Aim of Assignment:
To understand and apply the processes of cost estimating and cash flow
Details
You are a project manager with an events organisation company who is considering running a 2 day music festival. The project objectives are to provide the community with a music festival featuring international and local bands and DJ’s - and for your organisation to make a minimum 25 % profit.
The project sponsor for this project is Charlie Reynolds the Director of Entertainment Events. In your first meeting with Charlie he discussed the scope of the project and asked you to submit a business case in a report format which provides an estimate, budget and cash flow and any conclusion
ecommendations for the proposed music festival.
The following minimum scope statement was provided:
1. 2-day music festival in Australia to be held in late 2018
1. four high-profile international bands - two per day
1. the rest of the programme to be filled with local and Australian bands
1. target market is XXXXXXXXXXyear olds
1. the event will be licensed
1. camp sites, food catering and hygiene facilities are to be provided for festival attendees
1. all other necessary requirements are to be included and costed
1. expected attendance of 5000 – 6000 over the two days
Your submission must contain the following sections:
1. executive summary including any conclusions and recommendations
1. a detailed list of the contents of the estimate and the respective costs. All sources of cost information must be provided through embedded screen shots. No intense research is required in a
iving at the dollar amounts – sources must not be contacted directly ie no phone calls enquiring about costs etc. Reasonable costs through web page information will suffice and should be easy to obtain given that this is not a unique project. A clear and full explanation of the scope of each item (ie quantity, type, etc) must be provided (including any necessary calculations required to a
ive at the cost) and a cost per ticket.
1. a detailed budget from the 1st March 2018 until final project completion, showing the estimated costs allocated across each of the months in the project life cycle. The budget must be set out in the form of a spreadsheet
1. a detailed cash flow indicating all costs and revenues from 1st March 2018 to the end of the project including working capital requirements based on market related ticket prices and sales
1. Conclusion and recommendations (note your assignment may prove that the music festival is not feasible – Marks will not be deducted as long as there is evidence to support your recommendation)
Your submission should be in a business case format that will help Charlie decide whether the company should proceed with the music concert and marks will also be awarded for the business case feel and structure of your submission.