Project Management Analysis of David’s Discount Pharmacy

Business Project Management

Effective project management necessitates continuous adjustment so that the business accommodates the most recent trends. Majority of company directors expect project updates to be accessible in real time and anticipate live data to be accessible. Careful modeling of projects towards organizational aims and strategy is essential for attaining these objectives. A cost-benefit analysis can be important in determining how effectively, or how inadequately, a project will deliver value to an organization. Matching the total commercial benefits to the project costs incurred in the end enables decision makers to determine whether to go ahead with a recommended project (Vanlandingham and Drake, 2012). The purpose of this paper is to analyze the different projects and their costs and benefits towards David's Discount Pharmacy.

In the analysis of the case of David's Discount Pharmacy, the best option for the replacement is re-designing the front end and back end. This is because this particular option has the highest score on the weighted attribute scoring matrix. This matrix takes into consideration ROI contributing benefits as well as the value-enabling benefits. This approach is considered the best one because it will enable David's Discount Pharmacy to circumvent unplanned future costs.

This is because, taking into consideration the other options or plans of avoiding expenses, despite the fact that the company or the business will certainly benefit from them, in the end the business will not realize any kind of direct cost savings owing to the aspect of such evaded costs. Therefore, at the end of the day, the profit margins of the company will not increase. For instance, the first option is maintaining the current system with archiving system would be coming up with a solution for David's Discount Pharmacy that would enable the business to safeguard its future streams of revenue from declining (Resch, 2011).

This in itself would be recommendable, as the business would accrue a long-term benefit (by way of sustaining its present revenue stream). However, the drawback in this would be that it would not generate any additional revenue (Resch, 2011). It is imperative to take into account the ROI contributing benefits of a project as well as the value-enabling benefits.

In the analysis of the two aspects of David's Discount Pharmacy, the ROI contributing benefits take more weight in comparison to the value-enabling benefits. In this case, project A would have a poor return in terms of the financial returns generated as it has a negative score. In addition, it has a poor score as regards the benefits that would be enabled in terms of value for the business. This is indicative of the notion that if this Project is selected then David's Discount Pharmacy would continue facing the issue at hand and still generate poor returns from the business.