Cunningham Holdings Limited Case Study - Spreadsheet Model Implementation - Management Assignment Help

Assignment Task :

Background Information
Cunningham Holdings Limited is a diversified family owned business. For more information about the company see the company profile. The Company’s strategic planning is aligned with their Corporate vision “Creating Sustainable Products and Services for Globally Connected Communities”.
As part of this vision, the Company is focusing on the development of rural communities. The Company’s requires that key United Nations Sustainable Development goals are included in all planning activities for business innovation. The focus in creating sustainable products and services is underpinned by developing initiatives that:
1. Have a global Business perspective
2. Leverage the power of data and insights
3. Build leadership and management skills

Oscar Cunningham, the CEO of CHL Hospitality subsidiary has suggested to Cunningham Holding’s board that, in conjunction with a Project Manager, CHL Hospitality subsidiary will oversee the management and construction of the Cunningham Gudgal Golf Resort at Charters Towers with a development budget of $20 million.
The CHL Hospitality subsidiary manages 300 hospitality venues located across Australia. The client base for CHL Hospitality varies from business travellers to families and the hospitality venues provide varied accommodation, catering and leisure activities ranging from luxury to economy options. The Golf Course project will not only build Cunningham’s brand and image, but more importantly it will help drive international tourism and stimulate the local economy in which it is located, a regional
tropical area that has no current CHL Hospitality venues.

Preliminary enquiries have sourced an appropriately sized block of land of 42 hectares in the Charters Towers area and ascertained that a change of use application was likely to be successful on condition that the development must maintain the natural beauty of the area with no destruction to the environment. This requirement would be well accepted by the company as it aligns with its corporate vision. 

The Scenario - Golf Course Requirement
Oscar Cunningham has conducted extensive research to support this Golf Course development proposal. He consulted with designers and managers of golf courses across the world to determine the key criteria required for golf course design and how this translated into attracting golfers into an successful golf resort.
Oscar’s investigations highlighted that one of the main indicators to attract golfers nationally and internationally is the golf course enjoyment index. The enjoyment index is a measure of a golfer’s enjoyment and satisfaction with the golf course design, the difficulty of the holes on the course and the facilities provided. 

Note:
1. Construction costs are estimates only, as this development is rare in rural communities and reliable estimates are not available. Further work will be required if the board accepts the initial proposal.
2. The case study is prepared based on the assumption that there is no solution for the original shareholders exclusive clubhouse golf course.
3. When you make change to options 1, 2 and 3, the changes MUST be better than the standard clubhouse (management plan). For example, Option 1, when you reduce the size of the exclusive clubhouse, it should be between 2 and 4 hectares.

Part 1: Action Plan 
In the action plan you have to describe the process you will undertake to transform the business problem into a set of mathematical equations using the four steps approach.
1. Identify the decision variables – the unknown values that the model seeks to determine.
2. Identify the objective function – the quantity to be minimized or maximized.
3. Identify all appropriate constraints – limitations, requirements, or other restrictions that are imposed on any solution, either from practical or technological considerations or by management policy.
4. Write the objective function and constraints as mathematical expressions.

Part 2: Spreadsheet Model Implementation (30%)
Here, it includes the Excel and Solver implementation of your five (5) models.
1. Standard clubhouse model (management plan)
2. Exclusive clubhouse model (shareholder’s request)
3. Three (3) options of the exclusive clubhouse model. Clearly state what have changed in each of the option from the original exclusive clubhouse model.

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