Business Proposal Healthy lifestyle consultation Harvard Case Solution & Analysis

Business Proposal Healthy lifestyle consultation Case Study Solution

Financial Estimations

App designing is a complex procedure, because it requires equipment as well as experts’ knowledge along with some heavy investment. The total projection for the project is Rs: 1,160,000. The heavy investment is comprised of the total fixed cost, which will be minimized by increasing the number of sales. App designing would require approximately Rs: 300,000, because this app will be comprised of heavy features with daily functions, along with number of options for booking and consultation. (See appendix 4 for project estimations).

Following estimation has been projected for the proposed application,which has the tendency to harness the company with the given problem.

Preliminary High-Level Estimates Rs
App & website including 3 email account + online purchasingRs300,000
Domain & hosting 1 yearRs15,000
Dash board login data entryRs240,000
Legal fees & documentationRs40,000
LaptopsRs50,000
SalaryRs305,000
Marketing online social media + SMSRs80,000
Total Fixed CostRs1,030,000
ContingencyRs30,000
Initial Working CapitalRs100,000
Total Project CostRs1,160,000

Project Team

To cope up with this complex problem;the company is going to develop a new application which would not only be user friendly but will also add value to the company’s consulting services.

For developing this application; the company would need to hire some employees based on the project requirements. The company would need app developer for application designing, IT experts for managing day to day requirements, finance manager to deal with project financials, number of subordinates for smooth operational running and finally the sales managers to boost its sales. The following schedule provides us with the number of employees required for the project, along with the estimated salaries for the employees:

People ResponsibilitiesNo. of employeesSalary 
Sales managerSale promotions

Customer care

Review plan

Control marketing

140,000
Finance managerBudgeting

Making financial statements

Report to owners

140,000
I.T managerWeb designing

Quality control

Finishing of task

235,000
DeveloperApp designing

Training

Mange day to day app activities

240,000
SubordinatesReport to supervisor

Focus on project goal

Completion of task

515,000

Release Plan and Road map

A Road map has been made to analyze that how the selected strategy would work to achieve the set targets. The Road map identifies the process that should be followed with the alignment of chosen strategy in order to achieve the desired outcomes. (M Svahnberg, T Gorschek, R Feldt, R Torkar, 2010)

A high-level release plan along with timely road map has been made to analyze that how the project would be completed. The road map  consists of timelines along with the provision of a complete years’ day to day operation running. Additionally, the release plan comprises of the full project plan, which indicates to the complete project objectives and the infrastructure along with bi-figuration from start to end point. A detailed road map along with the release plan indicate that the project would require to adopt the defined procedure for its completion. The set procedure propose an app development, its marketing, staffing and regular maintenance on timely basis.(See appendix 2 for detailed release plan and road map).(KH Bennett, VT Rajlich, 2000)

Milestones

The proposed budget will require some adjusted milestones with time specification. The Milestone consists of the start and end dates of suggested activities, which would be accomplished on timely basis for a smooth project execution.

ActivitiesMilestonesDuration
AStartup planning and market search15 Days
BApp development15 Days
CApproval from investors3 Days
DBudget and costing10 Days
EArrange IT manger and staff5 Days
FAdvertising and promotion10 Days
GExecution2 Day

The above chart proposes the set milestone for timely completion of the project by considering all the possible activities.

Projected Cost and Revenues

The five-year projection plan has been made to analyze the revenues that would be generated with the help of this proposed technology. It suggests a huge increase in number of customers and sales, because of the user-friendly technology. It also suggests a positive increase in the total profit with the short increase margin. All the estimations are based on some assumptions which propose some percentage increase for the following years, based on some research analyzation.

PROJECTIONS
  12345
 Sales (Units)               10,000              11,900              14,161              16,852              20,053
 Sales Price (PKR)                     129                    142                    149                    156                    164
       
 Sales          1,290,000        1,689,800        2,109,989        2,628,848        3,288,756
 Cost of Sales 5%          800,000           840,000           882,000           926,100           972,405
 DIRECT LABOR 10%          103,000           113,300           124,630           137,093           150,802
 Gross Profit            387,000           736,500        1,103,359        1,565,655        2,165,549
 Operating Expenses       
 ADMINITRATION 5%             10,000              10,500              11,025              11,576              12,155
 COMMUNICATION 2%             20,000              20,400              20,808              21,224              21,649
 UTILITY EXPENSE 5%             61,800              64,890              68,135              71,541              75,118
 DEPRECIATION               20,000              20,000              20,000              20,000              20,000
 MISCELLANEOUS 2%               5,000                5,100                5,202                5,306                5,412
 PROMOTIONAL 10%             80,000              88,000              96,800           106,480           117,128
       
       
 Total Operating Expense            196,800           208,890           221,970           236,128           251,462
 EBIT            190,200           527,610           881,390        1,329,527        1,914,087
 Taxes  30%             57,060           158,283           264,417           398,858           574,226
 Net Income  133,140 369,327 616,973 930,669 1,339,861

Project Risks

In this project, some risks are also involved, which should be handled on time for achieving the desired targets. The proposed technology is new for the customers and they are unaware of the usage of this new technology. To resolve this issue, the company should arrange some awareness programs and write some informational articles on their website in order to address the proper usage of this app to its targeted customers. This will help the customers and make the technology user friendly. Additionally, the app should involve some basic features, which should be very simple to use so that the users wouldn’t face any hardship while using the app.

In this competitive world, it would be difficult for the company to attract a huge customer base, so for averting this essential risk; the company should analyze its rivals’ strategies for targeting their customers, which will help the company to know the expected moves of its rivals and eventually the company will be able to take a forward step after making every strategically more meticulously than its competitors.

Project Limitations

This project involves some limitations, which should be considered for handling. The project should be completed on time. There are set standards for completing all proposed activities with the limited budget specifications. The important part in this project is app designing by consuming limited budget, which should address and include more advanced features. Moreover, the number of staffs to manage this project is also limited with limited budget allocation.

Appendices

Appendix: 1(SWOT Analysis)

StrengthsWeaknesses
·         Number of expert athletes and fitness trainers.

·         Innovative service.

·         Our contractors are our partners.

·         First app in the area of medical consultation.

·         Providing up to 5% discount to our customers.

 

 

·         Lack of application awareness.

·         No experience of customers.

·         New application.

·         Weak touch point.

 

OpportunitiesThreats
·         Growing number of customers and patients.

·         Creation of loyal customers.

·         Cost efficient technology.

·         Internet users.

·         Growing sedentary lifestyle.

·         New culture of innovation.

 

·         Increasing competition.

·         Economic factor.

·         Increase of general sales tax.

 

Appendix: 2 (High level Road map)

Appendix: 3 (Communication planning)

Appendix: 4 (Road map estimates planning)

 

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