1. MBA642 Project Initiation, Planning And Execution
Answer:
Overview Of The Company
Integration management is an essential part of project management which combines all
components of project management. This factor includes stakeholders, resources,
coordinated tasks and all other project elements. The company nominated for which a detail
setup is prepared in this report is CIBO Espresso, a coffee shop based in Adelaide, South
Australia. The company was founded in the year of 2000 (Cibo Espresso 2022). The
company was founded by four people- Angelo lnglese, Claudio Ferraro, Salvatore Pepe and
Roberto Cardone. The company delivers traditional Italian food prepared with local healthy
ingredients but in an Italian atmosphere. Compared to other café chains in Australia, CIBO
Espresso is known for its Remarkable Brand Loyalty. The roles or designation that are
generally performed by the assigned staffs include- team leader, baristas, team members
(Cibo Espresso 2022). The team members are responsible to utilize their previous
experiences and skills to serve their assigned roles. The team leaders are responsible to
utilize heir experiences in hospitality for creating unbelievable employees and customers
experiences. The baristas will prepare amazing food items to attract more customers.
The company also provides online training as well as store training. From this training, the
staffs will be able to get enough information regarding the brand, their operations, facilities,
roles of individuals within the store, cash handling process and OH&S requirements. From
the store training, the staffs will learn how to serve best to their customer. In other words,
the staffs will learn how to make and serve incredible coffee and food items to staffs. The
primary mission of the company is to serve authentic Italian coffee with traditional offers.
All the items are expected to be served within a charming atmosphere. CIBO Espresso offers
is unique Italian style blend, that is crafted from 100% premium Arabic beans (Cibo
Espresso 2022). The beans used for preparing the coffee are specially grown in sustainable
rainforest alliance farms. CIBO espresso prepares real traditional recipes for Italian food
with local ingredients maintaining proper hygiene.
In this new era of technology, most of the businesses are becoming technology driven. CIBO
Espresso also maintains the all safety and security measures. The company maintains all
privacy policy. The company considers all privacy policy very sincerely and focused to keep
2. the trust. It ensures that all personal information is secured from unwanted access. The
company maintains 1988 privacy act. During payment processing the personal information
that are generally collected include name, address, gender, IP address, occupation, details of
debit card and credit cards, contact number, email address, purchase behavior and previous
order information (Cibo Espresso 2020). None of the sensitive personal information are
generally collected by the company. The marketing team promotes their products and
services through online but does not have any web application or mobile app till date. The
people who are excited to purchase the products are always advised to visit the stores
directly because there is no online service available for the store.
In order to gain more commercial benefits and expand the business, the company has
decided to open a new outlet in Perth. The company will enable the company to increase
media attention. Opening new store in always a major event that justifies all media
attention. For building effective relation with the customers and enhance customer buzz
new outlet opening is very beneficial. It also helps to optimize the corporate support. For
attracting new customers new outlet opening is very beneficial (Mainga 2017). It creates
economies of scale and enhances market influence. The new setup plan developed for CIBO
Espresso is supported by a WBS, gantt chart, risk management plan and a schedule
flowchart. The new store opening project will be accomplished followed by 5 stages-
initiation, planning, execution, monitoring and control and project closure.
Work Breakdown Structure
Work Breakdown Structure (WBS) is referred to as one of the most widely used project
management tools. This tool is used to reduce the project complexity or to breakdown a
complex project into smaller parts (Han 2021). It gives the project a simpler form. It allows
the project manager to define the optimized work packages. It gives the project team
members a better understanding opportunity. WBS helps to facilitate better cooperation
and communication among the project team members and project manager. It organizes the
activities following proper sequence (Loucks and Van Beek 2017). In other words, WBS
visually represents the entire project scope. While opening the new store in Perth none of
the goods or serviced will be shared between two locations. Therefore, all the products and
required equipment will be procured directly from the suppliers.
The WBS for the CIBO Espresso is developed in the below section-
WBS
Task Name
3. 0
CIBO Espresso new store project schedule
1
Phase 1-Initiation stage
1.1
Draw up a detail business plan
1.2
Conduct Competitive Market research
1.3
Conduct finance operation
4. 1.4
Selecting the location for the café
1.5
Organizing business license
1.6
Taking permission from local council
1.7
M1- Approval for the project charter
2
5. Phase 2- Project planning stage
2.1
Selecting proper business channel
2.1.1
Selecting the best channel
2.1.2
Define customer experiences
2.4
Procurement plan
2.4.1
7. 2.4.2.1
Milk and water
2.4.2.2
Coffee beans and others
2.2.2.3
M2- Completion of procurement
3
Phase 3- Execution stage
3.1
Develop marketing and promotional strategies
8. 3.2
complete interior of the store
3.3
Appointing staffs
3.4
Installation of all equipment
3.5
M3- Project execution completion
4
9. Phase 4- Monitoring and controlling
4.1
Change management plan
4.2
Market survey
4.3
M4- Make the store ready to launch
5
Stage 5- Project closure
5.1
10. Stakeholder’s signoff
5.2
Resource release
5.3
M5- Continuous improvement plan
Gantt Chart
The project is expected to be accomplished within 86 days followed by 5 development
stages- initiation, planning, execution, monitoring and closure and closure. The main tasks
and the overall schedule are presented in this below section-
WBS
Task Name
Duration
Start
11. Finish
0
CIBO Espresso new store project schedule
86 days
Mon 07/02/22
Mon 06/06/22
1
Phase 1-Initiation stage
33 days
Mon 07/02/22
12. Wed 23/03/22
1.1
Draw up a detail business plan
6 days
Mon 07/02/22
Mon 14/02/22
1.2
Conduct competitive market research
5 days
Tue 15/02/22
Mon 21/02/22
13. 1.3
Conduct finance operation
7 days
Tue 15/02/22
Wed 23/02/22
1.4
Selecting the location for the café
6 days
Thu 24/02/22
Thu 03/03/22
14. 1.5
Organizing business license
8 days
Fri 04/03/22
Tue 15/03/22
1.6
Taking permission from local council
6 days
Wed 16/03/22
Wed 23/03/22
15. 1.7
M1- Approval for the project charter
0 days
Wed 23/03/22
Wed 23/03/22
2
Phase 2- Project planning stage
21 days
Thu 24/03/22
Thu 21/04/22
16. 2.1
Selecting proper business channel
8 days
Thu 24/03/22
Mon 04/04/22
2.1.1
Selecting the best channel
5 days
Thu 24/03/22
Wed 30/03/22
21. Coffee beans and others
2 days
Wed 20/04/22
Thu 21/04/22
2.2.2.3
M2- Completion of procurement
0 days
Thu 21/04/22
Thu 21/04/22
3
Phase 3- Execution stage
22. 14 days
Fri 22/04/22
Wed 11/05/22
3.1
Develop marketing and promotional strategies
3 days
Fri 22/04/22
Tue 26/04/22
3.2
complete interior of the store
23. 5 days
Wed 27/04/22
Tue 03/05/22
3.3
Appointing staffs
5 days
Wed 27/04/22
Tue 03/05/22
3.4
Installation of all equipment
24. 6 days
Wed 04/05/22
Wed 11/05/22
3.5
M3- Project execution completion
0 days
Wed 11/05/22
Wed 11/05/22
4
Phase 4- Monitoring and controlling
25. 13 days
Thu 12/05/22
Mon 30/05/22
4.1
Change management plan
6 days
Thu 12/05/22
Thu 19/05/22
4.2
Market survey
7 days
28. Fri 03/06/22
Mon 06/06/22
5.3
M5- Continuous improvement plan
0 days
Mon 06/06/22
Mon 06/06/22
Scheduling Flowchart
Scheduling is very beneficial to develop and execute any project successfully within specific
period. Scheduling defines the project activities and individual’s responsibilities to be
performed (Fossum et al. 2019). Scheduling flowchart shows the activities and their
connection with other activities. The detail gantt chart is presented in the below section-
Figure 1: Schedule flowchart for the new setup development project
(Source: created by author)
Risk Assessment Matrix
Risk is an unwanted event that commonly occur during the execution of almost every
project. Implementation of a risk-free project is not possible. Managing and analyzing risks
29. is a key practice performed in project management. Risk management plan is an essential
part of project management prepared by project manager (Rianty, Latief and Riantini
2018). This plan should be reviewed after fixed interval to avoid possible risks. For
reducing the possible consequences, each project manager should develop accurate risk
assessment matrix. Risk matrix is a tool used during the project planning stage (Meredith,
Shafer and Mantel Jr 2017). For capturing the likelihood and impact of a risk the matrix
must be developed. The standard Risk Assessment Matrix (RAM), to be considered for this
project is presented in this below section-
Impact
Likelihood/ Probability
Rare (1)
Unlikely (2)
Possible (3)
30. Likely (4)
Most likely (5)
Negligible (1)
Low 1
Low 2
Low 3
Low 4
Medium 5
Minor (2)
Low 2
31. Low 4
Medium 6
Medium 8
High 10
Medium (3)
Low 3
Medium 6
High 9
High 12
Very high 15
Major (4)
32. Low 4
Medium 8
High 12
Very high 16
Very high 20
Catastrophic (5)
Medium 5
High 10
Very high 15
Very high 20
33. Very high 25
A risk matrix is prepared for the CIBO Espresso new store opening project in Perth. In this
matrix some possible risks, their impact on the project development activities, possibilities
of occurrence of the risks and the respective mitigation strategy for each are presented. The
risk matrix for the project presented here-
Risk ID
Risk description
Impact
Likelihood
Score
Mitigation strategy
R1
Theft of physical items- The equipment and products procured for preparing coffee and
other food can be theft from the new store.
Major 4
34. Rare 1
Low 4
The equipment and other product to be procured for the new outlet should be protected
with proper security measures (Borkovskaya 2018).
R2
Data breaches- The degree of e-commerce crime is increasing rapidly. If proper security
measures are not considered accurately then, collected data (personnel and financial) can
be misused
Major 4
Possible 3
High 12
Proper security measures are needed to be included in the system to ensure that all
information is secured from unwanted access.
35. R3
Inventory damage- Both the e-commerce business and physical store can be damaged due
to natural disaster and bad weather events (Demirkesen, and Ozorhon 2017).
Major 4
Unlikely 2
Medium 8
The project manager and contractor should develop some precautionary measures to keep
the site safe from possible damage.
R4
Overrunning project budget- If the project capital is not managed accurately, then the
budget may exceed the preliminary estimation.
Major 4
Rare 1
36. Low 4
In order to avoid overshooting budget, the project manager needs to conduct feasibility
measures
R5
Failing to monitor competitor- Café business is nowadays growing rapidly (Elsye, Latief and
Sagita 2018). In order to rule in the competitive market, it is necessary to monitor the
market minutely.
Catastrophic 5
Unlikely 2
Medium 10
The market analyst needs to analyze the existing market and develop effective strategies to
promote the café services (Papke-Shields and Boyer-Wright 2017).
R6
37. Bad taste of food and coffee- If professional and experienced chef are not appointed then,
the food and coffee will not be appreciated by the customers (Mazzetto 2019).
Major 4
Rare 1
Low 4
Experienced chef and team leader should be appointed.
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