Part 3; Budget and Risk Management

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Nov 24, 2024

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1 Part 3; Budget and Risk Management Student’s Name Institutional Affiliation Course Assignment Due Date

2 Part 3; Budget and Risk Management Overall Project Budget Activity Budgeted Amount Construction of the company website $2,000.00 Building of the grocery shop $5,000.00 Furnishing the grocery store $3,500.00 Preliminary account of the store $13,500.00 Marketing policy for the business $3,000.00 Total $27,000.00 Table 1: Chart showing the funding of the project The estimated budget total for the project is $27,000. The scheme will commence with the development of a grocery website to ensure that the goods are accessible to customers virtually. The management will have to recruit a professional web designer to develop the interactive platform. The scheme will also involve the preliminary scenery up of the store. The management will build the grocery store, furnish it and later procure the preliminary stock. When the business will begin its operations in Houston, the management will develop a productive marketing strategy that will promote brand recognition. Capitalizing in marketing will ensure augmented sales capacity and expedite development. These information is documented in table 1. Project Requirements There are five project requirements that will be considered to ensure this project becomes effective or successful. These requirements include project scope, to clearly identify the constraints that could evolve as the project unfolds. The project will need to have elaborate objectives that will act as a pivot point that will examine the direction of the project. The fourth project requirement is to have a project schedule. The final project requirement is to have an

3 elaborate work breakdown structure to showcase the process of setting up the new project of grocery business. On project scope, the company must ensure that quality grocery is accessible to all clients who desire to shop for groceries. It will increase convenience and brand exposure to a greater clientele base as opposed to the limited traditional brick-and-mortar grocery business. Going digital will also ensure the company receives feedback from clients so that they can improve the quality of grocery products. The website must be SEO-Optimized to ensure 100 users daily. Upsurge the figure of workers and the organization to 20 people in the second operation month. Finally, augment the number of clients who make purchase requests for groceries from the firm in Houston in the initial 6 months of the process through the implementation of a robust marketing strategy. It is also important to be cognizant of the constraints that might hinder the successful development of the project. One of the constraints may include; a lack of teamwork by the executive level. The other constraint in the project is changing laws that govern companies. The project schedule will involve numerous investors taking various tasks in ensuring the success in setting up the new project. The project should commence in September with the staff assuming diverse roles in the various assigned tasks. Cost Management Plan Task Minutes/hours it takes to complete the The days it takes to complete Hourly rate The total cost

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4 task the task Hiring competent individuals to take various roles in running the business 360minutes/144 hours to complete the task 6 days $5.5 $5.5 x144h ($792) SEO-Optimize the grocery website to ensure 100 users daily. 840 min/336h 14 days $7.25 $7.25x336h($2,436) Supplier Evaluation and Qualification Process 900 min/ 360 h 15 days $5 $5.0 x 360h($1,800) Building an interactive organizational website and social media pages 1440min/576h 24 days $9.5 $9.5 x 576h ($5,472) Looking for a viable place in Houston and facilitating the physical construction of the grocery store 840min/336h 14 days $6 $6.0 x 336h ($2,016) Total cost plan $12,516.00 Table 2: Chart showing the cost management plan of major tasks Contingency Plan Our contingency plan will seek to provide an alternative route to address several risks like increased competition, and failure of the management to execute their tasks appropriately. Many individuals are investing in the grocery business in Houston and this could lead to customers opting for the procurement of cheap goods. The competition might affect the firm’s

5 revenues. To address this, our contingency plan would involve performing a rent-buy for greenhouse farms where we would be farming grocery inputs like tomatoes, onions, greens, carrots, etc. This will help us to decrease the expenses involved by paying our suppliers, and meager profits since we will be compelled to sell the grocery products at a cheaper rate due to increased competition. This is a viable contingency plan as Houston is known to have vast farms around that could be used for greenhouse farming or natural farming. The general management will be involved in this contingency plan. To address the second identified risk concerning inept management is by designing a employee monitoring software. The staff will be required to log in to the system every morning at 8 a.m. The human resource manager will monitor the flow of activities of the senior management to ensure they are effective and deliver on their mandate. The human resource management will also ascribe scores to the staff and the data will help them make informed promotion and demotion decisions. The software will also enhance team productivity and synergy for our remote, hybrid and office workforces. The human resource manager will be involved in the second contingency plan. Risk Management Matrix Risk Low Medium High Increased competition ✔ Failure of the management to execute their tasks appropriately ✔ Employee resistance ✔

6 to changes in the organization. Table 2: Chart showing the risk grading of the identified risks. Change Management Process There are several components of change management that will be considered for this project. The first one is leadership alignment. The executive staff in the department where change is being mauled must inform the other team members through a memo. There should be room for them to express their views regarding the proposed change. Before, making the final decision the team leader must explain the variables he or she has considered when making the decision and how it will affect the staff. This is one of the best interventions for addressing resistance to change on the part of the staff. The second critical component is stakeholder involvement. It is vital to perform a stakeholder examination before implementing any proposed changes. The third component is maintaining consistent communication channels or patterns with every individual who will be involved in the project. Finally, training is vital to allow acceptance and embedding when knowledge gaps have been recognized. Project RAID Project Risks There are three major risks that is projected to happen in the course of this project. The first one is increased rivalry which could impact profits of our grocery store. The second one is the inability of the management to execute their tasks suitably is another risk in the business. The third one is employee struggle to variations in the business.

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7 Project Assumptions There are three critical assumptions related to this project. The first one is the planned undertakings and the affected stakeholders must meet the moral and legal requirements for the operation of the grocery store. The second assumption is that the projected capital will cover all the actions that the project involves. The third assumption is that there is an augmented purchase requests for the groceries in Houston which will enable the store to market its products to the clients. Project Issues There are several issues that need to be elaborated before the project is initiated. The first one is the need for accountability on every single cent that will be used in each activity. The second one is insufficient risk analysis. The third one is technology shortcomings which need to be addressed. Finally, stakeholder disengagement, due to failure of the management to execute their tasks suitably. Project Dependencies These are list of crucial resources that will used to ensure the project becomes effective. . Financial resources are also essential to assist in purchasing various requirements and compensating the people involved. The property and contractors are also another example of dependencies that will ensure the project becomes successful. The property will include the land used for setting the business.

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