Opening New Spice Store in Welllington by Indospice-Project Management Sample




Business develops only by expanding it in terms of products and services. Expansion of product distribution across various geographic locations is also another important aspect that leads business towards growth (manageemtn, 2017).

In today’s world, food and food product business is one of the most booming areas with huge amount of profit. Everything from packed chips to open vegetables in super markets are the example that the food industry is taking new turns to attract their customers and increase their customer base (Andrew Smith, Fiona Elliott, 2012).

Indospice is in the business of packaged spices since many years. It was established in the year 2005 by the Tan’s family as an interest in dealing with various flavour of spices all across the world. In these years of business their range of spices has gone upto more than 100 with distribution across many international geographic locations (Akehurst, G, Alexander, M, 1995).

Now, they are planning to expand their business in Wellington, New Zealand. This project proposal identifies various types of factors such as risks, market, value, stakeholders, etc. that would help Indospice to set up their market in Wellington (Bolton, 2007).


  1. Purpose and background

The project needs to be taken because Indospice wants to serve more customers across the international boundaries. There are options to export spices from the home location to the destination but in that case, there are high chances of huge investment. If the spices are made in the warehouse of the destination location, it would serve two major purposes:

  1. Help remove the huge export cost

  2. Maintain the freshness of the spices

  1. Goals and Objectives

The Asian spice market is said to be the largest spice market in the world. Countries like India, Malaysia, China, and Sri Lanka are the caterers of this business. Many home-grown industries in these countries have utilized the international taste for spices to get positive business conversions (Broadbridge, 1999). Indospice wants to do the same by setting up its new store in Wellington, New Zealand. It wants the people of New Zealand to get the taste of their authentic spices and crave for more (Broadbridge, Rationalizing retail employment: a view from the outside looking in, 2002).

There are many herbal spices such as fresh basil and white cardamom that is good for health and is used in homely medicines for small diseases such as cold and fever. Indospice is the distributor of such spices and one of the objectives of indospice is to create awareness among people of Wellington regarding their distribution.

  1. Benefits and success criteria

Major benefits that can be derived from this situation are:

  1. Improvement in the taste of spices for the people of wellington

  2. Reduction in huge export costs from one location to another

  3. Impregnating the New Zealand market and give a competitive edge

  4. Supply quality products to the customers and create loyal customer base


  1. Scope of the Project

  1. In scope

The Indospice retail store set up project has been classified in 4 sections

  1. Business plan document

  2. Requirement definition

  3. Site selection

  4. Store design

In the first stage of this project management, the business plan document includes funding, budgeting, and good procurement. The in scope is the use of elements that are present within the organization. Among the listed, budgeting can be done on own taking in consideration all the situations (Cox, R, Brittain, P, 2000).

In the second stage, the requirement definition consists of target marketing, location decision, and staffing. Similarly, the in scope for this would be staffing where the people can be hired based on the internal requirement and budget.

The third stage is of the site selection and both zoning and decision for contract or lease can be taken by the in house store management after looking at the situation properly.

In the fourth stage of store design, the in scope is for everything. Even the internal and external decoration of the store can be done by the owners. They have to decide the decoration and features as per standards and then give contract to local vendors who can get things done (Ford, J, Collinson, D, 2011).

  1. Out scope

In the whole project if anything that has to out scope is the funding, goods procurement, location and target market.

To get the funding the store management has to go to various sponsors and understand their terms and agreement.

To get the goods procurement a external vendor has to be hired who can assure complete transportation activities and plan them in advance.


  1. Key deliverables

The key deliverables after the completion of project will be

  1. A full-fledged store with variety of spices in Wellington, New Zealand.

  2. A set of local employees working in the store hence providing employment to the local citizens.

  3. Regular marketing advertisements to increase the footfalls in the store.

  4. Updated inventory and other stocks of the spices so that buyers get what they want.

  5. Undertaking the hospitality of the buyers coming in the store to make their experience better.

  6. Improve the word of mouth within coming months of the store establishment.

  1. Estimated delivery date

To set up the store, the estimated date is to be kept in between 45 days to 60 days. There are many activities planned in this duration as shown in the work breakdown structure. These activities include taking government approval, purchasing or borrowing land, establishing norms and protocols for work permit as per New Zealand government rules, customizing the store, hiring employees, bringing stock etc. (Green, 2006) (Hodson, R, 2001)

The promotion of the store opening must start at least a month before the grand opening.

Assumptions and constraints

  1. Assumptions

There are a few sets of activities that are assumed to be completed before starting new Indospice store in Wellington, New Zealand. Installing an independent store without any government approval is not good and can be taken against the New Zealand law. So, a minor approval from the infrastructure department needs to be taken that would help in smooth functioning of the establishment. Apart from that, the ministry of trade has to approve the initial export of machineries to set up workshops and warehouses to make the spices.

After that the permission to removes the excess branches from the tree nearby (if any) has to be taken from the government environment department. This is because of maintaining the eco friendly environment. There should not be any harm to any tree whatsoever. If the trees are coming in between the installation, they must be removed but it should be ensured that they are not removed completely from the root.

Then as per labour law, there is a requirement to hire daily wage labours who can do things like making base for the panels to install and do the proper wiring from the panels to the inverter and from inverter to home appliances.

These activities are assumed to be completed before the installation of the solar panel system.

  1. Constraints

  1. The first constraint is to get approval from the local government for establishing a business from a different nation. All the norms of the government have to be followed.
  2. Setting the price in the competitive market for various products is yet another constraint.
  3. Based on the economic condition of the country IndoSpice has to take up the taxes of doing business.
  4. Insurance for theft and damage of the outlet and other products is yet another constraint.
  5. They have to understand the taste of people living in wellington. If the people love to eat spicy, the spices should be distributed accordingly. Probably a survey would answer certain important questions.

Budget and resources

  1. Cost estimates

    Outlet installation

    Cost (NZ$)/month

    Rent of the shop

    $ 700 – $ 850

    Power and electricity bill

    $ 150 – $ 200

    Internal customization

    $ 1200 – $ 1300

    Lease payment

    $ 3500 – $ 4000

    Product storage cost

    $ 150 – $ 250

    Transportation cost

    $ 100 – $ 150

  2. Resources required

The resources that would be required to keep the shop running would be regular inflow and outflow of products. For that the very first resource required is transportation. Through transportation methods the product inventory can kept stocked and all the buyers can get whatever they want in time.

The second resource required would be a means of product visibility. Advertisements and offline marketing can be taken up in order to deal with this.

Capital is an important resource to keep things running. The business idea should be something that keeps running the business even if the company fund has less amount in its pocket.

Workspace is yet another resource. The workspace should be ample to align all the aisles in line with variety of products. The workspace should also hold areas for staff meetings, cash counter, washrooms and inventory stock.

Risks and dangers

  •  Risks

Competition in the market is the biggest risk for any business. Even for Indospice the risk is the already established shops in the market.

Sometimes local government also creates troubles regarding the work permit of the workers and the type of procedure to be followed during the manufacturing of the products.

  • Remedies

The risks can be mitigated only by offering the best quality products with even better services. In food market, till the time a buyer is enjoying the taste, things work out well. Better flavors from indospices will pull the customers from the competitive market and offer a wide range of profit in terms of money and customer base.


  1. Stakeholders

This project is big and there can be people who are directly or indirectly involved in it. They are the direct and indirect stakeholders of this project.

Direct stake holders:

  1. The owner of the Indospice or the business owners who handle its other franchisee as well across other nations.

  2. The people who are staying or working in the store.

Indirect stake holders

  1. Government departments who would approve the project.

  2. The users of the products or the buyers who are paying for the products.

  1. Communication

This is a business to consumer type of channel. So, in terms of the communication there should be a good communication between the shop salesmen and the customers.

In order to understand the regular sales, a direct conversation between the sales people and the store manager is also important. This gives rise to a big question. How is the store going to be operated? The answer to this is, by proper hierarchy. If the hierarchy is followed, then there are less chances of making mistakes.


This project will b implemented in 3 phases:

  1. Phase one, where the on-paper design is prepared for the store to be revamped from inside. Also, the areas have to be specified for [articular products. Store management strategies has to be decided.

  2. Phase two, where the approval from government and other dignitaries has to be taken and contract has to be given to vendors for store decoration, area management and transportation.

  3. Phase three, where the store is advertised at least one month before its grand opening. At the opening day, the store must have certain discounts in its hand to attract more footfalls.





Executive summary

The current report highlights importance of project management plan and list of stakeholders who are involved in case of establishing store of Indospice in New Zealand. Along with that, budget management plan for the purpose of setting new Indo spice in New Zealand assists in performing individual task within targeted delivery time. Quality management objectives include making sure regarding appropriate quality and quantity of raw materials used for the purpose of making spice products and checking store department. Using check sheet allows production department and quality control department to improve business process and make necessary changes in spice products. Senior manager of quality control and members of production department are responsible for maintaining an effective operation process. In case of taking interview through verbal communication, communication skill and thinking ability as well as personality skills are judged properly. Negotiation issues are related to congruent and integrative which are biggest problems in Spice edge. In case of getting win-win outcome for the final project, business- to business sales can be followed. Designation compliance officers and providing best quality compliance training to all employees are required for maintaining an effective business process.

Table of Contents



i. Project scope

Documentation of business planning


Selection of sites and store designing

ii. Implemented strategy and plan

-Implementation approach and its benefits

iii. Schedule management plan

– Gantt chart

-Schedule management approach

– Milestones

iv. Budget plan

v. Quality management plan

Quality management aroach

Quality management objectives

Project quality control

Table 4: project quality control

Quality team role and responsibilities

Quality tools

vi. Human resource plan

vii. Procurement plan

viii. Negotiation plan

ix. Compliance related plan





A project management plan will be prepared based on approved documentation which is used to manage project execution. This planning procedure includes several actions such as definition, preparation, integration as well as coordination for successful execution of the project. A well developed project management plan includes analysis scopes, cost, quality, requirements along with implementation of strategies for proper improvement of project procedure. This project includes the management plan for opening a new spice store in Wellington by Indospice. Various ways of planning such as schedule management plan, budget plan, and human resource plan will be discussed here in brief.


The purpose of the project focuses on execution of proper business planning for Indospice that aims to open a new store. The management of this company is willing to attain more customers from national as well as international sources. The company can be able to increase their store capacity in saving spices but it needs a large amount of investment. Hence, the project planning emphasizes on removing their cost of spice production as well as maintaining the freshness of spice for having strong customer reviews for a longer time span.

i. Project scope

In order to have a strong market background, the Indospice can set up their project plan by focusing on four criteria.

Documentation of business planning

Proper execution of business documentation will be done by analysing the fund system of the company, budget fixing as well as investments for selecting materials. The Indospice management can be able to execute this business plan by managing their budget and amount of investments for developing the production of spices (Fangel, 2018).


This project will focus on the list of requirements of the company for opening a new store. In this respect, selection of target market and hiring efficient staffs are critically important to attain larger number of customers (Boon, 2018).

Selection of sites and store designing

The project can include ideas for selection of site for establishing the new store. The management will be able to select the zone for establishing their new store along with internal and external decoration of their store. For this purpose, they can make deal with efficient stakeholders. This needs to be done properly to get an effective result for project completion and execution (Garwood, 2018).

ii. Implemented strategy and plan

-Implementation approach and its benefits

Figure 1: WBS

Source: (Fangel, 2018)

This WBS presented a clear work break down of the tasks planned to do in a proposed time which includes initiation, planning, execution and budgeting of the resources for proper management. Work is divided into segment that will help to manage project by delegating tasks under each major factors or points (Kerzner, 2018). It shows detail breakdown of furnishing, lightings, advertisement, promotion plans, activities related to it.

iii. Schedule management plan

– Gantt chart

Table 1: Gantt chart

-Schedule management approach

The authority of Indospice will need to focus on the scheduling process of the project for successful business growth. Proper scheduling of the tasks is dependent on availability of a strong project team (Martinsuo, 2018).

Schedule management approach


Determination of service area

The authority of the Indospice will need to focus on selecting the potential service area within which the company can spread its product.


Proper analysis on selection of staffs and dividing the tasks among them will help the authority to manage the demand of the market.


In order to initiate the project the management team must calculate the amount of investment which will help them to save resources in future.


Monitoring of the production process by analysing the overall rate of profit will be helpful to apply better ideas for producing herbal spice in future (Tonchia, 2018).


The evaluation of the outcome such as the increased rate of profit, development of staff performances will be helpful to share a large market portion.

Table 1: Schedule management Approach

Source: (Heagney, 2016)

Management approaches will be evaluated to get better and positive results in the upcoming time with proper strategy planning and evaluation. Management will help to reduce the sudden loss or failures related to project by resource planning, budget management and activity planning (Heagney, 2016).

– Milestones

Figure 2: Milestone

This Gantt chart and milestone has provided estimated time for project completion that will provide the owners and contractors to proceed with the proposed timings with proper planning and execution of the plan. This will help to reduce risks related to project by proper analyzing, planning, execution and proposing (Bellah, 2018)

iv. Budget plan

In case of getting successful project management plan, it is essential to create proper budget based on which all significant tasks can be performed significantly. Along with that, budget management plan for the purpose of setting new Indo spice in New Zealand assists in performing individual task within targeted delivery time.

Installation of different factors in outlet

Cost (NZ$) per month

Rent for operating business in shop


Total amount for power and electricity


Internal decoration and maintenance charge


Payment for lease service


Storage cost for storing different products of Indo spice


Total cost of transportation


Table 2: Budget plan for Indo spice

(Source: (Alias, Zawawi, Yusof, & Aris, 2014)

In case of maintaining an effective business process and controlling different aspects including total bill of electricity and lease, making of project budget plan is essential. Budget plan is most significant part of getting positive outcome at the end of project completion (Heagney, 2016). By creating proper budget plan and making appropriate budget list for different tasks included in specific project is most essential step for completing the project within estimated time (Alias, Zawawi, Yusof, & Aris, 2014). Total invested  money for the purpose of completing the project such as setting new store of Spice edge is $6100 in which maximum amount will be spent for the purpose of two factors such as decoration and maintenance charge and lease payment.

In the following context based on new store of Indospice, project manager has evaluated total amount by considering different factors such as maintenance charge for whole infrastructure and cost of transportation as well as storage cost. Total amount for the purpose of paying lease is within range of $3550 which is comparatively higher than decoration charge and total cost of transportation. Based on three factors such as lease payment as well as transportation cost and annual maintenance charge, Spice edge can be able to earn significant amount of profit (Alias, Zawawi, Yusof, & Aris, 2014).

v. Quality management plan

Quality management approach

Objectives of quality

Measurement of quality

Appropriate methods for quality evaluation

Full fledge stores having variety of spice products

Quality standards and deliverable unit

Criteria of correctness

Activities of quality control such as measurement standards and rules and regulations (Project management plan, 2019)

Regular basis marketing advertisements

Updating on official website and social  media

Quality control standard

Updating inventory and stocks of spice products

Checking store department on regular basis and justifying unit and quality of materials (Refer to appendix 1)

Quality control standard

Table 3: quality management

Source: (Project management plan, 2019)

Quality management objectives

Following are quality management objectives

  1. Making sure regarding appropriate quality and quantity of raw materials used for the [purpose of making spice products in the company

  2. Checking store department on regular basis and measuring the quality whether it is meeting demand of customers

  3. To ensure appropriate marketing advertisement for the purpose of making suire regarding the appropriate quality and quantity products which are available in Spice edge

Project quality control

Deliverables of the project

Quality standards and quality  

Activities related to quality control


Full fledge stores having variety of spice products


Budgeting and measurement technique on regular basis (Quality management plan, 2019)


Appropriate advertising related to quality and quantity of spice products


Measurement technique by following quality standards criteria


Updating inventory and stocks  spice products


Checking social media and reviewing feedback of customers on regular basis for the purpose of taking appropriate action (Quality management plan, 2019)


Table 4: project quality control

Source: (Quality management plan, 2019)

Quality team role and responsibilities

Senior manager of quality control and members of production department are responsible for maintaining an effective operation process. Due to which, daily basis control and quality of products will be judged as per criteria of client (Serrador & Turner, 2015).  

Quality tools

In case of checking quality of spice products, pareto chart will be used. Along with that, using check sheet allows production department and quality control department to improve business process and make necessary changes in spice products (Quality management plan, 2019).

vi. Human resource plan

-Current and future human resources

Currently the Indospice authority is focusing on effective team management and providing extensive training to the staffs for producing and promoting the species within a large market range. But in order to establish a new store in a new location the human resource department of Indospice will need to incorporate the following strategies in their business process to have an authentic customer base. Human resource needs to hire skilled employees and workers to get an effective result for proper project management and this will help the management team of Indospice to get positive results in future. This will also help to complete the project within proposed deadline without any discrepancies and loss.

Proposed strategies

  • In order to develop awareness regarding their products among the people they target as potential customers, the management needs to hire expert and skilled staffs. Moreover, providing proper job security will help to motivate them to advertise the spices in a global market range.

The Indospice needs to incorporate workers who have sense about the production of herbal spices. Uniqueness in product quality will help to attract a large number of customers. For this purpose, the human resource management of this company needs to provide a proper training to the employees for successful talent management. Along with this, employee benefits and investment of a higher amount of money must be needed for sustainable growth in a new location.

In case of planning for human resources for creating new sites in New Zealand, Spice edge will be looking at three major factors such as analyzing objectives as well as estimating manpower and forecasting demand.

  1. Analyzing organizational objectives: major objective of Spice edge is to create higher customer awareness among large number of targeted people of Wellington as well as their distribution part.

  2. Estimating manpower of Spice edge: in case of enhancing awareness among customers of Wellington, it is essential to estimate available manpower and required manpower for producing varieties speice products (Karikari, Boateng, & Ocansey, 2015). Based on which, significant growth off the company can be possible.

  3. Forecasting demand of customers: on the basis of forecasting demand of customers related to quality and price, production manager and quality control manager could consider skilled and experienced employees. In case of hiring skilled and experienced employees, mass production of particular products can be possible (Serrador & Turner, 2015).

Due to which, verbal communication such as direct interview will be followed in the Human resource department of Spice edge.  Along with that, in case of taking interview through verbal communication, communication skill and thinking ability as well as personality skills will be judged properly. Based on which, company will be able to enhance number of customers by delivering quality products within estimated delivery time.

vii. Procurement plan

  • Scope of the project: the current project implementation plan ensures successful delivery of different factors such as business plan document as well as requirements and site design (Heagney, 2016).

  • Date of contract: contract has been taken from Government of Wellington and other dignitaries from 15th June 2018. Along with that, project manager has given the contract to store decoration as well as area management authorities and department of transportation.

  • Number of contractors and term of contract: 3 managers including project manager and quality control manager are involved for taking legal contract from manager of Spice edge and higher authority of Wellington Government.

Identifying process

Defining process for procuring different processes

Impact on project outcome

Selecting vendors and strategic decision regarding vat and taxation on payment bill

  • In case of maintaining an effective business process, selection of vendors is essential for selling products of Spices in different distribution area (Project management plan, 2019)

  • Along with that, fixing amount on the basis of total vat and service tax is required in an effective business process due to which audit manager will be responsible (Refer to appendix 2)

Higher impact on project outcome due to including two significant factors such as fixing of vat and included service tax on Spice products

Establishing payment terms

Online transaction process with the aid of credit cards is essential for providing significant benefits to customers (Verma & Kaushal, 2015)


Table 5: procurement process

Source: (Azambuja, Ponticelli, & O’Brien, 2014)

viii. Negotiation plan

Negotiation factors

Relational approach

Price level and discounting on different spice products

  • Low cost strategy and significant approach related to cost benefit can be significant benefits for the Spice edge

Win-win negotiations

  • In case of getting win -win outcome for the final project, business- to business sales can be followed

  • In the following case, salary negotiations is the biggest factor

Table 6: Negotiation process

Source: (Page & Mukherjee, 2014)

Negotiational issues are related to congruent and integrative which are biggest problems in Spice edge. In case of congruent issues, both sides such as employees and organization desire equal thing such as salary and share amount from earning profit (Page & Mukherjee, 2014). Along with that, in case of integrate issue, combination of issues such as salary negotiation and profit negotiation are considered for making happy to both sides such as manager of Spice edge and employees.

Employees of Spice edge desire appropriate salary as per working time and suppliers want to get proper amount in terms of supplying raw materials to company.

ix. Compliance related plan

Different processes

Description and impact on final outcome of Indospice

Developing and maintaining written policies and procedures

  • Developing written policies and procedures are essential for maintaining an effective organizational culture and well disciplined working environment inside the Indospice (Project management plan, 2019)

  • Higher impact

Designating a compliance officer

  • Compliance officer takes responsibility of maintaining contract and final products delivery as well as corporate policies

  • Moderate

Providing best quality compliance training and education to all employees

  • Best quality compliance training is  most significant way of ensuring skilled and experienced employees

  • Higher impact  

Establishing open line communication for all employees and members of Indospice

  • Open line communication inside the organization enables mitigation strategy at the time of raising issuers in the workplace

  • Moderate

Table 7: Compliance process

Source: (Project management plan, 2019)

Figure 3: Compliance process

Source: (Project management plan, 2019)


Thus, it can be concluded that senior manager of quality control and members of production department are responsible for maintaining an effective operation process. In case of taking interview through verbal communication, communication skill and thinking ability as well as personality skills are judged properly. Along with that, using check sheet allows production department and quality control department to improve business process and make necessary changes in spice products. In case of maintaining an effective business process and controlling different aspects including total bill of electricity and lease, making of project budget plan is essential. Budget plan is most significant part of getting positive outcome at the end of project completion.


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Appendix 1: Quality management plan



Appendix 2: Different steps included in procurement plan


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