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NEW QUESTION 33
What additional risk will this place on the project?

• A. There is only E70k left in the project change budget.
• B. None because risks associated with the centralization and rationalization of the Facilities Division will be
  managed by another project.
• C. The reduced value of the contracted services required by the Outsourcing project may result in an
  insufficient number of proposals being received.
• D. These changes will delay stage 3 by three weeks.

Answer: B

NEW QUESTION 34
A construction company that is one of ABC Company's key clients has agreed to provide a member of the staff
to review and comment on the 'e-learning course'.
Which stakeholder interest should the member of staff represent, and why?

• A. User, because this stakeholder may train its staff using the 'e-learning course'.
• B. Supplier, because this stakeholder provides the expertise required by the project.
• C. Supplier, because this stakeholder is an external supplier.
• D. User, because this stakeholder ensures that the project provides value for money.

Answer: D

NEW QUESTION 35
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.
Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.
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. Do nothing.
• C. Outsource the creation of the calendar to a professional marketing company.
• D. Create the photographs for the calendar internally.
• E. Use a professional photographer to create the photographs for the calendar.

Answer: A,B

NEW QUESTION 36
......

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