BSBMGT402: Assessment 1 PDF

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BSBMGT402: Assessment 1...

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BSBMGT402: Assessment 1

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. (250 words) The main areas of business to focus will be as follows 1. Human and Other Capacity requirements The first item to address is to do a wide analysis of human and other capacity requirements. we would be looking to understand and identify how many people will be to run the business. Firstly we would be looking at the people working in the store, staff and trainers to provide training. For example, making coffee. Identify place to access stock and items.Additionally, systems requirements for payment methods, bookkeeping, payroll, HR etc.equipments will also be needed to furnish the store, eg coffee machines, display cabinets,kitchen equipments for preparation of food etc. location will also need to be scouted for a available place for store opening 2. Financial Requirements We would be looking at what costs are related to securing a location, meaning rent, and to furnish it with equipment for storage, preparation, display and decoration. Cost will also be calculated based on human resources required eg, staff, manager, accountants, HR etc required for the operation of business. additionally ,estimate costs for cover supplies required eg, coffee, condiments, baits, food etc. also check if we have funds available to cover all or we would be looking at investors or request for lending from a financial institution 3. Risk assessment and mitigation strategy Identify risk and mitigate it. Example would be to see if we have a risk of another business opening shops anytime soon. Another thing we can think about is the weather, if people are accustomed to the idea of a place to purchase food, people around the locality actually like fast food or do they prefer some other cuisines.

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 monitor performance to the targets to ensure they are achieved. (250 words) KRA helps us identify the areas that can help in attaining high value for the organization.it will assist in advising employees exactly what is expected of them. KPIs are established to measure performance in Key Results Areas. Both go hand in hand and will assist in reaching the organisation goal and objective. When a result area is identified, KPI is then set up to measure our performance. When results are received, we can then work on statistics that we have not reached and work on improving it. The 3 important targets to satisfy KRA for cost savings for the business can be identified as below. - Employee turnover Low employee turnover plays one of the main factors in cost savings. Tenured staff will reduce the chance of cost applicable for the new hire, training and funds required for HR requirements. Steps are needed to be taken to ensure a good working environment, incentives, pay entitlements etc to be provided.taking care of employee mental and personal needs will also ensure employee health and increase employee productivity and satisfaction. - Customer satisfaction Customer satisfaction plays a vital role. Less complaints and getting the things right the first time will reduce costs related to replacement meals,complaints expenses and assists in maintaining a proper stature of business in the community. - Workplace health and safety Proper training and introduction to workplace health and safety is a major item. This will assist in reducing workplace mishaps and prevent major costs to incidents related. Proper training towards items such as lifting measure, stocking items etc, will ensure minimum employee injuries.

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. (250 words) In my opinion, there is some truth to the statement made. An operational plan will include items that are assumed to be risks and mitigations to resolve it. These are conducted with research, historical data and comparison of similar business models and resolution are prepared to ensure those risks would not affect business. Having said that, not all risks can be identified on a plan. For example, a pandemic is not generally included on a plan as a risk and solutions aren't devised. In these scenarios, a business will then have to identify what can be conducted to resolve with the issue to ensure no loss is experienced. Risk assessment and analysis is important for an operational plan as it will assist to identify unexpected incidents and we can be ready to respond when they arise. This will also identify the plan’s risks, impacts and actions to be taken. Additionally assist in other areas of plans such as cost, budget and performance. Potential risk in the establishment of fresh bait/fast food can be identified and mitigated as below 1. Injuries and liabilities Regular and ongoing Training on workplace health and safety to be provided to all employees.employees to be trained to do first aid in case of emergencies to staff or customers.proper investigations of premises, equipment and fixture to ensure its up to standards and potential hazard are contained. Insurances can be taken to ensure if situations do arise. 2. Failure The main risk of opening a new business venture is failure and losses. Mitigants that can be used to reduce is to always have a backup plan. We can look at organising events or doing additional advertising. We can also start investigating more about the market and what works.investigate business plans with similar business models .Additionally, work on steps to minimize costs and track financial data covering alternative plans for resources and capitals if need be. Proper insurances can be taken to minimise liabilities in an event of unknown risks eg fire,flood etc.

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. (250 words) Areas which must be taken into account when providing for human resources within the operational plan can be detailed as below Part A - Meet the demands of customers Staff will be required to assist in the front of the house.staff will also be required for the preparation of food.staff will be allocated with cleaning and maintaining the premises. A manager will be appointed to ensure smooth running of business and to care for any customer complaints or requests. Responsibility will also include to ensure stock and supplies are readily available so that we don't run out. Part B - Satisfy marketing strategies Professional individuals that research the market so they advertise our product appropriately. Which means investment needs to be made for a researcher, advertising and marketing. They would then be able to allocate the location for advertising, the price for goods to be sold with the goal to bring customers in. social media managers to take care of promotion on social media. Events planners can be used for social gathering or organise events itself for business promotion Part C - Manage your Staff and any Service Providers through a brief Induction, using a mentoring and/or coaching process to achieve your KPIs Tenured staff can assist in mentoring in coaching and training of new staff. Certified trainers and coaches to ensure training is done properly. Regular meetings to be organised where trainers will host details of KPIs where employees will be involved as well. Furthermore, communication teams can be set up to ensure employees are up to date with policies and procedure or additional training made available....