Project and Risk Management for Morrisons Budget Store Expansion

This project report analyzes the project and risk management strategies for Morrisons' initiative to open 20 budget stores. It begins with an introduction to Morrisons and the rationale behind the project, including SMART objectives aimed at increasing sales and revenue. The report then details the project scope, utilizing a Work Breakdown Structure (WBS) and a Precedence Diagram Method (PDM) to outline tasks and dependencies, complemented by a Gantt chart for scheduling. A significant portion is dedicated to risk assessment, identifying potential technological changes, customer demand shifts, and competitor strategies as key risks, along with a risk register and qualitative assessment. The report further explores project costing, budgeting, and financial viability, including a benchmark of similar projects and an appraisal of the project's ROI. Stakeholder management and a communication plan are also addressed. Finally, the report concludes with measures to ensure the project remains within scope and details the key deliverables of the handover phase.

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