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Domestic Environment of Delta Airlines
Delta Air Lines, Inc. is commonly known as Delta. It is among
the major airlines of the United States that are operating today.
Delta Airlines operates in the airline industry and it’s
headquartered is in Atlanta, Georgia. The environment of the
US airline industry can be regarded as the domestic
environment of Delta Airlines. However, the existing reports
reveal that Delta Airlines has transformed its business in a
marvelous way. The US airline industry is broad such that more
than one hundred airlines operate therein, and approximately
eleven million flights depart annually. Moreover, Delta Airlines
is a large part of the US Airline industry and it carries the one-
third of the world's air traffic (Swiercz et al 15).
It is also realized that there are various reasons that impact the
business of the Delta Airlines including employees,
profitability, and issues of the aircraft manufacturing industry
(Netessine et al 38). But the point of consideration is that Delta
Airlines has survived throughout history even when the largest
airways were remained failed including, Eastern, TWA, Pan
Am, etc. By the vision of business theorists, Delta Airlines can
be envisioned as the machine bureaucracies.
According to the current data, Delta Airlines is the largest
passenger carrier because the company has overcome all
domestic problems. By analyzing the information about the
Delta Airlines it is realized that the smartest decision made by
the organization is the decision to merge with Northwest
Airlines (Swiercz et al 15). That is why the Delta Airline
competed successfully with the government rules and
regulations and has become the world’s largest airline. The
business theorist added that Delta Airline is highly competitive
and volatile which is generating a high profit, but the current
operating model cannot guarantee future success. Beside the
machine bureaucracy further, handy tools are required to
compete with the domestic challenges and HRM issues.
Netessine, Serguei, and Robert Shumsky. "Introduction to the
theory and practice of yield management." INFORMS
transactions on education 3.1 (2002): 34-44.
Swiercz, Paul Michael, and Barbara A. Spencer. "HRM and
Sustainable Competitive Advantage: Lessons from Delta Air
Lines." Human Resource Planning 15.2 (1992).
Global Environment of Delta Airlines
For Delta, sustainability is meeting the financial goals and
growth of a company including its profitability with time, via
innovative means and business practices which could, in turn,
curtail the environmental impact of Delta operations and foster
the welfare, health, and productivity of the individuals and
communities which are employed to serve. This depicts the
Delta Airline’s commitment to corporate social responsibility.
The most favorable global environment for Delta Airlines is in
Europe particularly the United Kingdom. The characteristics of
the United Kingdom which best aligns with Delta Airlines are
the cultural similarities, language, religion, the technological
innovation and economic status as both countries are developed
(Delta Airlines, n.d.).
All these factors are deemed to have a positive impact on the
growth of Delta Airlines. They could prove to be apt exogenous
factors. Delta Airlines focused on the environmental, social and
governance sustainability. Besides being a plausible location for
Delta Airlines, the United Kingdom also offer some barriers for
Delta Airlines to operate in their country. First and a foremost
barrier to consider is a geographical location. Delta Airlines is
an American airline, they have to establish a business in other
continents which are far away from America. Delta Airlines will
also have to conduct thorough research to fathom the target
market of the host country.
In terms of geography, Delta Airlines will have to pay whatever
it cost to start its operations in the UK which is part of Europe.
However, Delta Airlines could start a joint venture with British
Airways to start its operation in the United Kingdom or they
could collaborate with any other local airline. In addition,
extensive research of the market and population would be
helpful. Here, Delta Airlines could take an outright advantage
of the similarities between them and the host countries. All
these strategies could help to overcome the preceding barriers
(Business in a Global Environment, n.d.).
Business in a Global Environment. (n.d.). Retrieved from
https://saylordotorg.github.io/text_exploring-business-v2.0/s07-
business-in-a-global-environme.html
Delta Airlines. (n.d.). Environmental, Social and Governance
Sustainability. Retrieved from
https://www.delta.com/us/en/about-delta/sustainability
Technological Environment of Delta Airlines
Delta airlines are using innovative technology to bring the
advancements in their services and planes. Both hard and soft
technologies are used by delta for example recently delta
introduced the facial recognition boarding in the newly built
airports, delta has introduced the smartphone service for the
flight attendants and they can use them for better recognition of
their passengers. Small chips are inserted as soft technology and
they are very helpful in recognizing the data. Wireless inflight
entertainment systems are used as hard technology and many
more. Audio and video are provided in the airplanes, passengers
can play apple and iPod music during flight, they can charge
their devices and can run their choice TV. These technologies
are used for both domestic and foreign flights (Delta, 2019).
The company can face technology barriers, in hard technology,
many barriers for example cost of technology, the risk attached
with technology, attaining the best developers, investment
issues, competition domestic and foreign, and the restrictions by
the government to access the modern technologies are very
common and delta faces most of them. The barriers to soft
technologies can be the same because the developers are the
same. In August 2016, delta faced many problems during
winter’s snowstorm and 20,000 flights got canceled.
Technology barriers can affect the company domestically and
foreign both (Schawalder, 2014).
Delta airlines have set up the backup plan for the resuming of
their flights in case of any technical failure. It has created a
cloud-based system which is very effective in terms of lowering
the initial costs and implementation costs (Joseph & Rosenfeld,
2018). In hard technology strategies, delta always focuses on
the older technologies first, developers keep in mind the
problem of previous technologies and how they can cope up
with the next one. In soft technologies, Delta prefers to buy the
off the shelf technology, also they involve more third parties to
prevent any risk factors attached to the implementation of
technologies.
Delta airline should start to increase the foreign flights as
compared to domestic flights because on foreign flights they
will be having more and more room to implement the
technology. Delta should only start thinking about the new
technology if it has sufficient money for investment. In case of
the failure of the technology, delta can face problems because
there will be no backup plan. Delta should hire competent and
expert developers so that there will be no room for mistakes.
Delta. (2019, June 19). Technology. Retrieved from Delta:
https://news.delta.com/tags/technology
Joseph, L., & Rosenfeld, E. (2018, September 25). Delta
resumes operations after a ‘technology issue’ briefly halted
flights. Retrieved from CNBC:
https://www.cnbc.com/2018/09/26/delta-air-lines-issues-ground-
stop-due-to-technology-issue.html
Schawalder, J. (2014). The future of inflight entertainment in
Europe, according to passenger expectations: Why airlines
should embrace consumer technology. Anchor Academic
Publishing (aap_verlag).
Political-Legal Environment of Delta Airlines
Delta Airlines is one of the major airlines in the United States.
It has a wide network in the United States as well as across
Europe. Delta Airlines has been subject to the political and
legal influences which exist both in a domestic and global level.
Delta Airlines like the rest of the airlines in the world is curbed
by the restrictions and regulations pertaining to the tax policy,
international trade, and market competition. It is also affected
by terrorism, war, and diseases. Government actions have
substantially affected the operations of Delta Airlines at the
domestic level. The incident of 9/11 has proved to be ominous
for all airlines across the world including Delta Airlines. Delta
Airlines has repeatedly partnered with a government which
created extraordinary value for them (Fern Fort University,
n.d.). The eased government regulations have made Delta
Airlines expand its operations and boost its revenues. Moreover,
the deregulation of 1978 has found to be baleful for the airline
industry. The laws related to passenger security, environment,
and labor had subdued their earnings (Pratap, 2018).
Delta Airlines has been subject to perpetual obstructions and
barriers in the airline industry. Like other major airlines, Delta
Airline encountered many threats including the increasing fuel
prices in the world market which could potentially curtail its
profitability, the appreciation of the domestic currency which
could affect the prices of the airline making it difficult for the
foreign fliers to use the services. Security is the constant threat
and barrier for the airline to overcome as Delta Airlines has to
remain vigilant and upgrade their security system perpetually by
adopting advanced technology in order to cope with terrorism
(News Hub, 2009).
Delta Airlines also faces limitation in the domestic market
which affects its operations across the world. Some of these
limitations are anti-trust laws against the major airlines in the
country. The rate of technological diffusion is another key
barrier for Delta Airlines. Delta Airlines being a major airline
of a country faces fierce competition, hence US airline
companies want to restrict the competition from the foreign
carriers. Labor cost poses and other critical limitation to Delta
Airlines as it leads to the augmenting labor costs. Moreover,
trade tariffs and trade regulations pertaining to their services,
favored trading partners, tax rates, and pricing regulations by
the government are some of the limitations faced by Delta
Airlines. The business cycle also raises limitation, for instance,
the recession of 2008 hit the American airlines hard (McKenna,
2018).
Fern Fort University. (n.d.). Delta Air Lines, Inc. PESTEL &
Environment Analysis. Retrieved from
http://fernfortuniversity.com/term-papers/pestel/nyse4/2708-
delta-air-lines--inc-.php
McKenna, E. (2018). Delta Airlines: A Strategic Analysis.
Honors Senior Capstone Projects.
News Hub. (2009). Delta: Global Recession, Rising Oil Prices
Forcing Additional Changes to Business. Retrieved from
https://news.delta.com/delta-global-recession-rising-oil-prices-
forcing-additional-changes-business
Pratap, A. (2018). Delta Airlines PESTEL Analysis. Retrieved
from Notesmatic.com: https://notesmatic.com/delta-airlines-
pestelpestle-analysis/
SocioCultural Environment of Delta Airlines
The cluster of countries share the same culture, nationalism,
geography, language, taxes, sometimes currency and many other
social and cultural aspects. The Middle East is one of the main
regions with the largest and most competent airline industry.
Some of the eminent airlines of the Middle East are Qatar
Airways, Emirates Airline, and Saudi Arabian Airlines. Delta
Airlines could work with the world most competent airlines
industry which is in the Middle East. Delta Airlines could
collaborate with EL AL which is world finest airlines with the
impeccable defensive system. They have anti-ballistic missile
technology for defense purposes. EL AL is the first airline
which such defensive technology. Hence, collaboration with the
Middle East would help Delta Airline to add defensive
technology to prevent an incident like 9/11 in the future (Reed,
2014). Moreover, America has a long-standing existence in the
Middle East since 9/11. Thereby, Americans are believed to
have a long-term association with the Middle East.
Domestically American has close similarities with the United
Kingdom and Canada. As they have the same languages and are
close trade partners. Hence, the group of these two countries
could be a plausible cluster choice for domestic collaboration
(Nijkamp & Kourtit, 2014).
Many sociocultural factors can affect the prosperity of the
company and its operations in two different cluster countries.
Some of the key socio-cultural factors are culture, language,
education, religion, customer preferences and attitudes of the
people towards foreign goods and services. Moreover, they have
to deal with the ubiquitous variety of political, legal, economic
and technological factors. Sometimes a cluster of countries have
people with different attitude and beliefs, for instance, the
Muslim countries sometimes do not prefer the goods and
services of European countries due to religious differences.
Moreover, Delta airline could face plenty of issues in Middle
East countries such as differences in taste and food. Muslims
prefer halal food, whereas Delta Airlines being an American
airline does not have any such religious condition (Al-Sayeh,
2014).
Delta Airline merged in the domestic market with Northwest
Airline, this collaboration helped Delta Airline to survive in the
competitive environment whereas Northwest Airlines finished.
Today Delta Airline is relishing high profits. They learned a lot
from there bankruptcies. The cost-cutting was one of the most
beneficial decisions they have made. Some primary factors
behind the failure of Delta Airlines included the global financial
crises of 2008. The cultural misalignment between Northwest
Airline and Delta Airlines led to the failure of both companies.
Al-Sayeh, K. (2014). The Rise of the Emerging Middle East
Carriers: Outlook and Implications for the Global Airline
Industry. Massachusetts Institute of Technology.
Nijkamp, P., & Kourtit, K. (2014). Aviation Clusters: New
Opportunities for Smart Regional Policy. Central European
Conference in Regional Science.
Reed, T. (2014). How Delta Air Lines Mapped A Path To
Success And Followed It. Retrieved from Forbes:
https://www.forbes.com/sites/tedreed/2014/05/10/how-delta-
airlines-mapped-a-path-to-success-and-followed-
it/#24d6bce38b46
Economic Environment of Delta Airlines
According to Rostow the economies of the countries actually go
through the 5 stages of economic growth which include the
traditional society, preconditions to takeoff, takeoff, drive to
maturity and age of high mass consumptions. Delta Airlines is a
significant part of the US airlines industry is relishing a good
economic existence at both domestic and global level. Thereby,
it could be inferred that Delta Airlines is at the fifth stage of
development which is the age of mass consumption. Delta
Airline might have passed the traditional society and takeoff
stages in its early days. It started taking off when its
productivity rises which were indicated by its rising
profitability (Jacobs, 2019). It started relishing a significant
presence in the domestic economy and finally reached the stage
of a drive to maturity. Then Delta Airline starts to diversify its
customer base by expanding its presence in the global market.
They opted innovation and their presence in the countries like
the United Kingdom became invincible. Afterward, they reached
the stage of the age of mass consumption where output grows
drastically and expansion in the consumer base become rapid.
Delta reached the last three stages such as takeoff, drive to
maturity and age of mass consumption. But the initial two
stages are not observed in the case of the airline industry
(Malek, 2005).
On the other hand, we can see an alignment between the
external and internal environment of Delta Airlines and
Galbraith’s concept. Galbraith stated that large enterprises are
characterized by abundant planning and overwhelming
advertising. He also posited the theory of firm stating that the
firm always attempts to maximize their profits. We can see
Delta Airlines constantly striving to enhance their profitability
in the corporate world. They expand their presence across the
borders just for the sake of high profits. Delta Airline’s pursuit
for profitability while fulfilling the corporate social
responsibility is what makes them survive through thick and
thin. The limitation we can observe in Delta Airlines’ way was
corporate social responsibility and changing the economic cycle
(The Library of Economics and Liberty, 1908-2006).
Though Delta Airline managed to survive it encountered many
restrictions in terms of growth and profitability. At many
points, Delta Airline had to work towards its survival rather
than focusing on corporate growth. At some point, Delta Airline
had to focus on maintaining its profitability rather than growing
it to unprecedented levels. This is when Delta Airline
contravened Galbraith’s conviction regarding the firm’s growth
(Thoma, 2006).
Jacobs, J. (2019). Rostow's Stages of Growth Development
Model. Retrieved from ThoughtCo.:
https://www.thoughtco.com/rostows-stages-of-growth-
development-model-1434564
Malek, O. (2005). Development Theory - Rostow.
The Library of Economics and Liberty. (1908-2006). John
Kenneth Galbraith. Retrieved from
https://www.econlib.org/library/Enc/bios/Galbraith.html
Thoma, M. (2006). John Kenneth Galbraith's Contributions to
Economics. Retrieved from Economist's View:
https://economistsview.typepad.com/economistsview/2006/04/jo
hn_kenneth_ga.html
Business Project Proposal
Light up the territory
Minxuan Lin | S311013| Group: Thursday
Contents
Executive summary 2
Overview 2
Purpose & Objectives 2
Measuring success 3
Expected Benefits and Dis-benefits 4
Context and analysis 4
SWOT analysis6
Weighted scoring model 7
Why the project? 8
Benefits and dis-benefits 9
Project requirements 10
Requirements 10
Costs 10
Major risks 12
Major risks 12
Risk management 13
Timescale 14
Time estimation 14
Major milestones 14
Conclusion 15
References 15
Executive summary
This proposal plans to light up dark areas in the Northern
Territory, by introducing advanced road lamp technology to
rural and poorly lit roads in the Territory. The main purpose of
the project is to decrease number of road accidents in the
Territory and avoid potential hazards caused by poorly lit roads.
The new road lamp will be fitted with modern day technology
which will allow it to use clean energy and save power. This
implementation will benefit the lives of residents in the
Territory and the environment in the long run. Overview
Purpose & Objectives
As mentioned in the Executive Summary, the main purpose or
objective of this project is to decrease the number of road
accidents on Territory roads and avoid potential hazards caused
by poorly lit roads. But before starting up the project, there is a
problem that need to be resolved.
Problem – Approval from the Territory Government Department
of Transport
To implement the project, approval or a Development Permit
from the Department of Transport is required, as the project will
conduct work on Territory roads. The Department assesses land
development applications and is responsible for Road Agency
Approvals for all developments impacting Territory road
networks (Transport, 2019).
Scope
There are two main things to include in the scope, clean energy
and power efficiency. As the product also aims to be
environmentally friendly. In the Territory, all street lights are
connected to power plants for their power and use light
detectors for automatic activation. We plan on using individual
street lights which use solar panels to provide and store
electricity. Additionally, a motion detector will be added with
the solar panels to ensure energy efficiency. Normal halogen
lights will also be replaced by LED lights.
This would benefit in:
-Clean energy
-Energy efficiency
-Street light independency
-More visibility
What is expected of this project implementation?
The expected outcome would include:
-Less road accidents involving drivers and pedestrians in the
Territory
-Less power consumption hence less pollution in the long run
-Higher level of security with better illumination
Further development:
-Gather information for other places the new road lamp can be
implemented. Places such as small neighborhoods or other rural
areas.
Observation timeframe:
-Observe number of road accidents as a decrease is expected
Measuring success
There are several ways to measure success if the project was
accepted.
Road accidents: A decrease in numbers of road accidents
occurring in the Territory is expected. To measure the success,
data from the Territory Government Road Toll Statistics will be
analyzed. Which is updated monthly.
Crime rates: A decrease in crime rates is also expected. Better
lighting may increase number of people walking out at night and
it increases people’s sense of security. Crime is also harder to
take place in areas with good lighting.
What are the expected results?
Road accidents
-Number of road accidents to decrease by 75%
Crime rates
-Crime rates decrease by 25%Expected Benefits and Dis-
benefits
Context and analysis
Corporate Social Responsibility is a concept where a company
or industry can benefit society while boosting their own brand
or image (Investopedia, 2019). The organization may want to
raise its profile because it is planning on introducing new
products or services to customer. As higher profile would
translate to more customers and hence profit. Other reasons it
may want to raise its profile include improve public image and
gain social network status.
How would the project align?
Picture retrieved from (NT, 2019)
Road accident is still a high cause of death in the Territory.
Averaging 43 deaths in the past 10 years and still counting as of
until August 2019.
Picture retrieved from (NT, 2019)
Total fatalities: 426, total pedestrian fatalities: 86. (Time frame,
10 years)
Picture retrieved from (NT, 2019)
From statistics, pedestrians make up for 20.1 percent of road
accident fatalities in the past 10 years. Similarly, it is the same
as of August 2019, with 20 fatalities and 4 being pedestrians.
The new road lamp would increase safety for drivers,
pedestrians and riders by providing drivers and riders with more
visibility on the road, thus avoiding accidents with other drivers
and pedestrians. Therefore, with the decrease in numbers of
road accidents in the NT, the company’s profile would rise.
SWOT analysis
Strength
-Environmentally friendly
-Brighter than traditional road lamps
-Uses clean energy
-Energy efficient
Weakness
-Weather
Opportunities
-Promote re-usable clean energy
-Surveillance systems installable
-Public resource sharing (electricity port/USB ports for devices)
Threats
-Vandalism
-Animals
Analysis
The new road lamp has many strengths over traditional road
lamps, such as environmental friendliness and energy
efficiency. But it also has one weakness as opposed to
traditional road lamps, and it is the weather. As the new road
lamp is solar powered and stores energy from the sun, if the
weather was not optimal, the road lamp would not be charged
and functional. Whereas traditional road lamps draw power
from power plants.
For opportunities, the road lamp would promote reusable clean
energy in the Territory. Other components such as a
surveillance system and charging ports can also be installed for
security and public resource sharing purposes.
The only threats to the new road lamp are vandalism and
animals. If vandalized, the aesthetics of the road lamp may be
ruined and even malfunction. Animals such as birds may leave
waste on the solar panel and light detector, making the two
components inept.
Weighted scoring model
Criteria
All scores between 0 and 1
Cost
Value
Risk
Quality
1
0 – 80% of budget
Will be used by more than 40% of the community and valued
highly
Certainty of success
Will meet requirement and satisfy residents
0.55
81 – 101% of budget
Will be used by less than 40% but valued highly
Probably successful
Will meet requirements or satisfy users
0
102% - exceeding budget
Will be used by less than 40% and generally disliked
Certainty of failure
Will not meet requirements and satisfy users
Criteria
Weight
Going ahead with project
Doing no project
Cost
15%
1
1
Strategic value
50%
1
0
Risk
15%
0.55
1
Quality
20%
1
0
Sum
100%
3.55
2
Weighted Project Scores
0.93
0.30
From using weighted scoring, it is observed that going ahead
with the project has a higher weighted score than doing no
project at all. Which suggests that the company should go ahead
with the project as it is of higher priority.
Why the project?
The project idea was developed from road accidents. There are
many road accidents involving deaths of pedestrians, mainly
due to poor visibility on the roads. As pedestrians do not have
reflective clothing or light indications where they are, it is very
hard to spot them at night, until the driver is already too close.
Data from a road toll in 2018, shows that pedestrians are more
likely to be killed in the NT compared to the rest of Australia.
Retrieved from (Smith, 2018)
When a road is poorly lit, it would also be hard for the driver to
see things on the road, giving them less time to react to foreign
objects on roads, causing accidents. The project was developed
in mind of decreasing number of road accidents by providing
drivers with more visibility on the road.
Benefits and dis-benefits
Benefits
As the project aims to give back to the community, there aren’t
many direct benefits. But there would be several indirect
benefits.
1. Raised profile
The company would gain better social net status and publicity
through implementing the project.
2. Profit
With a raised profile and more publicity, the company could
more effectively advertise their products and gain profit.
Dis-benefits
The dis-benefits would be that the road lamps have many smart
and sensitive components, meaning that they will need periodic
maintenance to keep the road lamps functional. The road lamps
may also need repairs in case they break down, meaning the
company may need to pay repair fees for the road lamps to be
repaired.Project requirements
Requirements
Resources:
Cars: For Scouters to get around
Product materials: To build the road lamps
PCs: For researchers to conduct research
Human resources:
Workers: For construction
Scouters: For finding areas fit for implementation
Researchers: For finding areas fit for implementation based on
past road accidents
Assumptions
-Scouter may use their own car, hence the company would only
need to pay for their fuel expenses
-Product materials may use sturdy recycled materials
-Workers are paid, not volunteers
Constraints
Time – The area of implementation, in this case the Territory, is
very large. Meaning scouting for areas fit for implementation
and implementation itself may take a lot of time
Budget – Materials for road lamp and human resources may be
expensive
Costs
Main costs
Road lamp materials:
Component
Cost
Motion sensor
$50 per unit
Light sensor
$20 per unit
Iron
$540 per road lamp
LED
$12.50 per unit
Battery
$3.17 per unit
Solar panel
$79 per unit
Total costs for a single road lamp: $704.67
Human resources:
Worker
Salary
Builders x2
$30 per hour
Scouters x1
$25 per hour
Researchers x1
$20 per hour
Miscellaneous:
Subject
Cost
Fuel x2
$20 per fortnight x2
PC x1
$1000
Overall budget
Subject
Period
total
Human resources
6 months max
$20160
PC
One off payment
$1000
Fuel
6 months max
$240
Overall
$20500
Road lamp x42 max
One off payment
$29500
Total
$50000
Cost analysis
The human resource costs were calculated based on the
assumption that the project would last 6 months, although the
duration may last shorter.
The costs for the road lamp components were calculated using
costs found on the internet, provided by credible suppliers. The
reason the cost of the road lamp was calculated after the other
subjects is that other costs are consistent whereas the road lamp
cost is not. It was also done this way to find out the maximum
number of road lamps the budget will allow.
Major risks
Major risks
1. Financial
As the project is quite large, the needs for road lamps may
increase through time. Leading to over budget.
2. Supply
Some supplies may be supplied from overseas, meaning there
may be extra fees for postage and currency exchange may be
unstable.
3. Time
The expected duration for the project may be longer than
expected as the project aims to cover the whole Territory
4. Quality
The quality of some materials may not be acceptable, as some
materials are supplied from overseas so the quality of the
material can only be determined once it has arrived
5. Repeatability
If a road lamp fails or is destroyed past the project duration, the
company would have to choose to rebuild the road lamp for
extra costs involving human resources and materials, or leave it
as is.
Risk management
1. Financial
To keep project from going over budget, we must pin point
important places to implement the new road lamps
2. Supply
Best to use local suppliers, to cut down on postage fees and
avoid unstable currency exchange
3. Time
To keep the project from going over expected duration,
professionals are recommended for hiring, as they would
complete the tasks faster
4. Quality
Local suppliers are recommended as quality of materials can be
inspected
5. Repeatability
Perhaps hand over the maintenance and repairs for the
Government to handle, or purchase insurance for the road lamps
Timescale
Time estimation
The duration of the project is expected to be 3 – 6 months. To
make sure it does not go over budget or the duration, careful
planning is needed.
Steps
Task
Start date
End date
Period(weeks)
1
Project planning
1/2/2020
15/2/2020
2
2
Prepare resources
16/2/2020
24/2/2020
1
3
Hire human resources
16/2/2020
24/2/2020
1
4
Find location for implementation
25/2/2020
30/8/2020
20
5
Manufacture product
25/2/2020
30/8/2020
20
6
Installation
3/3/2020
30/8/2020
19
Major milestones
There are 4 milestones to this project. Project planning, prepare
resources and hire human resources, find location for
implementation and manufacture products and finally
installation. As shown below, preparing resources and hiring
human resources can only begin after the project planning.
Finding location and manufacturing products cannot commence
until resources and workers has arrived. Then finally
installation which can only begin if some products has been
produced, which a week time has been given.
Steps
Task
Start date
End date
Period(weeks)
1
Project planning
1/2/2020
15/2/2020
2
2
Prepare resources (including human)
16/2/2020
24/2/2020
1
3
Find location for implementation and manufacture products
25/2/2020
30/8/2020
20
4
Installation
3/3/2020
30/8/2020
19Conclusion
In conclusion, the implementation of the new road lamps will
greatly benefit the residents of the Territory by decreasing
number of road accidents. The proposal covers all important
elements for the project such as expected benefits, requirements
and risks. The $50000 budget would be the maximum cost for
the project with possibility of the costs decreasing. The road
lamps can then be transferred to be managed by the
Government, while the company benefits from increased profile
and publicity. Through careful planning and risk management,
the project should not encounter too many issues. Hence this
project would be creating a brighter future for the roads of the
Territory.
References
Investopedia, 2019. Corporate Social Responsibility (CSR).
[Online]
[Accessed 16 August 2019].
NT, R. s., 2019. Lives lost on NT roads. [Online]
Available at: https://roadsafety.nt.gov.au/research-and-
statistics/lives-lost-nt-roads
[Accessed 18 August 2019].
Smith, E., 2018. Pedestrians are seven times more likely to be
killed in the NT — especially those who are Indigenous.
[Online]
Available at: https://www.abc.net.au/news/2018-07-
14/indigenous-pedestrians-hit-by-car-northern-territory-road-
toll/9953652
[Accessed 19 August 2019].
Transport, N. D. O., 2019. DEPARTMENT OF
TRANSPORTDevelopment Guidelines for Northern Territory
Government Controlled Roads. [Online]
Available at:
https://nt.gov.au/__data/assets/pdf_file/0003/165351/developme
nt-guidelines-for-ntg-controlled-roads.pdf
[Accessed 14 August 2019].
Weighted Project Scores Going ahead with project Doing no
project at all 0.93 0.3
Page | 2 Minxuan Lin S311013

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  • 1. Domestic Environment of Delta Airlines Delta Air Lines, Inc. is commonly known as Delta. It is among the major airlines of the United States that are operating today. Delta Airlines operates in the airline industry and it’s headquartered is in Atlanta, Georgia. The environment of the US airline industry can be regarded as the domestic environment of Delta Airlines. However, the existing reports reveal that Delta Airlines has transformed its business in a marvelous way. The US airline industry is broad such that more than one hundred airlines operate therein, and approximately eleven million flights depart annually. Moreover, Delta Airlines is a large part of the US Airline industry and it carries the one- third of the world's air traffic (Swiercz et al 15). It is also realized that there are various reasons that impact the business of the Delta Airlines including employees, profitability, and issues of the aircraft manufacturing industry (Netessine et al 38). But the point of consideration is that Delta Airlines has survived throughout history even when the largest airways were remained failed including, Eastern, TWA, Pan Am, etc. By the vision of business theorists, Delta Airlines can be envisioned as the machine bureaucracies. According to the current data, Delta Airlines is the largest passenger carrier because the company has overcome all domestic problems. By analyzing the information about the Delta Airlines it is realized that the smartest decision made by the organization is the decision to merge with Northwest Airlines (Swiercz et al 15). That is why the Delta Airline competed successfully with the government rules and regulations and has become the world’s largest airline. The business theorist added that Delta Airline is highly competitive and volatile which is generating a high profit, but the current
  • 2. operating model cannot guarantee future success. Beside the machine bureaucracy further, handy tools are required to compete with the domestic challenges and HRM issues. Netessine, Serguei, and Robert Shumsky. "Introduction to the theory and practice of yield management." INFORMS transactions on education 3.1 (2002): 34-44. Swiercz, Paul Michael, and Barbara A. Spencer. "HRM and Sustainable Competitive Advantage: Lessons from Delta Air Lines." Human Resource Planning 15.2 (1992). Global Environment of Delta Airlines For Delta, sustainability is meeting the financial goals and growth of a company including its profitability with time, via innovative means and business practices which could, in turn, curtail the environmental impact of Delta operations and foster the welfare, health, and productivity of the individuals and communities which are employed to serve. This depicts the Delta Airline’s commitment to corporate social responsibility. The most favorable global environment for Delta Airlines is in Europe particularly the United Kingdom. The characteristics of the United Kingdom which best aligns with Delta Airlines are the cultural similarities, language, religion, the technological innovation and economic status as both countries are developed (Delta Airlines, n.d.). All these factors are deemed to have a positive impact on the growth of Delta Airlines. They could prove to be apt exogenous factors. Delta Airlines focused on the environmental, social and governance sustainability. Besides being a plausible location for Delta Airlines, the United Kingdom also offer some barriers for Delta Airlines to operate in their country. First and a foremost barrier to consider is a geographical location. Delta Airlines is an American airline, they have to establish a business in other
  • 3. continents which are far away from America. Delta Airlines will also have to conduct thorough research to fathom the target market of the host country. In terms of geography, Delta Airlines will have to pay whatever it cost to start its operations in the UK which is part of Europe. However, Delta Airlines could start a joint venture with British Airways to start its operation in the United Kingdom or they could collaborate with any other local airline. In addition, extensive research of the market and population would be helpful. Here, Delta Airlines could take an outright advantage of the similarities between them and the host countries. All these strategies could help to overcome the preceding barriers (Business in a Global Environment, n.d.). Business in a Global Environment. (n.d.). Retrieved from https://saylordotorg.github.io/text_exploring-business-v2.0/s07- business-in-a-global-environme.html Delta Airlines. (n.d.). Environmental, Social and Governance Sustainability. Retrieved from https://www.delta.com/us/en/about-delta/sustainability Technological Environment of Delta Airlines Delta airlines are using innovative technology to bring the advancements in their services and planes. Both hard and soft technologies are used by delta for example recently delta introduced the facial recognition boarding in the newly built airports, delta has introduced the smartphone service for the flight attendants and they can use them for better recognition of their passengers. Small chips are inserted as soft technology and they are very helpful in recognizing the data. Wireless inflight entertainment systems are used as hard technology and many more. Audio and video are provided in the airplanes, passengers can play apple and iPod music during flight, they can charge
  • 4. their devices and can run their choice TV. These technologies are used for both domestic and foreign flights (Delta, 2019). The company can face technology barriers, in hard technology, many barriers for example cost of technology, the risk attached with technology, attaining the best developers, investment issues, competition domestic and foreign, and the restrictions by the government to access the modern technologies are very common and delta faces most of them. The barriers to soft technologies can be the same because the developers are the same. In August 2016, delta faced many problems during winter’s snowstorm and 20,000 flights got canceled. Technology barriers can affect the company domestically and foreign both (Schawalder, 2014). Delta airlines have set up the backup plan for the resuming of their flights in case of any technical failure. It has created a cloud-based system which is very effective in terms of lowering the initial costs and implementation costs (Joseph & Rosenfeld, 2018). In hard technology strategies, delta always focuses on the older technologies first, developers keep in mind the problem of previous technologies and how they can cope up with the next one. In soft technologies, Delta prefers to buy the off the shelf technology, also they involve more third parties to prevent any risk factors attached to the implementation of technologies. Delta airline should start to increase the foreign flights as compared to domestic flights because on foreign flights they will be having more and more room to implement the technology. Delta should only start thinking about the new technology if it has sufficient money for investment. In case of the failure of the technology, delta can face problems because there will be no backup plan. Delta should hire competent and expert developers so that there will be no room for mistakes.
  • 5. Delta. (2019, June 19). Technology. Retrieved from Delta: https://news.delta.com/tags/technology Joseph, L., & Rosenfeld, E. (2018, September 25). Delta resumes operations after a ‘technology issue’ briefly halted flights. Retrieved from CNBC: https://www.cnbc.com/2018/09/26/delta-air-lines-issues-ground- stop-due-to-technology-issue.html Schawalder, J. (2014). The future of inflight entertainment in Europe, according to passenger expectations: Why airlines should embrace consumer technology. Anchor Academic Publishing (aap_verlag). Political-Legal Environment of Delta Airlines Delta Airlines is one of the major airlines in the United States. It has a wide network in the United States as well as across Europe. Delta Airlines has been subject to the political and legal influences which exist both in a domestic and global level. Delta Airlines like the rest of the airlines in the world is curbed by the restrictions and regulations pertaining to the tax policy, international trade, and market competition. It is also affected by terrorism, war, and diseases. Government actions have substantially affected the operations of Delta Airlines at the domestic level. The incident of 9/11 has proved to be ominous for all airlines across the world including Delta Airlines. Delta Airlines has repeatedly partnered with a government which created extraordinary value for them (Fern Fort University, n.d.). The eased government regulations have made Delta Airlines expand its operations and boost its revenues. Moreover, the deregulation of 1978 has found to be baleful for the airline industry. The laws related to passenger security, environment, and labor had subdued their earnings (Pratap, 2018). Delta Airlines has been subject to perpetual obstructions and
  • 6. barriers in the airline industry. Like other major airlines, Delta Airline encountered many threats including the increasing fuel prices in the world market which could potentially curtail its profitability, the appreciation of the domestic currency which could affect the prices of the airline making it difficult for the foreign fliers to use the services. Security is the constant threat and barrier for the airline to overcome as Delta Airlines has to remain vigilant and upgrade their security system perpetually by adopting advanced technology in order to cope with terrorism (News Hub, 2009). Delta Airlines also faces limitation in the domestic market which affects its operations across the world. Some of these limitations are anti-trust laws against the major airlines in the country. The rate of technological diffusion is another key barrier for Delta Airlines. Delta Airlines being a major airline of a country faces fierce competition, hence US airline companies want to restrict the competition from the foreign carriers. Labor cost poses and other critical limitation to Delta Airlines as it leads to the augmenting labor costs. Moreover, trade tariffs and trade regulations pertaining to their services, favored trading partners, tax rates, and pricing regulations by the government are some of the limitations faced by Delta Airlines. The business cycle also raises limitation, for instance, the recession of 2008 hit the American airlines hard (McKenna, 2018). Fern Fort University. (n.d.). Delta Air Lines, Inc. PESTEL & Environment Analysis. Retrieved from http://fernfortuniversity.com/term-papers/pestel/nyse4/2708- delta-air-lines--inc-.php McKenna, E. (2018). Delta Airlines: A Strategic Analysis. Honors Senior Capstone Projects. News Hub. (2009). Delta: Global Recession, Rising Oil Prices
  • 7. Forcing Additional Changes to Business. Retrieved from https://news.delta.com/delta-global-recession-rising-oil-prices- forcing-additional-changes-business Pratap, A. (2018). Delta Airlines PESTEL Analysis. Retrieved from Notesmatic.com: https://notesmatic.com/delta-airlines- pestelpestle-analysis/ SocioCultural Environment of Delta Airlines The cluster of countries share the same culture, nationalism, geography, language, taxes, sometimes currency and many other social and cultural aspects. The Middle East is one of the main regions with the largest and most competent airline industry. Some of the eminent airlines of the Middle East are Qatar Airways, Emirates Airline, and Saudi Arabian Airlines. Delta Airlines could work with the world most competent airlines industry which is in the Middle East. Delta Airlines could collaborate with EL AL which is world finest airlines with the impeccable defensive system. They have anti-ballistic missile technology for defense purposes. EL AL is the first airline which such defensive technology. Hence, collaboration with the Middle East would help Delta Airline to add defensive technology to prevent an incident like 9/11 in the future (Reed, 2014). Moreover, America has a long-standing existence in the Middle East since 9/11. Thereby, Americans are believed to have a long-term association with the Middle East. Domestically American has close similarities with the United Kingdom and Canada. As they have the same languages and are close trade partners. Hence, the group of these two countries could be a plausible cluster choice for domestic collaboration (Nijkamp & Kourtit, 2014). Many sociocultural factors can affect the prosperity of the company and its operations in two different cluster countries.
  • 8. Some of the key socio-cultural factors are culture, language, education, religion, customer preferences and attitudes of the people towards foreign goods and services. Moreover, they have to deal with the ubiquitous variety of political, legal, economic and technological factors. Sometimes a cluster of countries have people with different attitude and beliefs, for instance, the Muslim countries sometimes do not prefer the goods and services of European countries due to religious differences. Moreover, Delta airline could face plenty of issues in Middle East countries such as differences in taste and food. Muslims prefer halal food, whereas Delta Airlines being an American airline does not have any such religious condition (Al-Sayeh, 2014). Delta Airline merged in the domestic market with Northwest Airline, this collaboration helped Delta Airline to survive in the competitive environment whereas Northwest Airlines finished. Today Delta Airline is relishing high profits. They learned a lot from there bankruptcies. The cost-cutting was one of the most beneficial decisions they have made. Some primary factors behind the failure of Delta Airlines included the global financial crises of 2008. The cultural misalignment between Northwest Airline and Delta Airlines led to the failure of both companies. Al-Sayeh, K. (2014). The Rise of the Emerging Middle East Carriers: Outlook and Implications for the Global Airline Industry. Massachusetts Institute of Technology. Nijkamp, P., & Kourtit, K. (2014). Aviation Clusters: New Opportunities for Smart Regional Policy. Central European Conference in Regional Science. Reed, T. (2014). How Delta Air Lines Mapped A Path To Success And Followed It. Retrieved from Forbes: https://www.forbes.com/sites/tedreed/2014/05/10/how-delta- airlines-mapped-a-path-to-success-and-followed-
  • 9. it/#24d6bce38b46 Economic Environment of Delta Airlines According to Rostow the economies of the countries actually go through the 5 stages of economic growth which include the traditional society, preconditions to takeoff, takeoff, drive to maturity and age of high mass consumptions. Delta Airlines is a significant part of the US airlines industry is relishing a good economic existence at both domestic and global level. Thereby, it could be inferred that Delta Airlines is at the fifth stage of development which is the age of mass consumption. Delta Airline might have passed the traditional society and takeoff stages in its early days. It started taking off when its productivity rises which were indicated by its rising profitability (Jacobs, 2019). It started relishing a significant presence in the domestic economy and finally reached the stage of a drive to maturity. Then Delta Airline starts to diversify its customer base by expanding its presence in the global market. They opted innovation and their presence in the countries like the United Kingdom became invincible. Afterward, they reached the stage of the age of mass consumption where output grows drastically and expansion in the consumer base become rapid. Delta reached the last three stages such as takeoff, drive to maturity and age of mass consumption. But the initial two stages are not observed in the case of the airline industry (Malek, 2005). On the other hand, we can see an alignment between the external and internal environment of Delta Airlines and Galbraith’s concept. Galbraith stated that large enterprises are characterized by abundant planning and overwhelming advertising. He also posited the theory of firm stating that the firm always attempts to maximize their profits. We can see Delta Airlines constantly striving to enhance their profitability
  • 10. in the corporate world. They expand their presence across the borders just for the sake of high profits. Delta Airline’s pursuit for profitability while fulfilling the corporate social responsibility is what makes them survive through thick and thin. The limitation we can observe in Delta Airlines’ way was corporate social responsibility and changing the economic cycle (The Library of Economics and Liberty, 1908-2006). Though Delta Airline managed to survive it encountered many restrictions in terms of growth and profitability. At many points, Delta Airline had to work towards its survival rather than focusing on corporate growth. At some point, Delta Airline had to focus on maintaining its profitability rather than growing it to unprecedented levels. This is when Delta Airline contravened Galbraith’s conviction regarding the firm’s growth (Thoma, 2006). Jacobs, J. (2019). Rostow's Stages of Growth Development Model. Retrieved from ThoughtCo.: https://www.thoughtco.com/rostows-stages-of-growth- development-model-1434564 Malek, O. (2005). Development Theory - Rostow. The Library of Economics and Liberty. (1908-2006). John Kenneth Galbraith. Retrieved from https://www.econlib.org/library/Enc/bios/Galbraith.html Thoma, M. (2006). John Kenneth Galbraith's Contributions to Economics. Retrieved from Economist's View: https://economistsview.typepad.com/economistsview/2006/04/jo hn_kenneth_ga.html Business Project Proposal
  • 11. Light up the territory Minxuan Lin | S311013| Group: Thursday Contents Executive summary 2 Overview 2 Purpose & Objectives 2 Measuring success 3 Expected Benefits and Dis-benefits 4 Context and analysis 4 SWOT analysis6 Weighted scoring model 7 Why the project? 8 Benefits and dis-benefits 9 Project requirements 10 Requirements 10 Costs 10 Major risks 12 Major risks 12 Risk management 13 Timescale 14 Time estimation 14 Major milestones 14 Conclusion 15 References 15 Executive summary This proposal plans to light up dark areas in the Northern Territory, by introducing advanced road lamp technology to rural and poorly lit roads in the Territory. The main purpose of the project is to decrease number of road accidents in the Territory and avoid potential hazards caused by poorly lit roads.
  • 12. The new road lamp will be fitted with modern day technology which will allow it to use clean energy and save power. This implementation will benefit the lives of residents in the Territory and the environment in the long run. Overview Purpose & Objectives As mentioned in the Executive Summary, the main purpose or objective of this project is to decrease the number of road accidents on Territory roads and avoid potential hazards caused by poorly lit roads. But before starting up the project, there is a problem that need to be resolved. Problem – Approval from the Territory Government Department of Transport To implement the project, approval or a Development Permit from the Department of Transport is required, as the project will conduct work on Territory roads. The Department assesses land development applications and is responsible for Road Agency Approvals for all developments impacting Territory road networks (Transport, 2019). Scope There are two main things to include in the scope, clean energy and power efficiency. As the product also aims to be environmentally friendly. In the Territory, all street lights are connected to power plants for their power and use light detectors for automatic activation. We plan on using individual street lights which use solar panels to provide and store electricity. Additionally, a motion detector will be added with the solar panels to ensure energy efficiency. Normal halogen lights will also be replaced by LED lights. This would benefit in: -Clean energy -Energy efficiency -Street light independency -More visibility What is expected of this project implementation?
  • 13. The expected outcome would include: -Less road accidents involving drivers and pedestrians in the Territory -Less power consumption hence less pollution in the long run -Higher level of security with better illumination Further development: -Gather information for other places the new road lamp can be implemented. Places such as small neighborhoods or other rural areas. Observation timeframe: -Observe number of road accidents as a decrease is expected Measuring success There are several ways to measure success if the project was accepted. Road accidents: A decrease in numbers of road accidents occurring in the Territory is expected. To measure the success, data from the Territory Government Road Toll Statistics will be analyzed. Which is updated monthly. Crime rates: A decrease in crime rates is also expected. Better lighting may increase number of people walking out at night and it increases people’s sense of security. Crime is also harder to take place in areas with good lighting. What are the expected results? Road accidents -Number of road accidents to decrease by 75% Crime rates -Crime rates decrease by 25%Expected Benefits and Dis- benefits Context and analysis Corporate Social Responsibility is a concept where a company or industry can benefit society while boosting their own brand or image (Investopedia, 2019). The organization may want to
  • 14. raise its profile because it is planning on introducing new products or services to customer. As higher profile would translate to more customers and hence profit. Other reasons it may want to raise its profile include improve public image and gain social network status. How would the project align? Picture retrieved from (NT, 2019) Road accident is still a high cause of death in the Territory. Averaging 43 deaths in the past 10 years and still counting as of until August 2019. Picture retrieved from (NT, 2019) Total fatalities: 426, total pedestrian fatalities: 86. (Time frame, 10 years) Picture retrieved from (NT, 2019) From statistics, pedestrians make up for 20.1 percent of road accident fatalities in the past 10 years. Similarly, it is the same as of August 2019, with 20 fatalities and 4 being pedestrians. The new road lamp would increase safety for drivers, pedestrians and riders by providing drivers and riders with more visibility on the road, thus avoiding accidents with other drivers and pedestrians. Therefore, with the decrease in numbers of road accidents in the NT, the company’s profile would rise. SWOT analysis Strength -Environmentally friendly
  • 15. -Brighter than traditional road lamps -Uses clean energy -Energy efficient Weakness -Weather Opportunities -Promote re-usable clean energy -Surveillance systems installable -Public resource sharing (electricity port/USB ports for devices) Threats -Vandalism -Animals Analysis The new road lamp has many strengths over traditional road lamps, such as environmental friendliness and energy efficiency. But it also has one weakness as opposed to traditional road lamps, and it is the weather. As the new road lamp is solar powered and stores energy from the sun, if the weather was not optimal, the road lamp would not be charged and functional. Whereas traditional road lamps draw power from power plants. For opportunities, the road lamp would promote reusable clean energy in the Territory. Other components such as a surveillance system and charging ports can also be installed for security and public resource sharing purposes. The only threats to the new road lamp are vandalism and animals. If vandalized, the aesthetics of the road lamp may be ruined and even malfunction. Animals such as birds may leave waste on the solar panel and light detector, making the two components inept.
  • 16. Weighted scoring model Criteria All scores between 0 and 1 Cost Value Risk Quality 1 0 – 80% of budget Will be used by more than 40% of the community and valued highly Certainty of success Will meet requirement and satisfy residents 0.55 81 – 101% of budget Will be used by less than 40% but valued highly Probably successful Will meet requirements or satisfy users 0 102% - exceeding budget Will be used by less than 40% and generally disliked Certainty of failure Will not meet requirements and satisfy users Criteria Weight
  • 17. Going ahead with project Doing no project Cost 15% 1 1 Strategic value 50% 1 0 Risk 15% 0.55 1 Quality 20% 1 0 Sum 100% 3.55 2 Weighted Project Scores 0.93 0.30 From using weighted scoring, it is observed that going ahead with the project has a higher weighted score than doing no project at all. Which suggests that the company should go ahead with the project as it is of higher priority. Why the project? The project idea was developed from road accidents. There are
  • 18. many road accidents involving deaths of pedestrians, mainly due to poor visibility on the roads. As pedestrians do not have reflective clothing or light indications where they are, it is very hard to spot them at night, until the driver is already too close. Data from a road toll in 2018, shows that pedestrians are more likely to be killed in the NT compared to the rest of Australia. Retrieved from (Smith, 2018) When a road is poorly lit, it would also be hard for the driver to see things on the road, giving them less time to react to foreign objects on roads, causing accidents. The project was developed in mind of decreasing number of road accidents by providing drivers with more visibility on the road. Benefits and dis-benefits Benefits As the project aims to give back to the community, there aren’t many direct benefits. But there would be several indirect benefits. 1. Raised profile The company would gain better social net status and publicity through implementing the project. 2. Profit With a raised profile and more publicity, the company could more effectively advertise their products and gain profit. Dis-benefits The dis-benefits would be that the road lamps have many smart and sensitive components, meaning that they will need periodic maintenance to keep the road lamps functional. The road lamps may also need repairs in case they break down, meaning the company may need to pay repair fees for the road lamps to be repaired.Project requirements Requirements Resources:
  • 19. Cars: For Scouters to get around Product materials: To build the road lamps PCs: For researchers to conduct research Human resources: Workers: For construction Scouters: For finding areas fit for implementation Researchers: For finding areas fit for implementation based on past road accidents Assumptions -Scouter may use their own car, hence the company would only need to pay for their fuel expenses -Product materials may use sturdy recycled materials -Workers are paid, not volunteers Constraints Time – The area of implementation, in this case the Territory, is very large. Meaning scouting for areas fit for implementation and implementation itself may take a lot of time Budget – Materials for road lamp and human resources may be expensive Costs Main costs Road lamp materials: Component Cost Motion sensor $50 per unit Light sensor $20 per unit Iron $540 per road lamp LED $12.50 per unit Battery $3.17 per unit Solar panel
  • 20. $79 per unit Total costs for a single road lamp: $704.67 Human resources: Worker Salary Builders x2 $30 per hour Scouters x1 $25 per hour Researchers x1 $20 per hour Miscellaneous: Subject Cost Fuel x2 $20 per fortnight x2 PC x1 $1000 Overall budget Subject Period total Human resources 6 months max $20160 PC One off payment $1000 Fuel 6 months max $240 Overall
  • 21. $20500 Road lamp x42 max One off payment $29500 Total $50000 Cost analysis The human resource costs were calculated based on the assumption that the project would last 6 months, although the duration may last shorter. The costs for the road lamp components were calculated using costs found on the internet, provided by credible suppliers. The reason the cost of the road lamp was calculated after the other subjects is that other costs are consistent whereas the road lamp cost is not. It was also done this way to find out the maximum number of road lamps the budget will allow. Major risks Major risks
  • 22. 1. Financial As the project is quite large, the needs for road lamps may increase through time. Leading to over budget. 2. Supply Some supplies may be supplied from overseas, meaning there may be extra fees for postage and currency exchange may be unstable. 3. Time The expected duration for the project may be longer than expected as the project aims to cover the whole Territory 4. Quality The quality of some materials may not be acceptable, as some materials are supplied from overseas so the quality of the material can only be determined once it has arrived 5. Repeatability If a road lamp fails or is destroyed past the project duration, the company would have to choose to rebuild the road lamp for extra costs involving human resources and materials, or leave it as is.
  • 23. Risk management 1. Financial To keep project from going over budget, we must pin point important places to implement the new road lamps 2. Supply Best to use local suppliers, to cut down on postage fees and avoid unstable currency exchange 3. Time To keep the project from going over expected duration, professionals are recommended for hiring, as they would complete the tasks faster 4. Quality Local suppliers are recommended as quality of materials can be inspected 5. Repeatability Perhaps hand over the maintenance and repairs for the Government to handle, or purchase insurance for the road lamps
  • 24. Timescale Time estimation The duration of the project is expected to be 3 – 6 months. To make sure it does not go over budget or the duration, careful planning is needed. Steps Task Start date End date Period(weeks) 1 Project planning 1/2/2020 15/2/2020 2 2 Prepare resources 16/2/2020 24/2/2020 1 3 Hire human resources 16/2/2020 24/2/2020 1 4 Find location for implementation
  • 25. 25/2/2020 30/8/2020 20 5 Manufacture product 25/2/2020 30/8/2020 20 6 Installation 3/3/2020 30/8/2020 19 Major milestones There are 4 milestones to this project. Project planning, prepare resources and hire human resources, find location for implementation and manufacture products and finally installation. As shown below, preparing resources and hiring human resources can only begin after the project planning. Finding location and manufacturing products cannot commence until resources and workers has arrived. Then finally installation which can only begin if some products has been produced, which a week time has been given. Steps Task Start date End date Period(weeks) 1 Project planning 1/2/2020 15/2/2020 2
  • 26. 2 Prepare resources (including human) 16/2/2020 24/2/2020 1 3 Find location for implementation and manufacture products 25/2/2020 30/8/2020 20 4 Installation 3/3/2020 30/8/2020 19Conclusion In conclusion, the implementation of the new road lamps will greatly benefit the residents of the Territory by decreasing number of road accidents. The proposal covers all important elements for the project such as expected benefits, requirements and risks. The $50000 budget would be the maximum cost for the project with possibility of the costs decreasing. The road lamps can then be transferred to be managed by the Government, while the company benefits from increased profile and publicity. Through careful planning and risk management, the project should not encounter too many issues. Hence this project would be creating a brighter future for the roads of the Territory. References Investopedia, 2019. Corporate Social Responsibility (CSR). [Online] [Accessed 16 August 2019]. NT, R. s., 2019. Lives lost on NT roads. [Online] Available at: https://roadsafety.nt.gov.au/research-and- statistics/lives-lost-nt-roads [Accessed 18 August 2019]. Smith, E., 2018. Pedestrians are seven times more likely to be
  • 27. killed in the NT — especially those who are Indigenous. [Online] Available at: https://www.abc.net.au/news/2018-07- 14/indigenous-pedestrians-hit-by-car-northern-territory-road- toll/9953652 [Accessed 19 August 2019]. Transport, N. D. O., 2019. DEPARTMENT OF TRANSPORTDevelopment Guidelines for Northern Territory Government Controlled Roads. [Online] Available at: https://nt.gov.au/__data/assets/pdf_file/0003/165351/developme nt-guidelines-for-ntg-controlled-roads.pdf [Accessed 14 August 2019]. Weighted Project Scores Going ahead with project Doing no project at all 0.93 0.3 Page | 2 Minxuan Lin S311013