Topic: Project Development and Implementation for Strategic Managers
Pages: 12, Double spaced
Sources: 2
Order type: Essay
Subject: Business
Style: APA
Language: English (U.K.)
Please follow instruction within the file uploaded.
1. You should write this assignment as a formal report 2. Please focus on a strategic project in the organization that you are working in or in a local Hong Kong organization that you can have access to the relevant information. 3. You MUST underpin your analysis and evaluation of the key issues with appropriate and wide ranging academic research and ensure this is referenced using the Bournemouth University(BU)Harvard system. The ‘My Study Skills’area contains the following useful resources; Study Skills Guide (containing a BU Harvard Referencing section) and a BU Harvard Referencing Interactive Tutorial. You must use the BU Harvard Referencing method in your assignment. 4. You should use diagrams and tables of figures where appropriate ensuring to reference their source using the BU Harvard Referencing method. 5. You are required to write your assignment within 3,500words in order for your research and summarising skills to be developed, and for effective time management. You are required to ensure that the assignment addresses all of the assessment tasks. In the interests of good academic practice, an assignment submitted with excessive word counts (i.e. more than 10% in excess of the limit) will be returned to you. You will be given a maximum of 48 hours to edit the work to reduce the word count to the permitted maximum. In the event that the submission is still regarded as excessively long then, in line with advice received from Pearson, we will be unable to accept it for marking and you will receive a Refer grade for Non-Submission. The word count excludes the title page, reference list and appendices. Where assessment questions have been reprinted from the assessment brief these will also be excluded from the word count. ALL other printed words ARE included in the word count. Printed words include those contained within charts and tables.
PROJECT DEVELOPMENT AND IMPLEMENTATION FOR STRATEGIC MANAGERS
AC1.1 : Factors that Contribute to the process of project selection
About company and project
Colourmix Cosmetics Company Limited is a Hong Kong based Cosmetics Company dealing with production and retailing of cosmetics products in Hong Kong and South Asia in general. The company is introducing a new product into the market, called Healcream, a multifunctional body lotion with the ability to repair broken skin, prevent sunburns, improve skin moisture, improve smoothness, and cause skin to glow among others.
Internal and external factors influencing project selection
Good leadership in a company may result in a good organizational culture that promotes employee value, good communication and positive working environment. Talented, skilled and motivated employees may produce good results and their innovative nature may lead to invention of a new process or product for the market (Zakic, Jovanovic & Stamatovic 2008). Other internal factors such as financial resources, company location, physical resources and processes may enable the organization to realise the need to start a project.
Using the PESTLE analysis tool, external factors such as political, environmental, social, technological, legal and ethical factors may create the need for new products or services. Technology advancement may lead to improvement in production processes, while economy may increase demands for certain goods that the company may provide (Cheung & Lee 2012). Social factors such as need for women to appear more beautiful and attractive for their jobs will be of great advantage for the success of the product. The company has got similar products such as Olays and Pureheals, which are doing well after their inception. The concern for physical appearance has increased among working women in Hong Kong, many of them serving in the service sectors where they meet customers on a daily basis (Chan 2004). There are large multinationals with big branches and carrying out wholesale and retail services in the region such as Project E Beauty, Sa Sa, and Li and Fung Inc. among others which offers great competition.
Task 2: Project Specification
AC 1.2 Outline project specifications for the implementation of a new product
The company generates an annual revenue of $15.7 million or $122 million Hong Kong dollars, whereby the cosmetic industry in Hong Kong is worth $2 billion (U.S. Commercial Services 2015). The new product will improve the company’s earnings to $29 million and put it in a better position to capture a good share of the market. The local cosmetics companies control around 20% of the market, with skin care products being the most actively bought cosmetics product (Tsang 2016). The company will seek to meet legislation requirements such as product registration, tax adjustments and quality control measurements, but may be free from other restrictions and regulations such as labelling requirements, value added tax or import duties (U.S. Commercial Services 2015).
According to a market research done in Hong Kong, consumers prefer products in smaller packaging for easy carriage in bags (U.S. Commercial Services 2015). The growth of internet and use of social media has become an important marketing tool for the advertisement of the product, and encouragement of word of mouth among consumers in Hong Kong (Cheung & Lee 2012). The sale and distribution of cosmetics products in Hong Kong will be easier by using local distributors and retailers (U.S. Commercial Services 2015). Hong Kong also acts as a platform through which products can be sold to China because of the large number of tourists that visit the city every year (U.S. Commercial Services 2015). The company has 100 employees who are highly skilled and talented in their areas.
AC 1.3 Specification for an agreed project to implement a new product
Research shows that local consumers prefer more locally produced goods, with good packaging, naming and of quality services (U.S. Commercial Services 2015). In terms of timescale, the project will take six months to implement. This will require putting in place production process of the new product, ordering supplies of raw materials, training employees, packaging materials, promotion and distributing them to major stores. In the scale of operation, the company will seek to hit a target of 10,000 to 20,000 bottles of the products per month. This will translate to a revenue of $2 – $4 million per month. The finance officer will make required adjustments in terms of taxes, and registration of the new product. The production, quality assurance and packaging and branding teams will ensure the product meets quality standards and legal requirements set by the Foods and Drugs Regulations (Cap. 132W). The labelling by FDR includes name of product, list of ingredients, indication of “best before”, condition of storage, name and address of manufacturer, weight, and use of language relevant with consumers.
Importance of project specification
Project specification helps in providing details of deliverables, operations and functionalities of the project. It specifies the needs of the project such as the project definition, finances, scope, forecasts, market size, consumer expectations, estimated costs and possible risks among others (Lock 2014, pg. 01). Specifications act like a blue print for a project which makes it easier for the people tasked with developing certain aspects of the project get easy time. It is easy to estimate the cost, time, resources and scope of the project using the information from the project specification document. Project specification usually consist of several elements such as costs, quality, scale of operation, and time frame, which are important in the development of the project as they provide the nitty-gritty that define profitability of the project.
Task 3: Project Plan
AC 2.1 Project Plan for an agreed project
The project plan and work breakdown structure (WBS) of the project are shown below.
Strategy implementation
Critical Path Method (CPM) will be used in the implementation strategy. It is the sequential management technique that determines the timeframe the project will take to complete a particular task. Therefore, it helps in determining the shortest time possible for the project completion by analysing what should be done and when. It will ensure that the project is progressing within the stipulated period and within the target cost. Delay in any task within the project will lead to delay in the time delivery of the entire project.
Task 4: Implementing the Project
AC 3.1 Implementation of the project to the agreed specification
Project Team Structure
Implementation of Documents
Some of the documents needed for implementation during project implementation phase will include project manual, justification of budget costs, budget justification instructions, maturity sheet, project closure manual, and progress report. Project manual contains all information about the project and the nitty-gritty that remained during planning that can be effected during implementation. The project manager can also use the justification of budget document to understand how finances were allocated and used.
TRIZ theory
Theory of Inventive Problem Solving is based on logical and data problem solving which drastically improves the project team creativity in finding solutions to problems. It studies forms of problems and solutions and therefore, comes up with applicable ways to solve them. In new product development process, there is usually a point where the next possible step to be taken is unclear hence the importance of the TRIZ theory. Through the description of the development process, a solution is found thus enhancing the product development. New products undergo almost similar repetitive problems and through TRIZ theory patterns of problem-solving solutions are identified.
Monitoring project progress and change control
There are several tools that could be useful in monitoring and controlling projects. Earned Value Management (EVM) tool used to monitor the actual performance of the project in terms of costs and schedule (Sharma 2013). One can use it to review the project is performing according to the budget and make necessary controls to avoid overspending. Forecasting is used to determine future performance of a project, while To Complete Performance Index (TCPI) can be used to complete a project according to budget whenever it has delayed or over-budgeted. Performance review is a tool used to check the performance of a project in terms of cost and schedule. A Deliverable List could also be useful in noting down progresses, finished tasks and delayed activities (Sharma 2013). Computer softwares such as Microsoft project, Basecamp, Project.net and EMDESK could also be useful alternatives.
Task 5: Evaluating Project Outcomes
AC 4.1 Outcomes the project
Project evaluation phase is important in assessing the viability and success of the project after its completion.
Procedures used
Trend analysis is used to perform project evaluation by comparing reports of the performance of the project over several periods. Performance measurement is done by comparing what was measure in the project specification against what has actually been achieved. This requires calculating the planned value, actual cost and earned value of the project. The project cost, time, schedule and risk were compared against the expenditure, actual time taken to meet certain objectives, meeting the schedules and the outcome of the anticipated risks. This information could be good in evaluating the project using statistical and dynamic methods to test its viability such as the payback period, accounts for comparative cost and profit, net present value, internal rate of return and the profitability index methods. Schedule elements such as distribution, legislation, advertising and ordering were evaluated for their impact using reports generated by team leaders who headed these departments (McConnel 2010). Legislation and quality control requirements are compared against standards provided by their respective bodies such as the FDR.
AC 4.2 Project outcomes
After implementing the evaluation procedures described above, the outcomes showed that the market was receptacle to locally produced goods. The monthly sales was 10,500 against a projected sales of 10,000 units. The actual time taken to accomplish the project was seven months, which was according to the project schedule. The project total cost was $98,000 instead of the projected budget of $100,000. The use of the transport, logistics, sales and marketing, finance and production teams inherent from the company as envisaged in the project schedule, saved a lot of money, as the use of the critical path method and lean project management made it easy to beat deadlines and use less resources (McConnel 2010). The EVM tool was essential in the evaluation process as it helped in ensuring the project proceeded according to the budget, and identified places where the teams can make necessary amendments for the project to succeed.
AC 5.1 Presentation and recommendations for further projects
The presentation of the project proposal to senior managers will involve submission of this report and project documents such as project manual, justification of budget estimates and maturity sheet. The senior managers will receive comprehensive report of statistical evaluation outcome such as account comparable profits, payback period and NPV to enable them make decisions concerning the project. A brief presentation describing the development and performance of the project will be provided to the managers, and they will receive a comprehensive report regarding cost, schedule, quality, risks, performance and change of the product in the whole process. A summary of the economic viability and future projection of the profitability of the project to the company will also be provided for them to make informed decision.
AC. 5.2
Recommendations for the project included the use of extensive marketing and promotion of the product to try and convince the consumers that the multipurpose lotion is better than the single purposed products. The project manager can then increase capacity as the project can return all investments as it does not have big overhead costs.
Evaluation of the project, based on the specification, aims at ensuring that the entire management team are involved in the delivery of the project to its required specification. The involvement of the senior management would ensure that the required amount of money needed to deliver the project is needed. The new product requires $100,000 and would require the approval of the executive management, thus, the necessity to involve the entire management team. The senior management are also crucial in making management decision on what needs to be added to the project and amendments that ought to take place based on the project procedures and schedule. The recommendation for the future projects would require a detailed market research and establishment of a market analysis report that would inform the management of the necessary amendments being undertaken. Additionally, there is need to pilot a new product and determine how the market would react to the new product that is being introduced in the market. Third, the cosmetic products are often sold more based on the value of its brand and the celebrity endorsements. Therefore, there is need to incorporate celebrity endorsements of the new brand to facilitate market penetration and ensure that the sales of the new product are relatively high in the market.
Extensive marketing and promotions is also another recommendation that needs to be considered for the new product being introduced in the market. The social media provides a platform for extensive marketing. The internet use is relatively high in Hong Kong with many people having access to e-commerce and social media services. Therefore, there is need to use the social media as a platform for informing the target audience on the new product being developed by the company. The target market for the product is mainly working females. The target market can easily be reached through the social media, thus, the justification for the social media platforms.
The problem with the actual performance of the project is the presentation of regular performance of the product. The change in demographic trends and the changes in the customer preferences may not reflect in the regular performance reports within the organization. Additionally, there is need to offer a presentation to the management in a PowerPoint format detailing the factors that contribute to the process selection, project specifications, implementation of the new project, project plan and project team structure.
These are some of the statistics from the project.
References
CHAN, K.T. (2004) The more the better? Consumer preference on multifunctional cosmetics.
Cheung, C.M. and Lee, M.K. (2012) What drives consumers to spread electronic word of mouth in online consumer-opinion platforms. Decision support systems, 53(1), pp.218-225.
Dvir, D., Raz, T. and Shenhar, A.J. (2003) An empirical analysis of the relationship between project planning and project success. International journal of project management, 21(2), pp.89-95.
Hwang, B.G. and Ng, W.J. (2013) Project management knowledge and skills for green construction: Overcoming challenges. International Journal of Project Management, 31(2), pp.272-284.
Lock, M.D. (2014) The essentials of project management. Ashgate Publishing, Ltd..
Moran, R.T. and Youngdahl, W.E. (2008) Leading global projects: for professional and accidental project leaders. Routledge.
McConnell, E., 2010. Project Management Methodology: Definition, Types, Examples. MyMG. Retrieved from: http://www.mymanagementguide.com/basics/project-methodology-definition/. Accessed 18 may 2017).
Sharma, R. (2013) Tools Used to Monitor and Control Costs in Projects. Retrieved from: http://www.brighthubpm.com/monitoring-projects/57317-tools-used-to-monitor-and-control-costs-in-projects/.
Tasevska, F., Damij, T. and Damij, N. (2014) Project planning practices based on enterprise resource planning systems in small and medium enterprises—A case study from the Republic of Macedonia. International journal of project management, 32(3), pp.529-539.
Tsang, A. (2016) Cosmetics and Toiletries Industry in Hong Kong. Retrieved from: http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Cosmetics-and-Toiletries-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X006S6I.htm.
US. Commercial Service. (2015) Cosmetics & Toiletries Market Overviews 2015. Compiled by U.S. Commercial Service Hong Kong.
Zakić, N., Jovanović, A. and Stamatović, M. (2008) External and internal factors аffеcting the product and business process innovation. Union University, Faculty of Entrepreneurial Business, Belgrade. Facta Universitatis Series: Economics and Organization, 5(1), pp.17-29.
Zwikael, O., Pathak, R.D., Singh, G. and Ahmed, S. (2014) The moderating effect of risk on the relationship between planning and success. International Journal of Project Management, 32(3), pp.435-441.
