Executive Summary
Project management is pivotal to business growth and development. In project management, project selection using a relevant tool is critical. Therefore, project managers should put emphasis on the best tool to use when selecting a project.
It is prudent to note that, project cycle should be followed appropriately to ensure the success of the project implemented in handled as stipulated. This paper takes a critical and succinct analysis of three projects and subsequent selection of one project for full implementation.
Project 1
- Productivity system analysis and management project. Productivity system analysis and management project is an online human resource management tool that will be used to analyze and manage employees’ productivity in the company.
- Purpose and Scope. The purpose of this project is to install an efficient employee productivity analysis and management tool. The project will cover Golden Tools Ltd Company stores in Dubai.
- Project Executive Summary. Productivity system analysis and management is an online human resource management tool used to analyze and manage employees’ productivity. This management tool comprises of software which takes a critical analysis of each employee performance and how to improve it.
- Project Objective. The project strives to ensure that productivity level is maintained high in the company so that the company continues to reap from the economies of scale associated with efficient and knowledgeable employee.
- Management. Management is pivotal for the success of a project (Deegan 2009). This is because management streamlines the operation and goal of the company towards achieving the prescribed vision. It is prudent to note that, employees play a fundamental role in overall performance of a company.
- Project Design Constraints. Financial constrain features prominently in this project.
- Future Contingencies. Future technological advancement poses a great challenge to the success of a project (Kotler and Keller 2009). This is because new technology will be required to maintain the desired success of the project.
- Points of Contact. The points of points of contact will include the following Project Manager, System Proponent, User Organization, Quality Assurance (QA) Manager, Security Manager, and Configuration Manager.
Project 2
- Launch of a new product. Project 2 is to launch a new washing detergent product in the market. The product is a house hold consumer product which will change washing forever.
- Purpose and Scope. The purpose of this project is to plan for launching of a new product in the market. The project will cover Golden Tools Ltd Company stores in Dubai, (U.A.E.) before it is rolled to other places around the globe.
- Project Executive Summary. A new washing product is necessary for household. This project will give consumer an opportunity to choose one the washing detergent.
- Project Objective. The project strives to ensure that the company sells high quality products for great customer satisfaction
- Project Design Constraints. Financial constrain features prominently in this project.
- Future Contingencies. Stiff competition in the market is the future contingencies.
- Points of Contact. The points of points of contact will include the following Project Manager, System Proponent, User Organization, Quality Assurance (QA) Manager, Security Manager, and Configuration Manager.
Project 3
- Customer Feedback Software Installation. Customer feedback software installation project is managerial software which will monitor customer purchasing trend, reaction and feedback. The information collected is needed for strategic planning.
- Purpose and Scope. The purpose of this project is to install an efficient Customer feedback software installation and management tool. The project will cover Golden Tools Ltd Company stores in Dubai.
- Project Executive Summary. Customer feedback is very important in plan as well product development. In this regard, this project strives to enhance customer data collection for adequate planning.
Project Objective
- Project Design Constraints. Customer feedback software installation requires technical knowledge which will ensure that some of the employees are taken for specialized training. Another constrain is time
- Future Contingencies. Future technological innovation may render the current software obsolete. Therefore, continuous upgrade will be necessary.
- Points of Contact. The points of points of contact will include the following Project Manager, System Proponent, User Organization, Quality Assurance (QA) Manager, Security Manager, and Configuration Manager.
Project selection
Project 1
Project 2
Project 3
Based on the above project selection metric, project 2 is more viable that the rest since it has high aggregate points on selection metrics.
Time Value of Money
Time Value of Money play a major role in the analysis of the concept of capital budgeting. The theory of Time Value of Money states that “having a dollar today is worth having a dollar a tomorrow” (Drury 1996, p. 61). Time factor is significant in the analysis of current and future returns in a business world which surrounded with several risks.
WACC
The Weighted Average Cost of Capital (WACC) is a critical element of capital budgeting. According to Drury (1996), “the Weighted Average Cost of Capital is a measure of how much a business needs to gain on its investments annually to maintain its current overall value”(71). Towards this, entities that offer loans or buy shares will expect a certain amount of return on their investment (Deegan 2009).
Internal Rate of Return
Internal Rate of Return (IRR) is a process used to find out the return percentage in a new business project that offers future cash flows. In the calculation of IRR, the application of annual projected payments and the initial investment is critical.
Capital Budgeting Issues
While carrying out capital budgeting, the calculation of the WACC should be done for the business and the calculation of IRR for the project to be undertaken (Reiss 2007). In a situation where the IRR is greater than the WACC, then it is a viable business project and should be pursued. It is prudent to note that, financial theory would recommend pursuing all projects that have an IRR in excess of WACC, but this should be done cautiously.
In addition, increasing of a company debt or selling more shares normally alters WACC since the expected return on debt and equity rise. This depicts that some projects that were profitable due to a higher IRR will no longer be viable. Demski (1994) explains that, “firms should consider the WACC not only on the basis of current return rates, but also on more debt or owners shares” (23). A critical and succinct analysis of Wheel Industries case study reveals a number of financial situations which forms the basis of the recommendation made.
Planning for product launch project
Research will be carried out to determine the market segment through the use of questionnaires. This oral tool of data collection gives a deeper insight to the issue in question in certain ways, for example, by giving the participants a channel to voice their challenges and their various ways of dealing with them.
The project will be implemented through proper planning and execution of tasks. The use of media and social network sites will be some of the calculated strategies for implementation. Fierce marketing strategies will be implemented prior to product launch to enhance awareness. Innovative TV adverts concerning the new product will be run on several leading TV channels in Dubai. In addition, marketing will also be done on social networks.
- Media publicity. Golden Tools Ltd will invest resources in media publicity and technology as marketing strategy. Advertisements on the Audio visual medium are significant as it gives company an opportunity to flaunt its products.
- Social media. Social networking sites as marketing tools provide a unique experience and feature that can only be taped by exploring the existing diversity. An innovative firm such as Toyota must tap in millions social network users globally. Kotler and Amstrong (2007) highlight that, “For resources to be in tune with the emerging opportunities there is need for dynamic marketing strategies” (38).
- Public Involvement. Employees and public are quite important in implementation process. In this regard, they will form part of the implementation strategy.
- Intermediaries. Globalization in the retail industry has yielded results due to the platform it has created in consolidation of the worldwide supply base. In the past, a number of international corporations either have shipped parts to their offshore affiliates or have relied on the local supply bases.
- Segmentation. Market segmentation is critical as a paradigm shift in marketing strategy in global retail industry. In this regard, The Company will concentrate in area where it has a great competitive advantage while at the same time penetrating new markets.
Target Table
Project Costing
Timescales for the implementation of the project
Conclusion
Project management is a critical process which requires serious planning and implementation of activities. Therefore, it is prudent to carry out a proper project selection using the best method. Similarly, tasks should be carried out on time to ensure that costs are incurred as budgeted.
This is because when tasks are carried outside the stipulated time there are cost implications which are incurred. In this regard, the above implementation of the product launch project will strictly follow the time frame for successful implementation.
Reference List
Deegan, C 2009, Financial accounting theory, 3rd edn, London, McGraw-Hill.
Demski, SJ 1994, Managerial uses of accounting information, New York, NY, Springer.
Drury, C 1996, Management and Cost Accounting, 4th edn, New York, NY, McGraw Hill/Irwin.
Guthrie, J & Parker, L 1990, ‘Corporate social disclosure practice’: A comparative international analysis’, Advances in Public Interest Accounting, vol.3, pp. 162.
Kotlar, P 2003, ‘Marketing insights from A to Z’, 80 concepts every manager needs to know. New York, NY, John Wiley and Sons.
Kotler, P & Keller, K 2009, A framework for marketing management. Philadelphia, Pearson International Edition.
Kotler, P & Amstrong, P 2007. Principles of Marketing. New York, NY,John Wiley and Sons
Reiss, G., 2007, Project management demystified. New York, NY,Routledge,