Contents
Chapter 1: Introduction
1.1 Research Approach
1.2 Project Analyzed
Chapter 2: Project Scope Management
2.1 Project Lifecycle
.3 Scope Management Process
2.3 Project Scope Management
2.4 Project Management Fundamentals
2.5 Project Justification
2.6 Threats
2.7 Unique Competitive Advantage
Chapter 3: Analysis of the Financial Performance of Project
3.1 NPV Analysis
3.2 Factors affecting the discounting rate of NPV.
3.3 Summary of the findings
4. References
Description
The focus of the plan is to launch new retail outlets in various corners of India under the under the banner of SNB. The venture stands to leverage two key USPs of SNB– the distribution network & brand. SNB is a renowned company with the largest network distribution in home furnishing products. Primarily the focus of this plan is to target the Indian market for the furnishing products. Our research and projections indicate that the product would garner substantial volumes in the retail segment in its first full year of operations. India being a developing country it has ample opportunities and also the people here prefer good quality products with reasonable price. This practice of SNB is the basis of this assumption that the project will be highly successful.
The product offering would be positioned as “something more than just furniture”. It would not be only furniture obtained from the wood or metals. The type of furniture shall be re-invented to produce something different which is environment friendly, easy to move with affordable price.
Due to the uniqueness of the product, effective marketing and distribution networks, this project is expected to generate high revenue. Sales are expected to increase year after year with the increase of awareness regarding the product and its benefits. The Revenue is expected to increase @ 5% p.a. This is a positive sign to start the business. The project involves a phase wise capital outlay of 274.6, 40 and 40 lac AUD in the first three years. We have considered operations over a 10 years period and assume that the assets would be sold at book value at the end of the project life. As per the financial feasibility analysis, @ 15% pa, discounting rate, the project is yielding a Net Present Value of 328.31 hundered ‘000 AUD over a period of 10 years starting FY 11-20 and an Internal Rate of Return of 17.8%. Based on our analysis, the project is recommended as a viable investment strategy.