Order 1328631: Project Management

After acquiring the necessary resources, the next step requires reservations with third-party vendors - this can occur in a 30-day time frame. The company would implement a review panel of all potential vendors to finalize an appropriate vendor that meets the needs of the client. When a milestone has been met, our client would be notified immediately. An example of this process is shown in figure 2.4 where the time frame of October 1 to October 5, 2018, entails confirmation that the client has decided on a particular vendor and the release of funds required to reserve the vendor. This coordination enables us to reduce risk, increase resource coordination, and reduce costs. In addition, this will minimize process loss; more individuals assigned to a task will equate to a larger effort exerted and higher costs to complete a project task. Reducing inefficiencies are fundamental to reduce cost and increase the overall profit. In brief, the deliverables for the following project include an initial project proposal, task delegations, resource acquisitions, vendor reservations, and project finalization.

A wedding is a ceremony to celebrate the union of two individuals in a legal and spiritual manner. Recent studies demonstrate that the average cost of a wedding in North America is approximately $30,000 (Riley, 2008). One-third of the costs are associated with the venue, which is a significant indicator of the costs of the goods and services required to host a wedding. This also demonstrates the attractiveness of current industry trends. Salud’s predisposition implements a cost-saving strategy in multiple dimensions including the venue, services, and wedding products (decorations, props, etc.) in bulk as we have existing suppliers and partnerships. This new market we intend to capture will increase Salud’s overall market share by a projected 10% which will allow us to segue into planning other event types. The overall diversification of our portfolio will positively impact shareholder morale and increase our stock valuation, thus increasing company value. For this project to be successful, we are anticipating approximately a 40% profit margin juxtaposed to industry competitors that earn 15% (Francis, 2015). This is due to our ability to leverage our pre-existing position, and our project will increase both overall market share and operating profit significantly. Overall, the financial plan strategically positions us to adapt swiftly to the ever-changing market demands.

Salud has a longstanding relationships with its vendor, Fairmont Hotels, as it has been the venue of choice for previously planned weddings. Fairmont hotel is established in twenty-four countries; we have chosen Hawaii as a target destination as it focuses on one specific target market where we can execute deliverables efficiently. The deliverables include providing the clients with a comfortable place to stay within the hotel. Third party catering, cosmetic, photography, floral, and printing services will be required to meet the clients personal expectations, while maintaining the creative component of the event.

The amount of money required to complete this project is approximately $20,800.00 (refer to summary budget in figure 1.3). This budget was created to cover the costs of the initial business plan and process of the project. This budget includes wage expenses for the following staff: research and development, legal department, marketing department, event planners, marketers, and vendors. Every booking requires percentages of the profit to be given to our partners, per contracts; partners include: Fairmont Hotel, a catering service, makeup/hair services, photography/videographer services, DJ music service, invitations (printing service company), floral company, and officiant services. Budget constraints faced during this project can be a change in service fees provided by our partners. If their rates rise, the percentage of profit that belongs to the partner company will also increase. Last minute cancellations are also difficult to take into consideration when forming a budget. Financial precautions can be taken to best avoid this, such as including a statement in the contract which requires cancellation fees to cover additional costs.

In reference to deliverables in 2.1, the resources that would entail more financial investment from the budget would include labour and equipment. Leading to cost of labour, the projected expenses of an estimated $15,000 to $20,000 would include the cost of the venue, event planning staff, in addition to the reservations of catering, videographer and photographer, entertainment.

To elaborate, catering service costs will cover the food, beverages, and staffing; for our wedding planning, we will offer cocktail-style plating for the reception and a formal plated style for the dinner. The average cost of the catering services is approximately $4000, according to Wedding Wire. However, the destination wedding package offered in Hawaii will require higher food costs based on the location and level of plating; the average cost per guest is $312. Catering expenses vary depending on the client’s tastes and preferences in terms of style and quality.

Photography and videography services will average about $5000 based on the package; the company will offer additional services such as photo albums, editing, staffing, and premium prints. Travel costs will be considered extra expenses for the client. In addition, the company should have a direct connection with a printing service which individually caters to the needs of all clients. The DJ music service will not be a large expense for the wedding, as the average cost often ranges from $1000 to $1500. This expense will cover the cost of equipment, music, service, lighting, and operational costs. The floral company would offer packages including the bouquet, labor and production, flower processing, and delivery. This is approximately 10% of the wedding budget, although certain types of flowers will require higher flower arrangement expense. The average cost of the floral services is $1400. In terms of officiant services, typically clients will prefer experienced ministers, which is an estimated $200 to $500. However, this expense can increase if clients request custom ceremony scripts or wedding rehearsals prior to the wedding day.

Some budget constraints include what the client has estimated for their ideal wedding event, which should incorporate all the essential, including the services our business offered. Furthermore there will be opportunities where vendors meet the needs of client however will not be in consideration in the event their services are outside the projected budget spending. This will require additional time to explore options available as mentioned on the milestone schedule in figure 2.3, yet to summarize the primary budget constraint will be influenced by the projected budget agreed upon by the client.

NTC Consulting Group 2