Case Project Report
Added on 2023-02-01
32 Pages9324 Words90 Views
FinanceEntrepreneurshipData Science and Big Data
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Running head: CASE PROJECT REPORT
Case project report
Name of the student
Name of the university
Student ID
Author note
Case project report
Name of the student
Name of the university
Student ID
Author note
CASE PROJECT REPORT
Table of Contents
1. Overview................................................................................................................................2
1.1 Project Title......................................................................................................................3
1.2 Project Background..........................................................................................................3
2. Objectives and Scope.............................................................................................................3
2.1 Objective(s) of the assignment, assumptions and constraints..........................................3
2.2 Expected outcome(s)/benefits..........................................................................................4
3. Literature Review...................................................................................................................4
3.1 Literature Review on Project Economical Analysis........................................................4
3.2 Analyzing the economic scenario of Australia:...................................................................5
3.3 New ventures funding system in Australia:.........................................................................7
3.4 Identifying the market trend of smart watches in Australia:................................................7
3.5 Factors influencing the products price:................................................................................9
3.6 Special Topic Assigned to each Team by the Lecturer..................................................10
3.8 The Developed Methodology for the Case project........................................................11
4. Financial Model of the Case Project....................................................................................12
4.1 Assumptions including interest rates, inflation, project life, etc....................................12
4.2 Constraints......................................................................................................................12
4.3Risks................................................................................................................................13
4.4 Cash inflows and outflows.............................................................................................14
5. Financial and Sensitivity Analyses of the Case Project.......................................................16
5.1 Financial Analysis of the Case Project...........................................................................16
Table of Contents
1. Overview................................................................................................................................2
1.1 Project Title......................................................................................................................3
1.2 Project Background..........................................................................................................3
2. Objectives and Scope.............................................................................................................3
2.1 Objective(s) of the assignment, assumptions and constraints..........................................3
2.2 Expected outcome(s)/benefits..........................................................................................4
3. Literature Review...................................................................................................................4
3.1 Literature Review on Project Economical Analysis........................................................4
3.2 Analyzing the economic scenario of Australia:...................................................................5
3.3 New ventures funding system in Australia:.........................................................................7
3.4 Identifying the market trend of smart watches in Australia:................................................7
3.5 Factors influencing the products price:................................................................................9
3.6 Special Topic Assigned to each Team by the Lecturer..................................................10
3.8 The Developed Methodology for the Case project........................................................11
4. Financial Model of the Case Project....................................................................................12
4.1 Assumptions including interest rates, inflation, project life, etc....................................12
4.2 Constraints......................................................................................................................12
4.3Risks................................................................................................................................13
4.4 Cash inflows and outflows.............................................................................................14
5. Financial and Sensitivity Analyses of the Case Project.......................................................16
5.1 Financial Analysis of the Case Project...........................................................................16
CASE PROJECT REPORT
5.2 Sensitivity Analysis of the Case Project........................................................................19
5.3 Other non-financial decision making factors involved in the Case Project...................19
5.4 Selection of Best Alternative.........................................................................................20
6. Conclusion............................................................................................................................24
References and Bibliography list:............................................................................................25
Appendix:.................................................................................................................................30
5.2 Sensitivity Analysis of the Case Project........................................................................19
5.3 Other non-financial decision making factors involved in the Case Project...................19
5.4 Selection of Best Alternative.........................................................................................20
6. Conclusion............................................................................................................................24
References and Bibliography list:............................................................................................25
Appendix:.................................................................................................................................30
CASE PROJECT REPORT
1. Overview
The case project report is prepared for demonstrating the assessment of the evaluation of
the market conditions of Australia. Such analysis would provide assistance to the members
of team by enabling them to select any particular business on which they are required to
make case project. Hence, this requires assessing the market adequately so that the ongoing
trend can ascertain and accordingly the development of business can be done. For
performing the economic analysis of the project, the paper also addresses the review of
literature along with the development of methodology for evaluating the project to be
developed. In addition to this, the sensitivity and financial analysis of the case project is
performed along with the capital budgeting and break even analysis.
1.1 Project Title
The title of the project is to develop planning of business venture of smart watches in
Australia.
1.2 Project Background
The development of the case project has been done by analyzing the market of
Australia. The business plan would be developed for launching Smart watch business after
conducting and spending time on researching the market and analyzing the literature review.
2. Objectives and Scope
With the advancement in technology, there has been change in the preference and
liking if the consumers, therefore, the case project intends to develop the business for
launching smart watch in the country. The demand for smart watches in Australia has
surpassed the demand for cell phones and setting up the business would enable them to reap
1. Overview
The case project report is prepared for demonstrating the assessment of the evaluation of
the market conditions of Australia. Such analysis would provide assistance to the members
of team by enabling them to select any particular business on which they are required to
make case project. Hence, this requires assessing the market adequately so that the ongoing
trend can ascertain and accordingly the development of business can be done. For
performing the economic analysis of the project, the paper also addresses the review of
literature along with the development of methodology for evaluating the project to be
developed. In addition to this, the sensitivity and financial analysis of the case project is
performed along with the capital budgeting and break even analysis.
1.1 Project Title
The title of the project is to develop planning of business venture of smart watches in
Australia.
1.2 Project Background
The development of the case project has been done by analyzing the market of
Australia. The business plan would be developed for launching Smart watch business after
conducting and spending time on researching the market and analyzing the literature review.
2. Objectives and Scope
With the advancement in technology, there has been change in the preference and
liking if the consumers, therefore, the case project intends to develop the business for
launching smart watch in the country. The demand for smart watches in Australia has
surpassed the demand for cell phones and setting up the business would enable them to reap
CASE PROJECT REPORT
the benefits. In addition to this, the case project has the objective of setting up a profitable
business of selling the smart watches and enabling the consumers to become adaptive to the
modern technology.
2.1 Objective(s) of the assignment, assumptions and constraints
This assignment intends to provide every members of the group with adequate
knowledge about the technological advancement and how the customer preferences are
getting changes in light of such development. Moreover, members will become aware of the
latest ongoing trend and how the businesses are impacted by such development in
technology. While development the case project, it has been assumed that the market for
smart watches are developing significantly which would contribute to the growth of business
and thereby influence their profitability.
2.2 Expected outcome(s)/benefits
The business driver for launching the business of smart watch is the growth of smart
watch lured by the technological development and changing preferences of customers. The
setting of smart watch business is expected to reach the break even units after few years of
operations and generating the profits in the later years.
3. Literature Review
This section of the case project provides a description about the literature review on
the project’s economic analysis and the methodology that has been developed for evaluating
the case project. In addition to this, review of literature regarding the sensitivity analysis used
by the business has also been demonstrated. There are different sensitivity measures that are
used for performing the sensitivity analysis of the proposed business (Frynas and Mellahi
2015). It is required to explore the method by performing the robust identification of such
measures.
the benefits. In addition to this, the case project has the objective of setting up a profitable
business of selling the smart watches and enabling the consumers to become adaptive to the
modern technology.
2.1 Objective(s) of the assignment, assumptions and constraints
This assignment intends to provide every members of the group with adequate
knowledge about the technological advancement and how the customer preferences are
getting changes in light of such development. Moreover, members will become aware of the
latest ongoing trend and how the businesses are impacted by such development in
technology. While development the case project, it has been assumed that the market for
smart watches are developing significantly which would contribute to the growth of business
and thereby influence their profitability.
2.2 Expected outcome(s)/benefits
The business driver for launching the business of smart watch is the growth of smart
watch lured by the technological development and changing preferences of customers. The
setting of smart watch business is expected to reach the break even units after few years of
operations and generating the profits in the later years.
3. Literature Review
This section of the case project provides a description about the literature review on
the project’s economic analysis and the methodology that has been developed for evaluating
the case project. In addition to this, review of literature regarding the sensitivity analysis used
by the business has also been demonstrated. There are different sensitivity measures that are
used for performing the sensitivity analysis of the proposed business (Frynas and Mellahi
2015). It is required to explore the method by performing the robust identification of such
measures.
CASE PROJECT REPORT
3.1 Literature Review on Project Economical Analysis
Australia is the country that has recorded remarkable economic growth for more than
twenty five years unmarred by recession. A robust development in the entrepreneurship has
been supported by the well functioning legal system and independent bureaucracy along with
multiple benefits generated by the effective system of government. In addition to this, the
operations of private sector have been eased due to reduced interference on part of
government and this has made Australia an attractive and vibrant destination for investment.
In areas of providing service and technology development, the country is competing at the
international level. Organizations and companies are required to pay a flat corporate tax at the
rate of 30% and with the overall burden of tax becoming equivalent to the 27.5% of domestic
income generated. New business financing has not been an issue in Australia with most of the
foreign investors willing to make investment in the startup projects (Bruce et al. 2015).
The higher rate of start up business in the country is considered as one of the positive
indicators for startups as they are contributory factor to the growth. Nonetheless, there is
decline in the proportion of the total start up business. Furthermore, there has been fall in the
startup share in gross creation of job and rate of growth of employment. Growth in overall
productivity and innovation in the market is being driven by the development of new business
(Robinson 2016). The establishment of TechSmart business in Australia would be supported
by various developmental factors that would drive their business growth. Therefore, it is
expected that the economy of Australia would receive positive contribution from the starting
up of new technology business of smart watch. With the year passing, it is likely that the
development of business would result in generating improved and innovative products.
From the analysis of the market scenario in Australia, it has been found that
innovativeness is concentrated around cities such as Melbourne and Sydney. Therefore, the
business of TechSmart would be set up in Melbourne, Australia. It can be said that the new
3.1 Literature Review on Project Economical Analysis
Australia is the country that has recorded remarkable economic growth for more than
twenty five years unmarred by recession. A robust development in the entrepreneurship has
been supported by the well functioning legal system and independent bureaucracy along with
multiple benefits generated by the effective system of government. In addition to this, the
operations of private sector have been eased due to reduced interference on part of
government and this has made Australia an attractive and vibrant destination for investment.
In areas of providing service and technology development, the country is competing at the
international level. Organizations and companies are required to pay a flat corporate tax at the
rate of 30% and with the overall burden of tax becoming equivalent to the 27.5% of domestic
income generated. New business financing has not been an issue in Australia with most of the
foreign investors willing to make investment in the startup projects (Bruce et al. 2015).
The higher rate of start up business in the country is considered as one of the positive
indicators for startups as they are contributory factor to the growth. Nonetheless, there is
decline in the proportion of the total start up business. Furthermore, there has been fall in the
startup share in gross creation of job and rate of growth of employment. Growth in overall
productivity and innovation in the market is being driven by the development of new business
(Robinson 2016). The establishment of TechSmart business in Australia would be supported
by various developmental factors that would drive their business growth. Therefore, it is
expected that the economy of Australia would receive positive contribution from the starting
up of new technology business of smart watch. With the year passing, it is likely that the
development of business would result in generating improved and innovative products.
From the analysis of the market scenario in Australia, it has been found that
innovativeness is concentrated around cities such as Melbourne and Sydney. Therefore, the
business of TechSmart would be set up in Melbourne, Australia. It can be said that the new
CASE PROJECT REPORT
trends of market can be swiftly spotted by the newly development of venture such as
TechSmart. This is so because the changes in the preferences and the trend of the consumers
can be promptly responds by such newly developed business which uses the innovation
concept as their driver of business growth (Giang et al. 2015).
3.2 Analyzing the economic scenario of Australia:
The economy of Australia seems to have recovered in the first quarter of fiscal year
2017 after they experienced shock. Due to increased consumer confidence at the outset of this
year, it seems to create positive knock on the customer spending and business investment.
Despite of various weaknesses in the non mining business, the Australian economy is
considered to be on the moderately solid footing.
For the last few years, the rate of inflation in the country has fallen below the
expectation which has resulted in the increased cutting of rate by reserve bank of Australia
and sparked continuous fears of the weakness in economy. The consumer price index over
the years have risen to 0.5% with the inflation rate standing at 1.3% in the first quarter of
fiscal year 2019 compared to 1.8% from previous year. Since the third quarter of 2016, this
rate of inflation recorded was the lowest. The economic growth rate in the December quarter
of year 2018 adjusted by 0.2% and the growth rate was the weakest growth rate recorded
since the third quarter of 2016 resulting from the modest expansion in private investment and
contraction in dwelling investment. Furthermore, the unemployment rate in the country edged
up to 5% which was higher as against eight year low of 4.9% (Antonius and Gao 2015).
Therefore, the unemployment rate in the current period increased compared to previous
period.
People in Australia are considered to be the quick technology adopters and despite the
fact that digital lifestyle in the country is being promoted because of zealousness of electronic
trends of market can be swiftly spotted by the newly development of venture such as
TechSmart. This is so because the changes in the preferences and the trend of the consumers
can be promptly responds by such newly developed business which uses the innovation
concept as their driver of business growth (Giang et al. 2015).
3.2 Analyzing the economic scenario of Australia:
The economy of Australia seems to have recovered in the first quarter of fiscal year
2017 after they experienced shock. Due to increased consumer confidence at the outset of this
year, it seems to create positive knock on the customer spending and business investment.
Despite of various weaknesses in the non mining business, the Australian economy is
considered to be on the moderately solid footing.
For the last few years, the rate of inflation in the country has fallen below the
expectation which has resulted in the increased cutting of rate by reserve bank of Australia
and sparked continuous fears of the weakness in economy. The consumer price index over
the years have risen to 0.5% with the inflation rate standing at 1.3% in the first quarter of
fiscal year 2019 compared to 1.8% from previous year. Since the third quarter of 2016, this
rate of inflation recorded was the lowest. The economic growth rate in the December quarter
of year 2018 adjusted by 0.2% and the growth rate was the weakest growth rate recorded
since the third quarter of 2016 resulting from the modest expansion in private investment and
contraction in dwelling investment. Furthermore, the unemployment rate in the country edged
up to 5% which was higher as against eight year low of 4.9% (Antonius and Gao 2015).
Therefore, the unemployment rate in the current period increased compared to previous
period.
People in Australia are considered to be the quick technology adopters and despite the
fact that digital lifestyle in the country is being promoted because of zealousness of electronic
CASE PROJECT REPORT
industry and doubling of the consumer spending in the last few years, consumer are still
lagging behind which makes the industry less attractive. Such lagging is attributable to lower
disposable income along with rising price of petrol. In addition to this, the growth of inflation
rate is being curbed by the rising interest rate and continuous growth of economy (Hatfield et
al. 2015). However, the spending of consumers on the consumer electronic products would
increase because of increase in the discretionary income and cutting down of the tax rate by
government.
3.3 New ventures funding system in Australia:
There are several funding sources that are used by the new business venture in
Australia. It has been ascertained that the start ups in the country rely on their savings,
personal credit facilities and credit cards instead of seeking external source of finance. In the
early stage of establishment of business such as TechSmart, they can make use of equity
source of finance for funding their operations and raising capital. In terms of setting up of
new business venture, Australia stands in the seventh position and when it comes to the ease
of carrying out any business, the county has been ranked tenth in the world (Turban et al.
2017).
3.4 Identifying the market trend of smart watches in Australia:
The market size of smart watch business in Australia is expected to increase as this
particular electronic device has started to make its way in the consumer shopping list. Some
of the features that owes to the standalone segment accounting for highest share of market are
acceptance of sim cards, wireless options, access to internet and its ability to be used as
Smartphone. The top factors that impacted the growth of smart watch market are increase in
health awareness among consumers and growth in demand for sport and wireless fitness
devices. However, the market growth of smart watch is restrained by factors such as lack of
industry and doubling of the consumer spending in the last few years, consumer are still
lagging behind which makes the industry less attractive. Such lagging is attributable to lower
disposable income along with rising price of petrol. In addition to this, the growth of inflation
rate is being curbed by the rising interest rate and continuous growth of economy (Hatfield et
al. 2015). However, the spending of consumers on the consumer electronic products would
increase because of increase in the discretionary income and cutting down of the tax rate by
government.
3.3 New ventures funding system in Australia:
There are several funding sources that are used by the new business venture in
Australia. It has been ascertained that the start ups in the country rely on their savings,
personal credit facilities and credit cards instead of seeking external source of finance. In the
early stage of establishment of business such as TechSmart, they can make use of equity
source of finance for funding their operations and raising capital. In terms of setting up of
new business venture, Australia stands in the seventh position and when it comes to the ease
of carrying out any business, the county has been ranked tenth in the world (Turban et al.
2017).
3.4 Identifying the market trend of smart watches in Australia:
The market size of smart watch business in Australia is expected to increase as this
particular electronic device has started to make its way in the consumer shopping list. Some
of the features that owes to the standalone segment accounting for highest share of market are
acceptance of sim cards, wireless options, access to internet and its ability to be used as
Smartphone. The top factors that impacted the growth of smart watch market are increase in
health awareness among consumers and growth in demand for sport and wireless fitness
devices. However, the market growth of smart watch is restrained by factors such as lack of
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