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FINAL PROJECT

PROJECT MANAGEMENT

Submitted

By

ARSLAN SHAUKAT ( MBA-E, 2111058)

SUBMITTED TO: MR. Altaf-Ur-Rehman

NATIONAL COLLEGE OF BUSINESS

ADMINISTRATION & ECONOMICS

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Executive summary:

The plan is to open up a cell phone shop that is going to deal in all kind of cell

phones, new and used, like Nokia, Samsung, Motorola and LG made. The shop also deals

in all their accessories as well like batteries, chargers, and memory cards etc.

Furthermore, in order to attract the customers, the shop also deals in easy loads and

scratch cards.

The location of the shop is wisely selected in the area of Defense Phase V as it is

going to earn the benefits of being the only cell phone shop of the area. The shop solely

enjoys the monopoly, as there are no other shops in the same aspect, and thus the shop

can earn good by setting high prices. The location also provides a huge car parking area

that eases the customers the most. There are several other beneficial aspects of the

location as well that includes the area being densely populated.

The shop uses both above the line and below the line advertising strategies. With

the courtesy of the cable operator, footage is show about the shop opening. Secondly,

stuff like printed shopping bags and key chains etc. are given to the customers. Apart, a

junk ad is also to be distributed by the newspaper hawkers by enclosing it with any

newspaper.

The final goal is to make this business a franchise of some good cell phone dealer

like Mz (Mobile Zone) or United.

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Business Descriptions:

The suitable name for a Cell Phone shop would be THE MOBILE SHOP as it

going to be the only shop in that aspect of the area. Apart, the name being a little

controversial also enables it get some fame for the shop. The location being decided for

this venture is in Defense Phase V as the area is densely populated residentially and as

from the commercial aspect the area is still being developed. Several other offices like

traveling agencies, real estate agencies, banks etc are already operational.

The shop facilitates its customer with all kind of cell phones, new and used, like

Nokia, Samsung, Motorola and LG made. The shop also deals in all their accessories as

well like batteries, chargers, and memory cards etc. Furthermore, in order to attract the

customers, the shop also facilitates with easy loads and scratch cards.

This venture possess a high potential of earning good profits as it is going to

enjoy the monopoly because there are no other shops of the same aspect as this one is

going to be.

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Market:

The shop uses both, above the line and below the line advertising methods. For

above the line, footage is to be shown on cable channels with the courtesy of cable

operator of that area.

Defence Housing Authority

Location: Lahore

Population 50,000

Area 852 acresHouses Built: 13,868 Residential (Covering Phase II & IV)

Courtesy: Wikipedia.

The potential customers of the shop are those who either already have a cell

phone and want any of its accessories or ones who wish to buy one.

The total population of the area is 50k approx. Based on observations the

following assumptions are made:

An average of 1500 people travel through the road on which the shop is located

at. Out of which around 700 makes a stop at the commercial spot, 300 would be attracted

toward this shop.250 think they have the potential to shop and finally about 200 makes a

purchase from the shop.

After every ten minutes a customer is expected, especially after five in the

evening and each customer is to be treated for around four to five minutes. The selling

procedure includes ensuring the customer that the purchase they make for the product

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values and the product works perfectly. After that the customer is fully satisfied, he is

provided with a copy of cash memo receipt.

As mentioned earlier as well, the shop enjoys the monopoly as being the only

shop of its own kind and thus the prices charged from the customers is a little above the

normal markets, like Gulberg, Mall Road etc, rates. In case if the competition arises, the

shop start selling its product with the guarantee of its own name as by the time the

competition arises the shop would be able to gain some goodwill.

Research, Design and Development:

The major research done for this venture was related to the financial aspects and

the location of the shop. These two factors enormously play a vital role for any retailers

business to succeed. A location was to be chosen that ensures a high rate of customers to

hit and get attracted toward the shop, the area should be densely populated and thus this

market is supposed to be one of the busiest markets in the whole major area.

As for the pricing and other aspects of the business are concerned, our own

experience from the shop that we have worked on enables me to get an exposure toward

all the pricing matters, estimating sales, and an overall view about how to manage a

mobile shop.

What we have observed is that an average of 1500 people travel through the road

on which the shop is located at. Out of which around 700 makes a stop at the commercial

spot, 200 would be attracted toward this shop. 250 think they have the potential to shop

and finally about 200 make a purchase from the shop.

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After every ten minutes a customer is expected, especially after five in the

evening and each customer is to be treated for around four to five minutes. The selling

procedure includes ensuring the customer that the purchase they make for the product

values and the product works perfectly. After that the customer is fully satisfied, he is

provided with a copy of cash memo receipt.

Manufacturing:

The shop is located in the heart of the commercial area of Defence Phase V Ext.

Factors that were considered before deciding upon the location were like the nearness to

the suppliers market, highly dense (populated) area, etc.

Following are the advantages of the current location of the shop:

1. Potential of being the only cell phone shop in the whole commercial

area.

2. Nearness to the suppliers market (wholesaler and importers)

3. Densely populated area as majority of the population lives in Villas

& their servants nearby smaller areas. Offices and few shops are on

the developing stage.

4. The location provides a huge car parking area that eases the most to

the people who wish to make a stop at the market.

5. Being one of the posh areas, the general public is quite well off and

shows a Non Bargaining attitude if the prices are tagged on the

products.

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6. The location also avails from the easy accessibility of almost every

sort of transportation say busses, taxi, autos, rent a car etc. along with

the fueling stations as well.

The shop space is of 10 by 30 and a height of 12. The shop is built at a

height of 3 from the ground that simply ensures the eye-catching display level to

the person walking on road. Flooring is already done with shiny marble tiles that

are simply going to set a good impression on who so ever comes in. The shop has

a strong shuttering and structure made of brick walls, and in general the overall

area is secure as well as few money changers surrounds the shop too.

Developing Project Plan:

It includes the WBS of our Project and it also includes the activities &

tasks to be undertaken on the Project. This WBS will help us to assess the

progress of the project.

Work Breakdown Structure (WBS) of Mobile Phone Shop

1. Market Survey

1.1 Area (Commercial)

1.2 Shop Area (Size)

1.3 Convenient to the Supplier Market (Wholesalers/Importers)

2. Resource Allocation

2.1 Self Funding

3. Civil Works

3.1 Bathroom

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3.1.1 Sewerage

3.1.2 Water Supply

3.2 Kitchen

3.2.1 Gas

3.3 Flooring

3.4 Wooden Display Boxes

3.5 Paint

3.6 Electricity Wires & Boxes

3.7 Board

3.7.1 Name Board

3.7.2 Printing

4. Locks

5. Lightening

5.1 Tube Lights

5.2 Frames

5.3 Energy Savers

5.4 Lamps

5.5 Fans

6. Fixtures

6.1 Front Counter

6.1.1 Glass

6.1.2 Wood

6.1.3 Mirror

6.2 Wall Hanging

6.2.1 Glass

6.2.2 Wood

6.3 Grilling

6.3.1 Hooks

7. Furnitures

7.1 Chair Type 1

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7.2 Chair Type 2

7.3 Stools

7.4 Tables

8. Water Dispenser

8.1 Bottles

8.2 Glasses

9. PTCL

9.1 Exchange

9.2 Sets

10. Air Conditioner

10.1 2 Tons (2 units)

10.2 1.5 Tons (3 units)

11. Ad for Salesman

11.1 Newspaper

11.2 Cable T.V

12. Show Case Dummies

12.1 Dummies

12.2 Stands

13. Contracting Suppliers

13.1 Mobiles

13.1.1 Wholesalers (Hafeez Center)

13.2 Mobile Cards & Easy Loads

13.2.1 All Telcos

13.3 Accessories

13.3.1 AMB

13.3.2 First Copy China (Import)

13.4 Civil Work Contractor

13.4.1 Bathroom

13.4.2 Kitchen

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13.4.3 Flooring

13.4.4 Wooden Display Boxes

13.4.5 Paint

13.4.6 Electricity Wires & Boxes

13.5 Electrician

13.5.1 UPS

13.6 Furniture, Lightening & Wood

13.6.1 Int. Light House

13.6.2 Naeem Traders

13.7 AC, Fans, Water Dispenser

13.7.1 Lahore Cooling Point

13.8 Stationary

13.8.1 Feroz Sons

13.9 Security Guards

13.9.1 Sutlaj Securities

13.10 Computers/Laptops

13.10.1 HP

14. Shop Selling Items

14.1 Cell Phones

14.1.1 Nokia

14.1.2 Samsung

14.1.3 Sony Ericson

14.1.4 China Phones

14.2 Charger

14.3 Hands free

14.4 Batteries

14.5 Memory Cards

14.6 Pouches

14.7 Casings

14.8 SW CDs

14.9 Key Pads

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14.10 Fancy Items

14.11 Infrared & Bluetooth Devices

14.12 USB Cables

15. Services

15.1 Easy Loads

15.1.1 All Telcos

15.2 Prepaid Cards

15.3 PTCL Cads

16. Bank Account on Shop Name

16.1 Bank Al Falah

17. Stationary17.1 Pens

17.2 Registers

17.3 Invoice Books

17.4 Staplers

17.5 Visiting Cards

17.6 Stamps/Pads

17.7 Calculators

17.8 Price Tag Machine

18. Security

18.1 Security Guards

18.2 Security Gadgets

19. Computers

19.1 Desktop (2)

19.2 Laptops (2)

19.3 Printers (2)

19.4 Scanners

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Developing Resource & Financial Plan:

The resource plan would be formed now and it will help us to allocate the

resources required to undertake each of the activities & tasks within the project.

Similar to resource plan we have made financial plan that would help us to

identify the quantity of money required for each stage in the project like total cost

of labor, equipment & materials.

It would help us with an understanding of forecast spending vs. actual

spending throughout the project. Below we have mentioned the labor, equipment

and materials and the money required to spend on it.

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Start up capital

Board Name Board 8000

Printing 1000Labor 2000 11000

Locks 450 450

Lightning Tube Lights 195

Frame 450

Energy Saver Lamps 340

Frame 80

Fans 2400

Labor 1000 4465

Fixtures Front Counter

Glass

Wood

MirrorLabor 18000

Wall hanging

Glass

Wood

Labor 12000

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Grilling

Grilling

Hooks

Labor 15000

Furniture Chairs type 1 900

Chairs type 2 600

Stools 750

Table 700 2950

Water Cooler 10000 10000

PTCL 2000 2000

News Paper Ad for salesman 1000 1000

Show Class Dummies Dummies 9000

Stands 1000 10000

Shop Selling Items Cell Phones 150000

Batteries 31500Chargers 15600

Handsfree 9000

Memory Cards 15000

Pouch 1 3000

Pouch 2 2000

Casing 1 3000

Casing 2 2000

Software CDs 1000

Keypads 500

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Fancy Items 1000

Infra red devices 2200

Bluetooth devices 2500

USB Cable/Cords 1800

MP3 6000

MP4 10000

Ez load sim Telenor 4000

Ez load sim Mobilink 4000Ez load sim U-pop 4000

Budget for used cell phones 30000

3 used mobiles for E-load 3000 301100

Bank A/c by shop name 10000 10000

Stationary

Ball Point Pen x 2 10

Sales Registers x 2 90

Stapler x 1 100

One hole punch machine x 1 90

Two hole punch machine x 1 120

Files x 4 60

Cash Memo x 2 100

Price Tag Roll x 2 110Price Tag Machine x 1 650

Calculator x 1 850

Visiting Cards x 1000 400

Rubber Stamps x 2 180

Ink Pad x 1 40 2800

Shop Acquisition Shop 1400000

Estate Agent Commission 6000 1406000

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Transportations Board 1000

Lightning 500

Fixtures 1000

Furniture 1000

Products 1000 4500 1811265

Miscellaneous 13735

TOTAL 1825000

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Management:

We will manage this whole venture because we are capable enough

to perform the core functions as well as able to deal with all the technical aspects

of the management as well. The reason is that we have already worked as a

salesman at a similar shop for one year in order to come up with a business of our

own in the same field. We are going to hire a salesman through a newspaper

advertisement and a servant/helper and a security guard, and also going to work

ourselves as well look after all the areas that need our considerations like making

purchases, clients queries, customers problems etc. throughout the venture the

staff plays a participative role in making major decisions, their opinion will be

asked and considered but we will be making the final decision what we feel like

benefiting in the long run regarding the venture.

Following is the advertisement to be published in newspaper for hiring a

salesman:

A cell phone shop located in Defence Phase V. requires the services of an

energetic salesman possessing a presentable personality. The candidate should

have at least 2 years of working experience in the same field. Preference would be

given to those residing near the area and having their own conveyance. For further

details call Arslan: 0333-1234567

Helper would be hired on reference. As far as security guard is concern, his hiring

would be done through a security service provider on mutually agreed conditions.

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All interviews would be conducted at a simple hotel, and the final candidates

would be directed toward the shop.

Following is supposed to be the ideally expected CVs of the candidates:

Salesman Servant/Helper Security guard

Name ? ? ? ? ? ? ? ? ?

Address Within 5 km square " "

Experience 2years or more NIL 1 year or more

Academics Inter / B.com Max 5th grade Matriculation

Religion Islam " "

Salary Expectations 6000 to 8000 3000 to 5000 6000 to 8000

Timing 1pm to 10 pm " "

Holidays Natural, Sunday, strike " "

Salary Decided 7000 4000 7000

Duties Client dealing Assisting Ensure safety

Developing Risk Plan:

There are several problems that can show up after the launch of the venture.

These might include arising of the competition, customer behavior and latest market

trends or even falling short of finance. What if it is a major flop? Sales projections are not

met. Unexpected costs increase, personal matters like health or family problems, all need

to be considered, and for those reasons following calculations are provided:

Risk Likelihood Consequences Intensity of Risk

Arising of Competition 0.3 0.7 0.21

Customer Behavior 0.2 0.6 0.12

Change in market trend 0.2 0.4 0.08

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Financing Lacks 0.3 0.6 0.18

Sales projections are not met 0.4 0.8 0.32

Being a Flop 0.2 0.9 0.18

Case 1: Arising of the competition.

In case if the competition arises, the shop starts selling all products on guarantee

on the name of the shop. By the time our competitor will form the shop would be able to

earn at least some goodwill. How this guarantee is treated? If the product does not work

properly, the customer is entitled to have a full replacement, after that he is fully satisfied

with the replacement, he is informed that if this replacement does not work, he is not

suppose to get further replacements. Value added gifts like a free casing or handsfree

would be provided with new cell phones.

Case II: Customer Behavior

In case if the customer buying behavior changes, for instance MP3/MP4 players

or any other gadgets like PDAs, the shop start purchasing those item from its next

purchase put those things on main display for sale.

Case III: Change in Market Trend

What if no used mobiles are being sold in the market, just because of the fear of

being a stolen/snatched property? The shop simply stops investing in them and makes no

further purchase. In short, the shop does every thing to coupe with the latest market trend.

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Case IV: Lacks of Finance

What if the actual financing exceeds the budgeted amount? The management has

a reserve of Three Hundred Thousands, kept in form of Prize Bonds, which are supposed

to be enough to deal with any unforeseen financial deficiencies.

Case V: Sales Projections are not met

In case if the sales projections are not met, heavy investment is done on marketing

and advertising campaign. More frequent the footage about the shop is to be shown on

cable channels. More direction boards are positioned and more junk ads are placed in the

newspaper.

Case VI: Being a Flop

No matter how much efforts are put to this venture, if this business does not

operates well with in its first six month, and is supposed to be shut down, an

advertisement in the newspaper is published stating Business for Sale. If that doesnt

work either all products displayed at shop can be sold at 2/3 rd price of the wholesale

market that almost equals the price that the management makes a purchase from the

importers (e.g. rate in wholesale = 35 and rate from importer = 25) thus making a minute

loss on the products. Now either the shop is sold, if it is going in making profit, else the

shop is give on rent. The person who rent is supposed to pay a nine-month security and a

three-month advance payment. The renting rate for the area of a shop like this is

Rs12000/month.the total amount is 144000.the shop is going to cover its cost, but in a

longer run.

Developing Financial Forecasting:

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Financing

Property Value 3000000

Mortgage @ 70% 210000016% annually

Monthly = 1.33 %

Starting amount 2100000

1st month 2127930

2nd month 2156231.469

1st installment 170625

Balance 1985606.469

3rd month 2012015.035

2nd installment 170625

Balance 1841390.035

4th month 1865880.523

3rd installment 170625

Balance 1695255.523

5th month 1717802.421

4th installment 170625

Balance 1547177.421

6th month 1567754.881

5th installment 170625

Balance 1397129.881

7th month 1415711.708

6th installment 170625

Balance 1245086.708

8th month 1261646.361

7th installment 170625

Balance 1091021.361

9th month 1105531.945

8th installment 170625

Balance 934906.9454

10th month 947341.2078

9th installment 170625

Balance 776716.2078

11th month 787046.5333

10th installment 170625

Balance 616421.5333

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12th month 624619.9397

11th installment 170625

Balance 453994.9397

13th month 460033.0724

12th installment 170625Balance 289408.0724

14th month 293257.1998

13th installment 170625

Balance 122632.1998

15th month 124263.208

14th installment * 124263.208

Balance 0

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Shop Operating Expenses

Monthly Daily

Salesman 7000 269.2308

Helper/Servant 4000 153.8462

Self 9000 346.1538

Drawings 45000 1730.769

Telephone 1300 50

Electricity 1300 50

Water Cann 2600 100

Security Guard 7000 270

Advertising on Cable (footage) 3000 115.3846

Miscellaneous 3800 146.1538

TOTAL 84000 3230.769Around 3230

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Sales Projection

Following data is anticipated on the basis of observations

Item # Of Customers Cost @ Total Cost Selling Price @ Total Sale

Cellphones 5 Avg 5000 25000 5300

Batteries 6 90 540 200

Chargers 15 30 450 100

Handsfree/ Earphones 8 30 240 120

Memory Cards 2 avg 500 1000 750

Pouch1 9 10 90 35

Pouch2 6 35 210 250

Casing1 12 30 360 80

Casing2 6 40 240 250

Software CDs 3 20 60 105

USB Cables/ Cords 1 45 45 220

Keypads 1 10 10 20

Fancy Items 1 100 100 250

Infra red devices 1 220 220 550

Blue tooth devices 1 250 250 550

MP3 Players 1 1500 1500 2000

Mp4 Players 3 2000 6000 2800

Used Mobiles 6 avg 3500 21000 4000

Ez loads

Telenor 12 avg 500 500 520

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Mobilink 20 avg 1000 1000 1040

Ufone 12 avg 500 500 520

Scratch Cards

telenor 12 avg 2000 2000 2060

mobilink 18 avg 2500 2500 2575

ufone 12 avg 2000 2000 2060

warid 27 avg 3500 3500 3605

Total # of Customers 200

TOTAL COST TOTAL SALE

69315

Estimation: 70,000

Total Profit 15,000

Working 26 days a month

Material Acquisition Cost

Transport 500

Damages 1200

Replacements 500Obsolesces 800 3000

Shop Operating Expenses

3250 3250

Total Operating Expenses

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NET PROFIT/ day

Total Profit - Total Operating Expenses

Monthly Profit 227500

0.75 170625For Monthly Bank P

0.25 56875For Shop Up grada

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Contract Suppliers:

For the initial maintenance of the shop, accessories, fixtures, lightening, furniture,

shop selling items, services, security, stationary & electronic items we have contracted

suppliers and the details has been given in WBS.

Perform Phase Review:

Now at the end we will be going to perform phase review to ensure that our

project went according to that planning

Conclusion:

In my opinion this venture is going to be a major success, the location of the shop

makes it win over the competitive edge, high customer strike rate, nearness to market,

and the prices being offered from the importers give an additional boost to earn good

profits.