BUSINESS DECISION MAKING

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Contents
Task 1:.......................................................................................................................... 3
Introduction................................................................................................................ 3
Project member............................................................................................................ 3
Milestones.................................................................................................................. 3
Gantt chart.................................................................................................................. 4
Critical Path Analysis................................................................................................... 11
Communication plan................................................................................................... 11
Conclusion................................................................................................................ 12
Task 2......................................................................................................................... 12
Financial tool............................................................................................................. 12
Use of financial tool in this project.................................................................................. 13
Advantages and disadvantage of financial tools..................................................................14
References................................................................................................................... 15

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Task 1:
Introduction
OLC is a College that has its head office in Bolton in United Kingdom. The college is best
known for its educational services and scholarships provided to the students. It is also known for
its faculty members and professional experts that provide A grade educational services to the
community. The college has its largest campus in Manchester that attracts students from all
across the globe. This report is prepared to present the project plan of moving the head office of
OLC ltd. from Bolton to Manchester, where it has its largest campus and high demand for
educational services provided by the college.
Project member
The project team consists of the agency members, the real estate division of the organization and
the contractors responsible for developing the office and shifting office equipments (Fitzgerald,
2002). Mr. James Wilson being the head of the organization will by the in-charge for preparing
and executing the shifting plan. He will be assisted by his fellow members Jonathan Edward,
Stephen John, Ron Richard and other members of the project team. Each and every member of
the team will be responsible for their duty as per the plan.
Milestones
An activity plan has been prepared and presented in the table below for further reference. This
plan will help the team members to execute the project as per the decided plan. It will help the
organization to complete the project of replacement of head office within the limitation of time
and budget.
ID
1
A
B

Task Name
Office shifting Planning
Submition of request form
Identifion of Project Team
Understading of

C
D

Responsibility

Duration

Developmenet team

1 week

Agency

1 week

Agency

2 week

All

3 weeks

All

4 week

new office

space requirement
Identifion potential office sites

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Space and floor planning

Procurement

F
G
H

Real Estate Division

4 week

Real Estate Division

5 weeks

Real Estate Division

6 weeks

Development team

7 weeks

strategies

development
Building Assessment
Finalsing the project

Gantt chart
A Gantt chart has been presented below to explain the major limitation of the project in a
graphical format.

Main Activities

Week

Week

Week

Week

Week 5 Week
6

Office shifting Planning

Submition of request form

Identifion of Project Team

Understading of

new office

space requirement

Identifion potential office sites

Space and floor planning

Procurement
strategies
development
Finalsing the project

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Week
7

Critical path

START
0

C(7DAYS)
19

12

A(7days)
0

B(5 days)
7

E (6 days)

12

22

28

F (4 days)

G(7 days)

28

32

32

39

I(9days)
39

D (10DAYS)
12

22

A --> B --> C --> D --> E --> F --> G --> H --> I

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48

Communication plan
A communication plan is prepared for regular monitoring of the project. It is important for the
organization to keep a track of the progress of the project to complete it within the decided time.
It is also important to monitor the activities of the project to maintain the expenditures and
complete the task within the allocated budget. Along with that a financial analysis will be done to
known the benefits of the shifting of the head office of the organization (Kimmel, Weygandt and
Kieso, 2007). The communication plan is presented in the figure below:

Figure: Communication Plan

Conclusion
It is important for the organization to develop a project team that will proceed with the task of
shifting the head office of OLC Ltd. from Bolton to Manchester. As the college has more number
of students in Manchester and has its largest campus in this location. It is important for the
organization to have its office in this city. This will help the organization to proceed with its daily
operations and will sort out a huge number of problems for the organization (Piccirillo and Noro,
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2008). As the plan has been presented to carry on the task of shifting the office, it is the duty of
the project manager and the head of the organization to complete the task of shifting by the end
of December, so that the new office can be stated on the first day of 2016.

Task 2
Financial tool
In order to shift the headquarters of OLC (Europe) Ltd a number of financial tools can be useful
to cost the particular project. Financial tools such as balance sheet, income statement, sources of
fund related statement and cash flow statement can be primarily used to figure out the cost of this
very project. Also the budget of the shifting process can be vital to find out the cost of relocating
the head office of OLC Ltd. Other than this the partial budget and financial ratio analysis can be
used to do the costing of the project.
Use of financial tool in this project
Budgeting of the shifting of head office is the most essential thing to do. Apart from that the cost
budget can certainly depend on balance sheet, income statement, funds statement and cash flow
record. Balance sheet of a corporation can be termed as one of the most important financial tools
as it reflects the critical information of the business like assets and liabilities of the corporation
(Helfert and Helfert, 2001). It also represents the investments and the outcome of the business.
The cost of new building, plan making, hiring of employees, and essential equipments for the
head office can be counted to make the costing of relocating. For an example the liabilities of the
corporation have to be critically analyzed for the total procedure. Simultaneously payable
accounts can be an important factor to be taken under consideration. Basically financial
statement is the most important financial tool that can be used in a critical way to make the cost
of relocating the business headquarters. Through this financial tool the total allotting capital for
the shifting of headquarters has to be fixed carefully. Secondly the income statement of the
education based corporation can be used as a significant financial tool as it can dictate how much
capital is available in the shifting process. Clinically income statement has got a very general
rule to identify the expenses and the income.
In the next category of financial tools the sources of funds statement can be proved to be as vital
as anything else (Kimmel, Weygandt and Kieso, 2011). This very statement will provide the
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historical cash flow to the business. Through this statement the amount of funds coming in and
going out can be recorded practically. It narrates how much money has been invested and given
out from the business. Finally the cash flow statement can be considered to put up the cost
budget of relocating process of corporations headquarters (Vance, 2003). Cash flow statement is
the record of investments and expenses to calculate the profit or loss of the business. It is a part
of financial reporting to say the least. In case of making the cost budget of shifting the base it is
important to consider the values of assets and liabilities that will be added in future. After
considering everything the costing has to be presented that should include every needed aspect
required to complete the target within a fixed time.
Advantages and disadvantage of financial tools
By using the financial tools in decision making in any situation of a business can be very handy
though there are both advantages and disadvantages associated with it. By analyze the financial
statements as mentioned above section can be vital for making futuristic plans such as relocating
the headquarters and making further progress in the market keeping a distance ahead from the
other market competitors (Chen, 2008). In case of advantages financial statement can present the
sales pattern and it makes easy for the market planners to plan steps to be followed for the bigger
picture. For instance by shifting the headquarters it can increase the sales of its education based
business in an exceptional way. It can explore new market for the business to be expanded.
Probably the best advantage of using financial statement is budget outline. Budget outline can
certainly help to make new futuristic planning for the business to achieve new heights in the
competitive market. The budget outline can certainly clarify how much cash can be left for
executing new plans. In case of shifting the base it also helps significantly. Decision making can
get easy by following this specific financial tool.
In order to find the disadvantages financial statement cannot efficient in decision making when it
comes to market pattern. As the data and information keep changing everyday therefore the
statement has to be depended on the market. The business executives have to be very careful by
not assuming any substantial figure as market can play many tricks to control the financial
statements. Conclusively it can be stated that the financial tools can be used typically to complete
the task on time.

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References
Chen, G. (2008). Budget tools. Washington, D.C.: CQ Press.
Helfert, E. and Helfert, E. (2001). Financial analysis. New York: McGraw-Hill.
Kimmel, P., Weygandt, J. and Kieso, D. (2011). Accounting. Hoboken, N.J.: Wiley.
Vance, D. (2003). Financial analysis & decision making. New York: McGraw-Hill.
Fitzgerald, S. (2002). Decision making. Oxford, U.K.: Capstone Pub.
Kimmel, P., Weygandt, J. and Kieso, D. (2007). Financial accounting. Hoboken, NJ: John Wiley.
Kourdi, J. (2003). Business strategy. London: Profile.
Mina, E. (2002). The business meetings sourcebook. New York: American Management
Association.
Piccirillo, E. and Noro, M. (2008). Guidebook for supporting decision making under
uncertainties. Hackensack, NJ: World Scientific.
Weygandt, J., Kieso, D. and Kimmel, P. (2002). Managerial accounting. New York: Wiley.

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