Strategic Project Management Report: Luxury Home Creation Analysis

This report provides a strategic project management analysis for Luxury Home Creation, a start-up construction company. The report begins with an executive summary, followed by an introduction outlining the company's mission, vision, and values. It then delves into business strategies, including a SWOT analysis and Porter's Five Forces to assess the competitive landscape. The report explores business development strategies, implementation methods, and strategies for managing projects related to home décor and luxury services. It covers the fundamentals of executive project management, including initiating, planning, execution, monitoring, and closing phases. Furthermore, the report identifies failure factors and offers recommendations to improve project outcomes. The analysis includes a detailed examination of the company's strengths, weaknesses, opportunities, and threats, along with a comprehensive project management framework. The report aims to provide insights into achieving project success and mitigating risks within the competitive market of luxury home creation.

Running Head: STRATEGIC PROJECT MANAGEMENT
STRATEGIC PROJECT MANAGEMENT
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Executive summary
The report highlights the strategic project management methods that are required for
Luxury Home creations to improve the failure of the project in their future. In the present
report, it has been found that organisation may fail in a start-up project owing to the lack of
proper communication skills, lack of motivation amongst project members and lack of proper
project planning. Apart from these factors, it is the challenging components of the external
environment, which may influence the project progress leading to failure in cost as well as
resources. In order to address this issue, the report presents a set of activities that help to
implement the project management activities and organise them in a required way.

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Table of Contents
Introduction................................................................................................................................4
Mission...................................................................................................................................4
Vision.....................................................................................................................................5
Value.......................................................................................................................................5
Goals.......................................................................................................................................5
Business strategy........................................................................................................................6
SWOT analysis of Luxury Home creations............................................................................6
Business development strategy...............................................................................................7
Porter’s five forces of Luxury Home creations......................................................................9
Threats from new entrants..................................................................................................9
Bargaining power of the suppliers....................................................................................10
Bargaining power of the customers..................................................................................11
Threats of getting substituted............................................................................................11
Competitive Rivalry..........................................................................................................12
Implementation of strategy......................................................................................................13
Linear model strategy...........................................................................................................13
Interpretive strategy..............................................................................................................13
Adaptive method..................................................................................................................13
Strategies for managing the Project related to Home décor and luxury service......................14
Setting up of objectives and value........................................................................................14

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Market research....................................................................................................................14
Feedbacks and interaction....................................................................................................14
Quality planning...................................................................................................................15
Fundamentals of executive management of the project...........................................................15
Initiating...............................................................................................................................15
Planning and designing.........................................................................................................16
Execution..............................................................................................................................16
Monitoring and managing....................................................................................................16
Closing..................................................................................................................................17
Failure factors of the project....................................................................................................17
Recommendations....................................................................................................................19
Conclusion................................................................................................................................20
Reference list............................................................................................................................22
Appendix..................................................................................................................................25
Appendix 1: A framework of project Manager duties and roles..........................................25

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Introduction
Luxury Home Creation is a small start-up construction organisation that will be
located in Sydney, Australia. The company is to establish luxury designs and costumed
mansions designs across wide dimensions of styles from contemporary structures to classic
layout. The main aim of the company will be to deliver the finest service for building
experiences with the consumers. They will be working hand in hand with the designer,
interior designer as well as with a skilled construction team for developing a unique home
experience. However, the plan is to shift its target market from the residential customers to
larger commercial consumers for enhancing future business. The project management plan
will therefore lay down the goals and values to create successful planning with a limited
share of the market to achieve success in the competitive market.
Luxury Home creations will be offering service related to the creation of luxury home
designs and mansions by implementing business differentiation strategy. The organisation
will be designed in such a way that will allow the organisation to carry out whatever that is
required to complete a project. Some of the services of the will be refurnished internal home
decorations and designs. In addition, their services will include luxury home service and
designs for the mansions in Australia.
Mission
Their mission of the organisation is to offer standard quality services through the
preparation of the home designs, estimation of cost, alteration of designs, repairing and
changing in Luxurious home decors as per the requirements made by the consumers. The
company will be maintaining a high quality of service in terms of commercial construction in
Australia.

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These actions are underpinned by the financial strength and their ability to work
alongside their partners of investment. Through the application of this approach in a
disciplined way, they have managed to develop a leading international group that is popularly
known in the market.
Vision
The organisation’s vision is to develop places that leave a positive mark with an
emphasis on health and safety for the customers, innovation as well as sustainability. The
strategy of Fosse commercial Limited’s vision is to deliver effective services and to create the
best places by leveraging their integrated model of business in major gateway cities.
In addition to this, through the recognition of innovative and contemporary financial
solving of the issue, the organisation will be working closely with the international investors
and shareholders of the market. In this context, the innovation, technological effectiveness
and brand identification in the established market have been the foremost competitive benefit
to the structure of the Fosse commercial limited.
Value
The value of the company is to apply knowledge of skills utilising a formal set of
equipment’s, methods provided with wide dimensions of the project activities for meeting the
requirements of the project. In this aspect, project management requires a specialised set of
knowledge and expertise; this will be accomplished through a set of processes, like initiating,
planning to execute, managing and to close the project that will be carried out by the
managers and project team members.
Goals
 To secure at least three years of small-scale commercial project contracts

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 Increase the customer base through extension into other demographic location in
Australia for retaining an adequate level of profit
 Increase the expenditure of project by 10%
Figure 1: Process of Project management
(Source: Too and Weaver 2014)
Business strategy
SWOT analysis of Luxury Home creations
Strengths
 The company is a start-up
Weakness
 Luxury Home creations are highly

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organisation with multiple activities
of construction service.
 The company has a broad network of
suppliers across Australia.
 Aims to build Strong relationships
with their customer
competitive in the Australian market
 The company has limited exposure
to international location
 The company has operational
activities in limited locations
(Walker et al. 2015).
Threats
 Domination of the competitors in the
market that might result in the
decrease in the organisational share
of the market (Antunes and
Gonzalez 2015).
 Competitive price may lead to fall
down of the profit for ensuring the
share in the market
 Unpredictable issues in the project
occurring due to the recessions
Opportunities
 Luxury Home creations have
opportunities to extend their services
in other countries (Ens et al. 2015).
 They can offer new construction
service
 They have the opportunity to
collaborate with their competitions
Business development strategy
The company operates with an intention to provide service to the customers with the
highest standard of the products at a reasonable price by emphasising on consumer relations.
Large channels of independent suppliers that will extensively assist them in creating value by
providing luxurious service to the customer as per their requirement, which in return will also
support them to sustain the competitive advantage (Gou 2016). Therefore, with the use of
competitive strategy and the use of independent partners the organisation will be able to serve

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their customer with luxurious construction service at an affordable price. This, in turn, will
also help the start-up company, in strengthening it is dealing with the networks and will help
to manage the organisation’s competitive advantage for a sustainable period. Moreover, along
with the assistance, the organisation needs to keep changing is business project strategies for
their own establishment and to compete in effectively with the contenders (Cao et al. 2015).
In this context, they are required to regularly update the strategies, as well as approaches for
the different markets as well as they, are required to provide timely training to their dealers.
Therefore, this business strategy will allow them to easily create a value for their service and
will help Luxury home creation in sustaining their competitive differentiation in the market.
Measurement principles to evaluate the strategic effectiveness of the strategies
In order to manage the measurement principles, the company will be making use of
various measurement principles for verifying the strategic efficiency of the project related
operation. One of the major evaluation guidelines that will be used is the evaluation of the
strategies and approaches on a regular basis. As stated by Higgins et al. (2015), for analysing
the existing strategies and approaches, the company will be making use of the various
strategic equipment’s like PESTEL analysis for evaluating the external and internal
environment will be analysed using SWOT analysis tools. These tools will allow them to
analyse their own competencies and weaknesses existing in their organisation, and porter’s
five-force will be used to evaluate the market, competitive rivalry and suppliers.
The organisation's approach towards providing service to their customer with
standards quality products through their individual partnership network is appropriate for
them to serve premium quality products (Ceric et al. 2016). In addition, these strategies will
allow the company to keep establishing their strategies and process of manufacturing with the
use of innovative technology needed for constructing luxury homes and mansions. At the

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present situation, Luxury home creation is planning to provide small project home designing
services, and sell some machinery and equipment's related to interior designs for luxury
homes and mansions to the customers in Australia. The company’s effective guidelines to
evaluate its strategic effectiveness as well as to use its effective business methods will be
directing the company towards transforming itself into a successful producer of the home
décor and small construction-related services for luxury homes (Wilson and Zamberlan
2015). This is because the success of the product and service is dependent on the
organisation’s strategic planning of the entire project it takes, that will provide them and
framework to achieve success and will help them to serve the consumer as per their changing
requirement and valuable products.
Porter’s five forces of Luxury Home creations
Threats from new entrants
New emerging market in construction industry comes with innovative methods of
performing things and that may create pressure on the Luxury Home creations by low price
on operations, lower cost, and by offering the new proposition of value to the consumers.
Luxury Home creations need to manage all these issues and need to develop an effective
process to protect its competitive advantage. However, in case of luxury home décor and
mansion designs, there might be a strong threat from the new entrants in the commercial
industries while high levels of challenges to the entry in the construction and interior
designing service. Therefore, a for the small start-up company within Australia it might be
difficult for them to manage in the highly competitive market.
The organisation needs to innovate their products and services by bringing new
customer new reason to buy Luxury Home creations services. As stated by Chih and Zwikael
(2015), they need to build the scale of economies so that it helps them to reduce the fixed cost

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for each unit. Moreover, they need to establish capacities and are required to spend expenses
on research and development. However, emerging new entrants are less likely to enter the
ever-changing industry wherein the dominating players including Luxury Home creations
keep maintaining their standards on a regular basis. The company needs to reduce their
opportunities for extraordinary profits for the emerging organisation. By doing so, they can
discourage the emerging players in the organisation.
Bargaining power of the suppliers
All organisations in the small-scale construction industry tend to purchase their raw
goods from multiple numbers of suppliers. Therefore, distributors standing in the
empowering position can as well lower down the profit margin of the Luxury Home
Creations. However, a start-up producing industry requires raw materials, including the cost
of labour, materials and other necessary supplies related to luxury home service. This
requirement may result in the high buyer and supplier relationship in the industry and for the
organisation who delivers raw material for creating room decorations products. Therefore,
powerful supplier within the market has the capability to exert the impact on the producing
industries who are selling the raw material at a comparatively higher price to obtain the
profits from the industry. The overall impact of high bargaining power of the suppliers is that
they reduce the net profit of Real Estate. The power of the suppliers for the start-up company
in Australia may be high. This is because people have to change demand for home-related
services.
In order to address these issues, Luxury Home creations need to develop an efficient
supply chain with the multiple numbers of suppliers. The company is required to experiment
with product designs by using different types of materials so that in case the price goes up for
one of the raw materials then the organisation will be able to shift to other (Badewin 2016).
Moreover, the company needs to develop dedicated suppliers whose business is dependent on

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the company. However, one of the methods that Lands lease group will be able to learn from
Wal Mart and Nike is the way, which this organisation established third-party producers that
have significantly less power of bargaining in comparison to Walmart and other organisation.
Bargaining power of the customers
Customers are often demanding in case of construction services. They often want to
buy the best offer that available by paying lowest as much as possible, this type of issues may
put pressures on the profitability of the Luxury Home creations in their future period. The
small and dominant customer base may increase the bargaining power of the consumer and
increased capability to enhance discount offers. The power of the buyers within the industry
may be comparatively low due to the high gap present in the demand-supply chain.
According to Head and Alford (2015), in order to manage these issues and Luxury
Home creation needs to develop a larger customer base that will be helpful for them to limit
the bargaining power of the consumers. In addition to this will also provide them with an
opportunity for the organisation to streamline the sales and process of production. Therefore,
by rapidly innovate the products; customers will be able to get discounts and offers
established by Luxury Home creation.
Moreover, for attractive customers, the dealers of the company needs to provide the
best offers to the target customers, festive and social occasional such as new year's eve and
another festive eve in Australia. These activities will help them to enhance their sale and the
project. However, the consumer may become tempted with many other services offered by
the rival and emerging companies and they began looking for innovative home décor
services. Consumers are as well too much sensitive to price; they may not be preferring avail
new service with a high price. Therefore, it is necessary for the company to implement a
differentiating strategy by taking up a standard project that may influence the customers.