The analysis of project plan of TUI travel agency - Essay Example

? Aasia Jahan PROJECT PLAN XXXX 30 August, Table of Contents Contents Page No Executive Summary 03 2. Introduction 03 3. Project Brief 04 4. Staffing Policy 05 5. Project Life Cycle 06 5.1 Initial Phase 06 5.1.1 Main Activities 06 5.2 Design/Planning Phase 07 5.2.1 Main Activities 07 5.3 Implementation Plan 08 5.3.1 Main Activities 08 5.4 Commissioning Phase 08 5.4.1 Main Activities 09 6. Marketing Strategies 09 7. Project Schedule 10 7.1 Gantt Chart 11 8. Financial Cost of Project 12 8.1 Key Assumptions 12 8.2 Project Investment 13 References 14 Exhibit “A” Human Resource Cost 15 Exhibit “B” Equipment and Machinery Cost 16 Exhibit “C” Construction Cost 17 1. Executive Summary             The long term success of TUI has enabled its top management to expand the company’s growth into new emerging markets of Western Europe. With the intention of mounting its potential, developing activities, and to attain a sustainable lead against its rivalries, TUI has decided to launch a network of fast food and amusement parks in Greece and Turkey. In the first phase of is new project, 20 fast food units have been planned to open in Greece while in 2nd phase such units will be opened in Turkey. In the 3rd phase, company will venture into construction of amusement parks in Greece and Turkey. This project plan deals only with the first phase of this strategic plan. The plan will initially illustrate the background and salient features of TUI and why this company has decided to venture into new markets. Project plan mainly focuses on the project life cycle with number of activities and time management involved with it. Time management is elaborated with Gantt chart. Staffing policy and estimated financial cost have been designed to accomplish this first phase of project plan successfully. 2. Introduction TUI is abbreviated for Touristik Union International. It was established in 1968. TUI headquarters are located at Berlin, Germany and its official website is www.tui.com. TUI is the largest integrated tourism group in Europe, lagging far behind its competitors with a turnover of about € 21,866 million in 2008. Initially, it company worked as Preussag AG, and gained a renowned fame in the field of transportation and industrial sector till 2001. This year, it became a 100% subsidiary of Preussag AG. In next year, Preussag AG was transformed into TUI AG. During next few years, TUI developed and changed its production from industrial segment to a modern tourism and shipping company. At present, the company has an extensive network all over the world and is a market leader of tourism industry in Europe. The main areas of operations include tourism, shipping, tour operators, airlines, travel agencies, hotels, resorts, retail stores, cruises, ship containers, and incoming agencies. TUI has €14,917.5 million current and non-current net assets and liabilities (Interim Annual Report, 2009). On December 2008, TUI had 70,200 employees (TUI Annual Report, 2008), 285 hotels in 28 different countries including 84% four or five star hotels, 79 tour operators in 18 countries, 120 aircraft, 10 cruise liners, and 443 subsidiary companies (http://www.tui.com). One of the unmatchable entrepreneurial landmarks of TUI is its continuous structural progress and upgrading services offered to worldwide customers. Contrary to its rivalry, TUI is very successful in both the tourism and shipping divisions because of its advanced attractive products and services as well as the expansion of new and strong brands. However, the performance of TUI has been affected badly due to ongoing war against terrorism, natural calamities, global recession and lack of customer confidence. Prior to 9/11, TUI had more dynamic growth from 1995 to 2001. Post 9/11 affects really restricted the TUI’s expansion strategy especially in various countries of Asia. Since China is an emerging market, therefore TUI had planned a broad strategy but war in Afghanistan and its further affects in Pakistan kept TUI to hold up its venture in China. Trough different sources, TUI gathered the demographic data about Greece, customers’ behavioral analysis, and competitive analysis of fast food industry in Greece. In such political and military situations, TUI decided to launch its new branch in Greece instead of Asia. 3. Project Brief The main emphasis of this project plan is on the life cycle of the project along with various stages regarding opening of a network of 20 fast food points for TUI in Athens, Greece. The plan will also sketch out the different segments in project management and a lot of concerns in every segment. The plan will provide new dimensions in the expansion of global network of TUI. The civil work construction will consist of operational building, stores, parking and offices for key staff. (a) Operational Building. It includes the construction of main functional area such as dinning halls, kitchen, reception, and waiting room. Parking can also be considered as part of this segment. (b) Stores. The new unit will house at least two storage rooms. One of the store rooms will be used for preservation of machine, equipment, or furniture items while in 2nd store room eatable, cooked, and frozen items will be stored for further usage. (c) Offices. Offices will be required for management and accounts staff to carry out the proceedings smoothly. 4. Staffing Policy The success of this project plan will be highly dependant on the successful implementation of policies of Human Resource Management which must be harmonious with its business strategies as well as with its formal and informal structure. Staffing policy deals with the selection and appointment of suitable human resource to perform particular jobs. Further it provides assistance for developing and promoting a particular business culture. Generally, three types of staffing policy are applied in business field i.e. ethnocentric, polycentric, and geocentric staffing policies. In an international business, an ethnocentric staffing policy concentrates on appointing all key staff positions from parent-country citizens. Generally this approach remains congruent with international strategy. For top level managers, TUI will use this staffing policy. In the polycentric approach, parent-country nationals hold key positions at company headquarters while host-country citizens manage foreign subsidiaries. This staffing style can curtail the risks of cultural myopia. For a multi-domestic strategy, this is considered as the best policy. This policy will be ideal for TUI to establish for its middle level managers. Geocentric staffing policy, regardless of nationality, emphasizes to employee the best, skilled and proficient staff for key positions throughout the organization. This staffing policy is good for both national and international business strategies as it has a constant contribution to produce an informal management network and strong unifying culture in the organization. In TUI, the positions below the mid-level managers will be filled by applying this approach. 5. Project Life Cycle 5.1 Initial Phase This is the first segment of this project plan. It deals to define a business perspective to improve the capabilities, understanding, and dexterity of newly appointed staff to acclimatize with the organizational corporate cultural values. A feasibility study will be made to examine the possible outcomes of each and every option that will support the organization to attain its overall strategic goals. Feasibility report will be examined critically by top management. After bringing into account several suggestions, a report will be put forward. After getting approval from executive class of TUI, a project plan will set off to obtain the required upshots. Moreover, the goals, structure, and scope of the new project will be outlined in a Term of Reference. A Project Manager ‘key to the project success’ (Ng, 2001) of TUI will be appointed to carry out this plan. 5.1.1 Main Activities (a) Review of case studies (b) Feasibility study (c) Assessment of location concerns (d) Designing of project team (e) Design of the project proposal 5.2 Design/Planning Phase After outlining the overall scope and goals of project plan in the Terms of Reference, the plan will cross the threshold planning segment. This will explain the responsibilities, dependencies, time scheduling and certain executing activities. (a) Resource Management. It will analyze the provision of material, machinery, equipment and labour. (b) Financial Planning. It will identify the estimated cost of equipment, machinery, transportation, and labour. (c) Risk Planning. It will focus on external and internal threats to the organization along with certain preventive measures to diminish them. (d) Communications Planning. It will deal with preparation of informative documents and reports which are required by shareholders. (e) Procurement Planning. This planning will be formulated to ensure the delivery and reception of products from external suppliers and customers (f) Acceptance Planning. Here some specific criteria will be designed to gain the customer acceptance and feedback. (g) Quality Planning. It will ensure the control and quality measures. 5.2.1 Main Activities (a) Describing project needs (b) Selection of suppliers (c) Selection of project site for fast food units at several locations. It includes site services, parking, infrastructure and utilities. (d) Evaluation of design elements (e) Risk assessment 5.3 Implementation Phase The 3rd segment will be involved with the tasks listed in 2nd phase as well as their execution. A lot of management and control theories will be applied to undertake such processes. Management staff will keep an eye on the controlling of deliverable items. The change and risk management issues will be highlighted along with re-evaluation of quality of deliverable items. When the whole marketing of the deliverables will be completed, this segment will be considered as closed with success. 5.3.1 Main Activities (a) Construction (b) Project changes and control (c) Project report 5.4 Commissioning Phase This will be the 4th and last segment of this project plan. It will deal with project documentation, finalizing the delivery of deliverables to the customers, looking for new project resources, extending or termination of supplier contracts, and dissemination of report of all activates to the stakeholders. The final step would be the Post Implementation Review. It will be done by analyzing the overall achievements obtained through this project and acquisition of some lessons learned for future references and projects. 5.4.1 Main Activities (a) Critical analysis (b) Preparation of reports 6. Marketing Strategies (a) TUI will carry out the company’s dual strategy in developing its products in rapidly changing industry. One strategy is to invest heavily in research to discover and develop innovative trends and demands through public surveys. These surveys will assist the top management of organization to establish a record of information on demographics, interests and comments of general users on different market items. With the help of this collected database, necessary improvements will be done and therefore fast food units will ensure to meet the interest of customers’ demand regularly. In order to gather the data, TUI will primarily use internet as a medium to carry out its publicity and research surveys. (b) In order to gain its initial short terms goals, TUI will highly depend on its communication strategy to its clients. Advertising policy will be a key factor. During the initial phase, TUI will emphasize to keep itself present on regional basis. An electronic campaign will be launched which will include newspapers, radio, television, and online contact to know the trends of local customers. To make the communication more effective and productive, an advertising consultant will be arranged to carry out this important campaign. After achieving initial short term objectives, the strategy would be to keep the name of TUI in front of general public. Along with occasional ads on electronic and print media, yellow page advertisement will also be used to achieve this goal. (c) Promotional plan of fast food units will incorporate a variety of marketing connections. Therefore, in order to monitor and observe the services, products, and market position, TUI will arrange a program to receive the feedback from the customers. Different techniques will be applied to do this such as telephonic conversation, direct mail, opinion through public surveys and online comments. Since internet is the most ready and widely used medium to communicate, therefore TUI fast food units would launch their own websites which will be one of the main communication channels. (d) Moreover, TUI will specially emphasize on the pricing of product. The strategy would be to provide best quality products at competitive but affordable rates. A detailed survey of competitors pricing will be held to adjust the price for competition. 7. Project Schedule Planned Start Date Planned End Date Function Initial Plan 9/5/2011 9/9/2011 To define scope of project, Define requirements, 9/12/2011 6/23/2011 Identify High Level Roles 9/26/2011 10/13/2011 Budget Meeting, High Level Budget Allocation/Requirements 10/14/2011 10/14/2011 Identify Control Strategies 10/17/2011 10/26/2011 Finalize charter and gaining initial approvals from executive authorities through proper channel 10/27/2011 10/28/2011 Publication of Project Charter 10/31/2011 11/03/2011 Project review meeting 11/04/2011 11/05/2011 Revision and finalization of project charter 11/08/2011 11/12//2011 Final approval from higher authorities Execution of Plan 12/05/2011 12/23/2011 Purchase of land and legal correspondence 02/01/2012 31/12/2012 Construction of buildings, Purchase of dinning and office furniture, Purchase of equipment and machinery, Publicity through newspapers, pamphlets, variety shows, and electronic media, 02/01/2013 11/01/2013 Launching of website 14/01/2013 01/02/2013 Recruitment of skilled staff Implementing Plan 04/02/2013 15/02/2013 Finalization of reviewing and finishing process 18/02/2013 - Start of customer service Commissioning Plan Preparation of overall performance report 7.1 Gantt Chart Gantt charts show the clear state of a project. In order to maintain the time management and schedule, Gantt charts are used as an effective tool. Although they may display a number of information, but the beauty of these charts is that they can be understood easily. Gantt charts can be maintained for longer duration till the time the task provisions are remained unchanged or no modification are made in it (Dube & Hormozi, 1999, 37). No Events 2011 2012 2013 Sept Oct Nov Dec Jan Feb Initial Plan 1 To define scope of project, Define requirements, Identify High Level Roles Budget Meeting, High Level Budget Allocation/Requirements Identify Control Strategies Finalize charter and gaining initial approvals from executive authorities through proper channel Publication of Project Charter Project review meeting Revision and finalization of project charter Final approval from higher authorities 2 Execution of Plan Purchase of land and legal correspondence Construction of buildings, Purchase of dinning and office furniture, Purchase of equipment and machinery, Publicity through newspapers, pamphlets, variety shows, and electronic media, Launching of website Recruitment of skilled staff 3 Implementation Plan Finalization of reviewing and finishing process Start of customer service 8. Financial Cost of Project TUI is going to establish 20 fast food points in proposed cities of Greece. These fast food points will be established on same pattern through the country. Although, financial cost of the project will vary at all locations depending upon its geographical location and resources, however, cost is expected to remain within flexible limits. 8.1 Key Assumptions Item Assumption(s) Sales Increase 15% Increase in Cost of Raw Materials 10% Increase in Staff Salaries 10% Increase in Utilities (Electricity / Water / Gas) 10% Increase in Rent 10% Increase in Office Expenses 10% Debt / Equity Ratio 50:50 Depreciation Shop Building & Fixtures 10% per annum (Diminishing Balance) Kitchenware & Machinery 10% per annum (Diminishing Balance) Furniture 10% per annum (Diminishing Balance) Equipment Annual Maintenance Cost 2.5% of Written Down Value Raw Food Inventory - Meat 3 days Raw Food Inventory – Spices & Sauce 5 days Lease Period 7 days Lease Installments Monthly Financial Charges (Lease Rate) 15% per annum Tax Rate Income Tax on Salaried Individuals 8.2 Project Investment Item Cost ($) Human Resource 504,000 Construction Cost (all inclusive) 78925 Dining & Office Furniture 42,250 Equipment & Machinery 46,160 Preliminary Expenses 4000 Working Capital 10,360 Total 685,695 The estimated cost of different heads are calculated and shown in the form of exhibits A, B, and C at the end of this project plan. References Dube, L F & Hormozi, A. M. (1999), ‘Establishing Project Control: Schedule, Cost, and Quality’, SAM Advanced Management Journal, vol. 64, no. 4, p. 32. Ng, E (2001), Information Technology Project Management TUI Annual Report, 2008 TUI Interim Annual Report, 2009 Exhibit “A” Human Resource Cost Position Strength in 1st Shift Strength in 2nd Shift Total Strength Payroll/Head ($) Total Payroll ($) Project Manager 01 - 01 46,000 46,000 Sales Manager 01 01 02 35,000 70,000 Admin Officer 01 01 02 32,000 64,000 Customer Service 05 03 08 18,000 144,000 Accounting 01 02 03 20,000 60,000 Admin Staff 02 01 03 20,000 60,000 Facilities Management 03 02 05 12,000 60,000 Total 14 10 24 - 504,000 Exhibit “B” Equipment and Machinery Cost Item Details Quantity Unit Price ($) Total Price ($) Freezers (12 cf) 3 25,000 1125 New Broast Machine (15 Pound Capacity) 1 650,000 6500 Deep Well Frier (Single Valve With 2 Baskets) 2 40,000 1210 Hot Plate for Burgers, Kebab, Sandwiches (30” x 22”) 1 33,000 430 Bin Marry Soup Container (2 Valve With Steel Cabinet) 1 50,000 565 Potato Cutter (8mm) 1 3,000 3600 Pillar (4.5 Kg Potato Peeling Capacity) 1 6,000 6500 Microwave 1 10,000 230 Working Tables 2 20,000 600 Keg Racks & Shelves 2 10,000 460 Total 15 - 26,160 Exhibit “C” Construction Cost Details % Sq. feet Construction Cost ($) Dinning 63 42250 Waiting 04 4500 Kitchen 16 14240 Parking 12 12335 Office 2 2200 Store 3 3400 Total 78925 Read More