London College of Accountancy and Management

EXTENDED DIPLOMA LEVEL 7

Unit 17 Project Development and Implementation for Strategic Managers

Submitted BY : ABIDNAWAZ SUBMITTED TO ARCHANA KARKI

Programme: BTEC Extended Diploma in Strategic Management & Leadership

Introduction of company
As I am going to start to introduce my company, where I am going to start a new project. The name of my company is A & A Autos. Here I am planning to start a project. This company was established in2004 in London South Pak Road. The owner of the company, Mr. Anjum had 10 years experience of auto mechanic. As he started this business, he faced too many problems in the begning but he was motivated to his work and worked with more devotion. It was aimed that it would help in adopting the global trends and will bring more investors in the industry for well-being and welfare of the nation. Later on, the further re-organization of the industry came up with the establishment of was considered as the commencement of the deregulation and privatization program within the telecommunication sector in Pakistan. This drove the telecom sector towards international competition and opened the doors for the private entrants which have been very successful till now. Now I decided to open a new M.O.T. centre in the same business point, so that they can get more profit from their business.

Project Definition
Doing projects is hip. At least, that's the impression one might get given the number of projects and project managers around. It's not that surprising when you keep in mind that our ever changing world asks for activities with ever increasing complexity. We have to keep reinventing the way we do things. Invent it, and then throw it away, because of it's obsolescence; what works one time, has no use a second time. It's the environment where projects survive as the fittest. As I told you before that I have decided to open a new M.O.T. centre in the same business point, so that they can get more profit from their business. In this project, the owner of the company would have to bear some expenses to have this project fill but after the completion of the project, the company will get a handsome revenue from the same business. When the M.O.T. will start in the same company, the more customers will come to this company to have their vehicles M.O.T. In this way, the company needs some more space because it needs more space to have the vehicles M.O.T. As there is much scope of this business in the market because the customers have to go very far for M.O.T. Similarly, there is not any M.O.T. centre near to this company so there is very much chances to earn great revenue from the same business. As there is only one company on the South park road so there is no competition for this business

Project Management Methods

There are two main and major methods of project development use in the world which are briefly described below. PRINCE 2: (Projects IN Controlled Environments) Developed in the UK and globally used. Projects IN Controlled Environments (PRINCE 2) is a process-based method for effective project management. The key features of PRINCE2 are: *Focus on business justification *A defined organisation structure for the project management team

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*Its product-based planning approach *Its emphasis on dividing the project into manageable and controllable stages *Its flexibility to be applied at a level appropriate to the project. PMBOK: (Project Mgmt. body of knowledge) Developed by the US Project Management Institute PMBOK is a collection of processes and knowledge areas generally accepted as best practice within the project management discipline. We are going to use PRINCE 2 method in our research and development of project. For the purpose of study and research I select one organization named A&A Autos. Owner of this company wants to enhance their business in the same field.

Cost effectiveness
Cost-effectiveness analysis is a form of economic analysis that compares the relative costs and outcomes (effects) of two or more courses of action. Cost-effectiveness analysis is distinct from cost[1] benefit analysis, which assigns a monetary value to the measure of effect. Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure (years of life, premature births averted, sight-years gained) and the numerator is the cost associated with the health gain. The most commonly used outcome measure is quality-adjusted life years (QALY). Cost-utility analysis is similar to cost-effectiveness analysis.

Staff availability
For this project, we need the staff as well because we have to do lot mor work to complete this project. Similarly, we also need the staff after the completion of this project. You will be allocated an induction mentor for the first few months of your employment. Your mentor will contact you shortly after you start to arrange your first meeting. The purpose of induction mentoring is to give you someone outside your line management structure with whom you can discuss any issues relating to the start of your career at the University.

Systems complexity
A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties (behaviour among the possible properties) not obvious from the properties of the [1] individual parts. A systems complexity may be of one of two forms: disorganized complexity and [2] organized complexity. In essence, disorganized complexity is a matter of a very large number of parts, and organized complexity is a matter of the subject system (quite possibly with only a limited number of parts) exhibiting emergent properties. Examples of complex systems for which complexity models have been developed include ant colonies, human economies and social structures, climate, nervous systems, cells and living things, including human beings, as well as modern energy or telecommunication infrastructures. Indeed, many systems of interest to humans are complex systems.

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Long term Benefits

After the completion of this project, We can get long tem benefits from the same business. Results from the longest running breast screening trial show that screening with mammography reduces the number of deaths from breast cancer. The study, by researchers at Queen Mary, University of London, shows that the number of deaths that are prevented goes up year after year. The results are new evidence of the long-term benefits of regular breast screening. .

Technological obsolescence

Technological Obsolescence is the state of being which occurs when an object, service or practice is no longer wanted even though it may still be in good working order. Obsolescence frequently occurs because a replacement has become available that is superior in one or more aspects. Obsolete refers to something that is already disused or discarded, or antiquated. Typically, obsolescence is preceded by a gradual decline in popularity.

Environmental factors
Apart from the true monogenic genetic disorders, environmental factors may determine the development of disease in those genetically predisposed to a particular condition. Stress, physical and mental abuse, diet, exposure to toxins, pathogens, radiation and chemicals found in almost all personal care products and household cleaners are common environmental factors that determine a large segment of non-hereditary disease. Environmental factors such as the weather affect business interests. If a disease process is concluded to be the result of a combination of genetic and environmental factor influences, its etiological origin can be referred to as having a multifactor pattern. An example of an environmental trigger would be a component of a human's drinking water which holds the possibility of activating (triggering) a change in a person's body. These changes are mainly negative ones. Using this example, what is in the drinking water may affect one person entirely different than another -- someone may be affected greatly, whereas someone may not be at all.

SWOT Analysis for A&A Autos

SWOT1 analyses are a way of strategically planning to evaluate the strengths, weaknesses, opportunities and threats of a business. Strengths Strengths are those characteristics of the business who gave it an advantage over others in same industry. 1. High Quality Products A&A Autos focused on premium quality of products. Kanpur Limited does have good repute in the market. They supply to retailers and consumers as well.

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2. Consumer Services Kanpur Limited delivers customer services at zenith level. It has strength to provide satisfactory customer service to its consumers. Buyers like their products and customer service. 3. Skilled People Kanpur Limited hired skilled persons to deliver their products and services professionally. They offer customer support services to make ease for them. Weaknesses Weaknesses place the firm at disadvantage relative to others. Weakness of a company always gives strength to the competitor. Competitors get competitive advantage over your weaknesses. 1- Limited Geographic Focus Their focus on the market is too narrow. It means they did not think about other regions of UK. They have to look in other parts. 2- Centralized Management CEO has all the powers to organize all administrative and operational decisions in terms of their naturalization till approval. 3- Limited Financial Resources A&A Autos has limited financial resources they need to arrange as they look to go for expansion. Finance is a key element for boost up their business. Opportunities Opportunities always relate to the market and give up chance to make great sales or profit. 1. Scope in Market A&A Autos supply artificial jewellery and garments to local retailers and customers. It needs to look around and see here is a scope in the market as they supply artificial jewellery and garments to the market it can be expand with home textile, institutional garments may be with addition of cosmetic products as relate to jewellery. 2. Unexplored Markets Area Here, are other market areas those are not explored by Kanpur Limited. A&A Autos can easily expand itself in those market areas to generate revenue as other traders. 3. High Demand Demand for their products in the market is a great opportunity for A&A Autos. Garments and jewellery are regular products those are sold in the market. Threats External factor came from market it could cause trouble for a company. 1. Narrow Focus London CAM Page 5

Narrow focusing means they left a gap in the market as they did not pay head to other areas of the markets. It may become a threat to A&A Autos as its competitor may fill that gap before it. 2. Competition A&A Autos has to face lot of competition in the market. It has to make their strategies to get competitive advantage. In this condition it may create low price war with competitors. It is also possible that competitors may get better access to distribution channels. Work break down structure Every project required time frame for its completion. Work breakdown structure help us to define the time required for each task because several tasks are involved in each project. So this exercise is the best way of discovering the work that must be done, as well as determining the resources required and allocating resources in the optimum way. It also helps to sequencing the tasks according to their priorities and show the dependence/independence of task to each other. Sr # Task Possible Start Length Dependent On 1 Analysis of company week 1 1 week 2 Register as an Importer week 2 2 weeks 1 3 Contracts with banks for Funds and Facilities week 4 2 weeks 2 4 Establishment of Office week 6 4 weeks 3 5 Contract with Manufacturer/Exporters for Import week 10 2 week 4 6 Arrangement and develop Warehouse week 11 4 week 4 7 Contract with Shipping line and Agents week 10 1 weeks 4 8 Contract with Custom Clearing Agents 9 Inspection Team in exporter country week 12 3 weeks 5 10 Advertisement for Whole Sales Business week 12 4 weeks 11 Arrangement of Out bound Logistics week 15 1 week It is shown from the above mentioned structure total project is required almost 16 weeks (4 month) task one is based on the availability of data and market research and also meeting with stakeholders. Task two bases on result of analysis and permission from stakeholders and executive and related with government authorities. The documentation for this task is done within 4 working days and application is submitted and almost one and half week waits only for results. Task three is related with financial institution and base on import registration certificate. We may take initiative but financial institution starts their processing after receiving certificate and minimum they take two week for the approval of limits for over drafts and credits. After the arrangement of funds the construction/development of office is start as well as the process of hiring people is started. The complete establishment of office and appointment of staff take s minimum 1 month (4 week). Work on Task 5, 7 and 8 started at the same time they are independent from each other and only depend on the completion of task 4. Task 6 is the arrangement and establishment warehouse is only depend on the availability of funds and but it required at the end when the shipment reach and need to be unload London CAM Page 6

so it is started in 12 week and take four week for completion. Task 9 is depends upon the task 5 in which country and city contract made with manufacturer and exporters. Task 10 is a marketing of goods it depend on the establishing and hiring of staff in task 4. Task 11 is fulfilled on urgent basis but for long term contract it takes on week.

COST BREAK DOWN STRUCTURE

Tasks Cost 1 Analysis of company 1,000.00 2 Register as an Importer 500.00 3 Contracts with banks for Funds and Facilities 300.00 4 Establishment of Office 7,000.00 5 Contract with Manufacturer/Exporters for Import 6 Arrangement and develop Warehouse 5,000.00 7 Contract with Shipping line and Agents 8 Contract with Custom Clearing Agents 9 Inspection Team in exporter country 1,500.00 10 Advertisement for Whole Sales Business 2,000.00 11 Arrangement of Out bound Logistics 2,500.00 Total Cost 19,800.00 There are four different types of methods for project cost estimates > Definitive estimates. It aims to be accurate to within 5% + - tolerance > Feasibility estimates. It is calculated with accuracy of 10% + - tolerance in the early stage of project. > Comparative estimates. It depends upon the comparison of previous experience. > Ball-park estimates this is rough idea, guide to the project costs with 25% +- tolerance and usually made before starting project we use the ball-park estimation of cost because our project is on very initial stages like in the mind of executive and due to shortage of time I have not enough time for its research and make it more accurate task 5,7 and 8 required no direct cost/fees. Only the salary of staff and utilities cost involve thats why I mention 0 costs. According to the requirement of the project Kanpur Limited wants to go for whole sales business and take advantage to earn more profits by expanding their product line. They use backward integration by eliminating middleman to import and purchasing goods direct from manufacturer of these products from overseas and make arrangement for the business requirement. Detailed structure of the work to be done is as follows. First of all they need to register themselves as a commercial importer. For this they need to register with HMRC as a commercial importer before they import anything. According to UKs legislation it is an essential part. In UK there are some import controls on different goods2. London CAM Page 7

Licence to import also depends were the goods are from. Goods from EU countries may require minimal documentation. It is a compulsion to get register before go to import anything in the country. Registration with HMRC is a legal document that may help the company to show its status in any case of continence. After getting this status you would be allowed legally to import your desired product and resale it to the wholesalers, retailers, and individuals even to the customers directly. If someone goes to import before or without import certificate, this is called illegal activity. Contracts with Banks for Funds and Facilities To, go for whole sales business and act as an importer. Availability of funds is necessary. To fulfil business requirement they have to make some contracts with banks. Money always play vital role to any business and create chances to earn profit, Ask for funds to do so. Cash is King is phenomena to explain the Importance of cash in a business. It is a large list of cash requirements like you have to available cash before making an order to the supplier you have to available cash to bear expenditures to receive your goods in shape of consignment/shipment, loading unloading, customs clearance, freight charges, transportation charges, warehouse hiring expenditures, recruiting staff for warehouse and business expenses, storage expenses, and at last delivery expenses etc. To fulfil all mentioned above requirements we need to see any financial institute and discuss to say alright upon giving you the solution. Banks also provide other services on behalf of their customers. They provide a facility to give and receive your international incomes and payments. They exchange important and precious documents and transactions securely. Funding is necessary for inorganic growth. Availability of capital and sense of usage can boost a company even if others feel difficult to survive. Establishment of Office and Hiring Staff In this phase Kanpur Limited require to make a department setup for import matters and locate an office for it. It needs to hire a staff for foreign affairs and internal matters. To fulfil the requirement they need to arrange it. 1- Arrangement for Office 2- People recruitment They need to locate an office according to their business requirement. They will recruit some professionals to handle all matters either those are related to outside the country or inside the country. They will help to resolve the problems between Kanpur Limited and supplier. This department plays a role like a middleman and trying to get benefit to the organization. Contract with manufacturer/Exporters for Import They need to do contract with some exporters (overseas) As they going to expand as whole seller to do so company needs to do contract with others companies who are willing to sell their products. They have to see again about the product they want to add or expand and the scope of the product in the market. Contract between exporter and importer give protection to both companies. Contract would call a legal document that contain all information required and terms and conditions of sales and purchase like when, where and how to produce and provide required product. Arrangement for Warehouse Businesses need space to store their products. Warehouses arranged to fulfil their needs and make ease to supply their products to the customers either they are businesses or individuals. Pay attention to the factors involved in the arrangement of warehouse. Here are some key factors are illustrated below,

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a- Location b- Access c- Security d- Maintenance cost e- Labour cost etc. Consider all factors and bear in mind while choosing a warehouse. As location of warehouse is most important because you have to consider it in the middle of your business activities where you can easily and supply your products in each reign/area from warehouse. It is also important to choose a site that will gave you comfort to arrange and manage transportation to or from your warehouse. From security point of view it is important to discuss before selecting a location for warehouse. Other relevant issues are also discussed before choosing it like labour cost, security cost, and maintenance costs etc. Contract with Shipping Lines and Agents As an importer you must have an agreement with any shipping line to get handled your shipments. At least one shipping line required to do your business activities. Shipping lines provides services for consignment handling. Shipping lines provide all the documents related to the consignment and look after consignments. Shipping lines do agreements with companies who seek for sending or receiving shipments. They sign a contract between the importer/exporter and itself. Shipping lines take responsibility to give your consignment to the port. They provide all consignment relevant documents to the port and custom clearing agent/person. Lot of shipping companies are working in worldwide. All those are performing basic similar functions. Contract with Custom Clearing Agents Companies also need to make a contract with custom clearing agents for the clearance of the consignment. At this stage custom clearing agents provide services to release the consignment. Agents release consignment after inspection and completing all the procedures. Custom authorities inspect consignments and relevant documents to confirm shipment and for official records take samples of the products. There are many other issues related with the clearance of the shipment. Port authorities also check consignments for safety and security purposes as well as to control and secure systems. It takes some time to release the shipment. Inspection Team in Exporter Country Kanpur limited also need to see for inspection team to visit suppliers and see product manufacturing process and inspect our products at that state. If you think something is not according to our agreement or contract, let us know and make note on it. Inspection teams are formulating to stop a damaged and low quality product at manufacturing stage. Sometimes it happened and need to stop by inspecting consignment at manufacturing stage most of the part corrected. Therefore with the arrangements of all these things business overheads will increase like by adding inspection team you would be responsible to pay them. Inspection team mostly and usually perform their duties to overseas and help to get high level error free products. Marketing and Advertisement When you setup the entire object and put together you need to pay full attention for marketing campaign for wholesales business. Marketing is most important tool to get the customers attract. London CAM Page 9

Marketing of any product relies upon marketing mix that is the combination of 4Ps Product, Price, Place and promotion. Each element of 4Ps has its own attraction and value. All components of marketing mix are related to each other. Product itself is the first element of marketing mix that expresses the core product it may be tangible or intangible. People buy products and compare them with their own needs and desires. Product actually fulfils customers needs and desires. It has a direct relation with customers demands. Second element of marketing mix is price. As, price explains the cost of value that customer will achieve. Customer spent money to get a product there in fact customer compare its (products) price with its own satisfaction that he/she will get from the product. Place is the third component of marketing mix it is also important. It shows that how and where we can display our product and ask for sales. Promotion is the last component of marketing mix. Promotions may be done by advertising on multimedia, news network or by any other means of advertisement. All these tools work together. Out Bound Logistics It is the type of equipment and transportation used for loading and unloading of goods in warehouse and vehicles are used for the delivery of good to retailers shops and other institution like hotel and hospital that makes the bulk purchase. They need only one vehicle for supply purpose. Shipping lines agents arrange the delivery of goods to our ware house. CONCLUSIONS A&A Autos is doing a business as auto mechanic to their consumers with high quality services. A&A Autos think to go wider and expand itself to get profit. To do so company take a step to import goods from manufacturers and supply them to the customers. This step will effect positively on profit margin. Elimination of middle man will increase profit margin and bring prosperity also give strength to the company. Company can get competitive advantage.

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REFERENCES
Basu, P.K. (1994) Demystifying Privatization in Developing Countries International Journal of PublicSector Management, Vol. 7(3), pp. 44-55 Berg, A. and Berg, E. (1997) Methods of Privatization Journal of International Affairs, 50 (1), pp. 357 (34) Bokhari, S. A. (1998) History & Evolution of Privatisation In Pakistan, [WWW] Available from: Erben, P.and Novak, A. (1996) Standard Methods of Privatization in Slovakia: Legislation, Fraser, R (eds.) (1988) Privatization: The UK Experience and International Trends. Essex: Longman Group. Borucka-Arctowa, M. (1994) Social Consciousness in Transition: Toward a New Economic and Political System, In: Alexander, G.S & Skapska, G. eds. A Fourth Way? Privatization, Property, and The Emergence of New Market Economies, London: Routledge. Gupta, A. (2000) Beyond Privatization Hampshire, Macmillan Press Limited. Hood, C (1994) Explaining Economic Policy Reversal, Buckingham: Open University Press. Jahanzeb et al (2007) Churn Management in the Telecom Industry of Pakistan: A Comparitive Study of Ufone and Telenor The Journal of Database Marketing & Customer Strategy Management, Vol. 14(2), pp. 120-129(10) Kettl, D.F. (1993), Sharing Power: Public Governance and Private Markets, Washington, The Brookings Institution. Miller, R.R. (2000), Doing Business In Newly Privatized Markets Global Opportunities and Challenges, Westport, Quorum Books. Martin, B. (1993) In The Public Interest London, Zed Books Limited Pirie, M. (1988) Privatization: Theory, Practice and Choice, Hants, Wildwood House Limited Prosser, T. and Moran, M. (1994) Privatization and Regulatory Change : The Case of Great Britian, In: M. Moran and T. Prosser (eds), Privatization and Regulatory Change in Europe, Buckingham: Open University Press. Parker, D. (1986) Ownership Change and Improved Performance: Identifying the Critical factors for Performance Improvement, British Journal of Management Vol. 6(1), pp. 29-43

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