Project management of a company Essay

With the current rapid development of various business. Market competition becomes more and more fierce. Hence, a particular(prenominal) business computer program is crucial to help a business successfully achieve goals and become competitive. The aim of this report is to prep argon a business excogitate for a business. Some parts will be analysed in detail below which include a description of the business, gross revenue and commercializeing strategy and lay on the line focussing plan. A storied interior marker, Mark, lets quash Furniture (MF) which is located countryside in Melbourne.The major function of MF is providing customized piece of furniture. There be three options come throughd to customers by MF buying the bluck furniture without any changes, changing the send off of existing furniture displayed in showways, and providing design plans by customers themselves. In the beside quintuple course of studys, MF plans to develop its own ERP system and expand h is business to open linkage brands just about Victoria. The main marketing principle is that the entire efforts of a corporation should be directed towards customers needs. MF is positioned as a high reference retailer that offers a unique selling hypnotism. MF sets its business apart from others due to its unique feature of providing customized goods to its customers. Advertising and Promotion too necessary through a variety of channels in order to attract customers.These approaches include the Internet, newspaper, radio, television receiver and tradeshows. Besides sales and marketing strategy, riskiness management plan is also a significant factor that cannot be neglected. Specific and deliberate risk management plan should be established in order to minimize the negative influences on the business development and better achieve business goal and objective. The risk management plan contains the following parts, identifying and put down the potential risks, chassisifyin g the identified risks and assessing impacts of risks and developing the risk mitigation strategy for each risk. Those identified risks are categorised into sextette groups, including customer risks, supplier risks, staff risks, competitor risks, yield risks and financial risks.2.Description of the product/service police captain Furniture (MF) is a business planned to provide furniture design and sale services for both individual and companies who stimulate additional or unique furniture requirements. Goals of enterprise are to provide high-quality customized service that is secure and convenient. Mark, the owner of Master Furniture, also is a famous interior designer and won many relevant international prizes.Mark praised free spirit as his operation concept, which also directly affects his design. Purposes of establishing this entity are expressing and disseminating his artistic concepts, as well as exchanging ideas with professors and hobbyists. Customers are on top and mid dle class of society, who have special requirements and enthusiasm for furniture intention are targeted customers. The primary market foc occasions on special groups, such as the blind, the elder and mickle who are passionately sore of designing someoneal furniture. The physical shop locates in the city of Melbourne.Therefore, the target market areas are the suburbs around Melbourne. The shop includes three showrooms, which divided into bedroom, living room and kitchen. Mark designs all furniture displayed in the shop. There also have one meeting room and one stock room, which store the art industrial plant and goods customers ordered. Initially, the major function of MF is providing customized furniture. There are three options provided to customers by MF buying the existing furniture without any changes, changing the design of existing furniture displayed in showrooms, and providing design plans by customers themselves. For the first situation that customers buy furniture dir ectly from the shop and without any change, MF provides discount in economy service if customers do not want to pick up by themselves. For the second situation that customers want to change the size, color or materials of furniture found on the design of Mark, MF charges extra service fee.The extra service fees are based on the change of furniture. For example, MF charge extra 20% of the furniture set for changing color and extra 30% of price for changing size. In this case, MF provides the design drawing directly to customers in the shop or sent to customers by email. After customer confirm the design, especially in size and color then it will be sent to pulverization. For the die situation that designs are provided by customers, Mark may provide professional suggestions based on design, such as budget, drawbacks, and safety risks. After the negotiation amid Mark and customers, the design drawing will send to the factory. MF owns a truck, which is capable to provide delivery service to customers. For loyal customers who had transaction records in MF database, can enjoy discount delivery service as well as customers buy furniture directly from shop and do not have any change. On the other hand, customers also can pick up by themselves.All advertisements include leaflets, which displayed the new designed furniture and price, a call in number that potential and current customers can call to query the service. For the customers who want to change the design or designed by themselves, MF calls customers once their goods arrived in the shop. The background factory of MF is outsourced to Rojos furniture factory, which is located in the countryside of Melbourne. Once Mark confirms the design drawings and send to factory by email or fax, factory sends an invoice which includes due time of production, price, and quantity back to MF. In this period, MF will confirm the price with customers and then response factory. Factory will undertake to work after receiving the confirmation from MF. After factory completes the invoice and sends goods back to MF, MF will inform customers to decide whether they want to pick up by himself or herself or delivery furniture to home.MF has twain full-time receptionists and one part-time driver. When customers step into the MF, the front desk receptionists, who understand Marks design concept completely and have excellent communication skills, will communicate with them and introduce products in the showroom to clients. If clients want to design furniture by themselves no matter completely self-design or partly design, they could make appointments with Mark to discuss. When customers decide to purchase, they need to wages whole amounts for existing products or deposit for new design products.Then receptionists will create account for clients in the MF customer information database, which can help customers get discounts for delivery service in next purchase. On the other hand, receptionists also need to con firm delivery information with customers, such as delivery address, time and payment method. Once clients confirm the delivery, it is the tariff of receptionists to inform delivery information to the driver. The major responsibilities of driver are delivering and unloading products as well as receipts to customers.After customers signing for confirmation, the last missionary post of driver is bringing back confirmation of customers to MF. MF offers after-sale services to customers, such as maintenance, consultancy. In the next five years, MF will develop its own Enterprise Resources Planning (ERP) system, which includes a website for advertisement Customer Relationship Management System. Moreover, Mark is planning to expand hisbusiness, which focusing on open Linkage shops around Victoria. In order to attract more clients, membership will be applied in MF system. Based on the expanding business, more staff is compulsory for different purpose. There are several kinds of positions will available in MF designers, receptionists, salesman, full time delivery drivers, and back officers. Moreover, as a famous designer, Mark will provide videos in shops to show his award-winning art works, and by this way to disseminate his design concept and let more people know about furniture art.3.Sales and marketing strategy3.1 SWOTBased on the goals of MF build social club image, gain competitive market pct and refine logistic, productions and operational systems, SWOT analysis applied to in this subsection to analyze aptitudes, helplessnesses, opportunities and banes. The evaluation of the strategic process has to be done in order to conduct the SWOT analysis. StrengthIn these recent years there is an increase in demand of furniture products that is modern and unique. These classifications make the ho subroutine of the MF customers to be different from others. And the minimal design is apply to express a maximum effect of the art used in the furniture the arts used in minimal design mostly will be in the form of visual art and music. The MF has the highly educated workers in the organization. The serviceman resources used in both the outlet shop and the factory are skilled, capable of producing the design requested by the customer. Diversity and ideas is the most important strength of the organization. This innovative idea makes us differ from our competitors. Integrating different ideas into a furniture product, that forms the critical success factors. The furniture market has a big parliamentary market, where there is always a way to establish our organization and product information through the media. This also forms the strength of our organization. WeaknessThe major part of the weakness lies in the stock control, which is inefficient. There are many cases where the stocks may be outdated. In some cases there may be insufficient stocks. And at sometimes the stocks would not be available on the time needed, sometime available more than what is needed. Trust, forms the middle of the business process. The materials that are supplied by the external organizations at sometimes create a lack of trust in them. As the furniture company is mainly dependent on external organization for the raw materials, suffer their trust when the raw material is not good and when it is not supplied the time needed. Master Furniture is known especially for its uniqueness in the product.When there is some situation where the organization has to share the knowledge with the other employees and external organization, the knowledge shared can be misused. These cases the organization has to take the risks. The demand for the traditional expression of the furnitures is decreasing rapidly. On the other hand new innovation and change in this industry has slow absorption. Till a product is completed the quality of the product cannot be judged. Once the quality of the product fails a new product has to be created and the raw materials used cannot al so be reused. As known for producing single furniture a large quantity of raw material has to be invested. OpportunitiesBig potential is developing in the market sector for designing. As the main part of this business is designing as per requested by the customer, the minimal designs are creating new opportunities for these kind of design patterns in the market. The labor cost can be reduced by outsourcing it to the other countries such as China. There is a large scope in the investigate and development as the customers are looking forward for the uniqueness in the product they buy. So, research and development capability is high. Hybrid solutions can be achieved by blending and balancing. This can be done using the effective production methods. There is only a very little competition in the designing of the modern furnitures. ThreatsThe major threat to be considered is that the cost of the raw materials, which is always showing upward trend in the rise of the prices. This causes t he regular price fluctuation of the products stimulated. The new ideas or methods that are used in the manufacturing of the product sometimes lead to uncertainties. The innovation in the product cannot be always successful. The MF Company also has to hope with the fast changes and new inventions in the industry. When a new production method is introduced then there willbe a change in the stock control. This will lead to a large fluctuation in stock control.3.2 Marketing StrategyCustomers are considered as core in any business. The companies manufacture goods according to the needs of its customers. They would like to increase their market share by beating their competitors through sales. One should have a proper business plan to achieve this. The company should know the likes and dislikes of its customers. Based on these factors it can build a business strategy that allows you to satisfy your customers. The two main marketing principles are The entire efforts of a company should be directed towards customers needs. Profitable sales volume is more important than maximum sales volume.PositioningMaster furniture is positioned as high quality, moderate price retailer that offers unique customizes goods. As Master furniture provides special services to their customers their goods are positioned at high quality which lean towards higher prices. Their market positioning goals are accomplished through the following Appointing outstanding sales persons in Master furniture retail store who understand the customer needs. Explaining their manufacturing capabilities and uniqueness through demonstrations. To highlight their ability to customize and quality they should provide invitational sales.Unique exchange PropositionA unique selling proposition is what your business stands for. It sets your business apart from others. Instead of attempting to be known for everything, businesses with a unique selling proposition stand for something specific, and it becomes what youre known for. Master furniture sets its business apart from others due to its unique feature of providing customized goods to its customers.Price vs. Quality & DesignMaster furniture maintains high quality & provides appealing customizeddesign according to the customer needs at affordable prices.Advertising and PromotionMaster furniture will use different sources to communicate with their targeted market. Newspaper, local cable, billboards, pamphlets are different sources to attract customers. They use the electronic media to attract customers and explain their concept of customization. Their customers being the middle and high class in the society Master furniture uses radio and television to advertise. Posturing and vehicle writing methods can also be implemented to advertise. Master furniture uses media to advertise. These include InternetNewspaperRadioTelevisionTradeshowsInternet Advertising through the Internet is the best way to advertise these days. Social communicateing websit es like Facebook are used for advertising. This would be the most effective advertising plot for Master furniture.Newspaper Most people in Australia read newspaper. So for that reason Master furniture can use the most popular newspaper to advertise.Radio Radio is also considered as a popular media item. Many people use it for audio entertainment. So Master furniture can also use radio as to advertise.Television Television is the most popular media item. Every person in the country uses television for entertainment. Therefore Master furniture can use television to advertise.Tradeshows The trades how is an excellent mechanism to stay connected with the market and network potential customers. Aside from sales promotion the trade shows offer you the ability to see your competition. Master furniturewill attend the trade shows held every year and try to attain potential customers.4. gamble management plan4.1Purpose and ObjectivesRisk management plan is to identify and record the potential risks which may threaten the company and also assess identified risks and establishing risk mitigation strategies to mitigate negative impacts on achieving goals and objectives of the business. The purpose of the risk management plan is to describe all aspects of risk management, including 1)Identifying and recording the potential risks2)Classifying the identified risks and assessing impacts of risks 3)Developing the risk mitigation strategy for each risk4)Allocating responsibility4.2 Target AudienceThe target audience of the risk management plan includes all employees of MF company and its customers and the supplier.4.3 Risk strategyIn order to minimize the negative influences on the business development, the risk management procedure is actual by considering both internal and external factors. The necessary steps are risk Identification, risk assessment and risk Mitigation. All identified risks are categorized into six groups, including Customer Risks, Supplier Risks, Staff Risk s, Competitor Risks, Product Risks and Financial Risks. Identified risks are measured in terms of likelihood of occurrence and impacts. By combing the likelihood and impacts, the risk rating is identified to provide the priority of the risks, which would present a better perspective for risk management. The detail information is shown in Table 1below.Table 1L=Likelihood 1=Unlikely 2=Possible 3= Very LikelyC=Impact 1=Minor 2=Moderate 3= MajorR=Risk Rating L=Low M=Medium E=ExtremeRisk NameRisk DescriptionConsequenceRRisk MitigationResponsibilityACustomer RisksA.1The company highly relies on a small number of major customers Once the larger customers turn to other companies product, then the companys cabbage will be affected in the short time.The companys profit and cash flow will be affected in a period of time until finding the new customers to yield gross.22MImproving the customer satisfaction and keeping long-term relationship with valuable customer groups by on a regular basis co ntacting them and continually providing the superior products and services. Locking the existing customers and make them become larger customers. Expanding the target customer groups and seeking new and profitable customers.General Manager plane section ManagersSalesmenBSupplier RisksB.1Highly depends on one supplierOnce the existing supplier is not able to provide the products and services or produce the products to the company, then the companys normal trading operations will be affected.The companys normal operations will be affected because of the shortage of supply.33ESeeking alternative suppliers who are able to provide the similar products and services to the company. Locking the existing supplier by the long-term contracts and maintaining the relationship with the supplier regularly.General Manager Department ManagersB.2Product delivery delay riskThe suppliers cannot produce the product and deliver products on time.The company will not deliver products for its customers on time and loss reputation and credibility.11LSeekingalternative suppliers who are able to provide the similar products and services to the company. Monitoring supply contract regularly and urging products delivery.Department Managers SalesmanCustomer Service ManagerCStaff RisksC.1The staff turnover riskSome employees are critical to the business success, such as they deal with the key supplier and larger customers. The company will be affected by staff turnover.Resulting in disruption of the business operation and hard to find the appropriate new staff. The company has to spend both time and money to train the new staff.22MImplementing a strict personnel selection mechanism to find the right employees for the company. Allocating more employees to key position and training employees for backup.HR ManagerDepartment ManagersC.2Employee face occupational health and safety(OH&S) risksBecause of the nature of the work, the employees, such as vehicle drivers and porters, would injure in th e particular event.The company will be under the risk of fines or stipendiary for injury or death of an employee.11LEstablishing appropriate OH&S policies. Regularly maintain vehicles and advocating safe driving.Employees DCompetitor RisksD.1Competitor riskCompetitors will pose a current or potential threat to the business, such as competitors may open the new business nearby or launch similar products with lower price in the market.The sales and revenue of the company will be affected.12LImproving the relationships with large clients. Investing money in developing new products and services. Protecting intellectual property assets confidential and proprietorship information, such as designs and copyright. Continually monitoring competitors.General ManagerDesignerEProduct RisksE.1Large-scale product recall riskDue to product defect, the company has to recall all interchange products.The company will huge losses in expense of reworking and the sales and reputation of the company wi ll be affected in long term.13MMonitoring the quality of the products and avoid the situation which would damage the companys reputation. Training employees.General ManagerSalesmanCustomer Service ManagerE.2Copyright riskThe companys copyright is violated.The sales and revenue of the company will be affected.13MEstablishing a copyright policy. Protecting intellectual property assets confidential and proprietary information. Signing a confidential engagement when contracting work out to third parties. Getting copyright consultancy services.General Manager DesignersDepartment ManagersFFinancial RisksF.1Liquidity riskThe company doesnt have enough money to pay its debts.The companys operation will be affected.22MManaging and monitoring cash flow. Carefully making financial decisions.General Manager Finance employeesF.2Credit riskDue to the products and services sold on credit, the customers may be unable to pay the money back.Resulting in financial loss.12LChecking customers credit st atus and signing terms an conditions of trade with customers.Finance employees Salesman5.ConclusionFrom what mentioned supra wo can get the conclusion that a business plan which includes several parts, a statement of the business, marketing strategy and risk management plan. Establishing a minute business plan plays a significant role in operating the business and achieving their goals successfully. When setting a plan, the organization should particularly pay attention to risk management plan which can help the business reduce lossthe risks result and operate in a smooth way.