PROJECT MANAGEMENT

Project Management - Petrol Station

Project Management - Petrol Station

Scope of the Project

The project was chosen, as there is a need for a petrol station in the area. Half of the oil production of Europe comes from the United Kingdom (Zittel, 2001). There is great potential in the petrol pump business as it is located in the main hub of the city. It will be beneficial for the population of the surrounding areas to have a petrol pump near by. This will be convenient, as the people of the vicinity will not need to go far away to get petrol filled. The scope of this petrol pump project is vast as it is going to provide services to students of the college, professionals who come to offices, and surrounding areas.

The approximate completion time for the project is 18 months, which includes 15 days of trial time. The allocated budget for this project is € 60,000. This includes various direct and indirect costs that will be incurred for the completion of the project. The direct costs include salaries for labour, equipment used, construction material costs and other direct costs. Where as, indirect costs include travel expenses, time delays etc.

Work Breakdown Structure

The following chart is a WBS for the Petrol Station Project. The WBS indicates the breakdown of the steps and the processes that will be required to complete the project.

SWOT Analysis

Strengths

The founders of this project have previous experience and knowledge of construction and the petrol station business, so this counts as an advantage point for the business.

The business is ever running because the need for petrol is inelastic. Customers always require petrol to run their cars.

The petrol station will be located in an area where there is college; which means there will be many students at the university who will want to fill up their cars with petrol

It will be convenient for the people who live in surrounding areas, as there is no petrol pump within a 50 miles radius.

The location of this petrol station is highly visible as it is located on the main road.

The petrol station is a great viable option for a business as the number of cars has increased since the credit bubble burst.

Weaknesses

The weakness of this petrol station project is that it may take over five years to reach the break even cost.

The mark up and profit on fuel prices is extremely low, which is why it can take half a decade to recover cost.

The petrol station needs other supplementary businesses such as a tuck shop, to sustain in the business.

Opportunities

The business can expand to have a small tuc shop at a later stage, attached to the petrol station.

There is no petrol pump in the 50 miles radius, so this is petrol station can be an opportunity to set up another one in future to cater to another area.

If the business expands, it can take residents from the neighbourhood as employees.

The area is located in the hub of the city, which means ...