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Operational Plan
Operational planning is an outline of goals and objectives that a company
creates in order to reach those goals. It contains an elaborate document
containing responsibilities that the team members need to follow to
understand and achieve those goals (Towbin et.al. 2018). The key elements
of an operational plan that the organization crafts include a clearly defined
vision or goal of the organization. This is followed by breaking up the smaller
goals and assigning team members, budget and resources to be used to
implement the plan. After the plan is successfully implemented, regular
reports have to be collected to monitor how the plan is working. Finally, the
plan is refined if necessary to attain the desired goals. In this paper, an
operational plan will be developed focusing on sales in the food and
beverage industry which will include a contingency plan for disruptions as
well.
Goal
Target
Strategy
Tactics
Due date
The first goal of the
industry will be to increase The target for the sales of packaged foods that include Demand and supply trends of the previous
years will be obtained and Advertisemen
t through social media platforms will increase The due date for achieving the set goals is by
the sales of packaged foods. The
increase in
sales of beverages
including soft drinks
and energy drinks is another goal that will be achieved.
instant noodles and chips is an increase in sales by 15 percent than the last year.
The sales target for beverages including soft
drinks and energy drinks will be
an increase by 10 percent than the last year.
The target audience will include teenagers, the target will be set. Sales promotion, advertising, and merchandising
will be used to attract customers. Sales promotion will aid in the increase of sales by stimulating consumption and purchasing of goods (Familmaleki Aghighi and sales. The target customers can scroll through those
platforms and get instant information about new launches and discounts (Fadhilah 2020). Sales promotion tactics include
food coupons,
discounts, and
offers, for instance, buy 2 get one free.
the end of
December
2022.
college students and working professionals
.
Hamidi 2015).
Every business requires formulating a contingency plan along with an
operational plan for different work operations in an industry. Catastrophic
disruptions can be dealt with if the industry has a contingency plan
formulated before the operational plan is implemented (Obrenovic 2020).
The food and beverage industry is dynamic in nature and disruptions often
occur in the supply chain of the industry. External Environmental Factors like
pandemics can also lead to disruptions in sales (Chowdhury et.al 2020). The
contingency plan is prepared and provided in the table below.
Risk
Probability
Preparation
Response
Reduction in sales due to pandemics. Due to the Covid-19 pandemic, There is a high probability of sales plunging due to the health The sales of packaged goods can be shifted online. Websites can be created The website will be available for operation as soon as health restrictions are
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health restrictions have
been imposed. The consumers cannot physically shop for groceries and foods items which might bring down the sales.
restrictions. Consumers will refrain from physically visiting the stores in fear of contracting the virus.
beforehand to cater to the consumers through online delivery. Collaboration with efficient delivery partners
can be undertaken to deliver perishable goods
that can be delivered within a short span of time.
strictly imposed.
Delivery partners will be contacted as soon as the websites are ready to operate.
The goals for the organization will be articulated. Most of the sales
goals involve revenue maximization. Another goal may be to increase
sales volume and cater to more consumers and target a wider area.
The most important of the goals will be selected and focused on.
The market trends will be analyzed to determine the strategies
accordingly. The demand and supply data will be collected and the
sales goals will be formed. The target audience of the industry will be
selected. Fast foods and soft drinks are mostly consumed by teens and
children as well as young adults. Instant food items are mostly
consumed by office-goers and college students. These are the target
audiences for the industry and sales improvement tactics will be
targeted on these customers.
Advertising and sales promotion tactics will be used to promote the
products. New launches will be advertised through social media
platforms that will engage the targeted audience. Social media can aid
to increase sales as individuals are always scrolling through social
media platforms and they can get the notification about new products
or discounts almost instantly.
A team will be arranged to manage the sales operation. The team will
be in charge of collecting reports on the performance of certain
products in the market and revising the strategies accordingly to
improve the sales of goods that are facing lags. A budget will be
formulated that needs to be allocated for the plan. The budget will
cover the salaries of the employees assigned to the team, the
advertisement costs, and miscellaneous.
After the budget allocation is completed, the plan will be implemented.
The first step will be to identify the areas that need to be monitored. Certain
areas in the plan that might need monitoring are quality of the product,
cutting costs, improvement of employee efficiency, and customer
satisfaction. For measuring the performance, it is essential to identify the
key indicators of progress that will aid to take action and review the plan
accordingly (Hulthén Näslund and Norrman 2016). The indicators are lag
indicators and lead indicators. The next step will be the comparison of the
actual performance and the planned performance. The two main measures
are demand-related measures and supply-related measures. Data will be
collected by the team assigned for the operation on the demand and supply
of the items in the market and will be compared with the forecasts done for
the year for accuracy. In the same way, supply data and forecasted data will
be compared to measure the accuracy. The plan will be reviewed and
changes in the plan will be made to cover up variances that might occur in
the data. The monitoring of the performance will be done with the help of
charts and histograms. The sales of food and beverage items can be
monitored through a run chart that can measure the changes in sales
weekly. A histogram will be used to measure the number of complaints
received from consumers on certain food items.
Contingency Plan
It is essential to be clear with the communication of strategies with the team
members as miscommunications might occur causing hindrances in the
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operation of the plan. At the time of communicating strategies to the team,
the main objectives and goals have to be focused on (Mcguire 2020). A
visual presentation will be effective to deliver the strategies and make
communication easier and more effective. The strategies to be undertaken
can be presented in the form of slides and bullet lists while communicating
them to the team members (Kernbach Eppler and Bresciani 2015). Graphs
and charts will be used to provide an idea about the data collected on the
previous year’s sales and the market conditions. This will enable the team to
understand the scenario and act accordingly. Any disparities that might
occur in the sales data, strategies can be revised after consulting with the
team. After the visual presentation, feedback will be taken from the team
members and their insights on the chosen strategy measures will be
considered. The plan will be revised with the inputs of the team members
and the strategic plan will be developed and implemented.
Areas of underperformance include failure to listen to consumers' complaints
on products being sold, a conflict between team members that reduces the
efficiency of the team as a whole. An underperforming member can also lead
to disruptions. To combat the underperformances that might occur, certain
actions might be taken that include adaptive action, corrective action, or
preventive action. An adaptive action is taken when the environment of the
operational plan changes or the performance standards do not meet the
objectives. A corrective action plan is taken to remove any influences that
might disrupt the operational plan. To increase the efficiency of the team
members, performance gaps have to be addressed (Behar n.d.). Appropriate
training, coaching, and counseling will be done to improve the employee's
efficiency if the worker shows signs of underperformance.
Conclusion
An operational plan on sales has been developed that will be implemented to
achieve the sales goals of the industry. A contingency plan has also been
included as a backup for possible cases of disruptions that might occur at the
time of implementation. Effective ways of communicating and consulting the
strategies to the team members have been addressed. Areas of
underperformance have been identified and possible measures to combat
them have been recommended.
References
Behar, N., n.d. How to Manage Underperforming Sales Reps. [online]
Salesreadinessgroup.com.
Available
at:
<https://www.salesreadinessgroup.com/blog/how-to-manage-
underperforming-sales-reps> [Accessed 9 March 2022].
Chowdhury, M., Sarkar, A., Paul, S.K. and Moktadir, M., 2020. A case study on
strategies to deal with the impacts of COVID-19 pandemic in the food and
beverage industry. Operations Management Research, pp.1-13.
Fadhilah, M., 2020. The Influence of Social Media on Sales
Performance. Sustainable Competitive Advantage (SCA), 10(1).
Familmaleki, M., Aghighi, A. and Hamidi, K., 2015. Analyzing the influence of
sales promotion on customer purchasing behavior. International Journal of
Economics & management sciences, 4(4), pp.1-6
Hulthén, H., Näslund, D. and Norrman, A., 2016. Framework for measuring
performance of the sales and operations planning process. International
Journal of Physical Distribution & Logistics Management.
Kernbach, S., Eppler, M.J. and Bresciani, S., 2015. The use of visualization in
the
communication
of
business
strategies:
An
experimental
evaluation. International Journal of Business Communication, 52(2), pp.164-
187.
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