Question

Discuss the key elements of an operating plan. Why are these important? What are some of the reasons why a company would need additional funds for a project? What are lumpy assets? Explain agency conflicts, what can be done to prevent this from occurring/

Answer 1

The operational plan is essential in the development and realization of set objectives by the companies and firms. The operational plan has specific goals, the actions undertaken in realizing the set goals, and human resources utilized in achieving the set goals (Battaglia & Massimo et al., 137). The precise objectives are outcomes of the final expectations in a firm. The activities to be delivered are also outlined in the operational plan; these may incorporate branding, processing, packaging, and marketing. The quality of commodities and services to be offered is also outlined. Human resource is essential in every company; these involve staffing and budget requirements, which ensure effective planning. The implementation of timetables helps eradicate delays in implementation of the company activities, and the various levels of employees are aware of their duties and expectations by top managers.

 The operational plan is essential in ensuring the firm's performance is monitored to curb losses and enhance employee effectiveness. Companies may require additional funds in running their affairs; this results from unexpected losses resulting from weather changes and natural calamities like heavy rains. Additionally, fund estimates may fail to incorporate unexpected losses like insurance of employees in instances of accidents. Lumpy assets are the resources that cannot be obtained in small increments; they are acquired in discrete and large units (Alvarez, Fernando & Francesco., 767). Agency conflicts are encountered when one entity or person makes decisions that affect another entity or person (Dey & Ayesha., 1161). The conflicts may arise from diverse management types; the elected leaders and company managers make negotiations that impact outcomes hence curbing disputes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The operational plan is essential in the development and realization of set objectives by the companies and firms.