成都理工大學中英合辦商務管理專業英語課程essay范文：Project Selection

 

 

Payback period refers to the time required for the total economic benefits becoming equal to the initial investment cost (Williams, et al. 2012). In both projects, benefits for the next several years are the same respectively, so the calculation formula is the total initial investment cost dividing benefits each year. The payback period for project A is 7.6 years and that for project B is 3 years. From this result, project B is much more preferable than project A because taking back the initial investment in project B is much faster. Net present value (Lin & Nagalingam, 2000) refers to the variance between original investment present value and discount calculated by net cash flow generated to the investment scheme taking capital cost as discount rate. The net present value of project A is negative, while the net present value of project B is positive, which means that project A is unacceptable while project B is acceptable. The advantages of project A are that moulds produced by the US Mould Company are high qualified and with the current economic situation and government's policies making the company's competitors think of returning to the US market, there may be less competition in business. The disadvantages of project A is that high quality moulds need very specialized workers, which will result in rather high human resource costs. The advantage of project B is that the franchisor has other stores in China and also has logistic centers for distribution that means the franchisor has enough experience for helping starting the new business, while the disadvantage is that there exists sales targets to achieve for renew the franchise in three years which is an intense pressure. From the above analysis, project B is obvious much better than project A.投資回收期是指為總的經濟效益變得等于初始投資成本所需的時間（威廉姆斯，等人。2012。在這兩個項目，在接下來的幾年效益分別相同，所以計算公式是總的初始投資成本除以每年的好處。項目投資回收期7.6年，項目B是3年。從這個結果，B項目更比項目因為收回項目B的初始投資是快得多。凈現值（林納加林加姆，2000）指的是方差之間的原始投資現值與貼現凈現金流產生的投資計劃，以資本成本作為折現率計算。項目的凈現值為負，而B項目的凈現值為正，這意味著項目是不可接受的，B項目是可以接受的。優勢的項目是由我們公司生產高質量的模具模具，與當前的經濟形勢和政府政策的制定公司的競爭對手想重返美國市場，有可能是在商業競爭少。項目的一個缺點是，高質量的模具需要非常專業的工人，這將導致更高的人力資源成本。B項目的優勢是，特許人在中國其他商店也有分布，是指特許人幫助啟動新的業務有足夠的經驗，物流中心，而缺點是存在的銷售目標的實現在三年里這是一個強烈的壓力專營更新。從以上分析，項目B明顯比項目要好得多#p#分頁標題#e#

 

 

Market Research

China's overall economic situation is developed steadily that GDP is the main embodiment. China's recent GDP growth momentum is stable, remaining in the 8 to 9 percentage points, and speed of growth is very alarming. Now China's GDP has surpassed Japan and China has become the world's second largest economy. People's living standard rises significantly. According to the survey "A better life？ The wants and worries of Chinas consumers", even a relatively poor rural respondent also is universally holding optimistic attitude towards the economy situation of future. In comprehensive investigation samples, 91% of the respondents show optimistic attitudes towards the future, and this confidence is also transformed into consumption desire; furthermore, in the relatively affluent city, the respondents who are unwilling to spend money only account for 17% of the total. So China's economy situation is optimistic and most of the consumers in China are willing to conduct consuming behavior, so it’s a good opportunity for starting a Small Medium Enterprise. 

 

 

Chengdu is the most important center of the city in western China. In 2009, GDP of Chengdu amounted to $35215, ranking first in the especially big city in western. At the same time, Chengdu also attracted most foreign capital in western. By the end of 2010, a total of 189 Fortune 500 companies (of which 149 outbound Fortune 500 companies) had settled in Chengdu. Moreover, Chengdu is the communication hub in Southwest China in the following aspects, trade, finance, science and education and transportation. With the increase of income of dweller in Chengdu, demands for consumption also increase at the same time, but the points of consumption are different. The elasticity of Chengdu residents' demands for food and house are relatively low, but the demands for the health care and entertainment and cultural services are relatively high. This shows that with the increase of income, the general residents are not eager to increase the food and housing grades, but they are more willing to spend money on health care and entertainment and cultural activities. Take into consideration Chengdu's economy status and Chengdu residents' demands for consumption, it is a good moment or not for start a SME in Chengdu.

 

 

In recent ten years, coffee shops have been emerging in succession on each big city's street in China, coffee market presenting a lively scene. The group od coffee consumers is gradually growing, and coffee culture is gradually formed in the mainland city, but also every year the coffee market is still expanding. Although the per capita consumption of coffee still has a large gap with that in European and American countries, Chinese coffee market is expanding rapidly, and Chinese coffee market has tremendous value-added space. From this point of view, it's good time for opening coffee shop in China, because of the great potential coffee market. But there still exist some problems. The now existing coffee market is seized by some large chain coffee shops, such as Starbucks and Pacific Coffee, and the group of coffee consumers is constrained in white-collar crowd. In order to successfully carry out the plan, the coffee shop must have its own characteristic catering to the white-collar crowd and different from other coffee shop chains.#p#分頁標題#e#

 

 

The franchising system in China has the following four characteristics. The first and biggest feature is that the development of franchise is rapid, and dimension of franchise is expanding, and it has already become a point of growth of development in national economy. The second feature is that franchise chain operation expands to multiple formats, and multi areas of industry. Franchise was mainly in industry of supermarkets, convenience stores, now developing into boutiques, warehouse-style shopping malls. The area of franchise has developed and expanded from tangible goods business to service business, covering almost commercial, service industry and other industries. The third feature is that new advanced management technology, promotion strategy, and method of business have been widely used in franchising. The fourth feature is that franchise has become the main means for some enterprises to expand. A lot of chain enterprises in the city market in relatively saturated situation, through franchise start extending from city to the surrounding areas. These are all advantages for our project.

 

 

The main brands operating now in China are listed in the following. Starbucks is the world's largest coffee shop chain, the world leader in specialty coffee retailer .Straits Cafe is world well-known Sino-foreign joint venture food chain enterprise.UBC Coffee is a well-known coffee restaurant chain, and the industry well-known brand .DIO coffee is a well-known trademark in China, and it's Chinese compound casual dining coffee category leader . Blue Mountain Coffee has the supplier indentified and recommended by International Coffee Organization . Mingtien Coffee is originated from Taiwan.Manabe Coffee is one of the Taiwan's largest and most complete coffee chain store . Costa Coffee is from England. McCafe is a brand set by McDonald, as the world biggest fast food chain. Doutor Coffee is a famous brand from Japan 

 

 

World Coffee Festival was held in Ningbo in 2012 from 8.25 to 8.26 . The calendar of this festival included free samples of coffee and competition between coffee masters. For visitors, this kind of festival can spread coffee culture and encourage more people to become coffee lovers. They're good for our project. For exhibitors, this kind of activities is good opportunity for them to communicate feelings and experiences of coffee with each other. In all, these festivals and shows are promotions for the coffee industry.

Project Implementation

 

 

The characteristics of the problem are always subject to a number of factors, and brainstorming can be used to identify these factors. The fish bone diagram is applied to structure and organize the factors and characteristic valuesand mark an important factor. Fishbone diagram helps to illustrate how the mutual reasons affect each other. It can also show how each of the possible reasons appear with time sequentially (Shikawa, 1968). This helps to tackle the problem.

 

 

KPI indicators, the full name of the Key Performance Indicators, are the objective quantitative management indicators in measurement of process performance through dealing with key parameters of the input, the output of a process in the internal set of an organization by sampling, calculation, are the tools for analysis and decomposing the strategic objectives of the enterprise into vision that can be operated, are the bases of performance management system in the enterprise (Fitz-Gibbon, 1990). KPI receives wide attention in the modern enterprise performance appraisal methods. KPI allows department heads to be clear of the main responsibility of the department, and on this basis, clear and definite performance measurement indicators of department staff, built performance appraisal on the basis of quantity. A clear practical KPI system is the key for good performance management. To organize the work, use KPIs and communicate with stakeholders are all important for set goals and investigate the progress, so they are useful in carry out the project.

 

 

Project Definition

Mind mapping is the graphic thinking tool to express the effective emission thinking, which is simple, but extremely effective, a revolutionary tool for thinking. Mind mapping expresses the relationship of the themes at all levels with mutual subjection and hierarchy diagram, creates memory links relating subject keywords with image, color, makes full use of the left and right brain functions, to help people balance between science and art, logic and imagination development, thus opening the unlimited potential of the human brain (Jöran, Bela & Jan-Olaf, 2009).

 

 

The basic definition of the WBS is deliverable-oriented grouping of project elements, which have summarized and defined the entire scope of work for each project, a lower layer representing a more detailed definition of the project work (Allen & Earned, 2011). WBS is a tool for description of the idea of planning and design. It helps the project manager and project team to identify and effectively manage project work.

 

 

The inner thoughts of Gantt chart are simple, illustrated by the figure, through list of activities and the time scale image showing the sequence of activities and the duration of any particular project (Gantt, 1910). It intuitively shows that the task schedule and the actual progress. A task (project) manager thus is convenient to clarify what work left to be done, and can assess the progress of work.

 

 

Budgeting methods are applied to estimate the income and output of the project in advance. It can help to achieve coordination between short-term benefits and long-term development planning and improve the level and efficiency of project management.

Risk Assessment

 

 

The financial risk is that the actual profits may not as much as the expected profits. The main solution is to make beforehand research about the circumambient consumption level, according to which setting reasonable price and advertise the store with the help of Internet. Technical risk is the problem of coffee machine that can be handled through continuous communication with the franchisors. Risk of business environment is mainly that competitive coffer stores may open nearby. The action to cope with this risk is that in site selection phase before opening the store, the focus should be on locations in streets with mature business environment where the commercial pattern will have no big change. The social environment risk is that the specialty of the store may not fit in well with the social environment around. To avoid this kind of risk, study about the habits and customs of local people should be made and the store should be designed complied with local customs and traditions. The risks of natural environment are fire hazard, flood and some other disasters. The solutions are settling fire escape in accordance with regulations and rules, buying insurance against these natural hazards.

 

 

Reference

Shikawa, K. (1968), Guide to Quality Control (Japanese): Gemba No QC Shuho. JUSE Press, Ltd., Tokyo

Fitz-Gibbon, C. (1990), Performance indicators. BERA Dialogues(2).

Jöran, B., Bela, G. & Jan-Olaf, S. (2009). Information Retrieval On Mind Maps - What Could It Be Good For?. Proceedings of the 5th International Conference on Collaborative Computing: Networking, Applications and Worksharing (CollaborateCom'09). Washington: IEEE.

Allen, B. & Earned, H. (2011). Value Management Tutorial Module 2: Work Breakdown Structure, Office of Science, Tools & Resources for Project Management, science.energy.gov. Accessed 27. Dec 2011.

Gantt, L. (1910). Work, Wages and Profit, published by The Engineering Magazine, New York, Pennsylvania, Hive Publishing Company.

Williams, J.R. et al. (2012), Financial And Managerial Accounting, Mcgraw Hill, 1117.

 Lin, I. & Nagalingam, V. (2000). CIM justification and optimisation. London: Taylor & Francis. 36.