7CN005 Strategic Construction Project Management: Sports Club Redesign

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This report provides a strategic analysis of a project involving the redesign of a sports club's entry point to improve accessibility for people with disabilities. It includes a scenario overview, project layout considerations, initial investment analysis, financial data, and estimated cash flow projections. The report also addresses project control measures, risk exposure assessment, opportunity identification, and stakeholder analysis. Key aspects covered include the application of Porter's Five Forces model and a SWOT analysis to evaluate the project's feasibility and potential for success, along with deliverable priorities and constraint management. The overall aim is to provide a structured approach to project management, ensuring alignment with strategic objectives and maximizing the project's value.
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Strategic project management
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Table of Contents
INTRODUCTION...........................................................................................................................3
Scenario..................................................................................................................................4
Project layout..........................................................................................................................9
Initial investment..................................................................................................................11
1. Initial Investment............................................................................................................11
Financial data:..................................................................................................................13
1.4. Estimated Cash Flow for 5 years is below:........................................................20
Project Control........................................................................................................................1
Risk Exposure.........................................................................................................................2
Opportunity description..........................................................................................................3
Stakeholder analysis...............................................................................................................3
Perceptual project...................................................................................................................5
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INTRODUCTION
Strategic project management is mainly considered strategic if it is duly linked with the
organization’s strategic objectives to make a significant increase in overall performance. Project
management is mainly a process of making use of specific skills, knowledge, tools, techniques, risk, and
management strategies to full fill overall project goals and objectives. Furthermore, it has been
underlined that in context with strategic construction project planning and programming that all the
activities are required to be conducted with the help of project management strategies to effectively shape
the programming of its capital projects. Organizations have realised they can't survive in business if they
can't manage their projects, thus project management has emerged as a solid discipline practised by
highly trained, certified experts. Many businesses, on the other hand, still use project management only
on a tactical level. Of course, ensuring that items are conceived, made, and supplied to the market
efficiently and effectively is critical to the existence of businesses. Smart businesses, on the other hand,
understand that project management is an important strategic instrument. They use project portfolio
management to choose, manage, and support a portfolio of projects that have the highest potential of
propelling the company forward, keeping it afloat in the marketplace, and maximising shareholder value.
Once a piece, programme, or project has been authorised by the portfolio manager, management
takes responsibility of it and employs the proper management processes to ensure that the work is
completed productively. Project or programme managers are responsible for tracking increase in
production in terms of time, budget, resources, quality, and scope, and communicating consolidated data
to portfolio management. The portfolio management function relies on updates from the business plan
regarding any strategic changes to stay successful and aligned with company goals. This implies that any
pieces that are no longer relevant to current objectives can be removed without wasting resources. In
exchange, the portfolio manager informs the strategic planning process about portfolio performance as it
relates to the organization's intended strategy. Leadership may perform a fantastic job of putting together
a strategic project portfolio and establishing goals and ground rules. All the strategy work will be for
naught if the actual practitioners — project managers and their teams – are in a "just-do-it" attitude or are
inefficient or inept in managing their projects. That is why, at the highest levels, strategy must be
accompanied by a consistent, repeatable process that assures that project practitioners are consistent and
efficient. A repeatable strategy is the solid basis that assures that each project delivers the value that was
expected - on time and on budget, with certain allowable deviations. Failure to stay the course is one of
the most typical faults that leads to project failure. Even firms that get off to a good start by building a
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strategic portfolio of initiatives and give management marching orders frequently abandon the entire
strategy as soon as something goes wrong. They simply revert to a reactive mindset. To stay the course,
you'll need a lot of business sense and perseverance. Set the goal and strategy, then delegate project
management to the portfolio manager to maximise business value. While being receptive can throw the
entire collection off, the asset manager and executive title holder must also be flexible in order to adjust
the portfolio as endeavour risk increases, business opportunities arise, the world market changes, or a
serious problem arises that requires the repair of a major project not initially indicated in the portfolio.
Scenario
A well-established sports club with a focus on tennis and squash has a demand to redesign one of their
club's entry points and make it accessible to people with disabilities. They've spent some time trying to
figure out how this will work and what changes they'll need to make. But there are some concept works
of art for the entrance, the venue has yet to decide how to execute the work. You will have access to the
snippet drawings via Canvas. One of the problems is that the club is run by a committee, and as with all
committees, everyone knows someone who could do the job, and everyone wants the project to address
different issues. They received a £1,000,000 donation toward the project's costs, but they are now four
years into the five-year time limit on the donation. They also have outline construction permits for the
development, which will expire in a year.
The analysis of new Sports Club can be identified through Porters 5 forces model. The points included in
this model in context of the Sports Club with disabled people facility is mentioned below:
Competitive rivalry in the industry: many Sports Club are present in UK but there are very less who are
providing facilities for disabled people to see the match. There is a very good chance off increasing the
number of customer base by opening office Sports Club that is having area first specially challenged and
disabled people to reach out and see the match. Fixed costs in this industry are very high and in terms of
variable cost, it is very low. That is why buyers are having switching costs which is high in this industry
and there are exit barriers which are also high in terms of initial investment.
Threat of new entrants : it is seen that there are various entry barriers in this industry which are very high.
The reason behind this includes high capital expenditure which is included at the time of entry. This
industry is growing at a constant pace and therefore it is not easy to create a good customer base at initial
level. It also increases the chances of threat.
Bargaining power of supplier: many suppliers are present to provide equipments which are required for
managing different costs and it minimises the bargaining power of supplier. There is a threat which
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includes that supplier can be forwarding the integration because he is having the equipments for starting
the club. The main supplier in this industry is very important and he's having the ability to manage the
costing.
Bargaining power of customers: in context of this industry, the number of customers are more than the
service providers. That is why it is said that bargaining power of customer is less than the limited choice.
Service providers are having a lot of choices. There is also differentiation in context of sports which is
required for managing some kind of variation. It can be increased by the bargaining power of service
providers in relation to the differentiation of radius of rings. The customer bargaining power is very high
and switching costs includes the importance of service which is very high. It minimises the bargaining
power of customers.
Threat of substitute product: it is concluded that there is high threat of substitute product in the case
which includes the establishing service in this society itself. The members of society are not planning to
provide sports facility that is needed in the management of disabled people. The development of Sports
Club which will include area for disabled people is helpful in increasing the popularity among customers.
SWOT analysis
This evaluation will help in managing the ability of Sports Club with disabled people service success.
Strength: this means providing customers with different type of sports and providing them luxury
facilities. When Sports Club are providing luxury facilities, it is easy to increase the Way of attracting
more number of customers.
Weakness: this is a new Sports Club which will be having facility for disabled people. The brand name is
not so strong and it will create a weakness for owner. There are skilled workers who will find out the
starting phase of the working scenario.
Opportunities: This will include converting the untapped market into customers by providing these
services two individuals were interested towards seeing sports but they are unable because of their
physical disability. It will also enhance the market share of the company.
Threat: it is concluded that emergence of product substitute like providing facilities in society is
definitely going to be a big thread for this club. There are several other competidores of this club who
will also think about planning to provide facility for disabled people.
ï‚· Choosing a Location o Priorities for Deliverables:
Constraint: In this case, the pricing attribute will be set, i.e. the location must stay within the budget.
Enhance: Time will be attempt to be optimised so that the venture does not get delayed and costs are kept
in line, as it is widely accepted that height is increased cost.
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Accept: It will be approved if the site is slightly out of scope, resulting in less space than arranged, as this
can be paid by constructing a multi-story building.
ï‚· Deliverable Priorities: Sports Building Construction
Constraint: The building must be managed to complete within the specified time frame, as it is critical to
provide services on time.
Enhance: Prices will be optimised so that the project can be completed on time and on budget.
Accept: Slight variations in bounds will be tolerated, though scope is a crucial consideration.
The primary goal is to open a sports club that will offer customers infrequent as well as common
household sports like basketball, squash, and table tennis, as well as a special area for disabled people,
within 1.5 years at a cost of not more than Rs. 10 million.
Subtasks: The following are the major deliverables that will be defined here:
ï‚· Deliverable Priorities: Project Layout
The constraint will be that the project layout must be within the scope and therefore should not go far
beyond it.
Enhance: Costs should be optimised here in order to keep the project within the financial constraints.
Accept: A few days' delay is acceptable, but the project layout must be precise. But a delay in time will
drive up costs and make it difficult to improve costs, care will be taken to banks and other financial costs.
ï‚· Permissions and Local Authority Approval o Deliverable Priorities:
Constraint: In this case, the fix measurement will be time, as obtaining approvals and permissions on time
is critical to finishing the project on time.
Enhance: Costs will be attempted to be enhanced here as well, implying that the lowest possible costs
will be incurred in order to obtain approvals and permissions.
Scope: It will be welcomed if endorsement and privacy settings are a bit out of scope, for example, if less
cubic feet are approved to begin with, it can be controlled by constructing a multi-story building.
ï‚· Deliverable Priorities: Sports Building Construction
Constraint: The building must be completed within the specified time frame, as it is critical to provide
services on time.
Enhance: Costs will be optimised so that the project can be completed on time and on budget.
Accept: Slight variations in scope will be tolerated, though scope is a crucial consideration.
ï‚· Priorities for Equipment Procurement o Deliverables:
Constraint: Acquisition must be completed in a timely manner.
Enhance: Costs will be reduced by entering into the most advantageous service agreement.
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Accept: Scope will be accepted because having got a little better or worse high quality will suffice.
ï‚· Deliverable Priorities: Designing Membership Packages
Constraint: In this case, the packages must be within the scope.
Enhance: Time will be optimised in order to market the services as soon as possible.
Accept: Cost variations will be tolerated because there will be little difference in design.
In this, the organization needs to conduct planning which is dependent on the demand which is
obtained from the market and is mainly constrained in the resources. Furthermore, it has been underlined
that the programming process of a construction project mainly starts with a step-by-step procedure that is
inclusive of those activities which are required to be conducted as a priority. This further leads to
fixingtime-related issues in a well-defined and effective manner. In addition to this,an organization needs
to complete the overall target and objectives within the time constraint. Furthermore, it has been
underlined that a new construction project is initiated after the decision of strategic planning and
programming. This benefits organisation to fulfilled project in time effective manner. It further helps in
assuring to overcome the market pressure as well as the risk that can arise later to overcome them
effectively. It has been underlined that the influence of market pressure on the initiation is mainly a major
concern in various forms of construction activities. This problem is obvious a major cause of concern for
industrial construction. In this, it is essential to understand the fact that in certain situations the product
life is short. It this essential for a company to do analysis that can be done with the help of proper project
management planning. With help of this owner can conduct proper planning and feasibility study to fulfil
the scope of a construction project effectively. As negligence office will negatively organization in
various ways such as additional cost and other loss. Present report is mainly the design of a project
management plan along with the strategies to resolve issues with the help of employing the right people.
This report also includes a discussion on accomplishing the cost in time deadlines of the project and the
establishment of project cost with the help of feasibility viability risk management. This report will also
discuss the role of facility owners in strategic construction project planning and programming along with
the priorities in strategic construction project planning. The organization needs to undertake the use of
various methods and techniques to identify a lot of uncertainties that can affect the construction project.
Roles and responsibilities of the project manager in building the contract is to just make sure the
customer is satisfied and the scope of the work is completed while having the maintenance of quality
within the given constraints of budget and time. The primary responsibility of the project manager is to
provide the leadership so that they can manage the planning and organising along with the controlling
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functions so that the work effort could be a complast in a successful manner in order to meet the goals
and objectives of the construction project. Basically the role of the project manager provides the
leadership in coordinating the different types of tasks assigned to each and every deal member so that it
can be conducted in a right manner while mitigating each and every risk related to the project
management. There are a variety of roles of project manager which are conducted and performed in the
current project management of building the contract. Planning is one of the roles of project manager in
which the project manager plans and conducts the feasibility study in terms of budget and time so that the
resources allocated can be used in an optimum manner without any wastages while having the total
quality management methodology of operations. Organising is another role of project manager in which
the teams are organised and formulated so that the assignment of tasks can be done in a strategic manner.
Controlling is also one of the responsibilities of project managers in which conflict management is
conducted by them for better diversity and culture management among the team because it helps in
boosting the productivity of the project and successful accomplishment of it. Leading is also another
responsibility of the project manager in which he directs and guides the team members as per the needs
and requirements of each and every task of the project in order to have the proper decision making
regarding future considerations and improvement of the operations. Communicating is one of the
responsibilities of a project manager in which the proper communication flow is conducted from the
upper level of management to the lower level of management in order to have the better interaction level
among them so that the sharing of ideas and innovation can be introduced. Cognitive functions are also
responsibilities of the project manager in which and that also and problem solving behaviour are required
in order to conduct the risk assessment and its analysis for better mitigation and solution of the hazards
related with the current project. Self-management functions are the responsibilities of project managers in
which the self-management is conducted with the help of self assessment and analysing the own skills so
that the experience can remind and according to the task can be performed in a more appropriate and
efficient manner. Potential working using the effective Strategies and methodologies of project
management is monitored and reviewed by the project manager in order to have successful project
completion. Motivational and personal development functions are the responsibilities of project managers
in which project managers adopt various types of motivation Strategies and training and development
sessions to the Employees so that they can get increased and motivated towards the work they are
assigned and conduct the same work in a smart and potential manner. Customer awareness functions are
the responsibilities of project manager in which the process is followed in order to create the customer
requirements so that they can provide the maximum satisfaction to the customers in terms of project
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management so that the project can be developed according to the needs and requirements of the
customer.
Scope limitations and exclusions: The scope limitations in this project will be related to the services
which are provided and the participation packages that will be offered. Members must provide their own
racquets, accessories, and other machinery. Discs and other equipment will be provided by the club. They
will have to pay to eat or drink at the juice bar, which is not included in the service charge. Every month,
maintenance of the Club's appliances will be performed to ensure that it is in working order.
Project layout
The above project layout includes space for all of the athletic activities that the club offers. As a result,
the total area required for the above layout is approximately 25000 square feet, which should be leased.
There is also a juice and cafeteria in this layout, which should be useful for refreshments while having to
play and will also help the club generate revenue. The layout was created to make the most of the
available space. This structure will be built in 1.5 years, taking into account the needs of various sports,
including floors and walls, height, and so on. The building is estimated to cost Rs.3 million to assemble.
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Initial investment
1. Initial Investment
Particulars
Units
Required
Cost per
Unit
Total
cost
Building 1 3000000 3000000
Sports Equipments:
Tennis:
Net 1 6000 6000
Posts 1 15600 15600
Umpires Chair 1 39600 39600
Posts Ground Sockets 1 3520 3520
Basketball:
Board 1 19800 19800
Net 1 117 117
Ring 1 1900 1900
Badminton:
badminton set 2 2500 5000
Table tennis:
Centre fold Table-Tennis Table 2 14500 29000
Net 2 800 1600
Carrom:
Board 4 1530 6120
Striker 16 250 4000
Chess:
Full set 4 1000 4000
Other Resources:
Tables-for chess and table 8 2000 16000
Chairs 32 300 9600
Small Benches 2 800 1600
Long Benches 6 1500 9000
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Total 3172457
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