Introduction of Project Management

Project management is a proper practice required for the execution, planning, initiating, controlling and closing the work of a team. The main objective of project management is to achieve the goals and to meet the specific success criteria in the companies. The primary challenge in project management is to achieve the goals of the project under the given constraints. In the present work, the report deals with the suitable considerations for the improvement of Maxima LT that is a retailing company. Maxima LT is providing services across Bulgaria, Estonia, Lithuania, and Latvia through 508 stores. The growth turnover of the company has been increasing that increase the uniform quality of services. It is necessary to introduce reforms in the company to manage the requirements and to deal with the people. The present work evaluates three possibilities for Maxima LT including the establishment of research and development unit, recruitment of project management team and development of e-commerce website.

Maxima Case Overview of Project Management

Maxima LT is a leading retail company in the Baltic States. Maxima LT is handling all business operations in the targeted markets of Lithuania, Bulgaria, Estonia, and Latvia with the development of appropriate business management strategies and policies. HR management is managing the workforce of 23,000 employees working as service providers at outlets or managing business operations in the organization. The case is about the growth and improvement of business operations carried out by the Maxima LT. According to the given case scenario, the company had recorded a turnover of EUR 1.85 billion in 2006. However, it is expected to improve in 2007 by a 20% growth rate lower than the growth rate of 21% from 2005 to 2006. Maxima LT is concerned with the continuous growth of turnover and profitability as business expansion is the prime objective of Maxima LT. Considering the objective of growth company has developed a goal for the improvement of the turnover rate in 2012. According to the case, the company has the goal to reach at least EUR 4 billion turnover rate in 2012.   

Projects for Achievement of Project Management

Maxima LT company has a mission for the creation of value in the customer services. Company's vision is to become a highly valued retail company in the selected segment. Furthermore, the company has set some values about customers, stakeholders, united team, and just do it. The company need to have a focus on some projects which can make the company enable to achieve its mission, vision, and values. For this purpose, some new ideas are developed that can be selected as the next project by Maxima LT to achieve its mission, values, and vision. Three possible projects for Maxima LT are enlisted below with brief details:

·         Establish a Research and Development Unit of Project Management

The first project is to establish a research and development unit for the Maxima LT Company. Currently, the company do not have any specific R&D unit therefore, all operations department in the company has the responsibility to conduct research and find out important quantitative and qualitative information regarding the execution of business operations. Developing an R&D unit will support Maxima LT to conduct research and execute business operations in each department appropriately.

·         Recruit a Project Management team of Project Management

The second option selected for the improvement of turnover rate and other organizational mission, vision, and values is to recruit the project management team in the organization. Analysis of case study concludes that the company does not have any project management team thus the company is having issues in time management and resources management. To create value for customers and improve the turnover rate, the company must have to bring project management efficiency that is only possible by recruiting the project management team.

·         Create an e-commerce website of Project Management

Maxima LT is mainly focused on physical stores and outlets. However, the company have limited attention to e-commerce and e-marketing approaches. In this project, the company would develop an e-commerce website to interact with customers and collect their responses about offered services and products. E-commerce website itself would work as a source of e-marketing. This project also has a focus on the values and vision of the company. According to values and vision, the company want to ensure full customer support, listen to the community, offer what customer actually need, and become the most valued retail company in the selected segment. All these values and vision statement can be achieved by working on this project. Moreover, creating an e-commerce website would also increase overall sales and turnover of Maxima LT (Stackpole).      

Selection Methods for Projects of Project Management

Several project selection methods can be employed by the Maxima LT management team to select an appropriate project. Project selection methods that can be used for the above discussed project options are enlisted below:

·         Cost Benefit Ratio  of Project Management

The most commonly used method for project selection is the cost benefit ratio. A project having cost greater than profit cannot be selected as it would result in the financial loss of the company. Considering above mentioned projects options, almost all have the capability to generate profit more than cost. Recruitment will require the least cost in implementation however, it has the possibility to generate limited profit as compared to other options.    

·         Net Present Value of Project Management

Net present value (NPV) is another project selection method that also pays attention to the time value of money. According to this selection method, we can conclude financial requirements and cash flows through the whole project lifecycle. Maxima LT can use this method to evaluate possible options and the best one can be selected on the basis of higher NPV value. In this NPV method, project management will also consider cash inflows and outflows. However, during the selection process, the company also need to have a focus on the time span (Ducros and Fernet).     

·         Internal Rate of Return (IRR) of Project Management

Internal rate of return is another method for project selection. Maxima LT management can also use this method to calculate the possible return of each project after covering all cash inflows and cost of execution. In this method, management will set NPV as zero and all other cash flows (including positive and negative cash flows) would be added in the project evaluation. IRR is an appropriate method to evaluate the performance and returns of each project options thus a project with high return can be selected.

Selected Project Idea and PMBOK

In accordance with the results and outcomes of project selection methods application in Maxima LT, the idea to be implemented is to create an e-commerce website. The selected idea would be implemented and initiated a project by considering the initial process group and PMBOK. 5 PMBOK process groups are stated below:

1)      Initiating: A comprehensive statement of objective would be developed. The scope would be defined. Stakeholders would be selected and the contract would be drawn with them.    

2)       Planning: Planning groups would also play an important role in the implementation of the project. Planning groups would have some responsibilities such as developing a budget, selecting the workforce, developing project infrastructure, and timeline. In the planning stage, all important activities would be mentioned.

3)      Executing: Executing groups would work on the implementation of the developed plan. The new domain would be purchased. Designers would design a website with the support of developers. Furthermore, the development would be ensured by the experts of programming and website development. In this group, designers, developers, and other workers will work under the supervision of the monitoring group (Visual-paradigm.com).   

4)      Monitoring and Controlling: All important activities related to quality insurance would be done by this group. Monitoring and the controlling group would be headed by the managerial staff of the company. Managers and executives would monitor and control cost, quality, and resources utilization (Davidson).    

5)      Closing: The biggest challenge is the appropriate closing of the project. The project would be formally closed with closing contracts and releasing team. Additionally, a formally structured report would be presented to the stakeholders (Kerzner).

Conclusion of Project Management

 In the present case study of Maxima LT, different guidelines were considered for unit coordination. The case analysis is dependent on the evaluation of vision, values, and mission of the organization. The three proposed development possibilities include the establishment of a research and development unit, recruit project management team and the development of e-commerce website. Maxima LT works for the customers and to satisfy their needs. On the basis of the evaluation of all three possibilities, it is concluded that the development of an e-commerce website is the most suitable outcome that can be used for the progress of the company. The e-commerce website will bring the customers one step forward to the strong interaction with the service providers of Maxima LT. The evaluation of research shows that the company is responsible to satisfy customers and the best methodology is to provide online services to the customers. The services will overcome the geographical limitations, eliminate the travel and time cost, provide abundant information and gain new online customers by using the search engine visibility.