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Chapter 2 Class Activity

The document outlines the Strategic Management Process, emphasizing the importance for project managers to understand strategy and detailing its four key activities. It discusses the necessity of project priority systems and portfolio management, including the design and benefits of a project portfolio system. Additionally, it covers financial and non-financial selection criteria for project prioritization, including models like Payback and NPV, and highlights the limitations of purely financial models.

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4 views3 pages

Chapter 2 Class Activity

The document outlines the Strategic Management Process, emphasizing the importance for project managers to understand strategy and detailing its four key activities. It discusses the necessity of project priority systems and portfolio management, including the design and benefits of a project portfolio system. Additionally, it covers financial and non-financial selection criteria for project prioritization, including models like Payback and NPV, and highlights the limitations of purely financial models.

Uploaded by

prayagagheewala
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Strategic Management Process

1) Describe why project managers need to understand strategy? (p.28)

Answer:

2) What are the four activities of Strategic Management Process? (p.29)

Answer:

3) Describe organizational mission (p.31)

Answer:

4) Describe Strategic Management Process (p.31, Figure 2.1)

Answer:

Need for Project Priority Systems

1) Describe the three most obvious problems that can arise due to lack of a strong priority system
linked to strategy (P.34 to 37)

Answer:

Portfolio Management System

1) Describe portfolio management (p.37)

Answer:

2) Identify what should be included in the design of a project portfolio system (p.37)

Answer:

3) What are the benefits of Project Portfolio Management (P.37, Exhibit 2.2)

Answer:

Classification: General
4) As part of classification of the project (i.e., part of the design of a project portfolio), what are the
three basic kinds of projects?

Answer:

Financial Selection Criteria

1) Describe Payback financial model as a selection criterion (p.38)

Answer:

2) What is the major limitation of Payback financial model? (p.39)

Answer:

3) Compare the Payback for Project A and Project B as described in page 39 (use the Financial
Models Payback & NPV spreadsheet for your calculation and include in your submission in D2L
Dropbox)

Answer:

4) Describe the net present value (NPV) model (p.39)

Answer:

5) Compare the NPV for Project A and Project B as described in page 39 (use the Financial Models
Payback & NPV spreadsheet for your calculation and include in your submission in D2L Dropbox)

Answer:

6) Are pure financial models adequate for prioritising projects? Why? (p.40)

Answer:

Non-financial Selection Criteria

1) Provide examples of strategic reasons for accepting projects that do not have high profit
margins (p.40)

Answer:

Classification: General
2) Describe checklist model (p.41)

Answer:

3) Provide sample selection Questions used in practice (p.41, Exhibit 2.4)

Answer:

4) Describe multi-weighted scoring model (p.41)

Answer:

Classification: General

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