Project Commercial Integrity
Project Commercial Integrity
The overall aim of this module is:
To promote an understanding of key commercial management underpinning projects environment and to understand how commercial integrity will ensure the likelihood of project and project management success
On completion of the module learners are expected to (be able to):
1. Critically analyse the key commercial issues involved in the management of projects.
2. Critically appraise the business environment, finance, procurement integrity, contract management, disputes and legal frameworks within the project environment.
3. Establish the Project’s Supply Chain and evaluate the commercial integrity.
This is an integrated coursework assessing financial, procurement, purchasing, supply chain management and legal issues of a Company’s proposed capacity development. You have the choice of selecting any ONE of these industries below. You could use ANY choice of Company either world renowned brands and popular chains.
c.) Oil and Gas
d.) Renewable Energy/Clean Energy
g.) Real Estates
i.) Creative Industry
k.) Food and Beverage
l.) Charity (NGOs/INGOs)
Capacity development under consideration is expansion (to a new untested market), franchising, joint venture with other services and providers, re-branding, innovative services for seamless customer services (service enhancements), acquiring new assets, new technologies, merger or acquisition with smaller and medium size companies, local content partnership, partnership with local government initiatives and SMEs and etc., This list is not exhaustive. You could choose any one of these initiatives (or your own) for capacity development of this choice of company.
You would need to provide a brief introduction about the choice of company, their current offerings, gaps and the rationale for selecting this Company. This should be limited to TWO pages only. Emphasis is on critical evaluation and depth of commercial analysis of the proposed capacity development of the choice of company. It also should NOT be a mere descriptive listing of techniques, tools and processes. It MUST be a clear discussion and analysis on how you have used these techniques, tools and processes to inform effectively the choice of capacity development for this Company.
You would need to assume that your choice of company is aspiring to be a specialist provider within their field. You need to critically evaluate the commercial integrity and commercial fitness of this initiative. There are three sections for this coursework, Finance, Procurement/Contract/Supply Chain and Legal administration. You would need to critically appraising the commercial integrity of this new initiative. All three sections MUST be covered. This coursework is to be done INDIVIDUALLY.
You can make all necessary and realistic assumptions and MUST include all of these following caveats below:
Note: Project here refers to any of the initiatives proposed above within the capacity development.
? How much funds you would want to ask the Company’s Steering Group for this new Initiative/project (capacity development).
? Required capital assets and resources – e.g., Capital Expenditures, Operational Expenditures and other Financial Expenditures
? Types of Customers you want to consolidate and position in this new market
? Identify this project’s stakeholders (all project partners). You need to briefly establish the role and responsibilities of each of these stakeholders, communication plan and their contribution (effort) to this project. You need to produce a stakeholder’s analysis grid, communication plan and responsibility assignment matrix.
? Construct this project’s life cycle diagram and identify specific phase, activities, stages, deliverables, issues and challenges at each of this project phases (you can either produce high-level or detailed level project life cycle diagram for this project). You can map/chart the issues and challenges, scenarios and exposures after scanning the project’s internal and external environment.
? Undertake Options Appraisal of your choice of capability development. Have adequate market research is undertaken to ascertain the viability of this project in short term, medium term and long term? You may want to carry out a project business environment appraisal (gaps analysis). There are many tools, techniques and framework available to appraise the feasibility of a project, e.g., SWOT, PEST, PESTEL, STEEPL, 5-PORTER Boston Matrix (BCG Matrix) and McKinsey 7-S Model. All these tools serve as a guideline to decompose (break-up) your appraisal. Select any tools that you are comfortable with and appraise this project. You can use either any one of the above tool or more than one tool. You need to appraise the internal and external environment for this project. You need to carry out a detailed project environment scanning to ascertain the feasibility of this project. The motivation for this appraisal to determine key determinants of this project’s success. You have to be very careful NOT to list critical success factors (CSFs) and critical failure factors (CFFs) – these are entirely different.
? You would need to appraise the proposed procurement route, purchasing mechanisms, supply chain management and contract management strategy, contract management and administration issues in this capacity development. You need to criticise and evaluate this project’s procurement and contracting strategy. You must also consider where possible Supply Contracts, Sub-contracts and Service Level Agreements. You must critically evaluate the contract arrangement/structure by including a supply chain map, contract strategy, pricing strategy for this project and how the contract should be managed for this project. How do you ensure a high performing contract for this project?
? You would need to appraise the potential legal issues in this project. You can identify and critically assess potential legal issues at each phase of this project, e.g., dispute resolution strategy between the project’s stakeholders/partners, contractual term/conditions ambiguities and clarification including service level agreement (SLA), non-compliance/non-conformance to the project’s commercial and technical specifications and this project’s risk and contingencies allowances. You may want to identify potential risk events and critically map and appraise against the dispute resolution approaches. You may have to prepare a risk register for any potential conflict and dispute, use probability/impact grid and identify appropriate dispute resolution method. You MUST remember it should NOT be a mere discussion or reporting of legal/litigation techniques, legal instruments, contract law, dispute resolution and alternative dispute resolution techniques in this project. You need to ensure that critical assessment of these legal issues must be identified for this project.
? You MUST discuss and critically relate to the profit, value, benefit, achievability (success rate) for this project. Plus any other realistic assumptions to ensure a successful capacity development. You MUST consider financial scenarios, procurement scenarios, purchasing scenarios, identify the Supply Chain for this proposed initiative including stakeholders in this new market and legal instruments. You would also need to consider how if any other commercial constraints (including culture) for this proposed capacity development of your choice of Company.
Your Task: To Prepare a Report considering the financial and economic scenarios, contractual, legal obligations and exposures of this capacity development (Project) and advise the Company’s steering committee of this Project’s viability (feasibility). The Company’s steering committee wants to know potential financial, procurement, contractual, supply chain management and legal scenarios and exposures including any commercial oversights. You would need to convince the Company’s steering committee of this Project’s viability financially, contractually and legally. You would need to assume that your career progression and future with this Company is dependent upon this Project’s successful development and progress bringing in the required profit, benefit and value. You can assume yourself as the Capability Lead (your role) when reporting back to the Company’s steering committee. The membership of this Company’s steering committee is composed from senior executive management. The remit of this Company Steering Committee’s is either to finally approve or reject the proposal.
Report must cover all three elements of this project’s commercial fitness and their integrity (financial, procurement/contract/supply chain & legal context).
In three sections the argument, logical reasoning and critical evaluation of the above project that you had identified must be made in Commercial Context for Capacity development. This Capacity Development is a Project for the Company that you have identified.
Word Count: 4,000 words
(i) You MUST AVOID generalisation and descriptive statements or mere quotations and recycling information from references/academic source. It is CRITICAL EVALUATION, DEPTH and LOGICAL REASONING using appropriate academic and research publications that we want for this report. CLARITY IS THE KEY WORD HERE.
(ii) You MUST AVOID opinionated views, hearsays, rumours, speculation, stories, tales, TV personalities/celebrities views, word of mouth and any other non-academic/professional source. You MUST make sound academic and professional judgement supported or build upon from current credible/authoritative publications.
(iii) You MUST AVOID citing opinions and views from Wikipedia, Blogs, web based Chats, web based Forums, web based mails, web based friendship/collaborative tools or social networking sites, e.g., Facebook, WAYN, Twitter, MySpace, Linkedln, Hi5, Orkut, Friendster and etc., You MUST use peer reviewed resources. You also MUST be resourceful.
(iv) You MUST demonstrate your ability to build arguments systematically with logical reasoning and critical evaluation.
This is MSc level submission which demands significant evidence of depth and critical evaluation of commercial context of a Company’s capability development. These must be demonstrated in the report. All arguments, logical reasoning and evaluation must be supported by references from credible/valid/authoritative academic/professional source, e.g., books, e-books, peer reviewed publications, journals (e.g., International Journal of Project Management), white papers, professional institutions magazines/articles, e.g., PMI (Project Management Journal) and APM (Project Magazine) publications, trade magazines, case studies, symposiums, congress and conference proceedings)