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NEW QUESTION 38
Scenario
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 to be decided which of the photographers to use.
Which 2 statements explain why the Purchasing Manager should be appointed as a Senior Supplier for this project?

  • A. He can influence the external supplier’s Business Case.
  • B. He is responsible for the performance of supplier contracts.
  • C. He is responsible for the organization’s procurement activates.
  • D. He was an engineer and worked in that area before taking up his current position.
  • E. He is not appropriate for the role of Executive or Senior User.

Answer: B,C

 

NEW QUESTION 39
Additional Information

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 business assurance for this project?

  • A. Add ‘Director of Finance Division’ because she is responsible for checking that any supplier and contractor payments are authorized.
  • B. Add Outcome Consultants’ because they carried out the feasibility study.
  • C. Replace with ‘Project Manager’ because this is a simple project that does not require additional business assurance.
  • D. Remove because he will be impacted by the project and therefore represents a user.
  • E. Retain because he is familiar with the Ministry of Food Hygiene business strategy, the business level risk assessment and the Business Case standards.

Answer: A,E

 

NEW QUESTION 40
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 (GBP)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. Staff morale will improve as a result of the promotional calendar.
  • B. The prepared calendar pack is to be delivered to the printers by the first week in December.
  • C. If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced.
  • D. If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.
  • E. Operational costs will increase as a result of the recruitment campaign.

Answer: C,D

Explanation:
— —

 

NEW QUESTION 41
The project is approaching the end of stage 3, and stage 4 is being planned as part of the ‘managing a stage boundary’ process.
Which action should the project manager carry out as part of the ‘update the project plan’ activity?

  • A. Include the actual time and cost of the work to prepare the ‘marketing materials’ in the project plan.
  • B. Update the project’s business case to show any new key risks that have been identified.
  • C. Ensure that the team manager for the work package ‘delivered pilot courses’ is included as a resource.
  • D. Include the tolerances for the work package ‘delivered pilot courses’ in the project plan.

Answer: A

Explanation:
Explanation/Reference: https://www.prince2primer.com/prince2-2017-update-project-plan-business-case/

 

NEW QUESTION 42
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