project and risk management - Assignment

Project and Risk Management

Table of Contents
INTRODUCTION...........................................................................................................................1
SECTION 1 – INTRODUCTION AND PROJECT CHARTER....................................................1
Brief presentation of Morrisons..............................................................................................1
Rationale of the project..........................................................................................................1
3 SMART objectives..............................................................................................................1
Project's key deliverables.......................................................................................................1
Project Estimation and project time line................................................................................2
Project's assumptions and constraints.....................................................................................2
SECTION 2 – PROJECT SCOPE BASELINE AND SCHEDULE ..............................................2
Work Breakdown Structure (WBS)........................................................................................2
PDM methodology.................................................................................................................3
Project Gantt Chart.................................................................................................................4
SECTION 3 – PROJECT RISK ASSESSMENT AND MANAGEMENT....................................5
Project's risks and risk registers..............................................................................................5
Qualitative risk assessment.....................................................................................................7
Suitable risk management strategy.........................................................................................8
SECTION 4 – PROJECT COSTING, BUDGETING AND FINANCIAL APPRAISAL..............9
Benchmark of similar projects to produce an estimation of cost and budget involved and
forecast of expected revenue stream.......................................................................................9
Appraise the financial viability of the project......................................................................11
SECTION 5 – PROJECT STAKEHOLDER MANAGEMENT AND COMMUNICATIONS
PLAN.............................................................................................................................................11
SECTION 6 - CLOSING THE PROJECT....................................................................................12
Measures and mechanisms to ensure the project remains in agreed scope..........................12
Key deliverables of the handover phase...............................................................................12

CONCLUSION..............................................................................................................................12
SECTION 7 - REFERENCES.......................................................................................................13
SECTION 8....................................................................................................................................14
Appendix..............................................................................................................................14

INTRODUCTION
Project and Risk Management is being considered as a process of identifying, analysing
and handling all the risks which basically impacts upon overall life cycle of a project plan
(Fleming and Koppelman, 2016). This specifically aid in attaining the desired targets in
stipulated time frame. Morrisons which is fourth largest chain of supermarkets in the United
Kingdom has been chosen for this report, which is aiming to open 20 budget stores in order to
gain competitive advantages against ALDI and LIDL.
SECTION 1 – INTRODUCTION AND PROJECT CHARTER
Brief presentation of Morrisons
Wm Morrison Supermarkets plc which is performing its operations as Morrisons, found
in the year of 1899 by William Morrison. It headquartered in Bradford, West Yorkshire, England
and Morrisons is being considered as the fourth largest chain of supermarkets in the United
Kingdom. Along with this, company is having approximately 498 stores in all over the world.
Since, the organisation has faced decrease in there sales and revenue, Morrisons has decided to
open 20 budget stores in order to compete with a range of companies like LIDL and ALDI.
Rationale of the project
Basic reason behind this project plan is to improve presence of Morrisons not only in
United Kingdom but, in all over the world. Company has recently found that there market share
is going down and this made BOD to take decisions to open 20 budget stores.
3 SMART objectives
 To enhance sales of cheap products (grocery) by 10% of £142m within 3 years.
 To improve revenue by 20% of £17.26B through offering customers with economic
products within 2.5 years.
 To enhance the customer engagement through increasing fan following on social media
by 5% of 267,780 followers in maximum time frame of 3 years (Cleden, 2017).
Project's key deliverables
Cheap products and services are going to be the key deliverables of present project plan.
These are going to be offered by Morrisons in 20 brand new budget stores which will directly aid
Morrisons in reaching to new heights in specific time frame.
1

Project Estimation and project time line
Present project plan is generally estimated approximately to 13,18,080.00 Pounds which
will aid Morrisons in opening 20 new budget stores in all over United Kingdom.
Project's assumptions and constraints
If it is talked about project's assumptions, it can easily be said that Morrisons will
definitely reach to a good position even if market becomes unstable in near future (within 3
years).
On the other hand, if it is talked about project's constraints, Morrisons may face a range
of problems like change in customer demands, amendments among legal laws of United
Kingdom. These factors may restrict Morrisons in attaining desired goals and objectives (Hillson
and Murray-Webster, 2017).
SECTION 2 – PROJECT SCOPE BASELINE AND SCHEDULE
Work Breakdown Structure (WBS)
Work breakdown structure is a hierarchical tree structure. Their main aim is to manage a
large projects and to break down it into a smaller parts where the work is managed by team
members. It is an very important tool for managing projects, from starting to an end. It helps in
2

identifying a risk, estimate a cost and time in a given project. Work breakdown structure
provides an information regarding their project in which it contain planning, estimation cost,
resource allocation and time period. It also helps in managing and measuring the quality of
project.
Based on the above mentioned Work breakdown structure, it can easily be said that every
single stage and accomplishment of different phases could help Morrisons in holding a good
position in the market in specific time frame. Through this, company will also gain competitive
advantages that may aid Morrisons in giving good rivalry to competitors like ALDI and LIDL
(Hopkinson, 2017).
PDM methodology
The precedence diagram method (PDM) a tool for scheduling activities in a project plan.
It is a method of constructing a project schedule network diagram that uses boxes, referred to as
nodes, to represent activities and connects them with arrows that shows the dependencies.
3

A Analysing the business environment
B Interpreting the gathered information
C Finding the best suitable strategy to gain competitive advantages
D Developing the strategic plan
E Controlling the risks
F Modifications, if needed
Based on the above diagram, it can be said that B and C are the two phases that are
connected to each other where finding out the best suitable strategy to gain competitive
advantages, with the help of interpretations.
Project Gantt Chart
Gantt chart is being considered as a type of bar chart that shows a project schedule. This
chart lists the tasks to be performed on the vertical axis, and time intervals on the horizontal axis.
The width of the horizontal bars in the graph shows the duration of each activity (Hu, 2016).
There are a range of activities that are involved and these are given beneath:
Activities:-
1. Analysis – On-site meetings, discussions with stakeholders, documentation of current
system requirements and a complete analysis.
2. Design – Design of budget stores, creation of design specifications and a complete
design.
4

3. Development – Alterations as per change in customer's needs, testing the economical
products at existing business market.
4. Execution – Setting prices of products, developing effective promotional activities.
5

SECTION 3 – PROJECT RISK ASSESSMENT AND MANAGEMENT
Project's risks and risk registers
In present context, there are a range of environmental factors (both internal and external)
are basically can be considered as some of risks that may affect the project plan of Morrisons in
order to introduce 20 new budget stores in United Kingdom (Khameneh, Taheri, and Ershadi,
2016.).
Under this, few risks that are impacting upon project plan are given beneath: Technological changes – This is being considered as one of the main factor which may
affect the project plan of Morrisons. Change in customer needs – Another risk which may affect the Morrisons desired goals
which may lead them to change overall prices of economic products which they are going
to sell in its new 20 new budget stores.
 Alterations among strategies of ALDI, LIDL and other enterprises – Due to rise in
competition, companies basically makes alterations in their strategies in order to grab a
good hold in the existing market. This can also be considered as one of major approach,
that may affect project plan.
S
.
N
o
.
Da
te
rai
se
d
Risk
Description
Likeli
hood
Impact Severi
ty
Own
er
Mitigatio
n action
Contingent
action
Progress
on actions
Stat
us
1 20
/0
3/
19
There is a
major risk that
Morrisons had
faced and i.e.
technology and
this affected
time as well for
completing the
LOW HIGH AMB
ER
BO
D
Focusing
on every
single
change
that has
been
faced by
Change in
operations
where
regular
check ups
started
being done
on every 5
Update
25/03/2019
mitigation
actions
were
basically
implement
OPE
N
6

feedbacks in
specific time
frame.
company. days. ed
2 15
/0
3/
19
Change in
customer needs
where plan
might get
affected the
most.
LOW HIGH AMB
ER
Man
ager/
Lead
er
Meeting
the
requirem
ents of
customer
s with
different
tools and
technique
s.
Offering
customers
with good
quality
products
with
minimal
prices
Update
23/03/2019
mitigation
actions
were taken
OPE
N
Qualitative risk assessment
In a qualitative risk analysis, likelihood or probability is being basically measured
through a range of relative scale and these are, likelihood, impact and severity. If it is talked
about, probability of occurrence, than it can easily be said that changes among technology,
governmental laws like amendments and more can take place at any time. This could impact
upon overall performance level of developed project plan (Muriana and Vizzini, 2017).
Profitability Matrix
7

Based on the findings, it can be said that Morrisons will gain an average profit where, it
might have a room to grow in specific time frame. Company in it's initial stage, will start with a
slow profit margins but if it is talked for a longer time frame, Morrisons may reach to new
heights.
Impact Matrix: This is being considered as one of an effective tool which may help
organisations to convert strategy into action. In the same way, if it is talked about Morrisons,
then customers expectations are really very high from the company as it is already having a good
reputation in all over the world (Olechowski, 2016). Thus, any sort of change, may directly
affect the project plan highly on Morrisons where it is launching 20 new budget stores.
8

Suitable risk management strategy
In present case, it will be required for Morrisons to accept the risks that are involved in
over all scenario of project plan to launch 20 new budget stores. With the help of this, it can
easily be said that company might improve competitive advantages in specific time frame
(Paquin, Gauthier and Morin, 2016).
SECTION 4 – PROJECT COSTING, BUDGETING AND FINANCIAL
APPRAISAL
Benchmark of similar projects to produce an estimation of cost and budget involved and forecast
of expected revenue stream
Just the way Tesco has opened budget stores named as Jack's stores, a budget plan has
been developed considering the same by finance department of Morrisons for opening 20 budget
stores in United Kingdom.
BUSINESS BUDGET
Month/Year: 03/19
SUMMARY ACTUA
L
BUDGET
ED
OVER
BUDGET
UNDER
BUDGET
Total income
14,32,500
.00
17,19,000.
00 -2,86,500.00
Total expenses
9,48,160.
00
11,37,792.
00 -1,89,632.00
Income less
expenses:
4,84,340.
00
5,81,208.0
0 -96,868.00
INCOME DETAILS ACTUA
L
BUDGET
ED
OVER
BUDGET
UNDER
BUDGET NOTES
Sales
14,00,000
.00
16,80,000.
00 -2,80,000.00
Increase advertising
next year.
Commissions 10,000.00 12,000.00 -2,000.00
Rent 9,000.00 10,800.00 -1,800.00
Interest earned 5,000.00 6,000.00 -1,000.00
9

Other 5,000.00 6,000.00 -1,000.00
Royalties 2,500.00 3,000.00 -500.00
Fees 1,000.00 1,200.00 -200.00
Total income: 14,32,500
.00
17,19,000.
00 -2,86,500.00
EXPENSE
DETAILS
ACTUA
L
BUDGET
ED
OVER
BUDGET
UNDER
BUDGET NOTES
SELLING
Salaries and wages
2,46,000.
00
2,95,200.0
0 -49,200.00
Commissions
1,00,000.
00
1,20,000.0
0 -20,000.00
Advertising 60,000.00 72,000.00 -12,000.00 Increase Here 3%.
Travel
4,60,000.
00
5,52,000.0
0 -92,000.00
Other 10,000.00 12,000.00 -2,000.00
Delivery 0.00 0.00
Shipping 0.00 0.00
Total sales expenses: 8,76,000.
00
10,51,200.
00 -1,75,200.00
Percent of total: 92.39% 92.39%
ADMINISTRATIVE
Insurance 14,000.00 16,800.00 -2,800.00
Salaries and wages 12,000.00 14,400.00 -2,400.00
Loans 6,000.00 7,200.00 -1,200.00
Employee benefits 5,000.00 6,000.00 -1,000.00
Office supplies 4,000.00 4,800.00 -800.00
Payroll taxes 500.00 600.00 -100.00
Postage 300.00 360.00 -60.00
10

Travel &
entertainment 200.00 240.00 -40.00
Furnishings 0.00 0.00
Contributions 0.00 0.00
Dues 0.00 0.00
Other 0.00 0.00
Total admin.
expenses: 42,000.00 50,400.00 -8,400.00
Percent of total: 4.43% 4.43%
SERVICE &
EQUIPMENT
Utilities 15,000.00 18,000.00 -3,000.00
Legal 5,000.00 6,000.00 -1,000.00
Telephone 5,000.00 6,000.00 -1,000.00 Too high.
Equipment
purchases 3,400.00 4,080.00 -680.00
Accounting 1,200.00 1,440.00 -240.00
Rent & maintenance 560.00 672.00 -112.00
Other 0.00 0.00
Total S&E expenses: 30,160.00 36,192.00 -6,032.00
Percent of total: 0.03 0.03
Appraise the financial viability of the project
Based on above mentioned budget, financial viability of the project by means of ROI will
remain approximately to 33.810820244.
SECTION 5 – PROJECT STAKEHOLDER MANAGEMENT AND
COMMUNICATIONS PLAN
Identifying and assessing their roles, expectation and level of interest
Government: Role of a government in a company as a stakeholder is to prepare policies
regarding taxations, employment law and many more. Government agencies as a stakeholder
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expect that all the rules and regulations should be followed effectively along with this taxes and
duties should be paid on regular basis. If stakeholders have a high degree of interest then
business needs to communicate on daily basis with their stakeholders. Level of interest is
moderate in case of government (Qazi, 2016).
Customers: Consumer's buying power decides the overall production of the company,
which analyse the profit margin and sales of an organisation is the role of a customer as a
stakeholder. Customers as a stakeholder expects that company should do well at the competitive
marketplace so that they can earn enough profit which motivates them to invest more in near
future. Company can only ignore those stakeholders who has very little interest level. In case of
customer's as a stakeholder level of interest is moderate (Zou, Kiviniemi and Jones, 2017).
Prioritising your stakeholders using a Power/Interest Grid tool
On the basis of power and interest this model is classified into following categorise:
High power/ high interest: (Engage closely) Stakeholders of Morrisons are the decision
makers and have a huge impact on the overall success of the company.
High power/ low interest: (Keep satisfied) In this case, stakeholders of Morrisons kept
satisfied though they do not have any interest because they have power which they can use in
undesirable manner.
Low power/ high interest: (Keep informed) These stakeholders required adequate
information regarding any issues and changes arises in the company. Government is involved as
a stakeholder in this case.
Low power/ low interest: (Minimal efforts) Timely monitor these stakeholder in
Morrisons but do not over communicate anything. This may lead to boredom among them.
Assessing their likely responses.
Government of the country respondent in a positive way because this will help in job
creation, improve the economic growth as well employment rate. With the establishment of 20
stores Morrisons can earn more revenues. Along with this customer's responded in a positive
way because Morrisons help in easy availability of products and services, with cheap or low
prices as well as high quality products.
12

SECTION 6 - CLOSING THE PROJECT
Measures and mechanisms to ensure the project remains in agreed scope
Just after completing the project plan, it will be required for Morrisons to keep on making
alterations as per the requirements through adopting change management toolkit. On the other
hand, developing a risk management plan and register might also help Morrisons to keeping the
project aim and all the executions right on point (Turner, 2016).
Key deliverables of the handover phase
Key deliverables in present project, at the time of handover phase are going to
economical products that Morrisons is going to offer to its customers in all over United
Kingdom.
CONCLUSION
With the help of above mentioned report, it is being concluded that effective mechanisms
could help a project plan on agreeing on a specific scope. Along with this, risk registers toolkit
may aid a business company in managing the risks right on time. Lastly, organisation would
require to focus on project charter on a regular basis through which company can effectively gain
maximum benefits in specific time frame.
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SECTION 7 - REFERENCES
Books and Journals
Cleden, D., 2017. Managing project uncertainty. Routledge.
Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management.
Project Management Institute.
Hillson, D. and Murray-Webster, R., 2017.Understanding and managing risk attitude.
Routledge.
Hopkinson, M., 2017. The project risk maturity model: Measuring and improving risk
management capability. Routledge.
Hu, X. and et. al., 2016. Incorporation of activity sensitivity measures into buffer management to
manage project schedule risk. European Journal of Operational Research. 249(2).
pp.717-727.
Khameneh, A. H., Taheri, A. and Ershadi, M., 2016. Offering a framework for evaluating the
performance of project risk management system. Procedia-Social and Behavioral
Sciences. 226. pp.82-90.
Muriana, C. and Vizzini, G., 2017. Project risk management: A deterministic quantitative
technique for assessment and mitigation. International Journal of Project Management.
35(3). pp.320-340.
Olechowski, A. and et. al., 2016. The professionalization of risk management: What role can the
ISO 31000 risk management principles play?. International Journal of Project
Management. 34(8). pp.1568-1578.
Paquin, J. P., Gauthier, C. and Morin, P. P., 2016. The downside risk of project portfolios: The
impact of capital investment projects and the value of project efficiency and project risk
management programmes. International Journal of Project Management. 34(8).
pp.1460-1470.
Qazi, A. and et. al., 2016. Project Complexity and Risk Management (ProCRiM): Towards
modelling project complexity driven risk paths in construction projects. International
Journal of Project Management. 34(7). pp.1183-1198.
Turner, R., 2016. Gower handbook of project management. Routledge.
Zou, Y., Kiviniemi, A. and Jones, S. W., 2017. A review of risk management through BIM and
BIM-related technologies. Safety science. 97. pp.88-98.
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SECTION 8
Appendix
PROJECT CHARTER
Project Name 20 Brand new budget stores of Morrisons
Project Sponsor Anglia Farmers Project Manager Junior Consultant
Date of project
approval
20 March, 2019 Last revision date 25 March, 2019
Project Description Morrisons is going to open 20 brand new budget stores in United
Kingdom in order to gain competitive advantages.
Scope Accomplishment of project's aim will help Morrisons in coming on
third position from fourth of United Kingdom's largest supermarkets.
Business Case Reason behind developing the project plan is that, in last few years
Morrisons has faced a range of problems like reduction in both
productivity and profitability due to companies like ALDI and LIDL
came up with a range of strategies which influenced consumers from all
over the world. This affected consumer base of Morrisons.
Constraints
(in priority order)
Time 3 Months
Quality Fine quality of products (up to the mark).
Budget 17,19,000.00 Pounds
Scope In next five years, Morrisons will reach to the
position of third from fourth of United
Kingdom's largest supermarkets.
Project Deliverables Proper execution of project plan will offer customers of United
Kingdom with economic products.
Benefits KPI Goals
Sales (Units) To improve sales by 10% from £142m
Revenue To enhance revenue by 20% of £17.26B
15