ABC Company sells a range of exclusive products across Australia through 1 onlin
ID: 397678 • Letter: A
Question
ABC Company sells a range of exclusive products across Australia through 1 online and 100 retail stores. The organisation is committed to:
Offer innovative product solutions and meet the changing needs of customers
Providing high quality and innovative products and services to customers
Deliver great customer service
Employing professional and enthusiastic staff
Adopting sustainable work practices and provide ‘green’ products
Undertaking continuous improvement processes
The business has a 5 years plan which is to consolidate its position in the market as a lead retailer for ‘green’ and sustainable solutions for high quality exclusive products. To do this, ABC will focus on the following business goals:
Financial stability:
Increase revenue by 15% (compared to the previous 12 months) by the end of the financial year
Maintain annual profit levels of 15% of revenue for all products and services, calculated at the end of each financial year
Reinvest 75% of profit back into the business at the end of each financial year
Market position:
Maintain the number one rating in the annual national industry customer service awards
Launch new high quality exclusive consumer products to meet customer demand, ahead of competitors, within budget and by the agreed deadlines
Right people:
Provide induction training at the commencement of employment to train new employees to be knowledgeable, helpful and enthusiastic
Provide the physical, human and time resources to support an annual professional development program for all ABC employees
Stakeholders include senior management team, retail store manager, sales staff, online store manager, customers and recruitment agency.
Activity
(What is to be done?)
Objective
(Why will we do it?)
Resources
(Where will it be done?)
Procedures
(How will it be done?)
Responsible person
(Who will do it?)
When?
Budget
Revisit sales budgets and develop outlet-by-outlet sales strategies that add onto the national sales strategy.
To increase the sales of the services component of the business by 15% by 30 June
It will be done across the 150 outlets.
Update each outlet’s sales budgets to reflect the increased targets.
Each outlet is to develop a sales strategy to support the new targets.
Outlet managers
30 June
$3,000,000 total and needs to be supported by a business case from each store
Acquire additional resources – video-conferencing equipment.
To facilitate communication between all retail, online and phone outlets and reduce travel time and costs.
Install a multi-channel dedicated video- conferencing facility at each outlet.
Contact ABC IT service and support to arrange for supply and installation.
Allocate costs back to each outlet.
Outlet managers
31 August
$5,000 per outlet
Acquire additional resources – delivery van.
To provide a delivery service and provide brand recognition
Purchase a new van for each outlet and detail it with the marketing logo.
Contact suppliers, obtain quotes and purchase the required delivery van.
Contact sign writers to have marketing decals attached to the vans.
Head office marketing manager
31 July
$50,000 per outlet
Reorganize fixtures and fittings – retail outlet.
To create additional space for installation of demonstration products
It will be done across the 150 retail outlets.
Have plans drawn up for each retail outlet.
Hire local shop fitters and installers for each sales region.
Head office sales manager
Retail outlet managers
30 September
$10,000 per store
Train sales staff to provide after sales product support.
To multi-skill retail product staff and to improve the level of after sales product support
It will be done across all the 150 retail outlets.
Deliver training programs
Retail outlet managers
31 August
In house. Additional resources available but a business case is required.
Maintain full staffing capacity through rapid recruitment to fill vacancies.
To maintain and increase sales capacity by recruiting new staff as soon as existing positions are vacated
Thirteen new full-time sales staff will replace staff vacancies in Sydney, Melbourne and Adelaide CBD stores.
ABC recruitment procedures
Outlet managers
Recruitment agency
31 August
$2,000 recruitment costs per vacant position
Consultation strategy
Stakeholder
Role in the problem
Objective
Consultation method
Senior management plan
Made the decision to increase sales by 15% annually
Keep informed
Feedback session
Email communications
Newsletters
Video conferencing
Outlet manager
Develop an operational plan and implement the plan to increase sales in their outlet
Implement plan
Consult
Staff meetings
Outlet manager meetings via videoconferencing
Interviews
Sales staff
Implementers of the plan to achieve the intended results
Consult
Keep motivated and engaged
Meetings
Feedback sessions
Online and phone outlets
Provide sales not supported through retail outlets
Consult frequently
Video conferencing
Major customers
People who make major purchases of ABC products
Consult
Phone calls
Personal visits
Email communication
Newsletters
Customers
People who make small purchases of ABC products
Obtain feedback
Email communication
Newsletters
Recruitment agency
Involved in recruiting staff
Consult
Meetings
In the event that ABC does not meet these objectives, they have budgeted an additional 5% of training costs to employ a training consultant to provide additional training resources.
a)You work as a retail store manager for ABC Company and your managing director of ABC Company requires you to create an operational plan on January. You must cover below points in your plan:
-resources requirements
-key performance indicators
-monitoring processes
-financial contingency plans
b)Read the issues below. You are required to develop implementation strategies for staff members to follow, ensure they achieve the KPIs.
-The organisation needs to maintain full staffing capacity through rapid recruitment to fill vacancies and there are 13 new sales staff needing to be employed, inducted and trained in the next 2 months.
-acquiring physical resources and services
-the marketing department has provided you with some specifications for the design of the decals for the delivery vans. You need to take this information to a graphic artist and request a design for use on the sides and back of the vans. Before entering into any purchasing agreement, prepare a short briefing document the outlines the intellectual property issues that may be associated with the supply of this design.
-Create an acceptable levels of variation
-Use the KPIs to develop a monitoring process for the implementation of the detailed operational plan.
Activity
(What is to be done?)
Objective
(Why will we do it?)
Resources
(Where will it be done?)
Procedures
(How will it be done?)
Responsible person
(Who will do it?)
When?
Budget
Revisit sales budgets and develop outlet-by-outlet sales strategies that add onto the national sales strategy.
To increase the sales of the services component of the business by 15% by 30 June
It will be done across the 150 outlets.
Update each outlet’s sales budgets to reflect the increased targets.
Each outlet is to develop a sales strategy to support the new targets.
Outlet managers
30 June
$3,000,000 total and needs to be supported by a business case from each store
Acquire additional resources – video-conferencing equipment.
To facilitate communication between all retail, online and phone outlets and reduce travel time and costs.
Install a multi-channel dedicated video- conferencing facility at each outlet.
Contact ABC IT service and support to arrange for supply and installation.
Allocate costs back to each outlet.
Outlet managers
31 August
$5,000 per outlet
Acquire additional resources – delivery van.
To provide a delivery service and provide brand recognition
Purchase a new van for each outlet and detail it with the marketing logo.
Contact suppliers, obtain quotes and purchase the required delivery van.
Contact sign writers to have marketing decals attached to the vans.
Head office marketing manager
31 July
$50,000 per outlet
Reorganize fixtures and fittings – retail outlet.
To create additional space for installation of demonstration products
It will be done across the 150 retail outlets.
Have plans drawn up for each retail outlet.
Hire local shop fitters and installers for each sales region.
Head office sales manager
Retail outlet managers
30 September
$10,000 per store
Train sales staff to provide after sales product support.
To multi-skill retail product staff and to improve the level of after sales product support
It will be done across all the 150 retail outlets.
Deliver training programs
Retail outlet managers
31 August
In house. Additional resources available but a business case is required.
Maintain full staffing capacity through rapid recruitment to fill vacancies.
To maintain and increase sales capacity by recruiting new staff as soon as existing positions are vacated
Thirteen new full-time sales staff will replace staff vacancies in Sydney, Melbourne and Adelaide CBD stores.
ABC recruitment procedures
Outlet managers
Recruitment agency
31 August
$2,000 recruitment costs per vacant position
Explanation / Answer
Answer: a) Operational Plan
As per ABC ompany's goal for the next 5 years to achieve the following:
1) Increase revenue by 15% (compared to the previous 12 months) by the end of the financial year
2) Maintain annual profit levels of 15% of revenue for all products and services, calculated at the end of each financial year
3) Reinvest 75% of profit back into the business at the end of each financial year
4) Maintain the number one rating in the annual national industry customer service awards
5) Launch new high quality exclusive consumer products to meet customer demand, ahead of competitors, within budget and by the agreed deadlines
6) Provide induction training at the commencement of employment to train new employees to be knowledgeable, helpful and enthusiastic.
7) Provide the physical, human and time resources to support an annual professional development program for all ABC employees
Based on the above mentioned goals for next 5 years, the operational plan contains the following highlights
i) Resource planning
ii) KPIs
iii) KPIs and task monitoring system
iv) Financial Contingency Plan
Let's start with Resource Planning-
Resources required are follows:
ii) Following arethe KPI's for achieving the 5 years goal set by Top Managment
1) Sales & Gross Margin- Gross margin / average inventory cost = profit return
2) Average Customer Spend -Total revenue (for a given time period) / number of transactions = average purchase value
3) Stock Turnover Rate- Cost of goods sold / average inventory = inventory turnover (per defined time period)
4) Sell Through Rate- (Number of items sold / beginning inventory quantity) x 100 = sell-through percentage
Using a Excel sheet or programming we can easily track the above mentioned KPIs.