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Templeman feasibility report Essay

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Executive summary
This document describes the components of the proposed golf resort and treatment centre in the Dalmatian coast, Croatia. The analysis consists of a description of how to perform a project feasibility study in terms of the opportunity, the anticipated client, the Dalmatian coast as a tourism destination and Croatia as a whole, the design of the resort and the capacity of Rosehill Enterprises as the project proponent. The document describes the sequence of research activities in the feasibility study. The contents of the brief are then outlined, as well as the criteria for selecting the development team.  The anticipated planning issues such as Budgeting, Designing, Scheduling, and Managing Construction, are described in terms of their technicalities. The opportunities to be explored during the opening of the project are also identified. Terrorism as an international concern is enumerated, and the asset management options available for our selection are explained.

Project feasibility and how to find out
The proposed golf resort and treatment centre’s clients, according to the ideas you have put forward, will consist of travelers seeking new holiday destinations with an added value. Therefore, there is need to carry out a demand analyses to ascertain that the clique of consumers of our interest exist in the market, and to what extent they are likely to visit the facility. The fact that Croatia is an upcoming tourism destination, according to Bloom brothers, is an obvious advantage. However, we need to clarify the real situation on the ground especially bearing in mind the recent Balkan wars. There is no doubt, however, that this is a wonderful business prospect if all facts about the destination are well understood. My suggestion is to research the opportunity in terms of the following key components, which are also well elaborated by Rummler (2001) in his Project Feasibility Guide:

·         The tourism resort as a business opportunity

·         The client

·         The Dalmatian coast as a tourism destination and Croatia as a whole

·         The design of the resort

·         The capacity of Rosehill Enterprises

Let us look at each of the components independently. We have found a new opportunity in the name of a tourist resort in the Dalmatian coast. First, we need to ask ourselves whether this new business opportunity is real. For now, we are not sure since our reasoning is based on your observations during a recent tour of the area. We need information on the popularity of Croatia as a tourism destination, especially focusing on the Dalmatian coast. This can be found from various tourism agencies and global tourism rankings.  Additionally, although we understand that our type of tourism product has not been done in Croatia before, we need to have a picture of the level of demand for such product globally. Connected to this, is our proposed project the best given the prevailing circumstances or what other alternatives might we be willing to explore? Even if there is a demand, is it significant enough to contribute to an adequate rate of interest? We also need to know what indicators we can use to measure when the demand is going down, and hence when we are ready to sell out.

Our next component regards the client. The most basic question we should ask ourselves is whether we have the right type of client. If so, our client should be able to enjoy their stay at our proposed resort without any complaint. The revenue brought in by the client should not only cover the cost operations but should also leave a comfortable profit margin.

The next component deals with the project environment. According to research results of the Bloom Brothers, the Croatian workforce is well educated and capable of providing service. This is advantageous to us, as it will cut down on labour force since we don’t need to import labour force. However, the internal problems prevailing (post war issues) may hinder our operations to a certain extent for a while. This is not very good for business. What we need to know is whether the risks involved are within acceptable standards. The fact that the Croatian government is supportive of upcoming tourism initiatives is also a plus for us.

Our fourth component has to do with the project design. A golf resort requires adequate land, and we need to find out whether the land is available in Dalmatian coast, otherwise our proposed project will be greatly compromised. Of particular importance is the internal design of the project, number of staff required etc.

Our fifth and final component is about us as Rosehill enterprises. We need to verify that we have the capability and capacity to successfully complete this project within an acceptable time frame. We also need to ascertain that we can comfortably perform the business with a reasonable amount of effort. Finally, we need to be assured that the proposed business will yield our target margins.

In conclusion, therefore, the assessment will answer three main questions. First, is the tourism potential in the area capable of putting us in business? Secondly, is there a reasonable chance that the project will succeed? Finally, are we capable of running the proposed business?

If the answer to all of these questions is yes, then we are ready to go. If the answer is yes but there are some concerns, then we should come up with proposals to reduce risks. If the answer is no, then we should discontinue the project, but with explanations why.

Sequence of activities to research the opportunity and implement it
Regarding researching the opportunity, the first step would be data collection. This will involve gathering all of the information required to gain a thorough understanding of the opportunity. Secondly, the data will be analyzed, and this involves analyzing the information gathered and identifying any gaps and deficiencies as far as tourism in Croatia is concerned. Thirdly, factors that have led to the opportunity will be identified. These include the ending of the war and the warm conditions of the area, coupled with availability of water-based leisure activities and government support.  The next step would be to identify the underlying reason the business opportunity. Implementation, on the other hand requires that we assess the requirements of the project and draw out an implementation plan, which prioritizes activities. This has been explained in detail in subsequent sections.

Contents of the brief
The brief will be composed of the following key components:

·         Name of the project

·         The release date of the brief

·         The author(s)

·         Executive summary, which will consist of a summary of Purpose, Scope, Funding required and Timeline of the project. A maximum of 200 words is recommended.

·         Background to the project

·         Objectives of the project

·         Methodology

·         Scope of the project

·         Deliverables of the project

·         Project organizational structure

·         Communication plan

·         Quality plan

Members of the development team
There is need to carefully select the members of the development team. The number of the planning team will be decided depending on the tasks at hand. Team members will be expected to have a clear understanding of the project’s objectives. Additionally, each person’s role and expectations should be clearly defined. A high degree of cooperation and a high level of trust between the team members are amongst the requirements of a good development team. My proposal is that the development team be composed of a representative from the company (preferably from the top management), a representative from the construction management firm, the architect and representatives from other firms involved in project implementation.

Anticipated planning issues
There are a number of planning issues we expect to encounter during the planning process. These include Budgeting, Designing, Scheduling, and Managing Construction. With regard to planning, we have a need to determine a realistic budget before the design phase to evaluate project feasibility, as well as to use as a tool to choose from among alternative designs or site locations. Design, on the other hand, is one of the most important things, and we need to ensure that the desired facility will function as envisioned and that the design program successfully fulfills the needs of the client. Another planning issue we are likely to face is scheduling. The completion date of the project is critical, considering that this is a new project. We require a realistic assessment of project duration and sequencing needs to be performed early in the planning process. We also need to monitor the schedule throughout construction.

Management of the construction
Hillcrest development Inc (2008) recognizes two types of construction management: agency and at-risk. The choice of a construction management (CM) option depends on the project itself and the risks involved. In the former type (Agency CM), a company is contracted by the owner of the project and becomes exclusively responsible to the Owner and acts in the Owner’s best interests at every stage of the project, offering advice, free from any conflicting interest, on all facets of the project. In the later case, the construction manager acts as a consultant to the owner of the project in the development and design phases, but as a general contractor during the construction phase. As mentioned earlier, the choice of the method will depend on the risks and the issues in question.

Preparation of the opening

The opening of this project should be both timely and unique. This is because we not only want to use the opening of the resort to mark the beginning of business but also as an advertising opportunity. This is especially so bearing in mind that this is the first project of its kind in Croatia. Because the Croatian government is in support of tourism-based activities, it would be to our advantage to explore the option of inviting the tourism minister in Croatia in the function. This will create awareness in the whole country, and tourist agents in Croatia are likely to be interested. Another concern is regarding the timing of the opening. It should be done just before the high season to ensure that we capitalize on high tourist arrivals in the country.

International and cultural issues to be considered
One of the main threats to tourism in the world today is terrorism. Holidaymakers are becoming increasingly selective of their holiday destinations. Several countries have lost out massively on revenue as a result of the terrorism threat. Travel advisories have often been used to warn travelers against visiting countries which are threatened by terrorism. As such, we need to assess what the situation is in Croatia. As regards the culture, there is need for us to understand the values of the people in the Dalmatian coast, so that our project is not met with hostility. This can be found in literature.

Asset management techniques
The main goal of our asset management technique would be to guide the implementation of the project. As such, the asset management technique should periodically assess the level of implementation of the project, set a minimum criterion for data and information at all levels, estimate the cost of implementation and set timelines for the next level of implementation. According to Vanier (2000a) a typical asset management plan consists of six main components. First, the asset management plan should detail what the project owns. We should come up with an elaborate method to determine the project’s assets at different time periods. Secondly, we need to assign realistic values to the assets of the project. The importance of this is to ensure that we have a breakdown of asset disciplines, which will aid assigning maintenance budgets accordingly. The next issue concerns deferred maintenance, which seeks information that provide an additional metric allocation of the maintenance fund. The strength in this component lies in the fact that knowing the amount of deferred maintenance can help us to make realistic decisions on the amount of money required to bring the maintenance and repair under control. Next, we need to have detailed information about the asset that will add an additional metric for maintenance prioritization. This defines when capital renewal should occur. This can be calculated as a function of projected maintenance and repair expenditures. Finally, we will have to come up with a method of prioritizing what to fix first.  It is worth appreciating that maintenance prioritization is not a simple task (Vanier 1999, 2000a) and advanced techniques such as multi-objective optimization are sometimes required to choose between deserving yet competing project assets, and to schedule their maintenance order.

References
Rummler, G. A. (2001) Project Feasibility Guide. The Performance Design Lab. Retrieved  29th November 2008 from www.performancexpress.org/0304/images/Project_Feasibility_Guide

Management hub.com (2008) Stages in Project Management Team development. Retrieved  29th November 2008 from http://www.management-hub.com/project-management-team.html

Hillcrest development Inc (2008). What is construction management? Retrieved  29th November 2008 from www.hdihotels.com

Vanier, D.J. (1999) Why Industry Needs Asset Management Tools, Innovations in Urban

Infrastructure Seminar of the APWA International Public Works Congress, Denver, U.S.A,

pp. 11-25, (http://www.nrc.ca/irc/uir/apwa/apwa99).

Vanier, D.J. (2000a) Asset Management 101: A Primer, Innovations in Urban Infrastructure

Seminar of the APWA International Public Works Congress, Louisville, KY, U.S.A, pp. 1-14 (http://www.nrc.ca/irc/uir/apwa/apwa2000).