MIS 578 Chapter 2

Question 1

Strategic analysis

Answer 1

Internal and external analysis using SWOT.

Question 2

Guiding principles

Answer 2

Vision (preferred future state) and mission (what we stand for and how we will operate) statements, perhaps purpose and values also.

Question 3

Strategic Objectives

Answer 3

Annual goals to help achieve vision and mission.

Question 4

Flow-down objectives

Answer 4

In larger organizations an expansion on strategic objectives.

Question 5

Portfolio

Answer 5

Portfolio is“projects, programs, sub portfolios, and operations managed as a group to achieve strategic business objectives.”

Question 6

Program

Answer 6

Program is“a group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually.”

Question 7

Subproject

Answer 7

Subproject is “a smaller portion of the overall project created when a project is subdivided into more
manageable components or pieces

Question 8

Methods for project selection

Answer 8

Based upon organizational priorities, including financial and other considerations.

Question 9

Using a financial model to select projects.

Answer 9

• Comparing expected project costs with benefits often by using net present value analysis.
• NPV, BCR, IRR, PP.

Question 10

Using a scoring model to select projects

Answer 10

When multiple criteria such as timing, risk, and resource needs are important in selection decisions

Question 11

Strategic analysis

Answer 11

analyze strengths and weaknesses within the organization and opportunities and
threats external to the organization

Question 12

Guiding principles

Answer 12

create statements of organizational vision, mission, purpose and/or values to guide decision-making.

Question 13

Strategic Objectives

Answer 13

often annual planning to establish short and long term results that will support
guiding principles

Question 14

Flow-down objectives

Answer 14

optional for large or complex organizations to ensure that appropriate goals are established

Question 15

Portfolio Alignment

Answer 15

selecting a set of projects to support organizations’ goals

Question 16

Why are multiple criteria project selection models preferred?

Answer 16

Financial criteria is one factor in selecting an appropriate project portfolio, but additional criteria
concerning how well each potential project supports organizational objectives, timing, resource needs, and
risk are also often critical.

Question 17

What happens to a project proposal that does not meet a “must” objective in a project selection system?

Answer 17

It is evaluated just as all other potential projects to see how well it fits the organization’s selection criteria

Question 18

What does the strategic analysis acronym SWOT stand for?

Answer 18

Strengths, weaknesses, opportunities, and threats.

Question 19

Which parts of SWOT are internal? Which parts are external?

Answer 19

Internal – strengths and weaknesses of the organization.

External – opportunities and threats from outside the organization

Question 20

What are some examples of guiding principles an organization’s leaders might develop after they have
completed strategic analysis?

Answer 20

Vision – a description of the desired future state of the organization.

Mission – the organization’s reason for existing, beliefs, core values of how people will be treated and
decisions will be made, the business the organization is in, and the primary customers of the organization.

Sometimes mission is broken into separate statements such as purpose and values

Question 21

In what tense should a vision be written?

Answer 21

Future

Question 22

Name at least four things a mission statement should include.

Answer 22

The mission statement should include the organization’s purpose, beliefs, core values, culture, primary
business, and primary customers.

Question 23

Why should a mission statement be neither too specific nor not specific enough?

Answer 23

The mission statement should be specific enough to set direction, but not so specific that the organization
precludes imagination.

Question 24

In addition to short- and long-term results, what should strategic objectives include?

Answer 24

Strategic objectives should include measures to determine if they have been achieved.

Question 25

What does the acronym SMART mean with regard to goals?

Answer 25

Specific, measurable, achievable, results-based, and time-specific

Question 26

What is the primary method of implementing organizational objectives?

Answer 26

Projects are the primary means of implementing organizational objectives.

Question 27

What is the first step in avoiding common reasons for project failure?

Answer 27

The first step in avoiding common reasons for project failure is to carefully align potential projects with the
goals of the parent organization.

Question 28

Who should be involved in the second part of aligning projects with the firm’s goals, which is identifying
potential projects?

Answer 28

All parts of the organization should help identify potential projects.

Question 29

How many potential projects should be identified in comparison to how many the organization plans to
actually implement? Why?

Answer 29

One good rule of thumb is to identify about twice as many potential projects as the organization has the
capacity to implement since upon close examination, some projects may not be a good fit and others may
be impractical.

Question 30

What is the most common financial analysis technique used in project selection? Why?

Answer 30

Net present value (NPV) is the most widely accepted model as all the other models, though offering
additional perspective, have more weaknesses.

Question 31

Which type of financial model would you normally use in project selection? Why?

Answer 31

Net present value (NPV) is straightforward both in calculation and in interpretation.