Project Appraisal

(Project Environment Analysis)

Lecture # 05
Project Management
(MG402)

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

Lecture Outline
4 D Methodology (Project Life Cycle)
Define it
Project Appraisal
Project Environment
Project Environment 5C Model
5C Model Defined
Micro Environment
Complexity > 7S Strategy
Collaborators
Competitiveness
Customs
Macro Environment
Context > PESTEL Analysis
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

Define it
Define the Project
Project Identification
Project Appraisal
Project Selection

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

Project Appraisal
Define the Project
Project Appraisal
Systematic Analysis of
Project Environment for
each project Proposal to
determine the detail
feasibility report
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

The Project Environment

It is very important to know the project environment.
WHY???
Because as a student of PM, you should know what could
come in your project path from its working enviornment.
It might come, and It might not come, But at least you were
ready for it.
But who will tell you, about What could come?
How will you know that; Something might come?
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

The Project Environment

But if you depend

Project Management Experience (Yours) s o l e l y

on
your
Project Management Experience (Other) e x p e r i e n c e ,
You
Project Management Knowledge Books w o u l d b e a f a i l
by
the
Project Management Knowledge Institutes p e r s o n
time you can do
Project Management Book
something
Project Management Case studies
better,

and

no

one would like to

give
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

work!!!!

you

more
6

So A Typical Project Look Like This

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

D-1

D-2

PESTEL

D-3

P3M3

D-4

WBS
7S
5C
SWOT

4P

And Project Management Make It Like This

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

5 Cs of the Project Environment

The environment in which projects operate may be summarised by the 5
Cs.
1. ComplexityThe level of difficulty or complication of a project;
2. Collaborators
How much of the end requirement a project will
deliver;
3. Competitiveness How many other organisations will be competing to
deliver that work;
4. Customer focus The expectation that customers will have their
needs met by the project.
5. Context
The external general influences on the
organisation in which the project is taking place;
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

FR
P2

FR
P3

12th September 2016

P5

Customer

Complexity

FR
P1

P4

FR
P4

H.A.Qazi, Lecturer ME DSU, MG402, FL15

Context

P3

Competitiveness

P2

Collaborators

P1

FR
P5
10

Project Environment 5 C Model

Context

Collaborators

Complexity

Competitiveness

12th September 2016

MACRO
Environment
Customer

MICRO
Environment

H.A.Qazi, Lecturer ME DSU, MG402, FL15

11

5 Cs -- Defined > Complexity

1. Complexity: (Micro Environment)
It helps to identify the level of difficulty or complication of a project.
This depends on the working atmosphere framework of the project.
The most important tool in identifying the framework issues in any
working atmosphere is the 7 S Framework.

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

12

5 Cs -- Defined > Complexity

1. Complexity:

12th September 2016

The 7S Framework of Project Working Atmosphere

H.A.Qazi, Lecturer ME DSU, MG402, FL15

13

5 Cs -- Defined > Collaborators

2.

Collaborators: (Micro Environment)

Collaborators are useful for consideration as they allow for the realization of opportunity
and threads related with operating with them.
Following are the major list of collaborators:
1. Agencies: Agencies are the middlemen of the business world. (recruitment agency)
2. Suppliers: Suppliers provide raw materials that are required to build products. There
are 7 different types of Suppliers: Manufacturers, wholesalers, merchants,
franchisors, importers and exporters, independent crafts people and drop shippers.
Each category of suppliers can bring a different issue to the project
3. Distributors: Distributors are important as they are the 'holding areas for inventory'.
4. Partnerships: Business partners would share assets and liabilities

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

14

5 Cs -- Defined > Competitiveness

3.

Competitiveness: (Micro Environment)

The competitor analysis takes into consideration the issues related to the
competitors for carrying out a project. The competitor analysis looks at the
following criteria:
1. Identify competitors: Identify both direct and indirect competitors, as well as
potential future competitors.
2. Assessment of competitors: The competitor analysis looks at competitor
goals, mission, strategies and resources. This supports a thorough
comparison of goals and strategies of competitors and the organization.
3. Predict future initiatives of competitors: An early insight into the potential
activity of a competitor helps a company prepare against competition.

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

15

5 Cs -- Defined > Customer

4.

Customer (Micro Environment)

Customer analysis can be vast and complicated. It is important to identify the
hidden needs of the customer

Business to Consumer

Business to Business

Geographic (Region, Density,

Climate)

Demographic (Size, type, location)

Demographics (Gender, Age,

Nationality)

Operating Variables (Using Status,

Technology, Capability)

Psychographic (lifestyle, Personality)

Purchasing Approach (Criteria,

policies, structure)

Behavioral (Purchase Occasion, Using

Status)

Situational Factors (Urgency, Size of

order)

12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

16

5 Cs -- Defined > Context

5. Context: (Macro Environment)
To fully target the macro level environmental issues, One
acronym is widely used: PESTEL
Political
1. Political
2. Economical
Legal
Economic
3. Social
4. Technological
5. Ecological
Environmental
Social
6. Legal
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

Technical

17

Expected Learning
4 D Methodology (Project Life Cycle)
Define it
Project Appraisal
Project Environment
Project Environment 5C Model
5C Model Defined
Micro Environment
Complexity > 7S Strategy
Collaborators
Competitiveness
Customs
Macro Environment
Context > PESTEL Analysis
12th September 2016

H.A.Qazi, Lecturer ME DSU, MG402, FL15

18