SB is a worldwide organization MSc Management with Streams real-life simulation of a United Nations

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BPP Coursework Cover Sheet
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MSc Management with Streams
Module name
  Business Project and Programme Management
Schedule Term
  Summer 2020
Student Reference Number (SRN)
Report/Assignment Title
  Consultancy Report
Date ofSubmission   (Please attach the confirmation ofany extensionreceived)
  Declaration of Original Work:   I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is my original work, researched, undertaken, completed and submitted in accordance with the requirements of BPP Business School. The word count, excluding contents table, bibliography and appendices, is 4250 words. Student Reference Number: BP0230103  Date :24/08/2020
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SB is a worldwide organization that is enthusiastic about growing its business lines by extending its product offerings and presenting new items in the market. Notwithstanding its eminent equipment segments, as of late, the organization needs to create bespoke programming of high an incentive for growing its client base yet as of now, the organization isn’t able enough to accomplish this target. Thusly, absence of competency is a prevention in accomplishing it’s as of late set destinations.
This report focuses on the strategic analysis of the SB technologies. The report covers the important factors of analysis such as business case management, programme scope and deliverables,   estimating and scheduling, risk and issues management,Programme management organization, governance and stakeholders, programme control, contracting and supplier management of the company. The report also focuses on different project frameworks and there importance.

Table of Contents
BPP Coursework Cover Sheet. 1
PART A.. 4
PART B.. 13
Project management frameworks: 13
Why are these frames relevant?. 14
Recommendations. 15
References. 16
The key Business Case issues in SB:
Lack of competency in achieving newly developed objectives: SB being a global company is very keen on expanding its business lines by expanding its product lines and introducing new products in the market. In addition to its renowned hardware components, recently, the company wants to develop bespoke software of high value for expanding its customer base but currently, the company is not competent enough to achieve this objective. Therefore, lack of competency is a hindrance in achieving its recently set objectives.
Outsourcing problems: The company majorly depends on outsourcing for its major products due to various underlying reasons such as a comparatively lower cost of labor in the countries that it is outsourcing from. But with benefits such as cost reduction, outsourcing also comes with a few key business issues, majors of which are quality related problems. Also, outsourcing contracts are constructed for a limited time period. After the expiry of such time frames, the contract comes to an end. This creates halts in the continuous outsourcing activities.
Functional structure: The given organization is structured according to the functions it performs. This type of organizational structure is suitable when the employees need to be differentiated based on the particular tasks they perform. But in the case of SB where there are various product lines, namely, hardware, software and mobile systems so the functional structure may not be the ideal structure. Rather, divisional structure should be considered for optimum allocation of resources according to various divisions.
Limited timescale: The organization plans to bring up the strategic improvement by achieving the targets within a fixed timespan of two years, which is a short time period to bring big strategic changes.
Issues related to Manufacturing locations:
Initially, the organization was engaged in outsourcing the production from Far east regions due to lower cost of labor. But problems in quality made it consider a change in its strategy. So, a few manufacturing sites were now set up in developed countries including the USA, UK and Europe. This led to the improvement in quality level but raised the input costs to some extent due to high labor costs in these developed countries. Also, when SB acquired the WN for mobile systems, the manufacturing location was shifted from the WN’s home country to outsourcing locations of SB such as far east regions and the USA. This shift in the prime manufacturing locations led to loss of employment in the home country and deteriorated its reputation consequently.
The key problems related to manufacturing locations should be solved by reserving certain jobs in the home country of WN to prevent loss of jobs and loss of reputation of the company. Also, the objectives should be fixed in consideration to the current competency of the organisation. Objectives should be realistic and practically achievable in the given time period. Quality related to outsourcing can be solved by due mention of quality standards in the outsourcing contracts there and then. A strict check and follow up should be done to ensure adherence to quality benchmarks.
Another major observation made in the given case of SB is regarding the negligence of
corporate social responsibility. No organisation can be successful in the long run if it
does not discharge its societal responsibilities by making efforts towards the upliftment
of society or the environment in whichever way possible. SB is unknowingly moving
against their societal responsibilities by acquiring WN but outsourcing its production to far
east countries and other developed economies which is resulting in loss of employment
to numerous workers in the home country of WN. Such kinds of practices directly affect
the brand reputation and shake the consumer faith. So, one of the most important
recommendations for SB for witnessing improvement in business management is
efficient accomplishment of societal objectives by indulging in various activities such as
creation of employment opportunities, volunteering, charity, environmental concerns,
etc. which helps the society in some way.(Tilt, 2016)
Scope is a collective term that represents all the work to be done (Monappa, 2020)and the deliverables are the desired set of outcomes associated with the target programme that we strive to achieve. (How to Create Effective Project Deliverables, 2015)The recent programme of SB is to develop a high value software development centre to expand its customer base and the expected outcomes include improvement in overall performance level.
Analysis of the Product Development project;
The project related to the development of new software by SB is a big target to be achieved within a time period of two years. For accomplishment of this objective, the organization needs to work on improving portfolio management as well to gather the required funds and maintain regular supervision. This new software development center called the “Centre of Excellence” is desired to potentially showcase expertise in Western Europe. The programme is in its foundation stage as the decisions regarding the location of the building and arrangement of funds for construction are yet to be finalized by some consultancy. Construction of this center is indeed a profitable strategic plan as this will expand the target market from mere hardware market. Fixation of the time period in which the center has to be constructed is also a positive attribute to prevent any unnecessary delay. But the additional factors such as cost of construction and location of the center can majorly affect the deliverables of the project. Proper consideration regarding fixed and working capital should be thoroughly analyzed beforehand.
Estimation and scheduling of the new projects such as development of new software and the new software development center is very important. Estimation refers to the expected duration of the project or the activity and scheduling refers to the practice of fixing dates and times of start points and end points of the project with proper details regarding the allotment of time frames for specific tasks. These estimating and scheduling activities are unique for every project which is highlighted below:
For acquisition of WN: under this project, the organization plans to efficiently acquire WN for the expansion into the production of mobile phones that it manufactures in its home country. Besides its core reason of mobile phone production behind the acquisition, this acquisition will also provide an additional market share for its hardware components and software. This project is estimated to take around an year in completing all the formal tasks. It is scheduled in a proper series of events including selection of resources, minimization of disruptions, selecting outsourcing locations, identifying major competencies and determination of potential synergies.
For new product development: Since software development has always been a challenge to SB, its new programme specifically aims at improvement in this field. The organization aims to develop high quality software for both the mobile phones and tablet computers. This project is estimated to take a long time in successful implementation due to major decision making responsibilities regarding delivery of the product, cost effectiveness, relationships with development groups, introduction of Agile methodology and much more. The organization is also considering outsourcing as an effective alternative to home production.
For product development center: The organization is planning to construct a new center for software development to improve its software development mechanisms. This project is estimated to be completed within the duration of two years and it is scheduled in a series of events including finalization of construction location, design of the building of the center, arrangement of funds and the cost of construction of the Centre.
Efficient estimation and scheduling activities are of great benefit to the organisation like SB. This will help the organisation to avoid any overlapping of the programs. Next programme will be scheduled to begin only after the previous project has been successfully completed with the required levels of quality. This function also helps in catering to the doubts in the minds of managers handling the project one by one and 5
accommodating the external changes which are respective to that project. Also, simultaneous operations of various projects may lead to chaos, miscommunication and decrease in the level of quality.(Duggan, 2018)
Potential key risks and mitigation steps:
The company being exclusively dependent on technology for all of its products is at vast risks associated with the technology, some of which are listed below:
Dynamic market: All the organizations which are directly or indirectly related or dependent on technology are always at full exposure to a dynamic market. The technology is considered to be the fastest changing thing in the world so the market for technology related products always keeps changing, which is why it is called dynamic. Also, all the products of SB including hardware components, software, mobile phones, everything is dependent on the technology and they are subject to changes with the technological advancements. This fact results in exposure to potential risk towards uncertainty of the target market. This risk can be mitigated by staying up to date with the most recent advancements in the technology linked to the products that it produces. Also, the most recent updates should be informed to the outsourcing destinations as well.  (Fairfield, 2016)
Quick technological advancements: As the technology is always subject to evolution, the products of SB are also subject to the advancements. When new mobile phone technology enters the market, the market demand for the previous ones steeply falls. This risk of sudden sharp reduction in market demand can be mitigated by working towards a strong and loyal customer base that provides a ready market for the products as and when they are introduced into the market by the organization.
Risk of obsolescence: There is always a risk of obsolescence in the products of this organization due to outdatingupdating of technology used in manufacturing of these projects. This obsolescence can cause huge loss both in terms of inventory and money. So, to minimize this loss due to obsolescence, the supply should always be regulated according to the prevailing market demand to reduce the burden of unsold inventory in case of such a situation. (Povolny, 2015)
Change in consumer preferences: The consumer preferences may change with change in market trends and change in technology. To minimize this risk of reduction in demand due to change in consumer preferences, the organization should make regular analysis of the prevailing market trends and study the needs and demands of their actual and potential customers by various methods such as collecting feedback, analysis of consumer behavior and other methods. This will help the organization in developing new products in accordance with what consumers prefer or demand.
Entry of new competitors in the industry: SB being a firm of the information technology industry with great future scope always attracts new players into this industry. So, this exposes the company to a risk of decline in market share or profit share due to these new players. In order to continue earning the regular profits or striving to achieve above normal profits even in times of new entries in the industry, the organization needs to build a strong brand value and a loyal customer base to reserve their share of the profits in all scenarios. Also, the pricing strategies should be amended in such a way to maintain the competitive edge over both old and new firms selling similar products.
Higher cost of product expansion strategies: Introduction of new products or expansion of new product lines sometimes cost an arm and a leg to the organizations. Especially the firms like SB which majorly depend on outsourcing for the production of their existing products including hardware components and software are most likely to be less competent in producing new products as well. As the organization is planning to develop the new quality software, the cost of this introduction may be higher than expected. This risk can be minimized by slightly reducing the dependency on outsourcing and the organization must have a small manufacturing unit in the home country to be self-reliantup to some extent. If the organization still prefers to outsource, the contracts should be of longer duration and subject to accommodation of newly introduced products as well.
Lack of flexibility towards adaptation to new changes: These technology related organizations should be designed in such a way so that they are flexible to accommodate new changes and advancements as and when the need arises. To minimize this lack of flexibility, employees should be efficiently trained so that they do not resist any changes.
Overall Risk management strategy:
Risk management strategy is a comprehensive term that includes all the steps from proper prediction of risk, identification of risk, analysis of levels of risks, derivation of strategies to resolve that risk to the last step of following up. This integrated strategy regarding management of uncertainties and risks should be developed and implemented efficiently. The organization should hire expert risk managers for devising these strategies and proper forecasting mechanisms should be installed in order to detect and prevent uncertainties. Prudence principle should also be diligently adopted. (Rahmani, 2018) An ideal comprehensive risk management strategy eliminates guesswork and decisions can be made based on factual information and evidence by adequate research.
Recommendations regarding organisation structure according to existing structures and challenges:
The organization is currently following the functional structure of the organization. This type of organizational structure aims at dividing the workforce of the organization into different groups based on the specific tasks they perform and the duties and responsibilities they have. But this kind of organizational structure is usually suitable to those organizations which sell only one kind of products or work in the niche of a single product line. So, this structure was initially suitable when SB sold only hardware components but now as it is expanding its business by diversifying into producing software, mobile systems and even acquiring a mobile phone company WN, the organization should slightly mound its organizational structure and consider the adoption of divisional structure of organization. This structure emphasizes on dividing the organization into various departments based on the product line divisions. In simple words, the organization should divide its employees according to various products it deals with. (Fairfield, 2016)
Such as there should be separate division of hardware components and separate division for software. Similarly, if it successfully acquires WN and starts producing mobile phones as well, the organization should create a separate division for that as well. Such a structure will prevent chaos and duplication of work. Also, it gives a chance to hire experts and specialists respective to the specific division for specific skills instead of hiring individuals with general skills. Divisional structure offers great room for flexibility as it gives a chance to adapt new strategies in a single division without impacting the rest of the divisions. On the contrary, in case of functional structure, any major strategic change impacts the whole operation because they are linked to each other. Also, divisional structure helps in optimally responding to the market changes and updating trends. A change in market trend may not affect all the divisions of all the companies. In that case, the organisation can adapt or respond to that change by altering only the related division which is most likely to get affected by that change instead of altering the whole operational setup. (Rappa, 2019)
The views of stakeholders in respect of the outsourced Manufacturing:
The major stakeholders of the organization are mostly in favor of outsourcing the manufacturing functions. The major reason for this preference by the Chief Financial officer of the organization regarding outsourcing is the lower input costs because the cost of labor is usually lower in the outsourcing locations in the far east. But when these outsourcing locations led to issues in quality of the products, the CFO encouraged shifting manufacturing functions to developed countries like the UK and the USA to adhere to the quality standards. The internal stakeholders are also considering outsourcing for production of mobile phones after acquisition of WN. There will be problems in outsourcing in case there is lack of coordination with those locations. So, they should be properly integrated by establishment if efficient communication channels for smooth operations.
Programme Control methods for managing the transformation
Programme control refers to the practice of making decisions and organizing the activities in a definite manner that best suits the target programme. These methods are usually derived after due analysis of the existing performance levels related to that programme. After careful analysis, the required modifications are made in the input attributes to minimize the deviations from the objectives in future.(Nielsen) The organization should opt for following programme control methods in order to get optimum outcomes:
Procedure: In order to successfully transform the operational activities, the organization should lay down a proper procedure which means a specific series of steps to be performed in chronological order to accomplish the target efficiently. This is a great method to control the whole programme by dividing it in simple steps.
Checks and audits: It is very necessary to perform regular checks and audits on the programme so as to detect any fraudulent practices by the insiders. This also eliminates any scope of manipulation in the financial figures and ensures a true, fair and transparent picture of the programme. (Mohd-Sanusi, 2014)
Reports: Regular reports should be filed and they should also be stored for future reference. They should not be discarded by considering them historical data. Rather, all the reports prove to be of great help in identifying the areas of improvement in the future.
Performance management: Performance should not only be measured only at the end of the programme. Rather there should be continuous performance management mechanism implementation by experts and supervisors. Actual performance should be evaluated and then compared with the desired performance level so as to identify the deviations from the target. Once the deviations are clear, the program managers can work on rectifying them to bring them close to the desired objective. Thus, continuous and efficient performance management is very essential for effective programme control.
Financial control: Finances should be handled by experts in a transparent manner. Any sort of manipulation or abrupt rounding off should not be encouraged in any way. Financial statements should be constructed in time and analyzed with due care and skill. Proper budgeting prior to the implementation and initiation of the programme is must for optimum allocation of funds and arrangement of additional finances if at all required.
Forecasting: various forecasting techniques including demand forecasting techniques should be implemented to minimize any uncertainties and risks. Forecasting is required for preparation and anticipation of losses, risks and uncertainties. SB should follow these techniques on a continuous basis, not occasionally.
Alternatives for procuring, supplier selection and contracting
For its latest project of construction of a software development Centre, the organization should engage in consideration of all alternatives of procurement before actually selecting one of them. Similarly, while selecting the suppliers, careful comparison should be done before finalizing the contract. Following factors should be considered:
Cost comparison: Cost benefit analysis of all the alternatives should be undertaken in order to minimize the chances of ineffective or wrong decision making. Construction of such a Centre is a big project so procurement sources and suppliers need to be selected diligently.
Locational factors: The resources should be procured in accordance with the location of the Centre in order to avoid any overhead expenses such as cost of transportation. Suppliers should be skillful and should have locational knowledge as well.
Input selection: Selection of the quantity and quality of inputs is a major decision. There are options of contracts where the supplier himself offers to provide the material and includes the cost of materials in its contractual price. There are options of separate contracts as well which increase the headache of selection and assessment of quality of the materials.
Communication of the requirements: Any ambiguity in communication with the contractor may result in faulty results so before finalizing the contract, we must ensure that the contractor is open to effective communications and suggestions. Also, ideal contracting is done both ways, which means he should also point out where our plans are lacking in order to optimally use the ideas of both parties.
Tenure of contract: The tenure of contract should be long enough to contain both the ends from initiation to completion of the project. For example, in the given case, the project is estimated to be completed in a tenure of two years so the contract with the construction contractor should not be less than two years to prevent any chaos and unnecessary increase in costs.
Project management frameworks:
1.Work breakdown structure: This technique is abbreviated to WBS which is a popular project management technique. The organization should adopt this technique in order to aim at producing the desired deliverables. Whole approach is focused on the deliverables itself. So according to me, this technique suits this organization as it is planning to bring strategic transformations to capture a larger market share. Under this technique, the workers are divided into manageable sizes of groups which are differentiated according to their allocated tasks.(Monappa, 2020)
The major benefits of this project management technique include clearly defined tasks to be done during a specific programme. This breakdown helps in allocating the tasks and divides the amount of effort required to be put in. In this way, it decreases any chances of delay and optimises the performance by eliminating duplication issues. This technique also helps to undertake a detailed study of all the potential risks that may occur in the course of the project. This enlarges the scope of risk management and taking preventive actions. Even if any uncertainty occurs, breakdown of the tasks into smaller bits will help us identify the source of the issue so that Write my essay on the root cause of that problem. Therefore, problem identification as well as rectifications becomes efficient besides risk prevention in the first place.(6 Benefits Of Using WBS Project Management, 2014)
2. PERT: This expands to program evaluation review technique. This method is used to examine the programme throughout all its steps. It also analyzes the duration of time required for completion of each step to prevent any delay in completion of the programme. So, this method should be adopted by this organization to complete the targeted projects in the stipulated time frames. (Nordmeyar, 2017)
This technique focuses on both quantitative information as well qualitative information equally so as to prevent any loopholes or any cases of missing information or partial information. This characteristic of this project management technique hence eases the decision-making processes throughout the working course of the project. Decisions can be made better with more logic and supported by the evidence of actual data. This technique also helps in better and effective communication through the organisation which enhances the overall performance level by ensuring coordination between all the departments working for the success of that project.(Berg, 2020)
Why are these frames relevant?
The above-mentioned techniques are suitable for this organization in the following ways:
Breaking down a project into smaller tasks: The organizations like SB which aim for big projects like acquisition of an established mobile company and construction of software development Centre, they should break the whole project or programme into smaller tasks which can easily be allocated to the individuals specialize in those tasks. This makes it easier to supervise as well as to track the completion of the project.
Completion of tasks within time: These techniques like PERT emphasize on completion of activities within a specific period of time so as to prevent any delay in producing the desired outcomes.
Division of labor: The work can be divided into expert individuals under work breakdown structure so they exhibit specialized skills in the respective tasks. This makes the performance more effective and efficient.
Continuous Evaluation of performance: Under these techniques, the performance and the level of efficiency is continuously evaluated. The actual levels of performance are compared to the objective and target levels of activity so as to figure out the areas with deviations. This provides a room to the managers to improve those areas with deviations and achieve the target performance level.
Better decision making and communication: These techniques gather and analyse actual data which improves the quality of decisions made and provides mechanisms for better communication within various departments of that programme.
In order to successfully complete all the projects and programmes, the organization should hire experts and do proper division of labor among them. The leaders should be trained in such a way that they do not resist the changes and also motivate the subordinates to accommodate the changes. Whole of the team should adhere to the deadlines of time and contracts should be constructed accordingly. Integration and teamwork should be encouraged. Also, proper project management techniques should be implemented effectively to accomplish the objectives.
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