Explain the importance of risk assessment and analysis in the operational planning process.
You have just retired from a senior management position with a large city organisation and moved to a rural town on a large fresh water lake. The lake is the focus for sports anglers and water sports in the surrounding area. You want to get into a small business in the local area and have noticed that, early every morning, there is a line up of boats and anglers at the local boat ramp.
Your thoughts tell you that each one of these anglers and boaties requires bait and would appreciate a hot drink and a bite to eat, such as a bacon and egg roll. The boat ramp is located on the perimeter of the local industrial estate and you have noted that there in no other food outlet within the estate. In other words you see a business opportunity.
Your preliminary research reinforces your initial thoughts. You can now see that the establishment of a fresh bait/fast food business is feasible and proceed to set yourself some strategic objectives for the next three years. You now need to develop an operational plan.
List and describe the main areas of the business you will need to focus on in developing your operational plan giving examples of how each of these main areas will relate to the potential business outlined in the case study. (250 words)
Organisations are becoming increasingly conscious of production cost savings. With the increasing cost of labour, organisations now see the need to include appropriate smaller targets as Key Performance Indicators (KPI’s) within larger Key Result Areas (KRA’s). Explain the importance of the establishment of KRA’s and KPI’s in the development of the operational plan.
In your explanation list three (3) important targets to satisfy the key result area for cost savings for the business mentioned in the case study. How would you would monitor performance to the targets to ensure they are achieved. (250 words)
Many believe that few business owners or managers are challenging what is in their operational plans. They overlook assumptions made when assessing the impact of risks. If these assumptions prove inaccurate, the damage to the business will be great, particularly if strategies to limit the consequences of risk are not included as part of the operational plan.
Comment on the truth of this statement. Explain the importance of risk assessment and analysis in the operational planning process. Include two examples of potential risk in the establishment of the fresh bait/fast food business in the case study and how these risks might be minimised. (250 words)
The management of capacity and the availability of human resources within the business is key to the ability to:
- meet the demands of customers, and
- satisfy marketing strategies.
Referring to the business mentioned in the case study, List and then Describe three (3) areas which must be taken into account when providing for human resources within the operational plan. (250 words)