Selection Methods of Projects
Maxima LT is known to be as the largest retail operator of trade in the whole Baltic States. In the year 2006, the organization has achieved a turnover of around 1.85 billion dollars. The organization has reflected on 21% growth in the turn-over from the previous year, that is 2005. It has been forecasted that there will be around 20 % growth in turnover in the coming year 2007. Maxima lacks any kind of dedicated unit for research and development (Burger and Zulch 2018). Maxima is known to be largest employer in whole of Baltics, and its strength is recognized by employees who show professionals, loyalty. These parameter are important for business of Maxima so that they can be leading retailer in the Baltic countries.
In the coming pages, an idea has been provided regarding three ideas which can be used for increasing the overall turnover. After that a selection has been done with respect to project and the required method that can be used for initiation of project based on selected method.
The organization has gained a turnover of 1.85 Billion EUR in the year 2006. The target of the organization is about reaching 4 Billion EUR by the year 2012. Maxima aims to create value by ensuring best prices, customer services and followed by assortment. Maxima is found to be most value retail firm in whole Lithuania. Maxima comes up with the strategic objective for carrying out recruitment followed by training them (Cheng, Malik and Sorooshian 2017). The mere focus is all about keeping the best employee followed by earning their loyalty. Maxima focus on enhancing the output by application of various automated work method. Being a part of business planning, Maxima aims to store and shopping centers which is placed in friendly locations. The major issues are related to decision-making which is inclusive of local populace size. Maxima has come with high level competency for new shop construction projects (Varajão 2016). The organization is focusing on ways for improving certain competencies that are needed for managing the strategic project.
Organization like Maxima require certain tools and solution which is needed by engineers so that they can become smart. The three methods by which Maxima can increase revenue are
Increase the number of customer of Maxima: One of the most suitable way for increasing the overall sales is addressing the new customers. If the origination is creating value for some group of people, then it is likely that associated people will get benefit from it. Most of the organization around the globe want new customer but acquiring them is much difficult (Karaman and Kurt 2015). Maxima needs to focus certain ways by which they can market their product. Maxima can help them by help them by analyzing the present process of buying. The whole process is found to be time taking and expensive in nature.
Three Ideas to Increase Maxima LT’s Revenue
Selling more number of products to the existing clients: It is considered to be as one of the fastest method and convenient method which is needed for improving the number. Maxima has already huge number of contacts and relationship in Lithuania. The organization needs to focus on areas by which they can improve their wallet share (Presley, Landry and Black 2018). Selling much more number of clients is not found to be easier. If an individual has displace in any competitors and substitution for selling. Maxima has a wonderful opportunity for creating value for earning their wallet share.
Investing in research and development: Research and development are known to be as one of the vital factor the organization which focus on proper knowledge needed for design and development. In addition, it also help in improving products, services and related technologies in the associated process. In addition to creating new products and adding features to the old one, there is needed for investment in R&D (Javed, Javed and Sajid 2015). Research and development comprises of certain number of activities which can be chosen by business for having the desired result. It will ultimately result in discovery of new product
One of the biggest decision for organization like Maxima would be making choice of one out of the three project. As soon as the proposal has been taken account, there are many factors which needs to be taken into account before decision making. It is up to Maxima to make choice for the most suitable one among the list of provided option. There is needed for keeping a track of goals and requirement of this organization. Making a choice for a particular project is considered to be vital one. At present, there are variety of selection methods which can be used by organization (Sarkar and Locatelli 2018). The provided methods come up with list of features and characteristics. There is list of variety of methods for project selection which comes up with concepts and principles. There are mainly two methods like benefit measurement and constrained optimization method.
Mathematical approach is generally used for large project. On the contrary, constraint optimization methods requires certain kind of calculation for analyzing whether a particular project should be rejected or not.
Maxima can easily go for cost-benefit analysis which will help in having much better decision making. Using this particular method, one can easily consider all the positive aspect of the project that are its benefits for organization. After that, it focus on deducting the negative aspect from the project (Gemino, Reich and Sauer 2015). Considering the result of the project, an individual need to make choice for the most viable option followed by rewarding it. The ratio in between cost and benefit can be used for defining ratio in between the current value for inflow or the invested cost in this project. The present value for outflow is the value that is returned from the project. Maxima needs to go for high cost-benefit ratio or minimum cost-benefit ratio is completely chosen over the others.
Choosing a Project for Maxima LT
At present, the organization lacks the dedicated R&D unit. Here, the organization unit is completely charged with responsibility for providing survey in some areas. This ultimately makes the proposal for improving the whole project. There is need for implementing R&D department in Maxima so that they can increase their turnover (Ponsteen and Kusters 2015). PMBOK stands for project management body of knowledge which is required for dividing the given R&D implementation project into five stages. All the stages are carried out in chronological way. When changes occur from the project manager side, then the whole project will proceed back to the planning stage. The process group of PMBOK are
Initiation: In this stage, the project is authorized and completely funded from different bodies. This particular stage occurs in the organization stages (Batselier and Vanhoucke 2015). It merely aims to define the business needs to the project which is required to be satisfied.
Planning: In this stage, project manager comes up with suitable project management plan that clearly states how the given project will be executed. Project Management plan needs to be completely approved from the project sponsor end for becoming official (Alaidaros and Omar 2017). All the required changes need to be completely approved as per the changes described in the change management stages.
Execution: In this project team will go on work that will ultimately help in producing proper project deliverables.
Control and Monitoring: It is the duty of project manager to ensure that the complete work is carried as per the plan. In addition, it also focus on deviation from track by making use of earned value for two aspect that is schedule and cost of the project (Varajão 2016). It also focus on proper monitoring of scope, vendor and any kind of important item. This is mainly done so that the project goes as per the plan.
Closure: The project needs to be closed in official way, analyzing final details and many other.
Conclusion
The above pages help in concluding the fact that the report deals with Maxima which has the target to reach EUR of 4 Billion by the year 2012. In the report, a list of aspects for the organization like mission, vision and values for the organization. Maxima does not have a proper R&D unit where each of the organizational units is being charged for the responsibility for carrying out survey in its respective areas. It aims to provide proposal which can be used for improving the projects. In addition, organizational improvements are completely assigned to different manager that exists in the organizational level. The major challenge which is being faced by Maxima is all about development of new shop for construction projects. At present, the organization operates around 370 retail outlets that are located in Lithuania, Estonia and two more places. Maxima LT comes up with an employee strength of 14,500 employees. On the contrary, in other countries it comes up with 8500 employees.
References
Alaidaros, H. and Omar, M., 2017. Software project management approaches for monitoring work-in-progress: a review. Journal of Engineering and Applied Sciences, 12(15), pp.3851-3857.
Batselier, J. and Vanhoucke, M., 2015. Evaluation of deterministic state-of-the-art forecasting approaches for project duration based on earned value management. International Journal of Project Management, 33(7), pp.1588-1596.
Burger, M. and Zulch, B., 2018. A construction project management knowledge model: The type and level of knowledge required. Acta Structilia, 25(1), pp.98-125.
Cheng, J.K., Malik, Z.A. and Sorooshian, S., 2017. Understanding the Interrelationship Between Different Knowledge Areas in PMBOK Through the Development of System Dynamics Model. The Social Sciences, 12(3), pp.473-481.
El Bajta, M., Idri, A., Ros, J.N., Fernández-Alemán, J.L., de Gea, J.M.C., García, F. and Toval, A., 2018. Software project management approaches for global software development: a systematic mapping study. Tsinghua Science and Technology, 23(6), pp.690-714.
Gemino, A., Reich, B.H. and Sauer, C., 2015. Plans versus people: Comparing knowledge management approaches in IT-enabled business projects. International Journal of Project Management, 33(2), pp.299-310.
Javed, S.A., Javed, S. and Sajid, A., 2015. Assessing the managerial perception of relative significance of ten knowledge areas on project success–a case from Pakistan. Journal of Management and Science, 5(3), pp.1-18.
Karaman, E. and Kurt, M., 2015. Comparison of project management methodologies: prince 2 versus PMBOK for it projects. Int. Journal of Applied Sciences and Engineering Research, 4(4).
Ponsteen, A. and Kusters, R.J., 2015. Classification of human-and automated resource allocation approaches in multi-project management. Procedia-Social and Behavioral Sciences, 194, pp.165-173.
Presley, S.S., Landry, J.P. and Black, M., 2018. Using Project Management Knowledge and Practice to Address Digital Forensic Investigation Challenges.
Sarkar, C.B. and Locatelli, M., 2018. A strategic integration between Agile and traditional project management approaches for a clear view on Project Closure in the Insurance industry: The Intesa Sanpaolo Life’s case study.
Varajão, J., 2016. Success Management as a PM knowledge area–work-in-progress. Procedia Computer Science, 100, pp.1095-1102.
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