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CASE STUDY READ THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW NEW KITCHEN HEAVEN RETAIL STORE You are a project manager for Kitchen Heaven, a chain of retail stores specializing in kitchen utensils, cookware, dishes, small appliances, and some gourmet foodstuffs such as bottled sauces and spices. You're new to the position, having been hired to replace a project manager who recently retired. Kitchen Heaven currently owns 49 stores in 34 states and Canada. The world headquarters for Kitchen Heaven is in Denver, Colorado. Counting full-time and part-time employees, the company employs 1,500 people, 200 of whom work at headquarters. The company's mission statement reads: "Great gadgets for people interested in great food." Recently, the vice president of marketing paid you a visit. Dirk Perrier is a very nice, well-dressed man with the formal air you would expect a person in his capacity might have. He shakes your hand and gives you a broad, friendly smile. "We've decided to go forward with our 50" store opening! Sales are up, and our new line of ceramic cookware is a hot seller, no pun intended. I don't know if you're familiar with our store philosophy, so let me take a moment to explain it. We like to place our stores in neighborhoods that are somewhat affluent. The plain fact is that most of our shoppers have incomes of more than $150,000 a year. So, we try to place our stores in areas where those people usually shop. "We're interested in targeting the non-gourmet customer, one who is interested in cooking but won't be making Peking duck. So, the stores are upbeat and convey a little bit of a laid-back feel, if you will. Our next store is going to be right here in our home area- Colorado Springs. We have a store in Boulder and one in Denver, but none down south. Because this is going to be our 50" store, we plan on having a 50th grand-opening celebration, with the kind of surprises and activities you might expect for such a notable opening. "Our stores generally occupy from 2,000 to 4,000 square feet of retail space, and we typically use local contractors for the build-out. A store build-out usually takes 120 days from the date the property has been procured until the doors open to the public. I can give you our last opening's project plan, so you have a feel for what happens. Your job will be to procure the property, negotiate the lease, procure the shelving and associated store furnishings, get a contractor on the job, and prepare the 50" store festivities. My marketing folks will assist you with the last part. You work in a functional organization with a separate department responsible for carrying out projects of this nature. You've been with the company long enough to know that Dirk is high up there in the executive ranks and carries the authority and power to make things happen. Therefore, Dirk is the perfect candidate for the project sponsor. You grab your notebook and start documenting some of the things Dirk talked about, clarifying with him as you write: The project objective is to open a new store in Colorado Springs six months from today. The store should be in an affluent area. The store will carry the full line of products from utensils to gourmet food items. The grand opening will be accompanied by lots of fanfare because this is the 50th store opening. You have a question or two for Dirk. "Is there a special reason we have to open, let's see, six months from now, which is February 1?" He responds, "Yes, we want the store to open the first week in February. Early February is when the Garden and Home Show conference hits the Springs area. We'll have a trade show booth there. We know from experience in other areas that our stores generally see a surge in sales during this month because of the trade show. It's a great way to get a lot of advertising out there and let folks know where we're located." "Another question, Dirk. Is there a budget set for this project yet?" "We haven't set a hard figure," Dirk replies. "But again, from experience, we know it takes anywhere from $1.5 to $2 million to open a new store. And we don't want to forget the big bash for the grand opening." "Thanks, Dirk. I'll get started writing the project charter right away. I'll be putting your name on the document since you're the project sponsor." Dirk concludes with, "Feel free to come to me with questions or concerns at any time." Source: https://csbweb01.uncw.edu/people/rosenl/classes/OPS572/Bremen%202010/Class%20excercises /Project%20Charter%20-%20Prelim%20Scope%20Statement%20Kim%20p.76a.docx QUESTION: ONE (25 MARKS) Any typical project is characterised by time, cost and scope. Deliberate what each of these project constraints entails and classify these from the above case study. QUESTION: TWO (25 MARKS) State the objectives of project procurement with support of relevant theory relating to the above case study. QUESTION: THREE (25 MARKS) As a project manager, your job will be to procure the property, negotiate the lease, procure the shelving and associated store furnishings, get a contractor on the job, and prepare the 50th store festivities. Deliberate the project procurement processes that you must follow and how you will go about achieving these with support from relevant project management theory. QUESTION: FOUR (15 MARKS) Discharge a plan on how to develop a qualified sellers list, with practical examples from the case study
