DEVELOP AND IMPLEMENT A BUSINESS PLAN – BSBMGT617

 

 

Task 1: Develop business plan

Part A – Fast Track Couriers

Business Plan

 

Executive summary

The Fast Track Couriers are developing the business plan with the goal of the next three years to develop and expand delivery routes to the NSW region, and adopt a new business plan to grow the profitability and size of the business.

Introduction

Background of the business

Fast Track Couriers is a delivery company specializing in the Sydney metropolitan area, with a reputation and a stable client base. FTC’s customers are also loyal ones, repeat using services from the business. The services that businesses provide are value for money and reliability.

Business products and services

Businesses charge for medium and large size packages, receiving shipping from small and medium business customers

Marketing activity

Marketing activities of the business include direct sales through telephone, internet listing and email. At the same time, keep in touch with customers via phone to receive feedback about satisfaction with the service.

Business operations

The retention rate for loyal customers is quite high with 87%. The business will expand the size and target to aim and achieve higher in the next 3 years with higher profits and higher reach to customers.

Productivity and performance target

Firstly, in the next 12 months, FTC will start to deliver to regional NSW, which is wider and larger area comparing to the recent area Sydney metropolitan.

Reach 30% of customer in the new region

Have 25% of loyalty customers in the new region

With the new delivery route, the business aims to increase 40% sale in the next 3 years

Increase 20% sale in the first year

Increase delivery productivity to 30%

Financial and nonfinancial performance measures

According to the financial stats provided, the current sales is $17 million, after 1 year, the new sale should be $22 million. Hence, the estimated net profit is also aimed to achieve $3.2 million, compared to current net profit $1.9 million. There are some costs will increase according to the change of the business plan: loan repayments, operating costs, administrative cost and labor cost.

Detail resource requirements (HR, capital requirement) to achieve business goals

Currently: 20 truck drivers – 10 trucks

With new strategy:

20 truck drivers – 20 trucks

Requires: 10 new trucks with an automatic lift gate = 10 x $60,000 = $600,000

10 existing trucks with an automatic lift gate = 10 x $10,000 = $100,000

Total capital requirement = $700,000

HR requirements:

To implement the strategy, the team 2 people will be separate and work individually. In the future, if the strategy goes well, the company may recruit more manpower.

Management and organizational structure

The organizational structure should be kept the same because the business model needs the presence of operation team and office team. However, with the new change, it is the need for the office staff to recruit manpower to track the PDA; explain the new strategy to the drivers who are used to with working in team of 2 and target to engage them to the work flows of the organization.

Proposal

1^st action: purchase and install the automatic lift gate for all the trucks

2^nd action: inform the drivers about the change and hold a practice class to update the new changes in the company’s strategy

3^rd action: engage the union of the drivers to make sure they are all happy with the new strategy and they are happy to attend the activities of the organization

Goal: Human resources are the key to the success road, therefore, to make sure the new strategy is implemented smoothly, the organization needs invest more on manpower.

Financial background (trading to date and forecast)

In the first year after implementing the new strategy, the business’s estimated income is $22 million and the estimated net profit is $3,2 million

Risk analysis

Risks are always available in term of develop a new business plan (Gachie, 2017; Junior & Carvalho, 2013). The biggest risk in the strategy is the combination of drivers. Because their job is on the street and there is little time in the office to take training courses on new truck equipment, businesses need to add their knowledge and skills to surname. One of the suggestions might be to hire an expert from outside and ride with them on the road to show them how to use the new lifting equipment. In addition, the new car models that businesses buy can also include requirements for professional skills or new updates on the vehicle, so hiring experts to accompany the driver can be a battle. positive strategy. This activity can last for 1 week.

Conclusion

The business plan of the FTC gave an overview of the business plan to scale up the business and increase the revenue of the business. In particular, the specific plan of the business is to install automatic lift gate to increase drivers and reduce heavy work. The business plan also provides estimates of the necessary human resources and key proposal actions to implement the enterprise’s strategy.

 

Communication Strategy

 

Business Plan Development Process

According to researches of Lacroix (2007), Haag (2013) and Alonso-Vazquez (2018) (), the business plan development process mainly includes: Executive summary: this is to briefly introduce the content of the plan. Through the summary, all stakeholders and management board know the purpose of the business in the future Introduction: introduce the background of the business, the products and services that the business is trading Background of the business: sound history of the business, outstanding activities of the business. Business products and services: the products that businesses are trading Marketing activity: how businesses promote their products and services on the market and to partners Business operations: Enterprise main operations. Productivity and performance target: presenting the activities of the business and giving the target to be achieved in a suggested period of time. Financial and nonfinancial performance measures: for business strategies, an enterprise needs a financial statement and listed expenses are necessary for the business Detail resource requirements (HR, capital requirement) to achieve business goals: refers to the organization’s resources to operate business activities. Management and organizational structure: personnel structure of the organization, presenting the human resource structure to plan management activities. Proposal: plans and suggestions for implementing a business strategy Financial background (trading to date and forecast): presents current financial data and gives forecast of future finances if implementing proposed plan Risk analysis: lists the risks that can be encountered during operation and provides solutions Conclusion: summarizes the activities mentioned in the business plan.

 

The business plan includes main stakeholders who are the employees (office staff and truck drivers); the customers and the management team. To summary the key roles in the communication plan, the table below will show the content.

Communication Plan
Who	What	When	How	Understanding
Customer	New delivery area in NSW	Next year	Direct sales, telephone, internet listings and mail-outs	The customer needs to acknowledge that FTC is going to expand the delivery route. Besides, it is essential for other audience to know that FTC is doing delivery service
Office staff	Maintain the current work culture	Now	Cooperate well among the departments	Office staff is working well with each other and creating a healthy workplace. However, they need to work well with operation team – the drivers as well to attract and engage them into the activities of the company
Drivers	Attend in the company’s activities	Now	Impact on the drivers’ mentality that they want private space	The operation of the enterprise can be redesigned in a remote way, that is, radio transmission on trucks. The content of the activity should be designed to suit the work on the drivers’ road because in fact, drivers can hardly participate in activities held at the office of the business.
Managers	Track and supervise, responsible for the new plan	Now	Check, make a list of tasks to follow, list bullet points evaluation to track the progress of the business plan.	Business leaders are responsible for guiding and ensuring employees follow the correct process. They are the ones who direct, plan and supervise the plan’s implementation to ensure the plan is implemented on schedule and accurately.

 

 

 

A Report on Quality Training Business Plan Analysis

 

Executive Summary

This report will briefly evaluate the business plan of Quality Training by comparing the criteria mentioned in the analysis with the ones mentioned in the collected documents.

 

Introduction

The report mentions 9 main contents including the headings outlined in each of the sections below. In general, the analysis will briefly reflect the comparison between the criteria in the references and those mentioned in the given case.

 

Main Contents

 

Business Plan Strengths

Business plan gives out the main contents needed for a standard business plan, including executive summary, introduction, company structure, services and products that the business is doing business, etc (Lacroix, 2007). In general, the basic items are covered and covered in detail, reflecting the correct focus.

 

Business Plan Weaknesses

The market trend item should be presented in bullet points to be similar to the entire business plan. Writing in sentences can make the business plan detailed but also make it difficult for the reader to focus on monitoring.

 

Layout and structure analysis

The basic content is mentioned, the business plan is clearly structured, the headings and subheadings are clearly presented. Overall makes it easy to follow for the reader.

 

Quality of Information analysis

The quality of information presented in the business plan is highly appreciated and easy to understand. The business plan does not need to use complicated words, but instead acts on the readability and convenience of the reader. The business plan has provided the necessary information for the given topics.

Relevance of Information analysis

Relevant information in the business plans such as prices, services, markets is mentioned, which is considered necessary for the manager to have more information needed to serve the strategy planning.

 

Analysis of research regarding competitive market conditions

 

Information about competitors in the market has also been discussed in the business plan. This is essential information in the business plan to help businesses identify competitors in the market (Alonso-Vazquez, 2018).

 

Analysis of information regarding likely success of the business

The Business plan of Quality Training has been very successful in analysing corporate success factors such as market factors and prices. Especially the analysis of the risks facing the business (Lacroix, 2007). Obviously, risk analysis helps businesses know what they are facing to build the appropriate solutions.

 

Performance measures analysis

 

The review of the business plan has been updated with questions to evaluate activities to be achieved during the implementation of the business plan.

 

Relevance of document setup as per stakeholders needs

This content has not been mentioned in the Business Plan Quality Training, but the business plan has mentioned market trends to popularize knowledge needed for stakeholders about the current market that businesses are targeting.

 

Conclusion

In general, the business plan of Quality Training clearly reflects the relevant content, and at the same time provides the necessary and basic items in a standard business plan. Problems are also addressed and effectively addressed such as risk assessment and appropriate solutions. The business plan also uses simple and easy-to-understand words for readers, and presents it clearly with a simple and effective structure.

 

 

 

 

 

Task 2: Monitor Performance

 

 

 

Key Performance Objectives – Fast Track Couriers

1. Reach 30% of customer in the new region 2. Have 25% of loyalty customers in the new region 3. Increase 20% sale in the first year 4. Increase delivery productivity to 30%

 

 

 

Performance Objective Analysis (1)
Performance Objective		Capturing Data		Ways of Measurement
Reach 30% of customer in the new region		30%		Records in computer
Benchmarks To every 10 customers who are contacted, there are 3 customers use the service
Tolerance Levels 25% customer in the new region should be reached in the first year
Reporting Timeframe Update data every week
Key Stakeholders Sale and marketing team
Corrective Actions Plan
Failure/Variance	Way of Reporting		To Whom		When
Processing	Email Hard copy		Sale and marketing manager General manager		On Monday every week
If the expected number of targeted customers is lower	Email		General manager		After analysing the situation when the expected number is lower than estimated

 

 

 

Performance Objective Analysis (2)
Performance Objective		Capturing Data		Ways of Measurement
Have 25% of loyalty customers in the new region		25% loyalty customer		Return rate of customer reflected in company’s record
Benchmarks Customers comeback and use service for 2nd time and more
Tolerance Levels 20% loyalty customers should be reached and targeted in the first year
Reporting Timeframe Update at the end of each month the number of loyalty customer
Key Stakeholders Customer service team Sale and marketing team Delivery team
Corrective Actions Plan
Failure/Variance	Way of Reporting		To Whom		When
Processing	Phone, Email, Meeting		General manager		At the end of each month
If fails	Phone, Email, Meeting		General manager Leaders of departments		At the moment when the number of loyalty customer is not as expected

 

 

Performance Objective Analysis (3)
Performance Objective		Capturing Data		Ways of Measurement
Increase 20% sale in the first year		20% sale		Sale report in the annual sale report
Benchmarks Sale increase 20% compared to last year
Tolerance Levels At least reach 15% sale compared to last year
Reporting Timeframe At the end of the year
Key Stakeholders Sale and marketing team Delivery team Logistic team
Corrective Actions Plan
Failure/Variance	Way of Reporting		To Whom		When
When the sale reaches 10% for the first 6th months	Email		Leaders of relevant departments		After first 6th month
Oversee the sale flows	Email		Leaders of relevant departments		Update monthly
If sale falls below expectation	Email		Leaders of relevant departments		As soon as possible

 

 

 

Performance Objective Analysis (4)
Performance Objective		Capturing Data		Ways of Measurement
Increase delivery productivity to 30%		30% delivery productivity		Follows record of the company
Benchmarks Need to deliver more package as fast as possible
Tolerance Levels At least reach 20% productivity when approaching the new region in Australia
Reporting Timeframe At the end of the year
Key Stakeholders Logistic team
Corrective Actions Plan
Failure/Variance	Way of Reporting		To Whom		When
If the package number falls below expectation	Email		Logistic manager General manager		Right after the tracking data shows that the productivity cannot be reached

 

 

 

 

Assessment Task 3: Respond to performance data

A Report on B&A Performance Data Analysis

 

Executive Summary

 

B&A Toy Warehouse is a typical case in managing business plans and tracking performance. Business process management consists of many factors including measuring factors in production. In particular, the success of an enterprise needs to contribute from human resources

 

Introduction

To analyze the operations of B&A Toy Warehouse, the questions in the article will be answered and built into tables for easy tracking.

 

Main Contents

 

Q1 – Corrective Action Analysis
Area	Type	Required corrective action
Time Average order processing time	Preventive	Speed up the order receipt process Cut down on unnecessary processes
Cost Average cost to process an order	Preventive	Eliminate unimportant expenses
Quality Error rate	Corrective	Check the product carefully Make sure the product-making processes are tested at each stage
Production Average number of orders processed per day	Preventive	Improve the working efficiency of machines Reasonable staffing arrangement in the stages needing processing by human

 

Q2 – Performance Analysis
Objectives	Performance analysis	Non-performing areas
Absenteeism 3%	Actual reach 3.9%	Employees are absent during working hours that are higher than the set target, this needs to reconsider the labor regulations or employee remuneration.
Turnover 8%	Actual 9.2%	Staff turnaround rates are higher, similar to Absenteeism. Employees may be dissatisfied with their job
Employee engagement 85%	Actual 83%	Proportional to turnover rate
Employee attended training sessions 45	Actual 32	Businesses have a hard time engaging with employees

 

 

System Failures Analysis

Overview   Overall, Tony’s employees are having a hard time understanding the strategies Tony wants them to achieve. Actual data shows that Tony’s warehouse management system is having problems

Communication Failures   KPI is not presented clearly according to SMART, thus making instructions not clear, making it difficult for staff to understand and execute. HR team has challenges in proposing the suitable KRA

Planning Failures   The employee’s productivity management method from the beginning seems unreasonable. Human resources are new and lack management experience

Reporting Failures   KPIs do not correspond to the goals of the warehouse, thereby distorting the productivity assessment of each employee. Actual data deviate from the recorded figures

Training Failures   New and inexperienced staff

 

 

Q3 – Performance Indicators Review
Current Performance indicators	Suitability	Changes Required
Absenteeism	Suitable
Turnover	Suitable	Need to add “Reasons (of employee turnover)”
Long service leave liability	No need	Productivity per hour
Annual leave liability	No need	Number of orders processed
Employee engagement	Suitable
Employee attended training sessions	Suitable

 

Performance improvement strategies are recommended for B&A Toy Warehouse:

1. Reconstructing KPIs in accordance with the goal of the warehouse, in which it is necessary to highlight that the KPIs are fo (Ridwan, Harun, An, & Fahmid, 2013)r the employees, the content of the KPIs aims to promote employee productivity (Omsa, Ridwan, & Jayadi, 2017) 2. KPIs should be designed in accordance with the business goals of the warehouse (or company (Bhatti, Awan, & Razaq, 2014), avoiding confusing workers 3. KPIs should be designed briefly, showing objectives, time, and metrics 4. Human resource is a valuable resource that needs to create a safe and healthy working environment for employees to promote the best working spirit of employees.

 

New/updated Key Performance Indicators proposed for the warehouse based on system analysis and organisation requirements

1. Number of orders processed per day 2. Number of absent working day 3. Total time to produce one product 4. Number of extra orders processed per day 5. Number of wastes made during production progress

 

Training and Development Plan
Training and development required	For Whom	Benefits	When	Cost	Review data
Labor safety	All staff	Work according to standards and avoid occupational accidents	Orientation day	$100,000	Employee handbook
Manual machine instruction	Production staff	Understand how to operate machinery in warehouse	On the job training	N/A	Employee handbook
Rights and responsibilities at work	All staff	Understand employee rights and responsibilities for the organization	Orientation day	N/A	Employee handbook
Corporate responsibility to the environment	All staff	Understand the importance of waste reduction and the environmental impact of production	Orientation day	N/A	Employee handbook

 

Q4 – Systems and process reviews strategy for the organisation is below:

Firstly, in the first 3 months, Tony needs continuously supervise the activities of the warehouse includes the presence of the employees and the productivity of the order per day Install safety systems and safety equipment for employees Create employee incentives Rearrange the time of the shifts Reset KPIs system is streamlined, accurate and simpler

 

Advantages of implementing a system and process review strategy for continues improvement[1] are following:

Supervision of employees within the first three months helps managers track employees’ operations. Although the standard of procedure dog, however the reality may be different. Employees who can seriously perform the job can also distract and reduce the productivity. Therefore, the presence of the manager at the warehouse is important so that the employees can seriously do the job. Operation in a warehouse can also be dangerous, so employees should be equipped with occupational safety equipment to work with peace of mind. Clear incentives and penalties are needed to stimulate employee productivity If the employee is absent regularly, it is necessary to review the shift assignment to be more flexible and suitable for the employee. Finally, the simple and easy-to-understand KPIs assessment set makes it easy for reviewers to follow and also helps employees better grasp and perform.

 

Conclusion

The case of B&A Toy Warehouse shows that the productivity assessment process needs to go through many stages and requires the participation of many measuring factors. Including KPIs, KPA and especially need the monitoring and supervision of managers to ensure performance is maintained at the maximum level.