Project Management Report for ABC PLC's Acquisition of DEF Ltd.

This project report defines the purpose and strategy of ABC PLC in the acquisition of DEF Ltd. It includes the scope, cost, performance, risk, and acquisition considerations of the project.

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RUNNING HEAD: PROJECT MANAGEMENT
[Project MAnagement]
2019
ABC PLC
System04115

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Project Report
Table of Contents
Task 1.........................................................................................................................................3
Q1...........................................................................................................................................3
Q2...........................................................................................................................................3
Q3...........................................................................................................................................4
Q4...........................................................................................................................................4
Q5...........................................................................................................................................5
Q6...........................................................................................................................................5
Task 2.........................................................................................................................................7
Introduction............................................................................................................................7
Purpose of Acquisition.......................................................................................................7
Skills...................................................................................................................................7
Background and Objectives...................................................................................................8
Scope..................................................................................................................................8
Applicable Conditions........................................................................................................8
Cost....................................................................................................................................8
Performance.......................................................................................................................8
Performance period Requirements.....................................................................................9
Risk....................................................................................................................................9
Acquisition Streamlining...................................................................................................9
Plan of Action......................................................................................................................10
Competition......................................................................................................................10
Source Selection Procedures............................................................................................10
Acquisition Considerations..............................................................................................10
Budget and Funding.........................................................................................................10
Corporate Governance.....................................................................................................11

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Government Finished Information...................................................................................11
Security Considerations...................................................................................................11
Acquisition Cycle Milestones..............................................................................................11
Control Measures.............................................................................................................13
References............................................................................................................................14

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Task 1
Q1
A project must have the following characteristics in order to be effective.
Specific: For a project to be effective it should be appropriately planned by the internal team
members as well as the external sourced such as consultants. A proper analysis should be
made to evaluate various details such as structure, cost, goal and shortcomings of the project.
Measurable: The projected should evaluate both monetary and non-monetary terms of a
project. If a project is properly measured, it enables the team members of the project in
overcoming the shortcoming of the project.
Achievable: A project should be designed with a realistic approach. If it is too ambitious, it
can inflate the cost of the project and can even affect the morale of the team members.
Relevant: A project should carry a certain benefit to the concerned company. It can either
help the entity in minimising the cost of the project or improve the efficiency it.
Time: Certain time bound should be planned for the completion or execution of the project.
Q2
The scope statement of a project describes various aspects of the project such as deliverables
and boundaries of the project. An effective scope statement must define the following scope
of a project:
Justification: It contains the need or the purpose of the project.
Product Scope description: It layout the essential that are required to be carried before the
initiation of the project.
Acceptance: These includes the project conditions that are to be fulfilled before any
deliverables
Deliverables: They are the objective or the purpose for which the project was designed.
Exclusions: It defines the dos and don’ts of the project.

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Limitation: This defines the limits of the project such as the scope, cost involved, timeline
and etc.
Assumptions: We live in a dynamic environment with uncertain situations arising every now
and then, this defines the scope in case of any uncertainties (Online Project Management,
2019).
One of the contributing factors of the project success is the appropriate designing the scope of
the project. With the help of Work Break down Structure, the scope of the project is further
divided into major project deliverables. This simplifies the project into a manageable package
of activities.
Q3
Particulars Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19
Shareholder Meetings
Legal Proceedings
Budgeting
Transfer Process
Supply Chain Management
Monitoring of Deliverables
Q4
There are various approaches available to estimates the budget of a project, depending upon
the nature of the project we can access the approach we can use.
Top-Down: We can create the budget by using the actuals figures or data from of the built of
previous project similar projects.
Rules of Thumb: In this, the data is reduced into a simplified metrics to calculate the budget.
Expert Judgement: In this, the firm takes the help of the expertise to design the budget of the
project. This either can be within the firm or can be outsourced.
Bottom-up: This creates the budget by estimating the number of an individual that will work
on the project.

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Multiple independent estimates: Various independent estimates following different
techniques can be considered in formulating the budget plan.
Simulations: This mostly used in the complex projects, it takes the outcome and stimulates
the process multiple times (Projectconnections, 2019).
Q5
We work in a volatile environment in which the market dynamic change from day to day
which leads the firm exposed to a large number of uncertainties (Project-Management.com,
2019). Some of the major risks involved with a project are:
Cost Risk: This can arise due to inaccurate calculation of project cost or due to a sudden
change in the market dynamics, which result in escalation of the project cost.
Time Risk: The execution of the project takes longer than it was scheduled to.
Performance Risk: The project produce does not match the performance standards.
Governance Risk: This risk is related with the management and responsibilities of the
employees and shareholders.
Operational Risk: This risk involves the uncertainties related to the implementation of the
process.
Strategic Risk: It is the risk when the errors are within the strategy of the project.
Controlling the risk is essential for a project to be successful. While preparing the project
report, it is vital to analyse the various type of risk associated with the project. After we have
analysed the possibilities of various risk, we must design the controlling measure of each risk.
With the help of establishing various controlling measure, we can reduce the damaged caused
by them (Smallbusiness, 2019).
Q6
Identify Project Deliverables: It is necessary to have a clear view of the deliverables.
Therefore, it is necessary to break down the goal of the organisation into deliverable so that
they can be clearly evaluated (Cleverism, 2019).

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Establish Project Schedule: In the project schedule each deliverable are converted into the
task to provide clarity about what task has to performed by whom, it also the define the time
limit to execute a task.
Performance indicators: It is important to define the indicators that define the performance of
the project. With the help of these indicators project can be monitored, and we identify the
area in which the project is lacking behind.
Monitor project throughout: It is necessary to monitor the project in its initial phase. A
system should be laid evaluating the area to be measured, tools through it should be measured
and the authorised person to measure it.
Create Supporting Plans: It is important to design the supporting plans in case there is a
deviation from the basic plan. It is necessary to have a control measure to minimise the harm
caused by the deviation.

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Task 2
Introduction
Purpose of Acquisition
This project report defines the purpose and strategy of ABC PLC in the acquisition of DEF
Ltd. ABC PLC is a well-known retailer joint of food and beverages in the UK Market. It now
wants to expand his horizons by establishing various retailer joints across the UK. In order to
achieve this ABC PLC has deployed the strategy to acquire a frozen food retailer DEF Ltd.,
who holds various joints in the well-known high street of UK. Instead of establishing, a fresh
retail store across the Market, ABC PLC decided to acquire an already established retailer.
Skills
In the process of acquisition of the new project, I will be applying the knowledge that has
been gained by me over the course of the period that has helped me in computing the in
technical and analytical information (Hwang and Ng, 2013).
Project Management: The knowledge and the expertise acquired in the course of working will
guide me in developing structure, managing and organising resource.
Database: Association with the past project have exposed me the understanding of the
working. It also provided access to the essential data and staff records to delegate the work.
Analytical Information: As the company has undergone through various successful merger
and acquisition it has made me well verse with the process and knowledge of the merger and
acquisition.
Market Awareness: Working in the industry for the past few years has exposed me to the
vicissitudes of the industry.
Task Management: With access to the data, it helps in delegating the work according to the
expertise of the employee. It also helps in achieving a better result (Burke and Barron, 2014).

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Background and Objectives
Scope
ABC PLC has acquired all the assets and liabilities of DEF Ltd. the company has adopted a
friendly method of acquisition.
Applicable Conditions
For efficient working of a project, it is essential to access and evaluate the existing system
and programs of the venture and then states the requirements that works best aligning with
the existing. It also includes the significant conditions that might affect the acquisition and
any known cost, schedule, and capability or performance constraints (Kerzner and Kerzner,
2017).
Cost
Cost is a critical derivative of the project; it influences the benefit of the project. For the
acquisition process of any project, the cost goals or budget should be properly laid with the
help of a finance expert. There are various types of cost involved in the acquisition of the
project.
Acquisition Cost- It includes the direct cost involved in the acquisition of the project. In
involve the calculation of the price to be paid off to the existing shareholders and also the
goodwill calculation of the firm.
Design to Cost- This type of cost includes economic adjustment factors, the rationale for
quantity, underlying assumptions and learning curve. It also includes application, monitoring,
and enforcement of the objective. Indicate specific related solicitation and contractual
requirements to be imposed
Life Cycle Cost- This includes the life cycle cost into consideration. This includes the cost
that is necessary to keep a venture running. We can also explain the life-cycle- cost and the
cost model used to develop it.
Application of should Cost- It explains the analysis and application of should cost to the
acquisition. (Verzuh, 2015).
Performance
In order for a project to be successful, the project should be designed beneficial yet
achievable performance standards for the project. The performance characteristics of a

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project include management performance, supplies, and the utility of the project (Thomas and
Mengel, 2008).
Performance period Requirements
A project must set a period for the completion of the deliverables. Various deliverable brings
certain importance to the project and certain deliverable depends upon the completion of
other deliverables. So it is necessary to have specify time span for the completion of
deliverables and also explain and provide reasons for any urgency if it results in concurrency
of development of the project (Nomadfoods, 2017).
Risk
Every project comes with its own risk and reward. Some of the critical risk areas that can
affect the results of operation and the finance of the company are discussed below (Nestle,
2017).
-There can be uncertainties in the market or disruptions in the business that can impair the
results of the firm.
-The profitability of the stores might suffer as a result of the competition or overexploitation
of the market.
-There can be certain challenges in managing and monitoring the acquisition of new business
ventures
-Disturbance in the procurement cycle of the raw material or interruption with the supply can
negatively affect the results of the company.
-Food and Beverage business are extensively governed by the regulatory authorities. Changes
in the laws and regulation can have an adverse impact on the business.
Acquisition Streamlining
Acquisition streamlining involves discussion of plans and procedures to encourage industry
growth. It involves usage of draft solicitations, pre-solicitation conferences, and other means
of encouraging the involvement of industry in the course of design and development in
recommending the most appropriate application and tailoring of contract requirements. It also
involves selection and altering only the essential and monetary friendly and effective
requirements and states the timeframe for recognizing the provisions and standards,
originally provided for guidance only, shall become mandatory (Billett, 1993).

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Plan of Action
Competition
The market, industry and competitive information has been extracted through the company
itself, as the company has experience of working in the same industry over a decade. Various
other data and studies done are also used in examining the market research. However, these
studies are not independently verified by the company as we trust these studies are
sufficiently reliable. Working in the industry for long enough have provided us great
exposure and knowledge of the field so the information provided in the annual report are
reasonably reliable. The performance standards, assumptions, projections and expectations of
the project are built keeping in mind the uncertainty and risk due to a various elements,
including those described in the Risk Factors. However, there are other factors that might
influence the results to differ materially from those expressed in the estimates made by the
independent parties and by us.
Source Selection Procedures
It states timeline and method adopted for various procedures. It evaluates the relationship,
specifies the timelines for submission and evaluation of proposals and various procedure to
attain the acquisition objectives.
Acquisition Considerations
The project considerations should be clearly defined, the type of contact and details of the
contract should be properly contemplated. It should discuss in advance the nature of the
contract, use of multiyear contracting, special clause, options or any special contracting
methods. It is necessary to have a clarity on certain things whether negotiation or sealed
biding will be used and the reason for using it, or any other contracting consideration such as
leasing or purchasing the equipment used in the production (Annualreports.com, 2017).
Budget and Funding
One of the major aspects of the project is finance, it includes both the source of finance and
disbursement of finance. The Budget of the project should be clearly prepared with the help
of a finance expert. It should consider all the details of finance, from acquisition cost, design
cost to life cycle cost of the project. It should also specify the sources of the funding of the
project whether the company is using its own cost or borrowed cost for establishing the new
project (Meredith and Mantel, 2011).

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Corporate Governance
There are certain guidelines laid out for the governance of venture (Harrison and Lock,
2017). Some of the area that is covered in Corporate Governance:
 Shareholder Proposals
 Comparison of Shareholder Rights
 Director’s Fiduciary Duties
 Amendment of Governing Documents
 Written Consent
 Election of Directors
 Inspection of Books and Records
Government Finished Information
It is necessary to have a proper accountability of the project; various government compliance
has to fulfilled with the industry specification related information such details should be
properly furnished. It also helps the venture to identify the areas that require additional
controls to monitor access and distribution. Some of the area that required government
compliance test data for contractors and prospective offerors, manuals, drawings and various
industry-specific licences.
Environmental and Energy Conservation Objectives
Every business venture shares certain social responsibility with the environment. It essential
fulfil their responsibility towards the nature we should make sure that the products and the
process involved in service or production of the product do not harm the environment or
treated before they are disposed of in nature.
Security Considerations
It essential to maintain confidentiality in certain classified matters. It is necessary to ensure
that adequate security methods have been adopted by the organisation to minimise the
outflow of information (Anon, 2016).
Acquisition Cycle Milestones
A business outlook to evaluate and monitor the acquisition progress was developed. It is
essential to lay down the milestone or deliverables to have a proper view of the progress of
the acquisition cycle.

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1. Initial Design: There are various independent pillars in the process, which are
designed and evaluated separately.
a. Scope: ABC PLC has established its foot in the food and beverages industry,
by acquiring various food and drinks joints. The company has attained a
successful history in the mergers and acquisition, which assists in attaining the
company’s strategic growth objective. The acquisition of DEF Ltd is another
step toward the growth of the organisation. DEF Ltd, has various retail across
the across major town and cities of the UK in the popular high streets. It will
help ABC PLC in expanding its venture and acquiring greater market share.
It is essential to lay down the scope of the project, which includes its depth
and breadth of the project (Somers and Nelson, 2004)
b. Costing: The acquisition is a friendly acquisition so the transfer price of the
shares will be decided with the help of shareholders in the extraordinary
general meeting that will be conducted next month. There are various other
cost related that are also budgeted in the financials of this project. This help
the company to evaluate the potential cost of the project which can help in
measuring with its benefits.
c. Management: There should be clarity in management responsibility. It should
be clear to the employees and the managers about their reporting, scope and
responsibility to avoid any confusion and delicacy of work.
d. Deliverables: It is very crucial for any project that it should provide a proper
understanding of the deliverables. It is only with the help of deliverables we
can assess the growth of the project (Patanakul, Iewwongcharoen and
Milosevic, 2010).
2. Specifications: In order to have a successful acquisition there should be a detailed
plan drafted specifying the phases and timelines of the project. A well-engrained
interface system helps us to ensure the overall growth of the organisation. Therefore,
it is important to design a well-established interface medium among the various aspect
of the project (Highsmith, 2009).
3. Testing: It involves identifying the risk, associated with the project. The project
variables should be tested before the implementation. It will help in identifying and
mitigating the risk beforehand. A workflow document should be created defining the
flow of work (Burke and Barron, 2014).

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4. Evaluation: The system should be properly analysed, it should be compared to
existing solutions if there are any pre-designed solutions. With the help of qualitative
analysis, we should measure the commercial viability of the implementation cycle.
There should be a properly designed mechanism to monitor that the work is
qualitative and is within the said timeframe. It also includes recognizing the primary
issues in the project and scheming a solution to that problem (Micpa, 2019).
Control Measures
It is essential for a company to establish control measures to minimise the damaged caused
by the deviations. To establish the control measure it is first essential to identify where the
goals of the project were lacked. The performance of the team leader and team members
should be evaluated. There should be specific control measures to check the performance
standards of the project and the employees. It is the duty of the project manager to make sure
that there is proper documentation of the closure so that there are no loose ends of the project.
It is the management responsibility to establish and overview the internal control mechanism.
To avoid the exploitation of resources and asset it is essential to have a grip over the financial
activities and the progress over the project.
1. The accountability of the project t should be properly done, it should ensure that
the transaction are timely and accurately recorded.
2. It should ensure that the financial statements are prepared in accordance with the
guidelines and generally accepted accounting principles of the applicable country.
3. It should also provide confidence on the financials by establishing control of
recording of the transaction. (Nestle, 2017).

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