Kingston-Bryce Business Case

Scenario
As a Project Manager for Kingston-Bryce Limited you have been assigned to create a business case. The Board of Directors for Kingston-Bryce Limited (KBL) is eager to move forward with the acquisition of their competitor. The acquisition of the competitor will enable KBL to expand operations and triple their workforce and will take 18 months to complete with a projected cost of $5 million. In order for this acquisition to be successful, you will need to use your project management skills to ensure success.

Instructions
Your task is to create a business case in Microsoft Word to justify the steps necessary to complete the acquisition. The business case is essential for providing justification and details of the scope of work for the project. You will need to be creative and develop the following items as if you were running the project.
Include the following (you will need to create these items):
The purpose of the project
The pros and cons of the project (benefits)
Budget/Funding schedule (this is how you project to allocate the $5 million budget)
Major risks or opportunities of the project

find the cost of your paper

Sample Answer

 

 

 

Business Case: Acquisition of Competitor by Kingston-Bryce Limited (KBL)

1. Project Purpose

The purpose of this project is to acquire [Competitor Name], a direct competitor of Kingston-Bryce Limited (KBL). This acquisition will enable KBL to:

  • Expand Operations: Gain access to [Competitor Name]’s existing market share, customer base, and product lines, leading to significant growth.
  • Triple Workforce: Increase KBL’s workforce by integrating [Competitor Name]’s employees, fostering a larger talent pool with diverse skillsets.

Full Answer Section

 

 

 

  • Enhance Market Position:Become a dominant player in the industry by consolidating resources and eliminating a major competitor.
  1. Pros and Cons (Benefits):

Pros (Benefits):

  • Increased Revenue:Expanded market reach will generate higher sales and profitability.
  • Synergy and Cost Savings:Combining operations can lead to economies of scale, streamlining processes, and reducing redundancy.
  • Enhanced Innovation:A larger talent pool can foster a more innovative environment and accelerate product development.
  • Improved Market Share:Acquiring a competitor eliminates them as a threat and strengthens KBL’s market position.
  • Access to New Technologies and Resources:Integration with [Competitor Name] may provide access to valuable technologies and resources not currently available to KBL.

Cons:

  • Integration Challenges:Merging company cultures, processes, and IT systems can be complex and time-consuming.
  • Employee Morale:Job insecurity and uncertainty during the integration process can affect employee morale and productivity.
  • Retention of Key Talent:There’s a risk of losing key personnel from the acquired company during the integration process.
  • Unexpected Costs:Unforeseen costs associated with integration, such as severance packages or system compatibility issues, might arise.
  1. Budget/Funding Schedule

The total project budget for the acquisition is estimated at $5 million. Here’s a breakdown of the projected allocation:

  • Due Diligence and Legal Fees:$1.5 million (30%) – Covers legal and financial assessments of the target company.
  • Integration Planning and Management:$1.2 million (24%) – Funds dedicated to developing a comprehensive integration plan and managing the integration process.
  • Employee Retention Incentives:$0.8 million (16%) – Incentives to retain key personnel from the acquired company.
  • IT System Integration:$1.0 million (20%) – Costs associated with integrating IT systems and data migration.
  • Change Management and Communication:$0.5 million (10%) – Developing communication strategies to manage employee concerns and ensure a smooth transition.

This is a preliminary allocation, and adjustments might be necessary as the project progresses.

  1. Major Risks and Opportunities

Major Risks:

  • Integration Failure:Inability to effectively integrate [Competitor Name]’s operations with KBL’s existing systems and processes.
  • Loss of Key Talent:Key employees from the acquired company leaving during or after the integration process.
  • Market Disruption:Negative customer reaction or market resistance to the acquisition.
  • Hidden Liabilities:Unforeseen liabilities discovered during due diligence that could impact the project’s financial viability.

 

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