Applied Business Project

Question: Discuss about the Applied Business Project. Answer: Introduction The Australian economy had been in the midst of its major transformation, during 2014 and 2015, according to the reports of the Australian Government Budget, 2015. Apart from that, the Australian economy had been declining with the reported forecasted, for 13 per cent during 2014 2015 and the decline was expected to be increasing further to the per cent of 20.5, in the following financial year, 2015 2016. A family, consisting of a husband, wife and their four children took the decision to migrate to Australia from New Zealand. The migration has been decided for better standards and living and increasing economic opportunities foreseen in Australia, ascending from an average lifestyle, having an own house, long-term employment in New Zealand. The expected decline in Australian economy was not known by the couple, with increased expectation and focus on the two attractions. The decision needs to re-evaluated and re-considered, having alerted from the decline that is forecasted, officially. The couple needs to explore and examine the economic position of New Zealand and Australia and make valid comparison to reach a valid decision. The New Zealand economy at this point of time, has been recovering from the Christchurch earthquakes and all of its associated adverse effects, among the economic disturbances. These conditions have also impacted the agricultural industry negatively, from drought in New Zealand. However, the New Zealand Government is positive towards its economic growth after validating the statistics, in the year 2014-2015. 2011 2012 2013 Migration from Australia to New Zealand 14,186 14,880 19,549 Migration from New Zealand to Australia 51,054 53,676 39,154 Net Migration -36,868 -38,796 -19,605 Table: Statistics of migration from 2011 to 2013 Source: Statistics New Zealand The above statistics of migration is a clear indication that migrants have been decreasing from New Zealand to Australia. The decrease in the migration is caused from the public perception developed based on this decline in the economy, in Australia. The theory associated with the decision making of the migration, indicates with the argument that the decision of the migration has basically two factors. According to Epstein (2008), these two factors are Herd behaviour or informational cascades and the other is networks that are identified, with the tendency to complement each other. It can be assumed that the young couple has been inclined to the migration, considering several factors (such as Australia known to be land of opportunities, etc.), not just the economic data of Australia, only. When the two factors discussed above are considered, the husband in the family seems to be inclined to the decision, because of the networks that has been associated, who have been dwelling in Australian company for many years. The decision of relocation seems to be influenced by the general public opinion Australia is a land of opportunities in addition to the influence of the networks of associates. The network of associates, who work in the Australian construction industry have been communicating the situation in the right ways, but is specific to the construction industry, as the Australian government benchmark report, had announced 4.65 % rate of annual growth is gained in the construction industry for the year 2014. However, the economic growth or decline has to be considered as an integral picture, which is towards decline, according to the reports shown above. The family had migrated to Australia. The husband Harley, has got an opportunity to enter a partnership business, in the construction industry, which has been successful and going with good profits in Australia. The business success can be judged by both the criteria of financial and non-financial lifestyle. When the financial lifestyle is considered, it is optimal, as the couple purchased an executive home, in a beautiful estate in the Gold Coat, within six months after migrating to Australia and a holiday trip to Tokyo, Japan, where the children have enjoyed in Disneyland. After returning from the holiday tour, the two youngest children were joined the pre-school, which resulted in certain dynamics. It consequently made the wife, Carol-Ann to consider starting up a new business. She started looking for an active support, as she lacks awareness of the process, considerations and requirements to decide upon the suitable business and starting up the same business. Carol-Ann has to be prepared and understand the fact that the starting up any business is not just a one-time event and it needs consistent efforts for consistent success and results. The major factors to consider for the start-up of business are, exploring the appropriate business that suitable for her, choice of structure of the business, financial resources, expenses, location, marketing, quality of product, potential of management, etc. In addition to these factors, the unique situation of Carol-Ann, who is a wife and young mother of four children, her inherent skills, competencies, passions, attributions, etc. do impact the success of the start-up business. The first factor of exploring the right business suitable for her can be fulfilled, by determining the opportunity of business that has to be pursued by Carol-Ann. Objective The final objective of the project proposal is to commencing a start-up business, and running successfully with to reach both the financial and non-financial goals of the business. It includes the following individual objectives to be fulfilled. Exploring and identifying the start-up business that suits the personal responsibilities of her, convenient and suitable for the lifestyle of her and the economic conditions of Australia. Develop a feasibility plan and strategic analysis to identify and choose the right-fit business Develop a business plan to reach expected break-even, at expected duration Develop one-year financial forecast Scope The scope of the project has to fulfil the following measurable objectives. Analysis of economic condition of Australia, to make the decision to proceed or not Assessing personal skills and attributes of Carol-Ann to explore the suitable business for her Analysis of industry / industries considered, to make the decision to proceed or not Identifying the suitable business, based on above analyses for viable and good business Developing feasibility plan, strategic analysis and business model for proposed business to ensure the initial business process Developing the business plan for the selected business to initiate the business Exploring the requirements to ensure that they can be made available Understanding the legal procedures and complexity to ensure that it proceeds smooth Understanding the competition in the chosen industry to decide the scaling of business Understanding and exploring financial capital required, to decide to proceed or not Exploring and identifying the right business partners if needed Stakeholder Analysis Importance For / Against Influence Significant importance Some importance Little or no Importance Unknown Significant importance Some importance Little or no Importance Unknown CEO (Carol) Y For Y Customers Y For Y Competitors Y Against Y Supplier Y Y Government Y For / Against Y Employees Y For Y Family Members (for support) Y Y Public Y Y Ethical Consideration During the project and its complete life, the following ethics are expected to be considered, without fail and proceed formal procedure for the project. Consent of informed and voluntary, for smoother flow of the plan of the project Respect and follow the rights associated with confidentiality and privacy, to respect the other human Minimization of risk, so that the others, stakeholder, would continue to be safe and secure Truthfulness that includes limitation of deception, to ensure that the dignity of self and other stakeholders is well retained Conscious about the social and cultural sensitivity, to retain and respect the culture Avoiding conflict of interest, to the best possible extent Respecting the vulnerability of the stakeholders, for integrity and coordination Respect for property, for best utilization Exploring and retaining business ethics locally, at Queensland Exploring and retaining the business ethics, nationally at Australia Exploring and retaining the business ethics, globally, with humanity, healthy competition, delivery of quality product and service, valuing the efforts of the stakeholders, valuing the financial and non-financial resources Project Plan The project plan is drafted, according to the following Work Breakdown Structure. S.NO. Task Duration In Days 1 Basic and Primary Analysis 4 1.1 Analysing the present and future economic condition of Australia 1 1.2 Assessing the personal skills and attributes 1 1.3 Analysing the industry, considered 1 1.4 Identifying the suitable business 1 2 Developing the strategies 4 2.1 Developing feasibility plan 1 2.2 Developing strategic analysis 1 2.3 Developing Business mode 1 2.4 Developing Business Plan 1 3 Requirements 4.5 3.1 Exploring 1 3.2 Gathering 3 3.3 Planning for usage 0.5 4 Exploring opportunities and threats 2 4.1 Explore Understand legal support and constraints 1 4.2 Explore decide the appropriate business partner 1 5 Initiate the business 1 6 Interview Recruit people 4 7 Explore and finalize the location 3 8 Design and develop the product or service 5 9 Obtaining Legal documentation and licenses 3 10 Arranging the internal furniture 2 11 Marketing 4 11.1 Planning the marketing processes 1.5 11.2 Initiating and enabling the marketing processes 2.5 12 Commencement of the business operations 1 Resources Required The following resources are expected and required. Research personnel for analysis Business Consultants for development of the strategies Human Resources Financial resources Government agencies for legal procedures and documentation Physical Resources, such as furniture, arrangement of facilities Technological resources, such as Computer and internet resources Risk Aanlysis About 88% of new businesses, initiated by either individuals or teams, are independent, according to a comprehensive Australian study (Davidson, et al., 2008). Eventually, it is assumed that the individuals should not start the business creating no risk. Business are not planned and started by the individuals, who are risk averse or unwilling to take the risk, at higher levels. The following risks are to be explored and considered. Risk Cause Effect Control Low Customer Turnover Ineffective Business practices Less profits Develop effective plans Accidents and Injuries Improper and careless managemnet Impact the human and physcial resources Develop the standards for safer environment Non-viable Marketing Procedure Ineffective marketing plans Less profits Develop effective management plans Competitor Encountering problems Countering acts of competitor Unexpected events, less profit Observe competitive behaviour Natural Calamities Global issue Loss of infrastructure Be conscious about weather and insurance Modifying legal procedures Government orders Sudden changes in the procedure Cannot control Loss of physical property Improper handling Less profits Apply insurance Loss of intellectual property Improper handling Less profits Maintain confidentiality Table: Risk Analysis References Australian Government, Benchmark Report. (2015). Retrieved from https://www.austrade.gov.au/.../Australia-Benchmark-Report.pdf.aspx on 18 July 2016. Australian Government, Budget 2015. Mid-Year Economic and Fiscal Outlook (2035-2016). Retrieved from https://www.budget.gov.au/2014-15/content/bp1/download/bp1_bs2.pdf (Pg 2) on 18 July 2016. David I. Cleland, Roland Gareis (2006).Global Project Management Handbook. McGraw-Hill Professional Davidsson, P., Steffens, P., Gordon, S., Reynolds, P. (2008). Anatomy of new business activity in australia: Some early observations from the CAUSEE project. School of Management, Faculty of Business, QUT Epstein, G. S. (2008). Herd and network effects in migration decision-making. Journal of Ethnic and Migration Studies, 34(4), 567-583. L. Harrison, Dennis Lock (2004).Advanced project management: a structured approach. Gower Publishing, Ltd. Joseph Phillips (2003).PMP Project Management Professional Study Guide. McGraw-Hill Professional, 2003. Martin Stevens (2002).Project Management Pathways. 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