Running head: WORKRITE LOCK-IN PROJECT 1

Workrite Lock-in Project

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WORKRITE LOCK-IN PROJECT 2

Workrite Lock-in Project

Question 1

From an interview with the managing director of Workrite components, Robin

Nightingale, the following information was gained. The Workrite firm provides electronic

components to any client wanting to purchase their item. The manufacturers of new electronic

components or the specialist refurbishers that fix ‘refurbish’ malfunctioning (broken) electronics

are the suppliers of Workrite components. The refurbishers fix broken electronics for second

chance sale to operate like other new electronic devices. The stakeholder quadrant has four

groups: users, providers, influencers, and governance (Bourke, n.d.). The four groups of the

stakeholder quadrant uniquely influence a firm’s sales activities.

The stakeholders can be analyzed using the stakeholder quadrant using a graph split into

four parts. The project’s stakeholders are analysed against a aparticular criteria and plotted on the

graph. The plotted graph is used to make decisions on the quadrant that a certain stakeholder is

categorized into. Stakeholders is commonly plotted on y-axis power and x-axis power as

illustrated below.

Users’ needs are Influencers are

Influence/
met the key players

Power of
Governance
shows
stakeholders consideration

Interest of stakeholders
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One of the best-known electronic suppliers of electronic components in the U.K. is the

Workrite firm. The firm has built its reputation, such as immediate delivery time. However,

many customers complain they cannot access the goods they want in time even when the stock

ordered is needed urgently. As a result, the firm has lost most of its sales because of not meeting

the client’s urgent delivery times. Most of the Workrite customers have begun to bypass the

firm's sales when needing refurbished purchases. Thus, the staff of sales is rapidly missing out on

the opportunity to negotiate their affordable price with interested clients. The companies’

providers are the staff of sales. The role of the sales staff is to negotiate with the potential clients

concerning the price of affordable electronic products. To maximize the staff of sales chance to

actively participate in the project, Workrite will offer motivational awards or tokens to the

suppliers when certain sales goals are reached. In addition, the sales of staff salaries will be

increased by a significant amount.

Users whose needs are met are the last stakeholder in the Lock-in project, and they play

the role of purchasing the supplied electronic product from the Workrite components. The Lock-

in project involves promoting sales of the Workrite components, and customers play a great role

in influencing the sales rate. To maximize the customers’ chance to actively participate in the

project, Workrite can fix its bad reputation of late product delivery and ensure that customers

receive their electronic goods ordered on time. Also, Workrite can attract more customers

through promotions such as adding gifts and free delivery to any electronic product purchased.

Robin has begun to gain concern the staff of sales is becoming disillusioned due to the

progress of purchases decrease in the firm, and this has even made some of the sales staff to

voluntarily quit employment. Robin has taken the step of finding a radical solution that has been
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suggested by several inquiries and research reports it might be successful. The chosen radical

option is referred to as "Lock-in" the strategy involves major refurbishment companies signing to

sell their products only to Workrite components. On the other hand, the strategy involves

Workrite guarantees signing that they will not take orders from other suppliers to purchase the

components that can be supplied by the "Lock-in" companies.

The firms’ influencers are the refurbishers who are key players in the company through

the "Lock-in" project. In the Lock-in project, the refurbishment companies sell their refurbished

electronics to only Workrite firms in the U.K. In return, the company is not purchasing electronic

products from other companies, especially those supplied by the Lock-in companies. To

maximize the refurbishers' chance of actively participating in the project, the company will

adhere to not purchasing products from other electronics suppliers. In addition, the company will

promote most of the suppliers’ products through advertisement and marketing strategies. Such

product promotion strategies will attract any customers to purchase the products supplied to

Workrite, increasing the supplier’s profitability in return.

A good understanding of every stakeholder group can be enhanced when the business

owners adopt fanatical and fastidious dedication to knowing them (Stakeholder matrix, 2014).

Knowing stakeholders’ groups involves business owners investing in improving greater

relationships on a winning strategy that grants the best leverage to both parties. In Workrite

components, governance of showing product consideration is part of the project’s

stakeholders’ power; this includes electronic manufacturers or the refurbishers. Electronic

manufacturers repair malfunctioning or broken electronic components so that they can be re-sold

in the market just like other new electronic products.

Question 2
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Some of the risks associated with the Lock-in project include:

a. Technology risk

The aspect of technology in the project is a complex deliverable as the globe is currently

experiencing a high turnover of invented technologies that are new and advanced (Indeed

Editorial Team, 2021). For example, there might arise other refurbishment companies that might

offer more advanced electronic products in the market. Customers might shift their desire to

purchase Workrite products to those of advanced companies. Workrite components must

negotiate with their product suppliers to ensure the products delivered are advanced and updated

to the state of market technology.

b. Communication risk

When in charge of a project, timely and effective communication is an essential ethic at

work practices, and the firm management must strictly observe it. Workrite has two business

analysts, the Operations Director and the Project Manager; it might be difficult for the two to

effectively deal with potential Lock-in suppliers adding up to 34. The two analysts can set

meetings to help keep track of changes in the project and promote a w cohesive team

environment.

c. Scope risk

Scope risk involves unauthorized or uncontrolled change occurring to the first objected

project scope. This may bring about additional features, functions, and products needed. The two

analysts can effectively manage the project scope and requirements to ensure scope every scope

decision is guided appropriately.

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d. Cost risk

If there occurs a shortage of project mismanagement, for example, by purchasing

products from other electronic suppliers other than the intended ones, the budget object might

inflate. The two analysts must ensure that project costs are not higher or lower than the budgeted

funds as it might lead to scope risk.

e. Operational risk

Operational risk occurs when critical operations procurement and production are poorly

implemented. The two analysts might find it hard to tackle the procurement operations of the 34

potential lock-in suppliers. However, the analysts can technically arrange how to effectively

implement their critical procurement operations with one agreement.

f. Skill resource risk

Skill resource risk involves the management leveraging on the internal staff as some of

the project activities can be staggered in varying waves at different locations, and the solution

can be an attendance of the in-house personnel. If the staff of sales in the Lock-in project fails to

understand how to negotiate the affordability of products supplied to the potential clients, the

Workrite company will face the skill resource risk. Therefore, the company must provide a

higher staff of sales that are competent in negotiating the products affordability to different

clients.

g. Market risk

Market risk involves the project failure of meeting the objected results. If the Workrite

company continues to deliver its products on time to customers, other electronic companies
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might take advantage at a competitive rate. The Workrite company must adhere to their objected

product services of on-time delivery to ensure that competitive advantage does not cripple the

project objectives in the market industry.

Question 3

The Lock-in project is short by five months as it needs to be a five-month project than the

allocated ten months. To rectify the situation, the project manager and the operations director

must first discuss the extension of the project and its significance. The idea of project extension

can be shared with other stakeholders mainly, the staff of sales and the refurbishers. The project

extension should happen immediately upon agreement to ensure the ahead project goals are

arranged and to signal other project stakeholders how they will behave in the continued project.

The new guidance in continuation of the project should be familiarized to all project

stakeholders, and a reasonable amount of time should be provided to enhance effective

adjustment to change.

Question 4

Robin estimates that upon the project completion of implementing the new Lock-in

system, there will be an increase in the annual sales of £120000 per annum. This can be

illustrated in the following cost-benefit analysis that includes producing figures for payback and

return on investment.

Cost benefit analysis

Particulars Total

Increase in Revenue £250000

Increase in additional revenue £120000

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Total benefits (A+B) £370000

Costs

Employees’ salary £160000

Hiring cost £15000

Cost of additional hardware £25000

Total costs (D+E+F) £200000

Within one year timeframe, it is expected that Workrite will hire an additional staff of

sales in the expansion of supplies made from the refurbishers. It is estimated that the company’s

revenue will increase by 50%; that is, the benefit from the revenue will be £250000. In addition,

due to the hiring of the new staff of sales, the value of the Workrite components will increase,

which will lead to an increase in the annual sales of £120000 per annum. The new employee’s

salary is objected to being £160000, and the additional hiring cost is objected to being £15000.

The cost of additional hardware required objects to be £25000.

Cost-benefit analysis

Total project benefit=revenue increase from the project.

Total project benefit= £250,000+£120000= £370000

Total cost of the project= employees' salary+ hiring cost + cost of additional hardware

Total cost of the project= £160000+ £15000+£25000

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Total cost of the project= £200000

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References

Asana. (2021). 7 Common Project Risks and How to Prevent Them • Asana. Retrieved from

Asana website: https://asana.com/resources/project-risks

Bourke, D. (n.d.). The Stakeholder Quadrant | Competitive Advantage | Competitiveness |

Competitive Advantages | The International Institute Of Directors And Managers | IIDM

- IIDM Global. Retrieved February 5, 2022, from www.iidmglobal.com website:

https://www.iidmglobal.com/expert_talk/expert-talk-categories/business-basics/

competitive_advantage/id93991-the-stakeholder-quadrant.html

Grant, H. (2013, August 19). Here’s What Really Happens When You Extend a Deadline.

Retrieved February 5, 2022, from Harvard Business Review website:

https://hbr.org/2013/08/heres-what-really-happens-when

Indeed Editorial Team. (2021, April 1). 10 Common Project Risks (Plus How To Analyze and

Solve Them). Retrieved from Indeed Career Guide website:

https://www.indeed.com/career-advice/career-development/project-risks

Stakeholder matrix - key matrices for stakeholder analysis. (2014, September 12). Stakeholder

matrix - key matrices for stakeholder analysis. Retrieved from Stakeholdermap.com

website: https://www.stakeholdermap.com/stakeholder-matrix.html