Project Management: CRM System Implementation for Friendly Grocer

This project focuses on the implementation of a CRM system for the "Friendly Grocer" supermarket chain in Australia. The project addresses the supermarket's current reliance on a paper-based feedback system, which leads to customer dissatisfaction and competitive disadvantages. The measurable objectives include implementing a CRM system, improving customer relationships, and increasing sales and revenue. The project outlines critical assumptions and constraints, including a 76-day timeframe and a budget of AUD 48,120. It analyzes options, recommending CRM implementation over hiring more staff. The project details preliminary requirements, budget estimates, and financial analysis, demonstrating the project's feasibility with an ROI of 0.8944. A schedule estimation of 76 days is provided using a Gantt chart, and potential risks such as schedule slippage, lack of experienced workers, budget shortfalls, and technical issues are identified. The project concludes with a comprehensive reference list.

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
1. Project background......................................................................................................................2
2. Measurable objectives.................................................................................................................2
3. Current situation..........................................................................................................................2
4. Problem/opportunity statement....................................................................................................3
5. Critical assumptions and constraints...........................................................................................3
5.1 Assumptions..........................................................................................................................3
5.2 Constraints.............................................................................................................................4
6. Analysis of options and recommendations..................................................................................4
7. Preliminary project requirement..................................................................................................5
8. Budget estimate...........................................................................................................................5
9. Financial analysis.........................................................................................................................7
10. Schedule estimation...................................................................................................................9
11. Potential risks...........................................................................................................................10
References......................................................................................................................................12

2
PROJECT MANAGEMENT
1. Project background
The paper mainly reflects on the development of a CRM system named “Friendly
Grocer” which is a small supermarket chain that operates in Australia. It is found that the
supermarket does not have a CRM system and therefore the supermarket utilizes paper-based
feedback procedure for resolving the issues of the customers and the entire procedure is found to
be lengthy and time consuming. As a result, the supermarket is losing customers and further
facing issues in competing with other small organizations. For successfully resolving the issues,
the organization generally wants to implement a customer relationship management system that
helps in managing the data of the customers. The CRM system is considered to be beneficial in
properly supporting the entire sales management and assists in delivering different types of
actionable insights for providing proper customer service which can further enhances the sales of
the organization.
2. Measurable objectives
The measurable objectives of “Friendly Grocer” organization are mainly listed below:
 To implement a CRM system for Friendly Grocer supermarket
 To build a better relationship with the client
 To increase the sales as well as yearly revenue of the organization
3. Current situation
Presently, the supermarket uses paper-based feedback procedure for collecting
complaints and suggestions from the customers in order to support the customers and for
improving their service. However, utilization of paper-based feedback procedure is found to be

3
PROJECT MANAGEMENT
quite time consuming and thus the supermarket is not able to reach the customers on time. As a
result, the customers are moving to some other organizations where they are getting better
service. Thus, for successfully resolving the challenges, it is necessary to implement a CRM
system which would be helpful in building strong relationship with the customers and there will
be increment in the sales and yearly revenue of the organization.
4. Problem/opportunity statement
The supermarket “Friendly Grocer” is one of the small operating chain supermarkets in
Australia. The supermarket uses paper-based procedure for feedback and complaints which is
found to be very much time-consuming and hindrance for serving the customers properly.
Furthermore, it is considered as one of the major issue due to which the supermarket is unable to
compete with other small organizations and therefore the sales of the organization got reduced.
In order to resolve the issue, the organization decided to implement a CRM system.
5. Critical assumptions and constraints
5.1 Assumptions
It is found that while implementing the CRM system, the project manager mainly
assumes the following:
 The project manager assumed that the CRM implementation will generally get completed
within the timeframe of 76 days
 It is also assumed that the staffs of the organization will help the higher authority in
updating the IT system of the organization by implementing a CRM system
 The project manager makes an assumption as per which it is analyzed that due to proper
utilization of CRM system, the profit of the supermarket will get increased.

4
PROJECT MANAGEMENT
5.2 Constraints
 Time: The project of CRM implementation must get finished within 76 days as extension
after the assumed timeframe will increase the entire budget of the project.
 Budget: The CRM implementation project must get completed within AUD 48,120 such
that financial challenges does not occur.
 Scope: The project manager needs to successfully follow the scope while executing the
entire project for accomplishing the objectives of the project.
6. Analysis of options and recommendations
It is found for resolving the challenges, the organization can follow the following options
that are illustrated below:
Implementation of CRM system: With the CRM system, the supermarket can be
capable of reaching the customers quite easily and can be able to resolve their issues in a very
short time period.
Hiring employees: The supermarket can hire a greater number of employees so that they
can tackle feedback and complaints from easily. Though hiring of employees can make the
procedure little bit faster but still it is impossible for the organization to reach the customers
instantly for solving their issues.
After analyzing both the options, it is found that implementation of a CRM system is
considered as the appropriate option as by using this system, the Friendly Grocer can be capable
of reaching the customers easily. In addition to this, the CRM system helps the entire business

5
PROJECT MANAGEMENT
for properly recognizing the customer value for successfully capitalizing on improved relations
of the customers.
7. Preliminary project requirement
The preliminary requirements for implementing the customer relationship management
system for “Friendly Grocer” supermarket is listed below:
Hardware
 Computer
 CPU
 RAM
Software
 Zoho CRM software
 Antivirus software
8. Budget estimate
The table that is provided below helps in suggesting that around AUD 48,120 is needed
for implementation of CRM system for a small supermarket in Australia.
WBS Task Name Duration Cost
0
Development of CRM system for
Friendly Grocer Supermarket
76 days AUD48,120.00
1 Project initiation phase 10 days AUD2,280.00
1.1 Analyzing the project need 3 days AUD720.00

6
PROJECT MANAGEMENT
1.2 Preparing the plan for the project 4 days AUD960.00
1.3 Checking the feasibility of the project 3 days AUD600.00
1.4
Milestone 1: Completion of project
initiation
0 days AUD0.00
2 Project planning phase 24 days AUD4,840.00
2.1 Preparation of project schedule 7 days AUD1,120.00
2.2
Determination of different types of
project resources
3 days AUD480.00
2.3 Assigning the resources of the project 4 days AUD960.00
2.4 Communication plan preparation 5 days AUD1,800.00
2.5
Allocation of work to the project
team
4 days AUD480.00
2.6
Milestone 2: Completion of
planning phase
0 days AUD0.00
3 Project execution phase 42 days AUD39,480.00
3.1 Deploying the project device' 8 days AUD1,280.00
3.2
Developing the prototype of the
project
7 days AUD1,680.00
3.3 Implementing the CRM system 6 days AUD480.00
3.4 Database development 7 days AUD10,500.00
3.5
Connection of database with the
system
6 days AUD6,440.00

7
PROJECT MANAGEMENT
3.6 Testing of the system 5 days AUD2,200.00
3.7 Testing of the database 4 days AUD9,940.00
3.8 Real data transfer checking 2 days AUD960.00
3.9
Adding significant features to the
system
3 days AUD2,640.00
3.10 Software checking 6 days AUD2,640.00
3.11 Testing 2 days AUD720.00
3.12
Milestone 3: Completion of
execution phase
0 days AUD0.00
4 Closing Phase 5 days AUD1,520.00
4.1 Getting sign off from stakeholders 1 day AUD240.00
4.2 Reviewing the project 4 days AUD1,280.00
4.3
Milestone 4: Completion of closure
phase'
0 days AUD0.00
9. Financial analysis
The financial analysis that is done reflects that the undertaken project in financially
feasible and the ROI of the project is 0.8944
Project
Cost-Benefit
Analysis
Analysis
Variables:
Discount
Rate Used
5.00
%
Annual $

8
PROJECT MANAGEMENT
Benefits
40,00
0.00
Annual
Operational
Costs
$
10,00
0.00
One-Time
Developmen
t Cost
$
48,12
0.00
Year of
Project
0 1 2 3 4 5
TOTA
LS
Economic
Benefit $0.00
$
40,000.
00
$
40,000.
00
$
40,000.0
0
$
40,000.
00
$
40,000.
00
Discount
Rate
1.000
0 0.9524 0.9070 0.8638 0.8227 0.7835
PV of
Benefits $0.00
$38,095
.24
$36,281
.18
$34,553.
50
$32,908
.10
$31,34
1.05
NPV of all
BENEFITS $0.00
$
38,095.
24
$
74,376.
42
$
1,08,929
.92
$
1,41,83
8.02
$
1,73,17
9.07
$
1,73,1
79.07
One-Time
COSTS
$
(48,12
0.00)
Recurring
Costs $0.00
$
(10,000.
00)
$
(10,000.
00)
$
(10,000.
00)
$
(10,000.
00)
$
(10,000
.00)
Discount
Rate
1.000
0 0.9524 0.9070 0.8638 0.8227 0.7835
PV of
Recurring
Costs $0.00
$
(9,523.8
1)
$
(9,070.2
9)
$
(8,638.3
8)
$
(8,227.0
2)
$
(7,835.
26)
NPV of all
COSTS
$
(48,12
0.00)
$
(57,643.
81)
$
(66,714.
10)
$
(75,352.
48)
$
(83,579.
51)
$
(91,414
.77)
$
(91,41
4.77)
Overall NPV
$
81,764
.30

9
PROJECT MANAGEMENT
Overall ROI
0.8944
10. Schedule estimation
The schedule that is provided below helps in showcasing that around 76 days are required
in order to accomplish the project successfully.
Figure 1: Gantt chart
(Source: Created by Author)

10
PROJECT MANAGEMENT
11. Potential risks
Risk Id Risk Risk
description
Impact Probability
1 Schedule
slippage
Slippage of
project schedule
can cause delay
in completing
the project.
High High
2 Lack of
experienced
workers
If the workers
are not
experienced then
they face a lot of
challenges in
completing the
work.
Medium Medium
3 Budget shortfall If the budget is
not successfully
estimated then
the chances of
budget shortfall
is high that
further causes
High High

11
PROJECT MANAGEMENT
financial issues.
4 Technical issue Ineffective
testing of the
system can cause
a lot of technical
challenges while
operating the
system.
High High

12
PROJECT MANAGEMENT
References
Badewi, A. (2016). The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management, 34(4), 761-778.
De Carvalho, M. M., Patah, L. A., & de Souza Bido, D. (2015). Project management and its
effects on project success: Cross-country and cross-industry comparisons. International
Journal of Project Management, 33(7), 1509-1522.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
Huemann, M., Keegan, A., & Turner, R. (2018, September). Human resource management in the
project-oriented organization. Project Management Institute.
Kaiser, M. G., El Arbi, F., & Ahlemann, F. (2015). Successful project portfolio management
beyond project selection techniques: Understanding the role of structural
alignment. International Journal of Project Management, 33(1), 126-139.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kivilä, J., Martinsuo, M., & Vuorinen, L. (2017). Sustainable project management through
project control in infrastructure projects. International Journal of Project
Management, 35(6), 1167-1183.

13
PROJECT MANAGEMENT
Samset, K., & Volden, G. H. (2016). Front-end definition of projects: Ten paradoxes and some
reflections regarding project management and project governance. International Journal
of Project Management, 34(2), 297-313.
Svejvig, P., & Andersen, P. (2015). Rethinking project management: A structured literature
review with a critical look at the brave new world. International Journal of Project
Management, 33(2), 278-290.
Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D. (2015).
Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.