Operational Plan For Canterbury Renovations: Formulating Growth And Profitability Strategy

Contingency Plan

The main focus of the assessment is to formulate an operational plan for the business of Canterbury Renovations, which is a start-up cabinet making business. The business is looking to expand its operations and ensure that appropriate growth is achieved in terms of profitability. As per the vision of the company, the business is looking to expand its operation and ensure that a steady level of profits is generated. The expansion of the business would further be requiring resources both in terms of physical resources and human resources and therefore it is imperative that separate plans needs to be established for such a context as well. The operational plan would further be specifying the timeline which the business is to maintain in order to ensure that efficiency is maintained in the operations. Some of the key aspects which would be covered in the operational plan are listed below:

• Strategies: The business is looking to expand the operations and thereby implement strategies which can ensure that the growth and vision of the company is supported. The business would be looking to implement a proper advertisement plan so that more customers can be attracted to the business and would further look to allocate a proper budget to the same so that efficiency is achieved.
• Performance criteria: The business would be looking to achieve higher sales revenue and profitability so that the operational can be supported properly and would further be looking to attract more customers to the operations.
• Time frames: The time frame which is to be established for the operational plan would be either quarterly, semi-annually or annually based on the target market of the business and the operations the business is looking to achieve.
• Budgets: The business would be utilizing budgets for ensuring that the operations are undertaken in an accurate manner and proper resources are allocated to activities. In addition to this, the budgets would be useful for implementing the plans.
• Responsibilities: The responsibilities for the operational plan would be segregated and appropriately bifurcated among the employees and respective leads so that operational efficiency is achieved and the activities are completed in a timely manner.
• Resources: The business would be requiring resources in terms of human resources, physical resources and financial resources as well in order to properly facilitate the expansion strategies. The business needs to hire new employees and further undertake the costs to train such employees in order to ensure efficiency is maintained in the operations.
• KPIs: The key performance indicator which would be considered is the growth in sales revenue, profitability and efficiency level of the business and these indicators would help the business to monitor the operations.

For the purpose of meeting the needs of the business in terms of workforce requirements, Human resource planning model is followed. A human resource planning model includes aspects such as job description, competency of the employees and also is useful for helping the business understand how it can retain employees (Armstrong and Taylor, 2014). The business would be looking to recruit individuals who have ample knowledge in the field and can adapt to the changing work situation of the business. One of the main responsibilities of the business would be to ensure that the employees are properly trained and their efficiency level is enhanced.

The business would be requiring physical resources as well for expanding the operations and the physical resources of the business can be acquired through tender or contracts given to suppliers so that the costs of acquisition can be well regulated.

The IP requirements which are to be incorporated in the policies of the company so that any case of leakages of trade information or profession’s secrets cannot be misplaced. The company can protect any leakages of vital information to third party from happening by ensuring that every employee of the company signs a confidentiality contract. The business can further protect the same with the help of patents and copyrights and this would further secure the position of the business.

The operational manager of the business would be formulating the plans and for ensuring that the same aligns with the organizational goals, the business would be ensuring that proper consultation is undertake with the CEO, financial manager so that resource allocation can be undertaken in a smooth manner. The consultation would be undertaken in the form of meetings  so that proper feedback can be received as well.

You: Hello everyone, I hope you are all doing ok and the work is getting along fine

Employees: Hello, we are all working perfectly and further adapting to the changes quite well only.

You: That’s good to know. I am calling this meeting to ley you all know that further changes are to be implemented in our organization wherein the business is looking to expand its operations and further achieve a higher margin of profits.

Human Resource Planning Model

Employees: What sort of changes can be expected in terms of the operational plan and whether the job roles which we are currently engaged in, would change?

You: Now, let us consider we are just expanding our operations so that more customers can be served and this would require more resources and therefore we will be hiring employees to cater such needs. In terms of physical resources more materials would now be required and further we are looking to secure our IP as well. The plan is simple, we will expand our operations and productive capacity and thereby look to offer more cabinets to the customers and secondly we will look to improve our supply chain function so that efficiency is achieved in the operations. The additional employees who are hired would be trained of course and further you all would have the option of training as well. I hope you all understand the situation and all aspect of the operational plan.

Employees: Ok the plan is clear to us.

You: The operational plan has two aspect, the productive capacity and supply chain function and I have already shortlisted some of the employees and the leads who will be leading such a function. The resources which is required for such activities would be allocated and a budget would be created so that proper track can be maintained. I would be following up on the plan to ensure that each step is being undertaken in effective manner or not.

You: Hello everyone, I hope you are all doing ok and the work is getting along fine

Employee: Hello, we are all working perfectly and further adapting to the changes quite well only.

You: That’s good to know. I am calling this meeting to ley you all know that further changes are to be implemented in our organization wherein the business is looking to expand its operations and further achieve a higher margin of profits. Further, I would like to take your opinion on the matter and further confirm whether you are fine with the plan

Employee: I am fine with the plan and it is good to see that the company is further looking to expand its operations.

You: I would be assigning the duty of a supervisor and appoint you as a team lead for this project and it would be your role to report regarding any matter of the team directly to me. Further, it will be in your KRA to form different reports so that a level of efficiency can be achieved in the operations of the business.

The operational plan which is developed would be requiring information in relation to market trends so that proper estimation can be made regarding the demand in the market. Further the business would be required to considering the position of the competitors so that efficiency is maintained in the operations. In addition to this, the business would be requiring information for financial goals which are being followed. The information which is collected by the business can be used for better planning and improving the flow of operations. The expansion strategy for the business would help in ensuring that business is able to achieve higher profits.

Physical Resources for Expanding Operations

The business would be looking to enhance the productivity of the business by implementing better training programs and ensuring the employees of the business have the necessary skills in order to make them successful. With the expansion plan, the business would be able to achieve higher rate of profitability and ensure growth in operations.

The areas of underperformance which can be identified is the high operating costs which would significantly reduce the profitability of the business. The business would also be looking to reduce the level of mistakes in the organization and ensure that better quality of the products is maintained.

The business can implement flexible budgeting approach with standard costing protocols so that the costs of operations is properly controlled and further profit margins can be maintained. In addition to this, the business can appoint quality supervisors so that the final product quality is well maintained and this would further attract more customers to the operations of the business.

The changes in operational plan would mainly look to reduce the expenses of the business and achieve a better quality of product so that the needs and expectation of the customers are properly met. In addition to this, the business would be diverting the funds of the business to improve the flow of operations and promoting the products which the business offers to the customers.

The business would be using tools like budgeting and lean producing system so that the costs of operations is properly controlled  In addition to this, the business would be adopting balanced scorecard approach so that competitive advantage can be developed in the market.

An operational plan is formulated so that the organizational goals and objectives are given due priority and activities are set so that proper efficiency and effectiveness is achieved in the overall strategic aim of the business. The operational plan provides a framework which guides the workforce in relation to day to day operations and provides a sense of direction to the employees.

A Gantt chart is a bar chart which is used to illustrate the entire of project schedule and further shows the activities which needs to be undertaken by the business so that the project schedule is maintained. The Gantt chart further prioritizes certain activities and this helps the management execute such activities in a timely manner. The benefit which can be identified in terms of use of Gantt chart is that it helps the management maintain its timeline and ensure that the project is completed within the deadline allocated. A sample Gantt chart is presented below:

A PERT Chart is used to set milestones for the project and ensure that efficiency is achieved in the project. Further the time between two milestones, management can identify the potential obstacles and undertake steps to ensure that the milestones are achieved without any hassle. The main advantage of a PERT Chart is that it allows the managers to evaluate the resources and time required for completing the project in an effective manner.  A sample PERT chart is presented below for better understanding of the project scenario.

Intellectual Property Protection

The documents which are used for preparing the operational plan for a business are appropriately:

• Project Charter: The project charter provides a brief idea regarding the needs of the project and further provides authorization regarding resource allocation for the project.
• Project Management Plan: The project management plan appropriately provides details regarding the project and the plans are formulated on the basis of project Charter formulated by the business.
• Work Breakdown Structure: This is an essential document is a decomposition of the entire project that identifies all the work to be carried out by the project team to meet the project goals.
• Risk Management Plan: The risk management plan appropriately identifies the risks which may be associated with the project and also prioritizes the risks.

From the perspective of legal context, the management also needs to take into consideration the legislations which might affect the operational plan for the business. Some of the legislations which might have an impact on the operational plan are listed below:

• Health and Safety Legislations
• Privacy Legislations
• Australian Consumer Law
• Workplace relations regulations
• Anti-Discrimination and Equal Opportunity Legislation
• Employer Rights and Responsibilities

Equal Opportunity: The equal opportunity regulations which is applicable in Australia states that every individual who is engaged in a business needs to be treated equally and should have ample opportunities presented to perform their work and grow.

Occupational Health and Safety: This regulation is often referred to as WHS or OHS regulations and the same is implemented in every territory of Australia. The regulation makes it clear that the work needs to be performed in a safe manner and further proper working conditions needs to be provided to the employees.

Employer’s Rights and Responsibilities: This legislation appropriately points out the responsibilities of the employers towards his employees and further specifies the rights which the employer have in managing the flow of operations.

Anti-Discrimination: The anti-discrimination legislation was introduced to ensure that all the employees working in an organization is treated in a fair manner irrespective of their caste, creed, race or any disability. This legislation is applicable in terms of better pay, promotions or designation so that fairness is maintained.

Privacy Laws: The privacy laws are formulated so that the consumer’s information are protected and it is the responsibility of the management to ensure the process of the business is appropriately followed.

Copyright: The copyright regulations for the company is imposed so that the intellectual properties of the business can be protected appropriately. Further copyrights helps the business to maintain a level of confidentiality in its approach.

The key purpose for creating an annual budget is to ensure that the revenue and expenses for the period is appropriately forecasted and proper plans are formulated for resource allocation and material procurement. Further the annual budget also helps in control functions of the business as it allows the management to make comparison between the standard set and the actual performance of the company during the period.

The key objectives and purpose of a forecast is to ensure that the future planning for the business is appropriately undertaken and an estimation can be made regarding the future performance of the business and assess whether the business would be able to achieve growth in its operations. Further the business would be able to achieve more efficiency and transparency in terms of future planning with the help of financial forecasts.

The five characteristics which can be identified for a KPI is appropriately listed below in details:

• Simple and Easy to understand.
• Relevant
• Aligned with the goals and objectives of the business.
• Measureable
• Comparable

The three steps which are undertaken for ensuring that the KPIs for the business is properly developed are appropriately listed below in details:

• The first step is to define the KPIs on the basis of the campaign goals and accordingly set the processes.
• The business can further rely on set data points and analysis the points to identify a trend so that the KPIs can be set.
• Another approach for setting the KPIs for the business is to benchmark the close competitors of the company so that their performance indicators can be monitored.

Reference and Bibliography

Armstrong, M., and Taylor, S. 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.

Attia, Y. A., Al-Hamid, A. A., Ibrahim, M. S., Al-Harthi, M. A., Bovera, F., and Elnaggar, A. S. 2014. Productive performance, biochemical and hematological traits of broiler chickens supplemented with propolis, bee pollen, and mannan oligosaccharides continuously or intermittently. Livestock Science, 164, 87-95.

Bently, L., and Sherman, B. 2014. Intellectual property law. Oxford University Press, USA.

Bratton, J., and Gold, J. (2017). Human resource management: theory and practice. Palgrave.

Cox, E. 2015. Coaching and adult learning: Theory and practice. New Directions for Adult and Continuing Education, 2015(148), 27-38.

Hamari, J., Sjöklint, M., and Ukkonen, A. 2016. The sharing economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology, 67(9), 2047-2059.

Hillary, R. (Ed.). 2017. Small and medium-sized enterprises and the environment: business imperatives. Routledge.

Kerzner, H. 2017. Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley and Sons.

Laursen, G. H., and Thorlund, J. 2016. Business analytics for managers: Taking business intelligence beyond reporting. John Wiley and Sons.

Maina, D. K., and Kwasira, J. 2015. Role of human resource planning practices on employee performance in county governments in Kenya: a case of Nakuru county. Int J Econ Commer Manage, 3(5), 1569-1580.

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