations of the mind, such as inventions;
literary and artistic works; designs; and symbols, names and images used in commerce
5
Resourcing - work of finding things needed for project.

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f. outline of identified risks and contingency planning

g. 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)
h. legal responsibilities and WHS considerations.
9. In a third simulated role-play, present proposal for approval by the
Operations General Manager.
10. 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.
Specifications
You must:
● participate in simulated 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/understand 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
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needs, strategy development, sequencing activities 6, identification of

risks and impact on operational performance and generating
contingency/backup plans.
● interaction/connection skills to communicate and empathise 7 with
stakeholders during consultation processes and collaborate to achieve
business outcomes.
● numeracy (understand figures) 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.
Sequence Activities is the process of identifying and documenting relationships among the project
activities. So the fundamental reason for the sequence activities process is finalizing the
interrelationship of activities to finish the project scope and achieve the task objectives.
7
Empathise - understand and share the feelings of another.

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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
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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)
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 $100,000
Staff training Online customer service training $3,000 per

staff member = $24,000
Recruitment costs $30,000
Management change $3,000 each = 1 Brisbane store manager, 4
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Costs: e-Commerce strategy (initial investment)
Resources Costs
leadership training for Brisbane team leaders, 1 Gold Coast store

store managers and team manager and 3 Gold Coast team leaders x
leaders $3,000 = $27,000
Warehouse and office $50,000

reconfiguration
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: (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
Total $1,680,000
The following expenses should be incurred in the 2014 financial year and be
included in associated financial targets for spending:
Additional staff $400,000
Additional $300,000
marketing
Additional training $51,000
Recruitment $30,000
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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
Present value (PV) of future cash

Profitability index flows
(PI) = Present value (PV) of initial
investment
PI>1 indicates project should be undertaken.
FY 2014 FY 2015 FY 2016
Cash flow from operations (minus $200,000 $500,000 $800,000

ongoing operational costs associated
with e-commerce such as additional
staffing)
Present value of future cash flows $180,000 +$420,000+$600,000

(discounted future cash flows with = $1,200,000
respect to opportunity cost, inflation)
Present value of initial investment $861,000
Profitability index 1.39
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.
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● 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 8 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.
Musculoskeletal disorders (MSD) are injuries or disorders of the muscles, nerves, tendons, joints,
cartilage, and spinal discs
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Budget summary
BBQfun 2013–2014 Approved budget by activities to be undertaken.
Income:
Sales $11,000,000 Barbecues and related

equipment.
Investment income $1,567,000 Real estate investment income

and rental of office space.
Cost of goods sold ($5,890,000) Cost of provision of goods,

(COGS) purchase of stock, distribution.
Gross profit $6,677,000 Gross profit.
Expenses:
Wages, salaries and $2,567,890 Wages, salaries, superannuation,

on costs work cover insurance, payroll tax.
Consultancy fees $50,000 Project management: WHS

management system; change
management.
Communication $42,000 Telephone, ISP costs, IT support.

expenses
Marketing $920,000 Cost of staff travel and associated

costs for sales, etc.
Premises expenses $1,000,000 Rent, electricity, maintenance,

cleaning.
Insurance $120,000 Liability insurance
Depreciation and $177,569 Computers and capital equipment

amortisation that is depreciated.
Office supplies $65,068 Printing and stationery, postage,

amenities.
Training $62,187 Sales training: leadership, WHS,

ethical/legal training.
Total expenses $5,004,714
Net profit $1,672,286 Net income before tax.
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Operations
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. 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.
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A summary of human resources at each of the two locations appears below:
Brisbane: Head office
● Employees:
○ 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
● Employees:
○ 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.
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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 9 to
sustain/carry on and ensure the business meets all opening and ongoing
financial obligations.
The company may experience financial pressures during slow sales periods.
Working capital is the amount of available capital that a company can readily use for day-to-day
operations. Working capital is a measure of a company's liquidity, operational efficiency, and its short-
term financial health.
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A long-term strategy to maintain a positive cash flow 10 during these periods

will be to diversify/expand 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 $2,567,890
Consultancy fees $50,000
Communication expenses $42,000
Marketing $920,000
Premises expenses $1,000,000
Insurance $120,000
Depreciation and amortisation $177,569
Office supplies $65,068
Training $62,187
Total Expenses $5,004,714
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
1. Conduct market research to determine needs.
2. Negotiate with suppliers.
3. Receive and warehouse products.
4. Provide service and information to warehouse customers.
5. Receive payment.
6. Arrange delivery of items (if required).
BBQfun accepts cash, EFTPOS, and major credit cards. Credit terms are
available for trades.
10
Positive cash flow indicates that a company's liquid assets are increasing, enabling it to settle debts,
reinvest in its business, return money to shareholders, pay expenses and provide a buffer against future
financial challenges
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Operational plan (with strategic objectives, measures, and tasks) FY 2013–2014
BBQfun Operational Plan (with strategic objectives, measures, and tasks) FY 2013–2014
Objectives: Performance measures Tasks:
1 Engaging with ● Completion of ● Conduct quarterly surveys on customer satisfaction.

customers through market/marketing research.
● Evaluation of market and marketing data to
marketing, research, ● Completion of customer determine marketing opportunities.
and personalised surveys.
service.
● Completion of reports to
identify marketing
opportunities.
2 Building reputation for ● Percentage of brand ● Audit of supplier quality.

quality products and recognition in sought-after
● Regular contact with suppliers.
quality customer categories in periodic
service: customer surveys. ● Investigate resourcing needs: people, products.
● Raise ● Percentage of customers ● Fulfil resourcing and distribution needs in

organisational with positive view of accordance with policies and procedures.
profile by 20%. organisational ● Maintenance of enterprise resource management
responsiveness, innovation, (ERP), point of sale (POS) and customer relationship
● Improve client
quality, ethics, safety. management (CRM) systems.
satisfaction
performance by ● Number of customer
25%. complaints.
● Delivery times.
● Number of returned items.
LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd. 1st edition version: 3.1
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3 Supporting people to ● Numbers of injuries ● Research effectiveness of possible incentives for:

perform via training and (Target = 0). safe work achievement; healthy lifestyle.
performance ● Numbers of absentees ● Engage workers with strategic goals of business and
management.
(Target = <3% of total hours). support professional development in line with
strategic goals. (Targets to be set by individual
● Anti-discrimination
managers).
complaints (Target=0).
● Management engagement with employees to
● Lost Time Injury Frequency
achieve greater buy-in of organisational goals.
Rate (Target=2)
● Include explanation of how activities work with
● Percentage completion of
organisational strategic goals in all communications
performance plans and
to internal personnel.
performance management
process. ● Regular coaching.
● Numbers of coaching ● Training needs analysis and training (leadership,
sessions completed. WHS, ethical/legal training).
● Numbers of operational- ● Strategic goals included in induction program.
related training programs
● Employee incentives for performance in all areas
completed.
relevant to operational and strategic goals.
4 Increasing sales General ledger accounts; ● Marketing campaigns.

revenue. financial statements:
● Sales training for floor staff.
● Revenue target = $11 million
● Profit target = $1,792,286
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5 Reduce direct and ● General ledger accounts; ● Renegotiate with suppliers.

indirect costs of financial statements: ● Research potential new suppliers.
operations. ○ wages
● Research new distribution possibilities, such as
○ cost of agent services e-commerce/delivery.
○ consultancy fees ● Management engagement with employees to
achieve greater employee support of organisational
○ wastage and associated
goals.
expenses.
● Greater use by managers of budgets to encourage
● Expense target = $5,004,714
restraint.
● COGS target = $5,890,000
● 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).
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Appendix 2: Action plan template
Milestone: Action and/or objective Date Person Budget or resources

(to achieve strategic aims of physical or human responsible (where applicable)
resourcing)
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Assessment Task 1 BSBMGT
Appendix 3: Balanced scorecard template
KRA (key Target KPI (key Result

result performance
area) indicator)
LLOYDS INTERNATIONAL COLLEGE © Innovation and Business Industry Skills Council Ltd.
1st edition version: 3.1

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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

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Approved variations to the plan based on By when By whom

contingencies faced
Answer

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2.
BBQfun Operational Environment Summary
BBQfun is set to provide their customers a high satisfaction experience

through providing great value of their products. In line with this mission as a
company the following are the outlines that directly relate to the company’s
operational plan.
2. A
Legislation and Regulatory
Privacy Act 1988 (Cwlth), an act to make provision to protect the privacy of
individuals, and for related purposes, Anti-Discrimination Act 1991 (Qld) that
provides protection against unfair discrimination, sexual harassment, and other
objectionable conduct, Superannuation Guarantee (Administration) Act
1992 (Cwlth), an Act relating to the establishment and administration of the
Superannuation Guarantee Scheme, and for related purposes. Fair Work Act
2009 (Cwlth), an Act relating to workplace relations, and for related purposes,
Work Health and Safety Act 2011 (Qld) (the WHS Act) provides a framework
to protect the health, safety, and welfare of all workers at work. It also protects
the health and safety of all other people who might be affected by the work.
New Tax System (Goods and Services Tax) Act 1999 (Cwlth), an act about
a goods and services tax to implement A New Tax System, and for related
purposes and lastly, AS ISO 15489: 2002 Records Management, provides
guidance on managing records of originating organizations, public or private,
for internal and external clients.
2. B
Policies and Procedures
Policies and procedures provide essential support for the operational systems
and processes of an organization. Policy and procedure documents must, therefore,
be considered when planning operations. Policies inform employees of the overall
aims of the organization, such as ensuring quality, consistency, fairness or legal
compliance, about particular aspects of operations. Procedures support policy by
providing employees with specific guidance on how to implement policy and perform
functions. Policies and procedures may also determine the process followed to

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develop and improve operational plans, including risk assessment and contingency
planning, monitoring, and performance management.
Various policies and procedures our developed as per strategies in the

operational plan, first of it is the Performance Management Policy and Procedure
which has the purpose of ensuring performance management is carried out
consistently,
fairly and transparently and in accordance with organizational requirements. Next is

the Procurement Policy and Procedure, which has the purpose of ensuring the
acquisition of resources is carried out consistently, fairly, and transparently and in
accordance with organizational requirements. And lastly, Recruitment and
Induction Policy and Procedure, with the purpose of establishing establish
guidelines for the
recruitment and selection of employees. BBQfun aims to attract and employ the
most suitable person for the position who will support the organization’s values,
culture, and goals to achieve its strategic directions. Recruitment and selection of
employees will comply with all legal requirements, and with relevant equal
opportunity, affirmative action and human resource management principles, policies
and guidelines adopted by the organization.
2. C
One of the essential roles in achieving a successful implementation of the e-

commerce strategy is a great operational plan. From its definition, it is a specific plan
for the use of the organization’s resources in pursuit of the strategic plan and details
specific activities and events to be undertaken to implement strategies. A well-
structured and developed operational plan for an e-commerce contributes to the
success of implementing it. E-commerce can be a tough work to do but with a
strategy that has a good operational plan that involves making the right choices, a
clear-cut vision, mission, and objectives about what will be achieved, in how much
time, within what budget, identification of the right resources for and constraints in
the face of execution of the strategy mentioned in the business plan, and what
elements will be considered for roadmap. Knowledge and deep understanding of the
digital marketing tools and techniques that will help in reaching and acquiring
customers is required. Your business must reach out to customers who are online
across multiple dimensions and devices.
So, the assumptions considered in preparing the strategic business plan should be
in alignment with the ecommerce industry’s norms and trends.
2. D

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My plan mainly focuses on amending the operational plan. It is to weigh

options and keep those that are much needed and change strategies that are less
effective. It will be less of effort but a quicker way to implement e-commerce
strategies in a more organized technique. Considering that people now a days are
on the go, the platform needs to be flexible and accessible that it can easily be
enjoyed by people from different walks of life and for them to easily navigate all the
products and services that the company is providing.
A part of it is providing up skill trainings and refreshers to existing employees

to make them more effective with the ecommerce side. Also hiring new employees
and provide them with full set of training from basic to complex techniques to get
them fully equipped and knowledgeable on the said ecommerce strategy.
I find it more of a fast business transaction providing customers’ needs in a

timely manner. Rather than waiting in line, customers will have the capability to get
what they want with less hassle and getting their orders delivered at their doorstep.
Considering time and budget, it will be less of processes and expenses to get things
done with the ecommerce platform. Considering that it is what most people preferred
now a days, it will be expected to get more sales revenue.
3. Implementation of E-commerce Strategy
Successful implementation of any ecommerce business is dependent on

implementing or adopting these essentials process:
Planning for e-commerce Business
Technology Selection/Website Audit &

Analysis Customer Acquisition
Customer Engagement
Customer Retention
Optimizing Key Metrics, and Business Analysis & Customer Insights
Each of these steps has a positive and cascading effect on the other steps and
hence implementing each of them in the right priority and in a phased manner is of
utmost importance.
1. Strategic business planning and roadmaps – Strategy is about making the right
choices that will help reach the stated business objectives. There should be a clear-
cut vision, mission, and objective about what will be achieved, in how much time,
within what budget, identification of the right resources for and constraints in the face
of execution of the strategy mentioned in the business plan, and what elements will
be considered for roadmap. Knowledge and deep understanding of the digital
marketing tools and techniques that will help in reaching and acquiring customers is
required. Your business must reach out to customers who are online across multiple

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dimensions and devices. So, the assumptions considered in preparing the strategic
business plan should be in alignment with the ecommerce industry’s norms and
trends.
2. Technology selection/ website audit and analysis – In order to provide the

maximum benefit to the end customer, your chosen ecommerce technology should
be fully capable of being customizable, and be able to complement the business
model, and adhere to the existing best practices in offline retail. If you are a retailer
taking the first-time plunge into ecommerce, various functionalities on the e-
commerce website should be carefully thought over based on the industry, audience
being targeted, various customer segments who may be buying the offered products
and services. With respect to retailers who have implemented an ecommerce
strategy and have not yet received the rewards of the complete capability of the
ecommerce technologies, there needs be a complete assessment of how the
website can perform better by examining the store front and customer flow, analysis
of competing websites, identification and implementation of solutions based on the
gap analysis carried out (‘as-is’ and ‘to-be’). It is equally important to measure and
monitor the process that was made because of the implementation of the suggested
changes.
3. Customer acquisition – Online or popular digital marketing encompasses multiple

tools for reaching out to the new generation of customers, who are actively engaged
in using multiple devices, through search engine optimization, search engine
marketing (paid advertisement that includes both cost per click and cost per
thousand impressions), social media marketing (that includes both cost per click and
cost per thousand impressions), email.
campaigns, display advertisements using various ad networks, referral
programs and re-targeting campaigns. Going by the sales principles of AIDA

(awareness, interest, desire, and action), it is important to note that the cost of
customer acquisition will be very high for brands and retailers that are newly
establishing their product offerings exclusively online. However, for brands that are
well established offline and are pursuing ecommerce strategy, the cost of customer
acquisition is lesser compared to the new entrants.
4. Customer engagement – Customers these days are actively seeking to engage

with brands to understand the core benefits and unique value proposition that the
brand offers, discount and offers during special seasons, a robust support
mechanism for queries/clarifications regarding the products displayed and
interaction with customer support executives to know more about policies on returns

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and exchange, etc. Engaging customers through various social media channels also
instils superior trust in the minds of customers.
5. Customer retention –With the advent of sophisticated e-commerce technologies,

new age retailers will be able to leverage an almost one-to-one customer experience
and that is the best a customer can really expect. However, it should be noted that to
fully leverage best-in-class technology, there needs to be a constant effort to look
out for features and functionalities that will enhance the customer experience.
6. Optimization based on key metrics – Some of the key metrics to measure the
health of an ecommerce venture are the total revenue generated, cost of customer
acquisition, % of customers converted, and % of customers entering the website
through various channels. However, these metrics may vary significantly based on
the business objectives and so every business needs a fully customized approach
for defining the key metrics and further analysis. Once these are defined and there
are a substantial number of customers visiting the website, a deeper level of
optimization is needed at 2 levels – on the technology and the business front.
a. Technology – This generally includes optimizing the page load speed, shopping
cart, check-out and other web pages, a/b, and multivariate testing, etc.
b. Business – Optimization here includes analysis of the total revenues generated,

total spends for running the e-commerce operations, optimizing the gross net
margins, conversion rates from each of the various channels, customer loyalty and
retention rates, rate of repeat purchase, frequency of repeat customers (across
multiple dimensions), % of carts abandoned, etc.
There are a lot of features and functionalities to helping online retailers improve
these numbers. There is a lot of research evidence supporting the incorporation of
features like reviews and ratings, and display of the right products either through up-
selling or cross-selling. Based on the statistics, 47% of shoppers read product
reviews prior to their online purchases and 63% are more likely to buy from websites
with online reviews or ratings [1]. Similarly, online companies that leverage a
recommendation system can increase sales by 8-10%.
7. Business analysis and customer insights – The final step in the entire process is
about fine-tuning and understanding the product categories that have performed well
compared to other products displayed in the web store. Assessing this is crucial
since each of these categories and products within those categories occupy the
prime real estate in the online world – the web store. It also should consist of
understanding the customer segments, demographics, profitable customers, source
of channels through which the profitable customers came to the web store, % of
revenue each profitable customer contributes to and the marketing spends that has
gone into acquiring these customers. These metrics are only a small representation

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of a larger list that can be optimized further. These metrics vary based on the
business needs and require a customized approach for defining, monitoring and
optimization.
In today’s “compete hard or perish” environment a holistic e-commerce strategy, if

planned and executed well, can be an important means of bolstering revenues,
increasing brand awareness, providing best in class support and shopping
experience to the new generation of customers.
The successful implementation of an e-commerce strategy helps in gaining a

competitive edge over the existing competitors, no matter whether they are online or
offline.
Types of operational plans
Role of operational
KPIs, measurement, implementation
KPIs:
Output or operational
Input or managerial
Production and manufacturing, Human resources, Processes, Distribution,

Location and facilities, Equipment
Research resource requirements for implementation of e-commerce

strategy
We help Transform businesses with truly innovative e-commerce

implementations that consider all relevant factors – the specific niche, target
clientele, brand image, product positioning and overall growth strategy, among
others – so our clients can take a quantum leap forward in terms of growth,
sales, and market share.
1. Help you select an optimum e-commerce platform, so you get only what
you need without wasting money on unnecessary functionalities.

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2. Implement an e-commerce solution that is fully in line with your

overall business strategy.
3. Ensure that your brand message is consistent regardless of the

customer touch point, be it web, mobile, social media, print, or other
media.
4. Contextualize your product offerings for each individual visitor to boost
sales and deepen customer engagement.
BBQ fun e-commerce strategy
1. Eight online sales and customer service people will be needed to

manage increased online customers.
2. No current staff has any online customer service skill

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Assessment Task 1 BSBMGT517 Manage operational plan.
Assessment Task 1 BSBMGT517 Manage operational

plan.
3. Management would like to develop people through re-training

rather than hire new staff to handle online sales.
4. E-commerce website will take 50days to develop.
5. Since stores are overstaffed, four of the required customer

service staff could be sourced from existing employees at the two
stores.
6. Six delivery trucks needed to enable distribution.
7. Three forklifts are needed.
8. Four additional warehouse workers are needed.
9. Six additional drivers are needed.
10. Office space will need to be reconfigured.
© Innovation and Business Industry Skills Council Ltd 1st edition version: 3.1
Page 31 of 20
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6. Appendix 2: Action plan
Page 33 of 20
Page 34 of 20
Page 35 of 20
7. Appendix 3- Balanced scorecard template
Page 36 of 20
Page 37 of 20
6. Appendix 4: Contingency Plan
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Page 39 of 20
9.
Proposal for resourcing
A. Description of proposed implementation of resourcing
After a thorough research, evaluation and deliberation, the consultation team

proposed that BBQ Fun needs more online staff, four warehouse staff and
six delivery drivers, delivery trucks and three forklifts to reach the target
sales and revenue of the company.
B. Breakdown of costs
Resources Costs
1. Equipment, assets $485,000
2. Marketing $300,000
3. Website development $100,000

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4. HR cost (Recruitment and training) $50,000
5. Warehouse and maintenance fee $50,000
Total $985,000
C. Benefits to organization
The e-commerce strategy is expected to have profit after three years plus it
has more benefits to gain such as but not limited to:
1. Boost sales
2. Increase the brand value and company reputation.
3. Improve the knowledge of staff and the management of the company.
4. Brings much more convenience to customers.
5. Larger database.
D. List of different approaches to developing key performance

indicators. Organizational Profile
1. Ranking online search tools
2. Social media
3. Food magazine (both online and printed magazine)
4. Customer satisfaction reviews
5. Word of mouth effect
E. Risk of organization by not implementing.
1. Company will not be exposed in a larger market.

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2. Limited customer reach
3. Less chance of expansion in the future.
4. Will not reach company target revenue.
5. Staff and management will remain underperforming.
6. Customer experience will not improve.
F. Outline of identified risk and contingency

planning Risks:
1. Underperforming employees- Development Training, One-on-

one TCM (Teaching, Coaching and Mentoring), Skills
Assessment and Performance Monitoring.
2. IP Management- Purchased intellectual property infringement liability

insurance (IP insurance), Leveraging technical cooperation with other
departments, Using Standards with fit for purpose IP policies, and
Obtaining indemnities and Participating in patent pools.
3. Breach of Health and Safety compliance responsibility- Implement

health and safety procedures and policies across all departments of the
company, Conduct inspection for employee’s work environment, and
Conduct surveys and pools for employees regarding health and safety
measures.
G. Sources of information used to develop proposal.
The following resources for this e-commerce strategy proposal were
taken from various technical and professional consultations conducted by
the team and from other company articles published on the internet.
Nothing was illegally used in this proposal, resources were properly
acknowledged and cited.
Page 42 of 20
Sales and Marketing Manager vs Consultant
Intro: Hello everyone! My name is Albert Avila. I am currently studying a Diploma of

Leadership and Management at Lloyds College. This assessment task 1 - roleplay is all
about our BSBMGT 517 – Develop an Operational Plan. Today, I am going to show you
about the consultation between Sales and Marketing Manager and Me as the Consultant.
So, let us Start!
CONSULTANT: Hello, how are you?
SALES AND MARKETING MANAGER: I am good.
CONSULTANT: Have I caught you in the middle of anything?
SALES AND MARKETING MANAGER: No, Not really. So why did you call me suddenly?
CONSULTANT: Actually, I called you here because I want to have a one-on-one consultation
between you, me, and the business.
SALES AND MARKETING MANAGER: So, what is it all about?
CONSULTANT: It is all about the plan on our human and physical resourcing that we need
to establish in order to associate our performance measure and targets annually.
SALES AND MARKETING MANAGER: Oh, I see.
CONSULTANT: So, as a sales and marketing manager of this company, do you know what
would be the better objective to our company?
SALES AND MARKETING MANAGER: Yes, Of Course! In order to gain the annual growth of
25%, Our objective here should be “To expand sales to existing customers, achieve and
maintain our customer service.”
CONSULTANT: So, you mentioned that we need to expand our sales, what target does our
company should do in order to have that 25% annual growth?
SALES AND MARKETING MANAGER: Well, for me. In order to have that 25% of annual
growth, we need to engage with our customer through social medias such as Facebook,
Instagram, Twitter and the like since most of the consumers nowadays are into online
business or they prefer to order online.
CONSULTANT: So, what do you think would be the benefit of it to our company?
SALES AND MARKETING MANAGER: Aside from engaging through social medias, we
should conduct quarterly surveys on customers satisfaction with the service and the
product itself.
CONSULTANT: Wow, you really have a nice idea.
Page 43 of 20
SALES AND MARKETING MANAGER: Also, we must build reputation for quality
products and customers by regularly contracting our suppliers, audit of supplier
quality, maintenance of enterprise resource management, point of sales and
customer relationship management system.
CONSULTANT: Do you think the performance of it can help increase the brand recognitions
in sought after categories in periodic customer surveys?
SALES AND MARKETING MANAGER: Yes, Of course!
CONSULTANT: So, how about the delivery times, number of customer complaints, and items
returned? SALES AND MARKETING MANAGER: I think we need to hire additional delivery
drivers, warehouse and online staff so that all ordered items through online can be delivered
on time; there will be someone who can control the items on the warehouse; and someone
to contact when there are complaints or inquiries from the consumers.
CONSULTANT: Do you think it would be a great idea?
SALES AND MARKETING MANAGER: Yes, if they are trained properly on how to handle that kind of
jobs.
CONSULTANT: Aside from that, you mentioned too that we must engage through social
medias and conduct surveys; do you have more ideas on how to increase our sales
revenue?
SALES AND MARKETING MANAGER: Well, I think we need to engage also in marketing
campaigns; more activities and sales training for our floor staff.
CONSULTANT: wow! You really have more ideas when it

comes to that. SALES AND MARKETING MANAGER: Of
course!
CONSULTANT: Anyways, thank you for that.
SALES AND MARKETING MANAGER: You are always welcome, Have a great day! See You!
Page 44 of 20
Technology Consultant vs HR Manager
HR MANAGER: Hello, how are you?
TECHNOLOGY CONSULTANT: I am good. Is this about our plan in adding some physical
resources in our company?
HR MANAGER: Yeah! You got it right. Just want to ask you

about it.
TECHNOLOGY CONSULTANT: so, what is it?
HR MANAGER: As per research, I saw there are lots of major E-commerce business
classifications, such as B2B E-commerce where it focus on providing products from one
business to another; B2C E-commerce that is a traditional retail model, where a business
sells to individuals, but business is conducted through online as opposed to in a physical
store; C2C E-commerce where it allows customers to trade, buy, and sale items in
exchange for a small commission paid to the site; and C2B E-commerce where consumers
sells goods or services to business. So, what do you think of it?
TECHNOLOGY CONSULTANT: With all types of e-commerce business classifications, I
think we should focus more on engaging through online application such as Facebook,
Instagram, Twitter and the like since most of the consumers are into online businesses or
shopping nowadays which is likely related to Business to Customer E-commerce.
HR MANAGER: Oh, I see. So, what do you think would be the best add-ons that is good
for the attractive thing? Like what should we do to attract more the customers who are
into social medias like that?
TECHNOLOGY CONSULTANT: Well, all we must do is increase our exposure through social
medias like creating promotional videos and advertising it since it is one thing every
customer will notice.
HR MANAGER: Nice idea, so how about our e-commerce website, if we want to add cart
shopping, what do we need to do in order to implement it?
TECHNOLOGY CONSULTANT: In order to implement it, we need to use some data base such
as POS order management system since it allows us to have one more business location
and adequately keep track of inventory at each without being present.
HR MANAGER: Oh, I see, that is great! So, what standard of technology use should every
employee need to learn?
TECHNOLOGY CONSULTANT: The standard of technology uses every employee needed to

learn is by learning more on how to operate the business well because from increasing our
exposure through social medias, we should help each other for our company to grow.
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HR: What do you think would be the best preparation we need to make a better
improvement?
TECHNOLOGY CONSULTANT: I think good technology, and everyone should have knowledge in
business.
HR MANAGER: What type of information should we collect in order to get more customers
by e- commerce?
TECHNOLOGY CONSULTANT: Customer’s feedback or message and preferences about our

company and the effect of the event
HR MANAGER: Since, we need an additional server, how big should our computers’ capacity to
be the server?
TECHNOLOGY CONSULTANT: For our additional server, I think we need 4TB HDD for it.
HR MANAGER: How about having our VGA Cards, how many do we need to support the server?
TECHNOLOGY CONSULTANT: I think five is good.
HR MANAGER: Oh okay, that is it. Thank you so much for your time. See you around!
Proposal to the Operations General Manager (roleplay)
Proposal Script:
OPERATIONS GENERAL MANAGER: Hello, how

are you?
HR MANAGER: I am Good. Thank you.
OPERATIONS GENERAL MANAGER: So, what is that? Are you ready for your proposal?
HR MANAGER: Yes, Of course. Here is the proposal made by our sales and marketing
manager and technology consultant about human and physical resourcing (summarize)
OPERATIONS GENERAL MANAGER: Oh, genuinely nice idea. Thank you so much.
HR MANAGER: You’re Always welcome, thank you for trusting them anyway.
Page 46 of 20
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Assessment Task 1 BSBMGT517 Manage operational plan

Develop an operational plan.

ALBERT AIR AVILA Student

You will demonstrate skills and knowledge required to develop operational

In response to a simulated/pretend business scenario, you will research

1. Read the BBQfun scenario information provided in Appendix 1 and the

2. Write a summary of the BBQfun operational environment that includes:

d. consultation and communication (ensure all affected staff are

A balanced scorecard is a strategy performance management tool – a semi-standard structured report,

Resourcing - work of finding things needed for project.

f. outline of identified risks and contingency planning

Your assessor will be looking for:

needs, strategy development, sequencing activities 6, identification of

Empathise - understand and share the feelings of another.

Appendix 1: Scenario – e-Commerce strategy

resources for the implementation. Use description of their roles in operational

Resourcing and budget: e-Commerce strategy

The following operational costs are associated with e-commerce business

Costs: e-Commerce strategy (initial investment)

Plant and equipment ● Delivery trucks $50,000 x 6 = $300,000

Promotional costs $300,000

Website developers $100,000

Staff training Online customer service training $3,000 per

Recruitment costs $30,000

Management change $3,000 each = 1 Brisbane store manager, 4

Costs: e-Commerce strategy (initial investment)

leadership training for Brisbane team leaders, 1 Gold Coast store

Warehouse and office $50,000

In addition, ongoing staff costs will be incurred.

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 =

 4 warehouse staff 4 x $40,000 ($160,000) per year for 3 years =

 6 delivery drivers 6 x $40,000 = $240,000 per year for 3 years =

Additional staff $400,000

Additional training $51,000

Profitability index over three years

Present value (PV) of future cash

PI>1 indicates project should be undertaken.

FY 2014 FY 2015 FY 2016

Cash flow from operations (minus $200,000 $500,000 $800,000

Present value of future cash flows $180,000 +$420,000+$600,000

Present value of initial investment $861,000

Profitability index 1.39

● medium risk of loss of IP ownership if a relationship with the website

All additional costs associated with contingency planning will be approved in

BBQfun 2013–2014 Approved budget by activities to be undertaken.

Sales $11,000,000 Barbecues and related

Investment income $1,567,000 Real estate investment income

Cost of goods sold ($5,890,000) Cost of provision of goods,

Gross profit $6,677,000 Gross profit.

Wages, salaries and $2,567,890 Wages, salaries, superannuation,

Consultancy fees $50,000 Project management: WHS

Communication $42,000 Telephone, ISP costs, IT support.

Marketing $920,000 Cost of staff travel and associated

Premises expenses $1,000,000 Rent, electricity, maintenance,

Insurance $120,000 Liability insurance

Depreciation and $177,569 Computers and capital equipment