Business Administration and Its Importance

This assignment delves into the significance of business administration in a company's success. It emphasizes the importance of budget plans, procedures, and timely completion of work. The report also touches on adapting to changes and maintaining employee morale. Key concepts such as multinational joint ventures, affirmative action, and business process engineering are discussed. Relevant references from books and journals provide additional insights into the topic.

BUSINESS
ADMINISTRATION 58

Table of Contents
INTRODUCTION...........................................................................................................................4
Main body........................................................................................................................................5
1.1Explain how to carry out a cost-benefit analysis for a project...............................................5
1.2 Evaluate the use of risk analysis techniques.........................................................................6
1.3 Evaluate project planning and management tools and techniques........................................6
1.4 Evaluate the impact of changes to project scope, schedule, finance, risk, quality and
resources......................................................................................................................................7
1.5 Analyse the requirements of project governance arrangements............................................7
2.1 Analyse how a project fits with an organisation’s overall vision, objectives, plans and
programmes of work...................................................................................................................7
2.2 Agree the objectives and scope of proposed projects with stakeholders..............................8
2.3 Assess the interdependencies and potential risks within a project........................................8
2.4 Identify SMART objectives, key performance indicators (KPIs) and evaluations
mechanisms appropriate to the plan............................................................................................8
2.5 Develop proportionate and targeted plans to manage identified risks and contingencies.. . .9
2.6 Apply project life cycle approaches to the progress of a project..........................................9
3.1Allocate resources in accordance with the project plan.........................................................9
3.2 Brief project team members on their roles and responsibilities..........................................10
3.3 Implement plans within agreed budgets and timescales.....................................................10
3.4 Communicate the requirements of the plans to those who will be affected........................10
3.5 Revise plans in the light of changing circumstances in accordance with project objectives
and identified risks....................................................................................................................10
3.6 Keep stakeholders up to date with developments and problems.........................................11
3.7 Complete close-out actions in accordance with project plans............................................11
3.8 Adhere to organisational policies and procedures, legal and ethical requirements............11
4.1 Conduct periodic reviews of the progress and effectiveness of a project using information
from a range of sources.............................................................................................................11

4.2 Evaluate the effectiveness of capturing and managing project-related knowledge............12
4.3 Report on the effectiveness of plans...................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business administration is an wide field that helps in corporation of various types of
position of management. Every type of business from corporations to independent, each and
every organisation requires skilled administration to succeed. In business administration includes
various aspects by overseeing and supervising different aspects in business also in other fields
such as accounting, marketing and finance. This report is based on Aldi which is the brand name
of two German family that operates discount supermarket chain in over 20 countries with 10,000
stores in all over the world. This report is based on Cost benefit analysis and potential techniques
of risk analysis techniques. It also evaluates project planning and management tools and
methodologies and role of governance in organisation. Further it evaluates overall vision,
mission and plans that fit with an project by stakeholders objectives and scope.
Main body
1.1Explain how to carry out a cost-benefit analysis for a project.
Cost benefit analysis in a project management work as a tool, helps in evaluation of cost
in contrast to benefit reap from the project (Beamish, 2013). It has been a list and lot of processes
of project expenses and benefits from that to successful execution of a project.
Uses of cost benefit analysis in a project and steps of carry out that are as follows:
Brainstorm cost and benefits:
In first step all cost and benefits should be listed and then proper evaluation of ratio of
cost and benefits that shows life span of project.
Assign a monetary value to costs:
In that phrase evaluation of cost should be evaluated that in which factor cost can be
reduce. In case of Aldi they have to evaluate that training cost that it either decrease in
productivity while adopts new system (Bean, 2015).
Monetary value to benefits:
In that step of revenues should be predict firstly that is difficult task in case of new
products and second step is which type of financial benefits they occurs from that in which soft
or intangibles benefits that is very important aspect for Aldi.
Compare cost and benefits:

In final step comparison between cost and value should be analysed, for that total cost
and benefits should be evaluated in Aldi.
1.2 Evaluate the use of risk analysis techniques.
Risk analysis is an important factor that give knowledge about risk associated with
particular event or action in organisation in both qualitative and quantitative basis. There are no.
of techniques to evaluating techniques of risk analysis in which includes Brainstorming,
sensitivity analysis, probability analysis and Delphi method are important techniques in
evaluation of risk associated with any project in Aldi. These risk analysis techniques helps in
find out the possible threats that exist in particular project and it come from different sources
such as human illness, death, injury etc. disruptions in supply of goods and services and
technological hindrances, business failure are major factors that are evaluated in it. Further it
helps in estimate risk factor that engage with it and possible outcomes of it. After evaluating the
threats then by multiply by cost to get probability of risk occurrence (ell, Bryman and Harley,
2018).
1.3 Evaluate project planning and management tools and techniques.
There are different types of tools and techniques that helps in evaluation of project
planning and management of different projects that are as follows:
Gantt flow:
it is an tool that helps in improve and optimization of project and its process, that is the
device to plan and arrange all sequences activities of a project to complete it in determine time
and scale to get effective results. This is a very common tool that is frequently used by Aldi to
manage all its works and processes (Burns and Dewhurst, 2016).
PERT:
PERT refers to Project control techniques denotes measure and monitor time, time refer
to manage time to complete an project. It is project planning and management tool that helps in
calculate realistic time to sum up an project. It helps in when the project is too complex for
visualization of all activities in correct manner that is use by Aldi.
CPM (Critical path method):
With help of CPM teams and individuals in Aldi can easily understand the criticality exist
in each and every task. It also defines duration of task and dependencies on other task to
complete it.

1.4 Evaluate the impact of changes to project scope, schedule, finance, risk, quality and
resources.
In a project some changes occurs due to some reason, in project scope consist of specific
requirements or tasks to complete an project. When changes occurs in scope it hinders self
interest of employees and organisation also. Schedule consist of time duration to complete an
task in proper manner. If changes occurs in scheduling of project then it increases cost, time and
resources also (Draper, 2017). Finance that is important attribute or money required to complete
each task if changes occurs in finance then it spoils whole planning and profitability ratio. Risk
factor that is an important factor that an organisation have to evaluate before begin an project, if
risk factor increase then it harms employee morale. Quality and resources is major attribute in
completion of a project due to mistakes of employees wastage occurs of resources and it harms
in quality of products in Aldi. So when changes occurs in any factor management is essential to
reduce harmful results (Enderwick, 2013).
1.5 Analyse the requirements of project governance arrangements.
Project governance is an management framework within the project that helps in taken
appropriate decision. Its major role is to provide decision making framework that is logical,
robust and understandable in nature in capital investment of an organisation. In project
governance arrangements that are very essential for taken an appropriate decisions to attain
desirable results in an appropriate time. It enables in reducing wasteful resources and by
compensating requirements of stakeholders in proper way. It also helps in distribution of roles
and responsibilities in proper manner and their performance criteria should also be clear enough
in context of Aldi.
2.1 Analyse how a project fits with an organisation’s overall vision, objectives, plans and
programmes of work.
The project fits with the organisational goals, vision and mission so that desirable results
should be achieve in better manner. To align with project with its other important factors there is
need to review of each and every aspect of an project. To fit with vision, mission and objectives
Aldi have to focus on long term strategies. To get align with project there is need to set realistic
goals and objectives by management. To fit with the organisational goals and objectives Aldi

have to build decision making framework in which decisions should be taken in proper
framework. There is another option to align with objectives and goals is to set priorities
according to project create upon snapshot of the Aldi. To start a new project of start an
departmental store in a very crowed location to enlarge its market share that build according to
attain organisational goals and objectives.
2.2 Agree the objectives and scope of proposed projects with stakeholders
Stakeholders is an very important assets for an organisation to achieve their goals and
objectives in better manner. It is the responsibility of an aldi to communicate with their
stakeholders about objectives and scope of organisation in clear way so that it create faith in
organisation policies and also for them. Aldi have to stakeholders are important part in decision
making process in that scenario they have adequate knowledge about policies and objectives of
organisation so that they feel less distractions in their aims and vision. If all potential information
should be share with stakeholders they can give their best in organisational development and
enhancement for the both organisation and individual also. While an new project in Aldi there is
need to inform about the scope of project plan and related objectives also so that they give their
accent and contribution also (Escobar-Rodriguez and Monge-Lozano, 2012).
2.3 Assess the interdependencies and potential risks within a project.
To accomplish an project in a suitable manner there is need to focus on factors and their
indecencies on each other. Many types of risk associated with the project that arise during
implementation. Risk analysis is an effective way to ensure that strategies that are use to control
risk and their dependencies should be profitable enough. It has some steps that helps in quantify
effects of uncertainty that exist in project. In which includes identification of threats, probability
of occurrence, estimate the effects on the project in perspective of working time. To access risk
and interdependencies necessary steps should be access to get desirable results. Risk is a factor
that influence each factor in organisation and affect their profitability ratio in Aldi. While start an
new business project some major risk associated that is failure of project because large no. of
other stores also exist there. If project got fail it spoils their goodwill because they known for
their products and services ( Follett, 2013).

2.4 Identify SMART objectives, key performance indicators (KPIs) and evaluations mechanisms
appropriate to the plan.
Project plan is an document that helps to keep project on track, in it scope, goals and
desirable objectives and deadlines should also be evaluated in proper way. A project plan is and
important attribute for Aldi to achieve long term goals. In project the smart objective is which
possess qualities that is measurable, realistic etc. SMART objective of a project is '' To increase
consumer base by 6.5 % in upcoming 6 months''. In that scenario aldi have to affix some key
performance indicators. In KPI potential outcomes of new launching of a project and possible
outcomes and influences of outcome on organisation. In that scenario objective is increase
profitability by increase consumer base by accessibility. In that context mechanism proper
evaluation of work activities and decision taking ability work as strong mechanism tool to get
effective results (Hesselbarth and Schaltegger, 2014).
2.5 Develop proportionate and targeted plans to manage identified risks and contingencies.
Plans to identified risk and manage in an appropriate way that is discussed above in
which find out the risk. When Aldi planned to launch a departmental store in that they have to
find out their potential competitors and stores that situated in near location of their new store.
The next step to find out possible risk and solution to eradicate by possibility of their occurrence.
In case of Aldi it launch a new departmental store by evaluating above discussed threats and
probability of occurrence. If these risk factor occurs in organisation then it spoils organisation's
goodwill and have lot of financial loss. To reduce risk factor bifurcation of target market should
be done in proper way such as customer’s base of Aldi is upper middle class.
2.6 Apply project life cycle approaches to the progress of a project.
Project life-cycle has four stages in which initiating by find out potential opportunities at
particular place. In case of aldi it plan to launch a new departmental store by find out potential
opportunities. After that it plan all activities so that all can understand in proper way by giving
proper tasks and responsibilities. Further execute that plan by observing all factors that helps in
organisational progress and get review time to time and then completion of project when it reach
at desirable objectives (Killing, 2013).

3.1Allocate resources in accordance with the project plan.
When Aldi aimed to launch a new departmental store, to get effective results there are
need to allocate resources in proper way. So that organisation have to face problem of wastage of
resources. In that scenario manager have to allocate resources according to need and then have to
proper observe it. In resources manpower, land, labour are consist so requirement of skilled and
non skilled workforce requirement should be evaluated in proper way.
3.2 Brief project team members on their roles and responsibilities.
In aldi when it planned to launch a new project then it is very important to assign roles
and responsibilities according to individual skills and potential talent (Schwartz, 2014). In a
particular project some positions in which project manager and responsible for frame plans,
communication, scheduling and budget progress etc. another is Business lead that gives
approval, UAT approval and training ad implementation. Solution architect that is responsible
for solution analysis of problem, technical design and code reviews. So all positions are
obligatory for a project and attain desirable outcomes (Scheer, 2012.).
3.3 Implement plans within agreed budgets and timescales.
To launch a new project plan need to frame budget and time schedule for each and every
aspect. In that project estimate budget to gain desirable results is 200,000 pond and timescales to
complete each and every task requires in which includes initiation stage of project plan takes
almost 2 months and planning the work and tasks in proper manner needs 3 months and
executing whole project plan in proper way requires 3 months and at last completion of project
that takes 2 months. So it denotes time that each activity taken while implementation of project.
3.4 Communicate the requirements of the plans to those who will be affected.
Aldi aimed to launch a new project to increase their consumer base and increase
profitability ratio. In that scenario they have to communicate with potential stakeholders in
which employees, suppliers, investors and stakeholders so that they can give their proper
contribution to bring results in desirable form. When Aldi opens a new store then lot of staff
members requires and investors also require to invest money in their business and suppliers that
supply products. Hence communication with each stakeholder is very necessary to get desirable
results.

3.5 Revise plans in the light of changing circumstances in accordance with project objectives and
identified risks.
Due to the competition and global environment some changes that occurs in project of
Aldi that is problem in raise fund and changes in plans and practices at global level. Hence it
increases risk factor and objectives that influence on whole business portfolio.
3.6 Keep stakeholders up to date with developments and problems.
When changes occurs so organisation have to properly contact with their key
stakeholders and give them proper information and take suggestions from them. Information
should be given through letters and mails. In that scenario meetings should be held so that
frequently actions should be taken. Employees have to aware about new concepts and laws that
are essential for survival. Stakeholders are important part of organisational growth and
sustainability so they have to be aware about organisational self interest and individual also
(Shafritz and et.al ., 2016.).
3.7 Complete close-out actions in accordance with project plans.
In Aldi when if faces problem of lack in finance and investments it borrows money and
take loans from different sources crowd funding websites etc. and to solve other problem by
adopting laws in which employment law that is concerned with protective labour laws and
benefits and unemployment compensation etc. in that scenario Aldi have to adopt changes
according to them (Young, 2015). To get complete close outs and their results by observing
recent changes and moderation in them.
3.8 Adhere to organisational policies and procedures, legal and ethical requirements.
In case of Aldi when it planned to launch a new project but due to change in
circumstances it have to adopt different rules and regulations that increase their operating cost
and on other hand borrow money from different sources increase their rate of operation and
management that increase probability of failure of business.
4.1 Conduct periodic reviews of the progress and effectiveness of a project using information
from a range of sources.
From the above changes that occurs due to change in situations employees feel
complexity and it also occurs cost. On other hand it increases loyalty of consumers and

employees towards organisation and its products because they follow all their rules and
regulations and protect self interest of their employees in aldi. Further they have to give proper
guidelines and instructions to their employees so that they can adjust oneself according to
requirement of project (Storey, 2016 ).
4.2 Evaluate the effectiveness of capturing and managing project-related knowledge.
Project related knowledge and database helps in get important insights and knowledge
that helps in improve condition of business to enhance in productivity. It gives information about
changes that are very necessary for organisational development and to run for long term in
business (Waldo, 2017). Capturing important knowledge about competitors helps in to adopt
changes and expand in their market share.
4.3 Report on the effectiveness of plans.
To
Project Head
Aldi group
Subject: Effectiveness of plan.
Recent changes that occurs in business in which changes in laws and procedures and problem
regarding lack in finance. In that case employees are pleasantly agree to adopt changes and give
their contribution in increase profitability. On other hand organisation in that case suffer from
huge cost of operation but it also increase loyalty of consumers. Organisation and employees
eagerly ready to adopt changes.
Thank you
Project manager
CONCLUSION
From above report it has been concluded that business administration plays crucial role in
achieving business goals and objectives in proper way. While launching a business project
budget plans and procedures should be chosen and proper knowledge should be deliver to

potential stakeholder so that they can give their contribution. Further it gives important to
prepare budget and timescales to accomplish work at proper time and to get measurable results
so that proper results can be achieve. When due to circumstances changes organisation have to
adopt changes and inform accordingly to potential information it enhances their morale.

REFERENCES
Books and journals:
Beamish, P., 2013. Multinational joint ventures in developing countries (RLE international
business). Routledge.
Bean, J., 2015. Big Government and Affirmative Action: The Scandalous History of the Small
Business Administration. University Press of Kentucky.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Draper, T., 2017. American business and public policy: The politics of foreign trade. Routledge.
Enderwick, P. ed., 2013. Multinational Service Firms (RLE International Business). Routledge.
Escobar-Rodriguez, T. and Monge-Lozano, P., 2012. The acceptance of Moodle technology by
business administration students. Computers & Education. 58(4). pp.1085-1093.
Follett, M.P., 2013. Freedom and co-ordination (RLE: Organizations): lectures in business
organization. Routledge.
Hesselbarth, C. and Schaltegger, S., 2014. Educating change agents for sustainability–learnings
from the first sustainability management master of business administration. Journal of
cleaner production. 62. pp.24-36.
Killing, P., 2013. Strategies for joint venture success (RLE international business). Routledge.
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Schwartz, B.F., 2014. The Civil Works Administration, 1933-1934: The Business of Emergency
Employment in the New Deal (Vol. 589). Princeton University Press.
Shafritz, J.M., and et.al ., 2016. Introducing public administration. Routledge.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Waldo, D., 2017. The administrative state: A study of the political theory of American public
administration. Routledge.
Young, S., 2015. Private business and economic reform in China. Routledge.

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