Project Management Organization - Case Study Example

Project Motorcycles AFFILIATION: Project Motorcycles Introduction of the company The company isbasically a manufacturer of the motorcycle cruisers which is medium-sized. The engines of the motorcycle cruisers are categorized on the basis of sizes and the organization has made an excellent reputation in the market for offering the fuel-efficient cruisers among the middleweight group. As the company has been successful in this product category, it is considering the option of manufacturing large motors for the motorcycles to be utilized by the touring class. The motors will be especially designed to cover large distances and will be available in sizes 1100 cc and above. Potential for larger motorcycles business According to PRWeb (2013), the Motorcycle, Bikes and Parts industry has entered the maturity stage and it is shifting its focus on the international trade. There is an increasing demand for low-cost and fuel-efficient motorcycles by the customers as they have less disposable income. In 2009, the industry revenue declined by 37.3% (Molavi, 2010) and it is forecasted that the trend will continue in the next five years to 2012 with declining percentage of 6.7% every year (“PRWeb”, 2013). Likewise, it is expected that there will be a change in the target customer as the young people are looking for the motorcycles. Previously, only old people aged above 45 years were demanding these products. With easy access to the countries where production can be done on a cheap level, the companies within the industry are employing the production processes which will save their costs and allow them to earn a huge amount of profit. Objectives of the company As the company is planning to introduce large motors for the motorcycles with a different target market i.e. touring class, the objectives of the company can be defined as follows: 1. To penetrate in the touring class by offering them high quality large motorcycles at reasonable prices. 2. To increase the market share of this new market by 5% every year in the next five years. 3. To exceed the expectations of the existing customers by offering them an extensive range of superior quality middleweight products. Project Organization There are various types of organizations in the business world but the three main forms of companies which are idle for project management purposes are functional organizations, matrix organizations and pure project management organizations (Bobera, 2008). Considering the scenario of the company, the best structure is the matrix one as it allows the managers to keep a balanced focus on both existing and new projects. Since the company is planning to manage its middleweight motorcycle and large motorcycle businesses simultaneously, the matrix structure will make sure that both projects are efficiently managed. Other positive aspects of the matrix organization for the company are that the resources can be shared among various projects, the project manager makes sure that the project work is coordinated and integrated with other units, the resources are effectively balanced to make sure that the costs and quality requirements are sufficiently met and at the end of the project the anxiety of project members is greatly reduced (Project Management Institute, 2008). In order to develop this form of structure for new business, the company will have to decide about the key people who will be made part of this new project. The management team will make sure that competent people from each department are taken on board so that the complete business plan is appropriately developed. For making the large motorcycles, the company will ask the project team to develop a feasibility study in which all aspects of the product from inbound logistics to sales will be worked out. The Critical Path Model (CPM) tool will be used to map out the complete project details. Hence, it will give a visual representation of the project which will make sure that the motorcycles are manufactured in the most viable manner. Strategy for achieving the objectives In order to achieve the objectives of the company, it is vital for the managers to make sure that a well-defined strategy is developed. The strategy basically provides guidance on the path to be taken and actions to be implemented for attaining successful business performance targets (Kerzner & Saladis, 2013). An analysis of the company’s objectives recommends that the management team should first carry out a market survey within the market. The results of the study will indicate the potential of the large motorcycles within the industry. If the survey concludes that there is a demand of the large motorcycles especially in the touring class, then it should start with this novel project. Once getting positive survey results, the next step is to develop the idea of reaching the target market and deciding about the production process. Before launching the entire range of large motorcycles, it is better to do test marketing. As the company is in the business for many years, it should rely on its existing suppliers for the parts of the motorcycles and set up a new plant for the production of large motorcycles. Initially, the company should produce only 500 motorcycles each month for the first three months. After the demand of the motorcycle increases, then the production should be increased. In order to reach the target market in the introduction phase, the marketing should be done through word of mouth and advertisements in the newspapers. Even the existing customers can be offered attractive packages if they buy the large motorcycles. After the sales have been done, the managers should seek feedback from the customers and monitor the performance of the company. Hence, it will make sure that the latest offering of the company is effective in meeting the organization’s objectives. Since the supply availability is the important constituent of any project, it is imperative for the company to give access to all resources required for this particular project. The key resources required are accurate and reliable data about the motorcycle industry, trustworthy suppliers, high quality parts and materials required for the production, funds for marketing and producing the motorcycles and employees for managing every stage of the project. Project management leadership style The leadership style is one of the crucial factors for the successful implementation of the project (Kerzner, 2012). Every project manager has to make sure that the style is adopted in accordance to the nature of business, work behavior preference of employees, requirements of the project and many more (Kerzner & Saladis, 2013). The most common forms of leadership style are classified as decision-making, personal authority and activities management. For the project which is being considered by the company, a project manager should be a democrat who allows the members of the team to give their viewpoints regarding the work and makes final decision on consensus basis. For activity management, the manager should adopt coaching style so that the team members can be motivated to enhance their skills for accelerating the impact of the project for the business. Finally, the person should have a charismatic personality so that the level of enthusiasm can be increased and such projects have the tendency of being successful in the long-run. Risk mitigation strategies The risk in a project is an uncertain condition or event which can affect the project (Kerzner, 2012). A risk can be either positive or negative for the company as it varies among the type of business run by an organization. For the company, the risks are mainly classified as operational, financial and strategic ones. For the company’s project, following are the risk mitigation strategies: 1. The project manager should first make a list of all potential risks of the large motorcycle business and then investigate the likely impact of each one of them on the business. The risks with high level of severity should be worked out meaning that the manager should develop a plan for resolving them when such situation arises. 2. A contingency plan should be developed regarding the performance of the large motorcycle business. For instance, if the price of supplies increases, then either the supplier should be changed or additional cost should be paid by the company. It should make sure that it has the resources to mitigate the risk. 3. It is vital to set milestones to monitor the progress of the project and any deviation from the path will indicate that the risk of failure is high. There should be clarity about the level of risk which is accepted by the company. Conclusion All those companies are able to run their businesses successfully who have highly skilled and experienced project managers. Before initiating any new business or any project, it is vital to follow the project management cycle so that all negative aspects are properly covered. When the project manager follows a strategic project management plan, there is a high probability that the fresh project will be successful and it will boost the performance of the company. Hence, it is crucial for the project manager to carry out careful market analysis before starting the large motorcycle project. The effectiveness of this beneficial strategy will allow the company to reap the benefits of running a thriving business. References Bobera, D. (2008). Project Management Organization. Management Information Systems, 3(1), 3-9. Kerzner, H. (2012). Project management: A system approach to planning, scheduling and controlling. 11th ed. Hoboken, NJ: John Wiley & Sons, Inc. Kerzner, H., & Saladis, F.P. (2013). Project management workbook and PMP/CAPM exam study guide. 11th ed. Hoboken, NJ: John Wiley & Sons, Inc. Molavi, J. (2010). IBISWorld Industry Report 33699a: Motorcycle, Bike & Parts manufacturing in the US. Retrieved October 26, 2013 from http://cx.ccxcdn.com/pdf/IBISWorld_Industry_Report.pdf Project Management Institute. (2008). A guide to the project management body of knowledge. 4th ed. Pennsylvania, USA: Project Management Institute, Inc. PRWeb. (2013). Retrieved October 26, 2013 from http://www.prweb.com/releases/2012/3/prweb9341996.htm Read More