project management

Submitted by: Niraj Lamichhane Submitted to: Suresh Kumar

Student id: s301694

Submitted Date: 17th August 2018

Table of Content:

Executive Summary……………………………………………………………………… 3

Objectives……………………………………………………………………………………. 3

Performance Measurement…………………………………………………………. 3

Business Option…………………………………………………………………………… 3

Expected Benefits

Market Analysis

Strength………………………………………………………………….......... 4

Weakness………………………………………………………………………. 4-5

Opportunity……………………………………………………………………… 5

Threats………………………………………………………………........……… 5

Output Analysis…………………………………………………………………........ 5-6

The Benefit Review Plan……………………………………………………………… 6

Timescale……………………………………………………………………………………. 6

Estimated costs…………………………………………………………………………… 7

Investment Appraisal

Net Present Value……………………………………………………….......... 7-8

Return on Investment……………………………………………………………. 8

Payback Analysis……………………………………………………………………. 8

Major Risks…………………………………………………………………………………. 8

Conclusion…………………………………………………………………………........ 8-9

References…………………………………………………………………………………. 10

Executive Summery

The project on establishing Human Resource Pyramid (HRP) is a Human Resources (HR) consultancy firm having primary aim of providing quality service to the clients. HRP has proficiency in large range of HR areas that aimed to target the emerging company market. This project covers the market place of Darwin and offer the ability to offsets client’s employees regarding stock options from respective business. Especially this business will attract and appeals to many start-up companies at Darwin and its nearest areas that find capital scarce. Further, this business will be conveniently established in Casuarina suburbs of Darwin that aimed to build a devoted and durable customer based.

Objectives:

The objectives for a year of operation include:

1. To establish a service-based company whose initial goal is to exceed client’s satisfactions and expectations.

2. To expand our number of clients served by 9% by every 3 months through superior performance.

3. Providing the human service students, a good opportunity to seek the practical implication on their respective field of studies.

4. Hiring well qualified human resource specialist to help with the consulting and smooth performance of business.

5. To establish a suitable and sustainable start-up business frim which survive off its respective cash flow and has remarkable equity holdings in emerging companies.

Performance Measurement

The performance of the HRP will be determined monthly basis, where all those performance will be examined by the feedback provided by customer and the evaluation made within the business firm.

Business Option

The HRP project will be funded by the Charles Darwin university (CDU) for the initial establishment of business. Likewise, other sustained expenses will be self-financed. This business firm will offer constant offers for those clients who has the membership service of HRP, which helps to gain more clients and secure more regular customers. Furthermore, the freshers will be given free human resources training and certified copy of the received training. Hence, the important way for the better reputation and extension of market values can be achieve by working on the affordable cost by balancing the business cooperation with the clients.

Expected Benefits

Market Analysis:

There are various emerging business firms that target market for different purposes such as:

a. They ultimately need HR consultancy as they are established rapidly.

b. As they are increasing in size, but they do have very small in-house solution.

c. Capital is a scarce resource for newly developed business, thereafter the capability to take stock options in refund of cash is appealing.

Furthermore, the emerging company can be categorized into two-way, technology and non-technology. The importance of the breakdown is not that reliable since, different activities are falling under settings that do not characterize between technology and non-technology.

After being analysed the business will have following swot analysis:

1. Strength

a. Less competitive:

As our business firm is established in regional place where there are no more competitive in the market. As our business firm also aimed to increase human capital and economic growth on a regional scale which also covers the health and education development in rural and regional areas. Moreover, focusing on the better performance will undoubtedly ensure confidence and loyalty to the clients.

b. Training/education:

Training and education about the development of regional human resources and economic growth is one of the major strength of our business. Our company will provide practical knowledge and field studies for the freshers. More, training will be performed collectively as an operation formed by the students.

c. Memberships:

We organised membership system for our regular clients and will charge a minimum market rate and take stock option in the company. As our company charges price either on an hourly basis or a per project fee so that these systems will be easier for the client to negotiate for less price. Hence, our business is willing to be very flexible as much as we can.

d. References:

Our business does not have certain advertisement in social media and another place. Our goal is to perform on the references that we gained from the client’s feedback and appreciations. But, shortly we aimed to expand our business through social media.

2. Weakness

a. Small horizon:

As we established this business in very low investment, so this company will just cover the small regional place of Darwin and its surroundings.

b. Budget deficiency:

Probably, the business won’t perform its best in the opportunities to develop, since the outlet plan will primarily include most of the expected amount of budget. And he probability of development also needs more funds.

3. Opportunities

a. Appealing client in wide range:

As Darwin is the regional place and there is a need of human resource and economic growth. Hence, our business will use competitive edge of flexibility to provide good service in various areas such as education and health growth, human resources management, professional development, sexual harassment and diversity. As this also include various range of benefits to indigenous and aboriginal people of Darwin for the development of their quality of life. Therefore, HRP will attracts the local clients and will outperformed more than expected.

b. Community outreach:

The HRP will be networking door to door connection with clients to expand and explore the possible benefits to peer the market. Therefore, this also helps to meet the market position and advertisement of business throughout the community.

4. Threats

a. Dominance:

The bigger human resources company with larger investment, who could outlay their business on our area of project which possibly could be the hindrance of the growth of our local business. Hence, there is a high possible threat that bigger companies might take place in the local market in wide areas.

b. Budget crisis:

When it comes to the market challenge, the local level business is normally established with minimum budget and runs in limited technology, so these businesses wouldn’t appear in the further growth and competence.

Similarly, downgraded service to the clients might decline the values and image of the company in the marketplace. Since, the quality service is one of the strong strength to spread good image of every business firm. Hence, disconcerting on the quality service might damage the reputation of company and loss of regular costumer of company.

Output Analysis

After the evaluation and understanding of our project, we notice that there is very good scope for the better marketplace in the regional places like Darwin. The initial moto of our business will outweigh the future issues as well as possible benefits and strength of providing human resource growth and economic service will be the main strength to keep good reputation in the marketplace. The possible or upcoming issues can be solved and minimized if we provide good concentration to the major aspects that are liable for deteriorating markets place or customer from our business. Hence, we must be far-sighted and careful regularly to face problems and find the solutions.

The HRP will be all focused to develop the good relations with local people and regular clients. HRP try to improve good customer service and learn about the client’s needs, their satisfaction and market values. So, it is very hard to maintain good market position for the long-term basis, so our business firm always try to connect with costumer and promote the projects. As we also should have the alternative plans for future crises and threats. Hence, HRP should connect personal and professional contact and should relaying on word of mouth to grow its customer base.

The Benefit review plan

At the present market condition of Darwin, it can be assured that our business will gain good place in market and earn remarkable benefits in coming future. As we are working very hard to provide more satisfaction to our customers by setting affordable cost on projects so that it can also be benefited to medium class aboriginal clients. Similarly, we are regularly providing various offers and discounts of our regular customers and helping the students from CDU who are studying Human service course. Overall, our business is going excellent in smooth and efficient way in the market of Darwin and its aboriginal suburbs. Therefore, escaping some issues we can guarantee that our business is being successful.

Timescale of HRP Pvt Ltd.

The planning of the project is supposed to complete in 6 months and it starts providing its service from that point. The timescale of this business firm is presented below:

Overall, we can operate our business from the 6Th months and onward.

Estimated Cost:

As we get loan of $40000 to start this business from CDU, we manage nearly 90% of total loan. The loan had been granted with the rate of 5.50% per annum. We are going to invest almost $35000 out of $40000 and remaining loan will be used for upgrading purpose in future or during crises.

Initially we will depend on the granted loan and the loan will be pivotal for the first 3 to 4 months. After the business starts then there will be less financial problems. Following are the estimated cost of our business firm:

Therefore, the initial expenses will be $10150. Likewise, the actual costs for the business equipment’s and tools will be:

Hence, we got overall estimated cost of ($10150 + $23000 = $33150). Further remaining amount $6850 will be invested in future.

Investment Appraisal

a. Net Present Value:

The Net Present Value (NPV) is presented below in the financial table:

Discount Rate (%) = 7.5%

Therefore, the Net Present Value (NPV) for the business firm will be $42233.77.

b. Return on Investment (ROI):

By overlooking the annual finance, our business earns good economic ratio and maintain the income of the business so that our company could be able to return the investment within 6 years and half year of time.

Return on Investment (ROI)) = ($86011.6 - $43777.83)/ ($ 43777.83)

= 0.9647

= 96.47%

Therefore, from the above calculation we can find that our ROI will be 96.47% after 5 years.

b. Payback Analysis:

From the ROI, we found the initial investment of 6 and half years. Thereafter, the business firm will be running by itself with a certain owner.

Major Risks

It is very common that every business firm will face various challenges and risk and every company are always ready to cope with the possible issues. Likewise, we also should be careful about all the hindrance and be ready to tackle them with backup solutions. Normally, the common upcoming issues are budget deficiency, domination of bigger business, budget crises, lack of proper management, lack of understanding between staff and dispute between customer and company. As we can’t predict the future risk while running the business, so there must be business head person who manages overall projects and analysis the possible risk and take quick actions to solve the problems. Therefore, HRP will be always devoted towards the client’s satisfaction and their issues.

Conclusion

Therefore, HRP will be totally focused towards the development of its business firm. It will provide various services in different areas like human resource management, organizational management, professional development, employee relations, labour relation, sexual harassment and position classification. Not only these areas, it also benefits the aboriginal people of regional place and contribute a lot in the field of education, health and human development activities. Furthermore, it aims to target human service students and provide essential training and certificate. Thus, the key moto of this business firm is to target better customer service and satisfy them fulfilling their needs.

References:

Cieślińska., K. (2007). The basic roles of manager in business organization. Roczniki Akademii Rolniczej w Poznaniu, pp.3-

Human Resources Consulting Business Plan Sample - Executive Summary (2009). Retrieved from: https://www.bplans.com/human_resources_consulting_business_plan/executive_summary_fc.php?=entrepren7.

Klein, P. G., & Cook, M. L. (2006). TW Schultz and the human-capital approach to entrepreneurship. Review of Agricultural Economics, 28(3), 344-350.

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