BSBOPS601 Develop and Implement Business Plans - Assignment Activities

Assessment Activities

Activity 1A

Case scenario A: Burger Queen

Key Ideas for Fast-food Industry

According to Businesswire (2021), it claims that “the global fast food market is expected to reach $931.7 billion by 2027, rising at a CAGR of 4.6% from 2020 to 2027”. The global fast food market is poised to witness significant growth during the forecast period, owning to increase in number of fast food restaurants, rise in number of working women, tech-savvy ordering options, rise in demand for international cuisines, and change in consumer taste and preference. However, factors such as high setup cost of restaurants and rise in health concerns among the fast food consumers are expected to hamper the growth of this market. Moreover, the rise of fast casual food is forecasted to negatively affect the fast food market growth (Businesswire, 2020).

Fast food product is one such convenient food product that can be consumed with ease anywhere, anytime. Hence, the fact that the busy lifestyle being adopted by majority of customers paves way for fast food product to grow in terms of volume sales.

Based on type, Asian/Latin American food has been the most preferred fast food among consumers, due to its flavors and ingredients added in the products. Thus, the Asian/Latin American food segment was valued at $155.5 billion and is expected to grow with a CAGR of 3.4% from 2020 to 2027, to reach $203.6 billion by 2027. However, the burger/sandwich segment is expected to grow at the highest rate during the fast food market forecast period. This is attributed to increase in consumer demand for taste and preferences of the food.

Based on end-user, the quick service restaurants segment is dominating in the market, which accounts 42.59% of the share in the global fast food market in 2019 and is expected to retain its dominance throughout the forecast period. Quick service restaurants are the most preferred by consumers. With the increasing demand for fresh, tasty, and appealing food at affordable cost, the demand for quick-service restaurants is increasing. Moreover, retaining healthy and natural ingredients along with maintaining the taste also boosts the market growth.

On the basis of region, North America was the prominent market in 2019 and accounted for the maximum share in the global fast food market. This is attributed to the high consumption of fast food in the U.S., Canada, and Mexico. Consumers in the region are attracted by fast food with new flavors, textures, and higher nutrition of fast food and has led to the growth of the market in the region.

Burger Queen

Burger Queen is a new franchise in the Australian fast food industry. It is planning to establish in December 2021. The company is also planning to expand its fast food restaurant with more than 1,000 restaurants in over 20 countries by the end of next year. It expects to employ more than 100,000 people worldwide, including employees at company-owned stores and corporate office employees.

Vision

To be leading fast food service globally

Mission

To be the best ways offering outstanding quality, service, value, and cleanliness so that we satisfy every customer in everywhere they are.

Value

Better choice of fast-food for the family

Business Overview

Burger Queen’s is planning to be the world’s leading fast food company in terms of revenues and number of restaurants. The company will offer a uniform menu that includes chicken burgers, fish burgers, beef burgers, fries, chicken nuggets, plain sandwiches, wraps, shakes, ice-cream, cupcakes, drinks and other desserts.

To ensure that it connects with its international markets, it also offers locally relevant food menus which will be rotating in each season. For example, it will serve durian ice cream in Thailand, and mango smoothies in India. As a global company with local operations, Burger Queens has to adapt to local food choices.

Business segments

Burger Queen and its competitors such as McDonald and KFC use the franchise model as well as the company-operated model. Notably, these are the two most common models in the restaurant industry.

Burger Queen divides its revenues into company-operated stores and franchised stores. In the second quarter of 2021, Burger Queen earned 33% of its revenues from company-owned restaurants. Burger Queen also earned its remaining revenues from franchises. Notably, the contribution of franchise stores to Burger Queen’s revenues has grown significantly over the last two years.

Business and Operation Plan

The business strategy for the company is to make food fast and available to its customers at a very low competitive price. However, the company aims to gain profit as well by reducing the cost and wastes of the products as well as expanding the business globally.

Burger Queen considers that an operation strategy plays a very important role in achieving organisational goals. The company has employed strategies based on three sections. The first strategy focuses on customer importance as well as customers satisfaction. The second strategy focuses on information technology usage. The company has adopted a self-ordering system to reduce time-wasting in line for customers. Lastly, Burger Queen has introduced a stock control and checking database system. The system is extremely beneficial for each branch to avoid unnecessary ordering and to keep the stock up to date in-store. It has become more convenient, and time-saving to check and order the stock as stockrooms are directly attached to point of sale system and the manager knows what product is moving fast and how much should be ordered. These strategies are implemented in all the branches, including its franchise, of Burger Queen so that the company can control and ensure they all are met organisational standard.

Performance Management Policy

Guidance: It is recommended to undertake performance management once or twice annually if the lines of communication and feedback between management and employees are working effectively.

The performance management aims to enhance employee’s performance. This is an ongoing process. It will include informal and formal review. The company encourages a two-way process, which is, our employees can also give management feedback on their performance.

All staff working in Burger Queen will undergo a formal performance review with their line managers at least 2 times a year. This is to ensure that our employees can improve their performance during their working.

Question 1:

Explain what is an organisational framework and how it is necessary to consider when developing a business plan?

An organisational framework outlines the flow of products and services within organisations, as well as who will be accountable for making choices on procedures, projects, product development, and among other things.

Organisational framekworks may include business value, management plans, innovation, change management, but 2 main critical frameworks that every organisation must have are strategic plan and operational plan.

• The strategic plan explains the company's goals and investigates how they might be met.  The plan also  describes the organization's strategy and contains a vision statement that describes where the company will be placed in three to five years.
• An operational plan discusses how resources will be allocated in each department of the organisation to achieve the goals of the business plan during the course of the business.

When developing a business plan, It is important to consider every possible aspects in relation to business operation. It enables you to plan for your company's future and avoid potential setbacks, by detailing the goal of this business , how it'll be achieved, and when it'll be achieved. A business plan is  a technique of critical thinking to assist in:

• being clear about the business idea
• measuring progress
• obtaining money
• identifying any potential challenges
• determining and setting out targets
• adding new partners.

Question 2:

Identify and clearly explain three (3) organisational structures which Burger Queen could adopt.

Task Guideline: The learner is recommended to research and analyse required information from similar fast food companies/industries such as McDonald, KFC and others.

Organisational Culture

In a multicultural country such as Australia, there are so many employees working right now from different cultures including Asians, Middle Eastern, South Africans, European and many more ethnic communities. All of them share different cultural values and beliefs but they all have a common goal at Burger Queen, that is “To be the best ways offering outstanding quality, service, value, and cleanliness so that we satisfy every customer in everywhere they are”. To diversify the workplace, managers need to enhance their cultural awareness, learn from employees what they don’t know and attempt to understand their employees from different cultures. Having picnic, coffee, company outing, multicultural day are all effective strategies to reduce many potential issues such as language, respect, culture, etc, which could be a barrier in communication, resulting in negative impact on the workflow of organsation.

Rewarding

Reward is one of the most effective tool to increase employees’ performance and increase in productivity of the organisation. As an incentive to encourage all team members perform well in order to provide great service to customers, this can be achieved by declaring Employee of the Month Certificate along with a monetary voucher to whom obtain an outstanding performance of the month. This can be measured by anonymous votings within the stores, managers’ observations or obtaining the highest customer counts in their account attached to POS (point of sales)

Supplier Communication

Emails or internet communication is very effective communication in practice. Each Burger Queen store can send them the order list via emails twice a week by deadlines (such as every Mon night to receive stock on coming Thu; every Thu night to receive stock on coming Mon. Sometimes phone calls can be made due to urgent orders or misplaced orders. An instance where delivery drivers have made shortage of stock, damage stock, or stock arriving not at. the correct temperature, there is also a procedure in place to mitigate the situations like submitting supplier complaint form available at supplier’s website to request for compensations.

Question 3:

Based on the business environment of Burger Queen, analyse three (3) Australian legislative frameworks for its business and operation and clearly explain how each of them is crucial to consider when developing a business plan.

Task Guideline: The learner is recommended to research and analyse required information from similar fast food companies/industries. Alternatively, McDonald’s CSR Report 2020 has been attached as additional reading to guide you complete this task.

Health and Safety

Question 1 

Identify five (5) products and one (1) service which has been offered by Burger Queen.

5 Products: Burgers, Fries, Sandwiches, Shakes, drinks

1 Service: Self-ordering system

Question 2:

Clearly explain the term of marketing requirements and how they are important for an organisation to consider when developing a business plan.

The term of marketing requirements usually includes:

• A description of the product and service: what you’re offering to consumers
• The needs or wants of the customers: how demanding it is
• The target market for the product or service: which market segments it is for
• Competitor's products: how competitive it is in the market
• Marketing activities: considering marketing channels to suit company’s budget

It is important to fully understand marketing requirements as it will assist in describing the market needs and demand for your product or service, as well as raising any red flags that need to be considered and adjusted to fulful business plan

Question 3:

Review the market requirements for Burger Queen’s products and services and write a summary below. The topics must include:

• Vision (What makes your product or service unique? Your vision should represent the core essence of your product. It should set the direction for where your product is headed or the end state for what your product will deliver in the future.)
• Competitive advantages (Explain factors that allow a company to produce goods or services better or more cheaply than its rivals)
• Target market (How big is the opportunity or market size? Detail the specific market size and document the assumptions and facts that validate and justify the market opportunity).
• Market requirement (What customer’s wants and needs for the product or service.)
• Australian Competitor(s) (What alternatives currently exist? Understanding all the different options available to your prospective customers helps you differentiate your offering and establish a competitive advantage).

Guideline to a learner: You can research more information about the fast-food market trend to get an idea of market requirements.

Activity 1C 

Question 1:

Use your word to clearly explain the term of business requirements.

Question 2:

Identify Burger Queen’s business objective and identify two (2) business requirements to achieve its objective.

Question 3:

Explain whether Burger Queen’s business requirement and market requirement is in the same direction, and how likely the Burger Queen will be a successful business.

Question 4:

Briefly explain competitor analysis and how Burger Queen needs to understand its competitors.

Question 5:

Use the template provided below to conduct a SWOT analysis for Burger Queen.

Task Guideline: The learner is recommended to develop SWOT Analysis based on the Australian fast food industry.

Question 6: 

Conduct competitive analysis for Australian Burger Queen and established a plan to compete with existing competitors. The analysis must include:

• Who are the competitors (include both current and potential competitors)
• Select one key competitor that you believe will be the most dominant on Burger Queen company and analyse its business strategies (include both long term and short term corporate and competitive strategies)
• Identify opportunities and threats (analyse the competitors’ strengths and weaknesses, compare them with your strategies, and identify the opportunities and threats)

Activity 1D

 Knowledge Evidence

Instruction to learner: 

To complete Question 1-3, you are required to follow the instruction below.

• In a group of 3-4 people or as instructed by your trainer, play the role of relevant stakeholders of Burger Queen and summarise each question in your words.
• Presents information and seeks advice using language and features appropriate to the stakeholders (group members).
• Use listening and questioning to elicit the views of others and to clarify or confirm understanding

Instruction to Assessor:

To complete Question 1-3, learners are required to follow the instruction below.

• Learners are required to make a group of 3-4 people or as instructed by your trainer, play the role of relevant stakeholders of Burger Queen and summarise discussion in each question.
• Learners are required to presents information and seek advice using language and feature appropriate to the stakeholders (group members).
• Learners are required to use listening and questioning to elicit the views of others and to clarify or confirm understanding
• Assessors are not required to complete an observation checklist for this activity; however, you must remind learners to use formal language and appropriate non-verbal language (eg. do not lean forward while talking, do not cross arms while listening to others, etc.), and use listening and questioning technique to get feedback from the group members.

Question 1:

Give examples of three (3) relevant stakeholders who should involve in developing performance objectives and measures for business plan of Burger Queen.

Question 2:

In your group, discuss and summarise in your words regarding the following elements based on Burger Queen establishment:

1. Identify and explain procedures of business plan development
2. Develop performance objectives
3. Identify financial requirement
4. Identify human requirement
5. Identify physical resource requirements
6. How to monitor the business plan (please detail the process).