Cunningham Golf Resort: Data Analysis and Decision Modelling Report

This report analyzes different models for a golf resort development project undertaken by Cunningham Holdings Limited. The objective is to construct an international standard 18-hole golf course with an exclusive clubhouse to maximize the enjoyment of the golfers within a budget of $20 million. T...Read More

Running head: DATA ANALYSIS AND DECISION MODELLING
Data analysis and Decision Modelling
Name of the Student:
Name of the University:
Authors Note:

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DATA ANALYSIS AND DECISION MODELLING
Executive summary:
Cunningham Holdings Limited has decided to construct a golf resort at Charter Towers with an
estimated budget of $20 million. The company has decided to construct an international standard
golf course of 18 holes. A detailed analysis below shows five different models of standard
clubhouse and exclusive clubhouse designs to suit the needs and objectives of Cunningham
Holdings Limited.

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DATA ANALYSIS AND DECISION MODELLING
Contents
Executive summary:........................................................................................................................1
Introduction:....................................................................................................................................3
Action plan:.....................................................................................................................................3
Discussion and analysis:..................................................................................................................4
Models:............................................................................................................................................6
Conclusion:....................................................................................................................................12
Recommendation:..........................................................................................................................13
References:....................................................................................................................................15

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DATA ANALYSIS AND DECISION MODELLING
Introduction:
The objective of the family business is to build and construct an international standard 18 holes
golf course with international facilities to maximize the enjoyment of the golfers. A detailed
discussion on the different models along with the resultant effects on enjoyment index of the
golfers shall be explained in brief here to provide a clear understanding of different models of
constructing golf course (Davidson Frame, 2014).
Action plan:
The golf course has certain parameters which must be followed to ensure it is up to the
international standard. Maintaining these parameters and completing the golf course within the
constraints of budget and other resources of the company. Use of different functions in
spreadsheet shall be made to ensure that the total par remains within 70 to 72 with exactly 18
holes in total. Apart from that ensuring that minimum number of 5 par, 4 par and 3 par are also
there without crossing the maximum limit for these pars.
Decision variables:
Decision variables include exclusive clubhouse and standard clubhouse. The one that will
provide maximum enjoyment to the golfers within the constraints of the company shall be
chosen over the other.
Objective function:
I. To maximize the enjoyment of the golfers
II. To complete the golf course within the budget

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DATA ANALYSIS AND DECISION MODELLING
III. In case additional amount is needed to complete the course then such amount can be allocated
provided the increase in enjoyment value is significant to justify the excess expenditure
Constraints:
I. Budgeted amount.
II. Land.
Four steps of actions plan are as Discussion and analysis of the requirements of golf course,
assessing the qualitative characteristics needed to be present in the golf course for it to be
international standard, assessing the financial feasibility of the golf course and determining the
enjoyment index under different models. Detailed discussion regarding this is explained below.
Discussion and analysis:
It is important to ensure that the golf course is of international standard to achieve the
organizational goals of spending such huge amount of fund on the construction of the golf
course. Thus, let’s discuss about the qualitative characteristics of the golf course which must be
present in the golf course.
Qualitative characteristics of the golf course:
The golf course must have 18 holes and of international standards with a standard clubhouse.
The gold course should at-least have one straight par 5, one dogleg par 5, two straight par 4, two
dogleg par 4, one long par 3 and one short par 3. The total number of holes in the golf course
must be exactly 18 neither more nor less. The total par must be between 70 and 72 in the golf
course. In addition the court should not have more than 4 par 5’s, 14 par 4’s, and 4 par 3’s. These
characteristics must be kept in mind while constructing an international standard golf course for
the company.

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DATA ANALYSIS AND DECISION MODELLING
Financial feasibility:
The financial feasibility is assessing the ability of a project to be completed within the financial
limitations of an organization. In this case the budget to construct the golf course is $20 million
and this is the constraint. However, additional funds can be allocated to the project provided it is
within the limits and bounds of the overall budget ("FINANCIAL FEASIBILITY,RISK AND
COST CONTIGENCY MODEL OF A SMALL HYDROELECTRIC PROJECT", 2017).
Enjoyment index:
While constructing the golf course the enjoyment index should be given due consideration as the
company is looking to provide maximum enjoyment to the golfers. As per the information the
enjoyment index is provided below.
Kind of golfing hold Par Size taken up by hole (in hectares) Enjoyment
index
Straight par 5 5 3 2
Dogleg par 5 5 3.5 1.5
Straight par 4 4 2 1.5
Dogleg par 4 4 2.5 2
Long per 3 3 1 1.75
Short par 3 3 0.75 2.25

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DATA ANALYSIS AND DECISION MODELLING
The exclusive clubhouse will have 4 index point and standard clubhouse will have 3 index point
in respect of enjoyment.
Taking into consideration the financial and qualitative characteristics of the golf course the five
different models are created below. It is important to note that each of the qualitative
characteristics must be present in the golf course. Thus, these requirements must be given due
importance even if that means in some case the budget is over stretched and the company needs
additional funds to construct the golf course (Lailatul & Melinda, 2018).
Models:
Standard clubhouse model:
In the standard clubhouse model the expected to have a standard clubhouse as opposed to
exclusive clubhouse as desired by the shareholders of the company. The following model has
been designed by keeping in mind all the requirements of the golf course including number of
holes and total pars, i.e. 18 holes and 70 to 72 pars respectively (Lee & Kang, 2016).
Standard Clubhouse model
Particulars Amount ($) Amount ($) Enjoyment
Estimated cost 3,500,000.00 3
Straight par 5 2 1,000,000.00 2,000,000.00 4
Dogleg par 5 2 1,500,000.00 3,000,000.00 3
Straight par 4 5 750,000.00 3,750,000.00 7.5

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DATA ANALYSIS AND DECISION MODELLING
Dogleg par 4 5 900,000.00 4,500,000.00 10
Long par 3 2 600,000.00 1,200,000.00 3.5
Short par 3 2 650,000.00 1,300,000.00 4.5
Total 18 5,400,000.00 19,250,000.00 35.5
Note: Here it has been assumed that the standard club house will have enjoyment value of 3.
As can be seen from the above model that the overall enjoyment index of the golf course is 35.5
and the golf course under this model will be completed within the budget of $20 million. In fact
the total estimated cost to complete an international standard golf course with all necessary
requirements is $19,250,000 (Leybourne, Warburton & Kanabar, 2014).
Exclusive clubhouse model:
The first exclusive model is developed below under which the exclusive clubhouse shall be
constructed in the golf course to provide further enjoyment to the golfers.
Exclusive clubhouse model
Particulars Amount ($) Amount ($) Enjoyment
Estimated cost (reduction by a 5%) 5,700,000.00 4
Straight par 5 1 1,000,000.00 1,000,000.00 2
Dogleg par 5 1 1,500,000.00 1,500,000.00 1.5

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DATA ANALYSIS AND DECISION MODELLING
Straight par 4 10 750,000.00 7,500,000.00 15
Dogleg par 4 2 900,000.00 1,800,000.00 4
Long par 3 2 600,000.00 1,200,000.00 3.5
Short par 3 2 650,000.00 1,300,000.00 4.5
Total 18 5,400,000.00 20,000,000.00 34.5
As can be seen in this case that the enjoyment index is 34.5 despite using entire budget amount
of $20 million. Thus, the company should not proceed with the basic model of exclusive
clubhouse. It is also important to note that the clubhouse size shall be reduced by 5% to keep the
total cost of completion of the golf course within or at $20 million (Ljungblom & Lennerfors,
2018).
Note:
In this case it has been assumed that the size of the club house will be reduced by 5% to keep the
total estimated cost of completion of the golf course within the budgeted $20 million.
Exclusive clubhouse model:
The exclusive clubhouse model in this case is twisted according to the needs of the company to
increase enjoyment index.

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DATA ANALYSIS AND DECISION MODELLING
Exclusive club house model
Particulars Amount ($) Amount ($) Enjoyment
Estimated cost 6,000,000.00 4
Straight par 5 1 1,000,000.00 1,000,000.00 2
Dogleg par 5 1 1,500,000.00 1,500,000.00 1.5
Straight par 4 10 750,000.00 7,500,000.00 15
Dogleg par 4 2 900,000.00 1,800,000.00 4
Long par 3 2 600,000.00 1,200,000.00 3.5
Short par 3 2 650,000.00 1,300,000.00 4.5
Total 18 5,400,000.00 20,300,000.00 34.5
Again in this case the company has gone overboard with its expenditure by making additional
allocation of $300,000 to complete the construction of the golf course. However, despite the
additional investment in developing the golf course the enjoyment index has stayed at 34.5, i.e.
as it was in the previous model (Mir & Pinnington, 2014). Hence, there is no question that this
model shall also be rejected by the company as this model is not justified from the financial and
qualitative perspective of the golf course.
Note:

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DATA ANALYSIS AND DECISION MODELLING
It has been assumed that additional allocation of $300,000 shall be made to complete the golf
course.
Exclusive clubhouse model:
As mentioned in the document that if needed necessary addition to the overall budget to a certain
limit can be done as well as little reduction in the size of the clubhouse shall also be made to
ensure that the golf course is completed as per the requirements of the company. The exclusive
clubhouse model has tried to achieve that objective by making necessary adjustments to golf
course and its components (Ponnappa, 2014).
Exclusive club house model
Particulars Amount ($) Amount ($) Enjoyment
Estimated cost 6,000,000.00 4
Straight par 5 1 1,000,000.00 1,000,000.00 2
Dogleg par 5 1 1,500,000.00 1,500,000.00 1.5
Straight par 4 6 750,000.00 4,500,000.00 9
Dogleg par 4 6 900,000.00 5,400,000.00 12
Long par 3 2 600,000.00 1,200,000.00 3.5
Short par 3 2 650,000.00 1,300,000.00 4.5
Total 18 5,400,000.00 20,900,000.00 36.5

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DATA ANALYSIS AND DECISION MODELLING
As can be seen that the enjoyment index has increased significantly under this model to 36.5, i.e.
by the far the highest out of all four models till now. It is important to note that in all the above
models including this one the qualitative characteristics of golf course as mentioned at the
beginning have followed to the core (Riccio, 2012).
Note:
It has been assumed that additional allocation of $900,000 shall be made to complete the golf
course.
Exclusive clubhouse model:
This is the last model to be considered by the company to verify whether it is possible to achieve
higher enjoyment index within the constraints presents in the construction of golf course.
Exclusive club house model
Particulars Amount
($)
Amount
($)
Enjoyment
Estimated cost (Reducing size) 6000000 4
Straight par 5 1 1000000 1000000 2
Dogleg par 5 1 1500000 1500000 1.5
Straight par 4 4 750000 3000000 6

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DATA ANALYSIS AND DECISION MODELLING
Dogleg par 4 8 900000 7200000 16
Long par 3 2 600000 1200000 3.5
Short par 3 2 650000 1300000 4.5
Total 18 5400000 2120000
0
37.5
It is clear from the above that out of the five models designed above the exclusive model at the
end is providing highest point in relation to the enjoyment index of the golf course. However, in
this case a significant amount of in excess of the current budget of $20 million shall be needed to
complete the construction of the golf course. In fact $1.2 million additional funds shall be needed
to construct the above golf course model. It is almost 6% more than the budgeted cost to
complete the construction of the golf course (Sachau, Simmering, Adler & Ryan, 2014).
It has been assumed that additional allocation of $1,200,000 shall be made to complete the golf
course.
Conclusion:
The objective of the company is to construct an international standard golf course with all
facilities including exclusive clubhouse to increase the enjoyment index of the golf course.
Generally a fluctuation in a budgeted cost within 10% of the actual budget is considered quite

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DATA ANALYSIS AND DECISION MODELLING
acceptable thus, the increase in cost to complete the construction of the golf course to the extent
of 6% from actual budget is quite acceptable provided the golf course is of highest quality.
Recommendation:
Thus, taking into consideration all the five models of gold course designed and discussed in this
document which are all of international standard it would be safe to recommend that the
company should follow the following parameters to construct the best possible golf course with
the existing constraints.
Exclusive club house model
Particulars Amount
($)
Amount
($)
Enjoyment
Estimated cost (Reducing size) 6000000 4
Straight par 5 1 1000000 1000000 2
Dogleg par 5 1 1500000 1500000 1.5
Straight par 4 4 750000 3000000 6
Dogleg par 4 8 900000 7200000 16
Long par 3 2 600000 1200000 3.5
Short par 3 2 650000 1300000 4.5
Total 18 5400000 2120000 37.5

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DATA ANALYSIS AND DECISION MODELLING
0
This is mainly because the company by spending only 6% more than the budgeted cost will be
able to achieve highest enjoyment index for the golfers. Hence, the above exclusive model shall
be used to design and construct the golf course by spending additional $1.2 million at a total cost
$21.2 million (Riccio, 2012).

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DATA ANALYSIS AND DECISION MODELLING
References:
Davidson Frame, J. (2014). Reconstructing Project Management. Project Management
Journal, 45(1), e2-e2. doi: 10.1002/pmj.21387
FINANCIAL FEASIBILITY,RISK AND COST CONTIGENCY MODEL OF A SMALL
HYDROELECTRIC PROJECT. (2017). International Journal Of Recent Trends In
Engineering And Research, 3(6), 21-27. doi: 10.23883/ijrter.2017.3266.92enx
Lailatul, A., & Melinda, T. (2018). Feasibility Study Of Religion Tourism Business For The
Young People. TRIKONOMIKA, 17(1), 20. doi: 10.23969/trikonomika.v17i1.637
Lee, Y., & Kang, S. (2016). The effects of the factors of the golf tourism marketing mix on golf
course image and golf tourist satisfaction : Golf tourists at the "L" golf course, Jeonnam
Prvince, as a case. International Journal Of Tourism And Hospitality Research, 30(9), 237.
doi: 10.21298/ijthr.2016.09.30.9.237
Leybourne, S., Warburton, R., & Kanabar, V. (2014). Is project management the new
management 2.0?. Organisational Project Management, 1(1), 16. doi:
10.5130/opm.v1i1.3959
Ljungblom, M., & Lennerfors, T. (2018). Virtues and Vices in Project Management
Ethics. Project Management Journal, 49(3), 5-16. doi: 10.1177/8756972818770586
Mir, F., & Pinnington, A. (2014). Exploring the value of project management: Linking Project
Management Performance and Project Success. International Journal Of Project
Management, 32(2), 202-217. doi: 10.1016/j.ijproman.2013.05.012

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DATA ANALYSIS AND DECISION MODELLING
Ponnappa, G. (2014). Project Stakeholder Management. Project Management Journal, 45(2), e3-
e3. doi: 10.1002/pmj.21400
Riccio, L. (2012). Analyzing the Pace of Play in Golf: The Golf Course as a
Factory. International Journal Of Golf Science, 1(2), 90-112. doi: 10.1123/ijgs.1.2.90
Sachau, D., Simmering, L., Adler, M., & Ryan, W. (2014). Sandbagging: Faking Incompetence
on the Golf Course. International Journal Of Golf Science, 3(1), 64-77. doi:
10.1123/ijgs.2013-0001