Preliminary approval has been given to amend existing budget and operational

Preliminary approval has been given to amend existing

This preview shows page 11 - 14 out of 71 pages.

Preliminary approval has been given to amend existing budget and operational planning to incorporate this strategy. It is now 30 June 2017 and e-commerce operations are expected to be underway in one year and three months, by 1 October 2018. 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 BBQ Fun, including team leaders in warehouses, to be resources for the implementation. Use description of their roles in operational planning when assigning responsibilities. Finally, you will need to propose resourcing and associated operational changes to the Operations General Manager, who will, in consultation with the CEO and Board of Directors, provide approval. Resourcing and budget: e-Commerce strategy After consulting with the management team at BBQ Fun, 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 BSBMGT517 Manage Operational Plan v1.2 221117 Page 11 of 71
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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 leadership training for store managers and team leaders $3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000 Warehouse and office reconfiguration $50,000 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 BSBMGT517 Manage Operational Plan v1.2 221117 Page 12 of 71
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The following expenses should be incurred in the 2018 financial year and be included in associated financial
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