Running head: IMPLEMENTATION PLAN FOR FRIAR TUCKER GALLERIA PROJECT
Implementation Plan for Friar Tucker Galleria Project
University of Phoenix
Implementation Plan for Friar Tucker Galleria
As the world economy continues to grow and evolve local and national business models need to change toward the global trend. With the world market saturated with competition and new innovation around every corner, Friar Tucker International (FTI) has identified the need for growth and change within its organization so it can remain a major player in the hospitality service industry. In order to strengthen its position in the market, the company wants to diversify its product ...view middle of the document...
The company also is affiliated with two large hotel chains. It employs approximately 1200 individuals and generates revenue in excess of $300 million annually (UofP, 2007). Under CEO, Ricardo Bellini, FTI has experienced strong financial gains, and a boom of project proposals that may be helpful to sustaining the organizations momentum. With an abundance of project proposals on the table, Bellini has changed the way FTI selects business projects. He has set up a Project Selection Committee (PSC) to identify projects that are in line with company objectives, and will likely yield the highest return.
Friar Tuckerâ€™s key focus areas over the next three years are: entertainment hospitality, cuisine business, and corporate entertainment (UofP, 2007). FTIâ€™s vision is to be among the top 10 hospitality service providers in the family entertainment business. This will be achieved in part through superior service offerings and innovative marketing. Its mission statement is to attract more visitors and commerce to its areas of operation via its food and entertainment facilities. Additionally FTI seeks to ensure its customers have a wondeful family experience at there venues.
As the simulation opens there are five projects up for consideration; Project Kalimpong, Project Friar's Nest, Project Braithwaite Greens, Project Templar Towers, and Project Galleria (UofP, 2007). Based on weighted critical success factors and overall project to corporate goal alignment one project was selected for final approval. Critical success factors are into consideration to identify and assess project outcomes. These factors are project elements necessary for an organization or project to achieve its mission (Gray, 2007). Examples of these factors are initial investment amounts, breakeven, steady revenue, enhancement of revenue streams, new competencies, enhancement to brand image and growth of customer base.
Of the five proposed projects, FTI selected the Galleria Project for final approval and implementation. This project proposes to set up an entertainment hub with a multiple-screen theater, sports facilities, and a shopping mall. The project will require an initial investment as high as $11 million, with break even in five years, and is estimated to generate revenue as high as $35 million a year by year 10. Of the projects up for consideration, Galleria has the highest projected revenue, an average break even time and a mid-range required initial investment. This proposal is also very much aligned with the organizations mission statement and enhances its goal of becoming a leader in the family entertainment market. Family entertainment revenue currently accounts for approximately 30% of FTIâ€™s $300 million annual revenue (UofP, 2007). This is the second lowest sector only to subcontracted work. The Galleria project will also enhance revenue from Cuisine Establishments as well. This project certainly has the capability to add value to the firm and...