Week 2 Business Case
Week 2 Business Case
Business Case[1]
Project Name:
1.0 Background and Business Problem |
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The current problem came as a result of poor management of projects. Therefore, a substantial amount of resources were lost in the process. It is estimated that$ 122 million was lost for every $ 1 billion used. The project will assist in reducing the misappropriation of resources in the entity. As a result, all the funds allocated for this project will be used well. It means that the amounts that could be misused can be added to the money earmarked for project two.
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2.0 Strategic Case |
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One of the strategic plans of the organization is to reduce costs while carrying out projects. This venture can assist the organization to save some resources in the future. The firm can use the amount saved to invest in other projects; thus, increasing the company’s chances of growth. The business can use the resources to expand the project in the second year.
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3.0 Project Overview |
| The corporation expects to use $ 3,000,000 in the first year, and the amount is likely to increase in the second year to $3,500,000 in the second year. The cost of training is also expected to be $ 175,000. The assumption is that the venture will lead to a 3% savings in the first year and 4.5% in the second year. The constraints in the project are that the two projects cannot exceed the amount allocated.
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4.0 Expected Benefits |
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The project will have some benefits for the company. One of the values is that it will increase efficiency and effectiveness in the firm. It will also increase transparency and enhance the proper use of resources in the corporation. The venture is expected to be completed within the set budget limits.
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5.0 Financial Considerations |
| Cost-benefit analysis- Year 1 savings
3%*$ 3000,000= 90,000 Year 2 savings 4.5%* 3,500,000=157,500 From the above calculations, it is evident that project one incurs fewer costs. However, a small amount of resources is saved on this venture compared to project 2. Besides, venture 2 requires a higher initial investment amount of $ 3,500,000. Though, the cost savings of this project is also high. Therefore, venture 2 has more benefits. It also has higher cost savings than project 1. Therefore, the benefit of investing in project 2 outweighs its costs. Therefore, I recommend that project two should be implemented based on the analysis.
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6.0 Risks |
| Some of the risks associated with the venture are the chances of disruptions. This might be as a result of poor management or resource constraints. The problems can be corrected by following the project closely. Also, plans should be completed before new ones can commence. It will decrease the resources that could be wasted in uncompleted ventures.
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7.0 Timeline |
| The project time limit is two to three months. However, the longest time that it can take is 90 days. It is time it can take before people start to see positive outcomes. However, the project managers should be careful to ensure it does not exceed the set period.
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8.0 Recommendations and Next Steps |
| This project should follow all the steps of venture management from the beginning to the end. All activities must be monitored to ensure that they are completed well. Additionally, it should be split into phases, and each part should be allocated enough time. The participants should also have better communication channels to ensure all activities go on smoothly. Besides, there should be proper ways of solving conflicts throughout the project duration. Based on this analysis, the project should proceed in phases to ensure that each part is completed before moving to the next step. It will help in eliminating the chances of eliminating confusion in the entire process. The project should be commissioned to attain its final objective.
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*Be sure to remove all instructions before submitting the completed business case.
[1]This document is based on an expanded business case template provided by www.projectmanagementdocs.com.