Budgetary Control As A Measure Of Financial Performance Of State

Legislative and Regulatory Context

Discuss about the Budgetary Control As a Measure Of Financial Performance Of State.

The assignment deals with the with the business of BBQ Fun which is engage business of manufacturing products. The business offers its products to the customer through stores. However, the business is currently planning to develop an e-commerce system which can facilitate the management to increase the sales of the product. The company should consider the legal and regulatory framework of cyber security before proceeding towards development of e-commerce website (Hillary, 2017). The privacy of customer’s data and protecting their interest is a vital part of the legislative and regulatory context related to the company.

The policies and procedures of BBQ Fun aims at implementing such process with the e-commerce facility that it helps the overall business and provides simplicity. The policies which can be implemented along with operational plan of the business might relate to better delivery services to the customers, online feedback services to the customers, refund policies in case of any mistakes on the part of the company.

The role of operational plan is very much significant in any business as it is guide as to what the business goals are and how the management is taking decisions which can take the management closers to the goals of the company (Chadwick, 2013). In case of BBQ Fun, the implementation of the e-commerce facility will require that the operational plan is effective and can support all the activities and processes of the e-commerce facilities. In addition to this the operational plan makes it clear what the management has to do and also helps in supervision of the activities of the business. The operational plan of the business will also be containing plans as to when the e-commerce facilities can be introduced and developed and how can the other activities of the business assist the implementation of the e-commerce plan of the management (Olhager, 2013).

The management should develop a new operational plan as the management is changing the sales structure of the business and therefore the old operational plan may not be that much effective in nature (Manzini, Accorsi & Bortolini, 2014). The e-commerce strategy is a new development for the business therefore the management of the company will be requiring all the assistance it can get to set up the e-commerce facility and moreover, other activities of the business will have to be planned in such a way that it helps the e-commerce sales system.

Policies and Procedures related to Operational Plan

The implementation of the e-commerce facility will be requiring both physical and human resources. The human resources requirements of the business consist of employees who will be responsible for the implementation and handling on a regular basis of the e-commerce system. Moreover, the other personnel who will be involved in the development of e-commerce system are CEO, CFO, operational general manager, sales manager. The physical resource requirements of the company will be comprising of system of computer, delivery trucks, forklifts, software installation (Maglio & Spohrer, 2013). The resources are to be utilized for the implementation of the e-commerce facility and also to ensure that the all such factors assist in the online sales activity of the business and increase the overall sales of the business (Bharadwaj et al., 2013).

The discussions which are to be made with the sales manager is regarding the human resources requirements in the business. The employees which will be required in the e-commerce team of the company will need to have the necessary skills and ability to handle online operations. The role of the sales manager will be important as he will be guiding the employees and also recruiting potential employees in the interview rounds (Van Der Aalst, La Rosa & Santoro, 2016).

The human resource requirements of the business relate to the requirements of assets like delivery trucks, forklifts, system software. These are necessary in order to ensure that the operations of the business relating to e-commerce is running smoothly (Stone & Stone, 2013). The sales order which are received by the businesses needs to be transported to the customers and the management uses delivery trucks for such purposes. The operational manager need to ensure that such requirements of the company are fulfilled.

Milestone: Action and/or objective (to achieve strategic aims of physical or human resourcing)	Date	Person responsible	Budget or resources (where applicable)
Approval of E-commerce project	10th January 2018	Manager responsible for the project	Documents, presentation, Charts and plans along with PowerPoint Presentations.
Development of Plan	20th February	Departmental organisers	Planning Charts and basic requirement details as were approved.
Incorporation of E-commerce Functionality in the website of the company	15th April	Online sales and operations manager and technical staff.	Designing of the Website tools and systems developers kit.
Promotion of E-commerce Facilities available	5th May	Marketing and Sales team	Marketing Manager and use of different kinds of promotional tools.
Launching of Website with E-commerce Facilities	28th August	Technical and Information Technology Team	Websites IP, login ID, General Settings, Configurations.
Project is Completed and Successfully Implemented	1st October	Senior Managers and Top level of Management	Various Documents and Project Reviews.

The key performance indicators which are related with the implementation of the e-commerce strategy is that the overall sales of the company will be increasing, there will a cost benefits which will be associated with the project and the overall operational efficiency of the company will drastically improve (Yin et al., 2016).

KRA (key result area)	Target	KPI (key performance indicator)	Result
Financial	Increase in profitability from the e-commerce strategy of the organization	Cost-Benefit	Increase in profit
Sales	Increment in the annual sales of the business	Sales Turnover	High sales revenue
Human Resource	Training of the staff for getting skilled workers	Competent Staff	System is operated successfully

Contingency Plan Company name: BBQ fun Name of person developing the plan: Who was consulted as part of this plan? Name Position
Risk identified:  Unsystematic Operations due to employee underperformance
Strategies/activities to minimise the risk	By when	By whom
The risk can be minimized by initiating proper training and development of skills and ability to handle e-commerce website	After planning Stage	Manager.

Contingency Plan Company name: BBQ fun Name of person developing the plan: Who was consulted as part of this plan? Name Position
Risk identified:  Risk of copying of intellectual property
Strategies/activities to minimise the risk	By when	By whom
The risks which are associated with intellectual property of BBQ Fun being copied by third party can be stopped by taking legal rights of the property,	Before Planning Stage	Top level management

Contingency Plan Company name: BBQ fun Name of person developing the plan: Who was consulted as part of this plan? Name Position
Risk identified:  Risk related to health of employees
Strategies/activities to minimise the risk	By when	By whom
The risk that during the work process employee can get injured or severely hurt can be prevented by keeping safety equipment and safe working environment.	Before Planning Stage	Top level management

The various proposal which can be provided to the operational managers are given below in the form of points:

1. The physical resources which will be required by the management will consist of infrastructure, 6 delivery trucks, forklifts, additional warehouses workers, 8 new employees for sales team and 6 drivers for delivery trucks.
2. The cost which will be required by the management can be segregated into three parts which are initial investments, additional expenses and costs related to operations.
3. The benefits associated with e-commerce facilities are increase in sales revenue, more profits for the company, better quality of services provided.
4. The KPI can be generated by effective training of the employees, effective operational plan implementation and resource requirements which are necessary for smooth running of the business.
5. The risks which are associated with the e-commerce strategy are underperformance of employees, risks associated with intellectual property and risks related to health of employees and other risks as well.

As per the case study provided in the assignment, BBQ Fun is in the process of expanding its business by incorporating an e-commerce facility in its website. This will help the business in improving the overall sales of the company and lead to development of the business of BBQ Fun. As per the budget, the physical resources which the business will be requiring consists of 6 trucks which is necessary for smooth distribution process of the products manufactured by BBQ Fun. In addition to this the company will also be requiring four forklifts for the business. The company also has a capital requirement which is of five million dollars for effective and efficient running of the operations of the company. There are various sources where the company can acquire the required physical resources of the company. Some of the options which is available to the company is given below along with the benefits and limitations which are associated with choosing the source:

Resourcing Option	Benefits	Limitations
Phurchasing from open market	The basic advantage which is associated with purchasing the resources from open market is that the company has a lot of options available to it and a range of prices is also available from where the company can choose the most appropriate choice (Lee, Noh & Kim, 2013).	The limitation which the company faces while selecting this method is that the market prices of the equipment in most cases are considerably high and there are also risks which are associated with open market purchases.
Second hand Purchases	The main benefit of this method of purchasing is that the cost of acquiring resources are quite low as the products are used and not entirely new (Hamari, Sjöklint & Ukkonen, 2016). In comparison with new purchased resources, second hand products are low on cost.	The limitation which is associated with this method of acquiring resources is that the resources such as equipment and machinery can be outdated or defective.
Tender	The main advantage of using this method of purchasing is that the company gets a wide range of offers for the tender and then the company can choose the most competitive and suitable price.	The disadvantage which is associated with this method is the complexity of the entire process associated with the method.

Role of Operational Plan

The above table shows the various options which the management has for purchasing the physical resources which are required as per the requirement of the company. As per the decision of the management of BBQ Fun will be purchasing the physical resources of the company from open market. It is the requirement of the management that new physicals products should be purchased as such will have more useful life than the second-hand ones. Assets like trucks and forklifts would be constantly used in the market and therefore new model is the requirement of the company which will not be available in case of second-hand purchase. Another objective of the business for purchasing the product from open market is that the company wants to establish relation or a friendly tie up with the supplier so that in future requirements of physical resources the company and supplier can again do business. In this way the company will be able to get some bargaining power and also in some cases discounts in case of future transactions.

As for the purchase of inventory and stocks the company can use Bid tender method where the company needs to appoint an auctioneer who will be conducting the proceedings of auction process. The first order of the business is to invite all potential suppliers of the raw materials for the auction. The suppliers will be bidding for the contract of suppling raw materials to the company. The auction process will start with a base price which is decided by the management of the company after analysing the market for the product. The auction for the contract will begin at the base price as set by the management and this price will be gradually increasing by the offers made by the suppliers until the price reaches a saturation point and the contract will be given to the highest bidder. In this way the company acquire physical resources necessary for effective functioning of the business.

The term intellectual property of any business refers to the intangible assets of any company which includes goodwill, patents, copyright and trademarks (Bently & Sherman, 2014). Risk management of intellectual property covers areas where adverse effects which are caused on an asset’s useful life is minimized. In case of every company which has intellectual property is also subjected to certain risks which are there in the business. The acquisition of intellectual property depends on the nature of the business. One of the risks which is faced by the business in relation to intellectual property is that there is a threat of same intellectual property being developed by a third party. Then there is the risk that the intellectual property which includes trade secrets can be leaked to outside party by employees. In case the company is using an intellectual property which the company has taken on lease from third party, there is a risk that the property might get damaged when being used by an employee who does not know how to use the property. In addition to this an intellectual property always faces the risks of cases which can be filed against the company as intellectual property violations (Williams, 2013). The measures which the business can adopt so that the business does not face the risks or minimize the risks are discussed below in details:

1. One of the measures which can be incorporated in the contract of intellectual property that the company cannot use intellectual property of any third party without the prior consent of the same.
2. The company can protect any leakages of vital information to third party from happening by ensuring that every employee of the company signs a confidentiality contract according to which the employee will not be disclosing any information or trade secrets to any third party even if the employee is out of the service of the company.
3. The company needs to have the legal rights of ownership of the intellectual property so that no third party is able to copy the intellectual property of the company(Waelde et al., 2013).

Development of Operational Plan

For the purpose of meeting the needs of the business in terms of workforce requirements, Human resource planning model is followed. A human resource planning model includes aspects such as job description, competency of the employees and also is useful for helping the business understand how it can retain employees (Armstrong & Taylor, 2014). The case study of BBQ Fun provides that the company is trying to expand its scale of operations by moving into online e-commerce services where the products of the company can be sold. The main motive of the management of the company is to ensure that the sales of the company increases with the implementation of e-commerce facilities in the website. The forecasted demand of the employees along with the forecasted supply of employees can be revealed with the human resource planning model.

The plan of the management is to expand the operations of the business and incorporate an e-commerce facility which can increase the overall sales of the company. As per the operational developed by the company, the business will be requiring online sales and customer service employees who would have necessary skills as to handle the e-commerce facility and also the knowledge to handle any situation which arises. Another requirement for the human resources is in the department of delivery services as the business will be requiring drivers and also dour warehouse workers (Bratton & Gold, 2017).

As per the plan of the management, the company is going to advertise the vacancies for the new employees who will be working in the e-commerce team of the company. The main purpose of such an advertisement is to attract potential employees for the designation. The management will then be conducting an interview round on the basis of which employee will be selected. The basis for selection of employee is highest degree qualification of the employee, skills of the employees in handling software, computers and also problem- solving ability of the employees. In addition to this, the management of the company requires the newly recruited employees to be enthusiastic, taking initiates, proper communication skills and if there is any prior experience then such will always be a plus point. The selection of the employee will be done by the managers of the company on the basis of judgements on above criteria.

The IP requirements which are to be incorporated in the policies of the company so that any case of leakages of trade information or profession’s secrets cannot be misplaced. The company can protect any leakages of vital information to third party from happening by ensuring that every employee of the company signs a confidentiality contract according to which the employee will not be disclosing any information or trade secrets to any third party even if the employee is out of the service of the company (Storey, 2014). In addition to this the management of the company needs to enforce a law that anyone who will be breaking the terms of the contract where leakages of any information or trade secrets are prohibited., against which legal actions will be taken.

Resource Requirements

The interview of the company is conducted to understand the knowledge level, problem-solving ability and communication skills of an employee. There is a interview template given below which is prepared by the management:

Planning aspect	Description	Time
1. Type of interview	Selection Interview
2. Objectives	Ø To ascertain whether the candidate has basic knowledge of the online websites and how to handle the same. Ø To recruit an individual who has the ability to face every situation head on and tackle the problems of the company.
3. Approach and style	The management will be adopting a conversational approach so that the communication skills of the candidate can be judged
4. Schedule	1. Establish rapport with the employee 2. Set agenda of the business. 3. Collect information about applicant. 4. Discuss job and company thoroughly. 5. Invite applicant’s questions.	5 mins 10 mins 5 mins 10 mins 5 mins
5. Topics and questions	? Previous work experience in specific job functions. ? Previous training and education. ? Hints of career plans and interests. ? Explanation of the job and company benefits. Page.

Planning aspect	Description	Time
1. Type of interview	Selection Interview
2. Objectives	Ø To ensure that the candidate has basic knowledge of the online websites and how to handle the same. Ø To recruit an individual who can handle every situation with best possible outcome
3. Approach and style	The management will be adopting a conversational approach so that the communication skills of the candidate can be judged
4. Schedule	1. Establish rapport with the employee 2. Set agenda of the business. 3. Collect information about applicant. 4. Discuss job and company thoroughly. 5. Invite applicant’s questions.	5 mins 10 mins 5 mins 10 mins 5 mins
5. Topics and questions	? Previous work experience in specific job functions. ? Previous training and education. ? Hints of career plans and interests. ? Explanation of the job and company benefits. Page.

As per the interview plan of the management, the recruiting workers for the online sales team is required for which the management of the company is looking for individuals who have the necessary skills and knowledge for handling the online e-commerce system. Moreover, the management also plans to provide specific training to such individuals for the purpose ensuring that they are properly trained to handle any situation in relation to e-commerce system (Huang & Benyoucef, 2013).

The management of BBQ Fun has incorporated a plan which can be used by the management to measure the performance of the company in terms of the new e-commerce strategy which will be adopted by the management (Kerzner, 2017). The performance of the management needs to be managed and supervise the activities and in case any discrepancies arises, corrective measures can be taken by the management. An action plan is provided which shows the milestone achievement plans of the management of the company.

Action Plan Template for Milestones Achievement

Milestone: Action and/or objective (to achieve strategic aims of physical or human resourcing)	Date	Person responsible	Budget or resources (where applicable)
Approval of E-commerce project	10th January 2018	Manager responsible for the project	Documents, presentation, Charts and plans along with PowerPoint Presentations.
Development of Plan	20th February	Departmental organisers	Planning Charts and basic requirement details as were approved.
Incorporation of E-commerce Functionality in the website of the company	15th April	Online sales and operations manager and technical staff.	Designing of the Website tools and systems developers kit.
Promotion of E-commerce Facilities available	5th May	Marketing and Sales team	Marketing Manager and use of different kinds of promotional tools.
Launching of Website with E-commerce Facilities	28th August	Technical and Information Technology Team	Websites IP, login ID, General Settings, Configurations.
Project is Completed and Successfully Implemented	1st  October	Senior Managers and Top level of Management	Various Documents and Project Reviews.

As per the estimates of the management, the full implementation and functioning of the online e-commerce services can be initiated from 1^st October. The management expects that the new online e-commerce services will help the management of the company with increasing the overall sales of the company and bring about efficiency in the operation of BBQ Fun.

The performance of the company in terms of financial performance indicators can be obtained from the Chief Financial officer of the company. The financial aspect and Budgetary performance of the company is measured in terms of % of overruns in the budget. The target which is set for the overruns in the budget is zero. As per the current performance of the business, the budget overrun of the business is revealed to be 10%. The budgeted cost overrun is due to the wastage from order mistakes and also due to over piling of stock which arises because of misuse of system (Adongo & Jagongo, 2013). In addition to this, there is the case of duly overly long customer interactions. For the purpose of controlling such a situation the management has to take appropriate steps which are given below:

1. The management in order to ensure that there are no wastages of the resources of the company, it should confirm the orders which are placed by the clients and if need arises take partial payments in case of a bulk order.
2. The management in order to avoid problems which are caused due to piling of stocks needs to be avoided by adopting strategies for the clearing out the stocks as early as possible.
3. The management needs to conduct an enquiry as to the reasons which are causing budget coast overruns and plan on corrective measures as well.

The performance of the company in terms of productivity is measured by overall performance of the employee and staff of the organization (Attia et al., 2014). The management of the company needs to maintain the productivity of the business for which the following steps can be adopted by the business:

1. The key factor which is responsible for the maintaining the productivity of the company is through effective supervision of the activities of the business. For the purpose of supervision techniques like budgeting, performance management can be applied.
2. The various supportive conditions on the basis of which the performance of the company can be enhanced are related to providing better facilities to the employee of the company so that they can be kept motivated. These facilities consist of working conditions, incentive schemes, other facilities as well.

Human Resources discussions

The employees of the company are considered to the lifeforce of the organization and it is a known fact that the skill of the workers of the company determine the level of performance of the business. In case of BBQ Fun, the business is trying to introduce e-commerce facilities which will be requiring online sales employee which need to recruited. Such employee need to have proper training in order to effectively handle the online e-commerce facilities which the company plans to introduce. The management of the company measures the quality of services provided by the online sales employee on the basis of % of mistakes made by the person. The target as set by the management is 1%, however currently the rate of mistakes is around 10%. The mistakes which are caused by the employee of the company needs to be reduced in order improve the overall performance of the company. The management needs to exercise strict control so that the mistakes which are once caused by the employees are not repeated again. In addition to this, the average time required to resolve a customer enquiry as set by the company is less than 10 minutes. As per current operations, the average time which the sales team takes is around 20 minutes. Alternative measures which can be implemented by the management of the company relates to proper training of the employees of the company who are engaged in online sales activities. In addition to this, the company needs to employ candidates who have the necessary skills and ability which is required for the job which is being offered by the management of the company (Rosenfeld, 2013). This can also reduce the average enquiry time.

The management of BBQ Fun has prepared a schedule as to the date or milestones for achieving the set targets of the company. As per that, the management has decided to implement the new e-commerce strategy to increase the overall sales of the company by 1^st October 2014. The plan of monitoring the activities so that the targets and the set date are met will be the responsibility of the managers of the company.

The resources which are available to the company for the purpose of monitoring the activities of the management includes supervisors, performance charts, budgeting techniques and similar other processes. Such techniques and activities of the business aims at controlling the performance of employees and departments as a whole. The management can install security cameras in order to monitor the activities of the employees. Another measure which can be introduce is the biometric entry system which can help the management to keep a track record of the attendance of the employee. Moreover, production reports, budget variances are important tools of having a control over the performance of the individuals and various departments as well.

Human Resource Requirements

In most of the companies every department needs to submit their respective progress reports to the management of the company. Similarly, in BBQ Fun every departmental head should be submitting their progress report to the management of the company on a weekly or monthly basis. The reports will be both qualitative and quantitative in nature which means it will be containing charts, analysis, standards set as well as description of the actual results which are achieved by the company (Laursen & Thorlund, 2016). The progress report is an efficient way of the management of the company to keep the operational activities of the business under check.

As per the operational plan which is developed by the management of BBQ Fun, the management needs to recruit some employees which can work in the online sales team. Another option which the management of the company has is that to train existing employees of the company so that the management does not need to recruit employee newly. The employees of the sales team will be reporting to the sales manager and Human resource manager of the company. it is expected from such employees that they submit sales report to the human resource manager which will be then analyzed to ascertain the performance of the department.

The performance of a business largely depends on the employees of any organization as they are considered to be the life force of an organization. In every organization there is a requirement of skill workers so that best performance can be obtained. BBQ Fun also requires skill workers in order to handle the online e-commerce facility which the management of the company wants to introduce (Maina & Kwasira, 2015). The estimated time for the implementation of the e-commerce project is on 1^st October. Some of the employees have not been able to deliver above the potential and as per the management has been underperforming. The causes which can be associated with the underperformance is that some of the employees of the sales team are still facing problems in effective handling of the system due to lack of proper training. Then there is the case of increase % of errors and mistakes caused. There are also cases where the employee has not been able to meet up with the respective standards of performance which can be an area of concern for the business.

The management can overcome such situations by implementing appropriate remedial plans which are given below:

1. The management needs to make certain that the employee of the sales team have proper knowledge and training which is necessary for operating and handling the website. The training programs of the company needs to be improved so that all areas of concern are covered in the training.
2. The appointments of the employees should be on the basis of strength of the individuals to the designated position for which the individual has been appointed. This way the company will be able to extract the best out of the employees and the overall performance standard will rise.
3. The problems which are related to communication and improper after sales services can be improved with the right amount of motivation provided to the employees of the business.

Name/position: Sales Department	Manager:	Review period:
Reference from operational plan	Key result area	Indicator of success/ performance	By when	Status report
Online Sales employee	Quality of online sales services	Achieving 1% or lesser amount of mistakes which the employee can make.	15th April	Work in Progress
System and Website developer	Customer servicing, operating websites	Better handling of websites reducing the mistakes and losses	18th August	Work in Progress
Manager’s comments:	Signature: Date:
Staff member’s comments:	Signature: Date:

Action Plan for E-commerce Development

Figure 1: (Table depicting individual performance standard)

Source: (Created by Author)

The company needs to incorporate measures which can improve the performance of the underperformed employees of the company. The management plans to follow GROW Model for effective coaching practices of employees (Passmore, 2014).

1. Goal: The goals, mission and vision of the company should be known to the employees of the company. In other words, the employee must recognize what is being expected of him and also what level of performance he needs to deliver(Cox, 2015). The employee of the company will be requiring the necessary motivation from the management to perform efficiently. Such motivation can come from better facilities provided to the employees, better working conditions.
2. Reality: The management will then be revealing the actual performance of the employee and make comparison between the standards set in order to establish the performance gap and then remedial measures can be made.
3. Options: In the option phase the management will be communicating with the employee about any problem which they are facing and the management will try solving any problems of the employees.
4. Will: The last phase is associated with the motivation which can be provided by the management. The management will be adopting all techniques to motivate and encourage the employees of the company to improve their performance. If the employees are motivated from within then achieving the performance standard will not be an issue for the employees.

Employee: Online Sales Expert
Coach/Manager: Sales Manager
Date of session: 28th April
	Questions
Goal	State the goals of the Organization?  What problems are the employees facing? Is there a corrective action for the problems faced by the employees?
Reality	What are the set standards on which overall performance of the employees is based? What is the actual performance which is achieved by the employee? How much is the performance gap?
Options	What are the ways in which employees can overcome the performance gap? What are choices which are there for the employees to improve his/her performance?
Will	What are the factors which motivates the employees? How well can an employee who is motivated, perform in the business?

BBQfun operation plan status report	Date:
Plan goal	Implement e-commerce strategy	Department	Operations
Plan objective/s	Website redevelopment and purchasing physical resources recruitment and training of staff achieving targets set for profits following the budget adhere to timelines.	Person responsible	Project Officer

Key performance indicators	Current status (Red, Green, Amber)	Comments
The new employees as well as the old employees of the Online e-commerce team have finished their training and have the necessary skills needed for websites operations	Green	All employees are trained to handle online sales and e-commerce activity, with more employee still undergoing training phase. Therefore, this will improve the overall productivity of the business (Berman 2015).
All new employees need to have all the necessary skills and qualification required for the job.	Amber	Some members of the sales team do not have the skills which includes old employees but they are in the process of developing the same.
Meeting standards as per Budget and financial plan of the business.	Amber	The management has started to implement the budget and ensures that everything is going as per plan, however it is expected that there might be certain delays in execution of the plans. The management as per the performance is trying to achieve the financial target of the company which is $ 30000, however the company is currently earning around $ 20000. The management has the expectation that with the implementation of the new e-commerce facilities, the company will be able to increase the overall sales of the company.
Achieving Profit Targets	Red	The management is not anticipating to meet the profit targets as certain initial unproductive costs and cost overruns have already been incurred by the company.
Milestone Achievement	Green	The management as per the plan schedule of the company, is achieving the targets of as previously set by the management.

Key action	Accomplishments	Comments
Initiating a training program which can result in educating and training of employees for the new e-commerce facility	All the members of the e-commerce team will attend the training.	The employee who have finished the training program have positive responses which shows that the program is useful
Development of a proper sales strategy	The sales strategies will be securing all areas of consideration and the customer redressal programs as well	The management has positive vibes about the new sales strategies.

Risk	Contingency	Comments
Order Mistakes which can be committed by the employees	In case of order mistake the management plans to incorporate a backup plan so that there is no instances of wastage.	The management expects the back plan to hold up in case of such order mistakes, however the management does not want such mistakes to occur in the first place.
Employee turnover	If the online sales wants to function appropriately the management needs to ensure that the employee turnover ratio is kept at minimum.	The management expects that the plan will be helpful to manages the employees force of the company.

The recommendations which can be suggested to the management to improve the operational plan of the business are:

The management plans on incorporating a backup plan so that there is no instances of wastage and mistakes can be kept to a minimum.

In order to improve the operations of the business, the management needs to formulate a retraining plan for employees who are underperforming so that the performance of the employee can be improved.

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