BBQfun simulated business (BSBMKG502)
BBQfun (simulated business)
Table of contents
Chapter 1 – Business plan (excerpt) 2
Chapter 2 – Organisational chart and management profiles 3
Chapter 3 – Management responsibilities 4
Chapter 4 – Budget summary 5
Chapter 5 – Operational plan 6
Chapter 6 – Description of operations 9
Chapter 7 – Organisational risk register 10
Chapter 8 – Marketing plan 12
Chapter 9 – Sales and marketing policy 24
Chapter 10 – BBQfun privacy policy 26
Chapter 11 – Anti-discrimination policy 30
Chapter 12 – Procurement policy and procedures 31
Chapter 13 – List of preapproved suppliers 36
Chapter 1 – Business plan (excerpt)
From BBQfun business plan FY 2016–2017
About BBQfun
BBQfun was established in 2013 by cu
ent CEO, Pat Mifsud. BBQfun offers an extensive product range, incorporating both local and imported goods.
Since 2014, the increasingly competitive retail environment, technological change, changes in consumer buying patterns and consumer confidence has led to disappointing sales. However, BBQfun intends to return to healthy sales of $11 million in 2016 through building on its organisational strengths, through targeted marketing strategies aimed at key segments and through exploiting marketing opportunities.
Cu
ently, BBQfun operates two stores, one in Brisbane (Kenmore), and one on the Gold Coast.
BBQfun is seeking business and marketing opportunities that could lead to interstate or national expansion if viable and scalable.
Mission
· To provide our customers with great value outdoor lifestyle products and second-to-none customer service.
Vision
· To be, within five years, south east Queensland’s leading outdoor lifestyle retailer.
Values
· Quality
· Customer value
· People: Active encouragement of safety, teamwork, diversity, excellence, innovation and continuous improvement.
Strategic directions
The strategic context in which BBQfun will achieve its mission and vision is through:
· engaging with customers through promotion and market research
· building reputation for quality products and quality customer service
· supporting people to perform via training and performance management
· controlling costs.
· increasing sales revenue and profitability.
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Chapter 2 – Organisational chart and management profiles
BBQfun organisational chart
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Chapter 3 – Management responsibilities
Pat Mifsud, CEO
Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions.
Riz Mehra, Chief Financial Office
Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections.
Kim Chen, Operations General Manage
Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects which affect operations of the organisation as a whole. Kim works with the HR manager to coordinate systems and projects to achieve company-wide synergy.
Les Goodale, Human Resources (HR) Manage
Les is responsible for the productive capacity and welfare of people at BBQfun. With the Operations General Manager, Les works to co-ordinate projects and management systems such as performance management, recruitment, and induction.
Sam Lee, Marketing Manage
Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team.
Pat Sweeney, Manager: Brisbane (Kenmore)
Pat is responsible for the management of all aspects of the Brisbane store.
Alex Mitchell, Manager: Gold Coast
Alex is responsible for the management of all aspects of the Gold Coast store.
Chapter 4 – Budget summary
BBQfun 2016–2017 approved budget by activities to be undertaken
Income:
Sales
$11,000,000
Ba
ecues and related equipment.
Investment income
$1,567,000
Real estate investment income and rental of office space.
Cost of goods sold (COGS)
$5,890,000
Cost of provision of goods, purchase of stock, distribution.
Gross profit
$6,677,000
Gross profit.
Expenses:
Wages, salaries and on costs
$2,567,890
Wages, salaries, superannuation, work cover insurance, payroll tax.
Consultancy fees
$50,000
Project management: WHS management system; change management.
Communication expenses
$42,000
Telephone, ISP costs, IT support.
Marketing
$800,000
Cost of staff travel and associated costs for sales, etc.
Premises expenses
$1,000,000
Rent, electricity, maintenance, cleaning.
Capital expenditure
$120,000
Purchase of new office equipment (90%), vehicles.
Depreciation and amortisation
$177,569
Computers and capital equipment that is depreciated.
Office supplies
$65,068
Printing and stationery, postage, amenities.
Training
$62,187
Sales training: leadership, WHS, ethical/ legal training.
Total expenses
$4,884,714
Net profit
$1,792,286
Net income before tax.
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Chapter 5 – Operational plan
BBQfun Operational plan (summary) FY 2016–2017
Objectives:
Performance measures
Tasks:
1
Engaging with customers through promotion and market research.
· Completion of market/marketing research.
· Completion of customer surveys.
· Completion of reports to identify marketing opportunities.
· Conduct of quarterly surveys on customer satisfaction.
· Evaluation of market and marketing data to determine marketing opportunities.
2
Building reputation for quality products and quality customer service.
· Raise organisational profile by 20%.
· Improve client satisfaction performance by 25%.
· Percentage of
and recognition in sought-after categories in periodic customer surveys.
· Percentage of customers with positive view of organisational responsiveness, innovation, quality, ethics, safety.
· Number of customer complaints.
· Delivery times.
· Number of returned items.
· Audit of supplier quality.
· Regular contact with suppliers.
· Investigate resourcing needs: people, products.
· Fulfil resourcing and distribution needs in accordance with policies and procedures.
· Maintenance of enterprise resource management (ERM), point of sale (POS) and customer relationship management (CRM) systems.
3
Supporting people to perform via training and performance management.
· Numbers of injuries
(Target = 0).
· Numbers of absentees
(Target = < 3% of total hours).
· Anti-discrimination complaints (Target = 0).
· Percentage completion of performance plans and performance management process.
· Numbers of coaching sessions completed.
· Numbers of operational – related training programs completed.
· Research effectiveness of possible incentives for: safe work achievement; healthy lifestyle.
· Engage workers with strategic goals of business and support professional development in line with strategic goals. (Targets to be set by individual managers).
· Management engagement with employees to achieve greater buy in of organisational goals.
· Include explanation of how activities work with organisational strategic goals in all communications to internal personnel.
· Regular coaching.
· Training needs analysis and training (leadership, WHS, ethical/legal training).
· Strategic goals included in induction program.
· Employee incentives for performance in all areas relevant to operational and strategic goals.
4
Reduce direct and indirect costs of operations
· General ledger accounts; financial statements:
· wages
· cost of agent services
· consultancy fees
· wastage and associated expenses.
· Expense target = $4,884,714
· COGS target = $5,890,000
· Renegotiate with suppliers.
· Research potential new suppliers.
· Research new distribution possibilities such as e-commerce/delivery.
· Management engagement with employees to achieve greater employee support of organisational goals.
· Greater use by managers of budgets to encourage restraint.
· Greater focus on budget restraint in management of projects/activities.
· Inventory management through ERM to reduce overstocking and risk associated with storage.
· Incentives (as part of manage
employee performance management and bonus system).
5
Increasing sales revenue
· General ledger accounts; financial statements:
· Revenue target = $11 million
· Profit target = $1,792,286
· Marketing campaigns.
· Sales training for floor staff.
BBQfun (simulated business) Student Workbook
Assessment Materials BBQfun (simulated business)
2nd edition version: 1 E
or! Use the Home tab to apply Unit code and title Char to the text that you want to appear here.
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Chapter 6 – Description of operations
Brisbane: Head office
· Location: Kenmore.
· Size: 15,000 square metres (50% warehouse, 50% display area). Warehouse area used at 45% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.
· Employees:
· 30 full time and casual sales and customer service people, check-out staff trained in use of POS (integrated with ERM and CRM software system)
· senior management team XXXXXXXXXXstore manage
· 4 sales team leaders
· 1 delivery truck drive
· 1 warehouse worker.
· Large mezzanine office space (used to be occupied by online retailer, cu
ently subdivided and occupied by management team).
· Loading bay with large capacity (most of area incorporated into customer display area, could be easily and cheaply reconfigured to accommodate extra distribution).
Gold Coast operation
· Location: Robina.
· Size: 12,000 square metres (50% warehouse, 50% display area). Warehouse area used at 50% of capacity, but poorly configured to accommodate heavy increase in distribution traffic.
· Employees:
· 30 full-time and casual sales and customer service people, check-out staff trained in use of POS (integrated with ERM and CRM software system)
· 1 store manage
· 3 sales team leaders
· 1 delivery truck driver
· 1 warehouse worker.
· Large mezzanine open-plan office space with separate access (cu
ently rented out to telemarketing company).
· Lots of spare office space.
· Loading bay with large capacity.
Assessment Materials BBQfun (simulated business)
BSBMKG502 Establish and adjust the marketing mix 2nd edition version: 1
© 2016 Innovation and Business Industry Skills Council Ltd Page 10 of 36
Chapter 7 – Organisational risk registe
BBQfun Risk register FY 2016–2017
Identified risk
Probability
Impact
Cu
ent controls
Future actions
Failure to identify changes in market/external environment and develop appropriate strategies.
Medium
High
· Appropriate insurances held and coverage reviewed annually.
· Managers encouraged and incentivised to follow performance management policy.
· Employee performance plans align