Closure of 60 Big W Stores

The project discusses about the failure of Woolworth in keeping up to the expectation of their customers leading to the closure of 60 Big W stores. Learn about the control systems used for project cost, scheduling, quality and scope. Find out the possible actions for success and the conclusions drawn from the discussions.

Closure of 60 Big W
Stores
Name of the Student
Name of the University

The Project Snapshot
(Figure 1: The Snapshot of the News
Article)
(Source: Richards et al. 2019)

Introduction to the Project Idea
 The project discusses about the failure of Woolworth in keeping up to
the expectation of their customers
 Woolworth had to shut down their major stores in Australia
 Inefficient project management strategies had been the primary
cause of the shutdown
 Falling profits were the primary cause for shutting down of 60 Big W
stores

Major Issues leading to Project
Failure
 Internal problems within the management team at Big W had led to
problems to the external outlets
 The discount departments had inefficient approaches based on
bringing innovative strategies
 Walmart had initiated the process of purchasing the majority of
stocks at Woolworth (Yamakawa, Peng and Deeds 2015)
 Nearly $800 million loss of profits were the primary reason leading to
store shut down

Major Issues leading to Project
Failure
 Lack of internal business revenue were the primary causes for the
business shut down
 Online shopping strategies were not implemented within the
company
 The gaining of competitive advantage could not be gathered without
the lack of online business presence
 Most of the stores were located at inaccessible areas and were
difficult to be reached by customers

Control Systems used for
Project
 The project control systems refers to the processes of analytical
procedures, data gathering and management
 Control systems are used for having an impact over the cost and time
results
 They also describe the team structure and the appointment of tasks
to proper stakeholders
 Observation over project status can also be described as a beneficial
system of control

Control Systems used for
Project Cost
 The Big W had planned to increase the profit margins by 2.7% till
December
 Cost estimations were been made for boosting productivity
 Lack of online presence were a major issue towards gaining a low
competitive advantage
 A cost management structure needs to be planned based on
controlling the entire budgeting structure

Control Systems used for
Project Cost
(Figure 2: The Cost Management Control System for the
Project)
(Source: Maskell, Baggaley and Grasso 2017)

Control Systems used for Project Scheduling
The certain control systems that could be used for project scheduling are
discussed as:
 Determination of necessary tasks that needs to be included within the
project
 Determination of costs structure long with the aligned project
activities
 The Schedule Variance (SV) and Earned Value Management (EVM)
would also be considered during project scheduling

Control Systems for Quality and Scope
The certain control systems that could be used for quality and scope are:
 Preparing of a scope statement discussing the project vision
 Providing definition of requirements meant for procurement aiming at
successful project implementation (Kamwana and Muturi 2014)
 Maintaining proper communication at all levels
 Creation of cost estimation structure, determining constraints,
assumptions and risks

Analysis of costs and schedule overruns
The cost overruns that might become a part of the project could be
made due to the following reasons:
 Incurring of a best infrastructure at Big W stores would incur a huge
estimation of cost considering every possible factors
 An estimation of $2.7 billion was made at restructuring of the stores
during the process of making lease commitments (Larsen et al. 2015)
 Operation of their business functionalities in reputed shopping malls
would incur a huge sponsorship program

Analysis of costs and schedule overruns
The schedule overruns that might become a part of the project could be
made due to the following reasons:
 The Macquarie Wealth Management team would need to design new
plans based on updating project management strategies
 Infrastructure should be developed based on building of new stores in
shopping malls
 Scheduling of this project would incur a long term process of planning
of activities that needs to be included within the project

Analysis of project estimation team
The schedule overruns that might become a part of the project could be
made due to the following reasons:
 The Macquarie Wealth Management team would need to design new
plans based on updating project management strategies
 Infrastructure should be developed based on building of new stores in
shopping malls (Titarenko, Titov and Titarenko 2014)
 Scheduling of this project would incur a long term process of planning
of activities that needs to be included within the project

Analysis of relationship between overruns and the
stakeholders
The relationship between problems identified within cost/time overruns
and stakeholders are:
 Competency is a major aspect based on which stakeholders need to
develop the project in a better manner
 Professionalism should be incorporated within the workplace based
on providing exact reports based on project progress
 Investigation of best site positions is a crucial aspect based on
gaining maximum customer attention

Analysis of relationship between overruns and the
stakeholders
The other factors and problems identified within cost/time overruns and
stakeholders are:
 The identification of contractors should be proper in order to lead the
project towards success
 Shortage of business funds could lead to stoppage of the project work
at future stages
 A proper contractor should design the schedule of each activity in
order to help the labors in achieving the target

Analysis of possible actions for success
There are certain kind of activities based on PM principles that could help
in arranging the project in a better manner. These are:
 Choosing of a proper contractor group who would suit the project terms
and conditions
 Setting of a brief PM plan that would list the various activities
 Briefing out the costs incurred at each project step

Analysis of possible actions for success
Other kind of activities that could be suitable for the project managing
aspects are:
 Ethical ways of choosing a contractor could be made based on making
use of a tendering system
 Customer feedback should be drawn based on understanding of surveys
and the feedback, which is being shared by them
 The lowest bidder should be selected and they be appointed for project
design

Conclusions drawn
The conclusions, which could be drawn from the supported discussions are:
 Improper design structure, absence of online presence for the business
and lower estimation of customer demands were the primary causes of
the shut down
 Cost and Schedule overruns can also be discussed as main causes of
project failures
 Consideration of proper setting of contractors, estimation of budget and
setting of proper schedules are the key to project success

References
Kamwana, W.C. and Muturi, W., 2014. Effects of Financial Management on Performance of
World Bank Funded Projects in Kenya: A Case of KPLC Projects. European Journal of
Business Management, 2(1), pp.370-384.
Larsen, J.K., Shen, G.Q., Lindhard, S.M. and Brunoe, T.D., 2015. Factors affecting schedule
delay, cost overrun, and quality level in public construction projects. Journal of
Management in Engineering, 32(1), p.04015032.
Maskell, B.H., Baggaley, B. and Grasso, L., 2017. Practical lean accounting: a proven
system for measuring and managing the lean enterprise. Productivity Press.
Richards, D., Richards, D., Nash, E., Nash, E., Christian, R., Arreza, J., Nash, E. and Nash, E.
(2019). BREAKING NEWS: 60 Big W Stores Tipped To Be Closed, Walmart Buy Rumour
Quashed – channelnews. [online] Channelnews.com.au. Available at:
https://www.channelnews.com.au/breaking-news60-big-w-stores-tipped-to-be-closed-
walmart-buy-rumour-quashed/ [Accessed 28 Sep. 2019].
Titarenko, B., Titov, S. and Titarenko, R., 2014. Risk management in innovation projects.
In Applied Mechanics and Materials (Vol. 638, pp. 2338-2341). Trans Tech Publications.
Yamakawa, Y., Peng, M.W. and Deeds, D.L., 2015. Rising from the ashes: Cognitive
determinants of venture growth after entrepreneurial failure. Entrepreneurship Theory and
Practice, 39(2), pp.209-236.

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