Ch2 Chapter Questions - Ch 2 Reading From Experience...

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Ch. 2 Reading: From Experience: Linking Projects to Strategy Question 1: Two thirds of the revenue at HP is derived from products introduced within the past two years. Projects are an important component of business strategy to sustain profitable products in a dynamic marketplace. It also keeps new and innovative products out in the market place, which can be very profitable for companies. Question 2: The team should establish criteria that support business goals rather than personal agendas. The financial selection criteria are intended to ensure that the projects generate a sufficient return on investment within a defined time frame. They are also intended to recognize that financial success is reflected in the portfolio of projects rather than in the financial contributions of individual projects. As suggested in Figure 3, financial criteria are an important but small part of the business value created by projects. Senior managers recognize the value of qualitative contributions to business value, so it is not always necessary to quantify a project’s contributions to business value. The way I interpret this is that though a project may not very profitable it can still be a quality project. Perhaps it helps improve a company’s image or simply just give the company a presence in a certain market. This isn’t to say that finance aspects of a project aren’t important. After all, what good is having a good image if you aren’t around to represent it. Question 3: The objective is to select the right mix of projects required to support business success. Prioritizing projects and selecting the vital few from the necessary many help to get more
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This homework help was uploaded on 04/07/2008 for the course EM 464 taught by Professor Ladd during the Spring '08 term at Washington State University .

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Ch2 Chapter Questions - Ch 2 Reading From Experience...

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