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NEW QUESTION 1

Product Summary
A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.
Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.
The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.
Product Breakdown Structure (contains errors)
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Extract from Stage Plan for stage 3.
(All entries are true statements but may not be shown under the correct heading or in the correct document).
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Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage. Which 2 statements apply to the Plan prerequisites section?

  • A. Delete entry 2 because these are project benefits not prerequisites of the stage.
  • B. Delete entry 3 because the production cost forecast is a deliverable of stage 2, not a prerequisite for stage 3.
  • C. Delete entry 4 because the customer list is a deliverable of stage 2, not a prerequisite for stage 3.
  • D. Add 'Engineering team must be made available for photos'.
  • E. Add 'Compliance with the Data Protection Act'.

Answer: AC

NEW QUESTION 2

Which project controls should be established for the Outsourcing project?

  • A. Highlight Reports to the Project Manager; Exception Reports to the Project Board when project tolerances are forecast to be exceeded.
  • B. Highlight Reports to the Project Board; Exception Reports to corporate management when stage tolerances are forecast to be exceeded.
  • C. Highlight Reports to the Project Board; Exception Reports to the Project Board when stage or project tolerances are forecast to be exceeded.

Answer: C

NEW QUESTION 3
HOTSPOT
Additional Information
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
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  • A. Mastered
  • B. Not Mastered

Answer: A

Explanation:
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NEW QUESTION 4

Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
✑ 20% discount for all repeat customers - not cost-effective and very short term
✑ A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year
✑ A series of television and press advertisements· was too expensive
✑ A direct mail shot to all customers - benefit would be short term
✑ Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements correctly define a Business Case risk which should be recorded under the Major risks heading?

  • A. Operational costs will increase as a result of the recruitment campaign.
  • B. The prepared calendar pack is to be delivered to the printers by the first week in December.
  • C. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.
  • D. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced.
  • E. Staff morale will improve as a result of the promotional calendar.

Answer: CD

NEW QUESTION 5

Additional Information Product Description
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Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database. Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
Which statement applies to the Roles and responsibilities section?

  • A. Delete entry 9 because this should only be recorded in the Product Description.
  • B. Delete entry 10 because this is the responsibility of the quality review chair.
  • C. Delete entry 11 because only the Project Manager can update the Quality Register.
  • D. Amend entry 12 because this is the responsibility of supplier assurance.

Answer: D

NEW QUESTION 6

Additional Information
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Further information on some resources who could be involved in the project: Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.
Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.
Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.
Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.
Which 2 alternative actions apply to the proposed Senior Supplier for this project?

  • A. Retain because she is responsible for the design of the future Information Technology organization and working practices.
  • B. Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.
  • C. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
  • D. Remove because she only represents the Information Technology Division.
  • E. Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.

Answer: AB

NEW QUESTION 7

Additional Information Product Description
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Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database. Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
The service level agreement looks like any other MFH document.

  • A. Obtain agreement from the Director of Facilities Division to redesign the service level agreement within the remaining +2 days tolerance.
  • B. Raise an issue (off-specification).
  • C. Accept this error as a concession.
  • D. No action required.

Answer: D

NEW QUESTION 8

Who is responsible for the initial creation of the Configuration Item records?

  • A. Project Manager
  • B. Team Manager
  • C. Project Assurance
  • D. Project Support

Answer: D

NEW QUESTION 9
HOTSPOT
Scenario:
Techniques, processes and procedures
1. Any threat that may result in a loss of MFH data must be escalated immediately.
Joint agreements
2. Work is to start at the beginning of week 2 (Stage 4).
3. The project will take two years to complete, at an estimated cost of £2.5m. Tolerances
4. None.
Constraints
5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.
6. Installation work must take place during MFH normal working hours. 7. +£10,000 / -£25,000.
Reporting arrangements
8. Highlight Report every Monday by 10.00 am.
9. The report must contain a summary of all products worked on during the previous week.
10. Project Manager must be notified of any issues immediately by telephone.
Problem handling and escalation
11. Impact analysis of all issues must be completed within 24 hours.
Extracts or references
12. The Stage Plan for stage 4 is available from Project Support.
Approval method
13. Project Assurance will review the completed Work Package and confirm completion
At the end of stage 3, the service provider will be selected and the contract awarded. During stage 4, the Account Manager for the selected service provider will work with the Project Manager to complete the transition of the services to the selected service provider.
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  • A. Mastered
  • B. Not Mastered

Answer: A

Explanation:
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NEW QUESTION 10

Who is responsible for appointing the Project Manager?

  • A. Corporate or Programme Management
  • B. The Project Board
  • C. The Executive
  • D. Project Assurance

Answer: C

NEW QUESTION 11

Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Proximity heading?

  • A. Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.
  • B. The risk of MFH having no outsourcing experience will be categorized as Stage 4proximity.
  • C. Imminent risks are those which may occur within two weeks.
  • D. Any risk with a proximity category of imminent will be estimated as having a very high impact.
  • E. The risk of staff leaving the organization will be categorized as beyond the project proximity.

Answer: CD

NEW QUESTION 12

Extract from the Project Product Description (with errors)
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Which 2 statements apply to the Derivation section?

  • A. Move entry 9 to Composition because this is within the scope of the project.
  • B. Delete entry 10 because this is NOT a source product for this project.
  • C. Delete entry 11 as this is already correctly shown under Development Skills required.
  • D. Move entry 12 to Composition, because this is within the scope of this project.
  • E. Add 'Professional photographer'.

Answer: CD

NEW QUESTION 13
HOTSPOT
Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
There is a major concern over an apparent lack of control of project documentation.
For each concern listed in Column 1, select from Column 2 the configuration management task that could help address the problem. Each selection from Column 2 can be used once, more than once or not at all.
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  • A. Mastered
  • B. Not Mastered

Answer: A

Explanation:
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NEW QUESTION 14

Which principle is supported by the activity Evaluate the Project?

  • A. Continued Business Justification
  • B. Defined roles and responsibilities
  • C. Learn from experience
  • D. Manage by stages

Answer: C

NEW QUESTION 15

Additional Information Product Description
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Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database. Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
Although it is not specified in the current corporate branding standards, the MFH corporate logo should be shown on the front page of the service level agreement.

  • A. Obtain agreement from the Director of Facilities Division to amend this within the remaining +2 days tolerance.
  • B. Raise an issue (off-specification).
  • C. Raise an issue (request for change).
  • D. Accept this error as a concession.

Answer: C

NEW QUESTION 16

Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Timing of risk management activities heading?

  • A. During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.
  • B. The Project Board should hold monthly meetings to review project progress.
  • C. When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.
  • D. Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.
  • E. When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

Answer: BE

NEW QUESTION 17

Which statement is an appropriate entry for the Initiation Stage Plan?

  • A. The Daily Log has been updated with the new risks which were identified while preparing the Initiation Stage Plan.
  • B. The plan is based on the external outsourcing consultants being available at the start of the initiation stage.
  • C. The initial project cost estimate of £2.5m, will have a tolerance of +£125k J•£75k.
  • D. The project management team will consist of representatives from the IT and Facilities Divisions.

Answer: B

NEW QUESTION 18

Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
Do nothing.
Re-engineer selected business functions. Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology
Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
One service provider should be contracted to provide the services currently provided by the
Information Technology Division and the Facilities Division.
A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and
operating models, plus an outline Business Case for the required project. The external consultants
also made the following recommendations for the management of the project:
Use PRINCE2.
Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service
provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract. Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.
Initial estimates indicated that the project would cost £2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10
years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
Which 2 statements should be recorded under the Expected dis-benefits heading?

  • A. An investment of £2.5m is required.
  • B. Staff morale will be negatively affected.
  • C. The project will take two years to deliver.
  • D. Staff may lose the opportunity to work in Information Technology.
  • E. MFH will lose direct control over the outsourced business functions.

Answer: CE

NEW QUESTION 19

Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
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Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
Without a Risk Register how can project risks, the progress of risk actions taken to date and the current status of residual risks be measured?

  • A. The Daily Log was correctly used to monitor risks during the Starting up a Project proces
  • B. It will be used to capture all risks, actions, decisions, assumptions
  • C. It was not appropriate to use the Daily Log to capture all risks and issues during the Starting up a Project proces
  • D. Separate registers should have been set up for risks, issues and lessons learne
  • E. This will now be done.
  • F. In a simple project, the Project Initiation Documentation (PID) should contain a register for recording risk information and monitoring project risks throughout the delivery stage
  • G. The register will now be added to the PID.

Answer: A

NEW QUESTION 20

It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.
There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.
Which product should show that the photos could be used for other promotional material for the company?

  • A. Benefits Review Plan
  • B. Lessons Log
  • C. Exception Report
  • D. End Project Report

Answer: D

NEW QUESTION 21

Which role is responsible for providing the customer's quality expectations and acceptance criteria for the project?

  • A. Executive
  • B. Corporate or Programme Management
  • C. Senior User
  • D. Project Assurance

Answer: C

NEW QUESTION 22

While deciding on how the work of the project should be approached the following were considered.
Which statement is appropriate for inclusion in the project approach heading in the Project Brief?

  • A. The Project Manager will involve the selected service provider in the creation of the Stage Plan for stage 4.
  • B. New up-to-date software will be obtained to produce the graphical sections of the Project and Stage Plans.
  • C. The detailed designs (future process, systems, operating and organization models) will be based on the existing high-level designs.

Answer: C

NEW QUESTION 23

Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
✑ 20% discount for all repeat customers - not cost-effective and very short term
✑ A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year
✑ A series of television and press advertisements· was too expensive
✑ A direct mail shot to all customers - benefit would be short term
✑ Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Business options heading?

  • A. Produce a promotional calendar as a free Christmas gift to current and prospective customers.
  • B. Use a professional photographer to create the photographs for the calendar.
  • C. Create the photographs for the calendar internally.
  • D. Outsource the creation of the calendar to a professional marketing company.
  • E. Do nothing.

Answer: AE

NEW QUESTION 24

Which of the following should NOT be included in the business case?

  • A. Reasons
  • B. Major Risks
  • C. Business options
  • D. Business approach

Answer: D

NEW QUESTION 25

Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.
Which 2 statements explain why the Sales Manager should be appointed as a Senior User for this project?

  • A. He joined the company last year with huge enthusiasm.
  • B. He would like to move into the Marketing department in the future and sees this as an opportunity to work closely with the Marketing Director.
  • C. The launch of a company calendar will impact the Sales department.
  • D. He reports directly to the Marketing Director.
  • E. He is able to represent current and prospective customer interests.

Answer: CE

NEW QUESTION 26
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