Critical Analysis of a Project Business Case
Critically analyse about the “Marine Parade Redevelopment”.
Notably, a vast number of projects can fail due to poor decision-making processes that are determined at the beginning of the project. Hence, it is important for the project team to prepare a good business case that can be helpful in proper decision making and avoid unwanted incidents. The business case is a tedious manuscript that is written by professional experts to present the details regarding the project that helps in decision making (Berman, 2007). Hence, it can be seen that Business case is prepared to provide all necessary information for decision makers to prepare the project plan. Therefore, it is important for the business case to provide all sort information appropriately to make correct decisions. It can be seen that a business case is prepared before planning the project milestones and presents an overview of the project plan (Campbell, 2009). Furthermore, it is used to present the benefits of the project and alternative options that are available while developing a project. Hence, the accuracy of a business case is necessary for proper decision making and successful completion of the project.
The paper has been developed to critically analyse a construction business case. In order to conduct the analysis, Marine Parade Redevelopment Detailed Business Case has been chosen that aims to refurbish an ecological park that is situated in Napier City, New Zealand (Marine Parade Redevelopment Detailed Business Case, 2015). Hence, the objective of the study is to present a literature review on business case theories that must be considered while creating a business case. Furthermore, the paper will critically analyse the business case of Marine Parade Redevelopment and compare the elements of the chosen business case with the previous literature. Along with that, recommendations will be provided to present the factors that are needed for a successful business case and justification will be drawn for the provided suggestions.
A comprehensive business case literature can deliver valuable justification and available sources of information technology to be utilised in a project. Through the identification of academic literature, a clear understanding of the costs and benefits of the project can be determined (Hyvönen, 2014). The information gathers through the literature can be utilised to find alternative solutions and investment scopes (Khalfan, 2013). Meanwhile, business case literature can identify the contributory factors to accumulate the substantial information and theoretical understanding relevant to any business project.
Business case development can be identified through the business case application of any business case project. First of all the case dimensions are needed to be clarified to achieve the major goals associated with the project (Akhavan, Jafari and Fathian, 2006). The business case application area will include technological orientation and organisational orientation. The technical orientation incorporates software application and infrastructure. Secondly, a diverse investment with strategic organisational benefits can deliver strategic alliances to any business case (Pasian, Sankaran and Boydell, 2012).
In a business case, there is certain business case content to be considered. In business case content some of the specific elements such as costs and benefits, investment tactics and business dimensions can be included (Richman, 2012). Significantly, the business case content has got some identified investment objectives, investment requirements, investment impact, investment risks and investment assumptions (Ma and Hipel, 2016). Such requirements and risks analysis of a project business case will define the success rate and continuity of a project.
In the business case process, there are certain documents and tasks to be included such as audit decision, high-level system and internal and external business drivers (Mostaghel, 2016). In the case process, identifying the issues is the key aspects. Secondly, the benefits of the business case can be evaluated (Jones and Fleming, 2013). Thirdly, the benefits of realisation plan can be highlighted to understand the valid risks and investment factors.
The business case goals have been identified at the highest priority to define the responsibility and demonstrate the impact of the tangible and intangible contributions associated with the project (Rose, 2011). Meanwhile, the case goals ensure the investment criteria, motivation, and involvement to balance the risks (Bevilacqua, Ciarapica and Giacchetta, 2009). During the project implementation, the case goals help to identify the funding resources and available personnel required for the project.
A sound business case has identified the associated risks such as financial risks, investment risks and risks of the staffing. The growing business complexity and weak partnership can be identified as the major risks to the dimension. Invariably, environmental influences to the business cases must be monitored to identify the unknown risks attached to the business case project (Mardani et al., 2015).
The business case has been based on a formal approval of the Marine Parade redevelopment in which $5.7 million is required to be invested. The paper will present an outline of the business case providing proposed investment procurement, funding opportunities, management agreements, project facilities and investment proposal for business procurement. The business case has demonstrated each of the five case models such as strategic case, economic case, commercial case, financial case and management case to identify the subsequent decision-making (Dyllick and Hockerts, 2012). The idea of the business project has been proposed so that 92 car parks have been shifted from the Marine Parade to the central city location. In this way, Marineland can be utilised for the multipurpose opportunity and the community and visitors of Napier can develop better opportunities in the redevelopment area. The aim of the redevelopment of the area is to create future tourism destination (Hodgson and Cicmil, 2008). Furthermore, the project will deliver a strong infrastructure to reuse the ageing Marineland area. The project can be completed in a strategic and cost-effective way so that there will be provisions to recreate facilities in Marine Parade Land. Moreover, such infrastructure can provide Napier to become New Zealand’s Kid’s Capital. Such strategic case will deliver the project recreational facilities to build all the modern facilities and amenity standards (Zouine and Fenies, 2014).
Meanwhile, the economic case attached to the business case can define the redevelopment options, investment objectives, developing recreation facilities, commercial policies of the project, and structure of redeveloping the Marineland (Marine Parade Redevelopment Detailed Business Case, 2015). The restoration of the Marineland can provide all the facilities to recreate interactive reef garden and marine amphitheatre so that the upgrade of the Marineland can improve the commercial structure. Though there is a certain amount of external and internal risks included to the project, preliminary examination shows that the design of the Marineland and recreation facilities will be perfect to meet the objectives (Min-Seok Pang and Woojong Suh, 2008). Marine animals can be naturally included in the project following all the legislations and regulations. The commercial case will be featured according to the Council’s Contract Policy and strategic procurement (Gupta and Levenburg, 2010). The construction of the project must follow certain guidelines and fair policies so that the environment of the Marineland must not be destroyed by any means. Some of the required services under the contract will be project management, internal fit-out, facility management, asset maintenance, commercial lease arrangements and significant project design and construction details (Salzmann, Ionescu-somers and Steger, 2015).
Eventually, the financial case and management case attached to the project must be presented to understand the budget and management facilities applicable to the project. At the initial stage, $5.7 million must be funded to the Parkland Reserves. Along with that, the operational cost of the ongoing project must be proposed to the Council to be funded (Hockerts, 2014). The Council must approve the capital investment of a long term plan. On the other side, the management case of the Marine Parade redevelopment has been divided into four different stages such as project initiation, project planning, project execution and project completion. Herein, the approval of the Project sponsors and Advisory Group has been required to make any changes if any issues have been identified during the project life (Seitz and Wells, 2006).
Comparing the current case with the presented literature is required to identify the gaps in the project business case. It helps to observe the loopholes that are present in the chosen business case to develop proper recommendations that are required for proper decision making. The comparison can be made concerning the necessary elements that must be presented in the Business Case for successful completion of the project (Collins, 2011). A model has been given below to present the elements of project business case that must be included in a project manuscript.
Figure: Elements of Project Business Case
Source: (Collins, 2011)
Considering the potential benefits, it can be seen that the business case of Marineland Redevelopment presents all benefits that can be derived from the project. It is needed to identify the targets that are to be achieved by working on the project. The business case lacks a service-oriented problem statement that must be presented to make the stakeholders aware of the current situation (Maylor, 2010). Though the business case presents the investment objectives, it does not present the mission and vision statement that is required to make the stakeholders aware of the prospects. The Marineland Redevelopment project business case lacks proper improvement plan that is needed to progress with each objective (Melton, Iles-Smith and Yates, 2008). The business case also lacks a timeline that must be presented for further consideration of the project team. It presents the completion date but does not define each activity according to particular deadlines that are required for successful completion of the project. The comparison has been presented in tabular format for better understanding in Appendix 1.
Considering the above critical analysis and comparison, it can be seen that the business case must have presented the vision and mission statement of project appropriately that helps to understand the future prospect of the project. Furthermore, there is a need for problem statement that can make the stakeholders aware of the current situation and why there is a need for conducting the project. There is a need of a proper improvement plan that can be used to carry on with the project (Mehta, 2007). The improvement plan will present the key performance indicators that can be used to judge the progress of the project and take necessary decisions while redeveloping the ecological park (Patel, 2008). The improvement plan will also indicate the necessary measures that must be taken by the project team and project manager in case of any uncertainty. Along with that, the business case needs to present the milestones along with the timeline that will present the deadline of each activity and stages (Kerzner, 2010). The timeline will help in the completion of the project in the decided time. It will help the project team to take necessary steps in case of any delay in completion of the milestones.
Analysis of the business case shows that it lacks different elements that must be presented in the project business case for proper planning and decision making (Deeprose, 2012). Hence, it is important for the professional experts to consider the elements that must be included in a business case for the success of the project. A properly planned business case reduces the chances of uncertainty and increases the efficiency of the project management team (Zeng and Zhang, 2011). Hence, the recommendation presented in the above paragraph can be justified because it will increase the efficiency of the project business case and help the stakeholders to take proper decisions.
Understandably, the investment benefits, costs and risks of the associated business case can provide valuable information about the case. For instance, the literature and case analysis has defined the absurd differences between the business cases. Also, the anticipated benefits and scopes of the business case can be measured through the analysis of the business case. Furthermore, the technological requirements and investment costs of the business case can be identified through the findings of the literature. The business case can define the opportunities and scopes of technological decision-making to provide rational arguments and justification for any particular investment. Hence, there is a need for a proper business case that presents all elements of the project to help the decision maker in a proper understanding of the risk and benefits of the project. The proper completion of the business case increases the efficiency of the project team and leads to successful completion of the success. It increases the chances of success of the project and attracts investors to take necessary risk.
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