Business Project For Deltol Group Of Companies Business Essay


The need for projects usually come in all forms of organizations both profit and non-profit making organizations. The structure of a business entity, its vision and mission determines the level and kind of projects it come up with to enhance the capacity and strength of the business.

Meeting with stakeholders (the people who are supposedly going to benefit from the project and the investors) will help to create ideas for projects. Involving stakeholders in the outline and design process will also enable the project more chances of survival and it will generate varying methods for getting the proposed objectives. Stakeholder involvement will also help ensure community support for the project during the proposal writing process and after the implementation process is put through for the project to be executed.


To produce a proposal on a new project that an organisation is about to start.

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The title and nature of the project.

The business case of the project.

Tangible outcomes of the project.

Competitive advantage of the organisation through the use of the project.


The business need of DELTOL GROUP OF COMPANIES is the construction of office building (annexe) / ware house for business expansion.

DELTOL International Group of Companies is an organisation based in Nigeria; it is a multi task organisation which is into production of household equipments. It focuses on the forward and backward integration which involves collection of raw materials for production, production process, and distribution of its products. Its products include Furnace, Dryer, AC unit, stove, and oven. I have worked with this organisation for about five years and so have cognate experience and adequate understanding of their goals, vision, objective and projects needed to put the business in the standard and competitive structure.

This office building which will house the international trade department of the company would also have a large warehouse to accommodate more finished goods of the company for export into branches outside Nigeria and other branches.

DELTOL maintains an effective development process for products or services which is divided into a number of key stages:

Generating the idea.

Screening the ideas.

Defining the concept of the project.

Development concept.

Test marketing and finalising the concept

Launch the project after it has come real.

In practice some of these stages may overlap, but the presence of a staged process will help keep timing and costs under control.

Manage a development project

DELTOL project managers are essential to ensure the successful development of new products or services. Part of their duty is also to:

control costs and allocate resources

draw up the key parameters for the product or service's parameters

co-ordinate the product development team

timetabling the development process


A project is typically defined as a set of interrelated activities having a specific beginning and ending, and leading to a specific objective. Probably the most important concept in this definition is that a project is intended as a temporary endeavour, unlike ongoing, steady state operations. Secondary is the uniqueness of the output.


The business case to be reviewed in this project work of DELTOL requires the use of the works of some authors in project management.

1. The starting point of project success is the conception of the project and analysis.

2. It is always important to check on the limiting factors that can come up during the course of the project.

3.Checking at the issues that surrounds the conception and realisation of the project is such that requires urgent attention as this will determine the level at which the project would go as regards the success of the project and its benefits to the stakeholders.

4. The statistical strength of the project require that a befitting design, and the well organized system of project features be put in place.

1.3 COMPETITIVE ANALYSIS, PORTER'S FIVE FORCES and SWOT ANALYSIS The above would be carried out to analyse the benefit that would accrue to the company when the project is executed.


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Michael Porters explains that competitive advantages give a company an edge over its rivals and an ability to breed improved value for the company and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to reduce the advantage.

DELTOL has some competitors which are very sensitive to the market development (local and international). They include Doyin Group of Companies, Eleganza industries, Manchinto International, West Africa Household utilities manufacturer (WAHUM) etc. These companies offer the same product, service, which are very competitive with the DELTOL market. They also produce same range of products but different brand of items. They are also strategically located in the African market.


Building a new office (annex) which would serve as a base for international trade department would create a competitive advantage for DELTOL International Group as this will enable the expansion of its operational activities and the warehousing. This will also allow DELTOL to make proper use of its competitive advantage over its competitors in the same industry.

Competitive Strategies

Michael Porter advised on four forms of business strategies which can be used in order to achieve competitive strength. The strategies relate to the level to which the scope of a business' dealings are opened and closed, the extent to which a business needs to make its products different.

Below is an analysis of the competitive advantage by Michael Porters a management author that would accrue to the company by the construction of the building.

To become a cost leader and having differentiated products in the market, the industry segments need to be made unique. However,, the differentiation focus and cost focus strategies works so well in a broad and other industries. This building will enable a reduction in expenses on rent and accommodation which would later be channelled into producing more goods at premium prices.

Strategy - Differentiation

According to Michael Porter 'This strategy involves choosing a form in a market while structuring the business differently to meet those criteria set up by the management. It involve asking for a reduced price often to show the higher production costs and extra value-added effect features made ready for the consumer. This is one of the strategies DELTOL is willing to achieve with the new building and the training it is going to give its staff about international trade.

Strategy - Cost Leadership

This strategy is usually known with big businesses giving standard goods and services with relatively little differences that are accurately acceptable to most of the customers as operated by DELTOL. This also would be achieved when the company increase the size of its warehouse for keep of its business as a low-cost leader will also reduce price of its product to maximise sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its share in the market.

Strategy - Differentiation Focus

In this strategy, DELTOL aims to make itself come out distinct in the range of products which it has and is planning to come up with at the success of the building structure. The warehouse when finally done would enable the company to plan ahead and make further plans for its products in the local and international market.

Strategy - Cost Focus

Here DELTOL requires a lower-cost advantage in just on or a small number of market department. The product will be basic - perhaps a similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. The building would definitely cause a reduction in product as operation expense would be reduced.

However to this effect, DELTOL would adopt basically all the strategies to ensure it gain the market share.


Michael Porter's in his write up on 'Porter Five Forces look into the root of the course than just looking for effects and general industry issues and information. This is also a better point of use to develop better and effective strategies for marketing. The five forces include:

1. Incumbent companies

2. New companies

3. Substitutes for products

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4. Suppliers

5. Customers

Porter designed his basic model to be used for the whole industry. The same model could also be used to study a faint environment, such as online presence within an industry. The following are issues to consider in the marketing strategies of DELTOL:

Competitors: Those sites, companies like Doyin Group of Companies, Eleganza, WAHUM, etc, that sells the same items to the customers.

New entrants: These are set of new producers who are new in the market and might want to start a related product as in production which definitely would affect the existing market. To this effect, DELTOL would be affected by the entry of new producers in the market.

Customers: The goods of DELTOL are such goods that would attract customers to appreciate the product. However, customers need should be paramount as there taste and quest can determine the extent at which patronage would go.

Suppliers: Those companies that supply DELTOL with the products i.e. raw materials used in production. These have power to either increase the cost of supply of the raw materials or shift to another producer in the same industry which could affect the sales of DELTOL'S products.

Substitutes: This refers to getting other products which could be used in place of the company's products. These substitutes include products from Manchinto, Eleganza and other multinational companies like Philips, Samsung.

SWOT Analysis

SWOT analysis shows strengths, weaknesses, market opportunities for the company, and threats to the business. For any business minded individual or business as a whole, it is better to weigh the weaknesses of the company against the strengths of the company so as to realise the how much impact the weaknesses can have and how they can be overturned.



The following make up the strength of DELTOL Group of Companies:

It has a controlling market share in the production and sales of household wares in Nigeria and West Africa.

Its market is strategically located in the heart of Nigeria's business centre Lagos with production centres in 8 different states in the country.

This company has a good number of skilled workers who are knowledgeable in the marketing and management of the company.

It sources most of its raw materials locally which means low cost of raw materials ass they are sourced locally.

Strong marketing strategy.


These include:

The company does not have a strong market in the international market.

Expertise required handling most of the new machines to be installed.


There are a lot of opportunities for DELTOL amongst which we have:

Large market share to grasp in the country.

The extension would strengthen the international market of the company.

Competitive advantage as it is currently working on cost reduction so as to gain a larger market share.

Government policy support for indigenous companies.


There exist some threats to DELTOL as it operates in an open market. These include:

Other competitors sharing the market with DELTOL.

Recession which is affecting the global market.

Threat of substitute to their products.

Change of consumer taste.

Fall in share price.


There are many benefits on the successful completion of this project to DELTOL GROUP OF COMPANIES and its stakeholders. These include:

It leads to achievement of desired goals and visions of the company.

The building when completed will enhance smooth operation of activities in the organisation.

Creation of more jobs as more hands would be required to carry out more tasks/job in the organisation.

Role clarity and shared purpose. A shared understanding of what you expect the project to achieve can contribute to a sense of team purpose.

Motivation for staff and users. It can be very motivating for staff to see evidence of the outcomes of their work. It can also be encouraging for service users to see their own progress.

Saving time. Planning your work around what you know works could make it more effective and efficient in the long run. Also, focusing on the information you need to collect, rather than on what has always been collected, could reduce the time spent on monitoring.



The success of any organization depends on the capacity and kinds of resources it has put together to ensure it break even in the market. To achieve this, the cost analysis of the project need be carried out to ensure the projects viability.

The kind of business to do also requires a strong analysis as this would help in determining the level the business would be placed in the business environment.

Also, to succeed in business, the individual or group of people need t put up adequate resources for the development of the company's goals and objectives.


This task is divided into two sections which require a report to the management identifying the resources for the new project which will include materials, equipments, labour, time finance and other resources deemed necessary for the project. Also, staff development and training cost for the new project to be considered. The task requirements are itemised below:

To identify all resources required for the project and the benefits that would accrue to the organisation.

To identify all costs associated with the project.

To set up a budget for the project.

To carryout costs benefit analysis for the project.

Staff development and training costs.


FROM: Management Consultant

TO: Board of Directors/Management

DATE: 22nd July, 2010.



Starting a project in the business world is such an interesting task but that requires resources which include finance (money), labour (man power), and machineries. This brought about the study of the 3 M's for an organisation. This project cannot be successful except the manpower is adequately equipped and well trained. These issues we shall develop in this report.

DELTOL International Group of Companies is planning to invest in the building of an office/warehouse for expansionary motives. The cost analysis will consist of:

Project summary information (Budget)


Contract fee (from Cappa and Dalberto Construction Company) 150,000

(The make up of the contract fee is in the tender submitted)

Furniture and fittings 10,000

Machinery 25,000

Training cost 4,500

Recruitment cost (extra cost) 2,500

Government assessment fee 2,000

Miscellaneous expenses 6,000

TOTAL 200,000


All values have been converted to Great Britain Pounds (GBP) from Naira (Nigerian currency) at the rate of #250 to £1.

Planned and actual financial information

As scheduled, all expenses listed above would be met as feasibility study was made before the cost analysis was produced.

Planned and actual schedule information

Stakeholders' analysis has been carried out to involve all the people concerned about this project especially the shareholders whose investment would be used to carry out this project.

Planned and actual staffing information

The number of staff that would be employed in addition to the existing staff to occupy the new building will make up to 100 people. They will work in different departments and would assist in carrying out the extended work schedule of the company.

Project requirements list and sources

The requirement for the project has been outlined above. However, the sources would better be identified through the source of finance. The finance would be made through shareholders' fund/investment, borrowing from the bank (loan) and from the company reserve.

Project risks and mitigation measures

Risk analysis is a function of the directors put in place through the establishment of internal control system. The internal control of the company is able to absorb every issue as regards the riskiness of the project.

The quality of work done at the end of the project is a good determinant of the level of success that would be achieved. To this effect, project audit would be carried out at the end of the project development to ensure proper work is done.


The company's expected cost of capital is 15%

The analysis is as follows:




0 (200,000) 1.000 (200,000)

1 50,000 0.870 43,500

2 56,500 0.756 42,714

3 59,200 0.658 38,954

4 72,600 0.572 41,527

5 85,000 0.497 42,245


The above shows that the project if undertaken will bring about a positive net present value of £8,940 at the end of year 5 which shows that the project is viable.

(Source: Company management account year 2009)


A good and viable project just as the one being proposed by the management of Deltol Group of Companies would have a lot of benefits amongst which includes:

Market share/ competitive advantage over the competitors.

Expansion of the business.

Increase in sales and improvement on the profit of the company.

Increase share holders wealth.

Job creation.


In many organizations today, there are a lot of challenges that depict how greater confidence, initiative, solutions-finding, and problem-solving capabilities among the people can be ensued. These organisations need staff at all levels to be more self-sufficient, creative resourceful, and independent. This act enables staff to operate at greater strategic level, which makes their organizations more productive and competitive. People's efforts produce bigger results. It's what all organizations strive to achieve.

Staff development and training for DELTOL GROUP OF COMPANIES members of staff is an important part of developmental stage of an organization as it affects the various department, unit and individual levels. It is therefore important that the move of learning into the workplace is assessed through a process of review and evaluation so that its success or otherwise can be established and so that we can demonstrate the contribution learning makes towards overall organisational success.

The training would cost DELTOL £4,500

£2,500 for programme facilitators,

£500 for materials,

£300 for refreshment for the 3 days of the training

£1,200 for machine competence training, which will definitely enhance the quality of staff of the company. The trainer is Messer's QUICKDRILL Consultants based in Abuja, Nigeria. This training would be done along as the building in under construction.


Promote business efficiency and efforts of the employers to train and develop staff to operational needs, goals and set targets.

Identify cost effective and valuable training programmes, leading to better focused learning and developmental needs of the company.

Ensure the transfer of acquired knowledge into the company.

Use and reinforce techniques learned to help improve quality and customer service within the organisation.

Help define the laid down future development objectives.



According to, an Implementation Plan is a detailed project management tool for a specific policy measure or package of measures, put together to help company project managers to manage and monitor implementation constructively.

Implementation Plans are intended to be measurable and easy, reflecting the level of urgency, innovation, complexity with the sensitivity in line with the particular policy measure.

The business need of DELTOL GROUP OF COMPANIES is the construction of office building (annexe) / ware house for business expansion. To achieve this, after the concept of the project and the materials that would be required, the implementation of this project is required. To this effect, a set of objectives have been outlined below which would be used to examine the planning and development of the project.


Using suitable tools and techniques to plan the implementation of the chosen project,

Develop a milestone for the project.

Analyse the involvement of stakeholders in the implementation of the project.

Develop a set of measure that would enable you monitor and evaluate progress of the project and ensure relevant feedback procedures have been put in place to inform stakeholders of the project's progress.

3.1 IMPLEMENTATION PROCESS writes 'The management team in any business sets the tone and expectations for the rest of the employees. Therefore, it's important to get the team behind the project and driving it forward right from the beginning. This will enable the whole business to understand the benefits of the new system, and how their current business processes will change for the better. Scheduling company or team meetings, regular e-mail newsletters and bulletins are all ways of transferring this message'.

Engaging employees on time is therefore very crucial. Checking on the firm's current processes is a good way of doing this and it also enable the stakeholders to understand how the new business solution can be followed to work within the business.

The next step is to understand how the existing business methods can be improved upon. In order to ensure that a new system is used to its full potential it needs to be fixed to the goals of those using it.


DELTOL GROUP OF COMPANIES have this implementation stage to follow in order to ensure a proper and adequate project development.

The following shows the stages to be followed in the development of the project - construction of office building and warehouse (annexe).

The above structure would be explained further with the stakeholders' analysis.

( assessed on 19/06/2010).


Project milestones are "how are we doing?" thresholds, indicating whether a project is on track to finish as expected, planned and required.  Specific milestones will vary by project, but in general, project milestones can be defined as the group of accomplishments, results, deliverables and events used to measure overall and specific project progress.



What will be achieved

The completion of the office building and warehouse for the use of the international sales department and warehousing.

Specific criteria

A level hedge criterion for the construction has been given to the building contractor Cappa and Dabelto so as to achieve the desired project.

Quality measures

The quality of materials to be used for the construction is standard checked and guaranteed materials for the building.

Target date

The target date is 22nd July, 2010 for the start and March 2011 for the completion of the project. Also the training will take three (3) weeks. This will be done before the building is ready. Machinery, furniture and fittings ordered and would take up to four (4) months to get to Nigeria from Germany.









FEB-MAR. 2011

What will be achieved



























Specific criteria



























Quality measures



























Staff training



























Target date



























The above represents the Gantt Chart on the construction of ware house/office annex for DELTOL Group of companies showing the diagram of how and when the project would be achieved.


Stakeholders are set of people, groups with interests in a project or organization. These are into two groups' primary and secondary stakeholders. Primary stakeholders are that are affected, either positively (beneficiaries) or negatively with the Secondary stakeholders are the intermediaries in the aid delivery process. This definition of stakeholders includes both winners and losers, and those involved or excluded from decision-making processes.

Key stakeholders are those who can significantly influence, or are important to the success of the project and the organization at large.

The stakeholders in DELTOL GROUP OF COMPANIES are categorized into principal (primary) and secondary stakeholders. These include:








Basically, the major stakeholders of DELTOL GROUP OF COMPANIES include:

The Shareholders/Management

The customers

Members of staff

The Government

The competitors

The Shareholders/Management

These are the owners of the business. They have invested there resources in the business in order to have a maximised profit. At the implementation level/phase, all project stakeholders need to be involved as this would involve the costing and approval of the project by the directors before it can be carried out. This is the stage every projects survival are determined. This is the stage DELTOL shareholders bring in their expertise and investment.

 The customers

The customers here do not really play a decision role. However, there needs have to be considered as this will give the company the drive to improve more on the services provided.

Members of staff

Members of staff of DELTOL need to be actively involved in the implementation stage because these are the people who work directly in the production sector of the organisation. They are to be actively informed about the process and progress at the building site so they know when work will resume at the completion of the project and how they would be involved.

The Government

The government is the primary corporate stakeholder and the final arbiter of what corporations must do. Here, the tax to be paid by the organisation on the building project, the corporation tax, and value added tax to be paid as it will improve the status of government's development to the people/community.

Corporations must bow to the sovereign.

The state presides over the fate of a company and its investors. The government determines who benefits from corporate actions.

By controlling all corporations within a jurisdiction, government is usually the major factor in determining capital flows.

The competitors

Competition is a form of contest between individuals, groups, nations, animals, etc. for territory, a niche, or a location of resources, companies like Doyin Group of Companies, Eleganza, WAHUM, etc, that offer the same product, service, or information as DELTOL. It arises whenever two or more parties strive for a goal which cannot be shared. Competition occurs between living organisms which co-exist in the same environment. For example, animals compete over water supplies, food, and mates, etc. Humans compete for water, food, and mates, though when these needs are met deep rivalries often arise over the pursuit of wealth, prestige, and fame. Business is often associated with competition as most companies are in competition with at least one other firm over the same group of customers.

This new project will give the company a hedge over its competitors.


According to Vernooy et al., 2003, project evaluation gives room for monitoring of projects in a systematic way which allows for collection of information required for the measurement of the project.

Monitoring and evaluation has basically some differences amongst which is the main one which has to do with the timing and frequency of observations and the types of questions the managers faced.


Every good and successful project require to be monitored by those who are placed in the arm of affairs of the organization and those saddled with the responsibility of monitoring projects executed in the organization.

This DELTOL is putting into consideration so as to ensure a balance project monitoring and evaluation.

Some major reasons for checking on the efficiency and effectiveness of the project include:

Efficiency talks about resources put into the project in the way to which the outputs and outcomes are fixed. Evaluation of projects enable us to find out if there was better and easy way of achieving the same goal.

Effectiveness refers to if the project was useful and helpful in getting to the project goals and objectives, or leads to positive and definite conclusion which is beneficial to the company.

Relevance explains the usefulness and flexibility of a project within the particular context of the owner e.g. DELTOL.

All these put together enable the management and the project supervisors to know if the cost expended on the project is worthwhile. Effectiveness, efficiency and appropriateness can be considered for the different methods, tools and approaches rather than questioning the value of the research approach as a whole.

DELTOL has outlined the following reason for monitoring the project:

Project monitoring helps to provide constructive suggestions which would improve the company.

Ability to reschedule the project at time the project is lagging behind.

Ensures adequacy of budget for the project.

Assigning the required staff to the job/project work as expected in the project projection/estimation.


Conclusively, DELTOL GROUP OF COMPANIES is a company with strategic measures to ensure it maintain a high performance in its activities. At the completion of the project, the building will serve as the international networking centre for the company which would bring about a high level of improvement for the company.

Project monitoring and control enhances the level of development and increases the chances of achieving a desired goal.

DELTOL GROUP OF COMPANIES would put in place the afore-mentioned control measures to ensure the project objectives are achieved.



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Mintberg H. The Structuring of Organizations, 1979, USA.

Vernooy et al., The theory of Management. 2003.


Wilson John P: Human Resource Development: Learning and training for individuals and Organizations.


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