Work rite Lock-in Project

Form an interview with the managing director of Workrite components, Robin Nightingale, following
information was gained. The Workrite firm provide electronic components to any client with the desire
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 as they can operate like other new electronic
devices. One of the best-known electronic suppliers of electronic components in the UK is the Workrite
firm. The firm has built its reputation such as: immediate delivery time. However, many of customers
complain they are unable to 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 being able to meet client’s urgent
delivery times. Most of the Workrite customers have begun to bypass the firm’s sales when in need of
making refurbished purchases. Thus, the staff of sales are rapidly missing out the opportunity to
negotiate their affordable price with interested clients. Robin has begun to gain concern the staff of
sales are 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 have been suggested by several enquiries 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 makes orders form
other suppliers to purchase the components that can be supplied by the “Lock-in” companies.
Nevertheless, this deal’s supplier interest only emerges due to total commitment to key automate
processes that are repetitive between the Workrite components and the supplier, that is, payment and
component ordering. The Workrite components calculates that the Lock-in strategy will enable it save
up to £50000.

The stakeholder quadrant has four groups: customers, employees, shareholders, and suppliers (Bourke,
n.d.). The four groups of the stakeholder quadrant uniquely influence a firm’s sales activities. A good
understanding of every stakeholder group can be enhanced when the business owners adopt fanatical
and fastidious dedication of knowing them (Stakeholder matrix, 2014). Knowing stakeholders’ groups
clearly involves business owners investing in improving greater relationships together on a win strategy
that grants the best leverage to both parties. In Workrite components, the suppliers are its
stakeholders’, this includes: electronic manufacturers or the refurbishers. The electronic manufacturers
are the those that repair malfunctioning or broken electronic components so that they can be re-sold in
the market just like other new electronic products.

The firms’ shareholders are the refurbishers and the company through the “Lock-in” project. In the
Lock-in project, the refurbishment companies are selling their refurbished electronics to only Workrite
firm in the U.K. In return, the company are not purchasing electronic products form other companies
especially those that cab be supplied by the Lock-in companies. To maximize the refurbishers’ chance of
actively participating in the project, the company will ensure it adheres to not purchasing products form
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 and this will increase the supplier’s
profitability in return. The companies’ employees’ the staff of sales. The role of the staff of sales 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 at a significant amount.

customers 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 company 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 promotion such as, adding free gifts and free
delivery to any electronic product purchased.

Some of the risk associated with the Lock-in project include: technology risk. The aspect of technology in
the a 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 of purchasing 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 state of market technology. Communication risk is the other project risk.
When one is in charge of a project, timely and effective communication is essential ethic at work
practices and the firm management must strictly observe it. Workrite has two business analysts that is,
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. Scope risk is an additional risk in the project and this involves unauthorized
or uncontrolled change occurring to the first objected project scope. This may bring about additional
costs of features, functions, and products needed. The two analysists can effectively manage the project
scope and requirements to ensure scope every scope decision is guided appropriately. Moreover, cost
risk might be another project risk. If there occurs a shortage of project mismanagement for example by
purchasing products from other electronic suppliers other that 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 the occurrence of scope risk. Operational risk is another potential risk and this
occurs when a 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 implement their critical procurement operations
effectively with one agreement.

The other risk is the skill resource risk and this 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 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 with the potential clients, the
Workrite company will face the skill resource risk. Therefore, the company must higher staff of sales that
are competent in negotiating the products affordability to different clients. Market risk is the other
project risk and it involves the project failure of meeting the objected results. If the Workrite company
continues to deliver their products on time to customers, other electronic companies 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.

The Lock-in project is short by five months as it needs to be a five-month project than the allocated 10
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 to 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’ of 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.

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 and for payback and return on investment. Within one
year timeframe, it is expected that Workrite will hire additional staff of sales in the expansion of supplies
made form 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 hiring, of new staff of sales, the value of
the Workrite components will increase which will lead to an increase in in the annual sales of £120000
per annum. The new employee’s salary is objected to be £160000 and the additional hiring cost is
objected to be £15000. The cost of additional hardware required is object 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

Total cost of the project= £200000

References

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

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

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 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.

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

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

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