An Organisation Breakdown Structure Information Technology Essay

INTRODUCTION

Starbucks is a multinational coffeehouse chain based in USA, with hundreds of stores across 40 countries. Starbucks is moving into Indian markets and offering beverages products to satisfy the needs and wants of the target segment. Currently Starbucks defines success in terms of profit, margins, sales and new store count. According to Starbucks, project management provides them to plan, managing resource to bring out the successful completion of specific goals into structured management approach to achieve business purpose.

PLANNING THE PROJECT

Project generally subdivided into several key tasks into manageable sections. These key phases or stages to provide better management control for successful completion. These project phases or stages are called the project life-cycle. There six phases are

Definition

Feasibility

Planning

Implementation and Execution

Handover and Closure

Evaluation

Definition Phase

Once the project has been initiated it needs to be gives clarified, evaluated, planned and make sure that project is delivered within defined constraints.The project is about establish and marketing strategy of Starbucks, Hyderabad, India

Objectives

To introduce a new coffee house experience

Create aesthetically upgraded cafeteria with a very pleasant, modern and warm environment within 50 days of duration

To form the Marketing team and Production team so that the every aspect is been touched

Unique presentation with modern technologies and infrastructure

Best marketing strategy to compete the competitor market

Selection of appropriate medium for publicity is chosen like print media and electronic media

Free samples will be distributed initially to give the touch of taste the products

Constantly improve the customer service level and the quality control of the products by employing the best and maintain highly trained and committed employees

Giving international experience and standards to the customer

SUCCESS CRITERIA

Project success criteria in terms of cost, time, customer service and quality

To achieve 50% of market share of this product line

Making overall customer satisfaction

Making prompt response to customer requests

Taking corrective action to meet customer requirements

Making additional resources available to meet project milestones and deadlines

Measuring overall customer satisfaction

Fully satisfying stakeholders

Providing development opportunities for project team members

Project team satisfaction

Project Management Environment

The project environment directly affects the project and has effective measures to manage them. To understand this environment involves identifying the project stakeholders and their ability to affect the outcome of the project

Stakeholder Analysis

*Project stakeholder is individuals and organization that are actively involved in the project or whose interests may be affected as a result of project execution or project completion.

In definition stage clearly identifies that the purpose of the project is to meet the stakeholder’s needs and expectations. Stakeholder analysis has the goal of developing cooperation between the stakeholder and the project team, ultimately, assuring successful outcomes for the project. Stakeholder management is critical to the success of every project in every organization.

It is important to identify all stakeholders for the purpose of identifying the project success criteria and turning these into quality goals.

Stakeholder interests are to look at the power they exert. The greater the power of a stakeholder group, the greater its influence will be on strategy. Following are some of the identified stakeholders of the project plan

Internal Stakeholder

External Stakeholder

Employees

manager

owners

Suppliers

Government (through taxation and spending)

Creditors

Shareholder

Customers

Society

Media

Competitors

Feasibility Stage

In feasibility stage is the basis on which decision is made whether to support or reject the project. Project appraisal and investment decision are based on the feasibility stage. Feasibility study is crucial during the early development of project and form a vital component in the business development process. Accounting and Advisory feasibility studies enable organizations to assess the viability, cost and benefits of projects before financial resources are allocated. There is little need to consider for success of the project.

Market feasibility

This is the first Starbucks store in Hyderabad; Coffee consumption is increase due young generation they constitute about 60% of total population in the Hyderabad. The market structure is oligopolistic competition few international and domestic companies are dominated. In Hyderabad tourists account for a relatively large percentage of total attendance; however, there are a number of tourist destination areas, such as the Charminar, Golconda Fort, Hussain Sagar where tourists account for the majority of attendees at a these places, Starbucks is well known among foreigners

Environmental Feasibility

The store is located in the centre of the city; it is easy to dispose the waste material and having proper sanitation facilities for kitchen. Hence it is in favor of environment.

Technical Feasibility

By constructing a web-based medium to reach individual consumers for online orders, Giving free high speed internet service to the customers is the first concept in the Hyderabad. Coffee beans are locally available in India has international standards so there is no production barriers. Coffee vending machine is easily available in the market.

Operational feasibility

In Hyderabad there is plenty of skilled and semi skilled human resource available in the market to work for the organization. The launch of the store in starting of April 2010 this is summer time this can be advantage for the project because, most of university and colleges are closed this can be hangout place for the students.

Funding

The funding can be raised through the various sources i.e.

Cash reserves (money held in bank)

Borrowing as from bank or other financial institution

Issuing debenture or loan stock

Whereas the funding for the project is one from the cash reserves which is about £45,000 and £45,000 can be made available from bank loan.

Economic feasibility

Economic analysis is the most frequently used method for evaluating the effectiveness of a project. More commonly known as COST/ BENEFITS ANALYSIS, the procedure is to determine the benefits and savings that are expected from project and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system. Economic feasibility analysis is used for evaluating the effectiveness of the proposed project.

Cost / Benefits analysis:

Reconciling the needs of different stakeholders and the need to either exploit or minimize the impact of the marketing of the product has impact upon the cost and revenue. For this project, a wide range of cost and value drivers need to be considered.

The goal of the project is to maximize organization’s revenue by:

Increasing the number of seminars before the project start and make people buy the products during the seminar.

Selling the price online.

Giving the welcome drinks and toys for the children this creates an impression

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Distribution of free sample to the customers to check response from them.

Expenditures mainly consist of maintenance and staffing cost

Financial Feasibility

According to Dennis Lock, managers frequently have to make decisions on whether or not to authorise investment in a project. There are few common approaches to financial appraisal. This analysis involves projections of revenue, operating expenses, net operating income and an assessment of overall feasibility. The appraiser has to have a good estimate of the amount and timing of each significant item of expenditure and the revenue or saving expected.

Payback Period- This method focuses on recovering the cost of investments.

Payback period = Cost of project / Annual cash inflows

= £121,000/ £45,000

= 2.7 years

Here the investment for this project is £ 121,000 and the expected returns of the project amount annually are £ 45,000. So the company can expect to recover its investment in 2.7 years. The project payback period it seems quite satisfactory to acceptable.

See appendix for calculation

Internal Rate of Return (IRR)

The IRR is a capital budgeting metric used by firms to decide whether or not they should invest in particular project. It is the value of discounted factor when the NPV is zero. The internal rate of return for implementing the project should range between 22%-25%. In general the IRR is greater than the project cost of capital

this project will add value to investors.

Revenue Projections

The project revenue is a product of two factors: (1) attendance; and (2) per capita spending. In attendance process involves identifying the store attendance depending on local weather conditions and occasion like holidays. Per capita spending is maximizing total spending in store.

Planning Phase

The primary function of a project plan is to serve the project manager as a map to the route from project start to finish. According to Denis Lock project planning, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. the durations for the various tasks necessary to complete the work are listed and grouped into a work breakdown structure. The logical dependencies between tasks are defined using an activity network diagram that enables identification of the critical path

Work Breakdown Structure

It is a hierarchical chart that accounts for the individual parts of a project; it is a bottom-up estimation tool for the planning process. The WBS usually forms the basis for creating a full project schedule with dependencies. Lock. D. Project Management, (2007). The Work breakdown structure of the project is shown WBS diagram.

In first phase of the WBS is analysis the market condition this include market segment, market share of the project, who are the competitors in the market, estimating the demand for the product and as well as the market forecasting investigation of the market opportunities and threats (risks).

In the second phase of the WBS are the resources are Brand of the project this well recognized in the world, second one is the quality of the product , this project is recognized for quality and taste and third one is the team they employing for the project as well as production purpose.

Budget now can be made according to the external market, market position and what is required in the market and once we are sure about the availability of funds we can precede formulating our marketing plan

In the fourth WBS phase the market planning, in this step we will decide what is marketing plan for the project i.e. the mode of publicity, time span for publicity and mode of publicity like modern technology like digital marketing on Web based medium, publicity phase involving print medium and electronic medium.

In the final phase of the WBS launching of the store by a celebrity film star of the local region, organising the press conference and guest party. Distributing the free sample to the guest and near by passing crowd and shops located near to store.

For WBS please see Appendix

Scheduling

Schedule management includes the process required to ensure the project timely completion. The network diagram is that provides the project team with visibility and control over the project schedule. It helps to determine the total duration of the project and its critical path .The network diagram list the activity that must be finished before the other activity can start, it shows the machinery and suspension process can be start along with the origin and assembly process whereas at Pre assembly stage these stages combine together and continues till the end of project. On the other hand diagram shows the critical path, it is the critical activities that must claim priority for resources and management attention.

The duration of the project to complete in 45 days from start date of the project

Please see Appendix-1

Gantt chart

Gantt chart of this project it gives the relationship between the each task, Dates run along the top in increasing order. The time scale is given on the chart shown as a horizontal bar whose length is proportional to the time required for the task completion. This chart shows the start date, Finish date, slack time and resource allocation for each task. By see the Gantt chart we can say the status of each activity.

For Gantt chart please see Appendix-2

Organisation Breakdown Structure

According to Greenwood OBS reflects the way the project is functionally organized. The OBS indicates the organizational relationship and used as a framework for assigning work responsibilities. The OBS is structured by responsible department and performing department at the lowest level. This performing department level was the responsibility and resource is needed to achieve project objectives. The OBS helps manage focus on establish the most efficient organization by consideration of availability and capability.

For OBS please see Appendix -3

Cost Breakdown Structure

The cost model of a product in the market is the total of all the assets used for the marketing before the addition of the market up for profit.CBS used to continuously compare costs as they actually occur with the budget. The total cost from beginning of marketing and finishing of the project has been £121,000 .Although some activities might override the assigned budget but certain activities have been given certain margin to cover them up.

Health and Safety Policy

The project is committed to improve health and safety arrangements in the workplace, the Project manager objective to reduce the incidence of these to an absolute minimum.Good health and safety standards are a fundamental part of showing every colleague the individual respect they deserve and continually looking to improve in this area Employees have a duty to exercise personal responsibility for their own Health and Safety and others who may be affected by their work activities i.e. consumers. The support of all employees is required to ensure the success of the Company’s Health and Safety Policy.

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There some of the responsibilities assign to project manager to whole team for the safe run of project and safety of the consumers.

We have introduced a rehabilitation process focusing on areas such as physiotherapy to enable colleagues to return to full work activities after any accident or long-term sickness absence.

All the bakery, dairy product, coffee items are providing non- Genetically Engineered Foods

Provide proper information, instructions, training and supervision to enable employees to deliver proper and full guidance related to the usage of any product and machinery effectively and efficiently

Provide and maintain adequate first aid and emergency facilities.

Provide all the safety equipment like apron, gloves, mask etc

Giving all information of beverages and food details.

Implement and maintain suitable emergency procedures, specific to the environment they are working in as over exposure to heat

Maintain a constant and continuing interest in health and safety matters applicable to the production activities

Waste material is recycled and disposed

Risk Analysis and Management Plan

Project Risk Analysis and Management is a process which enables the analysis and management of the risks associated with a project in order to remove or reduce the risks.

Risk Plan matrix

Risk Area

Potential risk

Likelihood

Impact of the Risk

Mitigation

Actions

Person Responsibility

Financial risk

Investment for the project

L

H

To borrow project loan from the banks for business

purpose

PM/Owner

Economic slow down

M

H

Reducing the price of the product

PM/Owner

Competitors

Domestic / International competitors

M

H

-Giving a high quality of service

PM and Marketing manager

Price

High product price

H

H

– Procure raw material from the local market

– Monitoring the pricing strategy used by the competitors

PM

Operational risks

Health and safety

H

H

– Installation of fire alarm and exhaust

– proper design of sanitation

– Visible sign boards

PM

Operational risks

Organizational culture results in low productivity, poor performance and lack of

innovation

M

H

-Strengthening our leadership

-Developing our organizational culture

-Improving our

internal ways of working

PM /

Team

Damage and lost

Theft

M

M

Installation of CCTVs

Security personal

Communal violence/terrorist attack

L

H

Monitoring daily the situation through the News agencies

PM

Quality management plan

The necessary benchmark has been set by the Starbucks for the minimum guaranteed quality which must be followed throughout the project and must comply with the international quality standards.

To make sure the quality fulfilments of the Starbucks quality and giving stakeholders confidence

To maintain the expectations standards of Starbucks quality of their products and their customer service this will create loyal customers

To maintain friendly environment with good music, comfortable chairs this create Starbucks experience

Regular surveys are done with the teams in and around the project to avoid even a minute negligence.

ISO standards is a generic model of project for quality process that must be instantiated

All provide the extensive training approaches this allows employees to think and act independently with innovation for both benefit to the

Customer and the company

Meeting the health and safety requirements

Keeping the work area safe and clean

Proper installation of sanitations, fire exhaust and signboards

Quality of the services provided during the seminar

Proper arrangement of the facility during the seminars

Quality of the services provided during the seminar guest

Publicity is done keeping in mind all the modes those are easily accessible to public

Quality Control System

 Project team is involved in developing systems to ensure that the product is designed, produced and presented in the market accordingly to meet or exceed customer requirements. The quality control plan has been made by listing the sequence of work, performance requirements along with the schedule. 

Quality Improvement: These cover product improvement, process improvement and people based improvement. Through the system breakdown structure people from various departments have been assigned with quality tasks where they will work together to ensure the quality of the assigned task. 

Project Communication Plan

For the success of Starbucks project, communication and consultation at every stage they should be frequent meeting to exchange information and instruction about project objectives, change of plan, status, progress and requirement. Project manager must monitor project process and take action to ensure that project stay on track. Any problem related to the project will be discussed and addressed properly in maintaining transparency with project team.

What

Target

Purpose

Frequency

Communication

Vehicle

Initiation meeting

Distribute project plan

Status report

Team Meetings/

Sponsor Meetings

All stakeholders

All stakeholders

All stakeholders/

project team

Entire Project Team/ Sponsors

Gather information and discuss the action plan

Distribute plan to stakeholders of project

Update stakeholders on progress of the project

To review detailed plans (tasks, assignments, and action items)/ Manager Update Sponsor(s) on status and discuss critical issues.  Seek approval for changes to Project Plan.

Before project start

Distribute project plan

Regularly Scheduled

Regularly scheduled

Meeting

Giving documents

Distribute electronically and post via web

Meeting

Leadership Style

Leadership Style is a one of the potential success factors for both project and project manager, Leadership is the ability to persuade others to work specified goals. It is also viewed as a process of influencing the team members so that they contribute enthusiastically to the attainment of organization objectives. Desirable leadership styles of project manager

Maintain the final decision making authority

Utilize the knowledge and skills of your team members

Project Monitoring and Control

The purpose of the PMC is to provide an understanding of the project progress Project tracking is performed on a regular basis, team meeting on the different project levels with protocols, agenda and action plan, cost, deadlines and work progresses as well as risk are tracked Project reporting is done on monthly basis to management and within the team using reporting tool. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan.

Configuration Management plan

It involves the triangle of objective .i.e. Performance, time and cost

Performance

Time Cost

Monitoring and Controlling in our project involves-

Measuring the ongoing project activities

Monitor resources provided and used

Monitor the knowledge and skills of project personnel.

Monitor risks against those identified in the project plan.

Periodically review the project progress, performance, and issues.

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Take corrective action on identified issues.

Monitoring the project variables (cost, time, efforts) against the project management plan and the project performance baseline

Identify and involve the relevant stakeholders of the project monitoring and control process as planned.

 Conflict Management: 

Ways Project deal with conflict

There is no one best way to deal with conflicts. It depends on the current situation.

Here are the major ways that people use to deal with conflicts.

The turtle (withdrawing)

Turtles withdraw into their shells to avoid conflicts; they give up their personal goals and relationships. They stay away from the issues over which the conflict is taking place and from the persons they are in conflict with. Turtles believe it is hopeless to try and resolve conflicts.

The shark (forcing)

Sharks try to overpower opponents by forcing them to accept their solutions to the conflict. Their goals are highly important to them and relationships of minor importance. They seek to achieve their goals at all costs. They are not concerned with the needs of others. They do not care if others like to accept them. This gives them a sense of pride and achievement

The teddy bears (smoothing)

To teddy bears the relationship is of great importance while their own goals are of little importance. Teddies want to be accepted and liked by other people. They think that conflict should be avoided in favor of harmony and that people cannot discuss conflicts without

The Compromising Fox: Foxes use a compromising conflict management style; concern is for goals and relationships. They are willing to sacrifice some of their goals while persuading others to give up part of theirs. Compromise is assertive and cooperative-result is either win-lose or lose-lose

The Collaborating Owl: Owls use a collaborating or problem confronting conflict management style valuing their goals and relationships. They view conflicts as problems to be solved finding solutions agreeable to all sides (win-win)

Effect of Conflict on the project performance

HIGH

Level

Of

Organization

Performance

LOW

LOW High

To little conflict causes Too much conflict causes

Performance to suffer performance to suffer

Handover & Closure

The Project closure report is produced at the end of the Project, and provides the Project Board with a review of the overall Project and an assessment of how successfully the Project has met its objectives. The project owner needs to study this report in detail and should ensure that the project has successfully delivered its objectives as discussed before even starting the actual project

Project closure involves finalizing all project activities that have been completed. It also includes establish procedures to coordinate verification and documentation of project deliverables, formalize the acceptance project deliverables and document reasons for actions taken if an activity is terminated before completion

Project output acceptance

Administrative closure

Involves detailing all of the actives, interactions, roles and responsibility of the project team, stakeholder involved in project Implementation. It also includes collecting project records, analyzing project successes or failure, gathering lessons learned and archiving information for the organization or project team’s future use

Contract closure

Includes all actives to settle and close any contract agreement. This procedure involves both project verification i.e. checking that all work has been completed correctly. When contracts are completed i.e. when the final product is delivered according to the agreed specification-the project team will have to indicate acceptance of the product. Usually acceptance is signified formally with a document explicitly expressing acceptance through the signature of all parties concerned.

Evaluation 

At the end of the project (before project closure),an evolution is conducted to provide a systematic and objective assessment of the project design, implementation and results and to determine the relevance and fulfillment of objectives, development efficiency, effectiveness, impact and sustainability The value of technique, even if not strictly followed, is that it systematise thinking and organise information about project problems and causes. The analysis can be done by gathering information through questionnaires or interviews about the forces facilitating and hindering project performance. For individual projects it is necessary to identify the specific forces – procedures, systems or behaviour and attitudes of individual and groups that help or hinder the project. All the parties have to be included in the survey that involved in the project or affected by the project problem.

Conclusion 

At the conclusion of this report it can be said that the project was a good success, completed on time, with in the budget and keeping all the quality standards in mind.

Reflective Statement 

Starbucks India is operating only in four metros, this is the first store to operate in the Hyderabad, New to this market

Staff-

Availability of properly trained team who have experience in the marketing Starbucks

Giving training to employed team on the coffee making and bakery items it takes some time to get perfection

Recruitment of the skilled and unskilled in a little time

Schedule-

Marketing campaign of project having duration only 20 days only,

Cost-

Marketing campaign is to be designed within the budget allocation

Revised schedule and budget due to change in weather condition and increase in price of raw material used.

Location-

To find a suitable area to fulfil all the aspects of the project objectives

Invitation-

Preparing the invitation guest list for the inauguration by considering all section of the society

Launching

During in initial stage of the project chief guest for launching day was Cricketer V.V.S Laxman due hectic schedule for his match he not will to come we

Quality issues-

Quality standards were not up to the expectations the response from the consumers is poor.

Quality of the products and customer service

Seminar Hall arrangements and presentation

Successful closing of the seminar

Taken to correct/avoid-

Require checking of the products and project progress.

Require checking products samples have been tested to check any allergens in them.

Competitors-

Analysis the local competitor is very difficult because there low prize strategy.

 Health & Safety issues-

The store is located at the center of city it more expose of the dust and pollution

APPENDIX-1

Product Schedule

Tasks

Duration

Start date

End date

A. Market opportunities

10

01/06/2010

11/06/2010

A1.Market segment

2

01/06/2010

03/06/2010

A2.Competitors

2

01/06/2010

03/06/2010

A3.Demand analysis

4

04/06/2010

08/06/2010

A4.Risk Plan

4

05/06/2010

09/06/2010

B. Resources

8

05/06/2010

13/06/2010

B1.Brand

1

05/06/2010

06/06/2010

B2.Quality

6

05/06/2010

11/06/2010

B3.Team

6

05/06/2010

11/06/2010

C. Budget

6

01/06/2010

07/06/2010

D. Marketing plan

20

07/06/2010

27/06/2010

D1.Target market region

5

04/06/2010

09/06/2010

D2.Publicity Time plan

2

07/06/2010

09/06/2010

D3.Mode of publicity

20

07/06/2010

27/06/2010

E. Launch day

1

07/06/2010

08/06/2010

Appendix-2

Gantt chart

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