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PROJECT PROPOSAL FORM
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Date: 08/27/19
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Proposal: The Retail Store
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Project Manager: Andrea Chandler
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Project Definition
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The project’s goal consists of expanding the core offerings by %10 within a 2 -year time frame, achieve the annual sales of at least 5 million and improve 10 low income communities throughout the state. Additionally, expand the stores by 10% and open a store in neighboring states within a 5- year time frame. Partnering with Starbucks to sell their coffee products for shopping customers and include a play area for kids while consumers shop.
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What business problem does the project solve
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During the next couple of months providing the above for the project will , create more jobs for the community , provide low incomes communities the opportunity to shop in a retail store that is affordable in the convenience of their own community, expanding the retail store will offer quality products from new & existing vendors, the business is able to strategically plan , organize and develop areas of improvement needed to carry out the objectives of the business. The business will be more profitable instead of losses due to expanding the business. Including receiving additional products from vendors and offer the community a larger scale of products and services. Sales should increase from $3.2 million to a possible $3.7 million doubling the profit for the company.
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How does this project align with our organization strategy?
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The Retail Store is conveniently striving to locate in every community especially the smaller communities, while strategically eliminating higher prices for products and providing quality products which are cost effective to individuals who are less fortune living in low income communities.
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What are the major deliverables of the project?
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The major deliverables of this project is expanding the core offering by %10 within a 2 year time frame and achieving an increase in sales of 5 million. Additional deliverable is providing low income communities with affordable quality retail products.
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What is the impact of not doing this project?
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The impact of underachieving this project would either decrease sales if another retail store competitor opens a store in the same community with quality products costing less than The Retail Store. Possible turnover of employees, low income consumer would be unable to afford products and services of The Retail Store.
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What are the three major risks for this project?
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1. Sales & Revenue increase
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2. Is the current store able to expand without purchasing additional retail property?
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3. Will expansion attract low income consumers and more consumers who live near the store?
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What is the intensity of the above risks?
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Probability
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Impact
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1. Expansion is costly unable to finish
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Low
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High
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2. Low income consumers unable to afford, business wasted money to expand.
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Low
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Low
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3. Unable to hire new employees because of expansion, business has low funds.
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Low
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High
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How will we measure success?
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The success of the expansion will determine the increase of 5 million in sales revenue. Additionally, the success will be measured by the demand of products requested by consumers. An increase in consumers, sales and overall expansion will determine the success of the business.
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Will this project require internal resources?
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The project will require internal resources such as a Project Management Manager alongside the project management team to strategically, plan organize and create goals for the construction of expanding the current store. Additionally, a blueprint of the expansion should be provided for the project management team to review and establish problems or concerns with the construction of the building. Prior to establishing a Blue-Print the project management team needs to submit this proposal for the cots of the expansion, and hiring of possible new employees after the expansion. The Project Manager needs to hire a company to complete the expansion, provide them the Blueprint & timeframe for the finished expansion. Internal resources include the mission of the organization, goals, objectives, strategic plans, and schedule.
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Are these resources available?
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Resources for the product are available and a profit and loss report has been generated by the project’s team.
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What is the estimated cost of the project?
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Supplies, expansion cost, buying inventory products from vendors & distributers.
a. Additional revenue generated form partnering with Starbucks, cost to expand an area for both Starbucks & child play area.
b. Cost for labor to expand the current store.
c. Overall cost to expand the store (supplies)
d. Approval for the budget to hire new employees for the expansion.
e. Cost for leasing or buying property for the opening of additional stores.
f. Estimated cost 1.2 million (Starbucks) s is willing to provide 45 percent of the total cost.
g. Labor, -Drywall, $1.50 per square foot- Supplies, Wood paneling-counter-tops, flooring and new cash register systems and new products. Resources, Expansion, New Employees Payroll estimated cost for The Retail Store 54 million.
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How long will this project take?
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This project will take approximately 2 -5 more years depending if the expansion is planned and structured correctly. The Retail Stores needs to solidify a plan of action for the construction and expansion of the The Retail Store.
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Reviewed by
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Andrea Chandler
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Date
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08/27/19
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