The business case that has been presented relates to the innovative housing solutions that have been specifically designed for students in the Jönköping area of Sweden. The modular housing concept that has been designed takes into account the short-term living needs of the students. The area has been selected for the project since it is one of the regions that are growing at a rapid pace and it consistently attracts short-term visitors. The business project intends to develop the semi-luxury and self-contained student apartments which can cater to the needs of the high-end student population along with the other students and users with special needs within the Jönköping area.
The designed business idea focuses on different elements such as the master plan, interior designing, exterior surrounding, exterior front and back area. The identified strategic choices and solutions have been presented that have been supported by necessary analysis, data and argument. The modular housing model that has been featured could be a great dwelling option for the users due to various features including the cost-effectiveness, energy-efficient structure, quality controlled environment, speedy construction process, environmentally friendly, reduced risk and better efficiency, declined construction and traffic noise disturbance, and convenient and quick de-construction and removal technique. The initiative that has been developed is surely a better, greener and cheaper option that could offer students short-term housing solutions. But a thorough analysis of the business plan is crucial in order to ascertain the effectiveness of the plan. The aim is to analyze the proposed housing project so that its feasibility can be understood. Various critical issues and challenges could arise in the pathway in this specific project management initiative. So a thorough analytical study has been conducted so that the existing loopholes in the business idea can be identified and tackled in an effective manner.
A number of components relating to prefabricated construction are similar to that of conventional construction models. The similarities can be observed in site preparation, excavation, and the installation of the site foundation. The detailed designing and fabrication of the building components are carried out under a controlled factory environment, using the same raw materials and designing techniques. The particular location that has been selected for the housing site is apt since it would suit the overall requirements of the modern metropolitan dweller (Flyvbjerg, 2013).
The analytical models that have been selected to evaluate the housing initiative are case studies. This specific analytical tool has been chosen to understand the various implications that might arise in the path of the business initiative relating to housing solutions for students (Kerzner, 2013).
The basic advantages of modular housing design over other construction models include strong control over the quality aspects of the construction. Modules are completely designed and built-in manufacturing facilities at a centralized location with a controlled setting. The basic strategy that has been presented in the business scenario has been designed taking into consideration the housing requirements of students, their cost constraints and innovative designs that are available in the market (Martinelli & Milosevic, 2016). The use of environmentally friendly elements like organic materials is a smart move since it could basically reduce the pollution that is generated due to construction work.
Since the on-site activities that are needed to be performed are significantly lower in this housing model, the vital requirement that would have to be performed is the installation of the module with the crane (Nicholas & Steyn, 2017). The biggest advantage of the housing design is that these innovative designs arrive in a complete state i.e. the electrical systems, mechanical systems; plumbing models, showers, and dishwashers are a part of the housing design. This completeness of the prefabricated student housing would allow the students to lead a hassle-free life at simple and smart homes.
Appendix 1 shows that the rent expenses that arise due to the office are on the decline but the expenses that arise due to residential accommodation in Sweden is increasing on a daily basis. This fact actually shows that the innovative business plan concerning housing solutions is a smart business move and could allow the business to do a significant amount of profit. The strategies of the project are to the point but it is important to understand the practical aspects of the business model (Serra & Kunc, 2015). The table shows that people are willing to spend more amounts to lead a comfortable life so they have started to spend a significant amount of money on their accommodation and housing facilities. Appendix 2 shows that there is a high degree of fluctuation in the vacancy rates of offices and corporate locations. But the vacancy rate relating to the housing sector is pretty uniform in nature. This trend is due to the fact that Sweden is developing very quickly and in the process, it is attracting visitors from different sections of the globe (Schwalbe, 2015). The vacancy rate that has been predicted in the particular business project is 0.5%. This move is pretty normal based on the trend that has been observed I the Sweden market.
This section of the analysis takes a hypothetical scenario relating to the proposed project case so that the exact costs associated with the project can be determined. This table highlights the reasons that could lead to the fluctuation in the costs of the business model. The presented case uses the Canadian Dollar (CAD) as currency.
Three student housing models have been considered in the table. The various elements that have been included in the analysis are the manufacture elements, customization of housing facilities, on-site interior work and miscellaneous on-site work and utilities. Project A-model and Project B-models are hypothetical situations based on the presented business plan and Project A-SIP has been taken from the real-life housing scenario. The “manufacturing expenses” of Project A-model and Project B-model are the same since the cost of production; delivery and installation of the prefabricated models are considered to be the same (Turner, 2016). The “customization” in the case of the ProjectA-model is higher as compared to its counterparts since the model offers an upgrade facility to the students or residents. The on-site costs of the hypothetical housing models are lower than Project A-SIP since the mechanical and electrical system is already installed in the former housing solutions. The “miscellaneous on-site work and utilities” relates to the development of temporary facilities. This cost is higher in the case of the proposed business model.
Source: (Turner, 2016)
The data that has been collected and analyzed shows that the feasibility of the project is genuine if all the aspects relating to the needs of the students are taken into account by the business (Schwalbe, 2015). The innovative designs must be in the housing models so that the simplicity of living there is not compromised. This housing solution is not exactly new in the housing industry but the increased use of innovation in the housing model could make it a real success in the competitive environment (Nicholas & Steyn, 2017). The simplicity and effective design of the housing solutions that have been highlighted in the proposal could help the idea to grow in size and be productive in the Sweden market. Since the vacancy rate for residential homes is quite low, this unique housing solution could provide good housing options to the modern metropolitan inhabitant.
Sciencedirect.com 2017. Analysis of Costs and Benefits of Panelized and Modular Prefabricated Homes. [Online] Available at: http://www.sciencedirect.com/science/article/pii/S1877705816301734. Accessed 16th Sep 2017.
Flyvbjerg, B., 2013. From Nobel prize to project management: getting risks right. arXiv preprint arXiv:1302.3642.
Kerzner, H., 2013. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.
Martinelli, R.J. and Milosevic, D.Z., 2016. Project management toolbox: tools and techniques for the practising project manager. John Wiley & Sons.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.
Serra, C.E.M. and Kunc, M., 2015. Benefits realisation management and its influence on project success and on the execution of business strategies. International Journal of Project Management, 33(1), pp.53-66.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Turner, R., 2016. Gower handbook of project management. Routledge.
Source: (sciencedirect.com, 2017)
Source: (sciencedirect.com, 2017)Order Now