Project Management Harvard Case Solution & Analysis

An Overview

Mr. John has planned to open a Moroccan Restaurant and lounge Bar with shisha. He has a limited budget for his restaurant of around 350.000 Euros. Since, he has a limited budget; so he needs to be very careful while drafting his expenses.

Location (Morocco)

Morocco, about 1-10th larger than California City, lies near the Strait of Gibraltar and looks out at the Atlantic from north-west shoulder of the Africa. Algeria lies at the east and Mauritania at the south. There is a fertile plain on the Atlantic coast. The coast of Mediterranean is mountainous. Morocco has been known as the home of the Berbers ever since the 2nd millennium B.C. In the A.D. 46, Morocco was taken over by the Rome as part of the territory of Mauritania awaiting the Vandals overran this section of the waning empire in the 5th century. The Arabs occupied circa 685 and brought the religion, Islam. The Berbers support them in occupying Spain in 711, but then they appalled against Arabs as they hated to be treated like second class citizens. In the year 1086, Berbers became in-charge of huge areas of Moorish Spain until and unless they were excluded in the 13th century. The land was hardly ever unified and was typically ruled by little tribal states. Clashes between Berbers and Arabs were constant. Portugal and Spain started invading Morocco, which actually helped them to unite the land in their defense. In 1660, Morocco came below in command of the Alawite dynasty. It is a sheriff dynasty and descended from the prophet Muhammad and rules Morocco. The population of Morocco is around 32.52 million.

The Opportunity

Opening a restaurant can be a very good opportunity in morocco. Moroccans believe on excellent hospitality and are quiet tolerant. Thought most of them are religious and majority of the females wear scarf. They are strict follower of their religion, Islam and usually the old citizens do not prefer to tolerate the disobedience of the religion. The restaurant will be based on international as well as local food to capture the attention of tourist and local audience both.  Population is high so it sounds a good opportunity to go with a restaurant with the shisha bar.

Industry and Market

Morocco has always been an attractive destination for tourists since decades with its dramatic bustling medinas, landscapes and camel trek adventures into the deserts. It is now drafting the attention for another motive and that is the foreign investment.

The same circumstances that prepared tourism one of the country’s greatest growing economic sectors that is proximity to the Europe, enhanced infrastructure, and excellent political stability, are now being portrayed as reasons to invest in Morocco. Full service restaurants are predictable to post aunpretentious growth over the short term phase. A variety of factors will add to this unassuming growth, mostly in transactions and the value sales. The sluggish economic revival will impact the spending by local customers, who will favor to trade down to fast food, informal dining and 100% home delivery as little expensive meal substitutes. Furthermore, a deceleration of visitor arrivals will also pessimistically gives an impact on sales of the Middle-Eastern service restaurants. However, expected economic revival and increasing number of tourists will probably bring an improvement to the full service restaurants over the long lasting term of forecast period.

Your strategy

           Mr. John will use the price penetration strategy to gain the attention of the tourist and would secondly introduce a vast range of product differentiation. The reason for using the price penetration strategy is that Mr. John wanted the tourist and the local people to visit his restaurant. He will initially keep the low price, which will attract people from the cost saving perspectives. This strategy will help him to enhance the brand image of his restaurant. Secondly, he will introduce the variety of dishes that will include: the Chinese, Asian, African, continental and local food. This vast range and diversification will help him to attract a massive range of customers including both local and international audience.

PROJETC MANAGEMENT

The Team and Their Cost

The team would base on 10 people who would include 3 cooks , 3 waiters , 1 accountant , 1 cleaner , 1 general worker and 1 manager

Designation Quantity Cost/ Per Month Salary Cost
Manager 1 1300 1300
Cook 3 600*3 1800
Waiter 3 550*3 1650
Cashier 1 600 600
Cleaner 1 500 500
Worker ( Delivery Boy) 1 500 500
Total 10

6850/ Month Salary Expense

Network Diagram

There are different activities going on like A, which is looking for place, B that is getting the chairs, C that is raw material supplies, D that is marketing, E that is cooking issues, F that is final analysis, G that is executed and I that is launch.

A Marketing Plan

  • Product

A restaurant having diversified range of food along with a wonderful and air conditioned dinning setup with a lounge Bar with shisha. In order to face the tough competitors, this restaurant would introduce the multiple advantages for the customers like free delivery within the town, multiple ranges of local and international foods, low cost as compare to competitors, excellent dining area and attractive family and individual deals.

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