Scenario Assessment 1

7-Twentyfour Australia is a subsidiary company of 7-Twentyfour Japan and is a Japanese-Australianinternational chain of convenience stores headquartered in Tokyo, Japan. The chain rejoiced in itsgreat success in the Japanese market and successfully launched in other countries. It is nowtargeting the Australian market and is planning to open a flagship store in Sydney, Australia.

Before penetrating the Australian market, the company decided to send a project team to conductmarket research and to establish an appropriate operating plan for the store in Australia.

You have just been appointed as the project manager and, in your project team, you will have thespecialists as follows:

? Senior Accountant

? Australian solicitor

? Marketing manager

? IT technician

? Procurement manager

As the project team needs to deal with the different legal systems including employment laws anddifferent customers, the team must conduct research and identify the information needed for theiroperational plans. Furthermore, the team also has to design the operational plans such as operatinghours, number of employees in each store, marketing plans, and also relevant contingency plans.

This project will run for a 6-month period, and you are required to report to the senior managementevery fortnight through video meeting conferences and, as the project manager, you are required toresearch and obtain relevant information about the following resources needed for the store.

Currently, the headquarter decided the following but these are subject to change due to legal

requirements or other business circumstances:

? Each store has 3 employees and 1 manager per shift.

? Each store runs 3 shifts a day (1 shift runs for 8 hours).

? Each store has a petrol retail station.

An Australian management consulting firm is arranged for the project as the firm has the

information for the budgets, procurement plans (supply chain), legal requirements for human

resource.

All interior and exterior works in the stores will be done by a construction company and are not a partof the project task.

Assessment 2

Scenario:

The scenario under Assessment 1 will be used in Assessment 2.

You have successfully launched the flagship store and have been operating for 6 months now. Thecompany expects the following for the next 6 months, and you are required to analyse the followinginformation.

? The expected turnover: $12,000,000

? Targeted net profit ratio: 15%

? Targeted total number of followers of social media networks: 1 million

As the store is in Sydney CBD, the store is surrounded by many competitors, and the competitionin the market is fierce. The customers do not wait in long queues and just visit anotherconvenience store if products are not ready on the shelves. Therefore, staff turnover andabsenteeism are the biggest concerns for the operating plans.

You have been approached by the accounting manager and was informed that the efficiency inhuman resources is very difficult to manage, and especially the night shift is always suffering froma high level of absenteeism. As a result, you consider an unmanned operating system for the nightshift that uses smartphone technologies and artificial intelligence to replace the traditionaloperating system and no staff is required except a staff who oversees the storage room.

QUESTION 1:

You have reported the following information and are now required to assess how the store was operated. Use the trend analysis and answer the following:

Customer Targgeted Actual No of staff Net profit Variances satisfaction Sales ($) Sales ($) no shows ratio (10) Jan 1000000 890000 1 10000 8 8.2 11% Feb 1000000 830000 170000 12 7.4 9% Mar 1000000 840000 160000 9 7.8 10% Apr 1000000 910000 90000 6 8.5 11.50% May 1000000 925000 75000 5 8.6 12% Jun 1000000 940000 60000 3 8.9 13%Efficiency of Total Marketing Month Total Sales the marketing No. of complaints Activity costs activities Jan $80,000 $890,000 $11.13 13 Feb $82,000 $830,000 $10.12 17 Mar $94,000 $840,000 $8.94 19 Apr $98,000 $910,000 $9.29 22 May $102,000 $925,000 $9.07 18 Jun $114,000 $940,000 $8.25 23No Issues Benefits Drawbacks 1. Customers must use their smartphones to enter the store and to purchase goods. 2. Customers safety may not be guaranteed 3. The investment funds for the system can be recovered in a 6-months period 4. Customers may feel freedom as no staff watching over them 5. No concerns for staff no shows, sick calls 6. Do not have to manage staff roster 7. Security of the system must be upgraded on a regular basis 8. Other shift staff may feel low job securityThe unmanned operating system Staff saving costs Initial costs 400000 Staff 880000 Maintenance 25000 Supervisor 70000 Insurance 20000 Additional labour 120000 Security system 100000 Total 1070000 Total 545000 Monthly costs 89167 And the table in Question 2 was addressed below: Customer Targeted Sales Actual Sales No of staff Variances satisfaction ($) ($ ) no shows 10) Jan 1000000 890000 1 10000 Co 8.2 Feb 1000000 830000 170000 12 7.4 Mar 1000000 840000 160000 9 7.8 Apr 1000000 910000 90000 6 8.5 May 1000000 925000 75000 5 8.6 Jun 1000000 940000 60000 3 8.9