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Description of the Project qThis business plan will outline the opening of a new Dairy Queen franchise on Euclid Avenue in Cleveland, Ohio. Dairy Queen is a thriving national franchise with great name recognition. This project plan will discuss the construction requirements, franchise fees and timeline needed before operation can begin. The Euclid Corridor is a section of Euclid Avenue on the eastern side of Cleveland. Currently a streetscape project is taking place to beautify the corridor and increase the public transportation available. Ultimately, the project will connect the downtown Cleveland area with the University Circle area.
These are the two largest employment centers within Northeastern Ohio. In addition, Cleveland State University and Case Western Reserve University will be connected. This booming street project will connect a large amount of people and create opportunities for entrepreneurs. Problem/Result Statement qThe Euclid Corridor project is set to be complete at the end of the year 2008. The corridor will increase foot and public traffic within Cleveland. Due to the increase in people within the area, there will be a need for new businesses and restaurants.
This project will create a Dairy Queen Franchise in a fast growing, high volume area of Cleveland. In addition, building a Dairy Queen will allow the restaurant to serve items other than ice cream. During the winter months when ice cream isn’t eaten as frequently, the restaurant will be able to serve other fast food. This project will be profitable and income from the franchise will be sustainable. Table of Contents Executive Summary Page 3 Dairy Queen Company Information Page 4 Dairy Queen Treat Center Menu Page 5 General Franchise Information Page 6 Dairy Queen Treat Center Requirements Page 7 Ice Cream Facts Page 8
Euclid Ave Demographics Page 9 Mission Justification Page 10 Project Scope Page 11 Measuring Success and Best Practices Page 12 Tasks and Milestones Page 13 Risks and Mitigation Plans Page 14 Risk Matrix Page 15 Change Management Plan Page 16 Risk Management Learning’s Page 17 Communication Procedures Page 18 Forecasted Timeline Page 19 Project Closure Phase Page 20 Audit Process Page 21 Cost Estimates Page 22 Project Life Cycle Learning’s Page 23 References Page 24 Executive Summary Total Cash Required: $421,000 qKey Management Group, if selected, will begin doing business with the investment group August 2008.
The project will involve all implementation procedures required to open an ice cream shop on Euclid Ave, Cleveland, Ohio. qWith the current Euclid Corridor Project, foot traffic will be increased. This will also increase the chance for impulse buys. With no ice cream shop currently in the vicinity, KMG feels that brand recognition is important to maximize the impulse buying possibilities qKMG feels that by buying a Dairy Queen Franchise the brand recognition will be accomplished. A certain level of trust is instilled in the customer when they recognize the name they see on the sign.
Dairy Queen has a great reputation for providing not only great ice cream, but also a variety of frozen desserts. The Treat Center will also give you the opportunity to carry select food items for those that need a quick warm snack. There will truly be something for everyone. qThe financial forecasts included in this business plan demonstrate that a positive net income will begin from month one with a break-even point of the original investment in just over five years. qKMG plans to manage the project with the investors best intrest in mind at all times.
We will hold a bi-weekly meeting to discuss the progress of the project. During this meeting, we will review the project plan and where we are on the project plan, the main risks of the project and how we are managing the risks and also a color coding of each of the items of the project plan. The color coding will be the stop light approach with a Green, Yellow, or Red rating. Green signifies the step is on schedule for completion while yellow is there is reason to believe it will be a struggle to complete the task on time. Red is we know or strongly feel the task will not be completed on time. All materials for the bi-weekly meeting will be sent out via email to the stakeholders 24 hours prior to the meeting. A call-in number will be provided to the stakeholders so face to face meetings will not be required. If a face to face is needed, office space will be provided. qMost importantly we at KMG want the investor group to be satisfied with how the project was executed and the end product results. The Company q”Dairy Queen?? operators have been providing consumers with crave-satisfying treats and food. Dairy Queen restaurants are independently owned and operated franchised locations that have served customers for over 60 years.
The independent franchise operators of Dairy Queen restaurants and their employees, together with American Dairy Queen Corporation (ADQ), strive to provide customers with the best products and service possible”(DQ). Today Dairy Queen boasts over 5,900 restaurants in 24 countries. qDQ Treat Centers are a combination of the delicious Dairy Queen products with the premium Orange Julius fruit beverages. With the numerous treat options each customer is certain to find something that will be just perfect for them. These stores are placed in areas where there will be heave foot traffic and are great for impulse buy environments (DQ).
The Founders ??? According to the DQ Website qThe founders of the Dairy Queen system were men and women who introduced a new kind of dessert treat and, in the process, developed the foundation of the franchising industry. The history of the Dairy Queen system is a story of a unique product that created an industry. qOur phenomenal story began with a 10 cent sale of a then unnamed product on August 4, 1938, in Kankakee, Illinois. A father and son in the mix plant business in Green River, Illinois, had been experimenting with a soft frozen dairy product for some time.
They contacted Sherb Noble, a good friend and customer, who agreed to run the “all you can eat” trial sale at his walk-in ice cream store. Within two hours, he dished out more than 1,600 servings of the new dessert. qBack then, food franchising was all but unheard of, but the new product’s potential made it a natural for such a system. When the United States entered World War II in December 1941, there were less than 10 Dairy Queen stores. However shortly after the war, the system took off at a pace virtually unrivaled before or since. With only 100 stores in 1947, it grew to 1,446 in 1950 and then to 2,600 in 1955. Success for the Dairy Queen system is as simple today as it was in 1940. Satisfied customers lead to successful restaurants. Each owner of our independently owned and operated establishments worldwide are committed to nothing less than the slogan “We Treat You Right. ” The Product qDQ Treats & Eats oArctic Rush Frozen Beverage oBanana Split oThe Original Blizzard oBlizzard Cakes oBuster Bar oDilly Bar oDQ Cakes oDQ Cones and Dipped Cones oDQ Sandwich oMoolatte Frozen Blended Coffee oOreo Brownie Earthquake oPeanut Buster Parfait DQ Shakes and Malts oDQ Sundays oDQ Waffle Bowl Sundays oDQ Waffle Cones oOrange Julius oStrawberry Julius oHot Dogs oPita Sandwiches oPrimo Nachos Becoming a New Franchisee qWhen you buy a franchise you are buying the brand, this adds value to customers. qThe Franchise Company will provide you with manuals, training programs, and support. This will allow you to learn from other’s mistakes without having to make them yourself. qFranchise Companies have a staff dedicated to ensuring you get the assistance you need. They want to see your restaurant succeed as much as you do. The Franchise Company can assist in property negotiations, which could save you a lot of money in the lease agreement. oYou should aim to get the base rent as low as possible in the beginning. oTry to get the first 3-6 months rent-free while you are building up your business. oResearch the costs for taxes and building fees qThe Franchise Company will often provide suggested contractors, but make sure that you shop around to find the most suitable contractor. Competitive bidding can be used and will easily save you thousands in set up costs. qBuying a franchise with a large number or stores means there are many people just like you out there.
Use these resources to your advantage. Ask questions about possible savings tips on inventory and supply costs. qFranchise Companies have helped many people start their business, so trust the marketing plans that they give you. They are very experienced. Being new to an area, local advertising salespeople may approach you trying to tell you that you need to invest in additional marketing options. Have confidence in the plan the franchise set for you. This will save you from spending extra, unnecessary funding on initial marketing. qLabor Costs for running your business can be the largest expense you incur.
Follow the guidelines given to you by the franchise company. This will include the number of employees you need and the rate at which to pay them. Straying from this will turn your business from a winner to a loser in terms of profitability. qThe secret to success is to do your research. Take advantage of the information the franchise company is providing you. Use those people that have done this before you. Learn from the expensive mistakes they made, so not to make them yourself. DQ Treat Center Requirements qFranchise Fee – $25,000 oSite Review oLease Negotiations oTraining Opening Support Services qRoyalties ??? 6% Sales annually qAdvertising ??? 3-6% annually qLeasehold Improvement – $155,000 – $170,000 qEquipment – $145,000 – $160,000 qWorking Capital – $45,000 DQ Treat Center Qualifications qNet worth of $200,000 qLiquid Assets of $175,000 o$125,000 to be used as project equity Ice Cream Facts q$13. 9 billion dollars was spent on ice cream shop purchases qOver 90% of US households consumed frozen desserts qThe yearly average consumption of frozen dessert products is 23. 2 quarts per person qIce cream sales are highest in July and August qJuly is National Ice Cream Month Vanilla is the most popular flavor with chocolate syrup being the most popular topping qThe world’s first soft-serve ice cream machine was in an Olympia, Washington Dairy Queen. qThe US is the top consuming country of ice cream qIt takes an average of 50 licks to finish a single scoop ice cream cone q%5 of people share their ice cream with their pets Euclid Ave, Cleveland, Ohio Demographic Profile Euclid Ave1. 00 mi radius3. 00 mi radius5. 00 mi radius Cleveland, Ohio Jan. 2008 Population 2005 Estimated Population19,201164,079364,183 2010 Projected Population18,829159,207350,302 000 Census Population19,257169,195379,071 1990 Census Population23,515185,434410,203 Historic Annual Growth 1990 to 2005-1. 2%-0. 8%-0. 7% Projected Annual Growth 2005 to 2010-0. 4%-0. 6%-0. 8% 2005 Median Age36. 532. 834. 2 Households 2005 Estimated Households7,59066,127144,809 2010 Projected Households7,53264,967141,061 2000 Census Households7,65167,397148,936 1990 Census Households9,51073,829158,558 Historic Annual Growth 1990 to 2005-1. 30%-0. 7%-0. 6% Projected Annual Growth 2005 to 2010-0. 20%-0. 4%-0. 5% Population By Race 2005 Estimated White10. 8%22. 8%31. 3% 005 Estimated Black or African American86. 6%71. 8%63. 2% 2005 Estimated Asian or Pacific Islander0. 7%2. 9%1. 9% 2005 Estimated American Indian & Native Alaskan0. 2%0. 2%0. 3% 2005 Other Races1. 7%2. 3%3. 4% 2005 Estimated Hispanic1. 1%2. 2%4. 3% Income 2005 Estimated Average Household Income$25,521 $32,118 $40,504 2005 Estimated Median Household Income$17,257 $24,214 $32,994 2005 Estimated Per Capita Income$10,857 $13,467 $16,541 Education (Age 25+) 2005 Elementary7. 8%6. 0%5. 2% 2005 Some High School22. 6%19. 7%17. 2% 2005 High School Graduate37. 7%35. 0%34. 3% 2005 Some Collage16. 3%16. 1%17. % 2005 Associates Degree Only5. 0%5. 5%6. 2% 2005 Bachelors Degree Only6. 8%10. 1%11. 3% 2005 Graduate Degree4. 0%7. 6%8. 8% Business Number of Businesses1,0879,65319,276 Total Number of Employees22,340145,926282,217 Employee Population per Business20. 615. 114. 6 Residential Population per Business17. 717. 018. 9 Mission Justification qThe primary benefit of franchising is risk minimization. We choose a franchise to minimize risk and give project the best possible chance to succeed. With franchising we also gain instance name recognition, training and support that can help the project succeed. With the near completion of the new Euclid Corridor project there are business opportunities in this area. It is estimated that due to the project roughly $4. 3 billion fresh investment is being poured into the 4? -mile-long strip of land flanking Euclid Avenue, the city’s Main Street, between Public Square and University Circle. The spending, which encompasses everything from museums and hospitals to housing and educational institutions, includes projects completed since 2000, those now under way and those scheduled to start within five or six years. The project is changing the mood on the avenue by freshening a major piece of public infrastructure with new utilities, sidewalks, traffic lanes and transit stops. With the project due in October, investors are rushing to renovate empty buildings and buy vacant lots. If the momentum continues, blighted sections of Euclid Avenue could fill up with renovated apartments, retail shops, research labs, and medical and cultural facilities. Many projects are to break ground later this year or in 2009, just after Euclid Corridor is finished qAt CSU, campus planners redefined the school as a residential campus rather than a commuter school.
CSU’s new master plan envisions a residential campus with new apartment buildings rising north and south of glassy new academic buildings along the north side of Euclid Avenue from East 17th Street to the Inner Belt. qThe Euclid Corridor as a potential college town of CSU should have enough students, faculty and staff to support small business in the university’s immediate community. Project Scope qThe final deliverables of this project shall be a fully functional ice cream shop franchised from Dairy Queen and located on or near Euclid Avenue.
To achieve the project goal there are other deliverables shall be completed during the process: oEngage a franchise agreement with Dairy Queen. oSelect a site approved by DQ: understand DQ’s site requirement and coordinate with DQ’s lease manager to review potential sites for new location. oNegotiate and enter a lease contract to secure the selected shop building. oLeasehold improvements: DQ will provide guidance for the build-out design. oChoose products to offer. oSelect suppliers: the ice cream shop will not manufacture but resell ice cream from suppliers. Choose an accountant for bookkeeping, tax and general accounting work. oPurchase equipments: buy, lease, new or used. oRecruit personnel: 2 shift of crew and management. oTraining: DQ will provide both classroom and on the job training. oGrad opening promotion and on-going advertisement. oFinancial requirements: ??Franchise Fee ??Site Improvement: ??Equipment ??Open Inventory ??Working Capital qThe business plan shall be competitive enough to win the project and funding from the investor. Also the project may need additional loan from other lender if the investor does not provide enough start-up funding. Measuring Success Through out the project, goals will be set to ensure the project is inline with the budget, timeline, and success criteria from the investors. These goals will help the project management team measure the overall success of the project. qTo the team the measurement of success can be based on the following; the desired results agreed upon in the project plan were met within the allotted budget and time and the quality was as expected. qThe team also plans to work with the investor to define what “project success” means to them. It is important that the investor sees the project as a success as well as the project management team. Project success will come when the Dairy Queen is completed within budget, opens on schedule and satisfies customers with the quality of not only the product, but the atmosphere as well. Best Practices in Project Management qIn order to ensure success best practices in project management must be followed through out the life of the project. One best practice is to plan out the work with a project definition document (Tech). “The project definition is the primary deliverable from the planning process and describes all aspects of the project at a high level” (Tech).
The definition includes the project overview detailing the description and goals, the scope of the project, a risk and mitigation plan, and an initial time and cost estimate. As our project management team plans the ice cream shop project we will be creating a project definition document. This will allow the team to present all aspects of the project to the investors. Once this document has been approved and signed off on by the investors it will provide a guideline to planning and executing all of the detailed processes of developing the ice cream shop. Another best practice that our team will be utilizing is to define project management procedures up front (Tech). “The project management procedures outline the resources that will be used to manage the project” (Tech). We plan to manage each part of the project with great attention to detail. Our Project Management team will have a plan for managing any issues that arise for example, but not limited to, scope change, risk, and budget. This will allow us to inform investors on project status and provide informative answers and solutions to investor questions.
We plan to remain in control of the project throughout by consistently monitoring the budget, timeline, and quality of work that is being produced. Tasks and Milestones ItemTaskTime (in Days)PredecessorsMilestones 1Evaluate Current Net Worth2 2Complete DQ Application11 3PM Team Contract Writing7 4PM Team Contract Signing33u 5Secure Financing20 6Meet with DQ at their Headquarters52 7Final Site Selection145u 8Attend Corporate Training Session5 9Food Service Permit357 10Contact Suppliers and Set up Accounts 11Design Store Front217 12Construction Permit287,11 13Receive Bids/Hire Contractor147 14Build Store Front8413u 5Demo anything in the space not going forward213 16Plumbing315 17Electrical215 18Plumbing/Electrical Inspection1416,17u 19Drywall218 20Construction Inspections2814,19u 21Paint120 22Buy Equipment287,11 23Install Equipment1420,22 24Finishing work523 25Hire Staff289u 26Place First Supply Order 27Train Staff1425 28Final Inspection2824u 29Advertise5611 30Open Store114,23,27,28u Project Risks and Mitigation Plans qRisk 1: DQ does not find the investor to be a qualified franchise candidate. oIf the investor does not meet the established standards for opening a DQ Treats Store a new alternative concept will need to be thought out. The result would cause us to research new Ice Cream shop ideas. oThe potential loss due to the delay could be around $135,000 in gross sales oThe mitigation plan involves doing the research up front. We will work with both Dairy Queen and the investor to ensure that the investor’s worth qualifies for what DQ is requiring. qRisk 2: DQ’s project start timing doesn’t fit with the investors timing oThe potential cost could be $45,000 in gross sales each month delayed oThe mitigation plan for this risk would be ensuring the investor knows the typical DQ timeline when agreeing to buy a franchise.
If the investor is informed that their timing cannot be met they can make the decision to go in a differnet direction or to agree to DQ’s timeline. We will also work with DQ to see if any adjustments can be made to better apease what our investor had in mind for timing. qRisk 3: Project Site will require more renovation investment then budgeted for oThe potential cost would be $50,000-$100,000 oThe mitigation plan for this risk would involve working the investor as soon as we discover there is an issue with the existing space. We will go over the additional cost, time, and resources that would go into the additional renovations. Risk 4: Equipment specifications that are incompatible with location capabilities oThe potential cost could be up to $100,000 to have customized exuipment made to fit into the selected space. oThe mitigation plan for this risk would involve working with Dairy Queen to get the average equipment specification. We would also begin reviewing possible equipment options to know what size space would need to be leased. It would be important that this research is completed before any lease agreements are signes. qRisk 5: Project cannot be completed as scheduled oThis risk is very import as the project is scheduled at the beginning of June.
Any delay would result in less summer selling time. oThe potential cost could be $45,000 in gross sales each month delayed oThe mitigation plan for this risk would be to ensure that we are meeting our milestones. We need to effectively monitor issues an ensure that communication is kept between the investors and Dairy Queen. This will allow for quick reaction time for any issues that arise. Risk Matrix RiskLow —–> High Low —–> High Likelihood Change Management Plan qAny changes needed to be made to the plan or timeline will be communicated to the investors and project team as soon as the need for change arises.
Often the number one issue with change is acceptance. The top method of mitigating non-acceptance is communication. We will share as much information as possible to ensure the change is executed as smoothly as possible. Additionally, depending on the depth of the change, it will be take to the investors during the bi-weekly meetings for approval. qDuring the approval process for the change, we will discuss the possible outcomes of making the change or not making the change. We will also discuss the potential impacts on the overall project prior to executing any change.
Once the change is approved, it will be communicated to all in need to know. Risk Management Learning’s from Kerzner qOne key learning for Risk Management is that it is important to have a strategy on how you plan to complete the Risk Management process. It is critical to determine this strategy early so that all possible risks will be identified. Once the strategy has been established the team will know how to identify, plan, and assess any risks that may arise throughout the project. The Risk Management process, if follow correctly can save a project a lot of time and money (Kerzner, 718) .
We plan to use Risk Management throughout our entire project. We plan to compile a list of possible risks and continue to evaluate these risk, as well as identify any new potential risks throughout the life of this project. qHow to handle risk is another key learning for Risk Management. Risk handling involves how the team plans to deal with the risks that have been identified (Kerzner, 746). This process will help identify who is in charge of monitoring the risk and what types of resources will be needed to handle the risk should it occur.
Having a risk handling plan will allow our team to quickly react to possible risks as they arise. We will have a procedure in place to communicate with both the investor and Dairy Queen should additional costs or resources be needed to mitigate the risk. qRisk Monitoring is a third key learning that we plan to utilize throughout our project implementation. Risk Monitoring requires tracking and evaluating how effectivle we are handling risk (Kerzner, 474). Monitoring risks closely will allow us to consistantly re-evaluate the current risks and possible bring light new risk that were not initially identified.
We will use the establised budget and schedule to monitor the project and any risks associated with it. Communication of Progress qCommunicate with all affected parties. qEvery message should be audience-specific qTake advantage of all of the methods of communication available to us qSet appropriate expectations qProvide regular, unbiased reporting of project progress. qMeet frequently and regularly with project managers regarding developments and tactical concerns. qOffer opportunities for private communication as appropriate. qHold project-wide meetings at important milestones. Communications matrix
AudienceMessageMethod/ChannelTiming/Frequency Core Project TeamDetails; Task-related;Project progressDeliverablesTeam meetings, task-related meetings; Individual meetings;Task/review-specific emailRegularly-scheduled team meetings (1/wk);And as needed DQ LiaisonsPolicy-related issues; Project progressGroundwork via email; consensus work via group meetingsRegularly-scheduled team meetings (1/2wks);And as needed InvestorProject progressDeliverablesInvestor meetingAfter each milestone. Forcasted Timeline qMonth 1, August 2008 oApply for Franchise oSign Contract with KMG qMonth 2, September 2008 Financing Secured oMeet with Dairy Queen in Minnesota qMonth 3, October 2008 oAttend Corporate Training Session oApprove Store Front Design oFinal Site Selection Made qMonth 4, November 2008 oObtain Food Service Permit oPlumbing/Electrical Pass Inspection oDrywall Completed qMonth 5, December 2008 oEstablish Initial Supplier Contact and Set Up Accounts oObtain Construction Permit oPurchase Equipment qMonth 6, January 2009 oNothing Due qMonth 7, February 2009 oStore Front Complete qMonth 8, March 2009 oConstruction Pass Inspection oPaint Interior oBegin Grand Opening Advertising Month 9, April 2009 oInstall Equipment oFinishing Work oHire Staff oPlace First Supply Order qMonth 10, May 2009 oTrain Staff qMonth 11, June 2009 oPass Final Inspection oOpen Store Project Closure Phase qProject Closure Phase is the last phase of the Project Life Cycle. The commencement of the Project Closure Phase is determined by the completion of all Project Objectives and acceptance of the end product by the investor and Dairy Queen. Project Closure includes the following tasks: oRelease of the resources, both staff and non-staff. oClosure of any financial issues like labor, contract etc. Collection and Completion of All Project Records. oArchiving of All Project Records. oRecording Lessons Learned and conducting a session with the Project Team on the same. This helps in the productivity improvement of the team and helps identify the dos and don’ts of the Project. oCelebrate the Project Completion. Its party time folks!!! qThe basic process of the Project Closure Phase involves: oAdministrative Closure. This is the process of preparation of closure documents and process deliverables. This includes the release and redistribution of the Project Resources. Development of Project Post Implementation Evaluation Report. It includes ??Project Sign-Off ??Staffing and Skills ??Project Organizational Structure ??Schedule Management ??Cost Management ??Quality Management ??Configuration Management ??Customer Expectations Management ??Lessons Learned qLessons Learned form an integral part of the Project Closure Phase. It helps answer the following typical question during Project Closure. ??Did the delivered product / solutions meet the project requirements and objectives? ??Was the investor satisfied? ??Was Project Schedule Met? ??Was the Project completed within Budgeted Cost? Were the risks identified and mitigated? ??What could be done to improve the process? qThe outputs from Project Closure Phase provide as stepping-stones to execute the next projects with much more efficiency and control. The Audit Process Four Distinctive Phases: 1. Planning qThe Objectives and Scope Document is prepared and presented to management as a contract for the work to be performed. This document will outline the objectives and parameters of the audit. qThe audit scope document should clearly define the roles and responsibilities of the personnel, audit procedures, and milestone dates. Timing of project audit: key project stages and after implementation. 2. Field Work qAuditors schedule times to interview individuals responsible for maintaining and preparing financial and operational reports. qAnalytical audit techniques are used to test, analyze, interpret and corroborate documentation of controls. qRegular update meetings are scheduled during field work to communicate progress to date and to discuss potential findings. 3. Communication of Results qThe distribution list for the audit report is included on the Objective and Scope Document Report. Audits go only to those people who need to know. The results of the draft audit, findings and recommendations, are submitted to management for discussion in draft report at an “exit meeting”. A 5-day comment period is used by the auditors to allow the individual to respond in writing to facts and recommended actions in the report. 4. Follow Up qSignificant issues in a audit report could warrant a Post Audit Review (PAR) conducted within two weeks of the audit. Cost estimates qEstimated project costs for a typical DQ Orange Julius Treat Center store include: Type ofExpenditureAmount for Lease FacilityMethod of PaymentWhen
DueTo Whom Payment Is to Be Made Initial Franchise Fee$25,000Lump sumAt the time when submitting the franchise applicationADQ Initial Training Fees and Costs$5,000Lump sumPrior to trainingADQ Travel and Living Expenses for Training Program$5,000Lump sumAs incurred during programsTransportation companies, hotels and restaurants Leasehold Improvements$162,500As incurredPrior to openingLandlord, third party suppliers and contractors Design Intent Plan and Architectural Seal$8,000Lump sumAs incurredLocal architect Equipment (including Signs and Cash Registers)$152,500Lump sumUpon placement of orderThird party suppliers Training Inventory$3,500Lump sumPrior to openingThird party suppliers Opening Inventory$7,500Lump sumPrior to openingThird party suppliers Utility Deposits, Business Licenses and Government Charges$4,000Lump sumPrior to openingThird party suppliers; local municipality Attorneys’ Fees$3,000Lump sumAs incurredAttorney Additional Funds ??? 3 Months$45,000As incurredPrior to opening and as incurredADQ; employees; third party suppliers TOTAL$421,000 qInvestment by franchisee as equity: $125,000 Project life Cycle Learning’s from Kerzner qUp to this point the project has gone through the first two phases of project life cycle: conceptual and planning phases.
The scope of the project is defined and franchising is chosen as the approach to deliver the outputs. A detailed plan is drafted after the project team conducts due diligence on Dairy Queen’s franchising business. Now, the project can go into the implementation phase, if the investor accepts it. qThe key points that the project team learned during the first two phases can be summarized as follow: oThe ability to control the project is highly dependent on the accuracy and completeness of the plan, e. g. , well-documented schedule and budget with appropriate structure and detail. This project is built on the basis of DQ’s franchising experience. Perform risk management planning to provide for unanticipated risks and to make the whole plan more complete. The activities of identifying, quantifying, and planning to mitigate risk yield a better, more completely planned project. qProject Plan has buy-in from the stakeholders, especially the team members and investor. Ample communication among the parties is essential for the success of the project. References DQ Franchise Disclosure Document. July, 2008. American Dairy Queen Corporation. Expensice Mistakes to Avoid at a New Franchisee. October, 2007. Jeff Elgin. July 29, 2008 [http://www. entrepreneur. com/franchises/buyingafranchisecoachjeffelgin/article185012. html].
Franchising Something Differnet. 2006. Dairy Queen. July 16, 2008 [http://www. idq. com/franchising/]. Ice Cream Consumption. MakeIceCream. com. July 31, 2008 [http://www. makeicecream. com/contriv. html]. Kerzner Ph D, Harold. Project Management A Systems Approach to Planning, Scheduling, and Controlling. Hoboken: John Wiley & Sons,Inc. , 2006 Project Managers: Learn Lessons from Past Projects. Visitask. July 27, 2008 [http://www. visitask. com/Lessons-learned. asp]. Project Teamwork. Visitask. July 27, 2008 [http://www. visitask. com/project-teamwork. asp]. TechRepublic Project Management Best Practices. April, 2001. TechRepublic, Inc. July 16, 2008