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ITECH7401

Introduction and description of project background

A business case refers to the first expected outcome in the life cycle of IT projects. It provides an assessment of the feasibility, value, benefits, risks and costs of various suggested options or alternatives to an organization (Panwar et al., 2017). The report shall present a business case based on Port Fairy Caravan and Camping Park. The company, which is based in Port Fairy, offers customers a wide range of options for accommodation such as non-motorised and motorised camping sites, recently renovated cabins consisting of a toilet, lounge, and kitchenette and shower room. The project undertaken by South West Advertising Inc. aims to analyse as well as evaluate the company’s e-marketing strategies by reviewing all e-marketing channels such as online newsletters, advertising on Google and social media, posts on community website and community notice boards.  

Description of project objectives (including link to organisational mission statement)

The purpose of the project based on Port Fairy Caravan and Camping Park is to analyse the e-marketing strategy of the company. The evaluation must also provide details of a review and investigation into all e-marketing channels used by the company at present such as online newsletters, social media advertising, mobile app, and other platforms (Chaffey & Ellis-Chadwick, 2019). Furthermore, the project shall also provide a list of changes that are to be made in the bookings, ROI and comparison with key competitors, for each of the e-marketing channel used by Port Fairy Caravan Park. The director of Port Fairy, Jerry Maguire has realized that the digital marketing strategy of the company is extremely costly and therefore wants to review it for determining the most cost-friendly yet impactful approach to promote the park’s facilities on various online advertising platforms. This is even more urgent for the company since its mission is to be the leading camping and holiday spot for tourists at an affordable price range for packages (portfairycaravanparks.com, 2020). 

Description of the current situation (including a SWOT analysis)

A SWOT analysis of the present situation at Port Fairy with regard to its e-marketing strategy review project has been presented. 

Strengths

  • The project is expected to derive the most impactful and economical approach to the digital marketing strategy implemented by Port Fairy Caravan Park 
  • The project is expected to make a minimum of 25% ROI.
Weaknesses

  • Due to the difference in educational background, ideals, and skills of people on sports-related projects and those who work on new caravanning and camping projects, the project is on a weak ground. 
  • This difference has led to many employees not in full agreement with South West’s new strategies of concentrating on increasing profits by entering new markets.
Opportunities

  • The project can review already-available information, carry out research and collect new material about the markets that are to be tapped in order to help employees gain insights about the new changes in the strategy.
  • For ensuring the success of the tender bid, the project manager can evaluate the digital marketing strategy, review the current digital presence of Port Fairy and other such details in order to come up with the most economical and cost-effective e-marketing strategy for the company (Wirtz & Zeithaml, 2018)  
Threats

    • The shift to focus more on increasing profits by tapping into new markets can be quite challenging for South West, which predominantly focuses on the evaluation and development of e-marketing strategies for sporting companies (Hollensen, 2019).
  • Threats can arise not only from key stakeholders such as employees but also from the suppliers due to the abrupt change in the company’s strategies. 

Table 1: SWOT analysis of the current situation

Outline of problem/opportunity statement

The project aims to come up with the most cost-effective strategy for digital marketing for the company, Port Fairy that shall help the company’s director, Jerry Maguire to invest more on improving and optimising the facilities provided by the parks. The biggest expected opportunity of the project is that it shall lead to a minimum of 25% ROI. However, the company that has been chosen by him for this purpose, South West primarily focuses on evaluating digital marketing strategies for sports enterprises. The CEO of the firm wants to change the currently followed strategy by tapping into other markets such as reviewing digital marketing strategy of a caravanning company, Port Fairy. This move is expected to create numerous problems for the company due to the vast difference in the education and skills of the employees working on sporting companies and camping marketing projects. 

Details of critical assumptions and constraints

With this project, it is assumed that the current costs and expenses involved in the online marketing strategy of Port Fairy would be minimised and the most impactful approach to market the services and facilities of the parks would be formulated. Furthermore, it is also assumed that the project shall earn a minimum of 25% ROI. Moreover, since the project evaluation will require data to support the findings and discussion made while reviewing the existing digital marketing strategies of the firm, it is assumed that this data and information would be gained through conducting surveys of the vacationers and reviewing and evaluating the financial records and bookings (Das et al., 2019). 

However, the challenges are in the form of resistance from employees of South West Advertising who may not agree with the CEO, Bob Sugar’s interest in increasing the profits of the company by tapping into new markets, such as caravanning and camping marketing projects. Furthermore, the stark differences in the skill sets of the employees working on evaluating sporting firms’ e-marketing strategies and those of camping ones shall also constitute major constraints

An analysis of options and recommendations

In order to overcome the potential challenges discussed above, South West Advertising would be required to gain significant knowledge and information about the current e-marketing channels used by Port Fairy. This is to be followed by convincing the employees who are unwilling to welcome the change in strategy to look at the finer sides of the new strategy in terms of the profits that shall be earned if the projects are successful (Noe & Kodwani, 2018). Lastly, training programs and workshops can be organised in order to train the employees to develop the basic skills that are required by them for evaluating camping e-marketing channels and strategies. 

financial analysis (npv, roi and payback figures)

NPV 

Discount rate9.00%     
       
Assume the project is completed in Year 0  Year   
 0123Total 
Costs90,00020,00020,00015,000  
Discount factor1.000.920.840.77  
Discounted costs                    90,000            18,400          16,800           11,550  1,36,750  
       
Benefits090,0001,30,0001,50,000  
Discount factor1.000.920.840.77  
Discounted benefits0           82,800       1,09,200        1,15,500  3,07,500  
       
Discounted benefits – costs                   (90,000)           64,400          92,400        1,03,950 
1,70,750 
NPV
Cumulative benefits – costs                   (90,000)
          (25,600)
        66,800        1,70,750   
       
ROI
125%     
 Payback in Year 1   

Table 1: NPV

IRR

    Present value
YearCostBenefitNet cash flowat DF 80%at DF 90%
0-900000-90000-90000-90000
1-20000900007000038888.536842.4
2-2000013000011000033950.430471.1
3-1500015000013500023148.4519681.65
   Total5987.35-3004.85

Table 2: IRR

IRR = 80+(90-80)*5987.35/{5987.35-(-3004.85)}

        = 86.66%

Payback Period

YearCostsBenefitsCum CostsCum Benefits
090,000090,0000
120,00090,0001,10,00090,000
220,0001,30,0001,30,0002,20,000
315,0001,50,0001,45,0003,70,000

Table 3: Payback period

Figure 1: Payback period

From the above calculation it can be seen that NPV of project in three months is going to be $170,750. IRR of the project is expected to be 86.66%. Payback period is going to 1 year. All these results are showing positive outcomes of new project. These tools are used to identify potential risks and profitability of project before making investment. 

NPV shows the current value of money after a specific time. NPV is reflecting that value of project after 3 months would be $170,750. It means value is going to increase from $144,540 to $170,750. IRR shows the earnings from an investment on periodic basis. Rate of return is 86.66% it means project would earn $ 86.66 on spending each $100. Payback period shows the duration in which cost of an investment project would be recovered. Company can invest in new project as it would be profitable for company in future. 

Preliminary project requirements (project preliminary scope)

Project JustificationProject is created to analyse Port fairy Carvan and Camping park pty Ltd e marketing strategy. It will also include the evaluation of all e marketing channels.
Product DescriptionIt would include evaluation of e marketing strategy, examination of current target market through survey and research. Information would be gathered from customers, market and employees about the new strategy.
Project deliverablesa) Digital marketing strategy evaluation b) Research about customer profile C) analysis of digital channel d) evaluation of messaging strategy e) review of marketing ROI and recommendation for new e marketing strategy.
Project objectiveObjective is to evaluate e commerce strategy for Port fairy Carvan and identify ROI, NPV and PP. Motive is to complete project on time within budget.
Out of scope itemsInternal information of company such as traditional marketing and finances are out of scope items. All employees cannot be surveyed.
Cost objectiveTotal estimated cost for project has been kept 

 $145,000. Therefore, activities would be allocated as per the budgeted amount.

Schedule objectiveThree months or 12 weeks have been considered for the completion of project.
Acceptance criteriaAcceptance criteria reflects that timely completion and within budget. Payment rate would be $80 p/hr for project team and consultant pay is negotiable.
ConstraintsDisagreement among several employees with company’s new strategy. Consultant pay rates are also negotiable and it can be constraint.
AssumptionsInitial investment in project is assumed to be 

 $90,000 and ROI is assumed to be 125%.

Table 4: preliminary project requirements

Budget estimate (cost model and baseline)

 # Units/Hrs.Cost/Unit/Hr.SubtotalsWBS Level 1 Totals% of Total
WBS Items     
1. Project Management   $21,100 15%
  1.1 Project manager100$50 $5,000   
  1.2 Project team members100$80 $8,000   
  Contractors (10% of software development and testing)  $8,100   
2. Hardware   $9,000 6%
    2.1  Handheld devices60$100 $6,000   
    2.2  Servers3$1,000 $3,000   
3. Software   $73,750 51%
    3.1 Licensed software25$150 $3,750   
    3.2 Software development*  $70,000   
4. Testing (10% of total hardware and software costs)  $11,000 $11,000 8%
5. Training and Support   $16,550 11%
    5.1 Trainee cost60$120 $7,200   
    5.2 Travel cost9$150 $1,350   
    5.3 Project team members100$80 $8,000   
6. Reserves (10% of total estimate)  $13,140 $13,140 9%
          Total project cost estimate   $1,44,540  

Table 5: Budget

Budget of 145,000 has been decided for the project therefore all the necessary costs are allocated as per the current rates and resource requirement in budget. 10% of total estimate has would be kept as contingency reserve. Project management, hardware, software and training costs are included in budget. Major part of budget is going to be spent on hardware as it is crucial part of project.

Schedule estimate (including work breakdown structure level 3)

Scheduled estimates of all project activities have been shown in the image. Each activity has been allocated with estimated time for accomplishment. This organisation would help in managing work as schedule and priority. E marketing evaluation strategy is prime activity and other activities are supporting activities. These support activities would take place one after another.

List of potential risks

Potential risks are mentioned below:

  • Resistance from employees to adapt with new policy. Lack of employee support can lead to failure of project.
  • Changing market environment can affect the strategies and evaluation.
  • Incorrect assumptions can affect the effectiveness of project.
  • Increasing cost of resources can increase the budgeted cost for project.
  • It is a time consuming process therefore it can take more than three months to complete the project.
  • Conflicts regarding pay rates can be arise.

Conclusion

Thus it can be concluded that e commerce strategies in business help in reaching large number of customers in low cost. However these e commerce projects require time and cost. It can be seen from the case study that a project for evaluation of e marketing strategy has been proposed. There are various functions involved with project as budget, risks, financial analysis and recommendations. Return from investment in new project is expected to profitable and all the activities are allocated as per budget and time. There are risks of conflicts and disagreement during the project. It is also seen that activities are divided in work breakdown structure level three.

References

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

Das, H. R., Rao, P. S., Kamath, G. B., & Prasad, H. S. (2019). Influence of E-Marketing Strategy on Customer Satisfaction. International Journal of Innovative Technology and Exploring Engineering, 8(9 Special Issue 3), 289-292.

Hollensen, S. (2019). Marketing management: A relationship approach. Pearson Education.

Noe, R. A., & Kodwani, A. D. (2018). Employee Training and Development, 7e. McGraw-Hill Education.

Panwar, R., Nybakk, E., Hansen, E., & Pinkse, J. (2017). Does the business case matter? The effect of a perceived business case on small firms’ social engagement. Journal of Business Ethics144(3), 597-608.

portfairycaravanparks.com. (2020). Port Fairy Caravan Parks | Quality Holiday Accommodation & Camping. Retrieved 4 May 2020, from https://www.portfairycaravanparks.com/

Wirtz, J., & Zeithaml, V. (2018). Cost-effective service excellence. Journal of the Academy of Marketing Science, 46(1), 59-80.

Abstract

Project management is the presentation of information, services, measures, and approaches applied to project actions so that the organization can fulfill essentials of the project. The history of the project management studies incorporates detailed growth in profession year by year. Project management methods are being used for decades while the documentation and the standardization took place later on for the customized projects. The history of project management methods’ has substantial value for choosing the right method on the right project.

Overview 

Project

To understand the project management, “Project” needs to be clarified for better clearance on the project management.

A project can be short-term work started to create and develop a unique product, service, or outcome. Every project defines the work has a beginning and the end both. The beginning is where the idea is been generated and the end would be the result, is the objective of the idea is achieved and the existence of the project with the accomplishment or termination.

Project Management

Project management is the keyword implemented for the knowledge of implementation way for the success of any teamwork. Few studies says that this word “Project Management” is being used since the 19th century (Chofreh, et. al., 2016). Project management is an idea used by engineers and architects for long, it may be before civilization. Nowadays, Project management is an essential chunk of any organization to walk on the success path. It has immense specifications and details for the operation and fruitful achievement.

The old pyramids, The Great Wall of China, and Coliseum are the true models of project management. These unique structures are not been in existence without the people or team in charge of managing them. A study for the completion of vast projects showcases that the work had been assigned to different assemblies with different sorts to accomplish the task and achieve desired results. However, the outcome was not that strong in the imagination. 

Antiquity 

There is no perfect or solid evidence or documentation for the start of the project management. After researches and studies, the history of the Project management starts as follows:

  • 2570 BC: The Great Pyramid of Giza’s structure

Emperors structured the pyramids and in present scenario the architects, studying and researching how they have managed to start the amazing monument, executed the idea and then attained the end of the project. This shows the project management skills in an earlier era (Chofreh, et. al., 2016).

  • 208 BC: The Great Wall of China’s creation

Alternative wonder of the world, the planning, and execution of the project were organized by king by diving the team into three groups and thousands of people were ordered to help the construction team to comprehensive this huge project. 

  • 1917: The Gantt chart Established by Henry Gantt (1861-1919)

Founder and inventor of The Gantt chart, Henry Gantt created the scheduling diagrams on his name. The innovative idea is still considered as a vital part of the toolkit of project managers’

  • 1956: The American Association of Cost Engineers (now AACE International) Formed

AACE was founded by experts of earlier times, project management and connected domains of designing and scheduling, estimation of cost, cost, and schedule control (Too & Weaver, 2014).

  • 1957: The Critical Path Method (CPM) Developed by the Dupont Corporation

CPM formed by Dupont for the management of huge power plant maintenance. An approach to analyze timeframe of any project that is scheduling the task on plants along with the shutting downtime of plants while the project running.

  • 1958: The Program Evaluation Review Technique (PERT) Developed for the U.S. Navy’s Polaris Project

PERT was designed special projects office which was element of department of defence of US Navy. It was known to be element of the Polaris mobile submarine-propelled ballistic missile project in times of the cold war (Silvius & Schipper, 2014). 

  • 1962: United States Department of Defence Mandate the Work Breakdown Structure (WBS) Approach

WBS created by the division of Defence as part of the Polaris mobile submarine-propelled ballistic missile project. It is an extensive, graded hierarchy organization of deliverables and work that must be executed to undertake a project

1965: The International Project Management Association (IPMA) Founded

First of the project management organisation is known to be IPMA. It was formed as a meeting for the link of project manager’s and sharing data (Pinto, 2014). Organisation is known to be federation of overall fifty domestic and globally based project management organisations and also it is authorised in Switzerland. 

1969: Project Management Institute (PMI) Launched to Promote the Project Management Profession

PMI was known to be originated by five individuals as a non-for-profit entity and is dedicated to spread the practice, science, and project management as a profession. An article created by The Commonwealth of Pennsylvania for Merger for PMI in 1969, which was the authorised initiation. 

1975: PROMPTII Method Created by Simpact Systems Limited

Structure of PROMPTII was basically for the computer projects as the projects were delayed over time investigated for execution and real budgets as mentioned in practicability studies (Silvius & Schipper, 2014).

  • 1975: The Mythical Man-Month: Essays on Software Engineering by Fred Brooks

The book “software engineering and project management” by Fred Brooks, showcases fact “Addition of manpower to a late software project designs it afterwards.” This ideology is called law of Brooks’s. 

1984: Theory of Constraints (TOC) Presented by Dr. Eliyahu M. Goldratt in his Novel “The Goal”

A clear sign on the title, TOC is a management viewpoint that supports any organization to successfully achieve the goals (Pinto, 2014). The TOC procedure searches to identify the limitation or obstacles in the projects and streamline the remaining of the organization’s tasks with application of Five Focusing Steps

1986 Scrum Named as a Project Management Style

Scrum is known to be an agile software development technique oriented on numerous small groups functioning in an exhaustive and mutually dependent form. ‘The New Product Development Game’ (Harvard Business Review, 1986) Takeuchi and Nonaka gave name as Scrum as a project management technique in their paper. 

1987: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Published by PMI

PMBOK is a guide for the standard tools and proper documentation of information and facts of project management practices. This guide is an essential tool in the project management profession since then it has become the globally used standard in the industry (Fleming & Koppelman, 2016, December). 

1989: Earned Value Management (EVM) Leadership Elevated to Undersecretary of Defense for Acquisition

EVM framework was used in factory management systems since the early 19th century. EVM leadership was raised to the Undersecretary of Defense for Acquisition, thereby making EVM an primary aspect of programme management. 

1989: PRINCE Method Developed From PROMPTII

PRINCE method was issued by the UK Government agency CCTA, PRojects IN Controlled Environments (PRINCE). It is known to be popular as the benchmark for all government system projects, a unique real approach, basically the ideology of ‘assuring development’ from three identical but connected views. Studies say, the measure is ungainly, too stiff, and applies only for the large projects. 

  • 1994: CHAOS Report First Published

The Standish Group formed for the collection of the information and details on any of the project failures in the IT industry (Panou, Mar 2018). The CHAOS report is the regular issue regarding IT project failure, this leads learning from the failure of others and discovering more methods to enhance on accomplishment rate and raising the worth of IT investments. 

  • 1996: PRINCE2 Published by CCTA

A second edition on PRINCE method, more standardized and applicable to any project announced by the primary computer and Telecommunications Agency), a UK government support agency. Initially established for Information Systems, and Information Technology projects to decrease overruns related to cost and time. 

  • 1997: Critical Chain Project Management (CCPM) Designed

CCPM was designed and introduced by Eliyahu M. Goldratt in 1997. The management of resources, keeping them in the proper level. This method is learning, keeping the resources flexible in start times and swapping among tasks when necessary to keep the project on a stable schedule. The method seems critical. However, it promotes the chain level project management system (Fleming & Koppelman, 2016, December).

  • 1998: PMBOK Becomes a Standard

PMBOK was announced as standard for project management by The American National Standards Institute (ANSI) in 1997 and then afterwards it was recognized by the Institute of Electrical and Electronics Engineers (IEEE). 

  • 2001: The Agile Manifesto Written

Philosophy for Agile Software Development has known to be issued by developers of 17 software about the lightweight software development methods in their meet at The Lodge, Snowbird, Utah resort in Feb’2001. 

  • 2006: “Total Cost Management Framework” Release by AACE International

AACE introduced the idea for the entire cost management and issued the complete staging of the procedure in “Complete Cost management arrangement”. It has been introduced as a first integrated process, a method for application of the abilities and knowledge of cost engineering. Cost management is a significant slide in the project management system.

  • 2008: 4th Edition of PMBOK Guide Released

The fourth updated version of PMBOK guide released with the PMI custom of superiority in project management with a standard that is more improved than earlier and convenient to comprehend and use with efficient reliability and enhanced organization (Ahola, et. al., 2014).

  • 2009: Major PRINCE2 Revision by Office of Government Commerce (OGC)

A prime amendment in PRINCE2 made the approach easier to customize as per the user requirement. The updated version is classified into 7 principles, supports the success of the project.  

  • 2012: ISO 21500:2012 Standard for Project Management Released

After making research and investigation by analysts in more than fifty economies, book of the global entity for Standardization published “ISO 21500:2012, Guidance on Project Management” in September 2012. 

  • 2012: 5th Edition of PMBOK Guide Released

The next fifth edition of the book provides the enhanced version with strategies, regulations, and features for project management considered as noble practice or case studies in the profession of project management.

Importance of project management in modern world organizations

Project management is playing an important and crucial part for every size of organization for the management of day to day operations without any mess. It is now necessary for a company to hire a dedicated project manager to organize projects from beginning to achievement.  Appropriate project management techniques are helpful for any organization to work on big projects, dealing budget and earning tag, reputation, success, and money (Ahola, et. al., 2014).

Few points are mentioned as below for the better understanding of the benefits using the Project management in the organization:

  1. Estimation: Project management promotes the core interest in any project with the estimate of the task involved like, time duration estimate, cost estimate, people required for the project estimate, a tool essential, and method or technology to be considered for the project.
  2. Planning:  The Planning project is the heart of project management life rotation. The project plans are documented & the schedule is mentioned, which will result in delivering the preferred results. 
  3. Exclusive Endeavour: The project management assists the organization to the successful achievement of the task for the unique product or service. The exclusiveness is never a temporary phase for the product managers, it is under the core job preferences. 
  4. Timeline Review: forming a project, will never be without a specific timeline. The project management methods are used for the calculation of the timeline of the project. 
  5. Budgeting: The project budget has significant importance in the project management of the task as any project can’t be even in the execution phase with the cost estimation or a budget approved (Joslin & Müller, 2015).
  6. Changes & Excellence: Both terms are significant for any organization as project management plays a key role to accomplish the changes as per the demand and skill developed manger acquired the methods to control the quality at the same time, to endure the happy customers. 
  7. Opportunity: The wider projects may involve more planning, careful coordination, huge finances, long term project duration but it will ensure the futuristic and the extended tenure for the company’s success pathway. 

Conclusion

Project management is a practice or skill that can be developed for the achievement of any task with proper planning, time duration calculation, budget estimation, upcoming changes, maintaining the quality with the opportunity and challenges. This required the optimum utilization of resources and applying inputs for the anticipated and unique outcome. Good project management guarantees that the goals of projects lined up suitably with the planned goals of the organization. The basis on the referral history of project management growth and enactment of methods in several years, project management is the core and essential part of any organization, group, or anyone performing task whether it’s a small or huge project. These methods show the clear path for the planning, execution and conclusion with the mandate consequences. The history of the project management exhibit the ideas, concepts and the skills ascended by researchers and learners for the improved accomplishment of the project management profession. 

References
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  • Too, E. G., & Weaver, P. (2014). The management of project management: A conceptual framework for project governance. International Journal of Project Management32(8), 1382-1394. Available at: https://mosaicprojects.com.au/PDF_Papers/P162_The_Management_of_Project_Management_IJPM.pdf
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