Project Valuation Feasibility Study Of PM Solutions And PM College

Running head: PROJECT FEASIBILITY REPORT

Project Valuation/Feasibility Study of PM Solutions and PM College

Name:

Institution

PROJECT FEASIBILITY REPORT 2

Table of Contents

1. Purpose ...................................................................................................................................................... 3

2. Executive Summary .................................................................................................................................. 3

3. Background ............................................................................................................................................... 4

4. Business Analysis ..................................................................................................................................... 5

5. Identified Risks to the Business ................................................................................................................ 7

6. Potential Solutions and Analysis of Options ............................................................................................. 7

7. Recommendations and Conclusions ......................................................................................................... 9

References ................................................................................................................................................... 11

PROJECT FEASIBILITY REPORT 3

Project Valuation/Feasibility Study of PM Solutions and PM College

1. Purpose

The purpose of this report to present the feasibility of two companies, PM College and

PM Solutions in project management of my company, which entails incorporation of technology

in inventory processes. In this regard, the report will present the background of the situation,

analysis of the business context, potential risks and analysis of the possible solutions. The final

part will represent the identified recommendations as well as the possible benefits to the

business.

2. Executive Summary

Technology has enabled business process automations with a potential of automating

workflows to a point of reducing human intervention to a significant level. Automation can not

only make the processes efficient but can also aid a great deal the business transactions, save

money, time involved and reduce the probability of human error. However, not all business

process can be automated. Therefore, companies are mandated to make determinations on the

business process that can be effectively automated to create efficient and effectiveness in the

whole production process.

Gucci, a CLOTH manufacturing and distribution company based is currently expanding

its business locally, nationally and on a global scale. Accordingly, the company would want

automate its inventory and record keeping processes for more efficient production. These

undertakings will as well enable the company align itself with the current technological

environment. Furthermore, there will be a reduction of costs associated with the use of human

resource in the inventory while also improving the general revenue of the company owing to

improved efficiency of operations.

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Gucci has a challenge of choosing the right company to achieve this goal. Both, PM

College and PM solutions are good when it comes to IT project management. However, Maritex

has to grapple with choosing the right company that meets its objectives, as well as one that

meets its financial standing. Therefore, this feasibility study will help the company in choosing a

firm that is cost effective, while at the same time providing quality services.

3. Background

With today’s technological world, companies have been forced to automate their

processes in order to improve their production efficiency. Automation saves money and time

while also making customers delighted by being served in a faster manner. Furthermore, human

error which is common when use human resources are used is greatly minimized.

When automatic their process, firms commence by analyzing the operating and strategic

drivers for improvement of the process in their respective entities. For example, in the current

global market environment, many businesses are pressurized to getting goods in the market in a

faster manner. These firms also want to be the first in reaching the market wherever possible.

There is also a high level of pressure for companies to reduce the cost of their operations as

much as possible, taking into account the high price market environment. This is because raising

prices to achieve cost effective may generate a negative implication on the business.

PM College One of the options chosen for this task is a company which provides

competency development programs as well as management training for various clients across the

globe. The company works directly with business units, and organizations in designing and

identification of objectives, instituting desirable behavior changes, and delivering relevant

training content for the purpose of improving performance. The organization is also involved in

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delivering and customizing courses with a focus on acquisition of different levels of knowledge.

Each of its courses is designed by conducting a needs analysis and development of design

documents. The institutions curriculum is PBBOK compliant (pmcollege.com, 2018).

PM solutions on the other hand are a consultancy firm which is involved in project

management. The entity also deals with portfolio management practices with a focus on driving

operational efficiency and general performance of an organization. Majority of its clientele are

business leaders, managers, project managers, business owners and project management officers

(pmsolutions.com, 2018). These two entities will be assessed in their project management

strategies and capabilities to determine the most ideal one for Gucci international.

4. Business Analysis

Gucci is a multinational fashion and leather company based in Italy. The firm is owned

by its parent, Kering which is a French based holding company. The entity was established in

1921 by Gucci Guccion and his wife Florence Gucci. Currently, the company is rated as among

the 100 Brands by the BusinessWeek Magazine. Forbes Magazine ranks it as the 38th most

valuable fashion brand globally. It is also the largest company dealing with Italian fashion and

brands. Presently, Gucci operates approximately 300 stores in different parts of the globe.

However, it also operates department stores on upscale markets as well as its franchisees which it

uses in wholesaling its products. The brand is also currently valued at US$ 5 billion and the

brand value is $13 billion (Forbes.com, 2016).

Gucci has already a presence in various parts of the world including USA, German,

China and UK. However, the company has a strategic goal of positioning the brand in leading

markets. London has been touted as a promising market for the fashion industry. If this strategy

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is implemented accordingly, it will place the brand closer to its fiercest rival, Louis Vuitton. The

previous openings in such markets as Hong Kong, New York and Rome successfully bore fruits

(Euromonitor, 2018). Through its management policies, the brand was able to maintain a strong

local flavor through its excellent architectural integration and product dedications.

By successfully launching its business in the London Market, it is believed that Gucci

will effectively compete with Louis Vuitton. The brands intimate luxury, a consciousness of

heritage architecture effectively compliments the nuances of modernity. The enhancement of

Gucci’s materials including rosewood and marble with polished gold and smoked bronze has not

only helped in creating a modern set up and fresh look. It has also assisted in upgrading the

brand to a higher position, successfully placing Gucci at the same or even higher level of its

competitors who include Louis Vuitton. Furthermore, the newly designed stores are meant to

perfectly portray the values and roots of Gucci. It has also acted as a means of differentiating its

brands with the rest in the market. What is more, the commitment of Gucci owners and the

management have enabled it to stand as a unique apparel entity in the globally. This is because

unlike its competitors, it is not associated in any way with restaurants or hotels, mobile phones.

In addition, the approach of going slow on retail expansion in other global markets, as well as the

firm’s flexibility have at some level, appeared to be an advantage to the renown Italian brand.

Therefore, in expanding to the London Market, there is a potential for Gucci to reap more

benefits from the local market. The company is also poised to outdo its competitors because of

its values and design of its products. As such, its inventory department is becoming expansive

and would therefore very much benefit from automation.

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5. Identified Risks to the Business

Irrespective of the nature of a business, it is important to keep track of the products the

firm harbors at a particular moment. As already identified, it is important for companies to keep

accurate inventory as this will work towards providing an efficient operation as well as reducing

the costs of operation. Despite the benefits associated with the use of computerized approach to

inventory keeping, there are risks associated with it. In particular, There are various risks

associated with inventory automation and which Gucci is likely to face.

One of the key risks for Gucci in this case is the risk of fraud. Any system utilizing

information technology harbors the risk of intrusion and subsequently the risk of fraud. In this

case, a dishonest employee or vendor may opt to hack the system to gain access to sensitive

information or company finance and direct them to themselves. This will generate a loss to the

company.

Another potential risk associated with automation of inventory is the grounding of

operations in case the system fails. Factors such as failure of power, loss of network connectivity

or internet could make the system useless. Alongside these is the potential for computer

generated errors which are prone in such contexts. In the event that data is not carefully

validated, wrong or unverified data may be entered and cause a negative impact on the company.

6. Potential Solutions and Analysis of Options

In order to avoid the risk of fraud, Gucci will outsource the services of information

Technology Company in not only implementing the inventory automations, but also in ensuring

their security as well as in establishing backups for power and internet. The company will be

able to draw basic standards for employee IT operations, offer pass guidelines, installation of

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anti-virus malware systems, provision of training to employee on IT security management and

awareness as well as in ensuring that the systems are kept up-to-date and patched.

In this regard, Gucci has two options for this task: PM Solutions and PM College. PM

Solutions has in place an agile program management entity. The company, which is massive in

nature, has a wide range of backed assets and resources with executing project management

endeavors. Unlike other companies, this company has wide experiences in all areas of project

including in matters related to technology and systems. It also embraces innovation and the use

of new approaches with proven impact across the globe. PM Solutions has an impeccable

capability in improving organizational processes, strategy execution and in achieving other

business priorities. This capability and massive resources alongside the possession of expertise

with a wide range of experiences are what makes PM Solutions to be trusted cross the world.

PM College on the other hand, is focused towards providing project management training

for project manager as well in provision of development programs to reinforce project

performance for individual and organizations. The company has also offers a course for

managers and company executives on lean, scrum and agile management options. The business

centers on business executives on all levels as well as the IT professionals from all industries.

The mandate is to ensure that all those involved in project management are well versed with

what it takes in the field have the necessary knowledge and skills to make the project a success.

The idea is that many projects fail because those responsible do not have the necessary skills and

knowledge on handling projects. On the contrary, the personnel at PM college are experts who

are well trained and experienced in all organizational aspects and thus, are better poised to pass

the same knowledge and expertise to those who will need them.

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7. Recommendations and Conclusions

The best option for Gucci in this case is PM Solutions. This is because since the project is

starting from its initial phase, the firm would need a PM contractor who will be involved in all

phases of the program accordingly. PM Solutions are better suited to take this role because they

have expertise who can work full time until the project is complicated. It should be noted that a

full implementation of the automation system on a company’s inventory system is a complex

endeavor. This is more so for a company like Gucci whose operations are not only extensive but

also expanding consistently on a global arena. Therefore, there is a need to acquire a PM

contractor who will take up the project from right from the initial phase to its final conclusion.

This is not the time for employees to be trained on what to do but rather, the focus should be

implementation of a system that was not there before. Once the system is implemented

effectively, it would be now possible to train the relevant employees who will handle the

department.

PM College is a training based organization in project management. If Gucci is to use this

agency for project related endeavors, then it can do so at a later stage or in training workers in an

already running department. Although they are also well qualified to handle issues of project

management including in the matters related to IT installation and management, their focus is on

training employees. It will therefore be difficult for Gucci to employ this kind of agency to

implement a project of high magnitude as invention management.

PM College on the other hand, has the necessary capability of achieving the goals of this

program. This owes to the massive number of clients it has been able to handle from different

parts of the globe. Additionally, the firm has positive reputation worldwide in regard to the

quality of services provided and the expertise of its employees. The services offered by PM

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Solutions will therefore have a high degree of guarantee compared to those sourced from other

firms. It should also not be underestimated that PM College has more than sufficient resources

and financial capability to handle a project of any magnitude. This raised the credibility of PM

firm in undertaking the project effectively without a prospect of resource or financial hiccups.

Many companies have no financial muscle to undertake larger projects as implementation of a

project of a corporation with worldwide presence. In implementation an inventory program for

Gucci and its worldwide branches, it is evidence that massive resources and finance will be

needed. This is why a company like PM Solutions comes at hand. Therefore, from this feasibility

study, PM is the ideal company for Gucci to work with, in this project implementation process.

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References

Euromonitor (2018). Gucci Group NV in Luxury Goods, accessed 24th January 2018,

http://www.euromonitor.com/gucci-group-nv-in-luxury-goods/report

Forbes.com.(2016). Gucci. Accessed 25th January 2018,

https://www.forbes.com/companies/gucci/

pmcollege.com. (2018). About us. Retrieved on 28

February from pmcollege.com

PMSolutions. (2018). About us. www.pmsolutions.com

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