Project Management MA ONE

DOC-076-CORP-REV-D-ASSESMENT AND IV FRONT SHEET_INDIVIDUAL CRITERIA

ASSESSMENT AND INTERNAL VERIFICATION FRONT SHEET (Individual Criteria)

Course Project Management Lecturer Name Inġ. Karl V.A. Camilleri
Title & Surname
Unit Number & Title BCPRM-706-1510

Assignment Number, Title Take Home Assignment 1

/ Type
Date Set Deadline Date
20th April 2020 29th May 2020
Student Class / PGDBA-Cohort 4
ID Number
Name Group

Student’s declaration prior to handing-in of assignment:

 I certify that the work submitted for this assignment is my own and that I have read and understood the respective
Plagiarism Policy
Student’s declaration on assessment special arrangements (Tick only if applicable)
 I certify that adequate support was given to me during the assignment through the Institute and/or the Inclusive
Education Unit.
 I declare that I refused the special support offered by the Institute.
Student Signature: Date :

Maximum Mark
Assessment Criteria Mark Achieved
Criteria K&U1.1: Highlight the relationship between Projects, Operations, Programmes and
5
Portfolio Management
Criteria K&U2.1: Illustrate the standard project life cycle and the main phases of a project.
5
Criteria K&U3.2: Examine standard models within key knowledge areas in order to classify,
5
communicate and improve on decision making
Criteria K&U4.2: Define project failure and major root causes of project failure.
5
Criteria K&U4.3: Explore common shortcomings in project planning as related to the project
5
knowledge areas that contributes to projects failing.
Criteria A&A1.2: Outline the key enterprise environmental factors that would apply to a project
7
Criteria A&A2.2: Apply key knowledge project management concepts
7
Criteria A&A2.4: Determine strategies to manage stakeholders throughout the project
7
Criteria A&A2.5: Employ the communication management process with emphasis on the
importance of collecting, distributing, storing, retrieving, controlling, monitoring and disposing 7
of information
Criteria A&A4.4: Determine how the processes, tools and techniques discussed during the unit
7
can reduce the risk of failure.
Criteria S&E1.3: Propose suitable project governance models
10
Criteria S&E2.3: Design a Project Charter and Project Plan
10
Criteria S&E3.1: Apply standard techniques to gather requirements and create and maintain a
10
work breakdown structure to identify and control project scope.
Criteria S&E4.1: Identify and categorize risk, determine the probability and impact of risk, and
10
formulate strategies to control risk.
Criteria :

Total Mark 100

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DOC-076-CORP-REV-D-ASSESMENT AND IV FRONT SHEET_INDIVIDUAL CRITERIA
Assessor’s feedback to student

(If necessary, use reverse side of page for IV feedback on assignment brief / sample of assessment decisions)

Name & Surname Signature Date

Internal Verifier : Approval of assignment Mr Eric Flask
brief
Lecturer / Assessor : Issue of results and Inġ Karl V.A. Camilleri
feedback to student
Internal Verifier : Approval of assessment
decisions (Sample)

Learner’s signature upon collection of corrected assignment.

 Project Management MA ONE
DOC-076-CORP-REV-D-ASSESMENT AND IV FRONT SHEET_INDIVIDUAL CRITERIA
Name of Student: _____________________________Class:_________________

Note for Student: Please make sure that this printed version is identical to the version
uploaded on Moodle, along with a hard copy. However, please note that only the
Moodle version is the official version.

CASE STUDY:
Rethinking Domino's Expansion Plan
Case Study from the IBS Centre for Management Research - 2010

In May 2001, Pavan Bhatia, CEO, Domino's Pizza India Ltd. (Domino's) stepped down
from his post. Earlier, in March 2001, at a board meeting, Domino's top management
concluded that Bhatia's performance during his 18-month tenure was not up to the
mark.' The board felt that Bhatia had initiated an expansion strategy that was 'reckless
and not properly thought out.' However, many analysts did not agree with the board's
conclusion. They felt that the board was not considering the possible long-term
benefits of Bhatia's strategy.

During March 2000-January 2001, Bhatia opened Domino's outlets in small towns and
cities. Pizza consumption in these places was very low. Analysts felt that even those
willing to opt for the product found the price unacceptable. The cost per meal was too
high. In September 2001, due to low customer and consumption volumes, Hari
Bhartia, the Chairman of Domino’s India, planned to shut down Domino's outlets not
only in some small cities but also a delivery outlet in the wealthy Gujranwala Town in
North Delhi.

Sky is the Limit

In November 1999, Pavan Bhatia took over as the CEO of Domino's. He seemed to
be very ambitious and wanted to make Domino's the largest fast-food chain in India.
Bhatia went about opening Domino's outlets across the country. The number of
outlets multiplied four fold from 20 to 100 between March 2000 and January 2001. It
was the fastest growth Domino's had in any of the 63 countries it operated in. From an
average of four stores every year in its first four years of operation, Domino's
expanded to more than 100 outlets in 10 months across 30 cities.

Domino's entered into an agreement with a real estate consultant CB Richard Ellis to
help with locations, conduct feasibility studies, and manage the construction. Bhatia
said, "We are in the business of selling pizzas, not hunting for real estate. And one of
the biggest impediments in retailing is real estate, so we decided to hand over the
entire real estate operations to estate consultants CB Richard Ellis." Bhatia realized
that fast track growth could be achieved only by focusing on the core business of
selling pizza.
He said, "We realised we'd be wasting too much time, money and resources trying to
do it all ourselves. For instance, just acquiring a bunch of permits for each store in
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each city is itself a big job. Then there are the brokers, city laws, markets, licensing,
title, infrastructure, water, power, lease agreements, signage and most important,
dealing with competing restaurants." CB Richards not only managed to take care of all
these hassles but also furnished the outlets.

Bhatia wanted quantum growth and felt that Domino's needed to tie up with airports,
railway stations and petrol pump stations. Incidentally, CB Richards was already
working with oil companies, advising them on how to go about making their petrol
pumps ready for competition once private players came in. CB Richards made a
recommendation to Indian Oil Corporation (IOC) to let Domino's operate in its petrol
pump premises. In December 2000, Domino's entered into an agreement with IOC to
provide food products at the latter's 7,500 outlets across the country. In early 2001,
Bhatia signed an agreement with Steve Forte, CEO, Jet Airways, to launch their
'ultimate deep dish,' and 'sweetie pie' products on Jet Airways flights.
Bhatia said, "For Domino's, sky is the limit. We like to deliver hot, fresh pizzas
everywhere, anytime. This tie-up with Jet Airways takes our commitment to customers
on the move even a step further."

What Went Wrong?

Domino's officials felt that there was nothing wrong with increasing the number of
outlets. Hari Bhartia, the Chairman of Dominos Pizza said, "We needed to grow to
effectively utilize the expensive back-end infrastructure (like distribution centres) that
we had set up by March last year (1999)." However, some analysts felt that the growth
had taken place on a business model that was not able to support it.

Unlike other fast-food chains, Domino's operated on company-owned outlets basis,

rather than franchisee route or a mix of both. Domino's officials argued that this
ensured quality and the ability to deliver on time, as the company promised. But this
also meant that Domino's had to invest a huge amount in real estate and equipment
for each of the new outlets. There were also other overheads such as salaries,
keeping inventories, and huge marketing expenses to attract consumers.

To earn a return on these investments, sales in each new outlet had to reach a viable
level quickly. Or else, the operation could soon become unviable. It also meant that
profitable outlets would end up subsidizing the non-profitable ones. Location of the
outlet was an important determinant of profits. Analysts felt that, in its race to
dominate the pizza business, Domino's took some wrong steps. For instance, the
outlets in Meerut and Ghaziabad were located in areas that were not very lucrative.
Moreover, some outlets were located far from their nearest warehouses.

This resulted in a logistical lapse and hence, huge transportation costs. Analysts felt
that the worst mistakes were made in Sri Lanka. Domino's invested US$2 million (Rs.
94 million) to open six outlets. To become viable, each outlet had to earn minimum
threshold revenue, which according to some analysts, was in the range of $ 210 - $
340 per day.
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This meant an average sales of 100-160 per day. The outlets would run into losses, if
it was not met. According to reports, three of the six outlets in Sri Lanka were under-
performing. Analysts felt that Bhatia believed in spending money to create hype about
the brand. For instance, Domino's opened 15 outlets on a single day in early 2000.

And, as it was customary to have outlets inaugurated by film stars, so Domino's spent
in the range of $6k - $11k on each film star to inaugurate one outlet. He also initiated
an all-India brand-building exercise. Besides TV campaigns, the exercise included the
installation of a unique, single toll-free number to order pizzas.

The number ensured that the call would be diverted to the nearest Domino's outlet
and the customer didn't have to remember numbers of specific outlets. Analysts felt
that the combination of national advertising and the single toll-free number led to
discontent amongst customers who were attracted to dial, but discovered that no
outlet existed in their city or town. Many analysts argued that the toll-free number
would have worked if Domino's had 1000 outlets. Also, the all-India campaign did not
justify the needs of specific outlets or regions.

Other analysts felt that there was nothing wrong with Bhatia's expansion plan.
Commenting about the expansion, a consultant associated with the expansion plan
said, "One has to take risks to reach economies of scale. Domino's also shook up
competition when it reached a target of 100 outlets."

However, Hari Bhartia, without whose approval the expansion could not go ahead,
insisted that the increase was only 100% in 2000-01. Domino's officials who
supported Bhatia's expansion plan were of the view that only 5% of all stores were
located in places where business was poor. This was a globally accepted trend. They
further argued that the profitable stores cross-subsidizing the unprofitable ones was
also a common practice globally.

Though Hari Bhartia was skeptical regarding the effectiveness of some of the
marketing initiatives taken up by Bhatia, many analysts argued that the campaigns got
new individual and institutional customers to the company. Gautam Advani, former
Chief of Marketing, Domino's explained, "...it was the advertising blitzkrieg that helped
the company move to the first place from the sixth in both Mumbai and Bangalore..."

Analysts were divided in their opinion about Hari Bhartia's role in all these
developments. While some felt that Hari Bhartia was kept in the dark, others felt that
he was a silent spectator. Still others felt that Hari Bhartia actually agreed with Pavan
Bhatia's strategy, only to make him a scapegoat when things went wrong. Officials
who supported Bhatia's expansion plan felt that Hari Bhartia was completely aware of
all the developments. They said that he had actively supported some of Bhatia's plans
including expansion of outlets.
However, others claimed that Bhatia did take some initiatives without prior consent of
Hari Bhartia. For instance, marketing expenses of about $1million were allegedly
spent without prior budgetary approvals. It was also believed that there were no
records to account for an expenditure of about $425k on the Sri Lankan operations.
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However, Bhatia's supporters claimed that such allegations were meant to malign him
and nothing of the sort could take place in a professionally run organization.

No Correlation Between Expansion and Sales

Pavan Bhatia's expansion plan would not have come under criticism had actual sales
matched the projections. Hari Bhartia said that there was a gap between the two.
According to some company officials, in mid 2001, the actual sales were half of
projections. As the sales were poor, the burden of huge expenses, in the region of
$2m impacted the bottom line.
This led to serious cash flow problems. A few suppliers said that Domino's was either
asking for an increase in the credit period or requested a go-slow on supplies. Others
added that although they had no problems with payments, they heard that Domino's
was going through a bad phase. One supplier said, "I too have heard adverse stories
about the company. I also know that Domino's is undergoing reorganization. But that
should be over in a few months' time and the company will be back on the course."
(Quote from Business World, July 9th 2001)

Analysts also felt that Domino's would be back on course soon, as pizza sales were
growing despite new stores coming up near the existing ones, at least in the metros.
For instance, the store in Greater Kailash in New Delhi was among the first to be
opened. Sales at this outlet grew though new stores were added in neighboring areas.
However, Domino's needed fresh funds to get out of the financial problems. Indocean
Chase, the venture capital firm which owned one-third stake in Domino's, said it would
continue to invest only after the existing problems, were sorted out.

To Grow or Not To Grow

By mid 2001, Domino's future growth plans were also slowed down. In early 2001,
Domino's had announced plans of adding 100 outlets every year, with a further
investment of $10.5 million in 2001. Hari Bhartia said, "The board had never approved
either the investment or the plan to start 100 new outlets in a year's time." The plan to
open new outlets in Bangladesh was also postponed. These corrective measures were
expected to be over by late 2001. Hari Bhartia added, "When you grow the way we did
last year, (2000), there are bound to be problems. Now, we are dealing with them." He
was also looking for a new CEO. .

REQUIRED:
Read the above case study. The responses for all Tasks in this assignment are linked
to this case study. Clear references and assumptions must be made when replying to
the questions to the case study, using Project Management Theory and best practice,
and where in the case study such reference is being made.

All answers will need a word Count of minimum of 200 words to a maximum of
500 words
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TASK ONE Assessment criteria K&U 1.1 : 5 marks

By using practical examples from the case study, explain your understanding on
the following points:
a) What is Project Management?
b) How does Project Management differ from Operations Management?
c) How can Project Management possibly integrate within the framework of
Operations Management, and vice versa?

TASK TWO Assessment criteria A&A 1.2, S&E 2.3 : 17 marks

Describe what ideally was required to be done in order for this project to start
on the right footing. How should have it been planned and done? Explain your
response in detail using above case study. (At least 5 requirements need to be
identified.)

Given your response, propose an additional 500-word Project Charter / Client

Brief for this project.

TASK THREE Assessment criteria K&U 2.1 : 5 marks

Explain the application of all the Project Management stages with clear
reference to where these were or could be implemented in a Project. Explain
in detail using the above case study.

Note: At least 5 stages need to be identified and explained.

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DOC-076-CORP-REV-D-ASSESMENT AND IV FRONT SHEET_INDIVIDUAL CRITERIA

TASK FOUR Assessment criteria A&A 2.5 : 7 marks

Define the Project Management Processes with clear references to the case
study. Make sure that you explain each in detail, the communication management
process for each stage, using the above case study.

TASK FIVE Assessment criteria S&E 3.1, A&A 4.4 : 17 marks

Create a detailed Work Breakdown Structure (WBS) with the different stages that
were required prior to launching the project in the above case study. Relate in
detail each identified stage within reference to the case study and how each stage
is used to mitigate risk in the project.

Note: At least 7 areas need to be identified and discussed in detail.

TASK SIX Assessment criteria K&U 4.2, 4.3 : 10 marks

You have been assigned a new employee to help you manage Risks on this
project. Your new member of staff unfortunately has no experience. Detail what
are the things you need to explain to the new employee or how to manage and
mitigate risk on a regular and on-going basis.
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TASK SEVEN Assessment criteria S&E 4.1 : 10 marks

Through an analysis of the case study, give your detailed views on possible
conflicts, miscommunication or otherwise, which seem to have arisen on this
project. Explain in detail each of your points, and how these were mishandled or
led to the failure of the project, and how/if these issues could have been handled
or resolved.

Note: The response needs to identify at least 10 reasons.

TASK EIGHT Assessment criteria A&A 2.4 : 7 marks

Debate how in this case study the main stakeholders should have been
handled. In doing so, you should cover how this project evolved worked, what
was working well, what wasn’t, and what could have been improved both from
an organizational and from an overall organizational structural point of view.

TASK NINE Assessment criteria A&A 2.2 : 7 marks

Calculate the Float / Slack analysis of a Project

Use the following information which is given about a new project:
Action / Task Predecessor Duration in Months
A - 8
B A 3
C A 15
D B,C 10
E C 7
F D,H 9
G E,F,I,J 14
H C 7
I H 5
J I 6
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Using the data in the table above, work out the following tasks:
1. Create a predecessor chart
2. Create a network chart and calculate for every task, Early Start, Late
Start, Early Finish, Late Finish, Start Slack and Finish Slack . Ensure to
include the legend.
3. Find the critical path, how long it is and mark it on the network chart
4. Construct the relative Gantt Chart clearly marking all the slack on the
project and the Critical Path.

The date of this presentation will be given to you at a later time – however you
should be preparing for this presentation along with your assignment.

TASK TEN Assessment criteria S&E 1.3, K&U 3.2 : 15 marks

INDIVIDUAL PRESENTATION

Consider either your organization or any other organization that you have
worked with. In a 7-minute presentation or less, individually, you have to:
1. describe its past but more importantly its present project governance model/s
2. make proposals on how such model needs to change in order to improve 2
OF THE FOLLOWING AREAS : risk management, communication, knowledge
management and decision making process. In doing so, you will need to give
examples and reasons.

All presentations for question 10 need to be made on Microsoft Power Point. A

copy of the slides has to be handed in during the presentation in monochrome.
Your presentation needs to sent to the Lecturer prior to the presentation.
Questions will be asked on your presentation so be prepared to explain and
defend your suggested model.