Objectives  Operational is central to the allocation of resources.  It uses inputs from the marketing plan to scale operations in order to deliver what is set out in the marketing plan.  Operational Plan should contain,  Description of organizational structure including organizational chart.  Human resources: payroll and related costs account for a large part of operational expenditure.

Objectives  Operational plan is a spreadsheet includes:  Most operational items  Capital expenditure items  Physical items, such as office space, plant and machinery.

Objectives Operational Plan Main cost driver Marketing Plan Revenue driver

Legal form of business and other formalities  Legal form of the business:  Sole trader (proprietary)  Partnership  Limited liability partnership  Limited company

Legal form of business and other formalities  Legal form of business is important in terms of control and corporate governance.  Relationships between investors: by means of shareholder agreements.

Formalities: This is what you need to know to establish a new company  Company formation  Location of registered office  Appointment of accountant and auditor  Appointment of company secretary  Registration of business  Membership of industry associations  Registration with the tax authorities  Registration of internet domain name  Establishment of company bank account and payment facilities  Registration of trade marks

Functional Structure Board of Directors CEO Sales & Marketing Production Finance & Accounting PurchasingLogistics Human Resources General Admin

Matrix Structure Board of Directors Finance & Accounting Human Resources General Admin CEO Sales & Marketing ProductionPurchasingLogistics

Human Resources Management  Human resources issues to be addressed in the business plan include:  Appropriate staffing to cover shifts, holidays, illness.  Span of control, how many managers per staff.  Salary levels.  Are trained staff available or do staff need training.  Continuing training.  Recruitment costs.  Staff turnover.  Employment legislation (working hours, work environment, health and safety, pensions, redundancy).