Project Management On Sports Club

Project Report
Being Young- The Sports Club
(11th September, 2010)
In partial fulfillment of the requirement of the course
“Project Management”
MBA Full Time (2009-2011)
Submitted to:
Prof. H.K.Shrivastava
Submitted by:
Dipesh Jain
091312
Index
1.
Introduction.......................................................................................................
........................
1.1. Industry Analysis-Porter’s Five Forces

Model.............................................................
1.2. Company Analysis- Swot

Analysis.................................................................................
1.3. Services
Offered............................................................................................................
1.4. Project
Scope...............................................................................................................
2. Project layout and Resource

Requirement.................................................................................
2.1. Project
Layout..............................................................................................................
2.2. Resources
Required....................................................................................................
3. Initial
Investment.........................................................................................................
.............
4. Sources of Revenue and Expenses for regular

years................................................................
4.1. Membership
Packages................................................................................................
2
5. Financial
Data...................................................................................................................
..........
5.1. Membership
revenue..................................................................................................
5.2. Salary Expense

estimates............................................................................................
5.3. Calculation of Loan

Instalments..................................................................................
5.4. Estimated Cash

Flow...................................................................................................
6. Project
Control...............................................................................................................
...........
7.
Bibligraphy........................................................................................................
........................
3
1. Introduction:
This project is about opening a new sports club in Surat city at Udhna
Magdalla Road. The idea of this project came to the mind because there is
lack of availability of a sports club at that region which can provide citizens
with different games like squash, lawn tennis and basketball. There has been
a change in the citizen of Surat in respect of the games they play. They have
started playing games which were uncommon earlier like basketball, lawn
tennis and squash. Thus the main intention of this sports club is to provide
citizens with different games and increase talent in those games, which a
nation like India lacks.
The name selected of the club i.e. Being Young is because here even the
elder people can come, play and feel young. Thus the name shows the
importance of being young as when you are young you are energized and
wound up.
1.1. Porter’s five forces Model for Sports Club Industry:
Below are the five forces that act in favour or against of the industry:
i) Competitive Rivalry within Industry: There are many sports club in

India who provides services like this but in whole Surat there are
just two players. These players have well established customer base
but are unable to attract customers staying at far areas. Thus there
is a good chance of getting new customers by opening sports club
at an area where these clubs are not able to spread their reach.
Fixed costs in this industry are high but variable costs are low.
Buyers switching costs is high in this industry. Exit barriers are high
as initial investment is high.
4
ii) Threat of new entrants: As entry barriers are high in this due to high
capital expenditure entry barrier is there and hence threat of new
entrants is less. This industry is growing at constant pace and hence
there is chance of attracting new entrants which can increase
threats.
iii) Bargaining power of supplier: There are many suppliers who can
provide equipments needed at different costs and hence this factor
reduces supplier’s bargaining power towards the sports club. There
is threat that supplier may forward integrate as he has equipments
to start and thus this increases its bargaining power as there are
less chances of buyer integrating backward. Suppliers main selling
is this industry and thus it is an important industry for them and
they can’t easily let go this industry and thus here suppliers
bargaining power decreases.
iv) Bargaining power of customers: In this industry customers are

more than service providers and hence bargaining power of
customers is less as they have limited choice where as service
providers have many choices. Differentiation in terms of sports
provided is not much though there are some variations and hence
there can be increase in bargaining power of service providers if
they will differentiate their offerings than others else customer
bargaining power will be high. Switching costs and importance of
service is high to the buyer and thus this reduces its bargaining
power.
5
v) Threat of substitute product: There is a high threat of substitute
product which in this case will be the establishing services in the
societies itself so that the member of the societies doesn’t need to
go out to play sports. This has been done by many new builders
providing services such as indoor sports, swimming pool and
gymnasium in their societies. Thus there is considerable threat from
substitute product.
Hence above are the five forces that determine the competitive intensity and
therefore attractiveness of a market.
1.2. Company Analysis: SWOT
Below is SWOT analysis of Being Young- the sports club:
i) Strengths: Providing customers with different types of sports is

strength as that will attract customers towards this sports club.
Another important strength is the location as there is huge potential
customer base that will be ready to pay premium prices for the
services and will be willing to join.
ii) Weakness: As it is new, brand name is not strong and thus it creates a
weakness. Skilled workers will be hard to find in the starting phase.
6
iii) Opportunities: There is opportunity to convert untapped market into
customers by providing services to those people who are interested
in uncommon sports activity. There is also an opportunity to
increase market share.
iv) Threats: Emergence of substitute’s product such as providing facilities

in the societies is a bug threat to Being Young sports club.
1.3. Services offered
Sports club will have services as below:
i) Lawn tennis court
ii) Basketball court
iii) Table tennis and board games such as carom and chess
iv) Squash
v) Badminton
vi) Juice and snack bar
vii) Tournament twice in a year which will include every sport provided
by sports club.
viii) Trained coaches for games will be provided.
Hence above activities will be provided by the sports club. With the above
activities members of sports club will get chance to spread the social
7
network by interacting with one another. There will be special member
services and different packages will be allowed to customers based on their
need of playing games. This will give customers variety in selection.
1.4. Project Scope
Below is the scope checklist for the project:
i) Project objective: Main objective of the project is to start a sports

club in Surat city which will provide customers with uncommon as
well as some of the common indoor sports such as basketball,
squash and lawn tennis within 1.5 year at a cost not exceeding Rs.
10 million.
ii) Deliverables: Here major deliverables will be defined which are as

follows:
 Project layout
o Deliverable Priorities:
 Constrain: Here the fix parameter will be that project

layout must be in the scope and should not go
beyond it.
 Enhance: Here costs should be optimized so as to

keep the project within available budget.
 Accept: Time delay of few days will be accepted but

project layout should be precise. Though delay in
time will increase cost and will be hard to enhance
cost care will be taken to allocate costs properly.
8
 Permissions and Approval from Local Authority
 Constrain: Here the fix parameter will be time as

getting approval and permissions on time is
important in order to complete full project on time.
 Enhance: Here too costs will be tried to enhance

which means optimum costs will be tried to incur in
order to get approvals and permissions.
 Scope: It will be accepted if approval and permissions

will be bit of scope i.e. if less square feet will be
approved to start than it can be managed by building
multi-storey building.
 Selection of Location
 Constrain: Here cost parameter will be fixed i.e. the

location must meet the budget.
 Enhance: Here time will be tried to optimize so that

project doesn’t get delay and even cost remains in
control as it is generally accepted that increase in
time increases the cost.
 Accept: here it will be accepted if location goes a bit

out of scope that is getting a lesser space than
planned as that can be compensated with building
multi-storey building
 Construction of Sports Building
9
 Constrain: Building should be completed within the

time specified as it is important to provide services
within the time given.
 Enhance: Costs will be tried to optimize so that

project can be completed within budget.
 Accept: A little here and there in scope will be

accepted though scope is an important
consideration.
 Procurement of Equipment
 Constrain: Procurement should be done on time.
 Enhance: Cost will be tried to optimize by getting into

most beneficial contract
 Accept: Scope will be accepted as in getting a bit

higher or lower quality equipment will serve the
purpose.
 Designing of Membership Packages
 Constrain: Here the packages should meet the scope.
 Enhance: Time will be tried to optimize in order to

market the services early
 Accept: Variance in cost will be accepted as it won’t

be much in designing.
10
iii) Limits and exclusions: In this project limit in scope will be related to
services that will be offered and membership packages that will be
available. Members will have to bring their own equipments such as
racquets, accessories, etc. Club will provide them with balls and all
other facilities. Eating or drinking at juice bar will cost them and it
won’t be included in Membership fee. Maintenance of Club’s
equipment will be done every month in order to ensure proper
working of equipments.
iv) Reviews with customer: In this section reviews with customer will be
done. Here customer means both internal (employees) and external
(members). Reviews will be done in order to know what their
expectations from the club are and are they getting what they
desire. Are the time, cost and scope in project layout achievable?
Thus clear communication in all these matters will be done as they
are important to avoid claims and misunderstandings.
2. Project Layout and Resources Required
2.1. Project layout
Project layout i.e. physical layout of the club is as follows:
11
The project layout above comprises of space for all the sports activities club
is providing. Hence total square feet space that project will need for the
above layout is approximate 25000 square feet which will be taken on lease.
In this layout there is also a juice and snack bar which will be helpful for
refreshments during playing and will also help club as a source of revenue.
12
Layout has been designed so as to use the space optimally. This building will
be constructed within 1.5 years with all keeping in mind necessities for
different sports such as their flooring, height, etc. Approximate cost of
constructing the building is Rs.3 million.
2.2. Resources Required
Below are the descriptions about the resources that will be required in order
to start the sports club. Resources are divided according to equipments
needed for different sports and man-power needed for different activities.
Equipments:
i) Lawn Tennis: Resources required for lawn tennis are:
a. Tennis net
b. Balls- approximately 150 per year
c. Tennis Posts
d. Umpires chair
e. Tennis posts ground sockets
f. Court flooring will be hard court whose requirement will be dealt

during construction and its cost will be included in construction
costs.
g. 2 long benches to sit for players during break
ii) Basketball: Resources required for basketball are:
a. 5 balls per year
b. Basketball board
13
c. Basketball net
d. Basket ring
e. Court will be cemented and its construction cost will be included

in construction of building costs.
f. 4 long benches to sit for teams during rest period
iii) Badminton: Resources required for badminton are:
a. Shuttlecocks- approximately 400 pieces per year for 1 court so

total 800 pieces
b. 2 Badminton set (includes net and posts)
c. Flouring will be Anchored Cushioned which will be taken care by

construction team and its costs will be included in construction
costs.
iv) Table tennis: Resources required for table tennis are:
a. 2 Table-tennis table which will be Stag Centre Fold Table-Tennis

Table
b. Balls-300 balls
c. 2 Net of Decathlon company
d. Flooring will be of concrete surface that is covered with a

professional Taraflex mat and its cost will be included in
construction costs
v) Carrom: Resources required for Carrom are:
a. 4 Carrom Board of Synco Kidmaster
b. 16 piece of Striker of Synco Signature
14
c. 16 chairs and 4 tables to play on 4 boards at a time
vi) Chess: Resources required for Chess are:
a. 4 Full set (Board and Pieces) of Staunton
b. 8 chairs and 4 tables to sit and play on 4 boards at a time
vii) Squash: Resources required for squash are:
a. 10 Balls of decathlon having 2 years warranty
b. 2 small benches to sit for players during rest period
Resources other than sports i.e. Personnel:
i) 1 instructor each for basketball and lawn tennis and 2 common

instructor for all other indoor sports.
ii) 1 person to work for juice and snack bar
iii) 1 accountant and 1 clerk
iv) 1 manager and 1 maintenance person
v) 5 workers for cleanliness
15
3. Initial Investment
Units Cost per Total

Particulars Required Unit cost
Building 1 3000000 3000000
Sports Equipments:
Tennis:
Net 1 6000 6000
Posts 1 15600 15600
Umpires Chair 1 39600 39600
Posts Ground Sockets 1 3520 3520
Basketball:
Board 1 19800 19800
Net 1 117 117
Ring 1 1900 1900
Badminton:
badminton set 2 2500 5000
Table tennis:
Centre fold Table-Tennis Table 2 14500 29000
Net 2 800 1600
Carrom:
Board 4 1530 6120
Striker 16 250 4000
Chess:
Full set 4 1000 4000
Other Resources:
Tables-for chess and table 8 2000 16000
Chairs 32 300 9600
Small Benches 2 800 1600
Long Benches 6 1500 9000
Total 3172457
16
Above written are the capital expenditures that are incurred in the initial
year. As there is no income in initial year there hasn’t been any mention
above. The above expenses will be funded in 1:1 ratio of debt and equity.
That is half the money will be funded by myself and rest will be taken from
market.
17
4. Sources of Revenue and Expenses for regular years
Below are the sources of revenue for the Being Young sports club:
i) Membership fee
ii) Revenue from juice and snack bar
iii) Income from participation fee for the tournament that will be held
twice in a year
Below are the sources of expense for the Being Young Sports club:
i) Salary of Personnel
ii) Electricity
iii) Maintenance
iv) Lease for leasehold land
v) Advertisement expenses
vi) Materials
vii) Office expenses
viii) Loan instalment and interest on loan
Hence above are the sources from which revenue will be earned and
expense will be done every year. There might be some unseen expenses and
revenue in the business later which will be needed to added in the cash flow
statements.
4.1. Membership packages
Below are the membership packages that will be offered to the customers:
18
i) Diamond Package
a. Activities include- All sports facilities and free participation in all

the events done by Being Young Sports club.
b. Membership fee- Rs. 1,00,000.
c. Benefits- No time constrain i.e. can come anytime they want.

Special offers will be granted to them from time to time.
Membership card can be used by family members too limiting to
5 members whose name must be registered in advance. Thus 5
people can take benefit of a single membership, in short this is a
kind of family membership
ii) Gold package
a. Activities include- Selection of any 3 sports they would like to

play and free participation for that sports in the events organized
by Being Young Sports Club.
b. Membership fee- Rs. 12000 yearly
c. Benefits- This is a good package for those who want themselves

to limit to just some games they like and also it’s very cost
effective. They too have time freedom but only an individual can
use it and not family. This package can be converted into
quarterly and half yearly package with Rs. 4000 and Rs. 7000
respectively for the package.
iii)Silver Package
a. Activities include- Can play only one game and will have time
restriction. Extra fee will be taken for participating in games
other you have opted for.
b. Membership fee- Rs. 6000 yearly
19
c. Benefits- A very cost effective package for those who have
financial problems and likes to play only one game. This package
can be converted into quarterly and half yearly package with Rs.
2000 and Rs. 3500 respectively for the package.
Assumptions regarding yearly revenue from Membership fee:
Total Members in first year from starting will be:
i) Diamond Package-50 members
ii) Golden Package-120 members
a. 70-yearly
b. 30-half yearly
c. 20-quarterly package
iii) Silver Package-50 members
a. 25-yearly
b. 10-half yearly
c. 15-quarterly package
Assumptions regarding revenue from Events:
i) In the first year there will be 400 entries at each event that will
pay participation fee.
ii) Participation fee is Rs.500 per person.
20
5. Financial data:
5.1. Membership Revenue is as follows Details for 1st 5 years:
Year 1
Package Memb Packag Incom

ers e fee e
Diamond Package 50 100000 50000
00
Golden Package- 70 12000 84000
yearly 0
Half yearly 0
Quarterly
Silver Package- 25 6000 15000
Yearly 0
Silver Package-half 10 3500 35000
Yearly
Quarterly
Total 220 63450
00
Year 2

rs e fee e
00
yearly 00
Half yearly 0
21
Quarterly
Yearly 0
Yearly
Quarterly
Total 310 70250
00
Year 3

rs e fee e
00
yearly 00
Half yearly 0
Quarterly 0
Yearly 0
Yearly
Quarterly
Total 320 69900
00
year 4
22
rs e fee e
00
yearly 00
Half yearly 0
Quarterly 0
Yearly 0
Yearly
Quarterly
Total 310 68900
00
year 5

rs e fee e
00
yearly 00
Half yearly 0
Quarterly 0
Yearly 0
Yearly
23
Quarterly
Total 325 65500
00
5.2. Salary Expense estimates are as below for 1st 3 years:
Year 1
Job perso Montly Total
ns Salary /prsn Yrly
salry
Instructors 4 10000 480000
Juice & 1 3000 36000
Snack bar
Accountant 1 15000 180000
Clerk 1 8000 96000
manager 1 25000 300000
maintenanc 1 15000 180000
e
Cleanliness 5 2000 120000
Total 1392000
Year 2
salry
Juice & 2 3500 84000
Snack bar
Clerk 1 8500 102000
manager 1 28000 336000
e
Total 1962000
24
Year 3
salry
Juice & 2 4000 96000
Snack bar
Clerk 1 9000 108000
manager 1 30000 360000
e
Total 2196000
Year 4
Job perso Montly Total Yearly
ns Salary/person salary
Juice & 2 4500 108000
Snack bar
Clerk 2 9500 228000
manager 2 32000 768000
e
Total 2880000
year 5
Job perso Montly Total Yearly
ns Salary/person salary
Juice & 2 5000 120000
Snack bar
Clerk 2 10000 240000
25
manager 2 33000 792000
e
Total 3072000
5.3. Calculation of Loan instalments is as below:
Year Amoun Princip Int total

t al
1 15000 15000 1500 3000
00 0 00 00
2 13500 15000 1350 2850
00 0 00 00
3 12000 15000 1200 2700
00 0 00 00
4 10500 15000 1050 2550
00 0 00 00
5 90000 15000 9000 2400
0 0 0 00
6 75000 15000 7500 2250
0 0 0 00
7 60000 15000 6000 2100
0 0 0 00
8 45000 15000 4500 1950
0 0 0 00
9 30000 15000 3000 1800
0 0 0 00
10 15000 15000 1500 1650
0 0 0 00
Assumptions taken in cash flow:
i) Office expense increases by 10,000 every year.
ii) Materials expense increases by 20,000 every year.
26
iii) Advertisement expense increases by 50,000 every year.
iv) Juice and snack bar revenue increases by 50,000 every year.
v) Expense of 0 year has been counted and shown earlier and hence not
shown again in cash flow statement. Just the total expense is
written directly.
vi) Loan is estimated to be taken of 15, 00,000 for 10 years at 10%

interest annually.
5.4. Estimated Cash Flow for 5 years is below:
Years
Particulars 0 1 2 3 4 5
balance B/f - - 18885 547254 831754
31724 20694 43 3 3
57 57
Revenue:
membership fee 63450 70250 69900 689000 655000
00 00 00 0 0
Juice and Snack 35000 40000 45000 500000 525000
bar 0 0 0
Events 40000 50000 45000 550000 600000
0 0 0
Total 0 39225 58555 97785 13412 15992

43 43 43 543 543
Expenses:
salary 13920 19620 21960 288000 307200
00 00 00 0
electricity 12000 15000 18000 210000 240000
0 0 0
lease of 12000 12000 12000 120000 120000
leasehold land 00 00 00 0 0
Loan installment 30000 28500 27000 255000 240000
27
00 0 0
materials 70000 90000 11000 130000 150000
0
Office expense 60000 70000 80000 90000 100000
Advertisement 10000 15000 20000 250000 300000
0 0 0
Miscellaneous 50000 60000 70000 80000 90000
Total 31724 59920 39670 43060 50950 26272

57 00 00 00 00 00
Balance C/f - - 18885 54725 83175 13365

31724 20694 43 43 43 343
57 57
Hence the above estimated cash flow shows that there will be positive inflow
of cash from the second year.
6. Project Control:
Project control is very important for any project because if there will be no
control even the well planned project may go haywire. Control is the process
of comparing actual performance against plan to identify deviations,
evaluate possible alternative courses of actions, and take appropriate
corrective action.
Control Process will keep check on the following issues:
i) Customer satisfaction on the issues such as facilities provided, staff

behaviour, instructor’s job, etc. Even the employees will be asked
their satisfaction level and whether they have any issues with
management or any suggestion they want to give.
ii) There will be check on financial issues such as cost and revenue.
Whether they are in control or going out of the planned budget. If
28
they will be going out than proper measures will be taken in order to
keep them in control.
iii) Best Quality service at reasonable price: Market research will be

conducted every year or 6monthly to check what technology our
competitors are using and at what price they are providing these
services.
iv) Proper control will be kept that there is proper co-ordination between
different staff members and that whole organization works for one
objective- providing quality service to the customers.
7. Bibliography
Below are the references of the sources from the data has been collected:
i) Project Management- The Managerial Process (Clifford F. Gray and Erik

W Larson)
ii) http://www.playgroundonline.com/
iii) http://shop.ebay.in/i.html?
_nkw=chess&_sacat=0&_odkw=chess+table&_osacat=0&bkBtn=&_
trksid=p3286.m270.l1313
iv) http://en.wikipedia.org/wiki/Table_tennis
29
v) http://www.squashgame.info/squashlibrary/14/37
vi) http://www.sportsknowhow.com/badminton/dimensions/badminton-
court-dimensions.html
vii) http://en.wikipedia.org/wiki/Basketball_court
viii) http://en.wikipedia.org/wiki/Tennis
30

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Project Report

Being Young- The Sports Club

(11th September, 2010)

In partial fulfillment of the requirement of the course

MBA Full Time (2009-2011)

1.1. Industry Analysis-Porter’s Five Forces

1.2. Company Analysis- Swot

2. Project layout and Resource

4. Sources of Revenue and Expenses for regular

5.2. Salary Expense

5.3. Calculation of Loan

5.4. Estimated Cash

1.1. Porter’s five forces Model for Sports Club Industry:

i) Competitive Rivalry within Industry: There are many sports club in

iv) Bargaining power of customers: In this industry customers are

1.2. Company Analysis: SWOT

Below is SWOT analysis of Being Young- the sports club:

i) Strengths: Providing customers with different types of sports is

iv) Threats: Emergence of substitute’s product such as providing facilities

1.3. Services offered

Sports club will have services as below:

i) Lawn tennis court

ii) Basketball court

vi) Juice and snack bar

viii) Trained coaches for games will be provided.

1.4. Project Scope

Below is the scope checklist for the project:

i) Project objective: Main objective of the project is to start a sports

ii) Deliverables: Here major deliverables will be defined which are as

 Constrain: Here the fix parameter will be that project

 Enhance: Here costs should be optimized so as to

 Accept: Time delay of few days will be accepted but

 Constrain: Here the fix parameter will be time as

 Enhance: Here too costs will be tried to enhance

 Scope: It will be accepted if approval and permissions

 Constrain: Here cost parameter will be fixed i.e. the

 Enhance: Here time will be tried to optimize so that

 Accept: here it will be accepted if location goes a bit

 Construction of Sports Building

 Constrain: Building should be completed within the

 Enhance: Costs will be tried to optimize so that

 Accept: A little here and there in scope will be

 Constrain: Procurement should be done on time.

 Enhance: Cost will be tried to optimize by getting into

 Accept: Scope will be accepted as in getting a bit

 Designing of Membership Packages

 Constrain: Here the packages should meet the scope.

 Enhance: Time will be tried to optimize in order to

 Accept: Variance in cost will be accepted as it won’t

2. Project Layout and Resources Required

2.1. Project layout

Project layout i.e. physical layout of the club is as follows:

2.2. Resources Required

i) Lawn Tennis: Resources required for lawn tennis are:

b. Balls- approximately 150 per year

e. Tennis posts ground sockets

f. Court flooring will be hard court whose requirement will be dealt

g. 2 long benches to sit for players during break

ii) Basketball: Resources required for basketball are:

a. 5 balls per year

e. Court will be cemented and its construction cost will be included

f. 4 long benches to sit for teams during rest period

iii) Badminton: Resources required for badminton are: