Product Innovation and Strategic Planning

This assignment delves into the crucial concepts of product innovation and strategic planning within a business context. It examines various frameworks and theories related to innovation management, such as the Innovator's Dilemma and Dynamic Fractal Organizations. Students are expected to analyze case studies, research contemporary trends in product development, and apply their understanding to develop a strategic plan for a hypothetical company.

Undertake project work

Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT TASK 1.................................................................................................................1
PART A...........................................................................................................................................1
Develop a project proposal..........................................................................................................1
PART B............................................................................................................................................4
Develop project plan...................................................................................................................4
Task Breakdown structure:.........................................................................................................6
Project Budget:............................................................................................................................7
ASSESSMENT TASK 2...............................................................................................................11
1. Three different types of organisational structures.................................................................11
2. List of relevant legislation which affect project management..............................................12
3. Key project parameters which essential for any project.......................................................12
4. Critical path...........................................................................................................................13
5. How project align with organisational plans.........................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
In order to undertake the project, there are several benefits' comes that requires for
demonstrating and understanding towards effective results. It includes right structure and skills
which ensures about object review and evaluation for development of the enterprise. Present
report is based on Alexami Cosmetics which is one of the biggest Australian company which
deals in organic and natural products. Project has been taken to implement new herbal shampoo
in market by the company for attaining effective results in business. With this regard, report
covers project proposal and plan with motive of defining objectives, assessment of risk, benefits,
resources, keeping records, etc. for designing effective system.
ASSESSMENT TASK 1
PART A
Develop a project proposal
In order to develop project proposal, following are relevant points which need to be
included for finalising the project:
Background: In the Australia, Alexami Cosmetics provides different types of organic
and natural products to attain effective results in cosmetic sector. The company deals in skin care
face products, aromatherapy, etc. Products are developed to care people from sun, moisture,
tanning (Carvalho, Fleury and Lopes, 2013). Their products are categories in different segments
such as facial make-up, lip products, body care etc. In addition to this, the company also
providing products on wholesale basis which helps to gain better competitive advantage over
other enterprise.
Purpose and objectives of the project: In order to enhance profitability, present report
has objectives to develop sales of products through introducing herbal shampoo. Organic
products of Alexami Cosmetics help to attract many customers who are concern about infuse
hairs follicles and skin cells with natural minerals (Moss and Marvin, 2016). Herbal extracts and
oils includes diverse natural ingredients which helps in removing skin issues such as dandruff,
irritations from scalp, etc. In this way, the cited firm has opportunity to enhance their outcomes
and results. Also, launching organic product for hair is also sustainable factor for organisation.
Project scope: Herbal shampoo occupies very important place in terms of alternatives of
hair protection methods. Increasing the awareness among people regarding cleanliness in their
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healthier hair is key motive. With the launch of herbal shampoo, Alexami Cosmetics has benefits
to attract wide range of customers (Hirschman, 2014). This is because, it makes healthy, shiny,
soft, strong hair with including effective elements.
Project duration: Total 14 months required to Alexami Cosmetics to make this herbal
shampoo. All activities can be cater in the following aspects:
Activities Time duration Start dates End dates
1 Preparation of
Project profile
One month
2 Registration &
taking approval
from Director of
Ayurveda
One month
3 Arrangement of
Finance/Loan
from Banker or
Financial
Institutions
Two months
4 Checking of
Power connection
and Building
construction for
making herbal
shampoo
Six months
5 Taking machinery
procurement and
trail
Two months
6 Recruitment of
staff and labour
One month
7 Actual production One month
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and commercial
Total Fourteen months
Perceived obstacles and risk that include in OHS requirements: However, each
person need to understand risk which delay the project. It is necessary to replace the risk in
effective form. Understanding of risk will help in improve performance of company. Products of
company provides conventional medicines as remedies which create direct impact on the health.
Long standing traditional experience also tell about the striking and predictable symptoms
(Nonaka and et.al., 2014). There are several customers stated that they have problem from using
natural organic products. Therefore, different issues creates big impact on the company so
management need to be concerned about the same.
Perceived cost and benefits: Further, high cost is required to implement the herbal
shampoo product in Alexami Cosmetics. This is because, the organisation need to collect several
important elements for production of organic or herbal shampoo. In the market, there are so
many products coming continuously which are creates an issue so management need to consider
such values properly. Women are very conscious for their hair and they care about effects on the
hair as well (Su, Tzeng and Hu, 2016). With the herbal shampoo of cited firm, several benefits
can also be provided to customers such as flowers, roots of medicinal plants. In addition to this,
benefits also enhances the use of herbal shampoo so that natural fragrance aspects can be
advanced. Natural products does not have any side effects to the person hair. With the help of
this, hair fall ratio can also be reduced which is the first benefit to make effective results.
Resources and record keeping systems: In order to develop selling of herbal shampoo,
in Alexami Cosmetics the different sources can be applied in business. In this aspect, effective
results and organic products can be promoted through using selling methods (Christensen, 2013).
Therefore, it will be profitable to make beautiful things. In the chosen business, following
resources are required to make herbal shampoo:
2 table spoon dried herbs
1 cup hot water
1/8 cup liquid Castile soap
5 Drops vitamin e oil
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All these elements, are place very important part which pour gently simmering water over
the jar. After this, it will change colour over the time. Further, the enterprise also use lavender to
make it in purple colour. When Castile soap added, it will turn into green colour (Highsmith,
2013). In addition to this, there are many other products which possess variety of herbs which
beneficial for hair growth. Vitamins and minerals assists to strengthen hair and nourish to make
perfect use of liquid herbal shampoo. Another element Calendula flower also using to make
herbal shampoo because it promoting strong healthy hair by increasing of production of collagen.
Hibiscus also including in herbal shampoo so that it will enhance healthiness of hair
which can prevent premature greying and dandruff. Peppermint leaf also included in herbal
shampoo of Alexami Cosmetics which helps to stimulate follicles and heal chemical for
environmental changes. It works as an anti-inflammatory and promoting to growth of hair (Bey,
Hauschild and McAloone, 2013).
Record system also important aspect which using for provide authentication to customers
about herbal products. In this aspect, records required to measure performances of Alexami
Cosmetics in significant manner (Fleisher and Bensoussan, 2015). Records also required to show
amount of different elements that included in herbal shampoo.
PART B
Develop project plan
In respect to develop project plan, following activities need to be included in the business
unit:
Project details: Project done on the company Alexami Cosmetics for making Herbal
shampoo product in business. In this aspect, objectives, time duration and resources are taken for
ascertain effective results in it (McDonald and Wilson, 2016).
Executive summary: From the above development plan, it has been assessed that the
chosen organisation need to established new product that is Herbal shampoo. In this way, they
have opportunity to enhance outcomes and results in significant manner for ascertain more
effective results (Li and et.al., 2015). Furthermore, it includes purpose and objectives with scope
for ascertain significant results. Moreover, key roles and responsibilities explained of different
stakeholder in the selected enterprise. At last budget plan and monitoring develop that create
effective functioning in the business unit.
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Purpose and objectives: The Alexami Cosmetics has many purposes to make sure that
herbal shampoo determines effective results in significant manner (Scott, 2017). Following are
certain purpose and objectives of the project to enhance outcomes:
 To identify healthiness of herbal products as compare to other goods.
 To analyse usefulness of herbal shampoo in Alexami Cosmetics context.
 To allocate resources that required to make new product with gather relevant information.
 To assess risk and constraints that included in new product of the organisation.
Project scope:
In Scope Out of scope
(exclusions)
Assumptions Constraints
Project scope: With
the help of the present
project, there are wide
scope has been
implemented in
business unit. This is
because, it will help to
identify importance of
herbal products in
person life. Therefore,
it creates several
opportunities to
expand business
operations in positive
aspect. It also
enhances experience
on the basis of
different case studies.
Therefore, Alexami
Cosmetics has
opportunity to
examine efficiency of
these methods for
developing outcomes.
Further,
recommendations also
demonstrated that are
based on the
development and other
operations that need to
be done in the future.
In this project,
standardization also
explains that need to
be reached towards
recommendations
which derived to
contribute shape in the
With the help of
proper communication
facilities, results can
be cater to make
scientific sound with
comprehensive
measurement. In the
relevance of terms,
climate consciousness
of consumer decision
making play very
crucial role for the
considerations.
Developing own
climate also enhance
methodological which
sufficient for
discussion towards
products and services.
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international level.
Key stakeholder and responsibilities: Key stakeholders are playing very important role
for each project with accomplishing several activities. In this aspect, need for project plan has
been identified by them with completing several activities (Song and et.al., 2015). Moreover, in
Alexami Cosmetics external clients and suppliers directly affected to give effective results with
several changes of the project. Each stakeholder need to identified prior to project proposal
which discussed to the driving force and also sponsor in several stages with developing training
and implementation. Key stakeholder play a pivotal role to make successful project with number
of core responsibilities. Suppliers, customers, government, shareholders, etc. Provides detail
requirements and support to financial plan that need to be completed up front (Senyard, Baker
and Davidsson, 2014). To make herbal product, necessary resources are applied which could be
impacted to several areas involved in the project. This is because, it will help to take instant
answers and feedback which should be work in significant manner.
Project team strategy: Project team strategy determines well structure in the team where
all members understand their roles to ascertain successful results. With the help if five team
unification strategies, in Alexami Cosmetics herbal shampoo enhances to produce effective
results (Smither, Houston and McIntire, 2016). It includes establishment of a project with
defined roles of different members. In this context, the chosen organisation need to design roles
for each person to make new product in market. Depends on the industry and its functions,
standards and roles.
Deliverables: Deliverable is the tangible and intangible goods and services to produce
effective results that intended to deliver internal and external customers (Carvalho, Fleury and
Lopes, 2013). In Alexami Cosmetics, deliverable includes report, document, software product,
etc. which connected with herbal product. It is the best element which make standardization role
in the structure.
Task Breakdown structure:
Level 1 Level 2 Level 3
Task 1
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1.1 Initiation task
1.1.1 Select one product for
launching
1.1.2 Chose specific market
1.1.3 Frame goal and objectives
1.2 Planning task
1.2.1 Analyse the market for
launching herbal shampoo
1.2.2 Assessing wants as well as
requirements of consumers
1.2.3 Design layout
1.2.4 Allocate requires resources
Task 2
2.1 Implementation task
2.1.1 Allocate responsibilities
between individuals of project
team
2.1.2 Manufacture the shampoo
using resources
2.1.3 Launch herbal shampoo in
market
2.2 Closing task
2.2.1 Taking reviews and
suggestions from users of herbal
shampoo
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2.2.2 Apply advises of
customers in business
Project Title: Project Client: Date:
Version:
Project Sponsor: Project Manager: File Name:
Project Budget:
Project Name:
Income Inc. GST Ex. GST
Selling herbal shampoo 35200 23936
Investments 11500 8970
Total income 46700 32906
Expenses
Material cost 6590 5602
Labour cost 5600 4760
Fixed cost 6000 5100
Selling expenses 4200 3570
Utility charges 6500 5525
Other expenses 5000 4250
Total expenses 33890 28807
Subtotal 12810 4100
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Contingency (+10%) 1281 410
TOTAL 14091 4509
Project Title: Project Client:
Date:
Version:
Project Sponsor:
Project Manager:
File Name:
Project name:
Income Budget Actual % Variation
Selling herbal shampoo 35200 39420 11.99%
Investments 11500 12054 4.82%
Total income 46700 51474 10.22%
Expense Budget Actual % Variation
Material cost 6590 6890 4.55%
Labour cost 5600 6120 9.29%
Fixed cost 6000 5460 -9.00%
Selling expenses 4200 4980 18.57%
Utility charges 6500 7265 11.77%
Other expenses 5000 5426 8.52%
Total expenses 33890 36141 6.64%
Subtotal 12810 15333 19.70%
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Project Title: Project Client: Date: Version:
Project Sponsor:
Project
Manager:
File Name: Page x of y
Perceived risks and constraints: In order to develop effective results, there is high risk
ascertained in the herbal shampoo. Proper management of herbal products are need to be
implemented in Alexami Cosmetics. It will help in developing outcomes with marketing of
products in significant manner (Moss and Marvin, 2016). Shampoo migrated from the
cleanliness to the beauty product so that it requires high professional outcomes to make effective
results in it. For men and women both persons have required to make effective growth and strong
results in herbal shampoo.
Resources and allocations: In order to make herbal product for Alexami Cosmetics,
there are several types of resources required. It includes, technical, physical and personnel
products which helps to make effective functions on in the business operations (Hirschman,
2014). Therefore, it will base on the allocations to determines roles and responsibilities which
play by different people in the chosen business.
Project timeline and schedule:
Item Milestone date Responsibility
Physical resources 01/09/17 To maintain physical
resources
Technological resources 02/09/17 To implement advance
technology
Human resources 03/09/17 To ascertain roles and
responsibilities for
effective results
Resource and cost plan
Deliverable/milestone/phase Resource Cost
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Personnel Human resource 7850
Technology advancement Technical experts 5460
Equipments Material 6590
Activity/task 1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
weigh ingredients
mix ingredients
dough rising time
prepare tins
pre-heat oven
knock back dough and
place in tins
2 nd dough rising time
cooking time
Status
report –
Project
Item Work
completed
to-date
Mileston
e date
Revised/
actual
date
Budgeted
cost
Revised/
actual
cost
Responsib
le
Selling
herbal
Mon
9/4/17
35200 39420 Sales
person
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shamp
oo
Invest
ments
Mon
9/4/17
11500 12054 Investor
Mon
9/4/17
Total
income
Mon
9/4/17
46700 51474
Expens
e
Mon
9/4/17
Budget Actual Investor
Materi
al cost
Mon
9/4/17
6590 6890 Investor
Labour
cost
Mon
9/4/17
5600 6120 Investor
Fixed
cost
Mon
9/4/17
6000 5460 Investor
Selling
expens
es
Mon
9/4/17
4200 4980 Investor
Utility
charges
Mon
9/4/17
6500 7265 Investor
5000 5426
ASSESSMENT TASK 2
1. Three different types of organisational structures
Organisation set up with the specific ways and accomplish goals and objectives in
systematic way. In this aspect, following are three different types of organisational structures
have been determines in business:
 Functional structure: Functional structure set up with each portion of the business
which grouped as per their purposes (Su, Tzeng and Hu, 2016). For instance, in
marketing department, sales department and production department functions can be
12

cater to work very well in the small businesses. In each department it develops talent
knowledge for workers and support as well.
 Divisional structure: Divisional structure typically used in the larger organisation where
company operates in wide geographical manner. Smaller organisation covers several
types of the products and market areas as well (Christensen, 2013). As results, different
divisions can be made in geographical areas to handle specific needs.
 Matrix structure: It is the third main type of structure which includes hybrid of
divisional and functional structure (Highsmith, 2013). Typically, it is used in the large
multinational companies that allows create several benefits which exits in the
organisation.
2. List of relevant legislation which affect project management
Following are different legislation included which can be affect project management
Legislation Description
Electricity act 1994 This act required to proposed work which is
likely to come into the contact which can
distract work of power lines. Written approval
from the relevant road authority need to be
obtained prior that carrying electricity works.
Fire and Rescue services act 1990 Consideration of the fire and rescue services
act assists to prepare potential emergencies
with aim to protect project personnel.
Forestry act 1959 Forestry act provides reservation for forest,
management and treatment, etc. It describes
timber reserves for many purposes in effective
manner.
3. Key project parameters which essential for any project
Following are key project parameters to develop effective results in final management:
 Scope: Scope determines effective working to develop effective results in project. It
attached with goals and objectives of the business for ascertain effective results. In this
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aspect, final agreements work with cost, schedule and budget by the key stakeholder
(Highsmith, 2013).
 Schedule: Schedule includes several activities which need to be perform for ascertain
effective results with each activity. In this way, each activity complete on specific time
that required to develop functions and operations in significant manner (Fleisher and
Bensoussan, 2015).
 Budget: Budget includes arrangement of fund that needed to accomplish each activity on
the specific time. It makes proper support and outcomes in significant manner.
4. Critical path
Critical path includes sequence of several stages which determining minimum time which
needed for operation that analysed on the computer in the large business enterprise (Song and
et.al., 2015). It is the important part in each business practices which includes several activities
that helps in project. When activities on the critical path change end date of the project will be
affected.
Activities Precedences Elapsed time
weigh ingredients - 1
mix ingredients A 3
dough rising time B 60
prepare tins - 1
pre-heat oven - 10
knock back dough and place in
tins
C&D 2
Carvalho, M., Fleury, A. and
Lopes, A.P., 2013. An
overview of the literature on
technology roadmapping
(TRM): Contributions and
trends. Technological
Forecasting and Social
F 15
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Change, 80(7), pp.1418-1437.
2 nd dough rising time
cooking time E&G 40
Task Mode Task Name Duration Start Finish Predecessors
Auto
Schedule
d
A weigh ingredients 1 min Mon 9/4/17 Mon 9/4/17
Auto
Schedule
d
mix ingredients 3 mins Mon 9/4/17 Mon 9/4/17 1
Auto
Schedule
d
dough rising time 60 mins Mon 9/4/17 Mon 9/4/17 2
Auto
Schedule
d
prepare tins 1 min Mon 9/4/17 Mon 9/4/17
Auto
Schedule
d
pre-heat oven 10 mins Mon 9/4/17 Mon 9/4/17
Auto
Schedule
d
knock back dough and
place in tins 2 mins Mon 9/4/17 Mon 9/4/17 4,5
Auto
Schedule
d
2 nd dough rising time 15 mins Mon 9/4/17 Mon 9/4/17 6
Auto
Schedule
d
cooking time 40 mins Mon 9/4/17 Mon 9/4/17 5,7
15

5. How project align with organisational plans
Strategic business plan consist following activities:
 Definitions: Strategic business plan is the written document which includes pairs of
objectives of the enterprise with ascertain needs in the market place (Senyard, Baker and
Davidsson, 2014). It includes planning steps to accomplish goals of the organisation. For
example, implementing new product in Alexami Cosmetic.
 Significance: Strategic business plan helps in optimization of market structure to attain
optimum research to enhance share (Lin, Tan and Geng, 2013). There are several
significances take place for the chosen enterprise such as pursuing advertisement, make
high sales, customer management.
 Characteristics: Strategic business plan includes extensive market research, industry
trends and competitor analysis (Smither, Houston and McIntire, 2016). It includes
components of the traditional plan such as executive summary, market analysis, etc. In
this way,Alexami Cosmetic can easily assess target market and manage size to establish
strategy that acquire for different customers.
 Benefits: Strategic plan includes many advantages. In this plan serve outline for
successful operations which assists to milestone and understand better position of
Alexami Cosmetic (Fleisher and Bensoussan, 2015). It includes executives understand
which cater directions to improve and grow performances.
16

 Misconceptions: many small business owners determines strategic business plan for the
large enterprise. According to the small business administration, several benefits can be
ascertain in Alexami Cosmetic (Nonaka and et.al., 2014).
CONCLUSION
From the above report, it can be concluded that Alexami Cosmetic determines effective
results through implement new product in market. In this way, herbal shampoo sell as new
product in the market. Furthermore, it explained project development plan for developing
effective results. Moreover, it explains about project align with developing outcomes in
systematic manner.
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