Project Management Essay

Scope of bemuseSince the foresee involves mega figure the evaluation and study of scope is necessary, to find if the countrified is prep ard for such(preno minuteal) mega budget figures or non. In spite of having or so of the odds against and the greater  scrap in front of owners, it is commendable the government issue they produced. The outset polity 1racing was grand success in India it too power saw the attendance of viewing audience much than 100,000. The origination class quality produced in short span of time was commendable. After the grand success of first two editions of Indian portentous Prix this project has silenced the critics to an extent. The Indian GP boosted the delivery, as it saw major boost in hotel industry. The hotel charges in Delhi and NOIDA were change magnitude by 50% to 80% during the event. Travel and transportation services similarwise made merry, while there was capacious consumption increase for victuals and beverages. The co nvention 1 motor sport is huge money thread maker and it is expected to bring more money in future.The assumption for grosss from F1s commercial declines get out reach $3.3bn in 2016, according to a answer for by principle funds with sponsorship in 2011 returning exuberant. The research, lower-rankingd on data contained in the freshlyfound edition of the annual Formula Money report, predicts that revenues for the sports commercial rights holder, the Formula One Group, leave alone attire at a rate of 12.7 percent a year ambit $3,253m in five years time. Buddh foreign Circuit project was questioned as it was build keeping in the mind of Formula 1 step on it where Indian presentation is truly less. There is altogether one Indian team Force India co-owned by Dr. Vijay Malya that too has all outside(prenominal) drivers. The only Indian driver who features in Formula 1 speed is Narain Karthikeyan who drives for HRT.visual perception the response of first two F1 races ex perts be very much intrust skillful two(prenominal) the success of such projects. Motor sport volition develop in India however, it will off time, Dr. Malya in an exclusive question quoted F1is not short term project, he gave example of champion police squad Red bull and the progress they made in 7 years. The former(a) countries same Malaysia and China subscribe to already ventured into Formula 1 race personal line of credit. Most of the countries see it as enduement to boost their tourism celestial sphere more than the sporting activity and indeed it does foster in generating revenue in foreign currency as sport is having orbicular movement and fans and followers in large be who travel across the testis for the love of sport.Economic ActivityThe project started with a mega budget of $four hundred million dollar. It had a great affect upon the economy. It brought India on the map of global motor sport, which is considered to be the strikinggest money spinning s port in the humanness according to study conducted, the popularity of the sport fucking be measured by the fact that it had television set viewers of 527 million Formula One human beings championship. Formula Ones economic effects and creation of jobs are signifi raftt, and its financial and semipolitical battles are widely reported. Its high profile and popularity make it a merchandise environment, which results in great investments from sponsors and budgets in the hundreds of millions for the constructors.Critics may question this project as the damage of the project is very high the track alone cost near $120 million and the operable cost of the dress circle is $15 million to $20 million. Apart from the huge investment that Budhh International project has incurred, it is delivering rich dividends. The huge success of inaugural Indian Grand Prix which was full house already indicated the future of such projects in India. It has helped India gaining revenue from foreig n countries. It will as well give India exposure to high technology.The SiteBuddh International Circuit is located in Greater Noida in the outskirts of Delhi. Greater Noida travel within the National Capital Region of Indias capital in the raw Delhi and is adjacent to Noida, one of the largest industrial townships in Asia. It is located 40 kilometers (25 mi) to the southeasterly of New Delhi and 20 kilometers (12 mi) south-east of Noida. The Government of Uttar Pradesh then decided to incorporate the city of Greater Noida, as an extension to Noida, precisely with better planning, incorporating the lessons conditioned from the Noida development. The place is a perfect location for Budhh International Circuit as it takes only to the highest degree 2.5 hours of road travel from Delhi making it easier even for fans of formula 1 coming for outside of the country for the love sport.Connecting the city to Agra is Yamuna deport way six lane express way which was formerly cognize a s Taj Expressway. The round is part of the 2,500 acres (10 km2) Jaypee Greens Sports city, Greens Sports City home which also includes a 100,000 prat cricket stadium, 18-hole golf course, 25,000 seat field hockey stadium and a sports academy have been planned. The sports unwieldy is expected to cost 40 billion ($820 million) and generate $170m of revenue annually, and absorb 10,000 people.Infrastructural DevelopmentThe projects the uniforms of BIC boost infrastructural development in the field of view. It has encouraged the urbanization of the area. It is sign of ready developmental addition of the area. With base giant like Jaypee Group entering in the area, they can take the development to unit of measurement new level. The Jaypee Group is a hoard based in Noida, India. It was founded by Jaiprakash Gaur which is involved in well diversified infrastructure conglomerate with business interests in Engineering & Construction, Power, Cement, Real Estate and Hospitalit y. The project BIC has improved the interest of the people in considering Greater Noida as residential place. The opposite industries have also acknowledged 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 with child(p) budgets, they also required enhanced technology in order to bound the project on time. The Mega projects like BIC can not be staring(a) without the use of high technology in other words these projects also introduced high technologies to this area in order to boos the urbanization at fast pace. The urbanization of the area is helping in improving the quality of spirit of the people living in the area as they get to have sex world class initiation. The service level and quality of various important services such as hospitals and educational institutes has improved to great deal. The urbanization always attracts investment from company whi ch will mean consumer will have 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 hundred thousand, which will have malls, sports and education facilities, and will sit 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 some(prenominal) 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 hooking from the projects like Budhh International Circuit. Because of the number of event this circuit is hosting, they acquire increase numbers of foreign visitors. Hospitality sector will improve their status, as the auto-racing events baron bring in great effects of tourism into the coun try. It promotes the country not only as one of the tourist 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 tightfitting by location. It is also generating business opportunities for other sectors related to travel and transportation. The teams entertain 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 nutriment for their staff. The number of visitors expected to increase as the BIC is all set to breaker point Superbike World Championship (WSBK) in 2013. Increase number of events will unimpeachably boost the foreign currency inflow to the country and will help to build and promote Indian tourism Industry.Environme ntal Effects disrespect all the benefits from the BIC, there are several undeniable impacts it has on the environment. The new development will mean more pollution issues. The population are concerned that their health will be jeopardized by there youthful increase of development. The motorsport adds to air and noise pollution as the roaring level-headed of the engine creates noise pollution, as result you may find nigh of the people watching formula 1 race in circuit wearing ear plugs. And this is a life threatening sport as cars run at alarming speed at which accident can advantageously take place jeopardizing the life or car drivers and others. heathenish EffectsThe development projects like BIC have changed the environment from agriculture base to new developed town. The state government 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 two employment and unemployment . Even though there are a lot of job opportunities since so much of development has happened, people facing challenge 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 rightfully 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 westward countries and the Indian will get too much exposure from the Hesperian cultures and values. 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 king created what is called the generation gap between the young generations 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 disparity between headline-grabbing projects such as the Buddh circuit and the poverty that surrounds them has been well documented. But the myriad conflicts generated by the conversion 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 government of Uttar Pradesh, the state where the involved is located, and the Jaypee Group. The PIL claimed that because Formula One is an elitist sport, the state government has no right to unblock Jaypee from paying entertainment revenue enhancementes, alleging that the exemption was granted only because the company is very close to the political leadership. In order to construct the circuit, the lands of some trio hundred farmers w ere purchased by the state government. However, in August 2011 three months out front the inaugural race the farmers in question expressed dissatisfaction with the project and jeopardise to dismantle the circuit with force if necessary, demanding more money and stating that they felt up 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 accredited 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 force provoked by land disputes are commonplace. This is particularly true on the outskirts of cities where exploding populations , growing wealth and rampant property speculation combine with restrictive colonial-era laws and corrupt officials.ObjectiveThe objective of the study is to evaluate the project and rack up the feasibility of such mega budget project and to see if India the country which is smooth going through economical reforms and the county which having high Power Distance list 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, potentiality 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. Bearing 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 on ly considered second to Olympic. Formula One can be seen live or tape delayed in almost both country and territory around the world and attracts one of the largest global television audiences. The 2008 season attracted a global audience of 600 million people per race. accord to the reports year 2011 saw global viewers 515 million. The precise figures for year 2012 are not available. However, there seems to be decline 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 satiny in India as, people in India have more knowledge about the sport unlike China where it is limited 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 in the inaugural Grand Prix. The study also focuses upon the F1s impact on culture, environment and contention 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 amount of $1.587 billion, which is expected to grow gain ground 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 honor fr om international fraternity. The CEO of F1 Mr. Bernie Ecclestone has already acknowledged BIC as one the scoop up 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 vacuous 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 tight and ready spend for luxuries. In that way project BIC has opened adit 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 two of the mega event it has also given India a great recognition on the global world motor sport map. It is also creating employment and business opportunities.