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Case Study The “North Wharf” board of Directors, along with the…
Case Study
The “North Wharf” board of Directors, along with the CEO of the company, have decided to implement an e-commerce strategy that will be used to maintain and grow market share and revenue. This strategy will also ensure that customer satisfaction is as per the company’s strategic directions to:
Provide quality product on time every time.
Address customer concerns/complaints on first contact in a timely and friendly manner.
Ensure sales targets are met or exceeded.
The company has engaged you as an “External Consultant” to manage the operational planning activities that will need to be put in place before the e-commerce strategy can be implemented and the online business can commence.
E-Commerce strategy a
All products will be offered via an online store.
All stock will be stored at existing stores in the different states at no additional cost
The customers will cover delivery costs.
Intellectual property protection.
The website of the company needs to be redeveloped so that it is functional with the online store.
The company also needs to buy the delivery vehicles. Based on the research, the company has decided that one delivery truck will be required for 50 sales a day. The company is expecting to make 500 sales a day. If the trucks are bought, then the company needs to recruit 10 drivers. Another alternative would be to sub-contract the deliveries to independent drivers who would use their trucks.
Following additional resources are for the expansion and to implement this new business strategy:
4 online sales and customer service people are required.
Re-training of managers and team leaders required on implementation of e-commerce.
Two forklifts are required.
2 warehouse staff required.
Office space needs to be reconfigured.
Need new hardware and software.
Existing staff will need to be trained to implement the changes that will occur in the company as none of the employees has previous online retail skills.
KPI’s needs to be set up for the implementation of the e-learning strategy.
Following is the summary of the current human resources at the Melbourne office:
Amendments to existing budgets have been approved. The project must be implemented over the next 12 months.
Employees:
30 full-time and casual sales and customer service people, check-out staff, trained in the use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system
Senior management team (five) + one store manager
Four sales team leaders
One delivery truck driver
One warehouse worker.
Part A : Consultation with HR manager and technology consultant
Your task
You are the External Consultant, and your task is to determine the physical and human resource requirements.
You must review the Case Study and undertake preliminary research on implementing an e-commerce strategy. In doing so, you must consult with the Human Resource Manager and the Technology Consultant. You must record the results of the consultation.
In your consultation with the Human Resource Manager, you identified the following:
The staff requirements for the Warehouse and Online Sales and any additional Customer Services staff members:
2 warehouse staff required – Annual Base Salary = $40,000
Recruit 10 drivers – Annual Base Salary = $ 45,000
Training costs:
2 Additional warehouse staff +1 existing (In house training $3,000)
4 Additional online sales and customer service people (In house training $5,000)
26 existing full-time and casual sales (External Training online retail skills $15,000)
Senior management team (five) + one store manager (External Training online retail skills $15,000)
Four sales team leaders (External Training online retail skills $12,000)
Delivery trucks/forklifts required:
10 x $35,000 =$350,000
2 x $29,000 = $58,000
In consultation with the Technology Consultant, you identified the following:
Office space reconfiguration resources and cost:
Warehouse renovation to install ecommerce workstations (Inhouse labour to relocate shelving units $1,500)
E-commerce website development resources and cost:
Budgeted cost $70,000 (Ref Task 5 Part C)
Software and Hardware requirements:
ecommerce workstations includes’ furniture (5 x $5,000 ea.)
Website development staff required:
Part-time Website development staff required (Budget $45,000)
Part B: Prepare a basic operational plan
Your task
In this part of the assessment task, you are required to develop an Operational Plan after consultation with the Operations General Manager, the CEO and the Board of Directors of the organisation.
The Operational Plan is to be prepared based on the strategic objectives of the organisation as included in the Case Study. Further information on the policies and procedures of the organisation is available on the simulated website. http://careertraining.vetadvisorygroup.com/Links to an external site.
When preparing the operational plan, you will be required to:
Utilise information gathered during Consultation with the Operations General Manager, the CEO and the Board of Directors (2) regarding the Key Performance Indictors (KPI’s) used to measure the performance.
Assign responsibility for each strategy and each task to one or more persons within the organisation.
Determine timelines for completing all strategies.
Part C: Preparing contingency plan
Your task
After consulting with stakeholders, the following risks have been identified:
Significant risks of poor online sales being a new entry into the market.
High risk to the quality of customer service provided as the employees do not have enough experience, and that may lead to a breach of consumer or intellectual property law.
The medium risk with regards to not being able to recruit trained staff.
Low risk of loss of confidential customer information.
Medium risk of overstocking of products.
For each identified risk to the implementation of the Operational Plan, you are required to develop a Contingency Plan.
Part D – Developing proposal for resource requirements
In this part of the assessment task, you are required to prepare a written proposal in a Meeting Minutes form for the resource requirements that are to be presented for approval to the operation’s General Manager.
Your proposal must include the following:
Resources required
Description of the proposed implementation of resourcing
Cost breakdown
Benefits of the resources to the organisation
Approaches used for developing KPI’s
Identified risks and contingency planning
Description of information sources that you used to develop the proposal. (Must include information from task a-c).
At the conclusion of the Meeting Minutes, you are required to seek the General Manager’s approval of the proposal.
Image transcription text
Template 1: Contingency plan Contingency plan Company name:
Person Developing the plan: Name: Position: Risks identified:
Strategies/activities to minimise the risk By when By whom
Image transcription text
Template Meeting Minutes Company Date: Name Attendees
Resources required Description of the proposed implementation
of resourcing Cost breakdown Benefits of the resourc…
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Image transcription text
Approaches used for developing KPI’S Identified risks and
contingency planning Description of information sources that you
used to develop the proposal. (Must include informati…
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