You currently work for a retail store that carries basic household goods, some g

Question

You currently work for a retail store that carries basic household goods, some groceries, and health and beauty products. The store is located in the small community (approximately 5,000 total residents) in which you live and is looking to expand its operations in some way. For this assignment, you are required to develop a major project proposal to be undertaken by your employer. You may decide to expand your product offerings or open an additional store in an adjacent community, Project title Project manager (yourself) Problem definition or project rationale: Describe the problem or opportunity for improvement. Goal definition: Describe the project goals. Objective definition: Quantify the savings or benefits you expect from completing this project. How much will it cost (hours, materials, methods, equipment, etc.)? Estimate how long the project will take to complete. Resources: Identify the resources necessary to complete the project. Risk analysis: Identify the major risks associated with undertaking this project. How likely is it that these risks will occur? How will the project be impacted if these risks occur? Please use citations

Explanation / Answer

Project Proposal

Project Title: A Project to Open an Additional Retail Store in Adjacent Community

Project Manager: The project manager would be responsible for different tasks and functions in order to fully accomplish the objectives and aims of the project in an effective and proper manner. The main roles, functions and responsibilities of the project manager would involve the following in opening an additional retail store in the Adjacent Community.

The project manager would be fully responsible or liable for the management of store planning and development projects for corporate freestanding retail stores and retail partner counters. This responsibility includes proper execution and implementation for each Brand’s image in new stores/counters, remodels and retrofits including the creation of comprehensive bid documents. In addition to this, it should also be noted down that, the project manager would also provide leadership and guidance to direct reports and key business partners. In addition, the project manager would also responsible for reviewing all construction cost estimates included in all capital and non-capital related projects (Gido & Clements, 2014). Moreover, the manager would also ensure that all final closeout documents are complete and correct on a timely basis. In the same way, the project manager would perform certain roles and responsibilities in the fulfillment of goals and objectives associated with the project in an effective and systematic manner.

Problem Definition or Project Rationale: This stage of project proposal would describe the problem or opportunity for improvement. According to this step, the project manager and responsible persons would identify and examine the problem in the context of implementation o project. On the basis of the project, it is identifies that, the main problem is to implement the project or to open the retail store in the Adjacent Community. It is because, there is a tough completion in the retail industry and every organizations are offering quality products at the lower cost to the customers in order to attract more and more customers effectively. On the other hand, the other problem associated with the project may be the financing or fund that may affect the scope and success of the project directly or indirectly (Kerzner, 2013).

Goal Definition: The main goals of the project include the following:

To improve the organizational profitability, productivity, marketability, reputation in the market
To retain and attract more and more customer by using appropriate methods and strategies (Kloppenborg, 2014).
To enhance the level o customer satisfaction by offering quality projects and services at best possible price as compare to other retail firms
Objective Definition: The main and long term objectives associated with this project proposal are listed as below:

To become more efficient in business operation as a way to increase productivity
To grow business operation
To increase the market share, sales and revenues
In addition to this, it should also be noted down that, the project would be more beneficial for the customers as well as organization. For example, it would provide the opportunities to the organizations to enhance the profitability and market share effectively. On the other hand, customers would get product and services at the lowest cost with easy convince. Apart from this, it is estimated that this project would take approximate 4 to 5 months time period for the successful complementation and the expected cost for this project is estimated $ 45, 7894 including materials, methods and equipments (Newell& Grashina, 2004).   

Resources: There are several resources that would be required in order to achieve the associated outcomes successfully. The main resources are listed as below:

Financial: this includes money, shares and other assets

Physical: refers to tangible property such as equipment and office space

Human resources: includes the knowledge, training, experience, as well as the time of the business owner and employees

Technological: are embodied in a process, system or physical transformation such as Unique software products and tailored information system architecture (Spiess & Felding, 2008).

Reputation: encompasses the perceptions that people in the business' environment have of the business

Organizational: include the business' structure, routines and systems.

Risk Analysis: There are several types of risks that may affect the profitability, and marketability of the retail organization in the market. The main types of risks are given as below:

Interest rate risk: It is the hazard that investment rates or the intimated instability will change. Thus, this danger is the hazard that emerges for security holders from fluctuating investment rates. Changes in the interest rate cause the financial market risks of the firm or project. In the case of interest rate enhance, that means firm did not earn more money to its project because it required more money to pay interest on their debt or loan. Changes in interest rate would have impact on the cost of capital of the firms that impact on their overall earning. The interest rate swap is using as a hedging to reduce the effects of the interest rate risks on the project or firm. The swap interest rate is the rate of the fixed portion of interest rate that is not fluctuated according to the market (Marta & Brusuelas, 2010). In the swap interest rate two parties entering into the agreement.

Credit or Default risk: Credit risk is faced by a company if they taken loan and will be unable to pay interest or principle on its debt obligations. At the same time, credit risk may be high and low that is given by the global rating agency S&P as the State Government is rated AAA and the residual project debt is rated BBB (Saudagaran, 2009).

Political risk: In the case of changes in a country policies and unstable government in a country, political risk is created that impact on the value of project and performance of an international firm. In addition, political risk mainly impacts on the foreign investors and foreign country firms (Marta & Brusuelas, 2010).

Operational Risk: In the current time, operational risk is considered as non-financial risk because it is directly or indirectly related to the fraud, misconduct, failure of internal controls or audit systems, natural disasters. These types of risk may also affect the business and strategic decisions of the organization in the market (Hackbarth & Mauer, 2012).

Settlement risk: Settlement risk is the risk that counterparty does not deliver a security or its value in cash as per agreement when the security was traded after the other counterparty or counterparties have already delivered security or cash value as per the trade agreement.

Accounting Risk: It is one of the major types of risk that comes from the changes in GAAP/IFRS and comparability issues, managed earnings, etc. This can also influence the overall business decisions of the company (Holmen & Pramborg, 2009).

Other Risk: Regulatory risk, Legal risk (counterparty does not honor a contract), Tax risk

Performance netting risk, and Key Man risk are the main example of non financial risk that also affect the company and its performance in the market (Kamruzzaman, Begg, & Sarker, 2006).

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