Assessment 3 – Team Business

Case Study on Heartland

Equestrian Centre App
Project

By-
Aarzoo Gaur(30430393)
Vikas (30425517)
Pittala Sai Babu (30414540)
Nelluri Mohana Krishna (30423782)

1
Executive Summary
Nestled in Victoria's scenic Macedon Ranges, the Heartland Equestrian Centre is a beacon
for horse lovers looking for the best boarding, training, and leisure options. Heartland, with
its 100 acres of expansive facilities and well-established reputation, has faced some serious
difficulties recently. Heartland's business model has undergone a strategic reevaluation due
to a decrease in reservations for private lessons, retraining, and boarding horses. This
decline has been further compounded by the retirement of a highly regarded trainer and
increased competition from a recently constructed equestrian facility.

Equine Development Inc. suggests creating a custom mobile application that is suited to the
requirements and tastes of Heartland's customer base in order to address these issues and
to unleash unrealized growth potential. The planned Heartland Equestrian Centre App
Project's justification, goals, analysis, and suggestions are described in this business case.
The principal aim of the Heartland Equestrian Centre App Project is to leverage the seamless
integration of mobile technologies to transform customer engagement, optimize processes,
and propel revenue growth for Heartland.

The project's goals include making it easier for customers to sign up for and pay for riding
lessons, boarding, and retraining services online; giving them quick access to reservations
for dude ranches, trail rides, and future events; offering interactive features such as facility
maps, videos, and photo albums to showcase Heartland's amenities and services; and
implementing a user ranking system to gauge customer satisfaction and enhance service
quality. A thorough SWOT analysis reveals the strengths, weaknesses, opportunities, and
threats associated with the project. Heartland's established reputation and facilities, coupled
with a growing demand for mobile app solutions in the equestrian industry, represent key
strengths and opportunities for the project. However, challenges such as budget constraints,
technological limitations, and potential resistance to change among existing clientele pose
notable threats and weaknesses that must be addressed.

2
The project's fundamental presumptions and limitations are emphasized by critical
assumptions and constraints, which include the presumptions of a responsive target market,
sufficient resource availability, and management support. The three main limits that could
affect the project's execution and results are financial, schedule, and technological. A
thorough Work Breakdown Structure (WBS) breaks down the mobile app development
project into manageable tasks and sub-tasks, while the project scope establishes the
project's boundaries, deliverables, and milestones.

The project schedule, depicted through visual aids such as Gantt charts and network
diagrams, outlines the timeline, milestones, and dependencies for successful project
completion. Finally, a list of risks identifies potential threats and uncertainties that may
impact the project, accompanied by mitigation strategies to address or minimize their
effects. In conclusion, the Heartland Equestrian Centre App Project represents a strategic
initiative to revitalize Heartland's business operations, enhance customer engagement, and
position the organization for long-term success in the equestrian industry. Through a
comprehensive analysis of the project's objectives, constraints, financial implications, and
implementation.

3
Table of Contents
Executive Summary............................................................................................................2
Introduction.......................................................................................................................6
Business Case Report for: Heartland Equestrian Centre App Project...................................7
Project Background............................................................................................................7
Mission Statement and Project Objectives..........................................................................7
SWOT Analysis...................................................................................................................8
Strengths....................................................................................................................................8

Weaknesses...............................................................................................................................8

Opportunities.............................................................................................................................8

Threats.......................................................................................................................................8

Problem/Opportunity Statement.......................................................................................8
Critical Assumptions and Constraints..................................................................................9
Critical Assumptions...................................................................................................................9

Constraints.................................................................................................................................9

Analysis of Options and Recommendations........................................................................9

Analysis of Options.....................................................................................................................9

Recommendations....................................................................................................................10

Financial Analysis.............................................................................................................10
Initial Investment:....................................................................................................................10

Recurring Costs:........................................................................................................................10

Projected Revenue Streams:.....................................................................................................10

Return on Investment (ROI)......................................................................................................10

Net Present Value (NPV)...........................................................................................................11

Internal Rate of Return (IRR).....................................................................................................11

4
Project Scope and WBS (Work Breakdown Structure).......................................................12
Project Scope............................................................................................................................12

Mobile App Features:................................................................................................................................12

Exclusions:.................................................................................................................................................12
Work Breakdown Structure (WBS)............................................................................................13

Cost Model and Baseline..................................................................................................14

Initial Investment:....................................................................................................................14

Recurring Costs:........................................................................................................................14

Labor Costs:..............................................................................................................................14

Infrastructure and Technology Costs:........................................................................................14

Marketing and Promotion:........................................................................................................14

Contingency Reserve:...............................................................................................................14

Cost Baseline............................................................................................................................16

Budget Breakdown...................................................................................................................16

Expenditure Tracking.................................................................................................................................17
Financial Milestones..................................................................................................................................17

Schedule, Gantt Chart, and Network Diagram...................................................................18

Project Schedule.......................................................................................................................18

Gantt Chart...............................................................................................................................19

Network diagram......................................................................................................................20

List of potential risks........................................................................................................21

Technical Risks:.........................................................................................................................21

Resource Risks:.........................................................................................................................21

Schedule Risks:.........................................................................................................................21

Stakeholder Risks:....................................................................................................................21

5
 Market Risks:............................................................................................................................22

Conclusion:.......................................................................................................................22
References........................................................................................................................23

6
Introduction
The goal of the Heartland Equestrian Centre App Project is to help the Macedon Ranges,
Victoria-based facility overcome its obstacles. Due to the departure of a well-known trainer
and increased competition from a recently launched horse training centre, an all-inclusive
boarding and training facility has seen a decrease in boarding horses, private lessons, and
retraining bookings. Heartland is thinking about creating a mobile app to improve client
engagement, optimise processes, and boost income in order to resurrect the company and
take advantage of growth potential. The purpose, analysis, recommendations, and
justification for the suggested app project are described in this business case study.

Business Case Report for: Heartland Equestrian

Centre App Project

Project Background
Covering more than 100 acres, Heartland Equestrian Centre provides comprehensive lesson
programmes for riders of all levels as well as a full-service boarding facility. Heartland has
struggled to retain its clientele and revenue sources in spite of its wide range of offerings
and amenities, which include several arenas, stables, and trail riding alternatives. These
difficulties have been made worse by the recent resignation of a crucial trainer and
heightened competition, calling for calculated actions to revitalise the company.

Mission Statement and Project Objectives

The mission of the Heartland Equestrian Centre App Project is to develop a user-friendly
mobile application that enhances the overall customer experience, promotes engagement,
and drives business growth. The project objectives include:
 Facilitating online enrollment and payment for riding lessons, boarding, and
retraining services.
 Providing users with easy access to trail ride bookings, dude ranch reservations, and
upcoming events.

7
  Offering interactive features such as facility maps, videos, and photo albums to
showcase Heartland's amenities and services.
 Implementing a user ranking system to gauge customer satisfaction and improve
service quality.

SWOT Analysis
Strengths
 Established reputation and facilities.
 Diverse range of services offered.
 Potential for customer engagement through a mobile app.
Weaknesses
 Decline in boarding and lesson bookings.
 Dependence on traditional marketing methods.
 Limited web presence and technological infrastructure.
Opportunities
 Untapped potential in the mobile app market.
 Growing demand for online booking and payment solutions.
 Opportunity to differentiate from competitors through innovative technology.
Threats
 Intensifying competition from new entrants.
 Technological challenges and resource constraints.
 Potential resistance to change among existing clientele. (Team, n.d.)

Problem/Opportunity Statement

The Heartland Equestrian Centre App Project aims to solve some of Heartland's most
important problems, such as diminishing sources of income, heightened competition, and
inadequate technological integration. The initiative intends to revitalise Heartland's business
processes and position it for long-term success in the equestrian sector by utilising mobile
technologies and improving consumer involvement.

8
Critical Assumptions and Constraints
Critical Assumptions
 Assumption 1: The target market for the mobile app includes both existing and
potential clients of Heartland Equestrian Centre.
 Assumption 2: The development team will have access to necessary resources,
including technology infrastructure and expertise, to complete the project
successfully.
 Assumption 3: The management team at Heartland is supportive of the project and
committed to its implementation.
 Assumption 4: Users will adopt and engage with the mobile app, leading to
increased revenue and customer satisfaction.
Constraints
 Constraint 1: Budget constraints may limit the scope of the project and the
implementation of certain features.
 Constraint 2: Time constraints require the project to be completed within a specified
timeframe, potentially impacting the depth of development and testing.
 Constraint 3: Technological limitations or compatibility issues may arise during the
development and deployment of the mobile app.
 Constraint 4: Regulatory and legal requirements, such as data privacy laws, may
impose constraints on the design and functionality of the app.

Analysis of Options and Recommendations

Analysis of Options
 Option 1: Develop a custom mobile app tailored to the specific needs and
preferences of Heartland's clientele.
 Option 2: Utilize existing app development platforms or frameworks to expedite the
development process and reduce costs.
 Option 3: Partner with a third-party app development company to leverage their
expertise and resources in mobile app development.

9
Recommendations
 Recommendation 1: Pursue Option 1 to ensure that the mobile app aligns closely
with Heartland's brand identity and business objectives.
 Recommendation 2: Allocate sufficient time and resources for thorough market
research and user testing to validate the app's features and functionality.
 Recommendation 3: Establish clear communication channels and collaboration
frameworks between the development team and Heartland stakeholders to ensure
alignment throughout the project lifecycle.

Financial Analysis

The financial analysis assesses the costs and benefits of developing the mobile app for
Heartland Equestrian Centre. Based on the data provided in the case study, the following
financial metrics have been calculated:
Initial Investment:
The initial investment for the project is estimated to be $220,000 in year 0. This investment
covers the costs associated with app development, including technology infrastructure,
software licensing, and personnel expenses.
Recurring Costs:
Recurring costs for the project are estimated to be $10,000 in year 1, $15,000 in year 2, and
$15,000 in year 3, totaling $40,000 over the specified timeframe. These costs include
maintenance, updates, and ongoing support for the mobile app.
Projected Revenue Streams:
Projected revenue streams for the mobile app are estimated to be $130,000 annually over
the next three years, totaling $390,000. Revenue sources include enrollment and payment
for riding lessons, boarding reservations, retraining services, trail ride bookings, and dude
ranch reservations. (Tuovila)
Return on Investment (ROI)
The ROI for the project is calculated based on the initial investment and projected revenue
streams. Using the formula:

ROI=(Net Profit or Gain from Investment)/(Cost of Investment)×100%

10
ROI=(390,000−220,000)/(220,000)×100%
ROI=170,000220,000×100%
ROI=77.27%
Net Present Value (NPV)
The NPV of the project is calculated using a discount rate of 10% over the specified
timeframe. The NPV formula is used to discount projected cash flows back to their present
value.
Year Cash Flow Discount Factor (10%) Discounted Cash Flow
0 -$220,000 1.000 -$220,000
1 $130,000 0.909 $118,181
2 $130,000 0.826 $107,438
3 $130,000 0.751 $98,195

Sum of Discounted Cash Flows = $118,181 + $107,438 + $98,195 = $323,814

Net Present Value (NPV) = Sum of Discounted Cash Flows - Initial Investment NPV =
$323,814 - $220,000 = $103,814
The NPV of the project is approximately $103,814.
Internal Rate of Return (IRR)
The IRR of the project represents the discount rate at which the net present value (NPV) of
the project is zero. Using the cash flows and initial investment, the IRR can be calculated
using financial software or iterative methods.

Year Cash Flow

0 -$220,000
1 $130,000
2 $130,000
3 $130,000

Using financial software or iterative methods, the IRR for the project is calculated to be
approximately 17.65%.

11
Overall, the financial analysis indicates that the Heartland Equestrian Centre App Project
offers a favorable return on investment, with a projected ROI of 77.27%, positive NPV of
$103,814, and an IRR of approximately 17.65%. Additionally, the project is expected to
recoup its initial investment within 1.29 years, highlighting its financial viability and potential
impact on Heartland's bottom line.

Project Scope and WBS (Work Breakdown Structure)

Project Scope
The project scope defines the boundaries and deliverables of the Heartland Equestrian
Centre App Project. It encompasses the features and functionalities to be included in the
mobile app, as well as any exclusions or limitations.
Mobile App Features:
o Online Enrollment and Payment:
 Users can enroll and pay for riding lessons, boarding, retraining
services, trail rides, and dude ranch reservations through the app.
o Facility Information:
 Users have access to detailed information about Heartland's facilities,
including maps, videos, and photo albums showcasing amenities.
o Event Booking:
 Users can book upcoming events, such as clinics or competitions,
directly through the app.
o User Interaction:
 Users can provide feedback and ratings for services and facilities,
fostering engagement and improving customer satisfaction.
o Newsletter Subscription:
 Users can subscribe to Heartland's newsletter to receive updates on
upcoming events and promotions.
Exclusions:
o The app will not include e-commerce functionality for merchandise sales.
o The app will not feature social networking or community forums.

12
Work Breakdown Structure (WBS)
The Work Breakdown Structure decomposes the project into manageable tasks and sub-
tasks, organized hierarchically to facilitate planning, execution, and monitoring of project
activities. (wbs guide)

13
Cost Model and Baseline
The cost model for the Heartland Equestrian Centre App Project outlines the financial
framework for the project, including budget estimates, cost drivers, and expenditure
tracking mechanisms. It encompasses both one-time and recurring costs associated with app
development, deployment, and maintenance.
Initial Investment:
The initial investment for the project is estimated to be $220,000 in year 0. This investment
covers expenses such as technology infrastructure setup, software licensing, personnel
recruitment, and initial development costs.
Recurring Costs:
Recurring costs for the project are estimated to be $10,000 in year 1, $15,000 in year 2, and
$15,000 in year 3. These costs include ongoing maintenance, updates, hosting fees, and
support services for the mobile app.
Labor Costs:
Labor costs are a significant component of the project budget and include salaries, wages,
and benefits for project team members, developers, designers, testers, and project
managers involved in app development and maintenance.
Infrastructure and Technology Costs:
Infrastructure and technology costs include expenses related to hardware, software, cloud
services, and development tools required for app development, deployment, and ongoing
operations.
Marketing and Promotion:
Marketing and promotion costs cover expenses associated with promoting the mobile app to
Heartland's target audience, including digital marketing campaigns, advertising, social media
promotion, and promotional events.
Contingency Reserve:
A contingency reserve of approximately 10% of the total project budget is allocated to
account for unexpected expenses, scope changes, and project risks.

14
 Budget
Rate Phase or
CategorSubcategor Day Hour ($/h Unit $/ Materi Trave Other Total Category
y y Tasks s s r) s Unit al ($) l ($) ($) Cost ($) Title
Developme UI Developme
Labornt Design 10 80 $100 N/A N/A N/A N/A N/A $8,000 nt
Backen $19,20
d 20 160 $120 N/A N/A N/A N/A N/A 0
Fronte $13,20
nd 15 120 $110 N/A N/A N/A N/A N/A 0
QA
Testing Testing 10 80 $90 N/A N/A N/A N/A N/A $7,200 Testing
UAT 5 40 $100 N/A N/A N/A N/A N/A $4,000
Material Infrastruct
s Hardware $5,000 N/A N/A $5,000 ure
Software $3,000 N/A N/A $3,000
Fixed Infrastructur $15,00
Costs e N/A N/A N/A 0
$10,00
Marketing N/A N/A N/A 0 Marketing
Stakeholder $2,00
Tasks Interviews 5 40 $80 N/A N/A N/A 0 N/A $4,000 Analysis
Market $1,00
Research 10 80 $70 N/A N/A N/A 0 N/A $7,000
Requiremen
ts
Documenta
tion 5 40 $90 N/A N/A N/A N/A N/A $3,600
$3,00
Travel N/A 0 N/A $3,000

15
 Budget
Rate Phase or
CategorSubcategor Day Hour ($/h Unit $/ Materi Trave Other Total Category
y y Tasks s s r) s Unit al ($) l ($) ($) Cost ($) Title
Contingency $10,0 $10,00
OtherReserve N/A N/A 00 0

$113,0
Total 00

Cost Baseline
The cost baseline establishes the financial baseline for the project, including budget
estimates, expenditure tracking mechanisms, and financial milestones. It serves as a
reference point for monitoring and controlling project expenditures throughout the project
lifecycle.

Budget Breakdown
The budget breakdown for the Heartland Equestrian Centre App Project outlines the
allocation of funds across various project components to ensure efficient resource utilization
and financial accountability. The following table illustrates the distribution of budget across
different categories:

Category Allocation ($)

Development $80,000
Infrastructure $20,000
Labor $35,000
Marketing $15,000
Contingency Reserve $10,000

16
Total $160,000

Expenditure Tracking
Expenditure tracking mechanisms are crucial for monitoring and controlling project
expenses in real-time. By implementing effective tracking systems, the project team can
ensure adherence to the budget and timely identification of any cost overruns or variances.
The table below outlines the key aspects of expenditure tracking:

Tracking Aspect Description

Expense Monitoring Regular monitoring of project expenses against budget
Budget Variance Analysis Analysis of any deviations from the budgeted amounts
Expense Reporting Regular reporting of project expenses to stakeholders
Approval Process Defined process for approving additional expenditures
Real-time Tracking Utilization of software tools for real-time tracking
Systems

Financial Milestones
Financial milestones play a vital role in tracking the financial progress of the project and
assessing its overall health. These milestones provide stakeholders with insights into budget
utilization, revenue generation, and return on investment (ROI). The table below highlights
the key financial milestones established for the Heartland Equestrian Centre App Project:

Milestone Description
Budget Allocation Allocation of budget across various project components
ROI Threshold Achievement of the targeted ROI percentage
Revenue Generation Generation of projected revenue streams
Budget Utilization Utilization of budgeted funds within defined limits
Expense Control Maintenance of expenses within approved budget

17
Schedule, Gantt Chart, and Network Diagram
The project schedule, Gantt chart, and network diagram provide a visual representation of
the project timeline, task dependencies, and resource allocation. These tools facilitate
effective project planning, scheduling, and monitoring to ensure timely completion of
project deliverables.
Project Schedule
The project schedule outlines the sequence of activities and milestones to be completed
throughout the project lifecycle. It includes start and end dates for each task, as well as
dependencies between tasks.

Task Start Date End Date Duration Dependencies

(Days)
Project Initiation 2024-05- 2024-05- 5 -
10 14
Requirements 2024-05- 2024-05- 11 Project Initiation
Gathering 15 25
Design and 2024-05- 2024-06- 21 Requirements
Development 26 15 Gathering
Testing and QA 2024-06- 2024-06- 15 Design and
16 30 Development
Deployment 2024-07- 2024-07- 10 Testing and QA
01 10
Post-Deployment 2024-07- 2024-07- 10 Deployment
Support 11 20

18
Gantt Chart

19
Network diagram

20
List of potential risks
Technical Risks:
 Integration Issues: Compatibility issues between different software components or
platforms.
 Performance Challenges: App may not perform optimally across all devices and
operating systems.
 Security Vulnerabilities: Risk of data breaches or cyberattacks due to inadequate
security measures.
 Technology Obsolescence: Rapid changes in technology may render current
solutions obsolete.

Resource Risks:
 Staffing Shortages: Shortage of skilled resources or unexpected staff turnover.
 Resource Constraints: Limited availability of hardware, software, or other resources.
 Budget Overruns: Unexpected increases in project costs leading to budget
constraints.
 Supplier Reliability: Dependence on third-party vendors for resources or services.

Schedule Risks:
 Timeline Delays: Delays in completing tasks or milestones may impact the overall
project timeline.
 Dependency Failures: Dependencies on external factors or stakeholders may not be
met as planned.
 Scope Creep: Expansion of project scope beyond initial requirements leading to
schedule disruptions.

Stakeholder Risks:
 Communication Breakdown: Poor communication between stakeholders leading to
misunderstandings or conflicts.
 Changing Requirements: Stakeholders may change their requirements or priorities
during the project lifecycle.

21
  Resistance to Change: Resistance from internal or external stakeholders to adopt the
new app or processes.

Market Risks:
 Competitive Pressure: Increased competition from existing or new players in the
market.
 Market Demand: Uncertainty regarding the demand for equestrian-related apps or
services.
 Regulatory Compliance: Changes in regulations or legal requirements impacting app
development or operations. (risks-business)

Conclusion:
In conclusion, the Heartland Equestrian Centre App Project represents a strategic initiative
to address the challenges faced by Heartland and capitalize on growth opportunities in the
equestrian industry. By developing a user-friendly mobile app tailored to the needs of
Heartland's clientele, the project aims to enhance customer engagement, streamline
operations, and increase revenue. Through a comprehensive analysis of the project's
objectives, constraints, financial implications, and implementation strategies, this business
case report provides a roadmap for successful execution and delivery of the mobile app
project.

22
 References

1. 3 itech 7401 case study 2021-17 - Case Study Heartland Equestrian Centre App project
heartland. (n.d.). Retrieved from https://www.studocu.com/en-au/document/federation-
university-australia/leadership-in-it-project-management/3-itech-7401-case-study-2021-
17/34449983
2. Tuovila, A. (n.d.). Financial analysis: Definition, importance, types, and examples. Retrieved
from https://www.investopedia.com/terms/f/financial-analysis.asp.
3. (https://www.mindtools.com/amtbj63/swot-analysis, n.d.)
4. Work breakdown structure (WBS): The Ultimate Guide (with examples). (2024). Retrieved
from https://www.projectmanager.com/guides/work-breakdown-structure
5. (N.d.). Retrieved from https://www.indeed.com/career-advice/career-development/risks-
business

23