What is Operational plan? key components of developing an operational plan

operational plan example

 A retail store is considered as a simulated business scenario for developing an operational plan. Assume, The company operates its business activities through 25 stores around Australia. The company offers different types of products including office supplies, ink and toner needs, electrical equipment and office furniture. A variety of services is rendered along with products like photocopying, printing, equipment hire, packaging and posting services to attain organizational objectives. The assumption is taken as an operational plan example. It is just an operational plan sample, not to mention any company name.

What is Operational Plan?

It is the process of determining which portion of strategic goals will be put into action for a certain period of time. It is a tactical planning process to attain organizational objectives. It includes business goals, objectives, strategy, key actions, milestone, budget, timeline etc. To know more about operational planning visit Wikipedia.

key components of developing an operational plan:

  • Business goal

The goal of the retail store is to increase profitability, growth and customer satisfaction. Increasing profitability is the first goal of a retail store. To increase profitability, the company need to run a profitable operation. The profitable operation includes increasing revenues and reducing expenses. When the company increases its profitability and reinvest its profits, the growth is ensured by providing additional products and services. To increase profitability, the company must satisfy its customer for recurring purchase. The business goal is set as a part of the operational plan example.

  • Long-term goals:
    • Increasing profitability
    • Maintaining growth
    • Maintaining customer satisfaction
    • Increasing efficiency
    • Maintaining retention
  • Short-term goals:
    • Increasing the profitability of existing operations
    • Increasing the quality of products and services
    • Increasing customer satisfaction
    • Expanding business
    • Increasing employee skills
    • Providing better customer service
  • Objectives

The company has some objectives to Maximus profitability, growth and customer satisfaction which are-

    • 10% increase in sales to increase profitability
    • Expanding business area for capturing new customers
    • Enhancing the quality of product and services
    • Maximizing customer satisfaction
    • Increasing customer retention
  • Increasing employee efficiency
  • Strategy

    • Strategies for increasing sales:
        • Product diversification strategy will be followed to attain a 10% increase in sales which is considered as a sample operational plan. Some new products and services will capture the new market for increasing sales.
        • Online marketing and selling strategy will be helpful to conduct marketing and increased selling activities. The company will create a website for selling product and services. It will increase customer order. Some online marketing tools like facebook and google will be effective for increasing sales.
      • Product differentiation strategy will be helpful to increase customer who wants unique products and services.
    • Strategies for expanding business:
      • Graphic design services will be introduced to capture new customers.
      • Additional equipment, furniture, and human resource are needed for providing new service.
    • Strategies for increasing the quality of products and services:
      • The reorganization of equipment is necessary to facilitate quality production.
      • Employee efficiency is inevitable for quality production.
      • The quality of equipment is necessary for maximizing product and service quality.
      • The new technology is helpful for increasing quality.
    • Strategies for employee satisfaction
      • A suitable working environment is necessary for employee satisfaction.
      • Some motivational activities are helpful to make actionable objectives.
      • Social connection can be helpful to increase employee satisfaction.
    • Strategies for customer satisfaction
      • Increasing the quality of products and services
      • Reducing the price of products and services
      • Effective delivery system
      • Receiving customer order from difference sources
  • Strategies for customer retention:
    • Providing greater customer value
    • Maintaining a relationship with customers
    • Differentiating products according to customer needs
  • Strategies for increasing employee efficiency:
      • Appropriate training facilities are necessary for increasing employee efficiency.
      • Monitoring employee performance is helpful to attain the objective.
    • Proper placement of the employee is necessary for maximizing efficiency.
  • Key actions

To implement the plan, some key tasks is required to utilize the plan effectively and efficiently.

  • Deliverables:
    • Some new products and services like graphic design
    • Developing a website for accepting customer orders
    • Online marketing like facebook marketing, google adword etc.
    • Unique products to meet customer needs
    • Restructuring the business process
    • Purchasing new types of equipment and fittings
    • Hiring new skilled employees
    • Providing employee training facilities
    • Introducing new technology
    • Workplace safety
    • Flexible work environment
    • Employee motivation like the reward, health insurance etc.
    • Social connection
    • Increasing products and service quality
    • Reducing Price
    • Easy ordering and delivery system
    • Proper placement of an employee
    • Measuring employee performance
  • Person responsible:


Responsible person

Graphic Design 2 Graphic Designer at each store
Developing Website 2 Web Developer, 1 database administrator, and 1 internet security provider
Online marketing 2 marketing executive
Product Differentiation 2 product developer
Restructuring the business process Contractual Employees
Purchasing equipment and other fittings Purchasing officer
Hiring new employee HR Manager
Employee training Training provider
Workplace Safety Worker
Social Connection CSR department
Increasing product quality Production department
Reducing Price Marketing Department
Ordering and delivery system Technical and disbursement department
Employee placement HR department
Measuring Employee performance

General Administration

  • Timeline
Activities Timeline
Planning and formulating the strategy 01 Feb – 15 Feb
Hiring Employees 16 Feb – 20 Feb
Training 21 Feb – 20 Mar
Restructuring organization 20 Mar- 25 Mar
Introducing new products and launching a website 25 Mar – 30 Mar
Implementation 1 apr- 30 June
  • Budget
Task    No. of Employees Particulars  Amount ($) Per month
Graphic Design 2 $24 per hour and 40 hours per week 7680
Developing Website 2 Web Developer, 1 database administrator, and 1 internet security provider Contractual 2000
Online marketing 2 marketing executive $24 per hours 7680
Purchasing equipment and other fittings Purchasing officer Equipment 8000
Employee training Training provider Contractual 1500
Ordering and delivery system 2 employee $15 per hour 4800
Store assistant 2 employees $15 per hour 4800
Administrative assistant 2 employees $20 per hour 6400
Total 42860
  • Resource requirements
    • Computer and software
    • Printer
    • Photocopier
    • Delivery Van
    • Human resource
    • Other Equipment
    • Furniture
    • Other Fittings
  • Key performance indicator:

The list of SMARTT KPIs is given below-

  • Financial KPIs:
    • Revenue
    • Return on capital employed
    • Cash Flow
    • Net Margin
    • Gross Margin
    • Volume Growth
  • Customer:
    • A share of new products
    • New customers Rating
    • Customer retention rate
    • Quality of products and service rating
  • Internal Operation:
    • New product ROI
    • The quality score of employees
    • Unplanned downtime
    • Efficiency rating
    • Idle time
    • Working time
    • Activity cost
    • Perfect order
  • Growth:
    • Employee survey report
    • Personal BSC (%)
    • Strategic competencies
  • Contingency plans:

Risk Mitigations
The risk associated with quality standard Routine check out to mitigate quality standard
Adverse and unexpected events such as an absence of staffs Relationship with employer organization will meet up unexpected events
Failures of technology like the computer  and other equipment A number of reserved technology will be used
Failure of electricity High voltage IPS and generator will be used
Fire Fire reduction gas will be used
Website failure An alternative website will be redirected
Employee turnover Relationship with employer organization will be helpful to mitigate turnover
  • Outcome

  • The use of product diversification and differentiation strategy will make the company a leading retail store in Australia.
  • The use of online marketing and selling is helpful to create a competitive advantage.
  • The quality service is necessary to become vision oriented.
  • Employee satisfaction will increase the goodwill of the company along with efficient production.
  • By serving customers, the company will be the market leader in the industry
  • Customer retention is helpful to introduce new services.
  • Employee efficiency will reduce production costs and the company will be a pioneer in the industry.
  • Approvals Process

    • Application for operational plan
    • Understanding background
    • Planning and organizing
    • Submission for approval
    • Criticism and rectification
    • Approval

All the information is considered as an operational plan example. We don’t know this business in the real world exist or not. The operational business plan contains the above process to attain organizational objectives. The operational plan is considered as a sample which contains in the business plan.

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