Analysis of Business case “Affordable Housing for workers in the town of PORT HEDLAND”

Table of Contents

Table of Contents. 1

1.0         Introduction. 2

2.0         Analysis of Business Case of Affordable Homes. 3

2.1         Providing outlook on the project. 3

2.2         Analysis of the Project Scope and the Evaluation. 4

2.3         Implementation Strategy. 7

3.0         Conclusion and Recommendation. 7

4.0         References. 8

1.0      Introduction

Business case reflects the viability of the viability and the details that are critically important to evaluate a project for investment opportunities. When the business cases are written, there are various methods, practices and formats that are used based on the project needs and the inputs that the project developer would like to brief. However the fact is that, always there is significant difference in terms of providing the business case model in terms of academic lines and the actual business scenario.

In this business case analysis study report, the focus is upon the business case that has been developed as “Affordable Housing for workers in the town of PORT HEDLAND”. The fundamental objective of the business case is to provide an affordable home to the social services workers in the Pilbara community regions, and the business case projects details the need for such affordable homes, the solution that the promoters have developed, the kind of support that is required in terms of local governing support and how the private public model can ensure that the project is success. (Reiter, Kerry E. Kilpatrick, & Sandra B. Greene, 2006)

The business case provided for the affordable housing projects has been developed with many inputs that could provide an insight in to the project case and based on the given factors in the project case regarding the cost benefit analysis, the project milestones, risk benefit analysis, how the project could be viable to the investors and the implementation strategies that has been discussed in the project shall be analyzed in comparison to the academic quality of the business case and the critical analysis details has been provided in the further sections of this report.

2.0      Analysis of Business Case of Affordable Homes

The analysis of the business case of Affordable homes to the social services workers in the Pilbara community region has been taken up with critical analysis of the various sections of the report like the summary, introduction, the implementation strategies, recommendations and conclusions that has been detailed in the report in accordance with the inputs compared to the academic standards and the experts opinion of the factors that the business case should emphasize. In the following sections of this report the focus and the emphasis is upon how effectively the business case has been presented at various sections of the report and how the critical factors that are important for the project analysis has been presented or is missing in the report has been discussed in detail. (Akwalker, 2005)

2.1      Providing outlook on the project

The business case starts with its focus on the executive summary part, which provides an overview on the proposed project, its viability and how the project can be resourceful to the Pilbara community region social services workers who are offering their services in this region and how the proposed project could provide them the affordable housing keeping in view the kind of costs that are prevailing in the region.

The summary part of the project clearly emphasizes the fact that the proposed project could be an effective solution that could be having profitability to various stakeholders and indicates how the project risks lies with the consortium rather than any independent stakeholders of the project. However the fact of the concern is that when such an emphasis is given on the need for the project, and how the consortium can ensure to build a viable project models, and the identifying of land required and how the costs will be maintained, there are few more facts that are missing which could have provided some weightage for the study. (Akwalker, 2005)

 

In one of the articles written by Kristin L. Reiter and his co-authors, the emphasis and focus is upon how the organizations could be essentially focus on developing the framework of the business case. In the eleven key steps they have proposed for developing the business case, the first two key aspects are describing the intervention and determining the perspective. In the case presentation of Affordable housing, this key element of “Determining the Perspective” has been missing, which could have provided much more insight about the “need for the project “factor”.  In the overall executive summary outlook, though the project provides some kind of basic inputs on why the project is, still the need for the project could have been little more clear and concise, that could have given the investors the scope to evaluate the market opportunity. (Reiter, Kerry E. Kilpatrick, & Sandra B. Greene, 2006)

 

2.2      Analysis of the Project Scope and the Evaluation

In this section of the business case, the team discusses about how the development of the proposed project could develop the presence of the social service workers and how various associations and the social service provider organizations could be interested in having their presence in the location and improve the social services. These sections very well provide the artifacts of the business model of developing 400 beds for the social service workers. As discussed in the previous section, though the business case did not reflect much on the existing scenario, the future prospect factor has been discussed effectively in the project. As represented in the figure below, it is very essential to have specific inputs and KPI’s.

Figure 1 Scope and Evaluation System

The objectives of the project have been effectively detailed in the project business case, with significant inputs in terms of the key objectives that has been the basis for the proposed business case. The team reflects the fact that an affordable housing plan could ensure that the opportunities and the sustainability can be developed in the location, in terms of increasing the scope for improving services to regional communities. (Schmidt., 2014)

As discussed by author Kristin L. Reiter in his article, “considering the effects of capacity constraints” is also predominantly important to ensure that there is appropriate level of analysis is carried out to evaluate the options and how the proposed project could be an effective solution in terms of providing complete solution to the existing problem and how it can be resourceful to accommodate the future opportunities. This factor has been explained in detail in an effective manner, with clear focus on how the objective of the project could be a potent solution to the prevailing issues.  (Reiter, Kerry E. Kilpatrick, & Sandra B. Greene, 2006)

There are three key deliverables that has been discussed in the project based on the inputs from the case and according to the provided inputs; it is evident that the focus and the emphasis on the outcome of the project is very clear and precise for the team. The structure in which the project deliverables has been explained as has been providing effective inputs as to how and what basis the performance measures shall be evaluated, the impact measures as to how each of the three deliverables shall impact the project. (Akwalker, 2005)

This addresses the need on the insights of return on investments. For any business case the return on investments is one of the critical challenges, and the project provides clear scope on the effective outcome which depicts that the rental values in the existing projects could go down up to 10%, and how the increased beds could provide scope for more social service providers establishing their services in the region and the funds that could be saved by the organizations towards other initiatives rather than on facilitating the social workers accommodation issues. (Kilpatrick & et.al, 2005)

The inputs on revenue returns of the project has to be reviewed from the cost benefit analysis scenario, whereas the potential solution in terms of benefits of the project for various stakeholders are evident from the key deliverables that has been provided in the project report. (Reiter, Kerry E. Kilpatrick, & Sandra B. Greene, 2006)

Stakeholder analysis which is very critical component for any business case has been detailed in an emphatic manner, and that could provide a complete overview on the engagement levels of various stakeholders in the project. Unless these factors are depicted in the report, it could be contentious for the business case readers towards having a significant outlook on the project.

The assumptions that has been detailed constituted the factors of demand for the affordable housing, land availability, and the financial feasibility; however there are many other essential factors which the project has been missing. For instance, the kind of issues pertaining to the future infrastructure requirements, or the level of demand like will there be more need for low level workers or for the professionals like doctors and accountants etc., and also in the scenario of the local political conditions and what is expected from the government in the future trends. These are also certain key factors that could certainly impact the project business case and this has not been effectively focused in the project.

Economic and Financial analysis factors provided in the project is not being so effective and it has only provided the overview rather than giving an in detail projections in terms of how the project could be viable and successful for various stakeholders of the project. (Schmidt., 2014)

The summary of the options has been only a gist, and the business case only focus on the recommended model of investment which is PPP model and the timeframe lines of the project has been provided with milestones as the key emphasis.

It can be observed from the business case report that the emphasis is more upon how the development of the project could benefit with affordable housing prices, but what is the time frame of return for such huge investments from the model has not been effectively detailed in the project. It is very essential that the focus on the figures indicating the funds flow requirement and the returns that could be expected from the project. (Atkins & Jennifer Sampson, 2002)

However, the business case has not much of information pertaining to what is expected to be funded by the investor and the returns that could be expected. Though the benefits of the project have been explained in an affluent manner, it is also important that the outcomes in terms of financials are to be discussed. Also, the project risk analysis that has been discussed in the project is effective and has taken many factors in to consideration and the inputs pertaining to specific factors have been detailed effectively in the report. (Atkins & Jennifer Sampson, 2002)

2.3      Implementation Strategy

The implementation strategies that has been discussed in the project only emphasize on the broader spectrum of implementation factors like the phased approach of implementing the communication plan, phased implementation plans like asset procurement, governance however the key factors like the resource requirements, monitoring systems that shall be implemented for the project schedules and other such key factors that could defined the effectiveness of the implementation strategies has been lacking from the business case report. (Atkins & Jennifer Sampson, 2002). The systems has to be implemented at every level of the process implementation, and the below figure represents key functions where the business case implementation is more effective.

Figure 2 Functional Processes of Business Case

3.0      Conclusion and Recommendation

The proposed business case of developing affordable housing to the social service workers is an effective business model and from the business case report, it is evident that such a project has the need and if the PPP model as proposed is implemented could be a viable solution for the project. But the crux is that there are various other intrinsic factors which are very critical for decision making on the investments, which are missing in the structure and the inputs of the report. There are many factors like the risk analysis, the cost benefit analysis which has been discussed in generalist terms rather than providing a complete insight of the facts, which are very essential for the decision making. In purview of the analysis, it is recommended that if the business case report depicts the key things that could support decision making on investment, as the basic purpose of developing a business case is to facilitate the decision makers with right inputs for making investments. (Reiter, Kerry E. Kilpatrick, & Sandra B. Greene, 2006)

4.0      References

Akwalker. (2005). PREPARING A BUSINESS PLAN . MASSEY UNIVERSITY .

Atkins, C., & Jennifer Sampson. (2002). CRITICAL APPRAISAL GUIDELINES FOR SINGLE CASE STUDY RESEARCH. Gdańsk: ECIS.

JBL. (n.d.). Business Cases. Retrieved Dec 23, 2014, from JBL Limited: https://www.jbl.co.jp/en/case/kpi.html

Kilpatrick, K. E., & et.al. (2005). The insufficiency of evidence to establish the business case for quality. The International Society for Quality in Health Care, 347-355.

Reiter, K. L., Kerry E. Kilpatrick, & Sandra B. Greene. (2006). How to develop a business case for quality. The International Society for Quality in Health Care, 50-55.

Schmidt., M. (2014). Business Case and Business Case Analysis Explained . Solution Matrix Limited.

Silverstone. (2013). vision. focus. mindset. Retrieved Dec 23, 2014, from http://www.silverstoneceo.com.au/: http://www.silverstoneceo.com.au/special-offers.html

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