Project and Risk Management: Tesco Business Analysis

This project report delves into the critical aspects of project and risk management within a business context, specifically using Tesco as a case study. The report begins with an introduction to the business environment, differentiating between micro and macro factors and highlighting the significance of employee engagement. Task 1 outlines the aims and objectives of the project, emphasizing the understanding of business environments and the development of strategies for managing internal and external changes. The advantages and disadvantages of project plans and project scope are discussed, providing insights into their roles in project success. Task 2 provides a critical discussion and analysis of the business environment, the advantages and limitations of stakeholder analysis, and constraints analysis. Task 3 focuses on risk management. Task 4 covers cost-benefit analysis, budgeting, forecasting, and developing a project budget, including financial analysis. Task 5 elaborates on project planning and the importance of risk assessment. The final task, Task 6, emphasizes the importance of evaluating the project. The report concludes by summarizing key findings and referencing relevant literature. The report provides a thorough analysis of project management tools and techniques applicable to a real-world business scenario, offering valuable insights for managers and leaders aiming to navigate complex business environments.

Project and Risk Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Aims and objectives of the project..........................................................................................3
2. Discussing the advantages as well as disadvantages of Project Plan......................................5
3. Discussing the advantages and limitations of Project scope...................................................6
TASK 2............................................................................................................................................8
1. Critical discussion and Analysis of business environment.....................................................8
2. Advantages as well as limitation of Stakeholder analysis...................................................10
3. Limitation and advantages of Constraints analysis.............................................................11
TASK 3..........................................................................................................................................13
3. Risk management..................................................................................................................13
TASK 4 .........................................................................................................................................15
1. Cost benefit analysis.............................................................................................................15
2. Budgeting, forecasting and payback.....................................................................................15
3. Developing a budget for the project......................................................................................16
Financial analysis ..........................................................................................................................17
TASK 5..........................................................................................................................................17
1. Project plan............................................................................................................................17
Risk: It is required by manger in Tesco to conduct risk assessment procedure. As this will
help organization in analysing the appropriate tactics in order to minimise threat of negative
effect of changes in external as well as internal forces on business operations........................18
TASK 6..........................................................................................................................................22
1. Importance of Evaluating the project....................................................................................22
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23
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INTRODUCTION
Business environment is defined as condition prevailing inside or outside the company
which has direct effect on the way a business operates. It is also recognised as the set of external
and internal factors that have great and direct influence on business strategies, policies as well as
on decision. There are basically two types of business environment these are: micro and macro.
The macro environment includes political, technological, social, economic, legal and
environmental forces. These variables are uncontrollable. Micro environmental forces have
minimum influence or impact on several business activities or system. Study on employee or
workers engagement is essential. This is because it will help in identifying employee
involvement and satisfaction. .It also enables leaders or manager to recognise the new ways,
methods or techniques for motivating people for increasing their contribution in several business
operations and inspiring them to involve in decision making process. It will also aid firm in
reducing the adverse effect of several macro as well as micro environmental factors on business
operations.
Tesco enterprise is being selected for conducting research on analysing business
environment. Business Entity is dealing in retail industry. This Tesco company is being selected
for conducting this investigation as it is operating in international and highly competitive
environment and has much experience about operating in dynamic surroundings.
The report will include critical discussion on business environment. It will also
emphasise on developing understanding about the advantages as well as limitation of
Stakeholder Analysis.
TASK 1
1. Aims and objectives of the project
Business Environment is defined as aggregation or mixture of all internal as well as
external constituents that have great impact on the organisation growth as well as success. It also
has great effect on various activities such as operation, production, management functions etc.
Business environment have great influence on business decision, policies, system, consumer,
supply and demand of products as well as services (Yilmaz and Flouris, 2010).
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The purpose of the project is to gain or enhance the knowledge about business
environment. Other aims of the research is to assist individual working as manager or leader in
organisation to identify several forces in environment which have direct impact on business
operations, activities and system. It also intends to analyse the effect of changes in internal as
well as external factors on business performance. Another aim of the project is to support
manager or leader in Tesco Company in designing appropriate strategies, plans and policies in
order to deal with uncertain situations. The following are the objectives of research:
 To develop the understanding about the business environment.
 To analyse the new ways for dealing with the changes in internal as well as external
factors in business environment.
 To determine or recognise the merits and limitations of Stakeholder Analysis as well as
produce a Stakeholder Analysis.
 To identify the advantages as well as disadvantages of Constraints Analysis.
 To analyse the way changes in internal as well as external environmental force effects
business performance.
 To ascertain the effect of changes in internal as well as external factors on organisational
objectives.
 To provide training to workers in order to allow them to develop specialised skills or
capabilities in order to cope up with changes in business environment.
 To support firm in increasing sales by 5 percent and profitability by 4 percent in highly
competitive as well as dynamic business environment.
 To develop team of highly skilled and talented workforce within 2 months in order to
enable firm increasing its competitive strength.
The study on business environment will help manager in Tesco Company to assist firm in
maintaining business performance and position in critical as well as complex situations. It will
also aid manager in identifying the appropriate ways, techniques or methods for reducing the
adverse effect of several forces in dynamic environment on business. This assignment will assist
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organisation in exploring as well as capturing various business opportunities from the continuous
changing situations (Achtenhagen, Melin and Naldi, 2013).
2. Discussing the advantages as well as disadvantages of Project Plan.
The project management plan can be developed and used by manager or leader in Tesco
Company for formulating strategies, plan and policies for the future. By utilising this plan, the
business entity can easily identify the factors that may have adverse effect on business
performance and can develop effective tactics in order to deal with complex situations. It can
also be helpful for determining the uncertain situation, risk that may occur due to changes in
internal as well as external factors in business environment. Project plan is considered as official
document which contains the information which is the basis for the future plan related to
maintaining the standard of business.
Other advantages of project planning are that it assists manager in developing their focus
on the key elements of a task by forcing the group to sit down and plan out the project on paper.
Project plan also helps employees in identifying their roles as well as responsibilities with regard
to task or specific project.
The major advantage or benefit of project plan is that it provides guidelines plus
information about the individual tasks such as time duration as well as start and finish times. It
also aids organisation in preventing the overlapping of activities. Appropriate project
management plan helps manager in ensuring the effective as well as efficient utilisation of
resources. It also aids management in eliminating barriers that may occur in implementation of
task or projects for achieving project objectives. Project management plan supports manager in
identifying the important stakeholders those who will assist firm in reducing the negative effect
of changes in environmental forces on business (Crawford and Nahmias, 2010).
The Gantt charts offer a simple and easy way to input all the tasks at the beginning of a
project. It demonstrates the length of each task and series of the activities that will occur during
the project.
Work break down structure in the project plan is essential as it helps manager in
organising team and activities during the project. It is defined as deliverable oriented hierarchical
decomposition of the task or activities which are to be carried out by the project team. Work
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break down structure is also recognised as an effective tool that can be adopted or utilised for
defining as well as grouping of project. It can be used for defining the scope of project. This
framework assists manager in recognising and eliminating the complicated operations. It helps
manager in making the task easier (Wirtz, Schilke and Ullrich, 2010).
Limitation of project planning
Limitation is defined as restriction imposed by the application of mostly traditional
Project Management.
The major drawback of project planning is that, it is very time as well as cost consuming
process. Miscommunication and ineffective coordination among people may have adverse effect
on outcome. Strict project management plan can lead to discouragement of innovative thinking
and result into barriers in creative efforts. Due to strict project management plan, manager in
Tesco may face difficulty in aligning the purpose of the project with the business/organisational
strategy. It may be challenging for manager or leader in Tesco organisation to manage projects
with unspecified budget or schedule. (Eckerson, 2010).
3. Discussing the advantages and limitations of Project scope
Project scope management is defined as the procedure which includes identification of
input, output and benefits of implementing the project. It also helps Tesco manager in controlling
the operations and eliminating unnecessary activities. Scope consists of totality of the outputs,
outcomes, benefits and the work required producing them. It assists manager in encouraging
people to participate in procedure and support firm in achieving desired outcome. The objectives
of scope management is to support manager in ensuring the project success. It includes all the
resources as well as activities to be implemented required for completing the project
successfully. It is mainly concerned with recognising as well as controlling the things, activities
or operations that are to be included in projects for accomplishing specific goals or objectives.
Project scope assists manager or leader in determining as well as documenting a list of specific
project target, deliveries, functions, activities, deadlines and ultimately costs. It also includes
gathering or accumulating information that is required for starting the project. This scope also
help organisation in analysing that whether the project which is to be implemented has the
potential to cater the needs as well as demands of internal and external stakeholders. Project
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scopes provide the criteria that can be adopted by manager in TESCO for measuring the success
of the project. (Smith, Binns and Tushman, 2010). Project scope provides several guidelines
which support manager or leader in making suitable as well as appropriate decision. It aids
project management team in managing changes as well as risk which can create major barriers in
accomplishing set targets. Project scope articulates what the project entails so that all
stakeholders can understand what's involved. It renders guidelines that can be utilised by leaders
or managers for assigning or delegating tasks, roles, as well as responsibilities. Project scope also
helps project manager in scheduling of work and preparing appropriate budget. It also helps
manager in formulation of effective strategies for completion of project in systematic as well as
effective manner. It allows employees in project to emphasise and contribute in accomplishment
of common goals. Project scope prevents projects, particularly complex ones, from expanding
beyond the accepted visual sense. Project scope provided the basis for managing projects. It also
aids business entity in preventing the misuse and wastage of business resources. Project scope
supports Tesco company is producing the outcome or deliverables which firm want on time and
according to budget. It also helps manager in identifying the appropriate ways or methods for
improving project performance. It also helps project management team in saving the time for
reviewing the project and maintaining the quality of work (Gharajedaghi, 2011).
The drawback or limitation of the project scope is that if it is not realistic that this factor
may have negative effect on the overall performance of the project. In such situation, the there is
high chances of resources wastage which may have further influence on other activities or
business operations. Another disadvantage of project scope is that it is prepared on the basis of
various assumptions. It has been analysed that there are certain problems and disadvantages that
could affect project scope. This factor gives power and ideas to stakeholders through which they
can easily effect or influence several activities or operation during the project. Ineffective project
scope may lead to failure in creation of new product and further result into wasting the time of
employees and the resources of the organisation. The execution of project requires specialised
knowledge or project management skills which may has great impact on performance and
outcome. Project manager cannot rely on change management procedure until unless they are
aware about the alternations in projects. Time, cost and other resources limitations might be
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important threats to company project scope. If in case of strict budget, it may have adverse effect
on the quality of work as well as outcome (Giesen, Riddleberger and Bell, 2010)
TASK 2
1. Critical discussion and Analysis of business environment
TESCO company is considered as a leading grocery as well as foods retailer. Political
and legal factors has the major influence on the organisation decision related to introducing of
new goods and marketing of products or services. The purpose of discussion is to analyse the
micro as well as macro environmental factors on business operations. It also emphasizes on
identifying the competitive strength of company. Swot analysis , PESTLE and other effective
tools can be used for examining the competitiveness of the firm. TEsco company is recognised
as the big food retailer worldwide. Organisation has approximately 469000 employees those who
has supported an enterprise in expansion of core business activities. Tesco operates in highly
competitive , vibrant and dynamic business environment. These factors have direct and great
influence on business performance and other activities. The Tesco has to achieve success,
maintain its business performance and foster growth in continuous changing environment.
Internal and external forces in business environment are interrelated. Vision of Tesco is to gain
leadership in market and to expand its branches or outlets at other places. It has been identified
from the research that manager decision in Tesco company has majorly influenced by political
and legal factors. Due to changes in laws and regulation related to the human resource
management, cited venture has to face some legal obligation which has majorly affected the
reputation of firm. Tesco is operating business in China as well which is recognised and
considered to be as world profitable market. Organisation strategy to conduct joint venture with
other global companies has supported Tesco to expand its business and gain competitive
advantage in international business environment. It has also provided organisation an opportunity
to increase its sales and profitability. Tesco strategy to operate in Eu has Provided company an
opportunity to enter into new market and allowed cited venture to increase its market share
(Özerdem and Bowd, 2016)
Economic factors has great impact on financial performance and stability of organisation.
But these forces can have positive effect as well. It also has influence on buying behaviour of
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company which further had adverse impact on the quality of goods or services delivered by an
enterprise to its customers. Economic variables are those forces which has direct influence on
spending power of consumer. As per Marlow hire-achy need theory demand of consumer would
be according to the priorities of their requirement. According to this theory consumers are not or
prefer less to divert their spending on more of premium or high value goods. This factor has
direct effect on sales as well as profit margins. But still Tesco can get several advantages due to
its low price strategy. As this plan will help organisation in attracting more numbers of
customers.
Social factors have great influence on production activity of business. Due to changes in
Social variables Tesco company is facing difficulty in maintaining the ratio or balance between
demand and supply of goods or services. Business entity still have to coinsider the ineffective
and expensive small deliveries. It is required by manager in Tesco to formulate policies, plans
and strategies by considering the need as well as demand for consumer. As this strategy will
support an enterprise in developing and maintaining healthy relation with client. It will also
assist firm in influencing consumer to buy particular brand product and encourage them to make
frequent purchases. Delivering standard or high quality products will support organisation in
retaining customer for long term and attracting more number of consumers.
Technological variables are those which assist company in achieving success. TESCO in
order to accomplish success need to maintain effect supply chain. These are the forces which will
help firm in increasing uniqueness and rising competitive strength. It has been identified from
the report that Mobile and internet shopping has proven have great influence on consumers in
retail industry. Technological forces has allowed Tesco to develop innovative product and make
quick deliveries of goods to client. This factor has enabled business entity to achieve its
objective of customer satisfaction.
Environmental safety and climate change has always been important agenda for Tesco
plc. It is required by organisation to make improvement in operational as well as production
system. As this will help cited venture in maintaining the quality of goods and reducing the
wastage. It will also aid organisation in elimination of legal obligations.
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Legal factors has major as well as direct influence on sustainability of organisation.
Amendments or modification in income tax or sales tax charged to customer will bring in change
in buying behaviour of consumers in retail industry. Certain laws such as Wage act has forced
Tesco to increase its budget.
Internal factors
Structure:Tesco organisation has decentralised structure in which Parent company is
accountable for holding as well as for management of subsidiaries firm. Director or Manager in
Tesco has established certain guidelines which is required to be considered and followed by
employees working as manager at regional level when making business decisions.
Strategy:Plans, policies and strategies developed by manager in Tesco has supported company
in widening the scope of business. It has allowed business entity to achieve success as well as
foster growth.
System:There are several system implemented in Tesco company. Organisation has adopted It
infrastructure system for managing the flow of information and maintaining confidentiality Of
data. Differentiated human resources policies, practices and systems has been implemented by
cited venture for evaluating and managing employees or workers performance at workplace.
Employees:It is difficult to make argument on the fact that essential reason Tesco has able to
achieve success in the competitive as well as dynamic business environment is due to the success
of people management in an enterprise. Manager in Tesco have focus on practising strategic
human resource management in order to motivate and engage employees in successful
implementation of business strategies, vision and mission. It is required by human resource
manager to hire and employ highly talented and skilled employees (Baskerville and Wood-
Harper, 2016)
2. Advantages as well as limitation of Stakeholder analysis
Stakeholders are recognised as a person or group of people those who have direct and
indirect position in an enterprise. Internal stakeholders are the people those who have direct as
well as major influence on business policies decision , plan and strategies. External stakeholders
include investors, government , customers etc. These are important people who allowed firm to
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generate revenue and increase sales. Some internal stakeholders are employees, director,
suppliers, creditors etc. They support organisation in arranging resources that are essential for
conducting several business operations.
Some of important stakeholders are:
Customers or client-They are important as Customer purchase products and enable firm to
generate revenue.
Workers or Employees – Those who execute various activities in an enterprise and support
organisation in expansion of business.
Suppliers- These people provide or delivers raw material that are required for producing finished
goods. Suppliers allow organisation to deliver good quality of products top client.
Few advantages of Stakeholder analysis
The major as well as significant benefit of stakeholder analysis is that it is the effective
tool that can be used for identifying the important people those who have high power to
influence business decision, plans or policies. It also supports manager in recognising those
stakeholders those who can assist or create barriers in achieving success by organisation.
Stakeholder analysis is a tool that help business entity in increasing or enhancing effectiveness. It
is also recognised as a procedure of the assessing decision's which have impact on relevant
parties. This tool support manager in analysing or recognising the interest as well as objective of
stakeholder behind participating in specific project. It also provides company an opportunity to
provide satisfaction to employees and encouraging workers to improve their performance at
workplace. Stakeholder analysis also support as well as assist manager in identifying the several
risks.
Limitation of Stakeholder analysis
Limitation of stakeholder analyse is that it proves effective as well as useful when
executed on continuous basis. The outcome generated by this analysis can be subjective. The
company can face challenges or difficulty in fulfilling the needs and demands of all stakeholders.
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Stakeholder can have an unconditional interest in an organization's success or failure and
administration department in organisation cannot simultaneously fulfil these opposing interests
(Rose,2016)
3. Limitation and advantages of Constraints analysis
The benefit of conducting internal analysis is that it helps manager in recognising the
internal strength as well as weakness of organisation. Swot analysis is technique that assist firm
in identifying as well as capturing several business opportunities. It also aids manager in
analysing or determining appropriate methods or ways for overcoming as well as reducing
weakness. Swot analysis is an effective tool that aids business entity in recognizing the barriers
that may arise in achieving success and accomplishing business objectives. PESTLE analysis is
another effective tool that can be adopted by manager in Tesco for developing the understanding
about several external forces that have direct impact on business operations. Constraints analysis
support manager in formulation of suitable strategies, plans or policies for business. It
emphasizes on internal as well as external variables that renders specific benefits or lead to
disadvantage to organisation.
Limitation
The limitation of constraint analysis is that it does not deliver or provides appropriate
solution for the various business problem. The Tools used for conducting constraint analysis
does not help manager in prioritising issues (Leavy, 2016)
Conducting constraint analysis for Tesco
PESTLE analysis
Political factors-These variables includes government norms, regulation and policies related to
supply and marketing of products or services. Political forces have direct effect on several
business aspects such as the quality of the infrastructure, business plan, system , operation.,
education of employees etc. It also has major impact on delivery or supply of goods and services
to customer.
Economic factors-These forces involve interests rate, inflation, taxation changes, amendment in
exchange rate, economic growth of the country. Economic variables have direct effect on the
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