Feasibility Report

Development of a Mobile App for Heartland Equestrian Centre

Prepared for: Equine Development Inc.

Prepared by

1. Md Tahsimul Huq (ID-30446426)

2. Amit Basnet (ID-30428148)

3. Santosh Panta (ID-30425029)

4. Arun Sapkota (ID-30423229)

Date: 05/05/2024
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Table of Contents
Executive Summary.................................................................................................................................3
1. Introduction..........................................................................................................................................3
2.Business Case Report for Heartland Equestrian Centre App Project...................................................3
2.1Project Background.........................................................................................................................3
2.2Project Objective.............................................................................................................................3
2.3SWOT Analysis..............................................................................................................................4
2.4Problem/Opportunity Statement.....................................................................................................6
2.5 Critical Assumptions and Constraints............................................................................................7
2.6 Analysis of Options and Recommendations..................................................................................7
2.7 Financial Analysis..........................................................................................................................7
Budget model:..................................................................................................................................7
Project Costs:...................................................................................................................................7
Project Cash Inflow:........................................................................................................................8
Financial Calculations:....................................................................................................................8
Project Management Costs:.............................................................................................................9
Additional Costs:.............................................................................................................................9
Overall Analysis:..............................................................................................................................9
2.8 Project Scope and WBS (Work Breakdown Structure) for Heartland App Development Project:
.............................................................................................................................................................9
1. Project Scope:..............................................................................................................................9
2. WBS breakdown Structure:.......................................................................................................10
2.9 Cost Model and Baseline for Heartland App Development Project:...........................................10
1. Cost Components:......................................................................................................................10
2. Cost Estimation:.........................................................................................................................11
3. Baseline Establishment:.............................................................................................................11
4. Tracking and Monitoring:..........................................................................................................11
2.10 Schedule, Gantt chart and network diagram..............................................................................11
Schedule:........................................................................................................................................11
Ghantt Chart:..................................................................................................................................12
2.11 List of Risk.................................................................................................................................12
3.0 Conclusion.......................................................................................................................................12
Key Findings:.....................................................................................................................................12
Addressing Challenges:.....................................................................................................................13
Recommendation:..............................................................................................................................13
4.0 Reference:........................................................................................................................................14
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Executive Summary
Heartland Equestrian Centre, a 100 acre facility and home to many trainers and
clinicians, is a corporation that offers full service tailored to rider’s requirements and
riding preferences. Managed by director Jack Bartlett, the facility provides classes
covering all disciplines of riding, houses horse wash, stables and much more.

1. Introduction
Burgeoning use of mobile phones has made top businesses to take mobile apps more
seriously to enhance customer engagement and organize operations. This business
case layouts the proposed development of a mobile application suitable for Android
and iPhone for the Heartland Equestrian Centre, located in Macedon Ranges, Victoria.
Through this mobile application, the company expects to increase customer
engagement, streamline operations and raise the revenue.

2.Business Case Report for Heartland Equestrian Centre

App Project
2.1Project Background
Heartland Equestrian Centre is an eminent facility that offers a full-service boarding
facility focusing on the needs of riders and their equestrian desires. Now, the centre
has been encountering low attendance because of the departure of a skilled trainer and
establishment of new competition around the area. With limited online presence,
Heartland is concerned about the growth of the company, thus, wanting to develop a
mobile application to attract customers and their engagement.

2.2Project Objective
The project’s aim is to develop a mobile application for iPhone and Android through
which all clients and potential clients can enrol and pay for riding lessons, re-training,
horse boarding, booking test rides and reservations. This will help to improve the user
experience for all the users which can ultimately increase the company growth and
boost the company revenue. The goals of this project are listed below:
 Build a mobile application
 Facilitate event bookings
 Display facility areas, horses and trainers
 Organize operations and communications
 Increase customer enrollment in lessons, boarding, retraining, and test rides.

2.3SWOT Analysis
Strength Weakness
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 Excellent lessons programs with  Reduction in bookings and clients

diverse facilities like arena, wash  Limited online presence
stall, stables  Dependent on a single trainer
 Test rides and full dude ranch
experience
 Dedicated management team
Opportunity Threat
 Development of new application  New competition
to engage more customers  Technological interference that
 Improvement in marketing to affects traditional business model
attract new clients
 Improve facilities to boost
reputations

Strength
Excellent Lessons Programs with diverse facilities
Heartland Equestrian Centre provides classes covering all the aspects of riding, and
covers multiple arenas like dressing and jumping, round yard, horse wash, stables and
much more. With an area covering 100 acres, one will know that the facility has more
than enough space to establish new arenas for extra curriculum which is a great
strength for the centre.

Test rides and full dude ranch experience

A full dude ranch experience allows clients to encounter daily life as a rancher, a
person who owns or works on a ranch. This type of activity can attract curious and
adventurous clients to the facility.

Dedicated management team

The facility has a group of highly skilled professionals assembled to oversee the
activities of the centre such as horse wash, horse riding, dressing and jumping. This is
a great strength for the centre.

Weakness
Reduction in bookings and clients
The centre has been hit with low client arrivals and bookings recently because of
limited marketing and online activity. With the vast change in digital age, the facility
has not been able to keep up with the technology, which is one concern they are facing
at the current moment.
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Limited Online presence

One huge weakness of Heartland is that it just has a basic web presence which very
few people use because a greater number nowadays use mobile phones. Hence, there
is less traffic in their website, and many are not aware of the facility and its services.

Dependent on a single trainer

Heartland was dependent on its highly respected trainer. So, when their trainer opted
to leave for a position overseas, the company were in trouble as they were primarily
dependent on the reputed trainer.

Opportunity
New mobile applications
Through this project, Heartland has a lot of new opportunities to grow themselves
better than their competitors. For example, a new mobile application can be a big
boost to their tumbling business.

Build Marketing Strategies

Heartland can focus on new marketing strategies to attract new potential customers.
From this business case, they can focus and learn about marketing tools and build
themselves better in advertising aspect.

Improved facilities
With the motive of rebuilding the business, they can focus to improve the facilities
and add on new activities. This could be a great opportunity for the centre to explore
on areas and rebuild it to be more attractive to potential clients.

Threats
New Competition
A big threat to Heartland Equestrian Centre is a newly opened competitor near to the
100 acre establishment. Newly opened competition probably is equipped with better
equipment and technologies so it is a great challenge for older businesses to keep up.
Technological Development
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Traditional Businesses have a hard time dealing with technological development and
adapt to new digital assets. Since Heartland is not used to technologies, it will be hard
for them to adapt, hence, this situation can be a threat.

2.4Problem/Opportunity Statement
Heartland is providing a very specific and niche service to its targeted customers. Here
we have discussed about the problems and opportunities that they might have faced:
Problems:
 Reduction in revenue: In some services like boarding horses, private lessons,
and retraining services heartland is having trouble to get through the customers
as one of their senior trainers left.
 Competition: Opening of a new horse-riding facility has increased Heartland
competition to get through the customers.
 No virtual presence: In this modern age of technology Heartland stills lacks
proper online presence. So, it would be hard for them to gain customers trust
with their new approach.
Opportunities:
 App Development: An App development is a user centric approach it will give
them more streamlined services to engage with the customers. As customers
can book prior to coming and also Heartland can use a CRM system to engage
with them and send them more personalised offers based on the targeted
customers’ needs.
 New Marketing strategy: With their new online presence now they can run adds
online to specific targeted audience which will save them from aimlessly
spending on print media or other forms of engagement. Also, as their customer
segment is very particular and belong to a financially stable community so
collaboration within the community and providing premium membership and
lounge facilities they can attract more customers with a royalty program.

2.5 Critical Assumptions and Constraints

Success of Heartlands objective depend on several factors and constraints. Some of
them are as goes:

 Tender bid Equine Development Inc. must be successful to start working with
their new vision.
 Qualified personnel must be available within budget.
 Project must be completed within the given timeframe of five months.
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2.6 Analysis of Options and Recommendations

The paramount option in this business case is to develop an app for mobiles with
following functionalities for the Heartland Equestrian Centre:
 Allow clients and potential clients to enroll .
 Allow clients to pay for riding lessons, horse boarding, re-training, booking
trail rides and dude ranch reservations.
 View photo options for trainer, lesson schedules and information about the
facility.
 Client access to Heartland newspaper and related upcoming events.
 Map of all trail rides and videos showing facilities.

2.7 Financial Analysis

Based on the given information in the case study we have prepared a Financial
Analysis which is based on the Budget model.

Budget model: This is a financial planning and analysis (FP&A) model to make the
budget of any organisation for upcoming years. As this model considers yearly,
quarterly, or monthly figures and also heavily focused on income statement that’s why
we have selected this model to work with (Schmidt, 2023).

Project Costs:

The cost to carry out the project is shown in the table below. The rows represent years
and the respective cost needed in that specific year.

Year Investment
0 $ 220000
1 $ 10000
2 $ 15000
3 $ 15000
Total $ 260000
Project Cash Inflow:

The projected cash inflow from the project are shown in the table below.

Year Cash Inflow

0 $0
1 $ 130000
2 $ 130000
3 $ 130000
Total $ 390000
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Discount Rate: 10%

Financial Calculations:
Net Present Value (NPV):

Below is the NPV formula for a single cash flow calculation (CFI,2024):

NPV = F / [ (1 + i)n ]

Where:

PV = Present Value

F = Future payment (cash flow)

i = Discount rate (or interest rate)

n = the number of periods in the future the cash flow

Calculation of the present value of each year's cash inflow using the discount rate of
10%.

Present Value (Year 1) = $130,000 / (1 + 0.1) = $118,181.82

Present Value (Year 2) = $130,000 / (1 + 0.1)2 = $107,315.91

Present Value (Year 3) = $130,000 / (1 + 0.1)3 = $97,122.50

NPV = Present Value of Cash Inflows - Project Cost

NPV = ($118,181.82 + $107,315.91 + $97,122.50) - $260,000

NPV = $322,620.23 (Positive NPV indicates that it’s profitable)

Project Management Costs:

 My contract: $120/hour 8 hours/day 2 days/week * 20 weeks = $38,400

 Programmer cost (including project management time): (2 programmers
$85/hour 5 days/week 20 weeks) + (management time 2 programmers 0.5
days/week 20 weeks) = Negotiable

Additional Costs:

Consultant and liaison fees (Amy Flemming, Ty Borden, Mallory Wells) - Negotiable
and capped at one week.

Digital image specialist cost - Negotiable

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Overall Analysis:

Conduct the DCF analysis to determine if the project meets the minimum ROI
requirement (25%). Factor in the budget contingency, project management costs, and
additional costs to get a more accurate picture of total project expenses.Compare the
total project costs with the expected cash inflows to assess profitability.

2.8 Project Scope and WBS (Work Breakdown Structure) for

Heartland App Development Project:
1. Project Scope:

This project will include the development and launching of a mobile application for
Heartland Equestrian Centre on iPhone and Android gadgets. As a result, the app will
operate as a marketing articulation and management implement for current and
potential customers of the equestrian business . The app’s essential features and
capabilities include:

 Enrolment and payment: This feature implies user enrollment in riding lessons,
horse boarding, re-training programs, trail rides, and dude ranch reservations.
 Client communication: Users subscribe to the Heartland newsletter to acquire
the latest events.
 Facility details: The app provides access maps for trail rides, Merrimeade
agenda, a video display and photograph album for all horses and companies.
 User reviews: Users issue an overall rating for the equestrian center’s amenities
and corporations.

2. WBS breakdown Structure:

The WBS breaks down the project into smaller, more manageable deliverables.

1. Project Management
o Develop and maintain project plan.
o Manage budget and resources.
o Conduct risk management.
o Manage communication and stakeholder engagement.
2. Requirements Gathering
o Conduct user interviews and surveys.
o Analyze existing website and marketing materials.
o Define user stories and functionalities.
3. App Design and Development
o Design user interface (UI) mockups and prototypes.
o Develop front-end and back-end functionalities.
o Integrate payment gateway.
4. Content Creation
o Develop text content for app descriptions and features.
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o Create video content showcasing facilities.

o Capture high-quality photos of horses, trainers, and facilities.

2.9 Cost Model and Baseline for Heartland App Development

Project:
The cost model estimates the total project cost based on identified resources and their
associated rates. The baseline becomes the approved budget used for project cost
control and performance measurement.

1. Cost Components:

Several cost components contribute to the overall project expense:

 Personnel Costs:
o Project Manager (You): $38,400 (based on your contract details)
o Programmers (2): Negotiable (considering 85 USD/hour with potential
negotiation)
o Digital Image Specialist: Negotiable
o Equine Consultant (Amy Flemming): Negotiable (capped at 1 week)
o Liaison Team (Ty Borden & Mallory Wells): Negotiable (capped at 1
week)
 Software and Development Tools: Costs associated with development tools
and any required software licenses.
 Hardware: (Optional) Any hardware purchases needed for the project team or
testing purposes.
 Travel and Expenses: Costs associated with travel to Heartland or other
project-related needs.
 Contingency Reserve: A buffer amount (typically 10% of total budget)
allocated for unforeseen expenses.

2. Cost Estimation:

 Develop a detailed breakdown of personnel costs based on hourly rates and

estimated time commitments for each team member.
 Research and estimate costs for software licenses, development tools, and any
required hardware.
 Factor in potential travel and miscellaneous expenses.

3. Baseline Establishment:

 Once all cost components are estimated, calculate the total project cost.
 Include the contingency reserve as part of the overall budget.
 This total amount becomes the cost baseline for the project.
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4. Tracking and Monitoring:

 Throughout the project, track actual expenses incurred against the cost
baseline.
 Regularly monitor project progress and identify any potential cost variances.
 Implement cost control measures to address deviations from the baseline.

Here's an example cost breakdown table (fill in negotiable values):

2.10 Schedule, Gantt chart and network diagram

Schedule:

Here's a preliminary schedule breakdown based on the project information:

 Week 1-2: Project Kickoff, Information Gathering

 Week 3-5: App Design
 Week 6-10: Development (Prototype)
 Week 11-14: Development (Alpha Version)
 Week 15-18: Development (Beta Version) with Testing
 Week 19-20: Development (Final Version), Testing, Deployment, Promotion
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Ghantt Chart:

2.11 List of Risk

 Scope creep that goes above the planned budget and timeline.
 Difficulty in app integration to the existing system.
 Dissatisfaction among clients or users.
 Delay in project because of limited resources or technical challenges.

3.0 Conclusion
This report has analyzed the feasibility of developing a mobile app for Heartland
Equestrian Centre (HEC). The app, designed for iPhone and Android devices, aims to
improve client engagement and drive business growth for HEC.

Key Findings:
 Heartland has experienced a decline in core services due to a trainer leaving
and increased competition.
 A well-designed mobile app can address these challenges by:
o Simplifying enrollment and payments for services.
o Providing easy access to information and showcasing facilities through
videos and photos.
o Enhancing communication and building stronger relationships with
clients.
 The project is estimated to take 5 months (20 weeks) with a total budget of
$260,000, offering a potential return on investment (ROI) exceeding 25%.
 A core development team of programmers and a digital image specialist, along
with project management support, is required. Additional expertise from an
equine consultant and liaisons from both Equine Development Inc. and HEC
will be crucial for success.
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Addressing Challenges:
 Team composition requires careful management to bridge potential skillset
gaps between those experienced with kids' gaming apps and those suited for
business marketing projects.
 Clear communication and proactive stakeholder management will be essential
to address any concerns regarding the company's new market focus.

Recommendation:
Based on the positive ROI potential and its ability to address HEC's challenges,
developing the mobile app is a recommended course of action. Equine Development
Inc. possesses the necessary skills and experience to deliver a high-quality app within
the proposed timeframe and budget. Moving forward, assembling the project team,
establishing clear communication channels, and implementing a risk mitigation
strategy will be critical for project success.
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4.0 Reference:
Schmidt, J. (2023, December 22). Types of financial models. Corporate Finance
Institute. https://corporatefinanceinstitute.com/resources/financial-modeling/
types-of-financial-models/#:~:text=8.-,Budget%20Model,heavily%20on%20the
%20income%20statement.

CFI Team. (2024, March 24). NPV formula. Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/valuation/npv-formula/