The Role of Project Planning - Coursework Example

?Project Plan and Report Executive Summary Project Planning plays a significant role in the success of any project. The size of the project may be small, but proper planning is required at every stage of the project. In this study the project plan of developing an online store is discussed. The various stages of project planning have been first discussed, so as to give an idea regarding the phases. Then the stages of developing Christmas Round the Corner has been evaluated, which contains the analysis of the stakeholders, an external environmental analysis or risk analysis, strategies to be implemented and the products to be delivered or offered to the customers for sales. It was also recommended that while planning the project, optimum utilization of resources should be done, the timeline is strictly followed and part-timers are recruited, so that the recruitment cost is reduced. Table of Contents Executive Summary 2 INTRODUCTION 5 Background 5 Scope of the Project 7 Method of Collecting Information 7 Limitations 7 DEVELOPING AN ONLINE CHRISTMAS GIFT STORE 7 Project Objectives 7 Products 8 Resources Required 8 Strategy and Implementation 9 Stakeholder Analysis 10 Risk Analysis 11 Milestones 13 Conclusion 14 Recommendation 14 References 15 Appendices 16 Appendix 1 16 INTRODUCTION Background Project planning is the science and art of utilizing the historical data, personal expertise, organizational knowledge and the project scope to depict the resource expenditure, cost, and the duration of a project. It also includes the development of guidelines in order to ensure the service quality, response to unfavourable events and commencing with the inevitable changes in the plan prepared for the project. In order to arrive at the estimated duration and cost of the project, the project manager identifies the numerous physical elements and activities that are necessary to meet the objectives of the project (Rad, and Anantatmula, 2005, p. 1). On the basis of this information the project manager estimates the requirements of the resources and the time length of the project. However, the estimation of the resources is done along with their cost estimation, as it is a valuable piece of information for the project team. The estimates of the resource are reduced to the cost. This is because total cost is more important information for the client. The project manager then finally computes the costs and completes the total estimation of the report (Haugan, 2002, p. 4-5). There are many different steps or stages through which a project passes to its completion or closure. Those set of stage would be described in this study through the development of an online Christmas gift store. Since Christmas gifts are sold before and during Christmas, so this online store opening, launching and operations can be considered a project, which would be described in detail based on the phases that would be described here. The different phases or stages in a project plan are: Defining: Before initiating the project the project manager should determine the goals of the project, ascertain the scopes, risks, budget, cost, timescale, and approach. It should also be communicated to the stakeholders of the company, and the difference in opinions should be resolved in the initial stage. Planning: Planning is very important part of any project plan. While creating the project plan, the first task that is undertaken by the project manager and his team is planning the stages and the minute details in the project. Executing: In this stage the project manager and his/her team would be executing or implementing the pre decided activities for the completion of the project on time and according to the design. Monitoring: After implementing the step wise project operations, the manager has to monitor whether the implementation has been done according to the framework designed or not. Controlling: Controlling ensures that the plans have been followed according to the stages decided and set by the project team. Closure: Once all the tasks are complete in the project and the purpose of floating the project is complete, the project is closed and all the team members conduct a post project analysis for identifying the flaws or short-comings. In each of these stages the project manager and his team has to perform different sets of activities. Each and every stage in the project planning is equally important and contributes in the overall accomplishment of the project. Scope of the Project This report aims to focus on the different aspects of project planning. For explaining the nuances of project planning the project plan of developing an online store is undertaken, so that the steps in the process of project planning can be better explained. Method of Collecting Information The data for the development of the project plan of launching an online store is collected mainly from the secondary sources, since primary sources generally do not reveal the true facts and figures of floating an online business. However, the sources chosen are authentic and can be considered for references. Limitations Since setting an online store and for business as a project and gathering information regarding the availability of information is a challenging task, so it can be said that limitations in terms of gathering resources have been faced. However, enough resources have been collected to support the project plan. DEVELOPING AN ONLINE CHRISTMAS GIFT STORE Project Objectives In this study the project is to develop an online store, so an online Christmas gift and candy store would be designed and developed for selling Christmas goodies before and during the Christmas month. The project manager or the owner of this online store would float this online store following the project planning stages that are prevalent. The name of this website would be “Christmas Round the Corner.” The objectives to be set for this project are: To make Christmas Round the Corner an iconic shopping interface for trendy and cute Christmas gift lovers. To establish an effective website, so that it can be also utilized in the near future if required. To allocate the resources well and minimize cost. To ensure on time delivery of products at customer’s door steps Products Christmas Round the Corner would be an online gift shop which would be selling the products like cake, candy, jingle bells, Santa clause, Santa caps, decorative items like candles, stars, models of Jesus Christ, Mother Marry, etc. Other items such as perfumes, bakery products, small home decor items, small electronic gadgets which can be gifted such as IPods, mobile accessories, etc would also be sold. Those products would be sold which are fast moving and the customers would find appropriate for gifting them to others. Resources Required This can be compared to the defining phase of project planning where the resources and the associated costs are ascertained. The resources that are required for setting up the online store for Christmas gifts called Christmas Round the Corner are stated below: 1. Capital Investment for setting up the business. 2. Website planning and designing – (contact a web designing company) 3. Sales force of 5-10 individuals 4. Stock of products to be displayed on website for quick delivery 5. Maintenance of a temporary office or warehouse where is product is to be stocked 6. Telecommunication framework for receiving customer orders, queries, complaints if any or feedback. Strategy and Implementation The owner of the company would be recruiting an accountant to handle the finances, and a team of 5-10 people for selling and delivering the products to the customers. Basically the products are sold online so there is no need for cold calling. In this case the function of the sales force is only to deliver the goods on time to the customers and receive payments from them. The owner would be handling the recruitment and co-ordination activities with the help of the accountant. The website would be designed and developed by a web designing company which would be bought by the owner. It would bear the name of Christmas Round the Corner and a smiling animated Santa Clause would be the logo for the website. The advertising for such an online store would be done through social networking sites and free online platforms. The print and visual advertisement can be also place. This is the planning and implementation phase of this project plan. Stakeholder Analysis Stakeholders of a company include any person or entity who have an interest on the company or can exercise their power in the various strategic decision making process by the company management. Stakeholders can be of different types and can have different levels of influence on an organization (Jeffs, 2008, p.107). Mendelow’s matrix is one of the strategic tools which could be utilised for identification, classification and analysis of the stakeholders of Christmas Round the Corner. Mendelow’s Matrix comprises of four quadrants, which divides or classifies the stakeholders of a company based on their interests and power exerted on the company as high or low. After the identification of the key stakeholders of Christmas Round the Corner, it could be divided amongst the four quadrants of the Mendelow’s Matrix (Batten, et al., 2012, p.39-41). The four quadrants could be classified as shown in Fig - 3 as: a) Quadrant A: high interest and low power, b) Quadrant B: low interest and high power, c) Quadrant C: low interest and low power, and d) Quadrant D: high interest and low power. Hence the stakeholders falling in Quadrant C would not have such significant impact on the profitability of Christmas Round the Corner. Those falling in Quadrant A would have serious impact and those falling in Quadrants B and D would have moderate level of impact on Christmas Round the Corner. Thus, the stakeholder analysis performed in this way would let us know Christmas Round the Corner’s different stakeholders and their impacts. Fig – 3: Mendelow’s matrix Low High High Power Low Interest Source: (Author’s Creation) The key stakeholders of Christmas Round the Corner are classified into the four categories of Mendelow’s Matrix as given below: Quadrant A: Owner of Christmas Round the Corner, Quadrant B: Customers, Suppliers. Quadrant C: Employees, Families of employees. Quadrant D: Collaborators, Competitors. Risk Analysis The risk analysis of Christmas Round the Corner can be evaluated by analysing external factors of Christmas Round the Corner. It is known as PESTEL analysis and it helps in the identification of the prospective customers and the potential customers for Christmas Round the Corner (Cowan, 2006, p.58). Political Analysis This financial crisis situation has resulted in minimising the purchase power of the people. Moreover the rising rate of unemployment has also de-motivated the customers to shop in Christmas like it used to be. Economic Analysis Financial crunch and recession prevailing in the country is a big de-motivating factor for the customers, and they are less willing to spend money for buying gifts for others. However, gifts purchasing for the near and dear once would be there because it is a tradition but the sales have reduced a lot. Sociological Analysis Christmas is one of the biggest festival or time of celebration, so every customer enjoy and spend money for buying gifts according to their range and limitations. Technological Analysis Buying gifts online have become a very common practice nowadays. The youngsters specially like shopping in a 24*7 environment where there would be no shopping hours. Moreover, they would also like to buy products and make payments online. Legal Analysis The legal aspects would include the permission that would be required for setting up a website and making tie-up with the banks for receiving online payments through the payment gateway of different banks. Environmental Analysis Since online shopping is an eco-friendly mode of shopping because it saves the useful resources that would have been used if the shop would have been there in the market, such as electricity, water, land, etc. Milestones Milestones are nothing but special events which can be considered during the life of the project. These are the success points which the project team remembers and draws example from. Since these are simple events than just activities, so they do not go on for a period of time. The major milestones that can be recorded for this project are stated below: 1st September 2012: The final project plan of developing Christmas Round the Corner was compiled. 15th October 2012: The whole sales team of Christmas Round the Corner was delivered their first induction training for the project. 1st November 2012: The online Store Christmas Round the Corner was launched. 10th November 2012: Christmas Round the Corner delivered its first lot of orders to the customers. Conclusion Product planning basically involves utilizing data and knowledge for evaluating the cost of a project and developing a framework to accomplish a given task. The project manager analyses resource requirements and length of time required for the project by understanding the information available. In this study we have developed the project plan of floating an online store called Christmas Round the Corner for selling Christmas goodies and gifts before and during the month of Christmas. For this the project objectives are identified, products to be sold are decided, resource requirements are evaluated, strategies and their implementation plans are made, stakeholder and risk analysis is done. Finally the milestones are recorded and a timeline or Gantt chart is prepared so that the tasks set are completed in a timely manner. Recommendation Based on the past information collection on project planning phases and the project plan prepared for developing the online store, the following recommendation can be stated: 1. Wastage of resources should be avoided through right planning and following each stages of the project planning process. 2. Understaffing and overstaffing both are harmful, so recruitment of part-timers would be recommended for the project. 3. Gantt chart or timeline should be strictly followed, to conclude the project within the pre-decided time frame. References Botten, N., 2012. Marketing for Stakeholders. Oxford: Butterworth-Heinemann. Cowan, N., 2006. Risk Analysis and Evaluation. 2nd ed. Kent: Institute of Financial Services. Haugan, G. T., 2002. Project Planning and Scheduling. Vienna: Management Concepts. Heldman, K., and Mangano, V., 2009. PMP Project Management Professional Exam Review Guide Serious skills. New Jersey: John Wiley & Sons. Jeffs, C., 2008. Strategic Management. California: SAGE Publications. Lewis, J. P., 2007. Fundamentals of Project Management. 3rd ed. New York: AMACOM. Rad, P. F., and Anantatmula, V. S., 2005. Project Planning Techniques. Vienna: Management Concepts. Appendices Appendix 1 Gantt chart Timeline         Particulars Month 1 Month 2 Month 3         Project Plan       Developing the company Logo & website       Launching the website       Promotion & Advertising       Recruitment       Training the Sales Force       Approaching Customers & Cold calling       Receiving orders from clients       Read More