Business Administration Project: Cost Benefit Analysis

This report provides a comprehensive analysis of project management and business administration principles, using Aldi as a case study. It explores the application of cost benefit analysis for project evaluation, detailing its importance in assessing project value and justifying investments. The report also evaluates various risk analysis techniques, such as brainstorming and sensitivity analysis, crucial for mitigating potential project failures. Furthermore, it examines project planning and management tools like Gantt charts and logic networks, emphasizing their role in achieving project objectives. The impact of changes to project scope, schedule, finance, risk, quality, and resources is assessed, alongside the requirements of project governance arrangements. The report also delves into how a project aligns with an organization's vision, objectives, and plans, with a focus on stakeholder management and the development of project plans with measurable objectives and key performance indicators. It covers resource allocation, communication, and the application of project life cycle approaches, alongside risk management and contingency planning, and concludes by discussing the importance of periodic reviews and knowledge management in project effectiveness.

BUSINESS
ADMINISTRATION
58

Table of Contents
INTRODUCTION...........................................................................................................................4
1.1 Explain how to carry out cost benefit analysis for a project............................................4
1.2 Evaluate the use of risk analysis techniques.....................................................................4
1.3 Evaluate project planning and management tools and techniques...................................5
1.4 Evaluate the impact of changes to project scope, schedule, finance, risk, quality and
resources.................................................................................................................................5
1.5 Analyse the requirements of project governance arrangements.......................................6
2.1 Analyse how a project fits with an organisation's overall vision, objectives, plans and
programmes of work...............................................................................................................6
2.2 Agree the objectives and scope of proposed projects with stakeholders..........................7
2.3 Assess the interdependencies and potential risks within a project...................................7
2.4 Develop a project plan with specific, measurable,time bound objectives, key performance
indicators and evaluations mechanisms appropriate to the plan............................................7
2.5 Develop proportionate and targeted plans to manage identified risks and contingencies8
2.6 Apply project life cycle approaches to the progress of a project.....................................8
3.1 Allocate resources in accordance with project plan.........................................................9
3.2 Project team members and their roles and responsibilities..............................................9
3.3 Implement plans with agreed budgets and timescales......................................................9
3.4 communicate the requirements of the plans to those who will be affected....................10
3.5 Revise plans in light of changing circumstances in accordance with project objectives and
identified risks......................................................................................................................10
3.6 Keep stakeholders up to date with developments and problems....................................10
3.7 Complete close out actions in accordance with project plans........................................11
3.8 Adhere to organisational policies and procedures, legal and ethical requirements when
managing a project...............................................................................................................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
.......................................................................................................................................................14

INTRODUCTION
Business administration is a management term in that includes various types of
management positions. For every corporation to sole businesses for operations there is need to
skilled and talented administrators to get success. In business administration includes accounting,
finance and marketing related activities which are crucial for organisation. This report is based
on Aldi which is discount based supermarket chain of over 10,000 stores in 20 countries
approximately. That report explains about role of cost benefit analysis and its implication in
project. It also explains risk analysis techniques which helps to eradicate maximum risk from
business. It elaborates project planning and management tools and techniques which helps to
plan about businesses. It evaluating effect of changes to scope of project, its schedule and risk
and quality resources in project and many more things which that report explains.
1.1 Explain how to carry out cost benefit analysis for a project.
Cost benefit analysis is a technique that use for to compare and evaluate the project cost
while produce or incorporate it. Project managers avail cost-benefit analysis in the beginning of
the project to evaluate the value of project. Approval of project should be receive after evaluate
the cost benefit analysis to spend money on that project. It helps to evaluate value deliver by
project against the cost to business. Sometimes in special circumstances managers decide to go
ahead in project that occurs more cost in comparison to value that it deliver. For testing
justification of cost benefit analysis proper data and research should be conducted to measure
value and cost of project in Aldi. For implications of cost benefit analysis it is necessary to
evaluate for how many years means how far in future organisation plan and take benefits from it.
And assumptions of cost benefit analysis (Ackermann, 2012). So cost and deliver value are most
important attributes that helps in its implication.
1.2 Evaluate the use of risk analysis techniques
Risk is inherent with every activity in fact human daily life is surrounded with risk. In
business there are many types of risk associated and many measures also available with them. So
it gives the solution of question that project fail to operate in expected during its operational
cycle of life (Allais and Hagen, 2013). In that case business have to measure different types of
risks with associated with project. Techniques of measuring risk are brainstorming, sensitive
analysis, probability analysis, Delphi method etc. which give direction related to risk reduction.

Risk is inherent in fail of project, manpower harm, machinery and techniques degradation and
many more. So these techniques helps to evaluate about risk factor and help to fit mentally to
prepare for them after minimisation of risk factor in Aldi.
1.3 Evaluate project planning and management tools and techniques
Project management is a application that collect tools and techniques by using diverse
material and resources to attain new,one time task by save time, cost and resources to get results
with effectiveness. There are many tools and techniques that helps in attaining objectives. In
tools include Gantt chart, logic network, PERT and CPM etc.
Gantt chart:
Gantt chart is a well known project management bar chart that use for evaluating and
showing phases, works and tasks, foundations with resources that are essential to accomplish
results for a project (Bounfour, Edvinsson, 2012)
Logic network:
It shows sequence of work and activities in a project. It indicates which activities is
follow other means it shows dependencies of one activity on another. It indicates on foundations
and critical path of evaluation. It shows dependencies on timescales, workflow etc. on other
activities.
1.4 Evaluate the impact of changes to project scope, schedule, finance, risk, quality and
resources
Project change management is not to restrict changes. In project management all changes
to scope, budget,schedule, quality and risk that associated with project.
Scope of project:
Scope of project is a pyramid model in which power and responsibilities should be
distributed from top to bottom level (Cooke and Alcadipani, 2015) In which power and
responsibilities should be pass from top level. So change in scope affects whole system of
organisation and it impacts badly on Aldi.
Schedule:
Every task should be completed in proper time. So same happen with the project in
organisation for a particular project specific time should be assign. If the project is not finish in
proper time then it impacts to employees and cost of organisation in negative manner.

Finance:
finance is major part of any project that in which ratio the project take cost and value it
gives to organisation. So in some circumstances when project take times then it also impacts on
profitability of organisation also.
Risk:
If changes occurs in organisation then it impacts to whole organisation in which risk
associated with project should increase and it impacts a lot to business and its activities.
Quality and resources:
Organisation many times adopt changes which directly and indirectly affects whole
business (Escobar-Rodriguez and Monge-Lozano, 2012). If changes occurs in quality then it
dissatisfied the consumers and if changes occurs in resources like in machinery, techniques then
it increase cost, time and operation cycle of project.
1.5 Analyse the requirements of project governance arrangements
Project governance is management tool which work to take decisions related to project
and management. Project governance is critical element while distribution of accountabilities and
responsibilities related to the governance arrangements and development in capital investments.
The necessity of project governance is rises day by day because it contributes in decision making
of project (Eichfelder and Schorn, 2012).It helps in taking robust decisions it provides structure
to conduct project works. It controls on methods and life cycle of project. It helps in building
overall business strategy with the project portfolio in project.
2.1 Analyse how a project fits with an organisation's overall vision, objectives, plans and
programmes of work
A project is part of organisation and it works to fulfil objectives, vision, missions and
plans of organisation to achieve overall goals and objectives. Project have similar objectives and
goals that also have part of organisation goals. On other hand the employees and project team
also the same in project team. So they work aligning to accomplish goals and objectives in Aldi.
In case of Aldi it launches a series of product which is based on healthy food so the overall
objective of organisation can be accomplished. Hence project is also part of organisation which
helps in gaining objectives of Aldi.

2.2 Agree the objectives and scope of proposed projects with stakeholders
In that scenario Aldi aimed to expand its market share by launching a new product which
is healthy food. In that the contribution of stakeholders increase and their roles and
responsibilities also enhance (Grusec,and Hastings, 2014). In that objectives and goals of
organisation should be clear before the stakeholders so that they can clear about their objectives
and their tasks and duties. On other hand strategies should be align with business objectives of
project in Aldi. Goals and missions should be clear and appropriate so that they align with
project and business also.
2.3 Assess the interdependencies and potential risks within a project
Project is part of business and every activity is associated and link with each other. Every
department in organisation are rely on each other to accomplish others. Similar happen with
project goals and objectives in Aldi. Project and business surround with many risks such risk of
failure, machinery and technology risk and manpower risk that are potential risks that exist in
business. Also in project all department and works that rely on each other to accomplish needs
and wants of project. To eliminate risk that associated with project it is very obligatory to proper
strategy and planning in Aldi. On other hand the proper understanding should be necessary
among members of project so that effective results should be achieve.
2.4 Develop a project plan with specific, measurable,time bound objectives, key performance
indicators and evaluations mechanisms appropriate to the plan
Project plan should be specifically formulated so that it can be clear to all and employees
can give their best to their organisation to accomplish their goals and objectives
(Hakansson,2015 ). In that scenario Aldi aimed to launch a healthy food product in its food series
to expand its market share and complete its food chain so that it satisfy its consumers.
Objectives:
Aldi Plan to launch a new product that is healthy food and its objective is To deliver
healthy food to consumers and market of both existing and new market to expand its share in
forthcoming years.
Indicators and mechanisms:
Investment mechanisms:
In investment mechanism includes that money should be invest in proper and suitable
place so that it helps in enhance revenue and growth of organisation.

Mechanisms to dietary:
In that includes the new product and services which launch by the Aldi should be
properly fit to health of people and not harmful for them. So proper rules and regulations
according to them.
2.5 Develop proportionate and targeted plans to manage identified risks and contingencies
Contingency planning and risk work with simultaneously and it is not possible to avoid
risk factor that align with project. These two terms that are contingency planning and risk
management are use in project management. Contingency planning works when risks occur in
business although when launching a new project. But in best possible manner an organisation
can eliminate maximum level of risk (Hesselbarth and Schaltegger, 2014).
Prevention: That is give best to avoid risk factor to eliminate threat or problem from Aldi while
launching a new product chain.
Reduction: find strategies and ways to avoid maximum level of risk.
Transference: Ways to transfer risk associated with product to third party.
2.6 Apply project life cycle approaches to the progress of a project
Project life cycle refers to the managing project and new work initiatives in a business.
Managers have to select best process to run project and reach at best phrase(Houston, Jiang and
Ma, 2014). Project life cycle is a criteria that gives objectives and goals to managers to achieve
their goals and objectives. Project life cycle consists four step process in which includes.
Conceptualization phase:
In conceptualization(Initiation stage) the idea should commercialised in that phase. In
that phrase strategic need to initiate in market should be understand by the higher authority of
Aldi.
The planning phase:
In that phase management gives permission to launch the project and set the goals,
objectives so that work should be start.
Execution phase:
In that phase actual work of project is performed and all resources, materials, tools and
machineries should be arrange to reach goals and objectives.
Termination Phrase:
In that phrase project close. In that phase firm plans to initiate some new projects.

3.1 Allocate resources in accordance with project plan
Resource allocation in project management is refers to frame a plan which helps in
accomplish future goals and objectives. There are many resources that helps while allocate them
properly such budget to machineries and tools and data etc.
To allocate resources first of all know the scope of business, its capabilities(financial,
managerial) etc. secondly know which types of machineries, tools and equipments are require for
best result in Aldi to produce healthy food. After that set the time of every activities so that
desirable results should be achieved (Iansiti and Lakhani,2014). After that track and measure all
details and note each and every aspect of food processing. Then don't over burden the work over
employees.
3.2 Project team members and their roles and responsibilities
There are different people and team associated with them that divides their roles and
responsibilities in any project. In Aldi the roles and responsibilities of project team are as
follows:
Team members are selected because they have different skills that are necessary to accomplish
their goals and objectives. The role of team members is to accomplish tasks which distributed to
them. Then understand purpose of project, keep balance between project and non project works.
Then understand constraints in timescales, reporting to their high authorities, identify issues and
concerns while operations, evaluate risk associated with project and work as a team and good
communication with team members (Mulder,2012 ).
3.3 Implement plans with agreed budgets and timescales
It is very necessary to complete every task in organisation in definite time period so that
it not create loop falls in actual plans and their results. To initiate a new project it is very
necessary to allocate budget and timescale to get better results.
Market research:
for market research Aldi find out the consumer tastes and preferences so that they can
launch the best product for them. It requires 2 months to research about product.
Allocation of resources:
In allocation of resources after finding viability of project it is very necessary to proper
allocation of resources in which 6 months are require.
Evaluation and control:

After launching a product at small level it is very necessary to evaluate results for 2
months.
3.4 communicate the requirements of the plans to those who will be affected
While implement a new plan there is need to point out two people who devotes most part
in planning of project and its attributes in planning process. Firstly the employees for that
organisation have to work on them so that they can give their best while launch a new product
and services to give them training and extra remuneration so that they feel motivated and become
active in their work. On other hand for customers organisation have to devote their products that
satisfy their needs and wants in proper manner (Papadopoulos and Heslop,2014). So well
distribution of power and responsibilities should be very necessary to accomplish goals and
objectives.
3.5 Revise plans in light of changing circumstances in accordance with project objectives and
identified risks
In organisation when conditions and circumstance change then it affects to whole of
organisation. It hinders self interest of organisation and diverts from its sole purpose is profit
maximization. In organisation when producing food according to needs of consumers and they
not properly satisfy from that then organisation have to frequently reform in the plan and
resources that hinders its objectives and its cost also. In that case organisation have to evaluate
again requirements of consumes and try to find out loop falls in production process and which
type of potential changes it can adopt to fully satisfy its consumers and give their best.
3.6 Keep stakeholders up to date with developments and problems
In that scenario while an organisation' adopt changes and launch a new product and
service there is very necessary to give proper information to their stakeholders. In stakeholders
includes customers,employees, distributors, investors etc. stakeholders should be totally updated
about changes, inventions and new product launches so that they prepare for that changes (Pratt
and Gibbons,2012). While deal in new product launch in Aldi stakeholders have to be knowledge
about process, objectives,goals and future and current trends and potential buyers and strategies
of organisation so that they can prepare mentally to themselves and ready to adopt these
changes. That step proves beneficial for organisation as well as employees that create trust in
them.

3.7 Complete close out actions in accordance with project plans
Close out actions different from organisation to organisation. Some organisation follow
the whole chain of initiation to completion phase. On other hand some organisations skip some
steps and follow only few of them because it is not requirement for that organisation to follow
whole chain of production process. But in case of Aldi while launching a new product that is
healthy food in chain of food services. They have to follow whole cycle of production of goods
and services to accomplish its goals and objectives (Roth, 2012).
3.8 Adhere to organisational policies and procedures, legal and ethical requirements when
managing a project
Policies: policies refers to the rules and regulations to perform the tasks and
responsibilities in effective manner. The policies of organisation rely on organisation nature and
types of employees.
Procedures: In procedures include the sequential steps that are necessary to complete a task at
well manner and accomplish objectives and goals. Procedures are also depend on product type.
Legal structure: In legal structure includes the laws and regulations in which organisation
operates in environment. The government plays a crucial role to formulate business proceedings.
Ethical requirements: In ethical requirements consist of protect the environment while
launching a new product and services that increase customers trust towards organisation
(Tannenbaum, Weschler and Massarik,2013).
4.1 Conduct periodic reviews of the progress and effectiveness of a project using information
from a range of sources
To evaluate the success factor after launching a new product into market there are two
important measures that identifies the reviews:
Market research: with help of market research an organisation can evaluate the progress of their
new product in existing and new market and evaluate the current and future needs.
Customer feedback: with help of customer feedback an organisation can evaluate the progress of
product and services in market in Aldi. There are different methods to evaluate the different
methods to know reviews of customers.

4.2 Evaluate the effectiveness of capturing and managing project related knowledge
By evaluating and capturing project related knowledge help to know about future
opportunities and loop falls that exist in that product and services and it also gives path to solve
these problems. With help of project related knowledge an organisation can also know how to
best implement plan and allocate resources to get best results(Tothand, Vigo, 2014).
4.3 Report on the effectiveness of plans
Effectiveness is very necessary in every work. While launching a new project into the
market there is need to evaluate that every work should give best results according to their
standards so that they can easily be measured in Aldi. While launching a new product planning,
launching and resource allocation should be done with effectiveness.
Conclusion
From the above report it has been concluded that business administration is important part of
management and organisation to achieve their objectives and goals. This report elaborates about
new product of Aldi and requirements while introduce a product into market. And it also
explains the role of cycle of launching a new product into market and many factors that affects it
such as stakeholders contribution in successful implication of the project.

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