Applied Science

Kingston-Bryce Business Case 8

Kingston Bryce Business Case

Rawda Ismail

Rasmussen College

Author’s Note

This paper is being submitted on July 10, 2020, for Ashley Cobb Section GEB3422CBE Business Project Management.

Introduction

A business case is created to justify the need for carrying out a project. In this case, the business case will outline the timeline, funding schedule, and the project scope for Kingston-Bryce Limited to acquire one of its competitors (Robinson & Dechant, 2017). The projected should be carried out in 18 months, and it should cost $5 million.

Project Scope

The project scope will be used to show the deliverables that the project should attain. The project scope will be supported by the work break-down schedule, which will indicate all the deliverables that should be achieved and the duration it should take them to be achieved (Khan, 2016). Therefore, all the deliverables in the work break-down schedule should be included in the project scope. The steps that need to be taken during the acquisition will be explained in the project scope. Thus, it will ensure that all the requirements that are needed during the acquisition are carried out.

First, before the competitor's acquisition, research needs to be done to find out why the business is being sold. That will help identify the motives for selling the business and whether they are honest and genuine. When the company acquires the business without conducting research, it may end up suffering losses. For instance, if the business is being sold for lack of profitability and productivity, it may be a bad idea to buy it. After ensuring that the motives for selling the business are pure and genuine, the sales blueprint needs to be evaluated. It will help understand the company and its operations better.

Afterwards, the business should request for an audit of the company. An audit will ensure that the company follows all the financial regulations. It also helps to develop an analysis that will help to understand the company's financials better and with ease. When conducting the audit, the liabilities that the company has should be identified together with their terms. The tax implications of the company should also be identified with all the tax obligations that have not been met yet. That will ensure that the company meets all the necessary tax obligations after acquiring or coming up with an agreement on the best actions to be carried out.

After conducting the audit, the valuation of the business should be carried out. The valuation of the business will help estimate the current value of the whole business. That will influence the cost of acquiring the business. When conducting valuation, the company's assets should be evaluated first. The inventory should also be evaluated. The brand of the company should also be evaluated. After auditing and evaluation, the company should develop a budget on the competitor's acquisition. From the valuation, the company should come up with a favorable budget. The cost-benefit analysis should also be used to identify the value that KBL will reap from buying their competitors.

After formulating the budget, KBL should initiate the legal procedures with the competitors so that they may initiate the acquisition process. All the legal requirements that need to be carried out during the acquisition should be carried out at this stage. After making the legal agreement, KBL may continue with any modifications to improve the business's performance.

After the legal agreement, KBL can evaluate the location of the business and customer demographics. That will give the necessary information to make the business more productive. By understanding the location of the business and the customer demographics, the company can develop effective strategies that will foster the business's productivity and profitability. The Business framework should also be evaluated and analyzed to give insight into the management framework and the organizational structure of the acquired business.

KBL should also take the initiative to learn about supply chain management. That will help them decide whether to change the supply chain. It will also make KBL come up with strategies to optimize supply chain management. At that point, the company should renovate all the systems and assets that need renovation. They should also integrate the modifications in the systems that should be carried out.

The company should then assess the employees. That will determine the employees that should be maintained and those that should be laid off. Additionally, the company should also decide the additional employees that should be employed. The recruitment process should commence immediately. All employees should be trained to increase their skills and knowledge. That will help increase the productivity of the employees. Finally, customer feedback should be collected to identify the areas that need to be corrected.

Funding Schedule

The funding schedule of the project will act as the budget for the project. It will indicate all the costs that will be incurred when acquiring KBL's competitor. The estimated amount that will be used and approved by the board of directors is $5 million. Thus, it needs to be allocated effectively to ensure that there is no extra more money that will be needed.

Funding Activity	Amount to be incurred
Acquisition of the company’s assets	$1.3 million
Acquisition of intellectual property rights	$0.7 million
Brand acquisition	$0.5 million
Acquisition of inventory	$0.5 million
Total Acquisition Costs	$3 million
IT integration	$300,000
Renovation costs	$150,000
Marketing costs	$100,000
Human resource costs	$25,000
Legal costs	$25,000
Employment of new employees and training of employees	$200,000
Total Project Management	$775,000
Property taxes	$200,000
Sales	$175,000
Payroll taxes	$125,000
Total taxes	$500,000
Accounts payable	$150,000
Short term debt	$350,000
Total Liabilities	$500,000
Contingency	$225,000
TOTAL COSTS TO BE INCURRED	$5 million

Timeline for Acquisition

The timeline for acquisition will be used to show the amount of time that will be used for each activity. That will ensure that the project is completed in a timely manner. It will also be used as an evaluation tool during the project’s lifecycle. That is because it will show the management of KBL whether the projects are being carried out as it has been anticipated. The time used to complete each deliverable will be determined by its complexity.

Numbers	Task Name	Start Date	End Date	Duration in days
1	Project conception and initiation	01/04	30/04	30
1.1	Research the seller’s motive to sell the business	01/04	10/04	10
1.2	Evaluate the sales blueprint	10/04	30/04	20
2	Audit	1/05	30/06	61
2.1	Analyze the financial position of the company	1/05	30/06	61
2.2	Understand all the liabilities of the company	15/06	30/06	15
2.3	Understand all the tax implications of the company	15/06	30/06	15
3.0	Evaluation	1/07	31/07	31
3.1	Evaluation of assets	01/07	31/07	31
3.2	Evaluation of inventory level	1/07	31/07	31
3.3	Brand evaluation	1/07	31/07	31
4	Budget formulation	01/08	31/08	31
5	Legal agreement	01/09	30/09	30
6	Business analysis and Evaluation	01/10	31/12	82
6.1	Business framework	01/10	31/11	61
6.2	Evaluation of location and customer demographics	01/11	31/12	61
7	Supply chain optimization	01/01	31/01	31
8	Renovations	01/02	31/04	79
8.1	Structural renovations	01/02	31/04	79
8.2	Modification of systems	01/03	31/04	61
9	Human resource optimization	01/05	31/07	82
9.1	Employees assessment	01/05	31/05	31
9.2	Recruitment of employees	01/06	30/06	30
9.3	Training of employees	01/07	31/07	31
10	Customer feedback	01/08	31/09	61

References

Khan, A. (2016). Project scope management. Cost engineering, 48(6), 12-16.

Robinson, G., & Dechant, K. (2017). Building a business case for diversity. Academy of Management Perspectives, 11(3), 21-31.