Acme Home Improvements de Mexico, SA de CV Project Charter AMBA640 Section 9044 Professor Jon-David Knode Team Two Joyce Buchanan Mamta Bumb Eugene Chung Tyler David Kalogeros-Treschuk Nico A Washington Project Title: Acme Home Improvements de Mexico City – New Construction Project Start Date: August 1, 2010Project Finish Date: August 1, 2011 Budget Information: The budget will be initiated at $20 million, with the majority of funds going to land acquisition, the initial establishment of the facility, and construction of the facility.
The various costs include planning and feasibility studies, insurance, taxes and safety equipment during construction, inspection and testing, building materials, operations and administrative staff, office space, travel and housing costs, inventory, labor and training, landscaping, and other miscellaneous expenses. Project Manager: John Doe, (52) (81) 83567580, John. [email protected] com Project Sponsor: Bob Johnson, CEO & President,Bob. [email protected] com Acme Headquarters, NC
Don’t waste your time!
Order your assignment!
Project Objectives/Purpose: Positioning Acme as an industry leader in home improvement arena by acquiring and constructing an ACME Home Improvement store in Mexico. To meet the goals set forth by Acme HQ, a store will be opened within 12 months in a major metropolitan area in Mexico City. In order to be as effective and efficient as possible, Acme will create a Project Management team to ensure that this process goes as smoothly as possible. The team will be responsible for the acquisition and construction of a100, 000 square foot store and an additional 10,000 square foot garden center.
The store must be designed to meet the current five major product groups which are plumbing and electrical supplies, building materials, hardware and tools, seasonal and garden/yard items, and paint, flooring and wall coverings, as each of their typical competitors maintains. The team will implement a comprehensive plan that will include all phases of the project such as land acquisition, site construction, site design, licensing and permits, and all human resource related functions.
The reason why this project was tasked is because Acme Home Improvements, Inc. is looking to enter into the international market by opening its first international store in Mexico City. The decision to expand in the international market will allow Acme Home Improvements, Inc. to remain competitive in the home improvement business and be at par with Home Depot and Lowe’s. A thorough market research conducted by Acme proved that Mexico City would be the most profitable location to start an international store.
To facilitate the expansion in the Mexican market, Acme Home Improvements, Inc. , has also sought advice from its regional counterparts as well as from experts in the numerous internal departments like finance, public relations, human resources, legal and marketing. Project Deadlines: The success of the store will depend upon timely completion of the project. The key milestones associated with the project are: |Milestones |Due Date | | Develop project anagement team | 06/01/2010 | | Devise project charter and plan | 06/30/2010 | | Obtain sponsorship and funding from HQ | 07/15/2010 | | Acquire Land | 09/01/2010 | | Obtain required licenses and permits | 09/30/2010 | | Prepare the site and lay the foundation | 10/15/2010 | | Build adjacent Garage | 12/01/2010 | | Build the walls, floor and roof of the structure | 12/01/2010 | | Install electrical and plumbing fixtures | 02/01/2011 | | Finish interior and stock inventory | 04/01/2011 | | Complete all paving and landscaping | 05/01/2011 | | Hire and train employees | 05/15/2011 | As you will notice, the project is anticipated to finish 2 months early. This is to plan for any unexpected or unforeseen circumstances that may arise. Approach: • A communications plan will be rolled out company wide to create employee investment in Acme’s first international endeavor. Those employed with the company will be welcomed to support the project where logistically feasible. • Project management will identify and partner with a Mexico City-based employment agency to source human assets necessary to project success (i. e. store management, administrative staff, etc).
Of consideration to Acme HQ are the cultural and linguistic barriers to be expected when managing an international project. Project management assumes that the majority of workers hired to complete this project will speak English as a second language potentially creating communication barriers. As such, the following steps will be taken to facilitate project success: • Managers relocated from HQ will be given a 1 week cultural sensitivity program before departure, and meet bi-weekly there after on site. • Elementary Spanish language classes will be compulsory for on-site management, and English classes will be offered as a benefit to interested workers. Translators will be hired to assist in communications between project management and local staff hired to complete the project. A marketing team will be assembled to roll out the Acme product in this new environment: • Environmental scanning will be done to ensure that Acme offers competitive prices to local competitors such as Home Depot, and that store design is aligned with the shopping habits of the Mexico City consumer. • Marketing materials such as TV and print advertisements will be created. • Promotions, coupon placement, etc. will be devised to attract business. • Competitive Analysis of other home improvement stores in the area. Others: • Store Design Team – Plan design of store Construction Team – Plan and schedule construction • Human Resource Team – Plan hiring, training and implementation of current company policies and procedures • Management Team – Plan all simultaneous projects from beginning to end (i. e. construction to opening day. ) Roles and Responsibilities: Project Manager: The project manager is responsible for the timely and efficient execution of the project proposal, ensuring that deadlines are met on target and under budget. Store Manager: The store manager is responsible for ensuring that the physical product meets Acme Standards as it is constructed, and later is responsible for staffing the store. This will begin with an Assistant Manager and Human Resources Manager.
Human Resources Manager: The HR manager will then assist in the procurement of department managers, and sales and support staff. Construction Manager: The construction manager will oversee all construction projects to include the building of the garage adjacent to the store. Marketing Manager: The marketing manager is responsible for managing the marketing resources of the company. This includes developing the organizations image as well as branding. Chief Financial Officer (CFO): The Chief Financial Officer is responsible for tracking project expenses and ensuring that the project budget is adhered to He/She is also responsible for tracking accounts receivable /payable and making sure that the necessary payments are made to vendors in a timely fashion.
Chief Operating Officer (COO): The Chief Operating Officer is responsible for implementing the various Acme Corporate systems by which the store will function including payroll, schedule, as well as working with department managers to procure the stores initial inventory. Project Administrator: The project administrator meets the various admin needs of the project operators, and staffs the office out of which each of them works. Key Assignments: To properly assess the project, key assignments have been made to increase the chances of success of the project. The first and most important task assigned is to the marketing team for a complete analysis of the market and industry. The market analysis factors in the current market size as well as the potential growth rate of the market.
Profitability is analyzed which also analyzes the logistics and costs to see if any additional cost cutting measures can be taken to increase profits. Trends must be viewed and analyzed to see what potential looms in the future and make changes to accommodate the trends. As we are working in a foreign country, culture sensitivity and understanding is an important aspect that needs to be addressed and learned for smooth interactions in Mexico. Therefore a special task team has been assigned to analyze the current business culture of Mexico as well as case studies of the impact that cultural sensitivity or faux pas have created opportunities or failures for international companies. This data will be disseminated to all non Mexican workers to try and create a more cohesive
In terms of preparing for the building and operations, assignments have been made for the legal team to research Mexican law as well as obtained a Mexican lawyer specializing in business on retainer to go over the legal aspects of the operations as well as making sure all the transactions of obtaining the needed licenses and permits go smoothly. A company architect has been assigned to go over the proposed building plans for the building and garage and make changes as appropriate to ensure good functionality as well as visibility. The research team has been assigned to go over the different builders and contractors to make sure the building is developed within time and within budget. Finally, the HR team has been assigned to create a new training program to help train new employees at this facility.