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/recommendations for the proposed music festival..
Executive summary including any conclusions and recommendations
Adetailed 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 arriving at the dollar amounts – sources must not be contacted directlyie 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 arrive at the cost) and a cost per ticket.
Adetailed budget from the 1stAugust 2018 until final project completion, showing the estimated costs allocated across each of the months in the project life The budget must be set out in the form of a spreadsheet
Adetailed cash flow indicating all costs and revenues from 1stAugust 2018 to the end of the project including working capital requirements based on market related ticket prices and sales
Prepare budget from 1st August 2018 until the completion of a project
Cost is another important thing required to determine while finalizing any event as all the costs related to this particular event related to the music festival. This will include both direct as well as indirect costs which helps an entity to ensure the overall performance of the company. It is essential to include all kinds of costs to be incurred in arranging the event for music festival along with its overall scope to guide a project manager and the project sponsor to arrange each and everything as per the existing budget of the owner without which the event will not get finalized. The lists of all the costs are given as below:
Venue costs- This will include the cost of arranging an event on a particular place as it is a two-day event where camping should be organized so the place should be away from the city area to around the rush and traffic. It will cost around $5000 as the number of audiences expected for this event is 6000+ audiences.
Ticket costs- The cost of ticketing involves taking printouts of tickets through the internet and hard copy passes will cost around $20 per passes so the cost of issuing passes will be $20*6000 that is $120000 and the price of a ticket is $5000 for a two-day event.
Catering costs- It is a two-day event which requires different courses of meal starts from welcome drink, starters, breakfast, lunch, evening tea and snacks, dinner for two days. This will costs around in total $600 per guest that will in total counts as $600*6000 is $3600000.
Licensing fees- The event to be held in March 2016 is a licensed event as all the high profile global bands are attending this event which requires the licensing of the higher authority which will cost around $12000 to get the license for doing this event.
Cost of DJ- DJ will take a cost of $2000 per hour as it is a two-day event which requires 6 hours in one day and totals 12 hours for two days so the total costs for the two days will be $2000*12 is $24000.
Accommodation costs for guests- The accommodation costs of will includes the arrangements of camps using tents, blankets, sleeping bags, water facility, safety and overall security of the guests will cost around $800 per guests such as $800*6000 that is $4800000
Approval of the Australian government- For arranging a music festival, it is essential to seek the permission of the Australian government for inviting international bands and musicians from all across the globe to finalize this event which requires the approval costs of getting the consent of the parties. The cost of taking the approval from an Australian government is $25000.
|
Particulars |
August 2018 |
September 2018 |
October 2018 |
November 2018 |
December 2018 |
January 2019 |
February 2019 |
March 2019 |
Total |
|
Estimated costs |
|||||||||
|
Venue costs |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 625.00 |
$ 5,000.00 |
|
Ticket printing costs |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 15,000.00 |
$ 120,000.00 |
|
Catering costs |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 45,000.00 |
$ 360,000.00 |
|
Licensing fees |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 1,500.00 |
$ 12,000.00 |
|
Cost of DJ |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 3,000.00 |
$ 24,000.00 |
|
Accommodation costs |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 60,000.00 |
$ 480,000.00 |
|
Conveyance costs |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 6,250.00 |
$ 50,000.00 |
|
Approval from Australian government |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 3,125.00 |
$ 25,000.00 |
|
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 134,500.00 |
$ 1,076,000.00 |
|
|
Actual costs |
|||||||||
|
Venue costs |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 4,200.00 |
|
Ticket printing costs |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 115,000.00 |
|
Catering costs |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 287,000.00 |
|
Licensing fees |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 8,000.00 |
|
Cost of DJ |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 20,000.00 |
|
Accommodation costs |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 400,000.00 |
|
Conveyance costs |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 40,000.00 |
|
Approval from Australian government |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 30,000.00 |
|
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 904,200.00 |
|
|
Variance |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 21,475.00 |
$ 171,800.00 |
|
Particulars |
August 2018 |
September 2018 |
October 2018 |
November 2018 |
December 2018 |
January 2019 |
February 2019 |
March 2019 |
Total |
|
Cash Inflow |
|||||||||
|
Ticket Revenue |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
30000000 |
|
Total revenue |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
4285714.286 |
30000000 |
|
Actual costs |
|||||||||
|
Venue costs |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 525.00 |
$ 4,200.00 |
|
Ticket printing costs |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 14,375.00 |
$ 115,000.00 |
|
Catering costs |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 35,875.00 |
$ 287,000.00 |
|
Licensing fees |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 1,000.00 |
$ 8,000.00 |
|
Cost of DJ |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 2,500.00 |
$ 20,000.00 |
|
Accommodation costs |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 50,000.00 |
$ 400,000.00 |
|
Conveyance costs |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 5,000.00 |
$ 40,000.00 |
|
Approval from Australian government |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 3,750.00 |
$ 30,000.00 |
|
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 113,025.00 |
$ 904,200.00 |
|
|
Profit |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 4,172,689.29 |
$ 29,095,800.00 |
|
Profit margin@25% |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 1,043,172.32 |
$ 8,345,378.57 |
|
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 37,441,178.57 |
|
|
August |
September |
October |
Novemeber |
December |
January |
February |
March |
Total |
|
|
Cash Inflow |
August |
August |
August |
August |
August |
August |
August |
August |
Total |
|
Actual costs |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 10,548,498.21 |
$ 75,816,557.14 |
|
Total Profit |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 5,215,861.61 |
$ 37,441,178.57 |
Conclusion
It is concluded from the project that cost incurred in arranging this event is less than the total costs incurred for this particular event. The profit margin held by the client is 25% which proves fruitful for the organizer to meet all kind of costs to be incurred in organizing this event. The costs of accommodation are very high as the arrangement is for 6000 plus guests to be expected to attend the music festival to be held in March 2019 to lure the interest of all the youngsters.
The client is recommended to use the predictive analysis tool to track the attendance of all the guests in attendance to make all the arrangement as according to the guests to allow the client to save the costs to be incurred in all the activities included in this particular project. Social media is also used to inform the entire domestic as well as the international users of the music festival to get the spontaneous feedbacks of all the users who use social media platforms.
References
Kerzner, Harold, and Harold R. Kerzner. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons, 2017.
Nicholas, John M., and Herman Steyn. Project management for engineering, business and technology. Routledge, 2017.
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