Business Project Management
Project Scope and Stakeholders
Kingston-Bryce Limited (KBL) is contemplating to acquire a competitor firm that also specializes in the production of custom made furniture. The intended acquisition will take 18 months. The investment will lead to expansion of the business and an increase in the market share. The firm’s stakeholders include the board of directors, employees, suppliers, customers, and the shareholders; the acquisition will affect these parties either directly or indirectly. The project will explain the potential benefits, funding, risks, and opportunities.
Project Benefits
The acquisition of the competitor will provide several potential benefits to the KBL. First, the merger will increase the industry’s growth and expansion, resulting in increased market share. The company will gain a competitive advantage by acquiring the first. Secondly, the acquisition may lead to synergy; the firm will operate better than when each firm is operating individually. Thirdly, the firms will share expertise and technology in the production of much high-quality furniture. Lastly, the acquisition will reduce the operations costs, and as a result, the firm will have a high profitability margin.
Project Milestones
The project will be completed in 18 months. The tasks involved in the project include project initiation, project definition, and planning, project implementation, project evaluation, project monitoring, and project closure. In project initiation, the business case is presented, and the economic feasibility is analyzed. The project will only be initiated if it is financially feasible. In project planning and definition, the objectives of the project are set. The goals should be measurable, realistic, attainable, specific, and realized within a given time frame. In project implementation, the project is launched; in this case, this is the competitor company’s acquisition. In project evaluation, the management reviews the performance of the project. The project should meet the goals of the firm. In project monitoring, the management compares the actual performance with the expected performance and takes the necessary corrective actions in case of significant adverse variances. The project closure marks the end of the project. The timeline is divided into quarters (120 days), which is provided in the following table.
| Project Name | Project Duration | Start Date | End Date | |
| Acquisition Project | 720 days | 1-Nov-20 | 22-Oct-22 | |
| Project Milestone | ||||
| Task ID | Description | Duration (Days) | Start Date | End Date |
| 1 | Initiation | 120 | 1-Nov-20 | 1-Mar-21 |
| 2 | Project Planning | 120 | 1-Mar-21 | 29-Jun-21 |
| 3 | Project Implementation | 120 | 29-Jun-21 | 27-Oct-21 |
| 4 | Project Evaluation | 120 | 27-Oct-21 | 24-Feb-22 |
| 5 | Project Monitoring | 120 | 24-Feb-22 | 24-Jun-22 |
| 6 | Project Closure | 120 | 24-Jun-22 | 22-Oct-22 |
| 720 |
Budget and Funding Schedule
The management has set aside a $5 million budget to be incurred in implementing the project. The budget period has been divided into quarters. The amount to be incurred in each quarter will vary according to the project description and the relevant quarter. The breakdown of the project is provided in the following table.
| Budgeting | |||||||
| Periods | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Total |
| Tasks | $’000′ | $’000′ | $’000′ | $’000′ | $’000′ | $’000′ | $’000′ |
| Initiation | 500 | 500 | |||||
| Project Planning | 400 | 200 | 200 | 200 | 1,000 | ||
| Project Implementation | 1,000 | 1,000 | |||||
| Project Evaluation | 600 | 400 | 1,000 | ||||
| Project Monitoring | 1,000 | 1,000 | |||||
| Project Closure | 500 | 500 | |||||
| Total Budget | 500 | 400 | 1,200 | 800 | 1,600 | 500 | 5,000 |
Risk and Opportunities
There is a risk that the competitor company’s board of directors may reject the proposal of acquisition. KBL will fail to realize expansion and growth. The firm has opportunities for acquiring other companies through a vertical merger to improve its supply chain.
Conclusion
KBL should acquire a Competitor Company for growth and expansion because of several potential benefits. However, there is a risk the company may reject the proposal. The project will take 18 months with a specified milestone for each task.