You will then need to plan physical and human

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You will then need to plan physical and human resourcing and establish associated performance measures andtargets. You may consider the Management Team of BBQ Fun, including team leaders in warehouses, to beresources for the implementation. Use description of their roles in operational planning when assigningresponsibilities.Finally, you will need to propose resourcing and associated operational changes to the Operations GeneralManager, who will, in consultation with the CEO and Board of Directors, provide approval.Resourcing and budget: e-Commerce strategyAfter consulting with the management team at BBQ Fun, you determine:eight online sales and customer service people will be needed to manage increased online customerssince stores are overstaffed, four of the required customer service staff could be sourced from existingemployees at the two storesno current staff have any online customer service skillsBSBMGT517 Manage Operational Plan v1.2 221117Page20of30
management would like to develop people through re-training rather than hire new staff to handle onlinesalessix delivery trucks needed to enable distributione-commerce website will take 50 days to developthree forklifts are neededfour additional warehouse workers are neededsix additional drivers are neededoffice space will need to be reconfigured.The following operational costs are associated with e-commerce business strategy.Costs: e-Commerce strategy (initial investment)ResourcesCostsPlant and equipmentDelivery trucks$50,000 x 6= $300,000Forklifts$10,000 x 3 = $30,000Promotional costs$300,000Website developers$100,000Staff trainingOnline customer service training $3,000 per staff member =$24,000Recruitment costs$30,000Management change leadership trainingfor store managers and team leaders$3,000 each =1 Brisbane store manager, 4 Brisbane team leaders, 1Gold Coast store manager and 3 Gold Coast team leaders x $3,000=$27,000Warehouse and office reconfiguration$50,000Total$861,000In 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)ResourcesCostsAdditional staff:(At $40,000 year average annual salary)4 online staff4 x $40,000 ($160,000) per year for 3 years =$480,0004 warehouse staff4 x $40,000 ($160,000) per year for 3 years =$480,0006 delivery drivers6 x $40,000 = $240,000 per year for 3 years =$720,000Total$1,680,000BSBMGT517 Manage Operational Plan v1.2 221117Page21of30
The following expenses should be incurred in the 2018 financial year and be included in associated financialtargets for spending:Additional staff$400,000Additional marketing$300,000Additional training$51,000Recruitment$30,000Benefits to businessAccording to financial projection prepared by the CFO, the business expects the proposed strategy to beprofitable over three years.Profitability index over three yearsProfitability index (PI) =Present value (PV) of future cash flowsPresent value (PV) of initial investmentPI>1 indicates project should be undertakenFY 2014FY 2015FY 2016Cash flow from operations (minus ongoingoperational costs associated with e-commercesuch as additional staffing)$200,000$500,000$800,000Present value of future cash flows (discountedfuture cash flows with respect to opportunitycost, inflation)$180,000 +$420,000+$600,000 =$1,200,000

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Term
Three
Professor
NoProfessor
Tags
Management, BBQ Fun

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