TABLE OF CONTENTS Introduction For example: MY PROJECT SWOT and TOWS of my Shop Market Research 11 Financial plan .14 Calculate NPV & IRR 16 Risk management 17 Conclusion 18 References 19 15 Introduction Today, project management is very important, it helps us to study the planning, organization and management, monitoring the development process of the project to ensure the project is completed on time, within the approved budget, quality assurance, achieving specific objectives of the project and the set objectives At Assignment I introduced my project In this Assignment 2, I will go deeper into project appraisal and see if my project can be successful Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives A project is a single, fleeting effort that is made to achieve the planned objectives, which can be determined by outputs, results or benefits A project is often considered successful if the objectives are met according to their acceptance criteria, within a agreed period of time and budget An important factor that helps distinguish project management with only "management" is that it has the ability to deliver final and finite time, unlike management that is an ongoing process Because of this a project expert needs a variety of skills; usually technical skills, and certainly a good person management and business awareness skill (apm, n.d, viewed 20 March 2019) Risk management is what determines the analysis to set out measures to control and control unexpected situations that adversely affect the project The importance of risk management is the task, which is the risk response that improves the success of the project Develop solutions to eliminate or minimize risks, providing a foundation for understanding the contribution of the project in every measure of the company Human resources is used to describe both the people who work for a company or organization and the department responsible for managing resources related to employees The term human resources was first coined in the 1960s when the value of labor relations began to garner attention and when notions such as motivation, organizational behavior, and selection assessments began to take shape The due diligence process can enable you to spot potential deal breakers and supply checks that the acquisition is the correct resolution on the proper value Due diligence process is a radical fact-finding mission that permits you to analyze your goal and decide whether or not the acquisition is sensible for your firm If accomplished 15 properly, the due diligence process can enable you to spot potential deal breakers/shapers and supply assurances that the acquisition is the correct resolution on the proper value SWOT is one of the five steps that make up the business strategy of an enterprise, including the establishment of corporate mandates, SWOT a nalysis, strategic targeting, formulation of strategic objectives and plans Strategic, defining strategic control mechanisms SWOT is the abbreviation for the first letters of the words Strengths, Weaknesses, Opportunities and Threats This is a well-known model in business analysis of business SWOT helps bring insights into an organization, project, or situation so it is particularly useful in decision making, strategic planning, and planning Let's take a look at SWOT analysis commonly used in specific cases such as brainstorming meetings, problem solving (organizational structure, resources, productivity, corporate culture) , Strategy development (competition, product, technology, new market), planning, decision making, product quality assessment, competitor assessment, self development plan TOWS analysis is a tool which is used to generate, compare and select strategies Strictly speaking it is not the same as SWOT analysis, and it is certainly not a SWOT analysis which focuses on threats and opportunities This is a popular misconception TOWS may have similar roots TOWS is a tool for strategy generation and selection; SWOT analysis is a tool for audit and analysis One would use a SWOT at the beginning of the planning process, and a TOWS later as you decide upon ways forward For example: MY PROJECT The project starts on April 1, 2019 and is expected to open September 4, 2019 Project title: Business project of fashion shop Objectives: Short-term objectives: to build a store that sells fashion, with the aim of giving customers the latest and most trendy products With a moderate investment, the ability to recover capital and develop high Build a shop selling all kinds of fashion with products that meet the needs of customers Long-term objectives: develop home delivery service so that customers who don't have enough time to shop can still buy goods 15 SWOT of my Shop STRENGTH (S) My shop products range from 200,000 VND to 1,000,000 VND and for ages 20 to 40 years old Customers not only select products that are suitable for their age but also fit their financial capabilities Finally, my shop has a professional and friendly staff Newly established shop, there are not many familiar customers and not much experience My shop get a good product supply and there are always products that match today's fashion WEAHNSSES (W) OPPORTUNITIES (O) THREATS (T) TOWS of my Shop Since my shop is located in the city center, there will be many opportunities to develop Must compete with other fashion shops Internal Factors S W SO WO External Factors O Promoting strong points to seize Mobilize capital New businesses often lack opportunities such as with quality products, capital, so my shop always needs the SHOP reasonable prices, business space and support of agencies, suppliers, investors convenient transportation plus marketing and especially the support of customers to capabilities, enthusiastic and happy staff will increase the feasibility of the project, attract many customers potential Planning T Marketing ST increase capacity mobilize capital sources Operations and business partners WT Take advantage in the competitive process Learn to get more experience In the Resource Based on the advantagesMarketing compared Shopeconomy, opening the business planto current market allocation competitors, my shop's employees have environment is always dynamic, with many many skills and are always enthusiastic at potential risks, strong competition of the work Blueprint preparation Needs specification market makes me more mature in the way Operation plan of doing business as well as strengthening the experience Budget Work breakdownpreparation structure Resource scheduling Shop registration 15 15 Organizational structure SHOP OWNER ACCOUNTANT MANAGE MARKETING STAFF CASHIER SALES CLERK Gantt chart Market Research 15 GUARD This survey helped me better understand the current market and it helped me to know what customer needs are In today's society, fashion is an indispensable thing for each of us And below is the market survey results related to people's fashion needs and related to my business project I created common questions and surveyed more than 50 people live in different districts ( district 1, 3, 5, 10, 11, GoVap, etc.) We can see that the number of female customers has a higher demand for fashion shopping than male customers Female customers account for 58.3% and male customers account for 41.7% Besides, customers aged between 20 and 30 account for the majority So if my shop imports female fashion items from the age of 20 to 30, it will sell more and get higher profits Next, according to my survey results, people often go shopping once a week or twice a week, most of them go shopping on weekends, especially in their Moreover, people free like time to go shopping with family and friends The rest often go shopping alone, and few people go shopping with their boyfriends / girlfriends 15 Based on the survey results, it can be seen that the amount of money people spend on shopping ranges from 200,000 VND to 1,000,000 VND Some people want to spend less than VND 200,000 on shopping Perhaps these people are students aged 20 or younger They have not worked and not have much money Finally, The fashion that people like to wear the most is fashion according to the current trend and office fashion Some people want to wear dynamic fashion and fashion to party Through the above survey, I think that if I sell fashion items between the ages of 20 and 40 and cost between VND 200,000 and VND 1,000,000, I will sell more products Besides, most people when shopping want clear advice, and my shop's sales staff are very friendly people Customers need advice on any item, the employees will enthusiastic consultants With such things, I believe my project will be successful After my project is 15 successful, I will try to develop it by importing more new items, having more delivery services and expanding more branches Financial plan Estimates of items and capital sources No Total initial investment cost Bank loan Equity capital TOTAL Into money 60.000.000 500.000.000 560.000.000 Since the initial capital is not enough, it is necessary to borrow more capital from TP bank with an interest rate of 10% year and the payment time is within years Shop will pay a fixed amount: X= = 24.126.888VND (M= 60.000.000VND, r=10%) Bank repayment plan Unit:VND YEARS Debt Balance At The Beginning Of The Period Refund In The Period Loan Interest The Payment Refund The The Period Original Capital % 60.000.000 6.000.000 41.873.112 4.187.311 21.933.535 2.193.354 Capital use structure (Unit:VND) No Debt Balance At The End Of 24.126.888 24.126.888 24.126.888 Investments 18.126.888 19.939.577 21.933.535 Quantity 10 100 40 10 Set Hanging cabinets Hanger Mannequin Coat Stand Sofa Set Mirror Loudspeaker 15 Price 650.000 35.000 10.000 250.000 11.000.000 300.000 800.000 41.873.112 21.933.535 Into money 6.500.000 3.500.000 400.000 2.500.000 11.000.000 1.500.000 1.600.000 10 11 12 13 Computer Cash register Light system Deposit of premises Clothes Advertising costs/Marketing 1 Set months 100 times 12.000.000 8.000.000 1.600.000 30.000.000 450.000 6.000.000 TOTAL 12.000.000 8.000.000 1.600.000 180.000.000 45.000.000 6.000.000 279.600.000 SALARY OF EMPLOYEES Manage Accountant and Cashier Marketing Staff Sales Clerk Guard Quantity 1 TOTAL Salary 8.000.000 7.000.000 5.000.000 4.000.000 3.000.000 Into money 8.000.000 7.000.000 10.000.000 16.000.000 6.000.000 47.000.000 VND revenue / day 6.500.000 10.400.000 13.000.000 VND revenue / year 2.372.500.000 3.796.250.000 4.745.000.000 REVENUE (Average price 650.000 VND a product) Time First year Second year Third year COST (Unit:VND) Average selling quantity 10 16 20 Cost First year Salary of employees 564.000.000 Electricity 10.000.000 Products 450.000.000 Advertising costs 4.000.000 Premises costs 360.000.000 Interest on bank loans 18.126.888 TOTAL 1.406.126.888 Depreciation of fixed assets: the initial investment value is Second year Third year 564.000.000 624.000.000 10.500.000 11.000.000 450.500.000 470.000.000 4.000.000 4.000.000 360.000.000 360.000.000 19.939.577 21.933.535 1.408.939.577 1.490.933.535 279.600.000 VND, estimated residual value after three years is 30% PROFIT CIT (Corporate income tax): 25% Time First year Second year Third year Net revenue 2.372.500.000 3.796.250.000 4.745.000.000 Cost 1.406.126.888 1.408.939.577 1.490.933.535 15 Profit before tax 966.373.112 2.387.310.423 3.254.066.465 Profit after tax 724.779.834 1.790.482.817 2.440.549.849 Year Cash flow in 2.372.500.000 3.796.250.000 Value of liquidation 83.880.000 Cash flow out 279.600.000 1.647.720.166 2.005.767.183 total cost 1.406.126.888 1.408.939.577 CIT 25% 241.593.278 596.827.606 Net cash flow -279.600.000 724.779.834 1.790.482.817 Value of liquidation = 279.600.000*30% = 83.880.000 VND 4.745.000.000 2.304.450.151 1.490.933.535 813.516.616 2.440.549.849 Calculate NPV & IRR Net Present Value ( NPV) I: Initial Investment r: The Discount Rate CF: Net Cash Inflow-Outflows During A Single Period Get The Discount Rate is 10% per year If It means Then NPV > the investment would add value to the firm the project may be accepted NPV < the investment would subtract value from the firm the investment would neither gain nor lose value for the firm the project may be rejected NPV = We should be indifferent in the decision whether to accept or reject the project This project adds no monetary value Decision should be based on other criteria, e.g., strategic positioning or other factors not explicitly included in the calculation NPV = -279.600.000 + + + = 3.692.649.847 > 15 => THE PROJECT MAY BE ACCEPTED Internal Rate of Return (IRR) Calculate IRR through NPV, give NPV = 0, calculate r in NPV formula, r is IRR, we have IRR = r when: -279.600.000 + + + =0 => IRR = 3,46 We can see the actual rate of return of the IRR project > 10% => THE PROJECT MAY BE ACCEPTED Profitability Index (PI) PI = = = 14,21 > => THE PROJECT MAY BE ACCEPTED Risk management Possible risks: Currently, there are many different fashion shops, so I will have a lot of competitors and there will be many risks Besides, indirectly affected by changes in natural conditions (rain, storm, etc.), shortcomings in evaluation , damaged materials in transportation transfer, storage Market prices fluctuate leading to the price of products will increase Some risk remedies: My shop will always have new items compared to other shop, so it will attract how many customers and can reduce the risk.Keep track of relevant information sources I will always pay attention to the development direction of competitors as well as the needs of customers And finally is risk mitigation planning Risk prevention plan is implemented separately according to business requirements and business characteristics Restoring the system requires compliance with the investment plan and the specific requirements of the business Risk mitigation plans are implemented, screened, and continuously updated Conclusion In short, in order to have a successful project, I need to know how to spend capital and make a reasonable financial plan Besides, knowing how to manage risk also helps my project succeed 15 References Apm, n.d, viewed 20 March 2019 from https://www.apm.org.uk/resources/what-is-project-management/ 15 ... go shopping once a week or twice a week, most of them go shopping on weekends, especially in their Moreover, people free like time to go shopping with family and friends The rest often go shopping... OPPORTUNITIES (O) THREATS (T) TOWS of my Shop Since my shop is located in the city center, there will be many opportunities to develop Must compete with other fashion shops Internal Factors S W SO WO... financial capabilities Finally, my shop has a professional and friendly staff Newly established shop, there are not many familiar customers and not much experience My shop get a good product supply