Running Head Operational Components1Operational Component.docx
- 1. Running Head: Operational Components 1 Operational Components 8 Operational Components Student Name Institution Affiliated The operations plan will solely focus on the provision of cloud technology services – which is my chosen project. To begin with, the organizational chart is as shown below; (Daud & Rahman, 2017). Recruitment Plan All the above employees are to be recruited and hence the need for a recruitment plan. The following are the steps to be developed in the recruitment process; 1. Assessment of requirement for the position/ Preparing an effective job Description This step involves analyzing the roles in the company that has no personnel to deliver. As seen from the organizational chart, this step has been already done, but there is a need for continuous monitoring to determine any new job positions that may arise from the day-to-day operations. The roles of each post should be well documented as well as the remunerations involved. 2. Publicizing the availability of the position This step involves advertising the position, e.g., in newspapers, radio, word of mouth, to the public. The organization can also contact agents who deal in labor supply for qualified personnel.
- 2. Means for viable applicants to apply should also be well stipulated, e.g., uploading of resumes on the company website. 3. Conducting interviews and selection of employees Methods such as online interviews, face-to-face interviews, sitting exams, should be devised concerning the appropriate line of work that the applicants are applying for. Also, orientation procedures should be put in place for the successful recruits to familiarize themselves with the company’s policies and day-to- day activities. Employees’ Policies and Code of Ethics The employees should conduct themselves as per the following stipulations at all times; a) Code of Conduct · Dress code – All employees should be dressed in official wear at all times when in the office. The official wear should not be in any way suggestive such that it makes fellow employees or customers uncomfortable. · Workplace safety - All employees should adhere to the safety standards as stated in each risk policy availed to them. In addition, all employees should react accordingly in the event of emergencies such as fires (all these instructions are availed during the orientation process). · Attendance – All employees should report for work all the required days as stipulated in their job description. If this is not possible, the appropriate channels should be followed (as specified during the orientation process) to avoid inconveniencing the operations of the company. · Code of ethics – This section states how the employees should conduct or behave while in the office. Each employee should exhibit the following; i. Be inclusive – Each employee should interact with fellow employees with no level of discrimination whatsoever. In other words, no employee or customer should be discriminated in whichever way, e.g., racial, religion, education level, sex. ii. Be respectful – All employees should treat each other with respect in terms of how they speak to each other as well as
- 3. when working together. iii. Protect company property – Each employee should handle all the company equipment with care, both the shared equipment as well as the personal equipment such as laptops. b) Communication All employees should follow the correct channel of communication in airing their grievances, opinions or whichever issues that may arise. Also, the employees should not disclose the confidential company information to inappropriate persons (this section is expounded more on the confidentiality agreement). c) Compliance with the law As the employees handle data and interact with the systems, they should do so in accordance with the laws and regulations that govern the data service system (these laws and regulations are expounded in the rules and regulations policy section). Workplace Details The business is to be located in the state of California. The location is such that it is easily accessible by both road and air means of transport. In addition, the site is such that it has high communication networks, as the communication network is the basis of the cloud technology services. The facilities required include servers, storage media or databases, networking facilities such as switches, routers, hubs, LAN, WAN among other facilities. The storage media include virtual components known as storage servers. These servers are availed to the customers as virtual components in which they upload their data for storage purpose or other purposes. The users are to be issued with login credentials through which they can access these storage infrastructures. Supply Chain The supply chain of the cloud technology venture mainly consists of information. That is, information on the demand and supply in the market, inventory and the service provision capabilities of the venture itself. Concerning the demand and supply in the market currently, the supply chain management
- 4. seeks for ways to compete effectively for consumers in the market in terms of the amounts they supply to what the market demands. In terms of inventory, the supply chain management of the venture monitors the available services concerning the market demand and determines how much more in terms of the market can be served with the remaining resources. This ensures that the resources are not overstretched and that the services are provided effectively and efficiently to all the customers (Addo- Tenkorang, & Helo, 2016). Customer Service process The aim of the venture is to provide cloud services to consumers. Cloud services include storage, hosting, processing, and software as a service. All these services allow users to remotely store, access, process, and transfer data remotely. For the infrastructure to be utilized in a cost-effective manner, there is a need for economies of scale. For instance, say a single user requires two hours of processing in a day. This means that for the remaining twenty-two hours, the processor will remain idle. To achieve cost effectiveness, the venture should consider attracting many users to utilize their resources fully (Rittinghouse & Ransome, 2016). The quality of the cloud services provided is measured in terms of the efficiency and effectiveness of the users' point of view. Efficiency is in terms of ease of access, processing time, and time taken to retrieve information among other aspects considered favorable by the users. On the other hand, effectiveness refers to whether or not the users are getting value for their money. Laws Governing the Venture The information confidentiality laws govern the cloud technology venture. These laws are applied differently with respect to the sector from which the data comes from. In other words, sector-specific laws and regulations have been implemented together with state-level legislation. For instance, the HIPAA (Health Insurance Portability and Accountability Act) governs how data on patients should be handled. From the
- 5. preceding discussion, it can be deduced that several laws regulate the cloud technology venture depending on the different clients that they provide the services for. The venture should, therefore, ensure that it adheres to all the laws and so do their employees (Eldred, Adams & Good, 2015). In terms of taxation laws, the employees are obligated to P.A.Y.E (Pay As You Earn) taxes that are usually transacted by the employer, cloud technology venture, and sent to the government. The venture itself is obligated to federal corporate income tax under the Tax Cuts and Jobs Act (TCJA). References Addo-Tenkorang, R., & Helo, P. T. (2016). Big data applications in operations/supply-chain management: A literature review. Computers & Industrial Engineering, 101, 528-543. Daud, N. H. M., & Rahman, S. A. (2017). Advantages of Using Cloud Computing by Knowledge Management Personel. International Journal of Academic Research in Business and Social Sciences, 7(12), 413-421. Eldred, M., Adams, C., & Good, A. (2015). Impact of EU data protection laws on cloud computing: capturing cloud-computing challenges and fault lines. In Delivery and adoption of cloud computing services in contemporary organizations(pp. 56-79). IGI Global. Rittinghouse, J. W., & Ransome, J. F. (2016). Cloud computing: implementation, management, and security. CRC press. VP of Brand Development/ Digital Marketing Marketing Coordinator Product Marketing Manager
- 6. Director of Marketing Analytics Chief Marketing Officer Chief Technology Officer Network Administrators Engineers Procurement Officers Accountants Chief Operating Officer Chief Financial Officer
- 7. CEO Running Head: FINANCIAL PLAN FINANCIAL PLAN 7 Financial Plan Student Name University Affiliation Instructor’s Name Estimate the capital requirements, use of capital, start-up requirements, and other probable costs involved in the implementation and subsequent operation of the project The success of HR Technology cloud implementation is heavily dependent on capital requirements. The start-up requirements will obviously be higher than the subsequent use the project. First, funds will be required in the development of the centralized HR cloud technology which is expected to be sold to the different firms in the consumer goods industry. The cost for the system development is estimated to be $150,000. The cost also includes testing of the system to ensure it is working as required. Other than the development of the software, the project would also incur costs in adverts that will lead to firms adopting the system for their daily use. The project aims at using $25,000 for adverts and finally incur an expense of $20,000 for training the different firms on how to effectively
- 8. use the software. The initial trainings are expected to be free, as it will serve as a way of market penetration bearing the product will still be new to the market. In total, the project is, therefore, expected to cost a total of $195,000 with an additional $5,000 for miscellaneous hence making it a total of $200,000. Identify the sources of financing As a result of starting cost being high, various sources of finance were considered. The first source is personal savings; from a personal perspective, I intend to have a strong stake in the project, with my personal savings providing half of the entire budget needed kick off the project. Fundraising through friends and families will be another major source of finance for the project (Burns, & Dewhurst, 2016). . Bank loans will also be considered as a possible source of funding for the project. Finally, if the finances will not be enough, investors, who will have a stake in the project will act as the third major source of finance. Define a payback period Payback period refers to the time needed for an investment to fully recover the original outlay with regards to savings or profits. In this case, for instance, payback would be the time in which this HR Cloud technology investment would recover the $200,000 initially invested as profits or savings. Prepare cash flow projections The following cash flow projections take into account the first quarter of the operation phase, and it assumes that the software has been developed with the initial marketing also conducted. Jan Feb Mar Apr Total
- 10. Total Outflows 2500 2500 1500 1500 8000 Net Cash Flow 2500 3500 6500 8500 21000 Within the first four months, the project is expected to have a positive net cash flow $21,000, with the sale of the HR cloud technology software expected to rise in the course of the year. Prepare a projected balance sheet representing the end of the first calendar year of operations and defining assets and liabilities, both current and long term Balance Sheet, December 31, 2019 Assets
- 11. Liabilities Cash (current) 20000 Accrued Expenses (current) 50000 Software (long-term) 100000 Bank Loan (long-term 50000 Common Stock 20000 Total Assets 120,000 Total Liabilities 120,000 Above is the projected balance sheet for the year 2019, thus showing the company’s financial health by the end of the year. Prepare income statement projections for the end of the first calendar year of operations, including charts showing gross revenues, gross profit, and net income Income Statement, for the year end December 31, 2019
- 12. Revenues Total monthly Software Subscription 170000 Total 170000 Expenses Wage expense 15000 Marketing and adverts 30000 Rent 500 Training 20000 Software updates 25500 Total Expenses 91000
- 13. Net Income 79000 The above income statement shows the project’s expected revenue and the different expenses that will be incurred during the year. In the end, the project is expected to gain a net profit of $79000. Define the meaning of a break-even analysis and prepare an analysis appropriate for your project Break-even analysis is used in finding out the point at which a business neither makes a loss of a profit (Kaplan & Atkinson, 2015). It takes into account fixed and variable costs, which are compared with sales revenue. Prepare a ratio analysis, including the definition and value of applicable ratios Various ratios could be used in the determination of financial health of the company. Net sales to working capital ratio, for instance, is used in determining how efficient the project will use the working capital. It is obtained by dividing net sales by the working capital. Working capital turnover = sales/working =250000/200000 = 1.25 Current ratio shows the ability of the business to pay its long- term and short-term obligation (Vogel, 2014). It is obtained by dividing the current assets by current liabilities. Current ration = Current assets/current liabilities = 20000/50000 = 0.4 Prepare a list of possible risks associated with the implementation and future operation of your project and describe the significance of each of them
- 14. There are various risks associated with the HR cloud technology with regards to its implementation and also the future operation. First, being a software of its own kind in the industry, there is likelihood that it could be termed as ambiguous in terms of its usage. Ambiguity could not, however, be of major significance as it only takes a matter of time before the users fully understand how to use the technology. Secondly, there is the threat of quick evolving technology (Sanders & Kelly, 2008). There is a possibility of the technology becoming obsolete with time as a result of new inventions, which could make this technology outdated. This risk is of outmost significance as it could to the fall of the project. If the technology does not focus on new updates and improvements, it could become of no major help to the users. The project involves software development which could be affected by viruses, hence affecting its usage. This is a significant issue as it could play a role in chasing away potential clients for the product. The issue must thus be solved to ensure it does not become a hindrance to marketing and customer loyalty. References Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan International Higher Education. Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning. Sanders, R., & Kelly, D. (2008). Dealing with risk in scientific software development. IEEE software, 25(4). Vogel, H. L. (2014). Entertainment industry economics: A guide for financial analysis. Cambridge University Press.
- 15. Running Head: HR CLOUD TECHNOLOGY HR CLOUD TECHNOLOGY 7 HR Cloud Technology Student Name University Affiliation Instructor’s Name Explain how the marketing plan targets the market segment HR cloud technology is becoming a basic requirement for most companies within the consumer goods industry. The industry is mainly composed of firms which deal in food production, beverages, clothing, electronics, and automobiles, among other major goods directly purchased by customers. The marketing plan, therefore, targets the market segment by showing the major reasons why HR cloud technology is significant in the consumer goods industry through conducting a needs analysis. Most of the activities in which the consumer industry companies engage in require a centralized location from which various HR functions should be conducted. Cloud computing technology provides the best platform to ensure there is consumer satisfaction, effectiveness in sales and also better employee engagement that is crucial to the success of various organizations (Buyya & Venugopal, 2008). Provide a positioning statement for your project The HR cloud technology will be a combination of both customer and employee information system. In many occasions, organizations only have a cloud technology which strictly deals with matters associated with the employees. Others will strictly have information related to customers, but fail to show the link between the two. For this project, both customers and employees are crucial to the success of an organization. If
- 16. employees are not happy, there is a likelihood they will interfere with service delivery to the customers (Graham, 2008). With this HR cloud technology, firms will be able to see the interactions between customers and the employees. In addition to that, the management of employees will become easier as all data will be centralized within one system. Management of customers will as well be made better due to the centralization of all consumer data. The project, therefore, aims at providing an efficient system for the management of employees and customers and also provides the opportunity for the organization to have a better view of the relationship between employees and customers, who form part of major stakeholders within organizations. Define the products and services you will offer The main product that will be offered is the HR Cloud software in which various firms in the consumer industry will have to purchase. Once the product has been purchased, there are different services the company will offer. For instances, constant improvement of the software is expected; firms will thus be charged with the role of downloading updates to ensure their software is working in the best manner possible. The project will also offer security services to the different firms that will acquire the HR Cloud technology. The shift to the internet and web-based activities have attracted various issues related to security. Hacking among other cyber related crimes has drastically increased hence the need for security services for such software. The company will, therefore, be constantly monitoring the systems to ensure there no chances for unwanted parties to access information stored in the databases. In case the software develops problems, the company will have a way to respond to issues from the clients and also provide repair services depending on the situation. Develop and detail a pricing strategy you will use Pricing strategy plays an important role in the determination of the success of a product. The target market has a major influence on the kind of pricing strategy a firm adapts. If the
- 17. firm, for instance, has its target market as people in the high socioeconomic class, then premium pricing would be the best pricing strategy to use. People in such economic status are associated with expensive commodities and may not be interested in cheap products despite the fact they can satisfy their needs. In this case, the product in question has firms in the consumer industry as the target market. As it is known, most organizations strive to reduce their expenses while ensuring they gain as much revenue as possible. Secondly, there are organizations already within the market who are also vendors of cloud technology. The best pricing strategy that should be embraced in this case is penetration pricing, which is significant for organizations striving to create a market share. As the name suggests, penetration pricing involves setting low prices, which acts as the main attraction to clients for the product or service offered by an organization (Hinterhuber, 2008). With penetration marketing, the product could gain a large market share within a short period, especially if the product is of high quality and effectively provides solutions to the various clients’ needs. In addition to penetration marketing, the project also focuses on price skimming, which will come once the company has gained a sizeable market share. Price skimming is a strategy where goods are charged higher due to the competitive advantage they have against other similar products in the market. The HR cloud computing technology proposed by this company will not only be software for employee management but will also have features for customer management. This is a unique feature the software will be accompanied with and, therefore, requiring the need for price skimming if the firm is to gain more revenue from the target market. The main pricing strategy will, however, be penetration marketing and once the customers have become loyal, then, price skimming will be introduced to enhance the revenue and profits of the company. Describe the promotion plan you will implement
- 18. Promotion plays an important role in the creation of awareness of products and services and also in the quest of an organization to expand its customer base. A successful promotional campaign requires a promotion plan that must consider certain steps. For this case, the first step would be the determination of the marketing communication opportunities. Assessment of these opportunities is mainly dependent on the target market. The results obtained from this assessment is crucial in ensuring the firm understands the best communication channels it should use. For this case, for example, the use of television media could prove to be expensive bearing the people targeted, who are mainly the Chief Executive Officers or other big influencers within organizations. Print media such as business magazines, business newspapers and direct mails could be better strategies to consider for this case. The next step should involve the determination of the objectives for the promotional campaign. The main objective for this case is awareness creation which is expected to lead to customer attraction to the product. The next step involves the determination of promotion mix the campaign will utilize, which will be followed by the development of the promotion message. A promotion budget should be determined, and finally, it would be important to assess the effectiveness of the campaign in achieving its main objective (Westwood, 2013). Identify the target locations with an assessment of their viability Most consumer goods companies are located in the cities and, therefore, New York City will be used as one of the target locations for the product in question. The HR cloud technology will be significant for small, medium and large-sized companies. The technology will, however, have more impact in medium to large sized companies which handle lots of data. Small companies could not have much data, and this could lead to the failure for small organizations to perceive the benefits of having the HR cloud technology. It is, however, important to help the small organizations to understand that they are in a
- 19. growth process and would with time require the cloud technology for data storage, manipulation, and retrieval. References Buyya, R., & Venugopal, S. (2008). Market-oriented cloud computing: Vision, hype, and reality for delivering it services as computing utilities. In High Performance Computing and Communications, 2008. HPCC'08. 10th IEEE International Conference on (pp. 5-13). Graham, H. (2008). Marketing strategy and competitive positioning. Pearson Education India. Hinterhuber, A. (2008). Customer value-based pricing strategies: why companies resist. Journal of business strategy, 29(4), 41-50. Westwood, J. (2013). How to write a marketing plan. Kogan Page Publishers.