Project Management Essay

Scope of ProjectSince the dispatch involves mega budget the military rating and survey of scope is obligatory, to recollect if the country is prep bed for such mega budget projects or not. In spite of having most of the odds against and the capaciouser dispute in front of owners, it is commendable the outcome they produced. The first form 1racing was cat valium achiever in India it overly saw the attendance of viewing audience much than(prenominal) than than 100,000. The macrocosm class gauge produced in short span of clip was commendable. After the grand conquest of first twain editions of Indian meretricious Prix this project has silenced the critics to an extent. The Indian GP riseed the economy, as it saw major lift in hotel sedulousness. The hotel charges in Delhi and NOIDA were increased by 50% to 80% during the event. Travel and tran shimmeration services besides made merry, musical composition in that respect was wide consumption increase for food and beverages. The formula 1 motor sport is huge capital spinner and it is expected to bring to a greater extent than capital in upcoming.The assumption for tax revenues from F1s commercialized rights forget pee-pee $3.3bn in 2016, according to a report by law funds with sponsorship in 2011 returning fast. The research, based on data contained in the bracing edition of the annual design M hotshoty report, predicts that revenues for the sports commercial rights holder, the Formula One Group, go forth rise at a calculate of 12.7 percent a year reaching $3,253m in five long time time. Buddh International Circuit project was school principaled as it was build keeping in the mind of Formula 1 Racing where Indian presentation is real slight. There is nevertheless mavin Indian Team Force India co-owned by Dr. Vijay Malya that as well as has all in all international drivers. The only Indian driver who features in Formula 1 race is Narain K blindhikeyan who drives for HRT.Seeing the response of first two F1 races experts are in truth much hope full about the success of such projects. Motor sport give develop in India however, it will take time, Dr. Malya in an exclusive interrogate quoted F1is not short line project, he gave example of champion team Red bull and the mount up they made in 7 years. The another(prenominal) countries like Malaysia and China train already ventured into Formula 1 race championship. Most of the countries see it as investment to boost their tourism celestial sphere more than the sporting work and indeed it does help in generating revenue in foreign up-to-dateness as sport is having global presence and fans and followers in spectacular numbers who travel across the world for the love of sport.Economic practiseThe project started with a mega budget of $400 unrivaled cardinal million dollar. It had a great impact upon the economy. It brought India on the map of global motor sport, which is considered to be the biggest money spinning sport in the worldaccording to pick up conducted, the popularity of the sport foot be measured by the fact that it had television viewers of 527 million Formula One world championship. Formula Ones economic personal effects and creation of jobs are significant, and its financial and political battles are widely reported. Its luxuriously profile and popularity make it a merchandising surround, which declarations in great investments from sponsors and budgets in the hundreds of millions for the constructors.Critics may question this project as the monetary value of the project is real noble the track alone cost around $120 million and the operational cost of the dress circle is $15 million to $20 million. unconnected from the huge investment that Budhh International project has incurred, it is delivering rich dividends. The huge success of world-class Indian marvellous Prix which was full house already indicated the future of such projects in Ind ia. It has helped India gaining revenue from foreign countries. It will also riposte India word picture to high engineering science.The SiteBuddh International Circuit is located in Greater Noida in the outskirts of Delhi. Greater Noida falls within the National superior Region of Indias capital New Delhi and is adjacent to Noida, one of the largest industrial townships in Asia. It is located 40 kilometers (25 mi) to the southeastern United States of New Delhi and 20 kilometers (12 mi) south-east of Noida. The Government of Uttar Pradesh then decided to incorpo site the city of Greater Noida, as an extension to Noida, but with better planning, incorporating the lessons learned from the Noida increase. The place is a everlasting(a) location for Budhh International Circuit as it takes only about 2.5 hours of bridle-path travel from Delhi making it easier even for fans of formula 1 coming for extraneous of the country for the love sport.Connecting the city to Agra is Yamuna E xpress style six means express way which was formerly k nowadaysn as Taj Expressway. The circuit is start of the 2,500 acres (10 km2) Jaypee Greens Sports City, Greens Sports City home which also includes a 100,000 seat cricket stadium, 18-hole golf course, 25,000 seat field hockey stadium and a sports academy take aim been planned. The sports complex is expected to cost 40 billion ($820 million) and mystify $170m of revenue annually, and employ 10,000 multitude.Infrastructural DevelopmentThe projects like BIC boost infrastructural cultivation in the arena. It has encouraged the urbanization of the area. It is sign of fast developmental growth of the area. With infrastructure giant like Jaypee Group entering in the area, they can take the development to whole new train. The Jaypee Group is a conglomerate based in Noida, India. It was founded by Jaiprakash Gaur which is involved in well diversified infrastructure conglomerate with business interests in engineering science & Construction, Power, Cement, Real Estate and Hospitality. The project BIC has improved the interest of the people in considering Greater Noida as residential place. The other industries obligate also acknowledge the development in the area and now they are seeking this as an opportunity to grow their business and moving their business to the town.Such Mega projects not only require big budgets, they also required enhanced technology in localize to finis the project on time. The Mega projects like BIC can not be accomplished without the use of high technology in other words these projects also introduced high technologies to this area in put to boos the urbanization at fast pace. The urbanization of the area is helping in improving the quality of bread and butter of the people living in the area as they get to enjoy world class facility. The service level and quality of various important services such as hospitals and educational institutes has improved to great deal. The urba nization always attracts investment from company which will mean consumer will engage more option and better quality of service.Trade and TourismsThe Buddh circuit has been built as a flagship development for a bigger project a new town with a population of several(prenominal) hundred thousand, which will have malls, sports and education facilities, and will turn on astride a new motorway linking it to Delhi, 32km away, and Agra, 190km away. The Buddh International circuit has brought, boost to the tourism and trade two as it has increased the number of foreign visitors who come follow the Formula 1 race. The world class architecture and the facilities available at the circuit give fans run for their money. The hospitality sector has gained a lot from the projects like Budhh International Circuit. Because of thenumber of event this circuit is swarming, they getting increase numbers of foreign visitors. Hospitality sector will improve their status, as the auto-racing events mig ht bring in great effects of tourism into the country. It promotes the country not only as one of the touring car attraction but will also attract sport lovers from all over the world.Hotel industry is expecting growth in their business as the people who come to watch events like Formula One try to find accommodation in near by location. It is also generating business opportunities for other sectors related to travel and transportation. The teams carry their own machines and equipments while venturing in such competitions which require good and fast moving transportation facilities. Hotel and the hospitality industry will benefit greatly from Formula One Entertainment as they would provide accommodation and food for their staff. The number of visitors expected to increase as the BIC is all set to stage Superbike World Championship (WSBK) in 2013. increase number of events will definitely boost the foreign currency inflow to the country and will help to build and promote Indian to urism Industry.Environmental EffectsDespite all the benefits from the BIC, in that respect are several undeniable impacts it has on the environment. The new development will mean more contamination issues. The population are c at a timerned that their health will be jeopardized by there recent increase of development. The motorsport adds to air and noise pollution as the roaring sound of the engine creates noise pollution, as result you may find most of the people watching formula 1 race in circuit wearing ear plugs. And this is a career bratening sport as cars run at alarming speed at which accident can easily take place jeopardizing the life or car drivers and others.Cultural EffectsThe development projects like BIC have changed the environment from agriculture base to new developed town. The state political science has taken land from framers for this Mega project, which is a part bigger infrastructural development in this part of the state. The development has produced both recitation and unemployment. Even though there are a lot of job opportunities since so much of development has happened, people facingchallenge as they have re-skill themselves. Developments in area, which once lack of modern facilities has offered more schools for the childrens education, better hospital facilities, and more job opportunities. With the area getting international exposure more and more companies willing to invest in land here.Real estate business in the area has unfeignedly picked up the pace as the rate of the land moving up high, creating business opportunities, as more and more people willing to invest in land here. Most of the Formula 1 fans are from western countries and the Indian will get too much exposure from the western cultures and set. This does not imply that the western cultures and values are negative but rather does not fit into the way of life of the Indian cultures. This might created what is called the generation gap between the junior genera tions and the older generations as the younger generations are influenced by western cultures while the older generations are by the traditional Indian cultures.The ControversyThe distinction between headline-grabbing projects such as the Buddh circuit and the poverty that surrounds them has been well documented. just the myriad conflicts generated by the transformation of India are heard about less often. The track has been greeted with fanfare in journalist and sporting circles, and with legislation and protests elsewhere. Public-interest litigation was filed against the governing body of Uttar Pradesh, the state where the complex is located, and the Jaypee Group. The PIL claimed that because Formula One is an elitist sport, the state authorities has no right to exempt Jaypee from paying entertainment taxes, alleging that the exemption was given only because the company is actually close to the political leadership. In order to construct the circuit, the lands of some three hundred farmers were purchased by the state government. However, in August 2011 three months before the inaugural race the farmers in question expressed dissatisfaction with the project and threatened to dismantle the circuit with force if necessary, demanding more money and stating that they felt the land should have been zoned for industrial estates to generate more employment in the area.Meanwhile, farmers on whose land the circuit now stands continue to protest. The land was bought by the state government in 2007 for the development of roads and industry.Farmers complained they had not received the compensation or jobs they were promised. Bhatta-Parsaul made headlines in the summer when police attacked farmers who had been protesting about the compulsory purchase of their lands by the government of Uttar Pradesh. Allegations of police brutality and violence provoked by land disputes are commonplace. This is particularly true on the outskirts of cities where exploding populati ons, growing wealth and rampant lieu speculation combine with repressive colonial-era laws and corrupt officials.ObjectiveThe objective of the study is to evaluate the project and check the feasibility of such mega budget project and to see if India the country which is still going through economical reforms and the county which having high Power Distance Index is ready for such mega budget projects. The study focuses upon the scope that project such as Buddh International Circuit carries. It takes upon the Formula 1 motor sports, potential for generating revenue and its scope in India. It also takes on its impact of economy and revenue generation. The number of business and employment opportunity it provides. Also take on its impact on the tourism industry in India and other sub industry in India. guardianship the fact in min it provides excellent international exposure for India as the sports is banking upon huge media coverage. It is having such a large viewership which only co nsidered second to Olympic. Formula One can be seen live or tape detain in almost every country and territory around the world and attracts one of the largest global television auditory modalitys. The 2008 season attracted a global audience of 600 million people per race.According to the reports year 2011 saw global viewers 515 million. The precise figures for year 2012 are not available. However, there seems to be pass up in the number of viewers for year 2012. The study also takes a look at the Indian representation at Formula 1. The only Indian Formula 1 driver Narain Karthikeyan who drives for HRT in an interview said it is very difficult to break in to Formula 1 circuit. However, the future of this sport is bright in India as, people in India have more knowledge about the sport unlike China where it is exceptional to Shanghai only. The Indian Team Force India performed well in the both the edition of the Indian Grand Prix. However, the performance was better inthe inaugural Grand Prix. The study also focuses upon the F1s impact on culture, environment and joust related to the BIC project, the controversy which created political issues in the territory.6. AnalysisOn the analysis of the sport we can find that Formula 1 is money draining spots, it requires large budget as an average formula one car can easily cost around $100 million dollar. On the contrary it has huge fan following, the sport is one the richest and one the viewed sports of the televisions, having viewership in hundreds of millions, making it big money spinning sport. According to sources the revenue generated by F1 from commercial right in year 2010 was an astonishing tally of $1.587 billion, which is expected to grow further in future. The sport promises to be the huge money spinner. The analysis of the BIC infrastructure and the world class facility it contains, one can say this is a worth project. BIC has successfully hosted the Indian Grand Prix twice and received and accolade fro m international fraternity. The CEO of F1 Mr. Bernie Ecclestone has already declare BIC as one the best racing circuits of the world. The investment and operational cost analysis of BIC projects shows that it requires mega budget and the operational cost of the circuit is also very high which is almost around $15 million to $20million per year.The state of art and world class facility of this circuit makes it suitable for events, which are very necessary for preventing it from becoming white elephant. The circuit is also about to host World Superbike Series. The analysis of impacts of BIC it has some positive and some negative impact. It has really boosted the infrastructural development in the area. The events like F1 race giving India Global exposure and thereby giving Indian tourism and hospitality industry a chance to grow further. The Formula 1fans follow this sport from across the globe and most of them are wealthy and ready spend for luxuries. In that way project BIC has ope ned gate for foreign currency inflow.The projects also have some negative impact also it started on the land bought from farmers, which created controversy later and became big political issue, apart from this the owner group also came under scanner for tax exemption. This project was also seen as threat to environment as it causes both air and noise pollution. BIC has been successful in hosting twoof the mega event it has also given India a great credit entry on the global world motor sport map. It is also creating employment and business opportunities.