Bsbmgt 402 - Assessment 1 - Caesi Mc Neill - 807407686 PDF

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BSBMGT402 – Assessment 1 – Caesi McNeill - 807407686 Question 1 List and describe the main areas of the business you will need to focus on in developing your operational plan giving examples of how each of these main areas will relate to the potential business outlined in the case study. 1. Human and Other Capacity requirements: As a small bait and fast food shop the human aspect will be quite simple. I would be able to run the shop by myself most mornings and perhaps have a casual employee or 2 to help out on the weekends or on days that I am unable to attend the shop. The task required are very menial so staff should require either very little or no training. I would need to acquire a food truck to run the operation out of, instead of renting or building a permanent structure. 2. Financial requirements: As a fresh retiree that worked in senior management for many years, I believe I have enough capital saved to start this business without having to borrow from a bank or lending organisation, who may not view me favourably anyway, being a retiree. I would purchase a ready to go food truck and establish lines of credit with food and bait suppliers. After 12 months of operation I hope to have made back the money laid out on the food truck and start to turn a slight profit, taking in to account the possible seasonal slumps that may incur financial gaps in the business.

3. Risk assessment and Mitigation strategy: Risks for this business can involve: 

Theft (from customers, staff and even maybe the food truck itself)

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Spoilage (of both food products and bait products)

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Weather damage (being on a dock, it can be expected to occasionally experience hard weather that could cause damage to the food truck and the stock)

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Seasonal slumps (business will not be as heavy and possibly grind to a holt during the off seasons for fisherman)

These risks can be mitigated by putting insurance policies in place, planning for slow periods of trade (possible financial gaps) and taking precautionary measures like adding a back-up generator in case of power fails.

Question 2 Organisations are becoming increasingly conscious of production cost savings. With the increasing cost of labour, organisations now see the need to include appropriate smaller targets as Key Performance Indicators (KPI’s) within larger Key Result Areas (KRA’s). Explain the importance of the establishment of KRA’s and KPI’s in the development of the operational plan. In your explanation list three (3) important targets to satisfy the key result area for cost savings for the business mentioned in the case study. How would you would monitor performance to the targets to ensure they are achieved.

Key Results Areas (KRAs) are qualitative in nature, generally an overall strategy that relates to a specific sector or department of the business. Key Performance Indicators (KPIs) are generally designed to complement the larger KRAs by providing groups of smaller activities that tend to be quantitative and measurable. You can use KPIs to measure the progress of your KRAs.

The proposed fresh bait and fast food business could use the below outlined KPIs to reach an overall KRA of cost saving for the business:

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Put a KPI in place that requires 80% of all sales to have a fresh bait and fast food product included. This should ensure that each sale is maximised for profit and will also lessen the need to throw away spoiled products as more will end up being sold

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Put a KPI in place that requires 20% of all sales to include a hot beverage. This should be easily achievable by training staff to ask simple questions like ‘Are you having a tea or a coffee with that?’ basically upselling

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Put a KPI in place that requires all sales to be performed in a timely fashion (within 5 mins of docking). As the food truck will be situated on or near the dock it will be essential to serve all customers quickly so that they can bring their boats to the dock and back out without too much trouble. This should ensure we get to serve as many customers as possible on any given day

Question 3 Many believe that few business owners or managers are challenging what is in their operational plans. They overlook assumptions made when assessing the impact of risks. If these assumptions prove inaccurate, the damage to the business will be great, particularly if strategies to limit the consequences of risk are not included as part of the operational plan.

Comment on the truth of this statement. Explain the importance of risk assessment and analysis in the operational planning process. Include two examples of potential risk in the establishment of the fresh bait/fast food business in the case study and how these risks might be minimised.

Given the current state of pandemic we find ourselves in due to Covid-19, this statement has never been truer. We have seen many businesses stumble and even fall or fail during this time, many relying on government assistance as a mitigation strategy due to a lack of having their own in place for this type of event. This is an essentially external risk and so it is expected for businesses to only have a limited contingency plan or even none given the never before experienced state of affairs that Covid19 has presented. It is essential for business to perform a thorough risk assessment and analysis, especially for essentially internal risks, the things that are in the businesses control to manipulate. For the fresh bait /fast food business, there are a few potential risks that should be identified during the establishment phase, and feasible mitigation strategies put into place to help minimise these risks. These could include but are not limited to: 

Contamination – being a small food truck, the potential to contaminate workspaces for food preparation and food stores is a very likely risk as staff will be required to handle both at most times of operation. This risk can easily be mitigated by putting strict procedures in place and ensuring all staff receive training on these procedures.

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Spoilage – a simple loss of power or incorrect storage could easily result in a loss of products. The mitigation strategy for this is to have back up power accessible (diesel generator) and providing adequate and clean storage for all storage areas and again to ensure staff are well trained in these procedures.

Question 4 The management of capacity and the availability of human resources within the business is key to the ability to: Part A - Meet the demands of customers, Part B - Satisfy marketing strategies, and Part C - Manage your Staff and any Service Providers through a brief Induction, using a mentoring and/or coaching process to achieve your KPI’s Referring to the business mentioned in the case study, list and then describe three (3) areas which must be taken into account when providing for human resources within the operational plan and include Parts A, B and C above.

The establishment and eventual continuing success of this fresh bait / fast food business will heavily rely on the capacity and availability of human resources and how these aspects are managed. There are three main aspects that must be considered when putting an operational plan together: 1. Getting the job description right – it is important to develop a list of any and all requirements a new recruit will need to fulfil the needs of the business and decide on a recruitment approach. In this case, the list of requirements might include: a. b. c. d.

Available for early start (Part A) Are you ok with water and strong fish smells Can work in a fast paced, cramped environment Previous training in food prep and handling

2. Interview and select the recruit – through this process it would be ideal to be preprepared with a set of questions that will help you gather information relating to their: a. Past experience/training (Part B) b. Personal attributes c. Behaviours 3. Induct the new recruit – using the strict procedures put in place in the planning stage, all new recruits will be inducted to the business in a way that introduces them to the workplace and the requirements of the position as well as familiarising them with other team members and service providers/vendors. (Part C) This process needs to be undertaken whilst considering the need to: 

Meet the demands of customers

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Satisfy marketing strategies

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Manage staff/service providers/vendors through a brief induction, using mentoring/coaching process to achieve KPIs

As have been outlined ((Part A), (Part B) and (Part C)) above.

BIBLIOGRAPHY

(The Northern Sydney Institute – Manage Operational Plan) https://nsfsakai.nthsydney.tafensw.edu.au/access/content/group/0f4ea869-0e76-4936-b16e7407f58a3a5d/ManagementAndSmallBusiness/Manage%20Operational%20Plan/p113.htm

(Difference between KPI and KRA, Surbhi S. 2017) https://keydifferences.com/differencebetween-kpi-and-kra.html (8 risk management strategies for restaurants and other food businesses, 2020 ) https://www.insureon.com/blog/risk-management-strategies-for-restaurants...