Assessment 1

Task 1-
Part A Written Report

Analysis of Business Plan

Introduction
This report aims to analyse the business plan of WorkChairs. It will analyse the goals and strategies of the organisation and likewise evaluate its
action plan. The report will perform competitor analysis and analyse the marketing approaches.
WorkChairs is a business established in Studio City, California mainly focused on selling ergonomic products. They have a physical shop and
likewise sell their product online as well. The organisation will use only two sales channels but providing quality services through those channels.
The business owners are focused to solve the ongoing problem of the market. Since health problems are increasing due to poor posture and
furniture. WorkChairs aims to solve this problem and also establish a loyal customer base. The organisation also wants to provide information
regarding poor posture and health problems associated with it.
WorkChairs’ mission is to provide affordable and quality products and make their customer happy and healthy.

Action plan  
WorkChairs wants to continue improving and continue educating their customers regarding health problems associated with poor posture and
poor seating arrangements. The current products provided by the company are chairs, computer accessories, document holders, footrests,
lighting, etc. Their main focus is to sell niche products that are not easily available in the market. 

Currently, the Action plan of the organisation are as follows:

a. The organisation wants to keep its growth slow to manage its expenses. Likewise, they want to operate efficiently through organic
growth.
b. WorkChairs will develop a website to sell their product through online medium. Likewise, the website will be the platform to inform the
customers regarding the benefits of using ergonomic products and their health benefits.
c. WorkChairs wants to focus on providing excellent customer service. They want to create a loyal customer base, and retaining customers
will their utmost priority. 
d. WorkChairs will just focus on the niche products that are not available in large stores like Ikea, Costco, etc. Providing niche products will
let the organisation set price accordingly. 
e. Use mainly two different sales channels. They want to sell locally as well as from their website.
Business Goals
Some of the business goals of WorkChairs are as follows:
a. WorkChairs wants to enjoy profit just after six months of operation. They will do so by minimising expenses.
b. WorkChairs wants to have a leading market share in their business. They want to sell the highest number of ergonomic products. The
organisation will evaluate this goal after analysing its customers.
c. WorkChairs aims to place its website among the top five providing ergonomic products. They want to sell large amounts through their
website and track their progress as well. They will likewise analyse the sales of their customers through their website using several
analytical tools.
d. WorkChairs’ goal is to provide affordable and quality products and make their customer happy and healthy. They want to provide a safe
and comfortable working environment for their customers.

Competitor Analysis
As individuals are requiring more time to sit in front of the computers and doing less physical work. Since individuals are facing health problems,
demand for ergonomic products is increasing and the ergonomic industry is also growing rapidly. Consumers are more aware now than ever
regarding ergonomic products. If properly marketed customers are more likely to purchase such products. So, to cater for those customers, lots
of suppliers are starting and the competition is increasing as well.
WorkChairs has to make their products and services unique to get a competitive advantage in their industry. WorkChairs wants to supply their
products mostly to small and large businesses. Currently, the organisation will use only two sales channel but providing quality services through
those channels. The business owners are focused to solve the ongoing problem of the market through their niche products. 
Currently, the niche products of the WorkChairs isn’t easily available to local customers from other sources. So, WorkChairs will just focus on the
niche products that are not available in large stores like Ikea, Costco, etc. Providing niche products will let the organisation set price accordingly.
Likewise, other small stores do not have all the products that WorkChairs sells. Likewise, they do not provide information regarding the health
benefits of ergonomic chairs. 
WorkChairs will face the most competition from the online medium. There are lots of online sellers with various products. But the products do
not mention their health benefits and features properly. 

Financing arrangements or financial targets  

The owners of the company Jake and Lisa Wilson will cover all of the start-up expenses. Likewise, they will keep an extra cash reserve for future
needs. There will be no liabilities of the organisation for the Startup. The total start-up expense will be $3,825 and the organisation will purchase
assets of $8,175. The total funding required for a start-up will amount to $12,000.

At the end of year one, WorkChairs aims to make sales of around $139,554. The annual overall growth rate is estimated to be around 20% but
the industry growth will be around 2.9%. However, different products will have different growth rates over the years. Likewise, the sales for the
second and third year is estimated to be $167,464 and $200,957 respectively. For the first year, the direct cost of sales will be $69,777 and the
total operating cost will be $65,700. WorkChairs estimates to make total profits of $2,854 for the first year. However, the organisation seems to
go on loss in year 2 mostly due to an increase in payroll costs. 
The organisation’s net profit margin seems to be quite low. The overall profit is quite low in comparison to its revenue. In comparison to other
expenses, the payroll expenses of WorkChairs seems to be quite high. The organisation does not have enough profits to expand its business.

Management arrangements and/or personnel requirements  

Jake and Lisa Wilson own WorkChairs and are currently funding all the start-up requirements themselves. There is only one other employee in
the organisation, i.e. Peter Wilson. He is the manager of WorkChairs. The team members of the company have relevant experience in the
furniture industry. Jack Wilson has the most experienced in the ergonomic industry. He will look after the sales and relationship with the
manufacturers. Lisa Wilson has experience of over thirty years in office supplies. She will be looking after the accounting and organisational
aspects. Likewise, Peter Wilson has relevant experience in web development and SEO. He will handle online sales and marketing. Peter will
mostly work part-time. 
Lisa and Jake will not take any salaries until the organisation makes enough sales. Total payroll for year 1 will be around $54,000 and the second
and third year will be $84,000 and $92,000 respectively. 

Marketing approaches 
WorkChairs will have mainly three target markets i.e., home offices, small business and large businesses. The marketing will focus to cater these
three target markets. There are only two approaches to marketing. 
a. Local Marketing strategy: Mostly to increase sales, telephone marketing will be used. Owners will call local businesses to inform them
regarding the ergonomic products and their health benefits. Likewise, contact information will be listed on the yellow pages. Owners will
also join local business groups for networking with individuals from several industries. 
b. Online marketing strategy: WorkChairs will spend some on paid advertising in several search engine. Likewise, they will analyse the
keywords regarding their products and do pay-per-click advertising. WorkChairs will have an affiliate program for other websites to sign
up and earn a 10% commission on sales they refer to the company.

Product/services research and analysis  

The current products provided by the WorkChairs are chairs, computer accessories, document holders, footrests, lighting, etc. Their main focus
is to sell niche products that are not easily available in the market. WorkChairs wants to continue improving and continue educating their
customers regarding health problems associated with poor posture and poor seating arrangements.  Since individuals are facing health
problems, demand for ergonomic products is increasing and the ergonomic industry is also growing rapidly. Consumers are more aware now
than ever regarding ergonomic products. If properly marketed customers are more likely to purchase such products. 
WorkChairs’ products will provide a safe and comfortable working environment for their customers. The organisation needs to constantly
research new products to maintain its niche position in the market. 

Compare strengths and weaknesses of the business plan.

The strength of the business plan is:

a. It has a detailed financial plan including several ratios.
b. It clearly mentions the responsibilities of the member working in the organisation.
c. The organisation performance seems to be way above the industry average. 

The weakness of the business plan is:

a. It does not include pricing strategies. 
b. The marketing approaches is limited especially local marketing strategy.
c. There is no mention of direct competition and it fails to do a comparative analysis of the market.
d. The organisation wants limited growth. However, it is wise to continue growing. 

Conclusion
Overall business plan of WorkChairs seems impressive. It details several aspects of how the organisation will operate in the future. However,
there is some room for improvement as well.
Part B- Business Plan

Business Plan for Fast Track Couriers

Executive Summary
Businesses around the globe have to continuously improve themselves to remain competitive in their industry. Fast Track Couriers is a parcel
delivery company providing its services in Metropolitan Sydney. Fast Track Couriers now aims to improve their services and expand their
business to new areas. 
Fast Track Courier’s vision is to provide low cost, quality service to its customers and maintain the strength and core values of the organisation.
The organisation’s strategic goals are to expand to regional areas of NSW and increase the profitability of the business.  To fulfil such objectives,
Fast Track Couriers plan to install an automatic lift gate on each truck which eliminates the need for two drivers in a vehicle. A single driver can
use the lift gate to load and unload the parcel. So, it also eliminates any chances of injuries due to manual lifting.

Table of Contents

Description of the business

Fast Track Couriers is one of Australia's most notable company mostly delivering medium and large packages. Our organisation mostly delivers
across metropolitan Sydney.  Our organisation provides quality services with the help of our skillful workers. We are operating for 15 years and
we have been conveying the services to organizations and clients. The constant growth and expansion show the organisation's service level. 
Fast Track Couriers embraces continuous improvement and learning. Our organisation is currently aiming to improve our organisational
performance in the future. To achieve the strategic and operational goals of the business, there is a need to make some change in the current
structure and operations of Fast Track Couriers. As change is inevitable in any organisation, our business needs to be ready for the change to
meet its organisational objectives. 

Business Product/Services

Fast Track Couriers delivers medium and large packages across metropolitan Sydney. Fast Track Couriers will expand its services and looking
forward to delivering to regional areas in New South Wales. 
Marketing Activity

Fast Track Couriers’ main target market is businesses of any sizes. The Sales department will contact this business and information about the
services provided by the organisation.  The organisation will take the following marketing approaches. Fast Track will look for several marketing
channels to get in contact with their potential customers. Mostly used channels will be direct sales, telephone, internet listings and mail-outs.  

a.                   Local Marketing strategy: Mostly to increase sales, telephone marketing will be used. The sales department will call local businesses to
inform them regarding the various services provided by the company. Likewise, contact information will be listed on the yellow pages. Likewise,
Administration and the sales manager will also join local business groups for networking with individuals from several industries. 

b.                   Online marketing strategy: Fast Track Couriers will spend some on paid advertising in several search engine. Likewise, they will analyse
the keywords regarding their services and do pay-per-click advertising. Fast Track couriers will have an affiliate program for other websites to
sign up and earn a 10% commission on sales they refer to the company. 

Fast Track Couriers will use competitive pricing methods for its services. Management will analyse the prices of services in the market and
consider the pricing of its main competitors. However, the organisation will differentiate with its quality and timely services. 

Business Operations

Fast Track Couriers has several departments to handle various tasks necessary to provide quality service. The senior management provides
information to junior employees via email. Emails are used for employees working in the office. Whereas, management communicates with
truck drivers via monthly newsletters. The trucks have pre-installed with GPS as it helps drivers to the required location of delivery.  
Likewise, there is also the availability of PDA which informs the drivers regarding their duties and responsibilities. Drivers send data regarding
their duties to the head office which is used to make productivity report.
Initially, it was difficult to teach drivers about the benefits of such a system. They were not willing to learn but eventually, the system is installed
and properly functioning as intended.
The head office regularly communicates with each other to complete business operations. The office employees embrace any change and are
willing to help in the change management process. But, truck drivers resist the change and try to block any change initiative.

Productivity and performance targets for key result areas

The productivity and performance targets for key result areas will be as follows;
i. To expand the business in new areas so that market share increases by 7 %
ii. To increase customer retention by 5% within this year.
iii. To develop a motivated workforce to provide quality services

Financial and non-financial performance measures

i. To increase the total revenue of the organisation by at least 10% within a year.
ii. Over the first three years, repeat clients accounted for a growing part of the revenue.
iii. To increase net profit margin by 5%.

Resource requirements
The required resources by Fast track couriers are listed as follows;
i. Computers
ii. Manuals
iii. GPS
iv. Trucks
v. PDA

Management and Organisational Structure

The company is family-owned, with three members of the family serving on the top Management and overseeing all business activities and
decisions. 
i. Managing Director – responsible for daily operational management decisions
ii. Logistics Manager – responsible for the scheduling of the trucks and drivers
iii. 20 truck drivers
iv. 5 office support employees – responsible for administration, accounts, human resources and sales
Personnel Plan

Head-office employees
The head office employees will be covered by their individual contracts. Their salary will range from $32,000 to $75,000 per annum. The
employees working in head office will get several professional development opportunities. The organisation will regularly analyse employee
performance and find the skills necessary for employee development.  The professional development plan will be customised according to
employee requirements. Currently, the employee is highly engaged and the head office regularly communicates with each other to complete
business operations. The office employees embrace any change and are willing to help in the change management process.

Truck Drivers
 The truck drivers are covered by an award. Their salary will be $45,000. They are heavily unionised so they resist any changes in the
organisation. They do not participate in change management or development programs. Most of the truck drivers are male and prone to injuries
as well. Fast track couriers aim to install safety features mainly lifts in the trucks to avoid any workplace injuries. 

Proposal
Currently, Fast Track Couriers has two drivers for each truck available with the organisation. These drivers help to load and unload the parcels.
Organisation currently has 10 trucks and 20 drivers to deliver the parcels. Due to manual lifting, there is the possibility of workplace injuries.
During the last year, many drivers faced some sort of injury due to heavy lifting. 
Fast Track Couriers plan to install an automatic lift gate on each truck which eliminates the need for two drivers in a vehicle. A single driver can
use the lift gate to load and unload the parcel. So, it also eliminates any chances of injuries due to manual lifting. The automatic liftgate will cost
around $10,000 each. 
Fast Track Couriers will likewise purchase 10 more trucks to expand its business in new areas. The existing drivers will be used to drive the new
trucks in regional areas. The initial cost of purchasing a new truck is $50,000. An additional $10,000 will be used to install an automatic liftgate.
The funding of the project will be done through a bank loan.

Financial background
This financial statement is prepared after an analysis of the prosed strategy of expansion and it will include the expenses associated with the
expansion. The income statement includes sales, cost, cost of operation, payroll costs, loan repayments, etc.  The organisation’s income
statement is given below:

Particulars Amount (year 1) Estimated amount ( year 2)

Sales 17 million dollars 22 million dollars

Cost of sales 11.25 million dollars 12.45 million dollars

Cost of operation 2.2 million dollars 4.4 million dollars

Administrative Cost $300,000 dollars $400,000 dollars

Loan Repayments $100,000 dollars $300,000 dollars

Labour Costs $1.25 million dollars $1.25 million dollars

Total Costs 15.1 million dollars 18.8 million dollars

Net Profit 1.9 million dollars 3.2 million dollars

Physical Resources Plan
For the new project to complete, the organisation will need no human resources. The organisation will use existing drivers to complete the
project. However, the organisation will need to install an automatic liftgate. 20 Automatic liftgate will be necessary. Likewise, training should
also be provided. 

Risk Analysis
Although most of the office staffs embrace change and contribute to implement change in the organisation. Fast Track Couriers’ drivers seem to
resist the change. They do not participate in any change management or development programs. So, it will be difficult to implement the
proposed strategy. As shifting from two drivers to one driver is a huge change. Drivers might protest which will disrupt the supply chain. The
Organisation will have to bear the loss and will also cause loss of reputation. The organisation needs to provide counselling and likewise
incentivise the drivers to implement such huge change. 
The organisation also does not have a strong financial position and it might be difficult to expand to a new location. If the organisation cannot
provide quality services to a new location, it will fail to capture a higher market share in the long run. 

Licensing Requirements
Fast Track Couriers has to take special license to use heavy vehicles like trucks from the Australian government. The truck drivers should also
have their license. The organisation should also consider getting legal document templates such as a Service Agreement and Cancellation Policy.

Conclusion
With the availability of dedicated head office staffs, Fast Track Couriers are likely to have continuous growth over the year. As organisation loss
contract due to its limited coverage in metropolitan Sydney. Fast Track Couriers now plans to expand its business to regional areas through the
addition of new trucks. However, the organisation will have to face resistance. So, it is preferred to provide counselling and likewise incentivise
the truck drivers to implement such a huge change in the organisation. 
Task 2- Monitor Performance

Presentation

Fast Track
Couriers.pptx

Performance Measurement System

Introduction

Performance measurement is essential to maintain the sustainability of the organization. Organisations mostly install performance
measurement system to analyse the progress or result of any policies or programs. Such a system analyses organisational performance as well as
employee performance. Through a performance management system, the organisation can identify its weaknesses and strength. Likewise, they
can formulate plans to minimise those weaknesses. 

Productivity and performance targets for key result areas

The productivity and performance targets for key result areas will be as follows;
i. To expand the business in new areas so that market share increases by 7 %
ii. To increase customer retention by 5% within this year.

Financial and non-financial performance objectives

i. To increase the total revenue of the organisation by at least 10% within a year.
ii. Over the first three years, repeat clients accounted for a growing part of the revenue.
iii.           To develop a motivated workforce to provide quality services
Performance measurement system for Financial performance objectives

Sales key performance indicators (KPI) method.

The sales KPI can be used to measure the sales performance of the company. The sale KPI includes a percentage of the sales team hitting quota,
revenue, average deal size, win rate, and sales funnel leakage, etc. For the analysis of the sales performance of Fast Track Courier, a revenue
evaluation is conducted. The sales revenue for the service company can be obtained by multiplying the number of customers by the average
price of the service.
The revenue of the company can be evaluated using these data.
1. The number of customers. 
2. The average price of the service.

Expansion objective analysis

Time frame:  One year
Benchmarking: Previous business data.
The company expansion can be measured by analyzing the data of growth in sales and profit, increase in the number of customers, expansion in
operational areas, and opening of the new office. The Fast track courier was constraint due to the geographical location due to which it was
losing potential customers. The company wanted to expand its operational reach and attract the potential clients of Newcastle, Wollongong, and
the central west areas. This analysis can be easily done through the detailed analysis of the sales data of the organization.

Review of Variance
In the financial plan, the organisation estimates the sales of 22 million after the implementation of the proposed strategy. Earlier the profit was
around 17 million dollars. There is a rise of around 29% in the total revenue. The organisation aimed to at least increase revenue by 10%. So,
there is a variation of around 19%.

Performance measurement system for Non-Financial Performance Objectives

Fast track couriers aim to develop a motivated workforce by developing quality services. Organisation also wants to achieve maximum customer
satisfaction. The organisation will first evaluate the internal functions and operations through the balanced scorecard method.

Balanced Scorecard Method

It is the performance management system to identify and evaluate the internal operations of the organisation. For this method to be effective,
data collection is absolutely necessary. 
 Financial Perspective
Balanced Scorecard
Broaden Revenue Mix
Minimising Operating
Expenses
Improve Profit for the
shareholders

Business Processes
Customer Perspective
perspective

Understanding Customer Service Excellence

Segments Excellent customer
service Strategy Trusted Business Partner
Improve safety for the
customers and employees
Use appropriate marketing
channels
Provide training to drivers

Learning & Growth

Perspective
Professional development of
employees
Involve junior employees in
decision-making
Align Personal Goals
Increase Employee Productivity
and Skills
Fast Track Couriers was able to achieve most of its objectives in the balance scorecard. Organisation was mainly focused on improving business processes and
likewise providing learning and growth opportunities to the employees. Organisation formulated professional development plan to provide employees lacking
skills with training opportunities. Likewise, the training programs are customised according to need of the customers.

Conclusion
Fast Track Couriers has implemented several key performance indicators to analyse its performance. Organisation has installed several performance
management metrices to analyse the financial and non-financial instruments. Organisation finds out variances while comparing actual performance with key
performance matrices. Likewise, it uses balanced scorecard to evaluate its internal functions.

Performance Management System Testing

Introduction 
Performance Management System has different uses for its different users. Management can use such a system to manage employees and also
to manage organisational performance. Some managers use it to control organisational behaviour. This system guides to fulfil the purpose of the
employees as well as overall organisational purpose. 
A performance management system can help in different stages such as reviewing the past experience, analysing of options available, and
evaluating the current progress. It uses past data and key performance indicators to analyse current performance. 

Fast Track Courier’s Business operations

Fast Track Couriers has several departments to handle various tasks necessary to provide quality service. The senior management provides
information to junior employees via email. Emails are used for employees working in the office. Whereas, management communicates with
truck drivers via monthly newsletters. The trucks have pre-installed with GPS as it helps drivers to the required location of delivery. Likewise,
there is also the availability of PDA which informs the drivers regarding their duties and responsibilities. Drivers send data regarding their duties
to the head office which is used to make productivity report. Initially, it was difficult to teach drivers about the benefits of such a system. They
were not willing to learn but eventually, the system is installed and properly functioning as intended.

The head office regularly communicates with each other to complete business operations. The office employees embrace any change and are
willing to help in the change management process. But, truck drivers resist the change and try to block any change initiative.
Performance Measurement Report
Fast Track Courier’s employee has to develop several reports on a regular basis. Some of the reports include a status report, progress report,
forecasting report, Trend report, variance report etc.

a. Variance Report: Fast Track Couriers accepts 5% of the variance while comparing their actual performance with planned objectives. Each
department should make a variance report every month comparing the performance. If there are significant deviations that can be seen
in the report, then appropriate action should be taken. Likewise, immediate supervisors should also be informed regarding the variance.  
So, the Variance report should be formulated each month. The report should be submitted to the managing director. The benchmarks to
measure variance is the planned objectives. 
b. Status Report: This report is mostly useful for knowing the current status of any project. It details the current status of the project. For
example, a timeline of the project, resources used, resources available, quality, cost, etc. 
If any project is initiated, the status report is formulated each month. The report should be submitted to the managing director.
Likewise, the organisation analyses the current status with the initial project plan and its timelines.
c. Progress Report: Progress Report mentions how far the project is completed from its initiation. Likewise, progress is calculated or
reported comparing with the last report as well. All the department needs the progress report to analyse the development of the
project.
c. Forecasting Report: Forecasting Report mentions how the organisation will perform in future. It predicts the future demand and the
resources available to fulfil the demand. Likewise, it also predicts the expected status of any project in the future. 
Different departments use this report to track resources and properly utilise them. Management makes plans to improve if any
forecasting shows chances of poor performance. It is prepared every six months. 
e. Trend Report: Fast Track Couriers also prepares Trend Report in a Six months interval. The senior management utilises the information
available in the trend report. 
Trend Report mainly analyses the external environment of the organisation. It explains the industry trends and how they will impact our
organisation. If the external environment is not appropriate, then the organisation has to formulate risk management techniques to
manage those risks. 
f. Productivity Report: The truck drivers of Fast track couriers provide data regarding details of each delivery and other relevant
information to the head office. The administrative manager collects the data and develops it into a productivity report. 
A productivity report is developed every week. And logistics manager and administrative manager utilise it to analyse employee and
organisational performance. 

So, Fast Track Couriers formulates several reports to measure organisational performance. The reports are prepared at different intervals to find
out the current progress and status. 
System failure or variance to be reported

Any variance or problems in the supply chain is immediately reported to the immediate supervisor. Truck drivers will have to report to the
logistics manager whereas office managers will have to report it to the Managing director. Fast Track Couriers accepts 5% of the variance while
comparing their actual performance with planned objectives. Each department should make a variance report every month comparing the
performance. If there are significant deviations that can be seen in the report, then appropriate action should be taken. Likewise, immediate
supervisors should also be informed regarding the variance. So, the Variance report should be formulated each month. The report should be
submitted to the managing director. The benchmarks to measure variance is the planned objectives. 

Performance reviews
All the employee’s performance will be reviewed at least twice a year. The supervisors will have to review the employee’s performance working
under them. The review will be based on the employees can perform according to their job description and organisational expectations. The
supervisors will fill up the performance review forms to analyse the performance. Through the review, the training and development needs of
the staff members will be identified.

Interim Reviews
Fast track Couriers will also take interim reviews if the management feels the performance of a certain employee is not satisfactory. The
complaints, observation and other reporting mechanisms can be the basis for such interim reviews. If the employee is found to be careless in
their duties, management will initiate a performance improvement process or punish the individual according to their offence. 

Responsibilities
The human resource officer as well as the immediate supervisor has the power to develop goals and key performance indicators for employees.
The supervisors will have to review the employee’s performance working under them. Likewise, the human resource manager has to provide the
necessary resources to manage the employee’s performance.

Conclusion
Fast track couriers have an effective performance management system in their organisation. The performance management system is likely to
detect the weakness of the organisation and it will help to manage the performance of the employees as well. Through such a performance
management system, it is likely that organisational performance will improve as well. 
Task 3: Respond to performance data

Question 1.

Required action to improve productivity by at least 10%

Area Required Action

Time (B&A Warehouse wants to reduce average order processing time from 80 minutes to 72 minutes)
Average Order The organisation should provide training to the employees regarding reducing order processing time.
Processing Time (Corrective Action)
The warehouse should install quality software that reduces monotonous work and reduces processing time.
(Preventive action)

Cost (B&A Warehouse wants to reduce the average cost to process an order from 200 dollars to 180 dollars)
Average Cost to Process an Investment in software can reduce the average cost in the long run. (Preventive action)
order. Increase capacity within the storage. (Preventive action)

The organisation should provide training to the employees regarding reducing order cost. (Corrective Action)

Quality (B&A Warehouse wants to reduce error rate from 10% to less than 1%)

Error Rate
The organisation should provide training to the employees regarding the error rate. The employees should
double-check each order and ensure correct items are dispatched from the warehouse.  (Interim Action) 

The organisation should analyse the error rate in the industry and set a realistic target that can be met by the
employees. (Adaptive Action)
Reduce the handling and touches of the items. Streamline the process after analysing the industry’s best
practices. (Preventive action)

Production (B&A Warehouse wants to increase the average number of orders processed per day from 50 orders to 55
 Average numbers of orders orders) 
processed per day. 
The organisation should provide training to the employees regarding reducing order processing time and
increasing average orders processed per day. (Corrective Action)
The warehouse should install quality software that reduces monotonous work and reduces processing time and
increasing average orders processed per day. (Preventive action)

Question 2

Analysis of Performance against planned Objectives

B&A Warehouse has developed a balanced scorecard to measure departmental performance. The balanced scorecards include the Key
performance area and Key performance indicators for each role. However, these KPIs and goals are not clearly developed. 20% of employees are
unaware of the expectation of the management. Likewise, KPIs do not provide clear expectations. It does not mention when the goals need to
be achieved and how. 
The warehouse was also not able to achieve its operational plan for the last year. The absenteeism rate was higher than expected. The
organisation estimated an absenteeism rate of 3% whereas the rate turned out to be 3.9%. Likewise, the actual turnover rate also increased
while comparing with the target. The actual turnover rate was 9.2% whereas the target turnover rate was around 8%. This means more
employees left the job. The organisation had to recruit new employees and provide them training to be familiar with the warehouse
management system and overall working system. New employees require intense coaching and support from their seniors. 
Similarly, the employee engagement rate was also not as expected. There was a 2% deviation in the employee engagement rate. Balanced
Scorecard expected it to be 85% whereas it turned out be only 83%. This means employees are less passionate about their work than expected.
So, employees do not put much effort to increase productivity and increase service level. 
Likewise, fewer employees attended training than expected. The Organisation expected 45 employees to attend the training while only 32
employees participated in the training programs. Employees are not willing to improve themselves. However, long service leave liability and
annual leave liability were lower than the expected amount.
The trend report shows that in the month where absenteeism was high, the number of orders processed massively declined. Also, where the
absenteeism rate is low, productivity and the number of orders process increased. This shows that absenteeism massively affects the
productivity of the organisation. The organisation should develop a clear attendance policy. Also, management should create a stress-less work
environment. Employees are less likely to be absent if they work in a good working environment.

Areas of Non-performance
Some of the Areas of Non-performance are as follows:
a. B&A warehouse employee’s KPI’s do not align with the organisational goals.
b. The KPIs are not SMART i.e., specific, measurable, achievable, realistic and time-bound. Employees are unaware of when and how the
KPIs can be achieved. 
c. Employees do not want to attend the training sessions
d. The warehouse did not achieve its operations goals for the year despite the performance ratings of half of the employees was above
expectations. Shows the flaw in the performance rating system or flaw in the formulation of operational goals.

Report on System Failures

The analysis of performance against target objectives shows that the organisation could not meet most of its KPIs. B&A Warehouse had
developed a balanced scorecard to measure departmental performance. The balanced scorecards include the Key performance area and Key
performance indicators for each role. However, these KPIs and goals are not developed.  20% of employees are unaware of the expectation of
the management. Likewise, KPIs do not provide clear expectations. It does not mention when the goals need to be achieved and how. 
The organisation is unable to motivate employees to join the training sessions. This has harmed the organisational performance as the
warehouse did not achieve its operations goals for the year despite the performance ratings of half of the employees was above expectations.
Shows the flaw in the performance rating system or flaw in the formulation of operational goals.

Failure in communication, planning reporting and training

The balanced scorecard to measure departmental performance is not properly communicated to the employees. The balanced scorecards
include the Key performance area and Key performance indicators for each role. However, these KPIs and goals are not developed. 20% of
employees are unaware of the expectation of the management. So, there is a lack of communication among the management and employees.
Likewise, KPIs do not provide clear expectations. It does not mention when the goals need to be achieved and how. 
KPIs are also not properly planned. The KPIs are not SMART i.e., specific, measurable, achievable, realistic and time-bound. Employees are
unaware of when and how the KPIs can be achieved. Likewise, B&A warehouse employee’s KPI’s do not align with the organisational goals.  
The reporting system also does not seem to work properly. The organisational performance of the warehouse did not achieve its operations
goals for the year despite the performance ratings of half of the employees was above expectations. This shows the flaw in the performance
rating system or flaw in the formulation of operational goals.
Likewise, fewer employees attended training than expected. The organisation expected 45 employees to attend the training while only 32
employees participated in the training programs. Employees are not willing to improve themselves. The organisation is unable to motivate
employees to join the training sessions.
Reviewing performance indicators and suggestions

B&A warehouse needs to formulate a clear policy to set out the key performance indicators. They should at first communicate with the relevant
stakeholders before formulating any performance indicators. Likewise, the KPIs should be realistic and achievable. It should mention when the
KPIs need to be achieved. The organisation does not seem to work on plans to achieve its KPIs target. Rather they just set the target and let it
rest, instead of analysing progress.
For example; Organisation needs to organise a proper survey to estimate the employee engagement rate. Likewise, Target should be set
according to the results of those surveys. Since improvement in employee engagement can reduce absenteeism and turnover rate. Management
should formulate plans to increase employee engagement and achieve the target goals.

The current key performance indicators are not sustainable. It does not truly show the organisation’s true position. For example-performance
ratings shows exceptional performance whereas overall operational goals results were poor. So, proper communication is needed to develop the
key performance indicators and proper reporting must be done regularly.

Question 3 

Performance Improvement strategies

 B&A warehouse has to massively improve its performance to achieve its key performance indicators. At first, it must improve its process to
develop KPIs. Some of the performance improvement strategies are as follows:
a. The management should conduct a review on a regular basis. They can prepare a status report as well as a progress report.
b. They should at first communicate with the relevant stakeholders before formulating any performance indicators. 
c. They should develop policies to manage underperformance. 
d. They should motivate employees to take coaching and training sessions. 
e. Involve team members in different decision-making activities.
f. Clarify expectations of management from the employees. 
g. Develop a healthy and stress-free work environment. 

Redefining Performance Measures

B&A warehouse needs to formulate a clear policy to set out the key performance indicators. The performance measures of the employee
performance should align with the organisational goals. 
 For example; Organisation needs to organise a proper survey to estimate the employee engagement rate. Likewise, Target should be set
according to the results of those surveys. They should at first communicate with the relevant stakeholders before formulating any performance
indicators. Likewise, the KPIs should be realistic and achievable.

Training and development strategy

The training and development strategy for B&A employees are as follows:
a. Analyse the needs and goals of the employees.
b. Identify the skills gap. i.e., Gap between skills needed to achieve the employee’s goals and the employee’s current skill level.
c. Prioritise the training needs: Some employees might need training immediately while some can wait. Likewise, the intensity of the
training also varies according to the skill level of the employee.
d. Plan and deliver the training. Proper planning must be done regarding training methods and timelines for the training to be effective.  

Development needs of individuals and teams

Some of the development needs of teams and individuals are as follows:

a. Warehouse supervisors are all juniors, so they require coaching to do their work properly. Likewise, they also need support from the
Warehouse manager. 
b. Some employees do not have a forklift license. So, the organisation should help those employees to get their licenses.
c. Management should learn to develop key performance indicators. They can take online courses. 
d. Improve attendance through coaching non-performance and implementing flexible training.
e. Organise team-building activities to increase collaborations of the team members.

Development plan

Learning Activity L&D Goals How / Resources Required When Responsibility

Instructor led training It will teach staffs about Organisation can Human resources- i.e.
the importance of new hire experts to hiring expert First two months
technology in the teach new of upcoming Human resource
organisation and how it technology and Training material costs fiscal year manager
can help in their create
professional development customised test
to know learning
outcomes

Time management Employees will learn to To enrol Buying time In the third
skills properly manage time to employees in management courses month of the Administration
improve organisational mini online from site like Udemy year manager
productivity and courses from
employee’s work-life sites like Udemy.
balance. However, there
will be no
interaction with
the trainer
Effective leadership Warehouse supervisors
training can take lead and fulfill Hiring experts to External experts and 2-month training Learning &
future needs in the senior teach about small training session from 7-8th month development
management. Employee effective with CEO of the upcoming manager
will learn new Learning leadership fiscal year
management system and
help to provide guidance
when necessary. Employee
will also learn how to
behave as a leader.

Question 4
Strategy for reviewing system processes

Introduction
The warehouse management system should be regularly reviewed to ensure it is effective and helps in increasing the productivity of the
organisation. Regular analysis of the system ensures, the organisation uses fewer resources to complete its operations. 

System/processes review strategy

a. Identify and map out current processes and system: B&A toy warehouse will identify the current processes and their effectiveness. It will
include the list of roles and responsibilities, skills level, etc. The individuals involved in the processes will be interviewed. Likewise, the
efficiency of the WMS will also be analysed.
b. Communicate with stakeholders: All the relevant stakeholders should be consulted regarding the current system and processes including
customers. The customers will provide a viewpoint that management might not be familiar with. The system requirements should also
be discussed.
c. Design improvement plan: The improvement plan should be designed after reviewing the weakness and strength of the current system.
Likewise, suggestions from the stakeholders should also be considered. The improvement plan must have realistic and measurable goals.
d. Test new technology that might fit the organisation: If there is a need to upgrade the current system, then the organisation can lookout
for new technology that might help the organisation. Such as ERP software can help in inventory management as well as human
resource management. 

Timeframes
B&A Warehouse will analyse the system efficiency once a year. An appropriate review process will be conducted by the administrative
department.

Meetings
The meetings should include all the relevant stakeholders. 

Survey forms
The organisation will develop survey forms to analyse system processes and their effectiveness.
Describe how the implementation of your strategy would lead to continuous improvement.

Some of the benefits of proper implementation of this strategy are as follows:

a. Able to monitor results: The management can collect data regarding organisational performance and finds results within a short period.
So, organisation can take prompt actions if needed. They can quickly find weaknesses and formulate strategies to minimise their
impacts. 
b. Communicate effectively: The management can monitor activities and provide suggestions to their junior. There is regular
communication among the team members as well. Team members can learn from each other so it helps in continuous improvement.
c. Reduces Silo mentality: Most members of one department are unwilling to share information with others. Improved management
system makes information readily available for each team members.
d. Manages risk and budget: Such a system helps in the proper management of the resources. Likewise analyses any deviations in the
budget which helps to reduce organisational risk.