THE PROJECT: RESEARCH ON THE IMPACT OF

CONGESTION CHARGING ON LOCAL BUSINESSES

 

 

Mind Map

 

 

Explanation of the Mind Map

The figure above shows the interaction of a business entity with its internal and external environment.  Since a strategy can be triggered by competition, industry standards, government policy and employee motivation, these four aspects of a business is crucial to its success.  In effect, using analogy, this constitutes the basic framework of a business decision-making analysis.  Specially, this framework will identify the advantages and disadvantages of congestion charging for business within the area and also nearby firms.  For customers, a business may be adversely affected when low-income consumers may be distracted with the charge at peak times in which it is the regular schedule for shopping or dining for businesses within the charging area.  It will lead to loose in sales and therefore policymakers must be able to explain to this to the businesses within the charging area. 

 

The same analogy is applicable to competitors between businesses that are competing in the same market.  The location advantages (e.g. the presence or absence of congestion charging within the area) can increase the profitability of those outside it or in nearby areas and lower the profits of those within it.  In effect, business industry is not severely affected rather only those in minority.  For business operations, logistics companies or even those with business establishments that delivers the products may produce additional cost due to congestion charging.  Lastly, increase in taxes and economic recession may deepen the problems of business within the area if congestion charging is implemented.  The mind map shows that business are affected and can affect the environment in which it operates and thus can also affected by advantages and disadvantages of congestion charging.      

 

 

Work Breakdown Structure (WBS)

 

1.0.0.0. Research Project: Impact of Congestion Charging on Local Businesses

 

1.1.0.0. Customer Survey

1.1.1.0. Data Collection

1.1.1.1. Prepare questionnaires

1.1.1.2. Conduct interviews and distribute questionnaires

1.1.1.3. Record and organize data

1.1.2.0. Data Analysis

1.1.2.1. Apply statistical treatment to quantitative and qualitative data

1.1.2.2. Search applicable theories

1.1.2.3. Report findings

                           1.1.3.0. Data Presentation

1.1.3.1. Justify reliability and consistency with past  

            researches

1.1.3.2. Definition of implications

1.1.3.3. Summarize, secure copy and file

                                        

 

            1.2.0.0. Business Operations Survey

  1.2.1.0. Data Collection

                1.2.1.1. Prepare questionnaires

                1.2.1.2. Conduct interviews and distribute questionnaires

    1.2.1.3. Record and organize data

1.1.2.0. Data Analysis

1.1.2.1. Apply statistical treatment to quantitative and qualitative data

1.1.2.2. Search applicable theories

1.1.2.3. Report findings

1.1.3.0. Data Presentation

 1.1.3.1. Justify reliability and consistency with past  

            researches

 1.1.3.2. Definition of implications

 1.1.3.3. Summarize, secure copy and file

 

1.3.0.0. Business Sector Evaluation

1.3.2.0. Research on secondary data

               1.3.2.1. Evaluate past researches

               1.3.3.2. Study established theories and principles within 

  the British environment

1.3.3.3. Study established theories and principles within 

  a global perspective

1.3.3.0. Conduct forums with experts and academicians

1.3.4.0. Integrate to other Aspects

1.3.4.1. Formulate over-all business impact evaluation

        mentioning the effects on key industries

                                          1.3.4.2. Re-check findings on consistency and reliability

                                          1.3.4.3. Make reports and summaries

 

1.4.0.0. General Environment Scanning

               1.4.1.0. Define current PESTEL situation in the area

               1.4.2.0. Conduct research if PESTEL knowledge is insufficient

   1.4.3.0. Conduct short interviews with experts, politicians, lawyers

                                     and other pertinent people about the future of PESTEL

                           1.4.4.0. Collate data

                           1.4.5.0. Analyze data

                           1.4.6.0. Search relevant theories and principles

                           1.4.7.0. Report findings, summarize, secure copy and file

                                     

                               

Product Breakdown Structure (PBS)

 

1.0.0. Research Project: Impact of Congestion Charging on Local Businesses

1.1.0. Customer Aspect

1.1.1. Effects on Business Patronage and Buying Behavior

1.1.2. Effects on Charged Zone Outlet Visitations

1.1.3. Effects on Purchasing Power

            1.2.0. Operations Aspect

                        1.2.1. Effects on Functional Areas like Distribution and Marketing

                        1.2.2. Effects on Cost and Differentiation Strategies

                        1.2.3. Effects on Short- and Long-Term Profitability/ Strategy

                        1.2.4. Effects on Business Risks

            1.3.0. Business Sector Aspect

                        1.3.1. Effects on Capital Requirements

                        1.3.2. Effects on Switching Costs

                        1.3.3. Effects on Retaliation of Outside-the-Zone Competitors

                        1.3.4. Effects on Bargaining Power of Suppliers and Customers

            1.4.0. General Environment Aspect

                        1.4.1. Effects on Demographics

                        1.4.2. Effects on Local Economy

                        1.4.3. Effects on Local Politics and Legislation

                        1.4.4. Effects on Socio-cultural Aspects

                        1.4.5. Effects on the Level of Local Technology

 

 

Organizational Breakdown Structure (OBS)

 

1.0.0. Project Manager

 

1.1.0.   Customer Survey Division

1.1.1.   One (1) Senior Transport Analyst

1.1.2.   One (1) Junior Transport Analyst

1.1.3.   Three (3) Junior Research Assistants

                                     

            1.2.0. Operations Survey Division           

1.2.1. One (1) Senior Business Economist

1.2.2. One (1) Junior Transport Analyst

1.2.3. One (1) Junior Business Economist

1.2.4. Three (3) Junior Research Assistants

                       

            1.3.0. Business Sector Evaluation Division

                        1.3.1. One (1) Senior Business Economist

1.3.2. One (1) Senior Transport Analyst

 

            1.4.0. General Environment Scanning Division

                        1.4.1. One (1) Senior Transport Analyst

1.4.2. One (1) Junior Business Analyst

           

            1.5.0. Administrative Staffs (e.g. secretary and clerk)

                       

1.6.0. Outsourced Personnel

           

                       

 

 


 

 

 


 

Activities

Duration

Resources

Customer Survey

 

 

Prepare questionnaires

20 days

Customer division, (1) secretary/ clerk

Conduct interviews and distribute questionnaires

180 days

Customer division, (3) secretary/ clerk

Record and organize data

10 days

Customer division, (1) secretary/ clerk

Apply statistical treatment to quantitative and qualitative data

10 days

Customer division

Search applicable theories

20 days

Customer division

Report findings

10 days

Customer division

Justify reliability and consistency with past researches

20 days

Customer division

Definition of implications

10 days

Customer division

Summarize, secure copy and file

5 days

Customer division, (1) secretary/ clerk

 

285 days

 

Business Operations Survey

 

 

Prepare questionnaires

20 days

Operations Division, (1) secretary/ clerk

Conduct interviews and distribute questionnaires

90 days

Operations Division, (3) secretary/ clerk

Record and organize data

10 days

Operations Division, (1) secretary/ clerk

Apply statistical treatment to quantitative and qualitative data

10 days

Operations Division

Search applicable theories

20 days

Operations Division

Report findings

10 days

Operations Division

Justify reliability and consistency with past researches

20 days

Operations Division

Definition of implications

10 days

Operations Division

Summarize, secure copy and file

5 days

195 days

Operations Division, (1) secretary/ clerk

 

 

 

Business Sector Evaluation

 

 

Evaluate past researches

20 days

Sector division, (1) secretary/ clerk

Study established theories and principles within the British environment

20 days

Sector division

Study established theories and principles within  a global perspective

20 days

Sector division

Conduct forums with experts and academicians

60 days

Sector division, other divisions, Outsourced personnel, (5) secretary/ clerk

Formulate over-all business impact evaluation mentioning the effects on key industries

30 days

Sector division, other divisions, (2) secretary/ clerk

Re-check findings on consistency and reliability

10 days

Sector division, division heads

Make reports and summaries

10 days

Sector division

 

170 days

 

General Environment Scanning

 

 

Define current PESTEL situation in the area

5 days

Environment division

Conduct research if PESTEL knowledge is insufficient

10 days

Environment division

Conduct short interviews with experts, politicians, lawyers and other pertinent people about the future of PESTEL

 

Collate data

30 days

 

 

 

 

5 days

Environment division, (2) secretary/ clerk, outsourced personnel

 

 

 

Environment division, (1) secretary/ clerk

Analyze data

10 days

Environment division

Search relevant theories and principles

10 days

Environment division

Report findings, summarize, secure copy and file

5 days

Environment division, (1) secretary/ clerk

 

75 days

 

 


 

Business Report

Notes to Customer Survey

There are seven (7) city-districts within the metropolitan county of West Midlands.  This part of West Midland region is suitable for survey because this part is populated and whose business activities are abound.  The seven districts and there population are Wolverhampton (239,258), Dudley (305,600), Walsall (253,500), Sandwell (286,300), Birmingham (1,000.200), Solihull (200,900) and Coventry (304,600).  Five hundred (500) houses will be surveyed from these districts except Birmingham which will have one thousand five hundred (1,500) houses due to its relatively bigger population.  The customer division including the head will go out for survey although the head (e.g. senior employee) will interview houses of more prominent people.  Further, each can interview at least five (5) houses per day which gives a total of twenty five (25) houses per day for the whole division.  As a result, it will take twenty (20) days for the division to finish each district survey while Birmingham will take sixty (60) days.

 

Preparations of questionnaires will require review of related questionnaire framework (5 days), scanning a particular district (5 days) and establishing the questionnaire itself (10 days).  In doing the succeeding activities, the division will be not go to the next task if the preceding tasks are not completed and verified.  Necessary software, books, journals and online library are considered overheads because the company has these sources already.  The conduct of interviews require field work which can result to transportation, hotel and allowance costs.  Communication cost can also transpire from the transaction of the headquarters and field employees.  Performance monitoring will be performed by the project manager which can include quantity and quality of work for the day with the assistance of the senior specialist.   

 

Notes to Business Operations Survey

On the other hand, business survey will include those businesses which likely to be within the charging area.  It is assumed that one hundred (100) businesses are within this area except for Birmingham which has three hundred (300) and the division can finish two (2) businesses in one day.  Their business size is those in medium to small capital because it can be argued that big companies have low sensitivity to charging effects.  The senior employee will not interview except for difficult situations where the business owner does not want to show business data.  As a result, the division can finish the six districts in sixty (60) days while Birmingham can be finished in thirty (30) days.  It can be assumed that the division can gather financial information relating to logistics and marketing that can be affects when customers tend to be less due to charging zone effects to business operations.  The duration and nature of activities is the same as the customer survey except for the conduct of interviews because there are relatively less sample required for this particular survey.  Nevertheless, the division will incur the same costs.

 

 

Notes to Business Sector Evaluation

The business sector evaluation team is only composed of two senior employees experienced in various aspects of business operations and transportation industry.  They are also considered as the experts in their fields and have higher degrees which make them in-depth to the relevant theories and principles that can be applied in the current research.  Their findings will be the backbone of analysis for all surveys and scanning that have done.  They will focus on the implications of surveys and scanning to the overall assessment on business industry with emphasis to key sectors of each district.  Their task is to regularly collaborate with the heads of other divisions that are currently doing their surveys and scanning to have an idea on what to research on secondary data.  After having established background, it is time for in-depth interviews including forum to experts and other academicians regarding the research.  This task is one of the crucial tasks of the team which will affect the overall credibility of the findings because respected and known people will evaluate the on-going and actual results of research.  The selection and notification will take 10 days while actual communication/ forum to a group of experts will take several weeks until the surveys and scanning are finished.  Business sector evaluation output will conclude the research project because it tackles business issues in the locality in a very general manner unlike business operations which is more in-depth.

 

Secondary researches will be conducted within and outside the headquarters.  This will involve some transportation and allowance costs.  Further, selection and preparation for a list of experts will connote representation costs which can include meetings in a restaurant and home visits with gifts to the expert among others.  As the senior analysts will communicate to known personalities, they should be equipped with proper attire to set the mood and professional environment which can require other costs.  Conducting actual forums can occur before or after the necessary surveys and scanning while the overall assessment can only occur after surveys and scanning findings/ implications are determined.  At that point, all divisions are required to meet and integrate their findings.  When this is finished, the project is also finished.        

 

Notes to General Environment Scanning

The general environment team is consisted of two people.  The allocation of authority to a senior transport analyst and subordination of a junior business analyst is a technique to focus the research on transport-related areas.  The general environment may be too ambiguous and ever-changing that business economists may aggravate the difficulty due to their holistic approach.  Their primary task is to interview people expert in the PESTEL environment concretize their knowledge through these interviews.  It will take few months to finish their task.  Compared to two surveys above, PESTEL will undertake less time due to focused interviews necessary to complete the information.  Perhaps, after PESTEL analysis is done, the team can help other teams to expedite the activities under their department.  This act will maximize the full-time positions of these employees with regards to the research project.

 

The entire task will be carried in the headquarters except for the interviews.  As a result, transportation expense will be incurred.  As both employees are living within the metropolitan county of West Midlands, they are familiar with current issues although forecasts would be inquired to the experts especially the politicians.  As a result, representation costs and other costs incurred like the business evaluation team will ensue.              

 

Appendix                 

(See Project Management attachment)

 

 


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