SCOPE STATEMENT

The scope statement will be logically set out using the Logical Framework Analysis (LFA)
technique as it is easy to understand and will ensure all aspects are covered as well as
ensuring all unnecessary topics are left out. The 7 steps are:
1. Participation Analysis
2. Problem Tree Analysis
3. Objectives Tree Analysis
4. Alternative Analysis
5. Project Elements
6. External Factors
7. Indicators














PROJECT LFA
1. PARTICIPATION ANALYSIS
Institutions Interest Groups Other
Banking Institutions
Media
Government
Big Business
Local Residents
Local Businesss
Investors
Groups needing more in depth analysis are:
Government
Local Residents and Local Businesses
Government Local Residents and Local
Businesses
Problem Low Economic activity
Decentralization
Population lack access to
funding to invest in area
General Area degradation
Concentration of Illegal
Immigrants
Building Hi Jacking
Non-repayment



Lack access to mortgage
bonds
High Bad Debt concentration
Properties are devaluating as
general area degrade
No investment in area
Crime
Building Hi Jacking

Interests Increase Economic Activity Access to financing
Upgrade of Area
Potentials Policy making has largest influence

Have a big influence over
effectiveness of methods
implemented
Linkages Need to collaborate with local
residents, local businesses and big
business to increase the economic
activity in the stated areas
This will upgrade areas and lower
risk of investing and to the access of
mortgage bond loans.
Lowering of the risk from high risk
category is dependent on
implementation of Methods
proposed

This Participation Analysis shows that the Primary focus should be on the Government
and their influence over the situation. The government has the greatest potential impact
on all the relevant stakes and so will ensure that all requirements are met.
Areas High Risk For Banks and Lack of Investment Opportunities
2. PROBLEM TREE ANALYSIS

















HIGHER
LEVEL
EFFECT
DIRECT
EFFECTS
DIRECT
CAUSES
ROOT CAUSE
HIGH CRIME
RATES
BUILDING
HI JACKING
AREA
DEGREDATIO
N
LOAN
DEFAULTMEN
TS
RECKLESS LENDING
(HIGH LEVELS OF
BAD DEBT)

MOVEMENT OF
ECONOMIC HUB OUT OF
CITY CENTER

LACK OF
DISPOSABLE
INCOME

LOW INCOME
PEOPLE AND
ACTIVITIES
MOVING INTO
COLLAR

DECENTRALIZATION
OUT OF COLLAR

LOW ECONOMIC
ACTIVITY IN COLLAR

SMALLER
BUSINESSES
STRUGGLING FROM
LOWER TURNOVERS
GLOBAL
ECONOMY
SLOWED

TREND OF CORPORATE
INVESTERS MOVE OUT
OF CBD
GLOBAL
RECESSION

LACK OF
UNDERSTANDING OF
DEBT AND
ASSOCCIATED
OBLIGATIONS AND
EFFECTS
FOCAL PROBLEM
AREAS RISK LEVEL REDUCED AND INCREASE
ATTRACTIVNESS AND OPPORTUNITIES FOR EXTERNAL
INVESTMENT
3. OBJECTIVES TRESS ANALYSIS















HIGHER
LEVEL
EFFECT
DIRECT
EFFECTS
FOCAL OBJECTIVE
REDUCE
CRIME RATES
RECLAIM HI
JACKED
BUILDINGS
UPGRADE
AREAS
REDUCE
INSTANCES OF
LOAN
DEFAULTMENTS
STOP SUB
PRIME LENDING

HIGHER INCOME
PEOPLE AND
ACTIVITIES
ATTRACTED BACK
INTO THE COLLAR

INCRESE
DISPOSABLE
INCOME
ATTRACT CORPORATE
INVESTORS AND BIG
BUSINESS INTO
COLLAR
INCREASED
ECONMONIC
ACTIVITY IN
URBAN COLLAR

RECENTRALOZATION
INTO URBAN COLLAR
JOB OPPORTUNITIES
OPEN UP AND
SMALLER BUSINESSES
FLOURISH

EDUCATE EXISTING
PEOPLE ON DEBT
AND ITS EFFECTS

REDUCE EFFECT
OF GLOBAL
RECESSION

ESTABLISH
GOOD MORALS
TO AVOID
RECKLESS
LENDING

ESTABLISH GOOD
MORALS TO AVOID
RECKLESS LENDING

MOVEMENT OF
ECONMOIC HUB
BACKMINTO CENTER
4. ALTERNATIVES ANALYSIS
Alternative 1: Deals with changing the behavior of people involved to stimulate the economy
Alternative 2: Deals with attracting economy stimulating activities into the area
Criteria Alternative 1 Alternative 2 Remarks
Chances of Success Low High Extremely difficult to
change the current
culture which has
become common place
Cost High High Both costs will be high
Cost/benefit Low High Greater benefit from
Alternative 2 as brings
needed external
investment in to solve
the problem and
stimulate growth.
Time Horizon Long Medium Alternative 1 will take
generations to fix the
problem.
Capacity of
PM Consultants
No Yes Alternative 1 will
require external social
and behavior
specialists.
Alternative 2 requires a
facilitation role in
implementing.
Social Risk High Low Alternative 1 seeks to
change social behavior
which could have
adverse impacts

Alternative 1 seeks to change the behavior of the people that resulted in the current situation. Even
if it is successful it will only stop or slow the current rate of decline and will take many generations
to first recover from the defecate before any improvement can occur.
Therefore Alternate 2 will be the focus going forward.







5. PROJECT ELEMENTS
6. EXTERNAL FACTORS
7. INDICATORS
DEVELOPMENTAL
OBJECTIVE
Upgrade the Johannesburg
Urban Collar
INDICATORS
High risk
category
removed
EXTRENAL
FACTORS
Increasing
economic activity
will upgrade collar

IMMEDIATE
OBJECTIVE
Identify all relevant factors
and alternate financial
solutions for input into
developing implementation
plan
All required
documents
received
Can influence
current policies

OUTPUTS
Analysis of current
situation
Proposed financial
solutions
Analysis of proposed
solutions
Report containing all of
the above
Report
completed and
to required
schedule
Credible resources
required
Current economic
stability


ACTIVITIES
Research current situation
Research problems with
bond defaultment and
culture of non payment
Research innovative
financial solutions
Identify most appropriate
solutions
Assess feasibility of most
appropriate solutions
Prepare report
INPUTS
Funds to prepare
report 200-
300hours
Meeting and
discussions
Success dependent
on willingness of
corporations to
participate