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Operational Plan For A Small Coffee Shop

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Question :

Discuss about the Operational Plan for a Small Coffee Shop ?
 
 

Answer :

Introduction

An operational plan integrates the key components of the overall strategic plan in the achievement of organizational goals. The operational plan helps project managers to access capacity needs, resources utilization, risks and measuring the sustainability of the company in the industry as well as project's achievement (Mir & Pinnington, 2014). The coffee industry is very competitive; this requires shop owners operating in the industry to develop an effective and efficient operational plan to maintain sustainability in the market. The coffee industry sells coffee drinks, beverages, and other food for consumption on the shop premises. The aim of this assignment is developing and implementing an operational plan for running a small coffee shop in the coffee industry.

Development of an Operational Plan for a Coffee Shop

The aim of designing an operational plan for this small coffee shop enhancing efficient use of resources,  apparently determining resources required, minimizing all risks, and maintaining the sustainability of the business targets.

Resource requirements

The cafeteria will recruit new consultants and staff immediately in order the gap in the market gets filled. The hired personnel will be trained to gain new skills of offering coffee service to customers in the best quality. Further, since this is a small shop, it means the premise is financially unstable (Basu, 2014). The operational plan suggests that the store should seek financing and funding from banks in the form of loans. The alternative to ensuring a strong capital base for the coffee shop is obtaining the coffee products on credit from the suppliers.

Key performance indicators

Based on the market response; coffee beverages, pastries, and coffee products are currently selling well in the market. In the next business year, coffee drinks will be the shop's primary product and will be sold in four different sizes. As the customers are demanding french presses and grinders, the store will sell these coffee products in the market especially to the clients who wish to match the quality at their homes (Burke, 2013). Also, the wage cost for the current employees is too low. The shop will offer a salary increment as a percentage of sales and even pay the shopkeepers in commission.

Monitoring Processes

The coffee shop is exposed to various business risks which include; competitive, economic, political, technical, and managerial. This operational plan seeks to mitigate these risks through effective monitoring of business operations to optimize processes. The shop will use the latest technologies to offer services to the customers (Basu, 2014). The management will employ advanced customer services intelligence systems to remain competitive. Also, the business will adhere and comply with government regulations for the coffee industry.

Contingency plans

The shop's business policy is meeting the set targets in the strategic plan. The management has set plan B options and alternative courses of action to address the future demands of the market. First, the management will employ sales workers who would deliver coffee products to people's homes (Kapsali, 2011). Contingently, the management will provide free coffee products delivery to customers home if they purchase beyond a set limit. Also, the shop will use intermediaries as agents to market and sell the businesses products on their behalf.

Communication to Stakeholders

The main stakeholders of this small coffee shop are; the government, customers, suppliers, and employees.

The government

The business seeks to diversify its beverage operations in the market. The government needs to issue a license for the shop so that the firm can sell more products. The new products that need to get licensed are french presses and grinders (Burke, 2013). Once licensed, this will be sufficient approval that the shop has the right to sell both the existing coffee products and the grinders with french presses.

Customers

The customers are another important stakeholder for the coffee shop. The contingent operational plans designed by the business are offering free delivery services and home based services to the clients (Kapsali, 2011. The management will have to negotiate an extra cost with the customers to meet the service. Operating as an itinerant trader will engage many casual salespeople as much as possible.

Suppliers

The coffee shop relies on suppliers of coffee products which deliver them to the store' s premises as at and when required. The management will negotiate credit terms agreement with the suppliers to ensure that the vendor provides products to the shop on credit (Meg Gawler, 2005). The credit repayment arrangements will be approved by the store owner and the manufacturer. Only the store managers will get engaged in following up the delivery mechanisms to the premises.

 

Employees

The most critical asset of the coffee shop is human resources which comprise of the managers, permanent staff, and casual salespeople. As stated in the operational plan part of resource requirements, the workers of the shop are poorly paid. The management will in effect motivate these employees by increasing their wage rates (Burke, 2013). However, the salary increment decision will have to be submitted to the shop owners for approval.

Operational Plan Implementation Strategies

After the development of the business plans within the coffee shop's policies, missions, practices, and procedures, the below are strategies to get implemented by the project manager to achieve the operational plan.

Recruiting, inducting and developing personnel

The management of the coffee shop has the following human resource strategies of realizing the operational plan developed:

  1. Hire more competent and skillful salespeople who will act as itinerant traders under the shop’s jurisdiction.
  2. Carry out an induction program to the newly recruited staff to enable them to understand organizational policies, programs, and workmates.
  • Organize a training and development program and conferences for the new employees to equip them with extra skills of attracting customers.

Acquiring physical resources and services

Physical resources is also another resource requirement needed by the shop to address a larger market (Meg Gawler, 2005). The below are the strategies and policies proposed by the management in acquiring physical resources and services:

  1. Purchasing two salon cars which would be used by the salesmen in delivering coffee products to customers homes as well as providing subsidized transport services.
  2. Invest more resources in technology and technical support to buy office systems and support functions for the shop.
  • Obtain a bank loan to extend the hotel structure, buy television equipment, and attractive chairs to attract as many customers as possible.

Protecting intellectual property

Since the operational plan states that the business will obtain licensing from the government to offer all coffee services, this is accompanied with getting IP rights (Kerzner, 2013). The following strategies will be used:

  1. The hotel will get all license certificates from government authorities such that any other shop is offering the same service without getting registered, they can sue the firm.
  2. The management will conduct out due diligence on the shop's business partners, intermediaries, and suppliers to ensure they have patent rights for doing business.
  • The shop will enforce a concrete contractual agreement with the government for IP rights protection.

Making variations on the plan

Although the operational plan designed is projected to be viable, the actual results may differ with the standard results (Meg Gawler, 2005). The management of the shop has developed the following strategies to get applied if the standard results vary with the actual goals;

  1. If the salespeople are not making enough sales, the store will terminate their service to reduce down the expenses incurred when paying them.
  2. In case the workers realize more sales and the company makes more profits, then the employee's pay will be revised upwards. Salespeople will be paid based on a fixed salary and an additional commission.
  • Avoid giving after sales services of offering free and subsidized transportation services and instead, charge the customers for the service. This reduces the cost of doing business.

Monitoring and Documentation Performance

The management of the coffee shop have developed the following strategies to monitor and document the enterprises' performance in the business environment:

  1. Align and integrate individual salesperson day to day performance with the strategic objectives of the shop.
  2. Establish a focus mood board for employee skills development and learning activity choices.
  • Document personal performance to aid in employee compensation and training and development decisions.

Conclusion

Operational planning plays a significant role in the monitoring and implementation of set strategies by the management. Human, financial, physical, and technological resources are the key components to completing operational plan efficiently. The management must always estimate the project's sustainability, lifespan, and formulate an exit strategy to enhance business planning success.

 

References

Basu, R. (2014). Managing quality in projects: An empirical study. International journal of project management, 32(1), 178-187.

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.

Kapsali, M. (2011). Systems thinking in innovation project management: A match that works. International Journal of Project Management, 29(4), 396-407.

Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Meg Gawler. (2005).  Factors Ensuring Sustainability, Project Design in the context of Project Cycle Management Sourcebook

Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking project management performance and project success. International Journal of Project       Management, 32(2), 202-217.

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