Case Study
1. According to Harold Kerzner, Project Management: A systems Approach to Planning, Scheduling, and Controlling (Twelfth Edition) what are the 3 main classifications of projects? Use quotes and paraphrasing as needed along with your own words.
2. Read the Nova Western case study. In your opinion, what category would the projects Nova Western is considering fall into?
3. Consider the results of the selection methods (from the case study) and the information about Nova Western, recommend the project Nova Western should select. Provide strong reasons to support your choice.
Alternative Individual Assignment 2: Project Selection
Available Marks: 30
Weighting: 10% of Final Grade
Due Friday December 7th 2018 at 11:59PM
This alternative assignment replaces Individual Assignment 2 related to project selection. It will be graded out of 30 marks and will be weighted as 10% of final grade. This is equivalent to the missed assignment. Assignment submitted after December 10th will not be accepted.
Submit completed assignment to Individual Assignment 2 Drop Box. Students approved to submit the alternative assignment have been assigned an updated deadline date.
Assignment Details
Questions for the Case Study: Project Selection at Nova Western, Inc.
1. According to Harold Kerzner, Project Management: A systems Approach to Planning, Scheduling, and Controlling (Twelfth Edition) what are the 3 main classifications of projects? Use quotes and paraphrasing as needed along with your own words.
2. Read the Nova Western case study. In your opinion, what category would the projects Nova Western is considering fall into?
3. Consider the results of the selection methods (from the case study) and the information about Nova Western, recommend the project Nova Western should select. Provide strong reasons to support your choice.
Project Nova Western Case Study
Project Selection at Nova Western, Inc. Phyllis Henry, vice president of new product development, sat at her desk, trying to make sense of the latest new project proposals she had just received from her staff. Nova Western, Inc., a large developer of business software and application programs, had been experiencing a downturn in operating revenues over the past three quarters. The senior management team was feeling pressure from the board of directors to take steps to correct this downward drift in revenues and profitability. Their consensus opinion was that Nova Western needed some new product ideas, and fast.
The report Phyllis was reading contained the results of a project screening conducted by two independent groups within the new product development department. After several weeks of analysis, it appeared that two top contenders had emerged as the optimal new project opportunities. One project, code-named Janus, was championed by the head of software development. The other project idea, Gemini, had the support of the business applications organization. Phyllis’s original charge to her staff was to prepare an evaluation of both projects in order to decide which one Nova Western should support. Because of budget restrictions, there was no way that both projects could be funded.
The first evaluation team used a scoring model, based on the key strategic categories at Nova Western, to evaluate the two projects. The categories they employed were:
(1) strategic fit (2) probability of technical success
(3) financial risk (4) potential profit
(5) strategic leverage (ability of the project to employ and enhance company resources and technical capabilities).
Using these categories, the team evaluated the two projects as shown below. Scores were based on: 1 = low, 2 = medium, and 3 = high.
| Project Janus | Project Gemini | |||||
| Category | Importance | Score | Weighted Score | Importance | Score | Weighted Score |
| 1. Strategic Fit | 3 | 2 | 6 | 3 | 3 | 9 |
| 2. Probability of technical success | 2 | 2 | 4 | 2 | 2 | 4 |
| 3. Financial risk | 2 | 1 | 2 | 2 | 2 | 4 |
| 4. Potential profit | 3 | 3 | 9 | 3 | 3 | 9 |
| 5. Strategic leverage | 1 | 1 | 1 | 1 | 2 | 2 |
| JANUS TOTAL SCORE: 22 | GEMINI TOTAL SCORE: 28 |
The above results seem to suggest that Project Gemini is the choice for the next new project. However, Phyllis was also presented with an NPV analysis of the two projects by her second team of evaluators. Assuming a required rate of return of 15% and anticipated inflation rate of 3% over the lives of the two projects, their findings are shown as follows:
NPV Analysis
| PROJECT | Janus | Gemini |
| Initial investment | $250 000 | $400 000 |
| Life of the project | 5 years | 3 years |
| Anticipated stream of future cash flows: | ||
| Year 1 | $50 000 | $75 000 |
| Year 2 | $100 000 | $250 000 |
| Year 3 | $100 000 | $300 000 |
| Year 4 | $200 000 | · |
| Year 5 | $75 000 | – |
| Calculated NPV | $60 995 | $25 695 |
The analyses of the two projects by different means had yielded different findings. The scoring model indicated that Project Gemini was the best alternative, and the financial screening favored the higher project NPV of Project Janus. Phyllis was due to present her recommendations to the full top management team this afternoon, seemingly armed with more questions than answers.
Source: http://wps.pearsoncustom.com/wps/media/objects/7225/7398617/MGT310_Ch03.pdf
Notes
· No more than 25% of the content may be quotes or references – meaning 75% of the content must be original. [updated and distributed October 2/18]
· Submit your assignment in Word or PDF format using the Dropbox: Individual Assignment 2
· Include all the assignment requirements
· Include a reference page, and cite within your paper as needed using APA standards.
· Zero tolerance for plagiarism cite your work, ensure it is original. DO NOT copy from websites, classmates or previous semester students. Turnitin will clearly identify instances of plagiarism – the tool is turned on for students to see results.
Late Assignments
· Reduced mark of 10% per day – assignments submitted after the 11:59PM deadline will be reduced by 10%
· If more than 3 days late, the grade is zero.
Checklist
· Title Page
· Read all questions carefully
· Read the entire case study
· Spell Check Complete
· Grammar and Sentence Structure Check
· Citing Complete: https://apa.conestogac.on.ca/
· Reference Page
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