Explain and justify the ventures potential success Essay

Explain and justify the ventures potential success - Essay Example Since financial risk is connected with inclusion of debt capital, this implies that if there are no debt funds hence there will virtually be no financial risk. This also implies that activities which are totally financed by equity convey no financial risk. Subsequently, equity capital has the long-term potential for generating superior returns for the investors and is thus considered as appropriate source of finance especially for new business ventures. The investment appraisal techniques reveal that the net present value of investment is  £19,538.43 with an IRR of 29 percent. As the return on investment is more than cost of capital, it is apparent that project is viable and investors may accept this project. It is also apparent that budgeting will contribute towards the success of the business venture. Below is an outline of the anticipated budget as well as pricing structure for the business venture. The average per unit cost of delivering pizza is expected to be  £20 for sale of 8,825 units (in first year) and considering the demand of product and current competition in market, the management could expect sales turnover of around  £176,500. This means that average revenue per unit of pizza delivered will be  £31.14 (shown in price chart above) making a profit of  £11.14 per unit. The pricing structure is viable since it will enable the business venture to raise enough revenue to sustain its operations as well as to generate profits. Essentially, the aim of business is to make profit and this is achievable since our products are likely to attract more

Virtual Team Concepts in Projects Essay Example | Topics and Well Written Essays - 1000 words

Virtual Team Concepts in Projects - Essay Example As disclosed, the whole project cost AUD $20.5 million. Likewise, the total members in the CCWP were noted to be 45, where all team members were revealed to be full-time employees of the New South Wales Police (NSWP). There was a project manager assigned to oversee and performance of the virtual team and was said to be instrumental to its success. The performance and operation of each team was gauged in terms of managing the following areas: time (or conformity to schedules), cost, quality, human resources, communication, risk, and procurement through specifically identified goals and the ability, competency and efficiency within which challenges and problems were addressed, as well as objectives were successfully attained. Analysis of the Functions undertaken in each Functional Area of Project Management 1. Time Management: Time management concerns started with prescribed schedules and setting of milestones which were explicitly noted to be difficult within the virtual team environm ent. As revealed, â€Å"this was complicated by the large number of subprojects (more than 230) and certain engineering constraints, which required some subprojects to be completed within certain critical time periods† (Kuruppuarachchi, 2009, p. 28). ... The standards for monitoring and performance evaluation were the milestones set, including cash flow statements. As revealed, â€Å"the budget was monitored against time using simple means such as Excel worksheets and graphs showing cumulative values† (Kuruppuarachchi, 2009, p. 28) for the reason that all team members were noted to be familiar with this particular format. 3. Quality Management: This function was considered most challenging to monitor and gauge the actual quality outcome due to the remote locations of the team members. As such, standards to measure quality were based on more traditional and acceptable level by allowing the respective centers to adhere to quality standards and without the need for inspection from the central office. 4. Human Resource Management: There was a virtual team presented where the Project Manager from Sydney headed the project and governs the responsibilities of five center managers. As disclosed, since team members had been familiar wi th the organizational structure, policies, and roles, similar chain of command was therefore applied. 5. Communication Management: This functional area met most challenges in terms of the need to establish proper protocols for reporting on a center basis, as well as on the overall progress of the project. As such, there were clearly identified problems attributed as common to virtual teams, and those that were limited to them. Through the identification of these problems, proper strategies were proposed to resolve and iron out communication patterns, as required for the successful implementation of the project. 6. Risk Management: An overall risk management plan was reported to have been developed prior to the project; which became the conceptual basis for